EX-99.3 4 q42023trendreport-wordrepo.htm EX-99.3 Document
Exhibit 99.3
reportsa29.jpg



Financial Trends
Fourth Quarter 2023
January 18, 2024



Please direct inquiries to:
Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or jennifer.childe@ntrs.com
Grace Higgins
Second Vice President, Investor Relations
(847) 946-9113 or grace.higgins@ntrs.com



The historical financial results and trends reflected in this report are not indicative of future financial results and trends for Northern Trust Corporation. This report should be read in conjunction with the Corporation's Fourth Quarter 2023 earnings press release, 2022 Annual Report to Shareholders, and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.



TABLE OF CONTENTS
17
Financial SummaryBalance Sheet Mix Trends
28
Income StatementInterest Rate Trends
39
Net Income TrendsAsset Quality
410
Fee DetailTrust Assets
511
Balance Sheet (EOP)Reconciliation to FTE
612
Balance Sheet TrendsReconciliation to FTE (Ratios)


Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
20222023
201920202021202220231st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Profitability:
$1,492.2 $1,209.3 $1,545.3 $1,336.0 $1,107.3 Net Income$389.3 $396.2 $394.8 $155.7 $334.6 $331.8 $327.8 $113.1 
1,428.9 1,141.0 1,490.6 1,282.4 1,053.9 Earnings Allocated to Common and Potential370.0 388.3 375.4 148.7 315.2 323.7 308.5 106.5 
  Common Shares
$6.66 $5.48 $7.16 $6.16 $5.09 Basic Earnings Per Share$1.78 $1.86 $1.80 $0.71 $1.51 $1.56 $1.49 $0.52 
6.63 5.46 7.14 6.14 5.08 Diluted Earnings Per Share1.77 1.86 1.80 0.71 1.51 1.56 1.49 0.52 
— %(18 %)31 %(14 %)(17 %)Diluted EPS Growth over Previous Year4 %8 %— %(63 %)(15 %)(16 %)(17 %)(27 %)
14.9 %11.2 %13.9 %12.7 %10.0 %Return on Average Common Equity14.2 %15.7 %14.9 %5.9 %12.4 %12.4 %11.6 %4.0 %
1.27 %0.88 %0.99 %0.88 %0.78 %Return on Average Assets0.97 %1.03 %1.07 %0.42 %0.92 %0.91 %0.93 %0.33 %
32.4 %27.1 %31.5 %26.6 %22.3 %
Profit Margin (pre-tax) (FTE)(1)
30.0 %31.0 %30.4 %13.4 %26.0 %25.6 %25.7 %10.5 %
24.4 %19.7 %23.8 %19.6 %16.2 %
Profit Margin (after-tax) (FTE)(1)
22.6 %22.3 %22.3 %10.1 %19.0 %18.7 %18.8 %7.2 %
72.0 %75.9 %78.2 %71.6 %70.1 %
Noninterest Income to Total Revenue (FTE)(1)
77.5 %73.6 %70.3 %64.2 %69.0 %70.4 %73.0 %67.9 %
63.1 %65.1 %67.1 %65.1 %63.9 %
Trust Fees to Total Revenue (FTE)(1)
67.7 %64.2 %61.0 %67.9 %60.5 %61.9 %63.9 %69.7 %
23.2 %25.7 %23.1 %24.4 %24.4 %Effective Tax Rate (US GAAP)23.8 %26.7 %24.7 %18.2 %24.6 %24.7 %24.5 %22.4 %
24.5 %27.2 %24.5 %26.3 %27.3 %
Effective Tax Rate (FTE)(1)
24.8 %28.2 %26.4 %24.4 %26.8 %26.9 %26.8 %30.9 %
Capital Ratios:(2)
Standardized Approach
12.7 %12.8 %11.9 %10.8 %11.4 %Common Equity Tier 1 Capital11.4 %10.5 %10.1 %10.8 %11.3 %11.3 %11.4 %11.4 %
14.5 %13.9 %12.9 %11.8 %12.3 %Tier 1 Capital12.4 %11.5 %11.1 %11.8 %12.3 %12.3 %12.4 %12.3 %
16.3 %15.6 %14.1 %13.9 %14.2 %Total Capital13.6 %12.6 %12.2 %13.9 %14.4 %14.4 %14.5 %14.2 %
8.7 %7.6 %6.9 %7.1 %8.1 %Tier 1 Leverage6.5 %6.7 %7.0 %7.1 %7.3 %7.4 %7.9 %8.1 %
Advanced Approach
13.2 %13.4 %13.2 %11.5 %13.4 %Common Equity Tier 1 Capital12.1 %11.6 %11.4 %11.5 %11.7 %13.0 %13.2 %13.4 %
15.0 %14.5 %14.3 %12.5 %14.5 %Tier 1 Capital13.2 %12.7 %12.5 %12.5 %12.7 %14.1 %14.3 %14.5 %
16.8 %15.9 %15.3 %14.5 %16.5 %Total Capital14.2 %13.7 %13.5 %14.5 %14.7 %16.3 %16.5 %16.5 %
8.7 %7.6 %6.9 %7.1 %8.1 %Tier 1 Leverage6.5 %6.7 %7.0 %7.1 %7.3 %7.4 %7.9 %8.1 %
7.6 %8.6 %8.2 %7.9 %8.6 %
Supplementary Leverage (3)
7.9 %7.6 %7.7 %7.9 %8.3 %8.3 %8.4 %8.6 %
Per Share Information / Ratios:
$2.60 $2.80 $2.80 $2.90 $3.00 Cash Dividends Declared Per Common Share$0.70 $0.70 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 
39 %51 %39 %47 %59 %Dividend Payout Ratio40 %38 %42 %106 %50 %48 %50 %144 %
$106.24 $93.14 $119.61 $88.49 $84.38 Market Value Per Share (End of Period)$116.45 $96.48 $85.56 $88.49 $88.13 $74.14 $69.48 $84.38 
16.0 17.1 16.8 14.4 16.6 Stock Price Multiple of Earnings16.2 13.1 11.7 14.4 15.0 13.3 13.2 16.6 
(based on trailing 4 quarters of diluted EPS)
$46.82 $51.87 $53.58 $49.78 $53.69 Book Value Per Common Share (End of Period)$50.51 $48.87 $48.68 $49.78 $51.37 $51.94 $52.95 $53.69 
(1)
Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
(2)
Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
(3)
From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.
1

Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
TWELVE MONTHS
CHANGE (2)
FOURTH QUARTER
CHANGE (2)
20232022$%20232022$%
$2,461.9 $2,496.3 $(34.4)(1)%Asset Servicing Trust, Investment and Other Servicing Fees$611.7 $588.0 $23.7 4 %
1,899.9 1,936.3 (36.4)(2)%WM Trust, Investment and Other Servicing Fees 478.3 454.1 24.2 5 %
4,361.8 4,432.6 (70.8)(2)%     Total Fees1,090.0 1,042.1 47.9 5 %
203.9 288.6 (84.7)(29)%Foreign Exchange Trading Income49.0 65.4 (16.4)(25)%
31.6 39.3 (7.7)(20)%Treasury Management Fees7.8 8.3 (0.5)(8)%
135.0 136.2 (1.2)(1)%Security Commissions and Trading Income33.3 35.1 (1.8)(5)%
228.7 191.3 37.4 19 %Other Operating Income58.5 47.3 11.2 24 %
(169.5)(214.0)44.5 N/MInvestment Security Gains (Losses), net(176.4)(213.7)37.3 N/M
4,791.5 4,874.0 (82.5)(2)%     Total Noninterest Income1,062.2 984.5 77.7 8 %
7,382.5 2,923.3 4,459.2 153 %
Interest Income (FTE)(1)
2,217.6 1,185.6 1,032.0 87 %
5,343.0 990.5 4,352.5 N/MInterest Expense1,716.5 635.6 1,080.9 170 %
2,039.5 1,932.8 106.7 6 %
Net Interest Income (FTE)(1)
501.1 550.0 (48.9)(9)%
6,831.0 6,806.8 24.2 — %
     Total Revenue (FTE)(1)
1,563.3 1,534.5 28.8 2 %
24.5 12.0 12.5 N/MProvision for Credit Losses11.0 5.0 6.0 N/M
2,321.8 2,248.0 73.8 3 %Compensation564.0 584.3 (20.3)(3)%
405.2 437.4 (32.2)(7)%Employee Benefits102.0 103.6 (1.6)(2)%
906.5 880.3 26.2 3 %Outside Services 235.2 232.9 2.3 1 %
945.5 838.8 106.7 13 %Equipment and Software252.0 229.4 22.6 10 %
232.3 219.1 13.2 6 %Occupancy58.5 65.7 (7.2)(11)%
472.9 359.3 113.6 32 %Other Operating Expense176.8 107.7 69.1 64 %
5,284.2 4,982.9 301.3 6 %     Total Noninterest Expense1,388.5 1,323.6 64.9 5 %
1,522.3 1,811.9 (289.6)(16)%
     Income before Income Taxes (FTE)(1)
163.8 205.9 (42.1)(20)%
357.5 430.3 (72.8)(17)%Provision for Income Taxes32.7 34.7 (2.0)(6)%
57.5 45.6 11.9 26 %Taxable Equivalent Adjustment18.0 15.5 2.5 16 %
415.0 475.9 (60.9)(13)%
     Total Taxes (FTE)(1)
50.7 50.2 0.5 1 %
$1,107.3 $1,336.0 $(228.7)(17)%     Net Income$113.1 $155.7 $(42.6)(27)%
$41.8 $41.8 $— — %Dividends on Preferred Stock$4.7 $4.7 $— — %
11.6 11.8 (0.2)(1)%Earnings Allocated to Participating Securities1.9 2.3 (0.4)(16)%
1,053.9 1,282.4 (228.5)(18)%Earnings Allocated to Common and Potential Common Shares106.5 148.7 (42.2)(28)%
$5.09 $6.16 $(1.07)(17)%Earnings Per Share - Basic$0.52 $0.71 $(0.19)(28)%
$5.08 $6.14 $(1.06)(17)%Earnings Per Share - Diluted$0.52 $0.71 $(0.19)(27)%
207,248 208,309 Average Basic Shares (000s)206,170 208,423 
207,564 208,867 Average Diluted Shares (000s)206,484 208,894 
205,126 208,428 End of Period Shares Outstanding (000s)205,126 208,428 
N/M - Not meaningful
(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
(2) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
2

Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
20222023
201920202021202220231st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$2,211.5 $2,321.6 $2,487.3 $2,496.3 $2,461.9 Asset Servicing Trust, Investment and Other Servicing Fees$662.4 $642.7 $603.2 $588.0 $603.0 $621.2 $626.0 $611.7 
1,640.6 1,673.4 1,873.8 1,936.3 1,899.9 WM Trust, Investment and Other Servicing Fees506.0 500.7 475.5 454.1 460.6 475.1 485.9 478.3 
3,852.1 3,995.0 4,361.1 4,432.6 4,361.8      Total Fees1,168.4 1,143.4 1,078.7 1,042.1 1,063.6 1,096.3 1,111.9 1,090.0 
250.9 290.4 292.6 288.6 203.9 Foreign Exchange Trading Income80.9 77.6 64.7 65.4 53.0 50.1 51.8 49.0 
44.5 45.4 44.3 39.3 31.6 Treasury Management Fees11.1 10.6 9.3 8.3 8.4 7.9 7.5 7.8 
103.6 133.2 140.2 136.2 135.0 Security Commissions and Trading Income36.2 32.8 32.1 35.1 34.7 36.1 30.9 33.3 
145.5 194.0 243.9 191.3 228.7 Other Operating Income41.1 45.6 57.3 47.3 46.8 55.2 68.2 58.5 
(1.4)(0.4)(0.3)(214.0)(169.5)Investment Security Gains (Losses), net— — (0.3)(213.7)6.9 — — (176.4)
4,395.2 4,657.6 5,081.8 4,874.0 4,791.5      Total Noninterest Income1,337.7 1,310.0 1,241.8 984.5 1,213.4 1,245.6 1,270.3 1,062.2 
1,710.7 1,477.6 1,418.3 1,932.8 2,039.5 
Net Interest Income (FTE)(1)
387.7 469.8 525.3 550.0 544.4 524.6 469.4 501.1 
6,105.9 6,135.2 6,500.1 6,806.8 6,831.0 
     Total Revenue (FTE)(1)
1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 1,739.7 1,563.3 
(14.5)125.0 (81.5)12.0 24.5 Provision for (Release of) Credit Losses2.0 4.5 0.5 5.0 15.0 (15.5)14.0 11.0 
1,859.0 1,947.1 2,011.0 2,248.0 2,321.8 Compensation563.9 546.5 553.3 584.3 595.2 604.5 558.1 564.0 
355.2 387.7 431.4 437.4 405.2 Employee Benefits104.3 119.6 109.9 103.6 101.0 101.4 100.8 102.0 
774.5 763.1 849.4 880.3 906.5 Outside Services213.4 213.1 220.9 232.9 210.8 230.9 229.6 235.2 
612.1 673.5 736.3 838.8 945.5 Equipment and Software193.5 203.5 212.4 229.4 231.7 229.3 232.5 252.0 
212.9 230.1 208.7 219.1 232.3 Occupancy51.1 51.0 51.3 65.7 61.3 53.8 58.7 58.5 
329.8 346.7 299.1 359.3 472.9 Other Operating Expense79.7 89.9 82.0 107.7 85.6 112.0 98.5 176.8 
4,143.5 4,348.2 4,535.9 4,982.9 5,284.2      Total Noninterest Expense1,205.9 1,223.6 1,229.8 1,323.6 1,285.6 1,331.9 1,278.2 1,388.5 
1,976.9 1,662.0 2,045.7 1,811.9 1,522.3 
     Income before Income Taxes (FTE)(1)
517.5 551.7 536.8 205.9 457.2 453.8 447.5 163.8 
451.9 418.3 464.8 430.3 357.5 Provision for Income Taxes121.5 144.4 129.7 34.7 109.4 108.9 106.5 32.7 
32.8 34.4 35.6 45.6 57.5 Taxable Equivalent Adjustment6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0 
484.7 452.7 500.4 475.9 415.0 
     Total Taxes (FTE)(1)
128.2 155.5 142.0 50.2 122.6 122.0 119.7 50.7 
$1,492.2 $1,209.3 $1,545.3 $1,336.0 $1,107.3      Net Income$389.3 $396.2 $394.8 $155.7 $334.6 $331.8 $327.8 $113.1 
$6.66 $5.48 $7.16 $6.16 $5.09 Earnings Per Share - Basic$1.78 $1.86 $1.80 $0.71 $1.51 $1.56 $1.49 $0.52 
6.63 5.46 7.14 6.14 5.08 Earnings Per Share - Diluted1.77 1.86 1.80 0.71 1.51 1.56 1.49 0.52 
215,601 209,008 208,899 208,867 207,564 Average Diluted Shares (000s)208,809 208,878 208,889 208,894 208,730 207,816 207,253 206,484 
$46.4 $56.2 $41.8 $41.8 $41.8 
Preferred Dividends(2)
$16.2 $4.7 $16.2 $4.7 $16.2 $4.7 $16.2 $4.7 
(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
(2) Dividends on Preferred Stock in 2020 includes $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.
3

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
20222023
20192020202120222023Asset Servicing1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$1,549.3 $1,586.1 $1,818.8 $1,700.1 $1,689.5 Custody & Fund Administration$452.7 $433.8 $407.3 $406.3 $413.6 $427.4 $428.1 $420.4 
445.7 511.1 443.5 555.1 528.1 Investment Management146.9 148.4 136.0 123.8 126.2 134.1 137.1 130.4 
87.2 88.0 76.7 81.4 83.0 Securities Lending18.8 21.6 21.7 19.3 19.1 21.5 20.4 22.0 
129.3 136.4 148.3 159.7 161.3 Other44.0 38.9 38.2 38.6 44.1 38.2 40.4 38.9 
$2,211.5 $2,321.6 $2,487.3 $2,496.3 $2,461.9 Total Asset Servicing Trust, Investment and Other Servicing Fees$662.4 $642.7 $603.2 $588.0 $603.0 $621.2 $626.0 $611.7 
Wealth Management
$619.3 $607.3 $698.7 $692.6 $673.8 Central$181.7 $177.4 $171.3 $162.2 $163.6 $166.0 $172.3 $171.9 
422.2 442.1 509.3 504.0 491.5 East134.0 128.1 124.1 117.8 119.8 124.1 126.1 121.5 
330.9 337.7 380.2 382.1 378.0 West101.4 98.7 92.5 89.5 91.2 93.7 95.8 97.3 
268.2 286.3 285.6 357.6 356.6 Global Family Office88.9 96.5 87.6 84.6 86.0 91.3 91.7 87.6 
$1,640.6 $1,673.4 $1,873.8 $1,936.3 $1,899.9 Total WM Trust, Investment and Other Servicing Fees$506.0 $500.7 $475.5 $454.1 $460.6 $475.1 $485.9 $478.3 

4

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
CHANGE (5)
Assets12/31/202312/31/2022$%
Federal Reserve and Other Central Bank Deposits$34,281.0 $39,961.9 $(5,680.9)(14)%
Interest-Bearing Due from and Deposits with Banks(1)
5,241.4 4,926.6 314.8 6 %
Federal Funds Sold— 32.0 (32.0)(100)%
Securities Purchased under Agreements to Resell784.7 1,070.3 (285.6)(27)%
Debt Securities:
Available For Sale23,089.8 26,699.9 (3,610.1)(14)%
Held To Maturity26,221.7 25,036.1 1,185.6 5 %
Trading Account— 95.2 (95.2)(100)%
   Total Debt Securities49,311.5 51,831.2 (2,519.7)(5)%
Loans47,617.0 42,893.3 4,723.7 11 %
Other Interest-Earning Assets(2)
3,134.0 1,769.4 1,364.6 77 %
Total Earning Assets140,369.6 142,484.7 (2,115.1)(1)%
Allowance for Credit Losses(192.3)(161.1)(31.2)19 %
Cash and Due From Banks and Other Central Bank Deposits(3)
1,534.3 1,737.2 (202.9)(12)%
Buildings and Equipment502.2 500.5 1.7 — %
Client Security Settlement Receivables212.6 1,698.3 (1,485.7)(87)%
Goodwill702.3 691.3 11.0 2 %
Other Assets7,654.4 8,085.8 (431.4)(5)%
Total Assets$150,783.1 $155,036.7 $(4,253.6)(3)%
Liabilities and Stockholders' Equity
Savings, Money Market and Other$25,252.1 $31,128.6 $(5,876.5)(19)%
Savings Certificates and Other Time4,109.7 1,981.3 2,128.4 107 %
Non- U.S. Offices - Interest-Bearing63,971.1 65,481.9 (1,510.8)(2)%
Total Interest-Bearing Deposits93,332.9 98,591.8 (5,258.9)(5)%
Federal Funds Purchased3,045.4 1,896.9 1,148.5 61 %
Securities Sold under Agreements to Repurchase784.7 567.2 217.5 38 %
Other Borrowings(4)
6,567.8 7,592.3 (1,024.5)(13)%
Senior Notes2,773.2 2,724.2 49.0 2 %
Long-Term Debt4,065.0 2,066.2 1,998.8 97 %
Total Interest-Related Funds110,569.0 113,438.6 (2,869.6)(3)%
Demand and Other Noninterest-Bearing Deposits22,831.1 25,340.3 (2,509.2)(10)%
Other Liabilities5,485.1 4,998.3 486.8 10 %
Total Liabilities138,885.2 143,777.2 (4,892.0)(3)%
Common Equity11,013.0 10,374.6 638.4 6 %
Preferred Equity884.9 884.9 — — %
Total Stockholders' Equity11,897.9 11,259.5 638.4 6 %
Total Liabilities and Stockholders' Equity$150,783.1 $155,036.7 $(4,253.6)(3)%
(1)
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.
(2)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
(5)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
5

