FORM 8-K |
001-36609 | 36-2723087 | |
(Commission File Number) | (IRS Employer Identification No.) |
50 South LaSalle Street, Chicago, Illinois | 60603 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
NORTHERN TRUST CORPORATION | ||||
(Registrant) | ||||
Dated: January 20, 2016 | By: | /s/ S. Biff Bowman | ||
S. Biff Bowman | ||||
Executive Vice President and Chief Financial Officer |
Number | Description | Page Number | |
99 | January 20, 2016 Press Release | 1 |
Investor Contact: | Media Contact: |
Bev Fleming | Doug Holt |
(312) 444-7811 | (312) 557-1571 |
Beverly_Fleming@ntrs.com | Doug_Holt@ntrs.com |
https://www.northerntrust.com |
($ In Billions) | December 31, 2015 | September 30, 2015 | December 31, 2014 | % Change Q4-15/Q3-15 | % Change Q4-15/Q4-14 | ||||||||||||
Assets Under Custody | |||||||||||||||||
Corporate & Institutional Services | $ | 5,565.8 | $ | 5,460.6 | $ | 5,453.1 | 2 | % | 2 | % | |||||||
Wealth Management | 506.3 | 495.8 | 515.7 | 2 | (2 | ) | |||||||||||
Total Assets Under Custody | $ | 6,072.1 | $ | 5,956.4 | $ | 5,968.8 | 2 | % | 2 | % | |||||||
Assets Under Management | |||||||||||||||||
Corporate & Institutional Services | $ | 648.0 | $ | 661.5 | $ | 709.6 | (2 | )% | (9 | )% | |||||||
Wealth Management | 227.3 | 225.3 | 224.5 | 1 | 1 | ||||||||||||
Total Assets Under Management | $ | 875.3 | $ | 886.8 | $ | 934.1 | (1 | )% | (6 | )% |
($ In Millions) | Q4 2015 | Q4 2014 | Change Q4 2015 from Q4 2014 | |||||||||||
C&IS Trust, Investment and Other Servicing Fees | ||||||||||||||
Custody and Fund Administration | $ | 286.2 | $ | 281.6 | $ | 4.6 | 2 | % | ||||||
Investment Management | 85.6 | 77.6 | 8.0 | 10 | ||||||||||
Securities Lending | 22.3 | 21.8 | 0.5 | 3 | ||||||||||
Other | 33.8 | 28.5 | 5.3 | 19 | ||||||||||
Total | $ | 427.9 | $ | 409.5 | $ | 18.4 | 5 | % |
($ In Millions) | Q4 2015 | Q4 2014 | Change Q4 2015 from Q4 2014 | |||||||||||
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||||||
Central | $ | 128.5 | $ | 129.3 | $ | (0.8 | ) | (1 | )% | |||||
East | 82.3 | 82.4 | (0.1 | ) | — | |||||||||
West | 65.6 | 67.6 | (2.0 | ) | (3 | ) | ||||||||
Global Family Office | 42.8 | 39.4 | 3.4 | 9 | ||||||||||
Total | $ | 319.2 | $ | 318.7 | $ | 0.5 | — | % |
($ In Millions) | December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||
Nonperforming Assets | |||||||||||
Nonperforming Loans and Leases | $ | 180.1 | $ | 198.6 | $ | 215.7 | |||||
Other Real Estate Owned | 8.2 | 8.9 | 16.6 | ||||||||
Total Nonperforming Assets | 188.3 | 207.5 | 232.3 | ||||||||
Allowance for Credit Losses | |||||||||||
Allowance for Credit Losses Assigned to: | |||||||||||
Loans and Leases | 193.8 | 242.2 | 267.0 | ||||||||
Undrawn Loan Commitments and Standby Letters of credit | 39.5 | 12.5 | 28.9 | ||||||||
Total Allowance for Credit Losses | $ | 233.3 | $ | 254.7 | $ | 295.9 | |||||
Ratios | |||||||||||
Nonperforming Loans and Leases to Total Loans and Leases | 0.54 | % | 0.59 | % | 0.68 | % | |||||
Allowance for Credit Losses Assigned to Loans and Leases to Total Loans and Leases | 0.58 | % | 0.73 | % | 0.84 | % | |||||
Allowance for Credit Losses Assigned to Loans and Leases to Nonperforming Loans and Leases | 1.1x | 1.2x | 1.2 | x |
($ In Millions) | Q4 2015 | Q3 2015 | Change Q4 2015 from Q3 2015 | |||||||||||
C&IS Trust, Investment and Other Servicing Fees | ||||||||||||||
Custody and Fund Administration | $ | 286.2 | $ | 293.9 | $ | (7.7 | ) | (3 | )% | |||||
Investment Management | 85.6 | 82.6 | 3.0 | 4 | ||||||||||
Securities Lending | 22.3 | 19.8 | 2.5 | 13 | ||||||||||
Other | 33.8 | 33.4 | 0.4 | 1 | ||||||||||
Total | $ | 427.9 | $ | 429.7 | $ | (1.8 | ) | — | % |
