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Securities
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Available for Sale Debt Securities. The following tables provide the amortized cost and fair values as of March 31, 2023 and December 31, 2022, and remaining maturities of AFS debt securities as of March 31, 2023.
TABLE 35: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES
MARCH 31, 2023
(In Millions)AMORTIZED COSTGROSS UNREALIZED GAINSGROSS UNREALIZED LOSSESFAIR VALUE
U.S. Government$2,931.1 $4.8 $76.0 $2,859.9 
Obligations of States and Political Subdivisions318.1 — 26.2 291.9 
Government Sponsored Agency11,686.8 5.1 258.5 11,433.4 
Non-U.S. Government382.0 — 20.6 361.4 
Corporate Debt652.6 0.3 18.4 634.5 
Covered Bonds356.1 0.2 11.9 344.4 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds2,918.9 1.9 133.1 2,787.7 
Other Asset-Backed5,247.6 0.5 237.7 5,010.4 
Commercial Mortgage-Backed971.2 — 67.3 903.9 
Total$25,464.4 $12.8 $849.7 $24,627.5 
DECEMBER 31, 2022
(In Millions)AMORTIZED COSTGROSS UNREALIZED GAINSGROSS UNREALIZED LOSSESFAIR VALUE
U.S. Government$2,837.7 $2.5 $92.8 $2,747.4 
Obligations of States and Political Subdivisions817.8 — 30.2 787.6 
Government Sponsored Agency11,892.5 4.3 351.6 11,545.2 
Non-U.S. Government387.6 — 27.6 360.0 
Corporate Debt1,774.3 0.2 26.9 1,747.6 
Covered Bonds403.1 0.3 14.7 388.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds2,645.8 0.3 166.7 2,479.4 
Other Asset-Backed5,544.3 — 288.1 5,256.2 
Commercial Mortgage-Backed1,456.9 0.1 69.2 1,387.8 
Total$27,760.0 $7.7 $1,067.8 $26,699.9 
TABLE 36: REMAINING MATURITY OF AVAILABLE FOR SALE DEBT SECURITIES
MARCH 31, 2023ONE YEAR OR LESSONE TO FIVE YEARSFIVE TO TEN YEARSOVER TEN YEARSTOTAL
(In Millions)AMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUE
U.S. Government$1,086.5 $1,085.1 $1,844.6 $1,774.8 $— $— $— $— $2,931.1 $2,859.9 
Obligations of States and Political Subdivisions— — — — 298.7 273.6 19.4 18.3 318.1 291.9 
Government Sponsored Agency2,557.4 2,520.7 5,406.0 5,291.3 3,035.6 2,968.7 687.8 652.7 11,686.8 11,433.4 
Non-U.S. Government100.2 100.1 281.8 261.3 — — — — 382.0 361.4 
Corporate Debt305.4 303.5 328.9 315.0 18.3 16.0 — — 652.6 634.5 
Covered Bonds135.2 134.7 220.9 209.7 — — — — 356.1 344.4 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds566.6 561.3 2,131.9 2,038.3 220.4 188.1 — — 2,918.9 2,787.7 
Other Asset-Backed989.4 944.4 2,978.0 2,812.9 1,154.0 1,129.7 126.2 123.4 5,247.6 5,010.4 
Commercial Mortgage-Backed37.6 35.2 772.5 731.8 161.1 136.9 — — 971.2 903.9 
Total$5,778.3 $5,685.0 $13,964.6 $13,435.1 $4,888.1 $4,713.0 $833.4 $794.4 $25,464.4 $24,627.5 
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.
Available for Sale Debt Securities with Unrealized Losses. The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2023 and December 31, 2022.
