EX-99.3 4 q22023trendreport-wordrepo.htm EX-99.3

Exhibit 99.3

Financial Trends

Second Quarter 2023

July 19, 2023

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 Second 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.

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TABLE OF CONTENTS
			1						7
			Financial Summary						Balance Sheet Mix Trends
			2						8
			Income Statement						Interest Rate Trends
			3						9
			Net Income Trends						Asset Quality
			4						10
			Fee Detail						Trust Assets
			5						11
			Balance Sheet (EOP)						Reconciliation to FTE
			6						12
			Balance Sheet Trends						Reconciliation to FTE (Ratios)

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Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
																																																2022																								2023
						2018						2019						2020						2021						2022																		1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
																																				Profitability:
						$	1,556.4					$	1,492.2					$	1,209.3					$	1,545.3					$	1,336.0					Net Income												$	389.3					$	396.2					$	394.8					$	155.7					$	334.6					$	331.8
						1,489.9						1,428.9						1,141.0						1,490.6						1,282.4						Earnings Allocated to Common and Potential												370.0						388.3						375.4						148.7						315.2						323.7
																																							Common Shares
						$	6.68					$	6.66					$	5.48					$	7.16					$	6.16					Basic Earnings Per Share												$	1.78					$	1.86					$	1.80					$	0.71					$	1.51					$	1.56
						6.64						6.63						5.46						7.14						6.14						Diluted Earnings Per Share												1.77						1.86						1.80						0.71						1.51						1.56
						35		%				—		%				(18		%)				31		%				(14		%)				Diluted EPS Growth over Previous Year												4		%				8		%				—		%				(63		%)				(15		%)				(16		%)
						16.2		%				14.9		%				11.2		%				13.9		%				12.7		%				Return on Average Common Equity												14.2		%				15.7		%				14.9		%				5.9		%				12.4		%				12.4		%
						1.27		%				1.27		%				0.88		%				0.99		%				0.88		%				Return on Average Assets												0.97		%				1.03		%				1.07		%				0.42		%				0.92		%				0.91		%
						33.3		%				32.4		%				27.1		%				31.5		%				26.6		%				Profit Margin (pre-tax) (FTE)(1)												30.0		%				31.0		%				30.4		%				13.4		%				26.0		%				25.6		%
						25.9		%				24.4		%				19.7		%				23.8		%				19.6		%				Profit Margin (after-tax) (FTE)(1)												22.6		%				22.3		%				22.3		%				10.1		%				19.0		%				18.7		%
						72.3		%				72.0		%				75.9		%				78.2		%				71.6		%				Noninterest Income to Total Revenue (FTE)(1)												77.5		%				73.6		%				70.3		%				64.2		%				69.0		%				70.4		%
						62.5		%				63.1		%				65.1		%				67.1		%				65.1		%				Trust Fees to Total Revenue (FTE)(1)												67.7		%				64.2		%				61.0		%				67.9		%				60.5		%				61.9		%
						20.5		%				23.2		%				25.7		%				23.1		%				24.4		%				Effective Tax Rate (US GAAP)												23.8		%				26.7		%				24.7		%				18.2		%				24.6		%				24.7		%
						22.1		%				24.5		%				27.2		%				24.5		%				26.3		%				Effective Tax Rate (FTE)(1)												24.8		%				28.2		%				26.4		%				24.4		%				26.8		%				26.9		%
																																				Capital Ratios:(2)
																																							Standardized Approach
						12.9		%				12.7		%				12.8		%				11.9		%				10.8		%										Common Equity Tier 1 Capital						11.4		%				10.5		%				10.1		%				10.8		%				11.3		%				11.3		%
						14.1		%				14.5		%				13.9		%				12.9		%				11.8		%										Tier 1 Capital						12.4		%				11.5		%				11.1		%				11.8		%				12.3		%				12.3		%
						16.1		%				16.3		%				15.6		%				14.1		%				13.9		%										Total Capital						13.6		%				12.6		%				12.2		%				13.9		%				14.4		%				14.4		%
						8.0		%				8.7		%				7.6		%				6.9		%				7.1		%										Tier 1 Leverage						6.5		%				6.7		%				7.0		%				7.1		%				7.3		%				7.4		%
																																							Advanced Approach
						13.7		%				13.2		%				13.4		%				13.2		%				11.5		%										Common Equity Tier 1 Capital						12.1		%				11.6		%				11.4		%				11.5		%				11.7		%				13.0		%
						15.0		%				15.0		%				14.5		%				14.3		%				12.5		%										Tier 1 Capital						13.2		%				12.7		%				12.5		%				12.5		%				12.7		%				14.1		%
						16.9		%				16.8		%				15.9		%				15.3		%				14.5		%										Total Capital						14.2		%				13.7		%				13.5		%				14.5		%				14.7		%				16.3		%
						8.0		%				8.7		%				7.6		%				6.9		%				7.1		%										Tier 1 Leverage						6.5		%				6.7		%				7.0		%				7.1		%				7.3		%				7.4		%
						7.0		%				7.6		%				8.6		%				8.2		%				7.9		%										Supplementary Leverage (3) (4)						7.9		%				7.6		%				7.7		%				7.9		%				8.3		%				8.3		%
																																				Per Share Information / Ratios:
						$	1.94					$	2.60					$	2.80					$	2.80					$	2.90					Cash Dividends Declared Per Common Share												$	0.70					$	0.70					$	0.75					$	0.75					$	0.75					$	0.75
						29		%				39		%				51		%				39		%				47		%				Dividend Payout Ratio												40		%				38		%				42		%				106		%				50		%				48		%
						$	83.59					$	106.24					$	93.14					$	119.61					$	88.49					Market Value Per Share (End of Period)												$	116.45					$	96.48					$	85.56					$	88.49					$	88.13					$	74.14
						12.6						16.0						17.1						16.8						14.4						Stock Price Multiple of Earnings												16.2						13.1						11.7						14.4						15.0						13.3
																																				(based on trailing 4 quarters of diluted EPS)
						$	43.95					$	46.82					$	51.87					$	53.58					$	49.78					Book Value Per Common Share (End of Period)												$	50.51					$	48.87					$	48.68					$	49.78					$	51.37					$	51.94
			(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-Q is filed with the Securities and Exchange Commission.
			(3)			Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
			(4)			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.