($ In Millions) | Q4 2015 | Q3 2015 | Change Q4 2015 from Q3 2015 | |||||||||||
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||||||
Central | $ | 128.5 | $ | 126.8 | $ | 1.7 | 1 | % | ||||||
East | 82.3 | 82.1 | 0.2 | — | ||||||||||
West | 65.6 | 66.8 | (1.2 | ) | (2 | ) | ||||||||
Global Family Office | 42.8 | 43.7 | (0.9 | ) | (2 | ) | ||||||||
Total | $ | 319.2 | $ | 319.4 | $ | (0.2 | ) | — | % |
Capital Ratios - Northern Trust Corporation | December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||||||
Advanced Approach | Standardized Approach (a) | Advanced Approach | Standardized Approach (a) | Advanced Approach | Standardized Approach (a) | ||||||||||||
Common Equity Tier 1 | 11.9 | % | 10.8 | % | 12.4 | % | 10.4 | % | 12.4 | % | 12.5 | % | |||||
Tier 1 | 12.5 | % | 11.4 | % | 13.0 | % | 11.0 | % | 13.2 | % | 13.3 | % | |||||
Total | 14.2 | % | 13.2 | % | 14.8 | % | 12.8 | % | 15.0 | % | 15.5 | % | |||||
Tier 1 Leverage | 7.5 | % | 7.5 | % | 7.8 | % | 7.8 | % | N/A | 7.8 | % | ||||||
Supplementary Leverage (b) | 6.2 | % | N/A | 6.4 | % | N/A | N/A | N/A |
Capital Ratios - The Northern Trust Company | December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||||||
Advanced Approach | Standardized Approach (a) | Advanced Approach | Standardized Approach (a) | Advanced Approach | Standardized Approach (a) | ||||||||||||
Common Equity Tier 1 | 11.6 | % | 10.4 | % | 12.0 | % | 9.9 | % | 12.0 | % | 11.8 | % | |||||
Tier 1 | 11.6 | % | 10.4 | % | 12.0 | % | 9.9 | % | 12.0 | % | 11.8 | % | |||||
Total | 13.1 | % | 12.0 | % | 13.6 | % | 11.6 | % | 13.8 | % | 14.0 | % | |||||
Tier 1 Leverage | 6.7 | % | 6.7 | % | 7.0 | % | 7.0 | % | N/A | 6.9 | % | ||||||
Supplementary Leverage (b) | 5.6 | % | N/A | 5.7 | % | N/A | N/A | N/A |
(a) | In 2014, Standardized Approach risk-weighted assets were determined by Basel I requirements. Effective with the first quarter of 2015, risk-weighted assets are calculated in accordance with the Basel III Standardized Approach final rules. |
(b) | Effective January 1, 2018, advanced approaches institutions, such as the Corporation, will be subject to a minimum supplementary leverage ratio of 3 percent. |
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||
($ In Millions) | Reported | FTE Adj. | FTE | Reported | FTE Adj. | FTE | Reported | FTE Adj. | FTE | ||||||||||||||||||||||||||
Net Interest Income | |||||||||||||||||||||||||||||||||||
Interest Income | $ | 330.7 | $ | 6.6 | $ | 337.3 | $ | 305.7 | $ | 6.1 | $ | 311.8 | $ | 303.9 | $ | 7.0 | $ | 310.9 | |||||||||||||||||
Interest Expense | 41.3 | — | 41.3 | 36.8 | — | 36.8 | 40.0 | — | 40.0 | ||||||||||||||||||||||||||
Net Interest Income | $ | 289.4 | $ | 6.6 | $ | 296.0 | $ | 268.9 | $ | 6.1 | $ | 275.0 | $ | 263.9 | $ | 7.0 | $ | 270.9 | |||||||||||||||||
Net Interest Margin | 1.09 | % | 1.11 | % | 1.06 | % | 1.08 | % | 1.05 | % | 1.08 | % |
Full Year Ended | |||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
($ In Millions) | Reported | FTE Adj. | FTE | Reported | FTE Adj. | FTE | |||||||||||||||||
Net Interest Income | |||||||||||||||||||||||
Interest Income | $ | 1,224.0 | $ | 25.3 | $ | 1,249.3 | $ | 1,186.9 | $ | 29.4 | $ | 1,216.3 | |||||||||||
Interest Expense | 153.9 | — | 153.9 | 181.4 | — | 181.4 | |||||||||||||||||
Net Interest Income | $ | 1,070.1 | $ | 25.3 | $ | 1,095.4 | $ | 1,005.5 | $ | 29.4 | $ | 1,034.9 | |||||||||||
Net Interest Margin | 1.05 | % | 1.07 | % | 1.05 | % | 1.08 | % |
NORTHERN TRUST CORPORATION | Page 1 | |
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | ||||||||||
($ In Millions Except Per Share Data) | FOURTH QUARTER | |||||||||
2015 | 2014 | % Change (*) | ||||||||
Noninterest Income | ||||||||||