TABLE 37: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED
MARCH 31, 2023LESS THAN 12 MONTHS12 MONTHS OR LONGERTOTAL
(In Millions)FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES
U.S. Government$949.8 $39.5 $534.3 $36.5 $1,484.1 $76.0 
Obligations of States and Political Subdivisions18.5 1.8 190.7 17.6 209.2 19.4 
Government Sponsored Agency7,010.8 181.7 3,490.2 76.8 10,501.0 258.5 
Non-U.S. Government 66.6 — 294.9 20.6 361.5 20.6 
Corporate Debt196.3 8.4 172.3 0.8 368.6 9.2 
Covered Bonds131.4 9.3 149.4 2.6 280.8 11.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds1,070.1 38.9 826.3 67.5 1,896.4 106.4 
Other Asset-Backed2,672.5 130.6 2,226.3 107.1 4,898.8 237.7 
Commercial Mortgage-Backed523.1 37.2 363.6 30.1 886.7 67.3 
Total$12,639.1 $447.4 $8,248.0 $359.6 $20,887.1 $807.0 
Note: Eleven sub-sovereign, supranational and non-U.S. agency bonds AFS securities with a fair value of $148.7 million and unrealized losses of $9.2 million, Six corporate debt AFS securities with a fair value of $431.3 million and unrealized losses of $26.7 million and three Obligations of States and Political Subdivisions AFS securities with a fair value of $82.7 million and unrealized losses of $6.8 million have been excluded from the table above as these AFS securities have a $1.8 million allowance for credit losses reported as of March 31, 2023. Refer to the discussion further below and Note 6—Allowance for Credit Losses for further information.
DECEMBER 31, 2022LESS THAN 12 MONTHS12 MONTHS OR LONGERTOTAL
(In Millions)FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES
U.S. Government$1,123.6 $64.1 $343.1 $28.7 $1,466.7 $92.8 
Obligations of States and Political Subdivisions160.0 16.8 120.6 13.4 280.6 30.2 
Government Sponsored Agency7,631.4 262.1 2,737.7 89.5 10,369.1 351.6 
Non-U.S. Government235.4 17.3 124.6 10.3 360.0 27.6 
Corporate Debt427.3 14.6 130.3 2.8 557.6 17.4 
Covered Bonds238.0 13.5 42.8 1.2 280.8 14.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds1,305.4 74.4 807.1 83.2 2,112.5 157.6 
Other Asset-Backed3,873.4 217.5 1,247.6 70.6 5,121.0 288.1 
Commercial Mortgage-Backed670.9 47.4 215.6 21.8 886.5 69.2 
Total$15,665.4 $727.7 $5,769.4 $321.5 $21,434.8 $1,049.2 
Note: Three corporate debt AFS securities with a fair value of $93.8 million and unrealized losses of $9.5 million and one sub-sovereign, supranational and non-U.S. agency bonds AFS security with a fair value of $68.3 million and unrealized loss of $9.1 million have been excluded from the table above as these AFS securities have a $1.3 million allowance for credit losses reported as of December 31, 2022. Refer to the discussion further below and Note 6—Allowance for Credit Losses for further information.
As of March 31, 2023, 1,013 AFS debt securities with a combined fair value of $20.9 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $807.0 million. As of March 31, 2023, unrealized losses related to AFS debt securities of $258.5 million, $237.7 million, and $106.4 million related to government-sponsored agency securities, other asset-backed and sub-sovereign, supranational and non-U.S. agency bonds, respectively, which are primarily attributable to changes in overall market interest rates.
As of December 31, 2022, 1,030 AFS debt securities with a combined fair value of $21.4 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $1.0 billion. As of December 31, 2022, unrealized losses related to AFS debt securities of $351.6 million, $288.1 million, and $157.6 million related to government-sponsored agency, other asset-backed, and sub-sovereign, supranational and non-U.S. agency bonds, respectively, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase.
As of December 31, 2022, the Corporation intended to sell certain AFS debt securities that were in an unrealized loss position. The securities were written down to their fair value of $2.1 billion with a $213.0 million loss recognized in Investment Security Gains (Losses), net on the consolidated statements of income for the period ended December 31, 2022. In January 2023, the securities were subsequently sold resulting in an incremental $6.9 million gain upon sale as compared to the fair value recorded on the consolidated balance sheets at December 31, 2022.
AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes
into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit-related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred.
There was a $0.5 million provision for credit losses for AFS securities for the three months ended March 31, 2023.There was $0.4 million provision for credit losses for AFS securities for the three months ended March 31, 2022. There was an $1.8 million allowance for credit losses for AFS securities as of March 31, 2023 which was primarily corporate debt securities and $1.3 million allowance for credit losses for AFS securities as of December 31, 2022. The process for identifying credit losses for AFS securities is based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security. For additional information, please refer to Note 6— Allowance for Credit Losses.
Held to Maturity Debt Securities. Held to maturity (HTM) debt securities consist of securities that management intends to, and Northern Trust has the ability to, hold until maturity. The following tables provide the amortized cost and fair values as of March 31, 2023 and December 31, 2022, and remaining maturities of HTM debt securities as of March 31, 2023.
TABLE 38: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF HELD TO MATURITY DEBT SECURITIES
MARCH 31, 2023
(In Millions)AMORTIZED
COST		GROSS UNREALIZED GAINSGROSS UNREALIZED LOSSESFAIR
VALUE
Obligations of States and Political Subdivisions$2,573.6 $0.7 $74.9 $2,499.4 
Government Sponsored Agency9,259.9 — 949.8 8,310.1 
Non-U.S. Government2,772.2 0.7 121.5 2,651.4 
Corporate Debt673.0 — 42.6 630.4 
Covered Bonds2,275.8 0.4 148.9 2,127.3 
Certificates of Deposit544.7 — — 544.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds5,700.3 2.1 397.1 5,305.3 
Other Asset-Backed335.7 — 1.0 334.7 
Commercial Mortgage-Backed37.6 — 0.8 36.8 
Other543.4 — 160.4 383.0 
Total$24,716.2 $3.9 $1,897.0 $22,823.1 
DECEMBER 31, 2022
(In Millions)AMORTIZED
COST		GROSS UNREALIZED GAINSGROSS UNREALIZED LOSSES FAIR
VALUE
U.S. Government$50.0 $— $— $50.0 
Obligations of States and Political Subdivisions2,565.3 — 149.8 2,415.5 
Government Sponsored Agency9,407.7 — 1,076.0 8,331.7 
Non-U.S. Government3,234.0 0.1 133.8 3,100.3 
Corporate Debt713.3 — 45.4 667.9 
Covered Bonds2,530.3 0.3 158.7 2,371.9 
Certificates of Deposit35.9 — — 35.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds5,703.3 1.0 436.1 5,268.2 
Other Asset-Backed263.7 — 1.0 262.7 
Other532.6 — 157.4 375.2 
Total$25,036.1 $1.4 $2,158.2 $22,879.3 
As of March 31, 2023, the $24.7 billion HTM debt securities portfolio had unrealized losses of $949.8 million and $397.1 million related to government-sponsored agency and sub-sovereign, supranational and non-U.S. agency bonds, respectively, which are primarily attributable to changes in overall market interest rates. As of December 31, 2022, the $25.0 billion HTM debt securities portfolio had unrealized losses of $1.1 billion and $436.1 million related to government-sponsored agency and sub-sovereign, supranational and non-U.S. agency bonds, respectively, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase.