Northern Trust Corporation
BALANCE SHEET TRENDS
  PERIOD AVERAGES(1)
($ in Millions)
20222023
20192020202120222023Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$18,511 $27,904 $39,028 $36,249 $31,205 Federal Reserve and Other Central Bank Deposits$45,200 $36,691 $30,549 $32,755 $36,642 $34,380 $28,001 $25,951 
5,997 5,401 5,780 4,193 4,334 
Interest-Bearing Due from and Deposits with Banks(2)
4,384 4,228 3,977 4,186 4,199 4,573 4,301 4,262 
13 2 — 6 6 Federal Funds Sold1 2 5 14 20 3 1 1 
835 1,253 1,067 1,071 951 Securities Purchased under Agreements to Resell692 1,149 1,271 1,166 1,046 1,239 951 573 
Debt Securities:
38,016 40,643 38,987 32,060 24,357 Available For Sale37,496 35,677 28,483 26,742 25,030 24,512 24,431 23,470 
11,650 14,353 20,617 22,970 25,512 Held To Maturity21,308 20,244 25,127 25,135 25,382 25,053 25,919 25,685 
1 1 1 12 1 Trading Account1 — — 46 1 — — — 
49,667 54,997 59,605 55,042 49,869    Total Debt Securities58,805 55,921 53,610 51,924 50,414 49,565 50,350 49,155 
31,053 33,499 37,208 41,031 42,177 Loans and Leases39,544 40,747 41,466 42,329 41,959 42,365 42,210 42,170 
1,034 1,077 1,186 1,248 2,259 
Other Interest-Earning Assets(3)
1,143 1,163 1,269 1,414 1,678 1,990 2,440 2,913 
107,109 124,133 143,873 138,839 130,801 Total Earning Assets149,768 139,902 132,147 133,789 135,957 134,116 128,254 125,025 
(111)(178)(173)(154)(173)Allowance for Credit Losses(152)(156)(154)(155)(162)(177)(170)(183)
2,394 2,603 2,286 2,070 1,772 
Cash and Due From Banks and Other Central Bank Deposits(4)
2,047 2,559 1,903 1,774 1,796 1,843 1,695 1,755 
426 509 503 489 485 Buildings and Equipment495 488 481 491 497 482 474 486 
1,070 1,358 1,530 1,722 559 Client Security Settlement Receivables1,826 1,588 1,667 1,810 1,099 593 350 206 
683 695 707 692 696 Goodwill704 694 686 686 692 697 699 696 
5,981 7,691 7,637 8,894 8,509 Other Assets7,455 9,010 9,673 9,409 8,180 8,346 8,900 8,603 
$117,551 $136,811 $156,363 $152,552 $142,649 Total Assets$162,143 $154,084 $146,402 $147,804 $148,060 $145,900 $140,202 $136,589 
Liabilities and Stockholders' Equity
$16,578 $23,396 $28,339 $30,205 $24,172 Savings, Money Market and Other$32,329 $30,968 $29,089 $28,489 $27,269 $22,961 $22,625 $23,889 
868 1,266 887 1,060 3,341 Savings Certificates and Other Time842 792 986 1,611 2,360 3,036 3,665 4,279 
54,885 60,486 69,713 65,031 60,009 Non- U.S. Offices - Interest-Bearing68,200 63,901 64,057 64,024 62,411 62,046 58,681 56,971 
72,331 85,149 98,940 96,296 87,522 Total Interest-Bearing Deposits101,371 95,661 94,133 94,123 92,040 88,044 84,971 85,139 
1,267 981 191 1,408 5,144 Federal Funds Purchased— 923 1,968 2,705 3,654 7,070 5,936 3,906 
339 218 232 434 402 Securities Sold under Agreements to Repurchase254 597 490 392 347 468 426 365 
7,753 6,401 5,050 5,464 10,340 
Other Borrowings(5)
3,691 4,187 5,991 7,933 11,324 12,133 10,982 6,961 
2,389 3,234 2,856 2,756 2,734 Senior Notes2,442 2,885 2,970 2,722 2,748 2,761 2,713 2,714 
1,139 1,189 1,166 1,259 2,586 Long-Term Debt1,128 1,096 1,088 1,719 2,066 2,070 2,127 4,064 
278 278 218 — — Floating Rate Capital Debt— — — — — — — — 
85,495 97,450 108,653 107,616 108,728 Total Interest-Related Funds108,886 105,348 106,638 109,594 112,179 112,545 107,154 103,148 
17,456 23,362 31,144 29,296 17,723 Demand and Other Noninterest-Bearing Deposits37,129 33,733 24,356 22,186 20,146 17,555 16,793 16,450 
3,952 4,806 4,870 4,558 4,702 Other Liabilities4,616 4,096 4,473 5,044 4,453 4,351 4,718 5,275 
106,903 125,618 144,666 141,471 131,152 Total Liabilities150,632 143,177 135,467 136,824 136,778 134,451 128,665 124,873 
9,705 10,307 10,812 10,197 10,612 Common Equity10,626 10,022 10,051 10,095 10,397 10,564 10,652 10,831 
943 886 885 885 885 Preferred Equity885 885 885 885 885 885 885 885 
10,648 11,193 11,697 11,081 11,497 Total Stockholders' Equity11,511 10,907 10,936 10,979 11,282 11,449 11,537 11,716 
$117,551 $136,811 $156,363 $152,552 $142,649 Total Liabilities and Stockholders' Equity$162,143 $154,084 $146,402 $147,804 $148,060 $145,900 $140,202 $136,589 
(1)
Summations may not equal due to rounding.
(2)
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.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
6