Trust, Investment and Other Servicing Fees | $ | 747.1 | $ | 728.2 | 3 | % | ||||
Foreign Exchange Trading Income | 52.5 | 60.7 | (13 | ) | ||||||
Treasury Management Fees | 16.2 | 16.2 | — | |||||||
Security Commissions and Trading Income | 18.5 | 20.9 | (11 | ) | ||||||
Other Operating Income | 33.0 | 41.2 | (20 | ) | ||||||
Investment Security Losses, net | — | (1.0 | ) | (100 | ) | |||||
Total Noninterest Income | 867.3 | 866.2 | — | |||||||
Net Interest Income | ||||||||||
Interest Income | 330.7 | 303.9 | 9 | |||||||
Interest Expense | 41.3 | 40.0 | 3 | |||||||
Net Interest Income | 289.4 | 263.9 | 10 | |||||||
Total Revenue | 1,156.7 | 1,130.1 | 2 | |||||||
Provision for Credit Losses | (18.5 | ) | 3.0 | N/M | ||||||
Noninterest Expense | ||||||||||
Compensation | 365.5 | 355.7 | 3 | |||||||
Employee Benefits | 69.4 | 62.7 | 11 | |||||||
Outside Services | 155.1 | 143.2 | 8 | |||||||
Equipment and Software | 116.5 | 103.5 | 13 | |||||||
Occupancy | 43.8 | 45.1 | (3 | ) | ||||||
Other Operating Expense | 74.5 | 71.1 | 5 | |||||||
Total Noninterest Expense | 824.8 | 781.3 | 6 | |||||||
Income before Income Taxes | 350.4 | 345.8 | 1 | |||||||
Provision for Income Taxes | 111.1 | 101.8 | 9 | |||||||
NET INCOME | $ | 239.3 | $ | 244.0 | (2 | )% | ||||
Dividends on Preferred Stock | $ | 5.9 | $ | 9.5 | (38 | )% | ||||
Earnings Allocated to Participating Securities | 3.8 | 3.8 | — | |||||||
Earnings Allocated to Common and Potential Common Shares | 229.6 | 230.7 | — | |||||||
Per Common Share | ||||||||||
Net Income | ||||||||||
Basic | $ | 1.00 | $ | 0.98 | 2 | % | ||||
Diluted | 0.99 | 0.98 | 1 | |||||||
Average Common Equity | $ | 8,315.0 | $ | 8,110.7 | 3 | % | ||||
Return on Average Common Equity | 11.14 | % | 11.47 | % | (3 | ) | ||||
Return on Average Assets | 0.84 | % | 0.90 | % | (7 | ) | ||||
Cash Dividends Declared per Common Share | $ | 0.36 | $ | 0.33 | 9 | % | ||||
Average Common Shares Outstanding (000s) | ||||||||||
Basic | 230,391 | 234,429 | ||||||||
Diluted | 232,236 | 236,369 | ||||||||
Common Shares Outstanding (EOP) (000s) | 229,294 | 233,391 |
NORTHERN TRUST CORPORATION | Page 2 | |
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | FOURTH QUARTER | THIRD QUARTER | ||||||||
($ In Millions Except Per Share Data) | ||||||||||
2015 | 2015 | % Change (*) | ||||||||
Noninterest Income | ||||||||||
Trust, Investment and Other Servicing Fees | $ | 747.1 | $ | 749.1 | — | % | ||||
Foreign Exchange Trading Income | 52.5 | 62.9 | (16 | ) | ||||||
Treasury Management Fees | 16.2 | 16.1 | 1 | |||||||
Security Commissions and Trading Income | 18.5 | 20.4 | (9 | ) | ||||||
Other Operating Income | 33.0 | 38.1 | (13 | ) | ||||||
Investment Security Gains (Losses), net | — | — | — | |||||||
Total Noninterest Income | 867.3 | 886.6 | (2 | ) | ||||||
Net Interest Income | ||||||||||
Interest Income | 330.7 | 305.7 | 8 | |||||||
Interest Expense | 41.3 | 36.8 | 12 | |||||||
Net Interest Income | 289.4 | 268.9 | 8 | |||||||
Total Revenue | 1,156.7 | 1,155.5 | — | |||||||
Provision for Credit Losses | (18.5 | ) | (10.0 | ) | 85 | |||||
Noninterest Expense | ||||||||||
Compensation | 365.5 | 361.6 | 1 | |||||||
Employee Benefits | 69.4 | 69.8 | (1 | ) | ||||||
Outside Services | 155.1 | 158.3 | (2 | ) | ||||||
Equipment and Software | 116.5 | 113.6 | 3 | |||||||
Occupancy | 43.8 | 43.7 | — | |||||||
Other Operating Expense | 74.5 | 65.3 | 14 | |||||||
Total Noninterest Expense | 824.8 | 812.3 | 2 | |||||||
Income before Income Taxes | 350.4 | 353.2 | (1 | ) | ||||||
Provision for Income Taxes | 111.1 | 118.6 | (6 | ) | ||||||
NET INCOME | $ | 239.3 | $ | 234.6 | 2 | % | ||||
Dividends on Preferred Stock | $ | 5.9 | $ | 5.8 | 2 | % | ||||