TABLE 39: REMAINING MATURITY OF HELD TO MATURITY DEBT SECURITIES
MARCH 31, 2023ONE YEAR OR LESSONE TO FIVE YEARSFIVE TO TEN YEARSOVER TEN YEARSTOTAL
(In Millions)Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Obligations of States and Political Subdivisions$46.3 $45.8 $832.4 $813.6 $1,270.8 $1,231.5 $424.1 $408.5 $2,573.6 $2,499.4 
Government Sponsored Agency907.6 809.9 3,012.3 2,706.1 3,546.2 3,203.5 1,793.8 1,590.6 9,259.9 8,310.1 
Non-U.S. Government1,359.7 1,354.4 1,379.2 1,269.0 33.3 28.0 — — 2,772.2 2,651.4 
Corporate Debt62.7 61.5 594.9 556.5 15.4 12.4 — — 673.0 630.4 
Covered Bonds171.4 168.4 1,708.9 1,619.9 395.5 339.0 — — 2,275.8 2,127.3 
Certificates of Deposit544.7 544.7 — — — — — — 544.7 544.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds956.3 944.9 4,687.9 4,314.0 56.1 46.4 — — 5,700.3 5,305.3 
Other Asset-Backed28.6 28.6 96.4 96.0 182.4 181.9 28.3 28.2 335.7 334.7 
Commercial Mortgage-Backed— — 37.6 36.8 — — — — 37.6 36.8 
Other53.0 51.1 295.0 257.6 34.7 25.3 160.7 49.0 543.4 383.0 
Total$4,130.3 $4,009.3 $12,644.6 $11,669.5 $5,534.4 $5,068.0 $2,406.9 $2,076.3 $24,716.2 $22,823.1 
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.
Credit Quality Indicators. The following table provides the amortized cost of HTM debt securities by credit rating.
TABLE 40: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING
MARCH 31, 2023
(In Millions)AAAAAABBBNOT RATEDTOTAL
Obligations of States and Political Subdivisions$929.5 $1,644.1 $— $— $— $2,573.6 
Government Sponsored Agency9,259.9 — — — — 9,259.9 
Non-U.S. Government1,021.0 894.8 528.5 327.9 — 2,772.2 
Corporate Debt2.2 302.3 368.5 — — 673.0 
Covered Bonds2,275.8 — — — — 2,275.8 
Certificates of Deposit501.3 — — — 43.4 544.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds4,380.1 1,289.6 29.5 1.1 — 5,700.3 
Other Asset-Backed335.7 — — — — 335.7 
Commercial Mortgage-Backed37.6 — — — — 37.6 
Other63.5 — — — 479.9 543.4 
Total$18,806.6 $4,130.8 $926.5 $329.0 $523.3 $24,716.2 
Percent of Total76 %17 %4 %1 %2 %100 %

DECEMBER 31, 2022
(In Millions)AAAAAABBBNOT RATEDTOTAL
U.S. Government$50.0 $— $— $— $— $50.0 
Obligations of States and Political Subdivisions926.8 1,638.5 — — — 2,565.3 
Government Sponsored Agency9,407.7 — — — — 9,407.7 
Non-U.S. Government762.2 926.5 1,223.0 322.3 — 3,234.0 
Corporate Debt2.1 305.7 405.5 — — 713.3 
Covered Bonds2,530.3 — — — — 2,530.3 
Certificates of Deposit— — — — 35.9 35.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds4,171.3 1,502.0 28.9 1.1 — 5,703.3 
Other Asset-Backed263.7 — — — — 263.7 
Other65.8 — — — 466.8 532.6 
Total$18,179.9 $4,372.7 $1,657.4 $323.4 $502.7 $25,036.1 
Percent of Total73 %17 %7 %1 %2 %100 %
Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 97% of the HTM portfolio at both March 31, 2023 and December 31, 2022, respectively, comprised of securities rated A or higher. The remaining HTM debt securities portfolio was comprised of 1% rated BBB at both March 31, 2023 and December 31, 2022, respectively, and 2% was not rated by Moody’s, S&P Global,
or Fitch Ratings at both March 31, 2023 and December 31, 2022, respectively. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.Investment Security Gains and Losses. Proceeds of $2.1 billion from the sale of debt securities resulted in investment security gains of $6.9 million for the three months ended March 31, 2023. The gain was comprised of a $9.8 million gain in obligations of states and political subdivisions, offset by losses of $1.2 million in corporate debt, $0.9 million in commercial mortgage-backed, and $0.8 million in other asset-backed securities. There were no sales of debt securities and no net investment security gains (losses) for the three months ended March 31, 2022.