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Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
																								SECOND QUARTER												CHANGE
																																				2023						2022						$						%
																																	Asset Servicing Trust, Investment and Other Servicing Fees			$	621.2					$	642.7					$	(21.5)					(3)		%
																																	WM Trust, Investment and Other Servicing Fees			475.1						500.7						(25.6)						(5)		%
																																	Total Fees			1,096.3						1,143.4						(47.1)						(4)		%
																																	Foreign Exchange Trading Income			50.1						77.6						(27.5)						(35)		%
																																	Treasury Management Fees			7.9						10.6						(2.7)						(24)		%
																																	Security Commissions and Trading Income			36.1						32.8						3.3						10		%
																																	Other Operating Income			55.2						45.6						9.6						21		%
																																	Investment Security Gains (Losses), net			—						—						—						N/M
																																	Total Noninterest Income			1,245.6						1,310.0						(64.4)						(5)		%
																																	Interest Income (FTE)(1)			1,748.1						535.9						1,212.2						N/M
																																	Interest Expense			1,223.5						66.1						1,157.4						N/M
																																	Net Interest Income (FTE)(1)			524.6						469.8						54.8						12		%
																																	Total Revenue (FTE)(1)			1,770.2						1,779.8						(9.6)						(1)		%
																																	Provision for Credit Losses			(15.5)						4.5						(20.0)						N/M
																																	Compensation			604.5						546.5						58.0						11		%
																																	Employee Benefits			101.4						119.6						(18.2)						(15)		%
																																	Outside Services			230.9						213.1						17.8						8		%
																																	Equipment and Software			229.3						203.5						25.8						13		%
																																	Occupancy			53.8						51.0						2.8						6		%
																																	Other Operating Expense			112.0						89.9						22.1						25		%
																																	Total Noninterest Expense			1,331.9						1,223.6						108.3						9		%
																																	Income before Income Taxes (FTE)(1)			453.8						551.7						(97.9)						(18)		%
																																	Provision for Income Taxes			108.9						144.4						(35.5)						(25)		%
																																	Taxable Equivalent Adjustment			13.1						11.1						2.0						17		%
																																	Total Taxes (FTE)(1)			122.0						155.5						(33.5)						(22)		%
																																	Net Income			$	331.8					$	396.2					$	(64.4)					(16)		%
																																	Dividends on Preferred Stock			$	4.7					$	4.7					$	—					—		%
																																	Earnings Allocated to Participating Securities			3.4						3.2						0.2						6		%
																																	Earnings Allocated to Common and Potential Common Shares			323.7						388.3						(64.6)						(17)		%
																																	Earnings Per Share - Basic			$	1.56					$	1.86					$	(0.30)					(16)		%
																																	Earnings Per Share - Diluted			$	1.56					$	1.86					$	(0.30)					(16)		%
																																	Average Basic Shares (000s)			207,639						208,384
																																	Average Diluted Shares (000s)			207,816						208,878
																																	End of Period Shares Outstanding (000s)			207,004						208,387
																																	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.