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
20222023
20192020202120222023Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
15.7 %20.4 %25.0 %23.8 %21.9 %Federal Reserve and Other Central Bank Deposits27.9 %23.8 %20.9 %22.2 %24.7 %23.6 %20.0 %19.0 %
5.1 3.9 3.7 2.7 3.0 
Interest-Bearing Due from and Deposits with Banks(2)
2.7 2.7 2.7 2.8 2.8 3.1 3.1 3.1 
— — — — — Federal Funds Sold— — — — — — — — 
0.7 0.9 0.7 0.7 0.7 Securities Purchased under Agreements to Resell0.4 0.7 0.9 0.8 0.7 0.8 0.7 0.4 
Debt Securities:
32.3 29.7 24.9 21.0 17.1 Available For Sale23.1 23.2 19.5 18.1 16.9 16.8 17.4 17.2 
9.9 10.5 13.2 15.1 17.9 Held To Maturity13.1 13.1 17.2 17.0 17.1 17.2 18.5 18.8 
— — — — — Trading Account— — — — — — — — 
42.3 40.2 38.1 36.1 35.0    Total Debt Securities36.3 36.3 36.6 35.1 34.0 34.0 35.9 36.0 
26.4 24.5 23.8 26.9 29.6 Loans and Leases24.4 26.4 28.3 28.6 28.3 29.0 30.1 30.9 
0.9 0.8 0.8 0.8 1.6 
Other Interest-Earning Assets(3)
0.7 0.8 0.9 1.0 1.1 1.4 1.7 2.1 
91.1 90.7 92.0 91.0 91.7 Total Earning Assets92.4 90.8 90.3 90.5 91.8 91.9 91.5 91.5 
(0.1)(0.1)(0.1)(0.1)(0.1)Allowance for Credit Losses(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)
2.0 1.9 1.5 1.4 1.2 
Cash and Due From Banks and Other Central Bank Deposits(4)
1.3 1.7 1.3 1.2 1.2 1.3 1.2 1.3 
0.4 0.4 0.3 0.3 0.3 Buildings and Equipment0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 
0.9 1.0 1.0 1.1 0.4 Client Security Settlement Receivables1.1 1.0 1.1 1.2 0.7 0.4 0.2 0.2 
0.6 0.5 0.5 0.5 0.5 Goodwill0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 
5.1 5.6 4.9 5.8 6.0 Other Assets4.6 5.8 6.6 6.4 5.5 5.7 6.3 6.3 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Liabilities and Stockholders' Equity
14.1 %17.1 %18.1 %19.8 %16.9 %Savings, Money Market and Other19.9 %20.1 %19.9 %19.3 %18.4 %15.7 %16.1 %17.5 %
0.7 0.9 0.6 0.7 2.3 Savings Certificates and Other Time0.5 0.5 0.7 1.1 1.6 2.1 2.6 3.1 
46.7 44.2 44.6 42.6 42.1 Non- U.S. Offices - Interest-Bearing42.1 41.5 43.8 43.3 42.2 42.5 41.9 41.7 
61.5 62.2 63.3 63.1 61.4 Total Interest-Bearing Deposits62.5 62.1 64.3 63.7 62.2 60.3 60.6 62.3 
1.1 0.7 0.1 0.9 3.6 Federal Funds Purchased— 0.6 1.3 1.8 2.5 4.8 4.2 2.9 
0.3 0.2 0.1 0.3 0.3 Securities Sold under Agreements to Repurchase0.2 0.4 0.3 0.3 0.2 0.3 0.3 0.3 
6.6 4.7 3.2 3.6 7.2 
Other Borrowings(5)
2.3 2.7 4.1 5.4 7.6 8.3 7.8 5.1 
2.0 2.4 1.8 1.8 1.9 Senior Notes1.5 1.9 2.0 1.8 1.9 1.9 1.9 2.0 
1.0 0.9 0.7 0.8 1.8 Long-Term Debt0.7 0.7 0.7 1.2 1.4 1.4 1.5 3.0 
0.2 0.2 0.1 — — Floating Rate Capital Debt— — — — — — — — 
72.7 71.2 69.5 70.5 76.2 Total Interest-Related Funds67.2 68.4 72.8 74.1 75.8 77.1 76.4 75.5 
14.8 17.1 19.9 19.2 12.4 Demand and Other Noninterest-Bearing Deposits22.9 21.9 16.6 15.0 13.6 12.0 12.0 12.0 
3.4 3.5 3.1 3.0 3.3 Other Liabilities2.8 2.7 3.1 3.4 3.0 3.0 3.4 3.9 
90.9 91.8 92.5 92.7 91.9 Total Liabilities92.9 92.9 92.5 92.6 92.4 92.2 91.8 91.4 
8.3 7.5 6.9 6.7 7.4 Common Equity6.6 6.5 6.9 6.8 7.0 7.2 7.6 7.9 
0.8 0.6 0.6 0.6 0.6 Preferred Equity0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 
9.1 8.2 7.5 7.3 8.1 Total Stockholders' Equity7.1 7.1 7.5 7.4 7.6 7.8 8.2 8.6 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Liabilities and Stockholders' Equity100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
(1)
Summations may not equal due to rounding.
(2)
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.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