Earnings Allocated to Participating Securities | 3.8 | 3.8 | — | |||||||
Earnings Allocated to Common and Potential Common Shares | 229.6 | 225.0 | 2 | |||||||
Per Common Share | ||||||||||
Net Income | ||||||||||
Basic | $ | 1.00 | $ | 0.97 | 3 | % | ||||
Diluted | 0.99 | 0.96 | 3 | |||||||
Average Common Equity | $ | 8,315.0 | $ | 8,322.0 | — | % | ||||
Return on Average Common Equity | 11.14 | % | 10.91 | % | 2 | |||||
Return on Average Assets | 0.84 | % | 0.85 | % | (1 | ) | ||||
Cash Dividends Declared per Common Share | $ | 0.36 | $ | 0.36 | — | % | ||||
Average Common Shares Outstanding (000s) | ||||||||||
Basic | 230,391 | 232,232 | ||||||||
Diluted | 232,236 | 234,163 | ||||||||
Common Shares Outstanding (EOP) (000s) | 229,294 | 231,220 |
NORTHERN TRUST CORPORATION | Page 3 | |
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | ||||||||||
($ In Millions Except Per Share Data) | TWELVE MONTHS | |||||||||
2015 | 2014 | % Change (*) | ||||||||
Noninterest Income | ||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,980.5 | $ | 2,832.8 | 5 | % | ||||
Foreign Exchange Trading Income | 261.8 | 210.1 | 25 | |||||||
Treasury Management Fees | 64.7 | 66.0 | (2 | ) | ||||||
Security Commissions and Trading Income | 78.7 | 67.6 | 16 | |||||||
Other Operating Income | 247.1 | 153.5 | 61 | |||||||
Investment Security Losses, net | (0.3 | ) | (4.3 | ) | (94 | ) | ||||
Total Noninterest Income | 3,632.5 | 3,325.7 | 9 | |||||||
Net Interest Income | ||||||||||
Interest Income | 1,224.0 | 1,186.9 | 3 | |||||||
Interest Expense | 153.9 | 181.4 | (15 | ) | ||||||
Net Interest Income | 1,070.1 | 1,005.5 | 6 | |||||||
Total Revenue | 4,702.6 | 4,331.2 | 9 | |||||||
Provision for Credit Losses | (43.0 | ) | 6.0 | N/M | ||||||
Noninterest Expense | ||||||||||
Compensation | 1,443.3 | 1,417.9 | 2 | |||||||
Employee Benefits | 285.3 | 268.7 | 6 | |||||||
Outside Services | 595.7 | 574.6 | 4 | |||||||
Equipment and Software | 454.8 | 421.4 | 8 | |||||||
Occupancy | 173.5 | 180.3 | (4 | ) | ||||||
Other Operating Expense | 328.0 | 272.1 | 21 | |||||||
Total Noninterest Expense | 3,280.6 | 3,135.0 | 5 | |||||||
Income before Income Taxes | 1,465.0 | 1,190.2 | 23 | |||||||
Provision for Income Taxes | 491.2 | 378.4 | 30 | |||||||
NET INCOME | $ | 973.8 | $ | 811.8 | 20 | % | ||||
Dividends on Preferred Stock | $ | 23.4 | $ | 9.5 | 146 | % | ||||
Earnings Allocated to Participating Securities | 15.4 | 13.3 | 16 | |||||||
Earnings Allocated to Common and Potential Common Shares | 935.0 | 789.0 | 19 | |||||||
Per Common Share | ||||||||||
Net Income | ||||||||||
Basic | $ | 4.03 | $ | 3.34 | 21 | % | ||||
Diluted | 3.99 | 3.32 | 20 | |||||||
Average Common Equity | $ | 8,236.0 | $ | 8,007.9 | 3 | % | ||||
Return on Average Common Equity | 11.54 | % | 10.02 | % | 15 | |||||
Return on Average Assets | 0.88 | % | 0.78 | % | 13 | |||||
Cash Dividends Declared per Common Share | $ | 1.41 | $ | 1.30 | 8 | % | ||||
Average Common Shares Outstanding (000s) | ||||||||||
Basic | 232,280 | 235,830 | ||||||||
Diluted | 234,222 | 237,720 | ||||||||
Common Shares Outstanding (EOP) (000s) | 229,294 | 233,391 |
NORTHERN TRUST CORPORATION | Page 4 | |
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||
($ In Millions) | DECEMBER 31, | |||||||||
2015 | 2014 | % Change (*) | ||||||||
Assets | ||||||||||
Federal Funds Sold and Securities Purchased under Agreements to Resell | $ | 1,614.2 | $ | 1,062.7 | 52 | % | ||||
Interest-Bearing Due from and Deposits with Banks (**) | 17,664.3 | 16,649.1 | 6 | |||||||
Federal Reserve Deposits | 16,398.5 | 17,386.3 | (6 | ) | ||||||
Securities | ||||||||||
U.S. Government | 6,204.3 | 4,507.0 | 38 | |||||||