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Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
																																													2022																								2023
						2018						2019						2020						2021						2022															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	2,173.1					$	2,211.5					$	2,321.6					$	2,487.3					$	2,496.3					Asset Servicing Trust, Investment and Other Servicing Fees									$	662.4					$	642.7					$	603.2					$	588.0					$	603.0					$	621.2
						1,580.6						1,640.6						1,673.4						1,873.8						1,936.3						WM Trust, Investment and Other Servicing Fees									506.0						500.7						475.5						454.1						460.6						475.1
						3,753.7						3,852.1						3,995.0						4,361.1						4,432.6									Total Fees						1,168.4						1,143.4						1,078.7						1,042.1						1,063.6						1,096.3
						307.2						250.9						290.4						292.6						288.6						Foreign Exchange Trading Income									80.9						77.6						64.7						65.4						53.0						50.1
						51.8						44.5						45.4						44.3						39.3						Treasury Management Fees									11.1						10.6						9.3						8.3						8.4						7.9
						98.3						103.6						133.2						140.2						136.2						Security Commissions and Trading Income									36.2						32.8						32.1						35.1						34.7						36.1
						127.5						145.5						194.0						243.9						191.3						Other Operating Income									41.1						45.6						57.3						47.3						46.8						55.2
						(1.0)						(1.4)						(0.4)						(0.3)						(214.0)						Investment Security Gains (Losses), net									—						—						(0.3)						(213.7)						6.9						—
						4,337.5						4,395.2						4,657.6						5,081.8						4,874.0									Total Noninterest Income						1,337.7						1,310.0						1,241.8						984.5						1,213.4						1,245.6
						1,663.9						1,710.7						1,477.6						1,418.3						1,932.8						Net Interest Income (FTE)(1)									387.7						469.8						525.3						550.0						544.4						524.6
						6,001.4						6,105.9						6,135.2						6,500.1						6,806.8									Total Revenue (FTE)(1)						1,725.4						1,779.8						1,767.1						1,534.5						1,757.8						1,770.2
						(14.5)						(14.5)						125.0						(81.5)						12.0						Provision for Credit Losses									2.0						4.5						0.5						5.0						15.0						(15.5)
						1,806.9						1,859.0						1,947.1						2,011.0						2,248.0						Compensation									563.9						546.5						553.3						584.3						595.2						604.5
						356.7						355.2						387.7						431.4						437.4						Employee Benefits									104.3						119.6						109.9						103.6						101.0						101.4
						739.4						774.5						763.1						849.4						880.3						Outside Services									213.4						213.1						220.9						232.9						210.8						230.9
						582.2						612.1						673.5						736.3						838.8						Equipment and Software									193.5						203.5						212.4						229.4						231.7						229.3
						201.1						212.9						230.1						208.7						219.1						Occupancy									51.1						51.0						51.3						65.7						61.3						53.8
						330.6						329.8						346.7						299.1						359.3						Other Operating Expense									79.7						89.9						82.0						107.7						85.6						112.0
						4,016.9						4,143.5						4,348.2						4,535.9						4,982.9									Total Noninterest Expense						1,205.9						1,223.6						1,229.8						1,323.6						1,285.6						1,331.9
						1,999.0						1,976.9						1,662.0						2,045.7						1,811.9									Income before Income Taxes (FTE)(1)						517.5						551.7						536.8						205.9						457.2						453.8
						401.4						451.9						418.3						464.8						430.3						Provision for Income Taxes									121.5						144.4						129.7						34.7						109.4						108.9
						41.2						32.8						34.4						35.6						45.6						Taxable Equivalent Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
						442.6						484.7						452.7						500.4						475.9									Total Taxes (FTE)(1)						128.2						155.5						142.0						50.2						122.6						122.0
						$	1,556.4					$	1,492.2					$	1,209.3					$	1,545.3					$	1,336.0								Net Income						$	389.3					$	396.2					$	394.8					$	155.7					$	334.6					$	331.8
						$	6.68					$	6.66					$	5.48					$	7.16					$	6.16					Earnings Per Share - Basic									$	1.78					$	1.86					$	1.80					$	0.71					$	1.51					$	1.56
						6.64						6.63						5.46						7.14						6.14						Earnings Per Share - Diluted									1.77						1.86						1.80						0.71						1.51						1.56
						224,488						215,601						209,008						208,899						208,867						Average Diluted Shares (000s)									208,809						208,878						208,889						208,894						208,730						207,816
						$	46.4					$	46.4					$	56.2					$	41.8					$	41.8					Preferred Dividends(2)									$	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.