7

Northern Trust Corporation
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES
Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
20222023
20192020202120222023Earnings Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
0.98 %0.10 %0.03 %1.30 %4.69 %Federal Reserve and Other Central Bank Deposits0.16 %0.65 %1.76 %3.15 %4.17 %4.65 %4.99 %5.11 %
1.21 %0.41 %0.16 %1.11 %3.00 %
Interest-Bearing Due from and Deposits with Banks(2)
0.24 %0.62 %1.45 %2.18 %2.72 %2.82 %3.22 %3.25 %
2.73 %1.37 %0.41 %3.22 %4.92 %Federal Funds Sold0.45 %0.75 %2.79 %3.91 %4.79 %5.25 %5.62 %5.63 %
2.10 %0.31 %0.33 %9.68 %166.71 %
Securities Purchased under Agreements to Resell(5)
0.50 %2.47 %9.51 %22.24 %48.80 %92.09 %193.58 %492.23 %
Debt Securities:
2.51 %1.77 %1.28 %1.91 %4.35 %Available for Sale1.30 %1.55 %2.10 %3.02 %3.80 %4.17 %4.51 %4.94 %
0.94 %0.59 %0.80 %1.26 %1.87 %Held to Maturity0.94 %1.11 %1.38 %1.54 %1.64 %1.80 %1.93 %2.13 %
3.29 %3.27 %1.59 %3.84 %13.50 %Trading Account10.09 %5.40 %23.60 %3.54 %7.63 %42.53 %21.15 %5.19 %
2.14 %1.46 %1.11 %1.64 %3.08 %   Total Debt Securities1.17 %1.39 %1.76 %2.30 %2.72 %2.97 %3.18 %3.46 %
3.74 %2.32 %1.92 %3.28 %6.06 %Loans and Leases1.97 %2.53 %3.64 %4.86 %5.60 %6.06 %6.26 %6.32 %
3.56 %3.63 %3.43 %4.03 %4.87 %
Other Interest-Earning Assets(3)
2.69 %4.07 %3.92 %5.14 %4.67 %5.04 %4.65 %5.05 %
2.36 %1.35 %1.00 %2.11 %5.64 %Total Earning Assets1.06 %1.54 %2.44 %3.52 %4.38 %5.23 %6.03 %7.04 %
Interest-Bearing Funds
0.97 %0.20 %0.05 %0.74 %2.85 %Savings, Money Market and Other0.04 %0.24 %0.94 %1.83 %2.35 %2.67 %3.05 %3.40 %
1.86 %1.30 %0.55 %1.68 %4.54 %Savings Certificates and Other Time0.51 %0.58 %1.61 %2.86 %3.70 %4.23 %4.69 %5.10 %
0.57 %(0.03)%(0.11)%0.56 %3.07 %Non- U.S. Offices - Interest-Bearing(0.12)%0.02 %0.65 %1.70 %2.50 %2.90 %3.38 %3.56 %
0.68 %0.06 %(0.06)%0.63 %3.07 %Total Interest-Bearing Deposits(0.06)%0.10 %0.75 %1.76 %2.49 %2.89 %3.35 %3.59 %
2.05 %0.22 %(0.19)%2.43 %4.99 %Federal Funds Purchased0.05 %1.22 %2.00 %3.14 %4.45 %4.97 %5.18 %5.25 %
1.89 %0.47 %0.07 %20.94 %383.84 %
Securities Sold under Agreements to Repurchase(5)
0.49 %4.01 %20.72 %59.59 %135.62 %234.39 %422.85 %759.25 %
2.34 %0.71 %0.28 %2.31 %5.25 %
Other Borrowings(4)
0.35 %0.80 %2.36 %3.95 %4.83 %5.17 %5.59 %5.49 %
3.04 %2.24 %1.69 %3.36 %6.22 %Senior Notes1.59 %2.65 %3.79 %5.18 %5.79 %6.14 %6.44 %6.50 %
3.36 %2.24 %1.81 %3.49 %5.69 %Long-Term Debt1.94 %2.47 %3.41 %5.19 %5.73 %5.89 %5.94 %5.45 %
2.98 %1.52 %0.78 %— %— %Floating Rate Capital Debt— %— %— %— %— %— %— %— %
0.96 %0.21 %0.02 %0.92 %4.91 %Total Interest-Related Funds0.01 %0.25 %1.07 %2.30 %3.34 %4.36 %5.48 %6.60 %
1.40 %1.14 %0.98 %1.19 %0.73 %Net Interest Spread1.05 %1.29 %1.37 %1.22 %1.04 %0.87 %0.55 %0.44 %
1.60 %1.19 %0.99 %1.39 %1.56 %Net Interest Margin1.05 %1.35 %1.58 %1.63 %1.62 %1.57 %1.45 %1.59 %
(1)
Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
(2)
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.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
(5)
Includes the impact of balance sheet netting under master netting arrangements of approximately $51.1 billion for the three months ended December 31, 2023. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 5.46% for the three months ended December 31, 2023. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.38% for the three months ended December 31, 2023. See previous filings for impact of netting on prior periods.
8

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
20222023
201920202021202220231st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$138.2 $124.4 $259.9 $184.7 $200.9 Beginning Allowance for Credit Losses$184.7 $189.9 $199.9 $195.9 $200.9 $213.0 $197.5 $211.8 
— 13.7 — — — 
Cumulative Effect Adjustment(1)
— — — — — — — — 
(14.5)125.0 (81.5)12.0 24.5 Provision for (Release of) Credit Losses2.0 4.5 0.5 5.0 15.0 (15.5)14.0 11.0 
(Charge-offs) Recoveries
(6.5)(9.7)(0.7)(6.0)(8.7)Charge-offs(0.1)— (5.4)(0.5)(4.0)(0.8)(0.8)(3.1)
7.2 6.5 7.0 10.2 3.7 Recoveries3.3 5.5 0.9 0.5 1.1 0.8 1.1 0.7 
0.7 (3.2)6.3 4.2 (5.0)Net (Charge-offs) Recoveries3.2 5.5 (4.5)— (2.9)— 0.3 (2.4)
$124.4 $259.9 $184.7 $200.9 $220.4 Ending Allowance for Credit Losses$189.9 $199.9 $195.9 $200.9 $213.0 $197.5 $211.8 $220.4 
Allowance for Credit Losses Assigned to:
$104.5 $190.7 $138.4 $144.3 $178.7 Loans and Leases$136.3 $138.2 $138.7 $144.3 $159.9 $152.5 $166.8 $178.7 
19.9 61.1 34.1 38.5 26.9 Undrawn Loan Commitments and Standby Letters of Credit37.5 43.5 40.7 38.5 34.3 26.0 28.3 26.9 
— 8.1 12.2 18.1 14.8 Debt Securities and Other Financial Assets16.1 18.2 16.5 18.1 18.8 19.0 16.7 14.8 
$124.4 $259.9 $184.7 $200.9 $220.4 Total Allowance for Credit Losses$189.9 $199.9 $195.9 $200.9 $213.0 $197.5 $211.8 $220.4 
$31,053 $33,499 $37,208 $41,031 $42,177 Average Loans and Leases Outstanding$39,544 $40,747 $41,466 $42,329 $41,959 $42,365 $42,210 $42,170 
— %(0.01)%0.02 %0.01 %(0.01)%Annualized Loan-Related Net (Charge-offs) Recoveries to 0.03 %0.05 %(0.04)%— %(0.03)%— %— %(0.02)%
Average Loans and Leases
$31,410 $33,760 $40,481 $42,893 $47,617 End of Period Loans and Leases Outstanding$39,239 $41,208 $43,992 $42,893 $42,370 $43,547 $43,577 $47,617 
0.33 %0.56 %0.34 %0.34 %0.38 %Allowance for Credit Losses Assigned to Loans0.35 %0.34 %0.32 %0.34 %0.38 %0.35 %0.38 %0.38 %
and Leases to Total Loans and Leases
Nonaccrual Assets
$83.6 $131.7 $122.3 $45.9 $63.6 Nonaccrual Loans and Leases$100.8 $89.7 $76.4 $45.9 $48.9 $47.1 $68.8 $63.6 
3.2 0.7 3.0 — 1.5 Other Real Estate Owned (OREO)0.2 0.1 — — — 0.3 0.3 1.5 
$86.8 $132.4 $125.3 $45.9 $65.1 Total Nonaccrual Assets$101.0 $89.8 $76.4 $45.9 $48.9 $47.4 $69.1 $65.1 
0.28 %0.39 %0.31 %0.11 %0.14 %Nonaccrual Assets to Loans and Leases and OREO0.26 %0.22 %0.17 %0.11 %0.12 %0.11 %0.16 %0.14 %
Loans and Leases Allowance to Nonaccrual
1.3x1.4x1.1x3.1x2.8xLoans and Leases1.4x1.5x1.8x3.1x3.3x3.2x2.4x2.8x
(1)
Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by $13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of tax.
9