Obligations of States and Political Subdivisions | 125.6 | 126.4 | (1 | ) | ||||||
Government Sponsored Agency | 16,376.7 | 16,407.6 | — | |||||||
Other (***) | 15,284.4 | 13,110.5 | 17 | |||||||
Total Securities | 37,991.0 | 34,151.5 | 11 | |||||||
Loans and Leases | 33,180.9 | 31,640.2 | 5 | |||||||
Total Earning Assets | 106,848.9 | 100,889.8 | 6 | |||||||
Allowance for Credit Losses Assigned to Loans and Leases | (193.8 | ) | (267.0 | ) | (27 | ) | ||||
Cash and Due from Banks | 2,923.4 | 1,329.7 | 120 | |||||||
Buildings and Equipment | 446.9 | 444.3 | 1 | |||||||
Client Security Settlement Receivables | 2,157.0 | 1,568.8 | 37 | |||||||
Goodwill | 526.4 | 533.2 | (1 | ) | ||||||
Other Assets | 4,040.8 | 5,447.7 | (26 | ) | ||||||
Total Assets | $ | 116,749.6 | $ | 109,946.5 | 6 | % | ||||
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings and Money Market | $ | 15,035.9 | $ | 15,916.4 | (6 | )% | ||||
Savings Certificates and Other Time | 1,455.8 | 1,757.4 | (17 | ) | ||||||
Non-U.S. Offices - Interest-Bearing | 50,221.8 | 47,545.0 | 6 | |||||||
Total Interest-Bearing Deposits | 66,713.5 | 65,218.8 | 2 | |||||||
Short-Term Borrowings | 4,953.2 | 3,503.2 | 41 | |||||||
Senior Notes | 1,497.4 | 1,497.0 | — | |||||||
Long-Term Debt | 1,371.3 | 1,615.1 | (15 | ) | ||||||
Floating Rate Capital Debt | 277.3 | 277.2 | — | |||||||
Total Interest-Related Funds | 74,812.7 | 72,111.3 | 4 | |||||||
Demand and Other Noninterest-Bearing Deposits | 30,155.4 | 25,538.2 | 18 | |||||||
Other Liabilities | 3,075.6 | 3,848.1 | (20 | ) | ||||||
Total Liabilities | 108,043.7 | 101,497.6 | 6 | |||||||
Common Equity | 8,317.4 | 8,060.4 | 3 | |||||||
Preferred Equity | 388.5 | 388.5 | — | |||||||
Total Equity | 8,705.9 | 8,448.9 | 3 | |||||||
Total Liabilities and Stockholders' Equity | $ | 116,749.6 | $ | 109,946.5 | 6 | % |
(*) | Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information. |
(**) | Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC. |
(***) | Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are presented in other assets on the consolidated balance sheets in our periodic filings with the SEC. |
NORTHERN TRUST CORPORATION | Page 5 | |
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||
($ In Millions) | DECEMBER 31 | SEPTEMBER 30 | ||||||||
2015 | 2015 | % Change (*) | ||||||||
Assets | ||||||||||
Federal Funds Sold and Securities Purchased under Agreements to Resell | $ | 1,614.2 | $ | 1,255.6 | 29 | % | ||||
Interest-Bearing Due from and Deposits with Banks (**) | 17,664.3 | 16,311.1 | 8 | |||||||
Federal Reserve Deposits | 16,398.5 | 22,252.0 | (26 | ) | ||||||
Securities | ||||||||||
U.S. Government | 6,204.3 | 5,125.2 | 21 | |||||||
Obligations of States and Political Subdivisions | 125.6 | 101.6 | 24 | |||||||
Government Sponsored Agency | 16,376.7 | 15,716.6 | 4 | |||||||
Other (***) | 15,284.4 | 16,425.0 | (7 | ) | ||||||
Total Securities | 37,991.0 | 37,368.4 | 2 | |||||||
Loans and Leases | 33,180.9 | 33,378.4 | (1 | ) | ||||||
Total Earning Assets | 106,848.9 | 110,565.5 | (3 | ) | ||||||
Allowance for Credit Losses Assigned to Loans and Leases | (193.8 | ) | (242.2 | ) | (20 | ) | ||||
Cash and Due from Banks | 2,923.4 | 2,109.8 | 39 | |||||||
Buildings and Equipment | 446.9 | 427.7 | 4 | |||||||
Client Security Settlement Receivables | 2,157.0 | 1,918.4 | 12 | |||||||
Goodwill | 526.4 | 529.7 | (1 | ) | ||||||
Other Assets | 4,040.8 | 4,686.3 | (14 | ) | ||||||
Total Assets | $ | 116,749.6 | $ | 119,995.2 | (3 | )% | ||||
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings and Money Market | $ | 15,035.9 | $ | 15,153.5 | (1 | )% | ||||
Savings Certificates and Other Time | 1,455.8 | 1,457.1 | — | |||||||