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Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
																																										2022																								2023
						2018						2019						2020						2021						2022						Asset Servicing						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	1,501.1					$	1,549.3					$	1,586.1					$	1,818.8					$	1,700.1					Custody & Fund Administration						$	452.7					$	433.8					$	407.3					$	406.3					$	413.6					$	427.4
						436.8						445.7						511.1						443.5						555.1						Investment Management						146.9						148.4						136.0						123.8						126.2						134.1
						102.0						87.2						88.0						76.7						81.4						Securities Lending						18.8						21.6						21.7						19.3						19.1						21.5
						133.2						129.3						136.4						148.3						159.7						Other						44.0						38.9						38.2						38.6						44.1						38.2
						$	2,173.1					$	2,211.5					$	2,321.6					$	2,487.3					$	2,496.3								Total Asset Servicing Trust, Investment and Other Servicing Fees			$	662.4					$	642.7					$	603.2					$	588.0					$	603.0					$	621.2
																																				Wealth Management
						$	607.8					$	619.3					$	607.3					$	698.7					$	692.6					Central						$	181.7					$	177.4					$	171.3					$	162.2					$	163.6					$	166.0
						401.7						422.2						442.1						509.3						504.0						East						134.0						128.1						124.1						117.8						119.8						124.1
						320.0						330.9						337.7						380.2						382.1						West						101.4						98.7						92.5						89.5						91.2						93.7
						251.1						268.2						286.3						285.6						357.6						Global Family Office						88.9						96.5						87.6						84.6						86.0						91.3
						$	1,580.6					$	1,640.6					$	1,673.4					$	1,873.8					$	1,936.3								Total WM Trust, Investment and Other Servicing Fees			$	506.0					$	500.7					$	475.5					$	454.1					$	460.6					$	475.1

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Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
																																	CHANGE
						Assets															6/30/2023						6/30/2022						$						%
									Federal Reserve and Other Central Bank Deposits												$	42,675.1					$	37,867.5					$	4,807.6					13		%
									Interest-Bearing Due from and Deposits with Banks(1)												4,625.8						5,354.6						(728.8)						(14)		%
									Federal Funds Sold												—						10.0						(10.0)						N/M
									Securities Purchased under Agreements to Resell												1,228.9						1,171.8						57.1						5		%
									Debt Securities:
												Available For Sale									24,264.4						35,017.9						(10,753.5)						(31)		%
												Held To Maturity									26,006.3						20,112.6						5,893.7						29		%
												Trading Account									0.1						0.4						(0.3)						(86)		%
												Total Debt Securities									50,270.8						55,130.9						(4,860.1)						(9)		%
									Loans and Leases												43,546.7						41,207.8						2,338.9						6		%
									Other Interest-Earning Assets(2)												2,694.8						1,442.1						1,252.7						87		%
												Total Earning Assets									145,042.1						142,184.7						2,857.4						2		%
									Allowance for Credit Losses												(170.2)						(154.7)						(15.5)						10		%
									Cash and Due From Banks and Other Central Bank Deposits(3)												1,803.7						2,357.6						(553.9)						(23)		%
									Buildings and Equipment												473.6						476.6						(3.0)						(1)		%
									Client Security Settlement Receivables												431.3						2,284.7						(1,853.4)						(81)		%
									Goodwill												698.8						690.0						8.8						1		%
									Other Assets												8,473.2						9,947.4						(1,474.2)						(15)		%
												Total Assets									$	156,752.5					$	157,786.3					$	(1,033.8)					(1)		%
						Liabilities and Stockholders' Equity
									Savings, Money Market and Other												$	23,535.5					$	30,857.0					$	(7,321.5)					(24)		%
									Savings Certificates and Other Time												3,327.0						785.0						2,542.0						N/M
									Non- U.S. Offices - Interest-Bearing												65,014.7						69,951.1						(4,936.4)						(7)		%
												Total Interest-Bearing Deposits									91,877.2						101,593.1						(9,715.9)						(10)		%
									Federal Funds Purchased												9,344.5						389.2						8,955.3						N/M
									Securities Sold under Agreements to Repurchase												988.1						799.4						188.7						24		%
									Other Borrowings(4)												12,382.0						3,514.9						8,867.1						N/M
									Senior Notes												2,729.5						3,305.8						(576.3)						(17)		%
									Long-Term Debt												2,061.5						1,094.1						967.4						88		%
												Total Interest-Related Funds									119,382.8						110,696.5						8,686.3						8		%
									Demand and Other Noninterest-Bearing Deposits												21,326.4						32,081.5						(10,755.1)						(34)		%
									Other Liabilities												4,407.6						3,938.6						469.0						12		%
												Total Liabilities									145,116.8						146,716.6						(1,599.8)						(1)		%
									Common Equity												10,750.8						10,184.8						566.0						6		%
									Preferred Equity												884.9						884.9						—						—		%
												Total Stockholders' Equity									11,635.7						11,069.7						566.0						5		%
												Total Liabilities and Stockholders' Equity									$	156,752.5					$	157,786.3					$	(1,033.8)					(1)		%
						(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