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
20222023
20192020202120222023Assets Under Management1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$917.5 $1,057.5 $1,191.0 $898.1 $1,032.0 Asset Servicing$1,091.6 $950.0 $873.7 $898.1 $962.1 $989.8 $963.4 $1,032.0 
Asset allocation:
483.8 551.7 626.6 485.0 563.9 Equities582.8 479.1 444.1 485.0 515.1 535.4 508.7 563.9 
114.6 120.1 132.6 107.1 116.2 Fixed Income Securities122.8 114.8 103.1 107.1 107.3 108.8 109.7 116.2 
156.1 198.8 236.2 157.7 184.5 Cash and Other Assets208.8 186.8 164.4 157.7 171.8 176.8 183.0 184.5 
163.0 186.9 195.6 148.3 167.4 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4 
$313.8 $347.8 $416.1 $351.4 $402.5 Wealth Management$396.2 $352.8 $336.2 $351.4 $368.3 $376.0 $369.9 $402.5 
Asset allocation:
167.0 182.0 229.9 186.3 221.6 Equities218.1 185.0 171.0 186.3 197.0 205.1 197.8 221.6 
79.2 84.7 83.5 79.4 87.2 Fixed Income Securities81.6 80.1 79.5 79.4 80.3 79.9 80.5 87.2 
67.5 81.1 102.7 85.7 93.7 Cash and Other Assets96.5 87.7 85.7 85.7 91.0 91.0 91.6 93.7 
0.1 — — — — Securities Lending Collateral— — — — — — — — 
$1,231.3 $1,405.3 $1,607.1 $1,249.5 $1,434.5 Total Assets Under Management$1,487.8 $1,302.8 $1,209.9 $1,249.5 $1,330.4 $1,365.8 $1,333.3 $1,434.5 
Asset allocation:
$650.8 $733.7 $856.5 $671.3 $785.5 Equities$800.9 $664.1 $615.1 $671.3 $712.1 $740.5 $706.5 $785.5 
193.8 204.8 216.1 186.5 203.4 Fixed Income Securities204.4 194.9 182.6 186.5 187.6 188.7 190.2 203.4 
223.6 279.9 338.9 243.4 278.2 Cash and Other Assets305.3 274.5 250.1 243.4 262.8 267.8 274.6 278.2 
163.1 186.9 195.6 148.3 167.4 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4 
Assets Under Custody / Administration
$11,311.6 $13,653.1 $15,183.2 $12,705.5 $14,362.6 Asset Servicing$14,513.0 $12,812.2 $11,954.0 $12,705.5 $13,221.5 $13,483.5 $13,206.2 $14,362.6 
738.8 879.4 1,065.6 898.5 1,042.3 Wealth Management1,031.1 921.5 868.0 898.5 953.3 995.4 958.5 1,042.3 
$12,050.4 $14,532.5 $16,248.8 $13,604.0 $15,404.9 Total Assets Under Custody / Administration$15,544.1 $13,733.7 $12,822.0 $13,604.0 $14,174.8 $14,478.9 $14,164.7 $15,404.9 
Assets Under Custody
$8,497.8 $10,387.7 $11,554.8 $9,712.3 $10,882.0 Asset Servicing$10,987.5 $9,771.2 $9,125.5 $9,712.3 $10,065.6 $10,295.7 $10,064.4 $10,882.0 
Asset allocation:
3,866.6 4,751.0 5,404.3 4,312.8 5,028.9 Equities5,062.5 4,272.7 3,939.7 4,312.8 4,546.1 4,739.3 4,590.7 5,028.9 
3,102.3 3,742.6 3,997.5 3,252.1 3,600.4 Fixed Income Securities3,768.9 3,378.8 3,157.1 3,252.1 3,366.8 3,394.2 3,316.7 3,600.4 
1,365.9 1,707.2 1,957.4 1,999.1 2,085.3 Cash and Other Assets1,978.9 1,950.4 1,866.6 1,999.1 1,984.8 1,993.4 1,995.0 2,085.3 
163.0 186.9 195.6 148.3 167.4 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4 
$735.7 $875.1 $1,057.5 $892.3 $1,034.5 Wealth Management$1,022.9 $913.0 $860.8 $892.3 $947.6 $989.1 $951.0 $1,034.5 
Asset allocation:
432.0 542.9 644.8 497.9 623.6 Equities615.2 512.8 469.3 497.9 545.0 589.4 550.7 623.6 
134.3 128.3 142.1 134.0 136.7 Fixed Income Securities140.5 135.0 131.6 134.0 134.6 130.5 128.3 136.7 
169.3 203.9 270.6 260.4 274.2 Cash and Other Assets267.2 265.2 259.9 260.4 268.0 269.2 272.0 274.2 
0.1 — — — — Securities Lending Collateral— — — — — — — — 
$9,233.5 $11,262.8 $12,612.3 $10,604.6 $11,916.5 Total Assets Under Custody$12,010.4 $10,684.2 $9,986.3 $10,604.6 $11,013.2 $11,284.8 $11,015.4 $11,916.5 
Asset allocation:
$4,298.6 $5,293.9 $6,049.1 $4,810.7 $5,652.5 Equities$5,677.7 $4,785.5 $4,409.0 $4,810.7 $5,091.1 $5,328.7 $5,141.4 $5,652.5 
3,236.6 3,870.9 4,139.6 3,386.1 3,737.1 Fixed Income Securities3,909.4 3,513.8 3,288.7 3,386.1 3,501.4 3,524.7 3,445.0 3,737.1 
1,535.2 1,911.1 2,228.0 2,259.5 2,359.5 Cash and Other Assets2,246.1 2,215.6 2,126.5 2,259.5 2,252.8 2,262.6 2,267.0 2,359.5 
163.1 186.9 195.6 148.3 167.4 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4 
Memo
$94.2 $114.0 $144.9 $119.9 $144.3 WM Global Family Office AUM$136.6 $121.9 $117.1 $119.9 $126.2 $128.5 $128.9 $144.3 
474.1 600.7 742.6 614.9 728.0 WM Global Family Office AUC720.8 642.2 598.4 614.9 660.0 694.0 663.5 728.0 
10

Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
($ in Millions)
Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-generally accepted accounting principle (GAAP). Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes.