Non-U.S. Offices - Interest-Bearing | 50,221.8 | 53,823.8 | (7 | ) | ||||||
Total Interest-Bearing Deposits | 66,713.5 | 70,434.4 | (5 | ) | ||||||
Short-Term Borrowings | 4,953.2 | 4,908.6 | 1 | |||||||
Senior Notes | 1,497.4 | 1,497.3 | — | |||||||
Long-Term Debt | 1,371.3 | 1,394.3 | (2 | ) | ||||||
Floating Rate Capital Debt | 277.3 | 277.3 | — | |||||||
Total Interest-Related Funds | 74,812.7 | 78,511.9 | (5 | ) | ||||||
Demand and Other Noninterest-Bearing Deposits | 30,155.4 | 29,501.5 | 2 | |||||||
Other Liabilities | 3,075.6 | 3,197.3 | (4 | ) | ||||||
Total Liabilities | 108,043.7 | 111,210.7 | (3 | ) | ||||||
Common Equity | 8,317.4 | 8,396.0 | (1 | ) | ||||||
Preferred Equity | 388.5 | 388.5 | — | |||||||
Total Equity | 8,705.9 | 8,784.5 | (1 | ) | ||||||
Total Liabilities and Stockholders' Equity | $ | 116,749.6 | $ | 119,995.2 | (3 | )% |
(*) | Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information. |
(**) | Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC. |
(***) | Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are presented in other assets on the consolidated balance sheets in our periodic filings with the SEC. |
NORTHERN TRUST CORPORATION | Page 6 | |
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | ||||||||||
($ In Millions) | FOURTH QUARTER | |||||||||
2015 | 2014 | % Change (*) | ||||||||
Assets | ||||||||||
Federal Funds Sold and Securities Purchased under Agreements to Resell | $ | 1,490.3 | $ | 1,045.8 | 43 | % | ||||
Interest-Bearing Due from and Deposits with Banks (**) | 14,709.6 | 16,458.7 | (11 | ) | ||||||
Federal Reserve Deposits | 17,708.1 | 17,020.9 | 4 | |||||||
Securities | ||||||||||
U.S. Government | 5,527.4 | 3,838.4 | 44 | |||||||
Obligations of States and Political Subdivisions | 115.9 | 134.1 | (14 | ) | ||||||
Government Sponsored Agency | 16,308.7 | 16,495.1 | (1 | ) | ||||||
Other (***) | 15,886.5 | 13,044.1 | 22 | |||||||
Total Securities | 37,838.5 | 33,511.7 | 13 | |||||||
Loans and Leases | 33,884.0 | 31,351.4 | 8 | |||||||
Total Earning Assets | 105,630.5 | 99,388.5 | 6 | |||||||
Allowance for Credit Losses Assigned to Loans and Leases | (242.0 | ) | (267.1 | ) | (9 | ) | ||||
Cash and Due from Banks | 2,142.7 | 1,217.4 | 76 | |||||||
Buildings and Equipment | 441.1 | 441.2 | — | |||||||
Client Security Settlement Receivables | 1,070.9 | 954.5 | 12 | |||||||
Goodwill | 529.9 | 535.1 | (1 | ) | ||||||
Other Assets | 4,100.0 | 5,160.4 | (21 | ) | ||||||
Total Assets | $ | 113,673.1 | $ | 107,430.0 | 6 | % | ||||
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings and Money Market | $ | 14,998.5 | $ | 15,051.2 | — | % | ||||
Savings Certificates and Other Time | 1,436.2 | 1,829.3 | (21 | ) | ||||||
Non-U.S. Offices - Interest-Bearing | 50,664.5 | 48,817.9 | 4 | |||||||
Total Interest-Bearing Deposits | 67,099.2 | 65,698.4 | 2 | |||||||
Short-Term Borrowings | 5,566.3 | 4,364.4 | 28 | |||||||
Senior Notes | 1,497.3 | 1,496.9 | — | |||||||
Long-Term Debt | 1,382.0 | 1,613.4 | (14 | ) | ||||||
Floating Rate Capital Debt | 277.3 | 277.2 | — | |||||||
Total Interest-Related Funds | 75,822.1 | 73,450.3 | 3 | |||||||
Demand and Other Noninterest-Bearing Deposits | 26,009.2 | 21,732.7 | 20 | |||||||
Other Liabilities | 3,138.3 | 3,747.8 | (16 | ) | ||||||
Total Liabilities | 104,969.6 | 98,930.8 | 6 | |||||||
Common Equity | 8,315.0 | 8,110.7 | 3 | |||||||
Preferred Equity | 388.5 | 388.5 | — | |||||||
Total Equity | 8,703.5 | 8,499.2 | 2 | |||||||
Total Liabilities and Stockholders' Equity | $ | 113,673.1 | $ | 107,430.0 | 6 | % |
(*) | Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information. |
(**) | Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC. |