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Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
($ in Millions)
																																																2022																								2023
						2018						2019						2020						2021						2022						Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	23,899					$	18,511					$	27,904					$	39,028					$	36,249								Federal Reserve and Other Central Bank Deposits									$	45,200					$	36,691					$	30,549					$	32,755					$	36,642					$	34,380
						6,023						5,997						5,401						5,780						4,193									Interest-Bearing Due from and Deposits with Banks(2)									4,384						4,228						3,977						4,186						4,199						4,573
						21						13						2						—						6									Federal Funds Sold									1						2						5						14						20						3
						1,478						835						1,253						1,067						1,071									Securities Purchased under Agreements to Resell									692						1,149						1,271						1,166						1,046						1,239
																																							Debt Securities:
						35,240						38,016						40,643						38,987						32,060												Available For Sale						37,496						35,677						28,483						26,742						25,030						24,512
						14,258						11,650						14,353						20,617						22,970												Held To Maturity						21,308						20,244						25,127						25,135						25,382						25,053
						1						1						1						1						12												Trading Account						1						—						—						46						1						—
						49,499						49,667						54,997						59,605						55,042												Total Debt Securities						58,805						55,921						53,610						51,924						50,414						49,565
						32,029						31,053						33,499						37,208						41,031									Loans and Leases									39,544						40,747						41,466						42,329						41,959						42,365
						783						1,034						1,077						1,186						1,248									Other Interest-Earning Assets(3)									1,143						1,163						1,269						1,414						1,678						1,990
						113,731						107,109						124,133						143,873						138,839												Total Earning Assets						149,768						139,902						132,147						133,789						135,957						134,116
						(126)						(111)						(178)						(173)						(154)									Allowance for Credit Losses									(152)						(156)						(154)						(155)						(162)						(177)
						2,534						2,394						2,603						2,286						2,070									Cash and Due From Banks and Other Central Bank Deposits(4)									2,047						2,559						1,903						1,774						1,796						1,843
						439						426						509						503						489									Buildings and Equipment									495						488						481						491						497						482
						1,002						1,070						1,358						1,530						1,722									Client Security Settlement Receivables									1,826						1,588						1,667						1,810						1,099						593
						643						683						695						707						692									Goodwill									704						694						686						686						692						697
						4,725						5,981						7,691						7,637						8,894									Other Assets									7,455						9,010						9,673						9,409						8,180						8,346
						$	122,947					$	117,551					$	136,811					$	156,363					$	152,552											Total Assets						$	162,143					$	154,084					$	146,402					$	147,804					$	148,060					$	145,900
																																				Liabilities and Stockholders' Equity
						$	15,149					$	16,578					$	23,396					$	28,339					$	30,205								Savings, Money Market and Other									$	32,329					$	30,968					$	29,089					$	28,489					$	27,269					$	22,961
						871						868						1,266						887						1,060									Savings Certificates and Other Time									842						792						986						1,611						2,360						3,036
						58,557						54,885						60,486						69,713						65,031									Non- U.S. Offices - Interest-Bearing									68,200						63,901						64,057						64,024						62,411						62,046
						74,577						72,331						85,149						98,940						96,296												Total Interest-Bearing Deposits						101,371						95,661						94,133						94,123						92,040						88,044
						2,763						1,267						981						191						1,408									Federal Funds Purchased									—						923						1,968						2,705						3,654						7,070
						525						339						218						232						434									Securities Sold under Agreements to Repurchase									254						597						490						392						347						468
						7,496						7,753						6,401						5,050						5,464									Other Borrowings(5)									3,691						4,187						5,991						7,933						11,324						12,133
						1,704						2,389						3,234						2,856						2,756									Senior Notes									2,442						2,885						2,970						2,722						2,748						2,761
						1,297						1,139						1,189						1,166						1,259									Long-Term Debt									1,128						1,096						1,088						1,719						2,066						2,070
						278						278						278						218						—									Floating Rate Capital Debt									—						—						—						—						—						—
						88,638						85,495						97,450						108,653						107,616												Total Interest-Related Funds						108,886						105,348						106,638						109,594						112,179						112,545
						20,527						17,456						23,362						31,144						29,296									Demand and Other Noninterest-Bearing Deposits									37,129						33,733						24,356						22,186						20,146						17,555
						3,553						3,952						4,806						4,870						4,558									Other Liabilities									4,616						4,096						4,473						5,044						4,453						4,351
						112,718						106,903						125,618						144,666						141,471												Total Liabilities						150,632						143,177						135,467						136,824						136,778						134,451
						9,347						9,705						10,307						10,812						10,197									Common Equity									10,626						10,022						10,051						10,095						10,397						10,564
						882						943						886						885						885									Preferred Equity									885						885						885						885						885						885
						10,229						10,648						11,193						11,697						11,081												Total Stockholders' Equity						11,511						10,907						10,936						10,979						11,282						11,449
						$	122,947					$	117,551					$	136,811					$	156,363					$	152,552											Total Liabilities and Stockholders' Equity						$	162,143					$	154,084					$	146,402					$	147,804					$	148,060					$	145,900
(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