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial measures presented on an FTE basis.
20222023
201920202021202220231st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$2,499.9 $1,643.5 $1,406.5 $2,877.7 $7,325.0 Interest Income - GAAP$383.5 $524.8 $799.3 $1,170.1 $1,455.4 $1,735.0 $1,935.0 $2,199.6 
32.8 34.4 35.6 45.6 57.5 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.113.218.0
2,532.7 1,677.9 1,442.1 2,923.3 7,382.5 Interest Income (FTE) - Non-GAAP390.2 535.9 811.6 1,185.6 1,468.6 1,748.1 1,948.2 2,217.6 
1,677.9 1,443.2 1,382.7 1,887.2 1,982.0 Net Interest Income - GAAP381.0 458.7 513.0 534.5 531.2 511.5456.2483.1
32.8 34.4 35.6 45.6 57.5 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.113.218.0
1,710.7 1,477.6 1,418.3 1,932.8 2,039.5 Net Interest Income (FTE) - Non-GAAP387.7 469.8 525.3 550.0 544.4 524.6469.4501.1
6,073.1 6,100.8 6,464.5 6,761.2 6,773.5 Total Revenue - GAAP1,718.7 1,768.7 1,754.8 1,519.0 1,744.6 1,757.1 1,726.5 1,545.3 
32.8 34.4 35.6 45.6 57.5 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.113.218.0
6,105.9 6,135.2 6,500.1 6,806.8 6,831.0 Total Revenue (FTE) - Non-GAAP1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 1,739.7 1,563.3 
1,944.1 1,627.6 2,010.1 1,766.3 1,464.8 Income before Income Taxes - GAAP510.8 540.6 524.5 190.4 444.0 440.7434.3145.8
32.8 34.4 35.6 45.6 57.5 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.113.218.0
1,976.9 1,662.0 2,045.7 1,811.9 1,522.3 Income before Income Taxes (FTE) - Non-GAAP517.5 551.7 536.8 205.9 457.2 453.8447.5163.8
451.9 418.3 464.8 430.3 357.5 Provision for Income Taxes - GAAP121.5 144.4 129.7 34.7 109.4 108.9106.532.7
32.8 34.4 35.6 45.6 57.5 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.113.218.0
484.7 452.7 500.4 475.9 415.0 Provision for Income Taxes (FTE) - Non-GAAP128.2 155.5 142.0 50.2 122.6 122.0119.750.7
11

Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
RATIOS
Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-generally accepted accounting principle (GAAP). Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes.

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.
20222023
201920202021202220231st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
32.0 %26.7 %31.1 %26.1 %21.6 %
Profit Margin (pre-tax) - GAAP (1)
29.7 %30.6 %29.9 %12.5 %25.4 %25.1 %25.2 %9.4 %
32.4 %27.1 %31.5 %26.6 %22.3 %
Profit Margin (pre-tax) (FTE) - Non-GAAP (1)
30.0 %31.0 %30.4 %13.4 %26.0 %25.6 %25.7 %10.5 %
24.6 %19.8 %23.9 %19.8 %16.3 %
Profit Margin (after-tax) - GAAP (2)
22.7 %22.4 %22.5 %10.2 %19.2 %18.9 %19.0 %7.3 %
24.4 %19.7 %23.8 %19.6 %16.2 %
Profit Margin (after-tax) (FTE) - Non-GAAP (2)
22.6 %22.3 %22.3 %10.1 %19.0 %18.7 %18.8 %7.2 %
23.2 %25.7 %23.1 %24.4 %24.4 %
Effective Tax Rate - GAAP (3)
23.8 %26.7 %24.7 %18.2 %24.6 %24.7 %24.5 %22.4 %
24.5 %27.2 %24.5 %26.3 %27.3 %
Effective Tax Rate (FTE) - Non-GAAP (3)
24.8 %28.2 %26.4 %24.4 %26.8 %26.9 %26.8 %30.9 %
72.4 %76.3 %78.6 %72.1 %70.7 %
Noninterest Income to Total Revenue - GAAP (4)
77.8 %74.1 %70.8 %64.8 %69.5 %70.9 %73.6 %68.7 %
72.0 %75.9 %78.2 %71.6 %70.1 %
Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)
77.5 %73.6 %70.3 %64.2 %69.0 %70.4 %73.0 %67.9 %
63.4 %65.5 %67.5 %65.6 %64.4 %
Trust Fees to Total Revenue - GAAP (5)
68.0 %64.6 %61.5 %68.6 %61.0 %62.4 %64.4 %70.5 %
63.1 %65.1 %67.1 %65.1 %63.9 %
Trust Fees to Total Revenue (FTE) - Non-GAAP (5)
67.7 %64.2 %61.0 %67.9 %60.5 %61.9 %63.9 %69.7 %
1.37 %1.11 %0.96 %1.15 %0.69 %
Net Interest Spread - GAAP (6)
1.03 %1.25 %1.33 %1.17 %1.00 %0.83 %0.51 %0.38 %
1.40 %1.14 %0.98 %1.19 %0.73 %
Net Interest Spread (FTE) - Non-GAAP (6)
1.05 %1.29 %1.37 %1.22 %1.04 %0.87 %0.55 %0.44 %
1.57 %1.16 %0.96 %1.36 %1.52 %
Net Interest Margin - GAAP (7)
1.03 %1.31 %1.54 %1.58 %1.58 %1.53 %1.41 %1.53 %
1.60 %1.19 %0.99 %1.39 %1.56 %
Net Interest Margin (FTE) - Non-GAAP (7)
1.05 %1.35 %1.58 %1.63 %1.62 %1.57 %1.45 %1.59 %
(1)
Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
(2)
Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
(3)
Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
(4)
Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
(5)
Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
(6)
Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
(7)
Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.
12