(***) | Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are presented in other assets on the consolidated balance sheets in our periodic filings with the SEC. |
NORTHERN TRUST CORPORATION | Page 7 | |
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | FOURTH | THIRD | ||||||||
($ In Millions) | QUARTER | QUARTER | ||||||||
2015 | 2015 | % Change (*) | ||||||||
Assets | ||||||||||
Federal Funds Sold and Securities Purchased under Agreements to Resell | $ | 1,490.3 | $ | 1,080.4 | 38 | % | ||||
Interest-Bearing Due from and Deposits with Banks (**) | 14,709.6 | 15,828.1 | (7 | ) | ||||||
Federal Reserve Deposits | 17,708.1 | 12,721.3 | 39 | |||||||
Securities | ||||||||||
U.S. Government | 5,527.4 | 5,034.6 | 10 | |||||||
Obligations of States and Political Subdivisions | 115.9 | 103.3 | 12 | |||||||
Government Sponsored Agency | 16,308.7 | 16,198.2 | 1 | |||||||
Other (***) | 15,886.5 | 16,705.0 | (5 | ) | ||||||
Total Securities | 37,838.5 | 38,041.1 | (1 | ) | ||||||
Loans and Leases | 33,884.0 | 33,138.3 | 2 | |||||||
Total Earning Assets | 105,630.5 | 100,809.2 | 5 | |||||||
Allowance for Credit Losses Assigned to Loans and Leases | (242.0 | ) | (256.0 | ) | (5 | ) | ||||
Cash and Due from Banks | 2,142.7 | 2,683.5 | (20 | ) | ||||||
Buildings and Equipment | 441.1 | 435.6 | 1 | |||||||
Client Security Settlement Receivables | 1,070.9 | 1,031.8 | 4 | |||||||
Goodwill | 529.9 | 532.4 | — | |||||||
Other Assets | 4,100.0 | 4,687.6 | (13 | ) | ||||||
Total Assets | $ | 113,673.1 | $ | 109,924.1 | 3 | % | ||||
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings and Money Market | $ | 14,998.5 | $ | 15,168.4 | (1 | )% | ||||
Savings Certificates and Other Time | 1,436.2 | 1,487.0 | (3 | ) | ||||||
Non-U.S. Offices - Interest-Bearing | 50,664.5 | 50,107.9 | 1 | |||||||
Total Interest-Bearing Deposits | 67,099.2 | 66,763.3 | 1 | |||||||
Short-Term Borrowings | 5,566.3 | 3,878.5 | 44 | |||||||
Senior Notes | 1,497.3 | 1,497.2 | — | |||||||
Long-Term Debt | 1,382.0 | 1,374.3 | 1 | |||||||
Floating Rate Capital Debt | 277.3 | 277.3 | — | |||||||
Total Interest-Related Funds | 75,822.1 | 73,790.6 | 3 | |||||||
Demand and Other Noninterest-Bearing Deposits | 26,009.2 | 24,263.7 | 7 | |||||||
Other Liabilities | 3,138.3 | 3,159.3 | (1 | ) | ||||||
Total Liabilities | 104,969.6 | 101,213.6 | 4 | |||||||
Common Equity | 8,315.0 | 8,322.0 | — | |||||||
Preferred Equity | 388.5 | 388.5 | — | |||||||
Total Equity | 8,703.5 | 8,710.5 | — | |||||||
Total Liabilities and Stockholders' Equity | $ | 113,673.1 | $ | 109,924.1 | 3 | % |
(*) | Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information. |
(**) | Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC. |
(***) | Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are presented in other assets on the consolidated balance sheets in our periodic filings with the SEC. |
NORTHERN TRUST CORPORATION | Page 8 | |
(Supplemental Consolidated Financial Information) |
QUARTERLY TREND DATA | 2015 | 2014 | |||||||||||||||||
($ In Millions Except Per Share Data) | QUARTERS | QUARTER | |||||||||||||||||
FOURTH | THIRD | SECOND | FIRST | FOURTH | |||||||||||||||
Net Income Summary | |||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 747.1 | $ | 749.1 | $ | 756.8 | $ | 727.5 | $ | 728.2 | |||||||||
Other Noninterest Income | 120.2 | 137.5 | 247.9 | 146.4 | 138.0 | ||||||||||||||
Net Interest Income | 289.4 | 268.9 | 251.2 | 260.6 | 263.9 | ||||||||||||||
Total Revenue | 1,156.7 | 1,155.5 | 1,255.9 | 1,134.5 | 1,130.1 | ||||||||||||||
Provision for Credit Losses | (18.5 | ) | (10.0 | ) | (10.0 | ) | (4.5 | ) | 3.0 | ||||||||||
Noninterest Expense | 824.8 | 812.3 | 854.5 | 789.0 | 781.3 | ||||||||||||||
Income before Income Taxes | 350.4 | 353.2 | 411.4 | 350.0 | 345.8 | ||||||||||||||
Provision for Income Taxes | 111.1 | 118.6 | 142.2 | 119.3 | 101.8 | ||||||||||||||
Net Income | $ | 239.3 | $ | 234.6 | $ | 269.2 | $ | 230.7 | $ | 244.0 | |||||||||
Per Common Share | |||||||||||||||||||
Net Income - Basic | $ | 1.00 | $ | 0.97 | $ | 1.11 | $ | 0.95 | $ | 0.98 | |||||||||
- Diluted | 0.99 | 0.96 | 1.10 | 0.94 | 0.98 | ||||||||||||||
Cash Dividends Declared per Common Share | 0.36 | 0.36 | 0.36 | 0.33 | 0.33 | ||||||||||||||
Book Value (EOP) | 36.27 | 36.31 | 35.91 | 35.22 | 34.54 | ||||||||||||||
Market Value (EOP) | 72.09 | 68.16 | 76.46 | 69.65 | 67.40 | ||||||||||||||
Financial Ratios | |||||||||||||||||||
Return on Average Common Equity | 11.14 | % | 10.91 | % | 12.85 | % | 11.28 | % | 11.47 | % | |||||||||
Return on Average Assets | 0.84 | 0.85 | 0.97 | 0.87 | 0.90 | ||||||||||||||
Net Interest Margin (GAAP) | 1.09 | 1.06 | 0.97 | 1.07 | 1.05 | ||||||||||||||
Net Interest Margin (FTE) | 1.11 | 1.08 | 1.00 | 1.10 | 1.08 | ||||||||||||||
Capital Ratios | |||||||||||||||||||
Standardized Approach | |||||||||||||||||||
Common Equity Tier 1 | 10.8 | % | 10.4 | % | 10.7 | % | 10.5 | % | 12.5 | % | |||||||||
Tier 1 | 11.4 | 11.0 | 11.2 | 11.1 | 13.3 | ||||||||||||||
Total | 13.2 | 12.8 | 13.2 | 13.1 | 15.5 | ||||||||||||||
Tier 1 Leverage | 7.5 | 7.8 | 7.6 | 7.8 | 7.8 | ||||||||||||||
Advanced Approach | |||||||||||||||||||
Common Equity Tier 1 | 11.9 | % | 12.4 | % | 12.0 | % | 11.8 | % | 12.4 | % | |||||||||
Tier 1 | 12.5 | 13.0 | 12.6 | 12.4 | 13.2 | ||||||||||||||
Total | 14.2 | 14.8 | 14.4 | 14.2 | 15.0 | ||||||||||||||
Tier 1 Leverage | 7.5 | 7.8 | 7.6 | 7.8 | n/a | ||||||||||||||
Supplementary Leverage | 6.2 | 6.4 | 6.3 | 6.4 | n/a | ||||||||||||||
Assets Under Custody ($ In Billions) - EOP | |||||||||||||||||||
Corporate & Institutional Services | $ | 5,565.8 | $ | 5,460.6 | $ | 5,652.6 | $ | 5,566.2 | $ | 5,453.1 | |||||||||
Wealth Management | 506.3 | 495.8 | 524.4 | 524.6 | 515.7 | ||||||||||||||
Total Assets Under Custody | $ | 6,072.1 | $ | 5,956.4 | $ | 6,177.0 | $ | 6,090.8 | $ | 5,968.8 | |||||||||
Assets Under Management ($ In Billions) - EOP | |||||||||||||||||||
Corporate & Institutional Services | $ | 648.0 | $ | 661.5 | $ | 713.6 | $ | 727.0 | $ | 709.6 | |||||||||
Wealth Management | 227.3 | 225.3 | 232.0 | 233.1 | 224.5 | ||||||||||||||
Total Assets Under Management | $ | 875.3 | $ | 886.8 | $ | 945.6 | $ | 960.1 | $ | 934.1 | |||||||||
Asset Quality ($ In Millions) - EOP | |||||||||||||||||||
Nonperforming Loans and Leases | $ | 180.1 | $ | 198.6 | $ | 208.7 | $ | 219.6 | $ | 215.7 | |||||||||
Other Real Estate Owned (OREO) | 8.2 | 8.9 | 10.1 | 8.5 | 16.6 | ||||||||||||||
Total Nonperforming Assets | $ | 188.3 | $ | 207.5 | $ | 218.8 | $ | 228.1 | $ | 232.3 | |||||||||
Nonperforming Assets / Loans and Leases and OREO | 0.57 | % | 0.62 | % | 0.66 | % | 0.70 | % | 0.73 | % | |||||||||
Gross Charge-offs | $ | 5.2 | $ | 11.9 | $ | 6.1 | $ | 7.5 | $ | 8.2 | |||||||||
Less: Gross Recoveries | 2.3 | 2.5 | 3.5 | 2.9 | 2.8 | ||||||||||||||
Net Charge-offs | $ | 2.9 | $ | 9.4 | $ | 2.6 | $ | 4.6 | $ | 5.4 | |||||||||
Net Charge-offs (Annualized) to Average Loans and Leases | 0.03 | % | 0.11 | % | 0.03 | % | 0.06 | % | 0.07 | % | |||||||||
Allowance for Credit Losses Assigned to Loans and Leases | $ | 193.8 | $ | 242.2 | $ | 257.3 | $ | 259.0 | $ | 267.0 | |||||||||
Allowance to Nonperforming Loans and Leases | 1.1x | 1.2 | x | 1.2 | x | 1.2 | x | 1.2 | x | ||||||||||
Allowance for Other Credit-Related Exposures | $ | 39.5 | $ | 12.5 | $ | 16.9 | $ | 27.7 | $ | 28.9 |
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