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Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
																																																2022																								2023
						2018						2019						2020						2021						2022			Assets															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						19.4		%				15.7		%				20.4		%				25.0		%				23.8		%				Federal Reserve and Other Central Bank Deposits												27.9		%				23.8		%				20.9		%				22.2		%				24.7		%				23.6		%
						4.9						5.1						3.9						3.7						2.7						Interest-Bearing Due from and Deposits with Banks(2)												2.7						2.7						2.7						2.8						2.8						3.1
						—						—						—						—						—						Federal Funds Sold												—						—						—						—						—						—
						1.2						0.7						0.9						0.7						0.7						Securities Purchased under Agreements to Resell												0.4						0.7						0.9						0.8						0.7						0.8
																																				Debt Securities:
						28.7						32.3						29.7						24.9						21.0									Available For Sale									23.1						23.2						19.5						18.1						16.9						16.8
						11.6						9.9						10.5						13.2						15.1									Held To Maturity									13.1						13.1						17.2						17.0						17.1						17.2
						—						—						—						—						—									Trading Account									—						—						—						—						—						—
						40.3						42.3						40.2						38.1						36.1									Total Debt Securities									36.3						36.3						36.6						35.1						34.0						34.0
						26.1						26.4						24.5						23.8						26.9						Loans and Leases												24.4						26.4						28.3						28.6						28.3						29.0
						0.6						0.9						0.8						0.8						0.8						Other Interest-Earning Assets(3)												0.7						0.8						0.9						1.0						1.1						1.4
						92.5						91.1						90.7						92.0						91.0									Total Earning Assets									92.4						90.8						90.3						90.5						91.8						91.9
						(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)
						2.1						2.0						1.9						1.5						1.4						Cash and Due From Banks and Other Central Bank Deposits(4)												1.3						1.7						1.3						1.2						1.2						1.3
						0.4						0.4						0.4						0.3						0.3						Buildings and Equipment												0.3						0.3						0.3						0.3						0.3						0.3
						0.8						0.9						1.0						1.0						1.1						Client Security Settlement Receivables												1.1						1.0						1.1						1.2						0.7						0.4
						0.5						0.6						0.5						0.5						0.5						Goodwill												0.4						0.5						0.5						0.5						0.5						0.5
						3.8						5.1						5.6						4.9						5.8						Other Assets												4.6						5.8						6.6						6.4						5.5						5.7
						100.0		%				100.0		%				100.0		%				100.0		%				100.0		%							Total Assets									100.0		%				100.0		%				100.0		%				100.0		%				100.0		%				100.0		%
																																	Liabilities and Stockholders' Equity
						12.3		%				14.1		%				17.1		%				18.1		%				19.8		%				Savings, Money Market and Other												19.9		%				20.1		%				19.9		%				19.3		%				18.4		%				15.7		%
						0.7						0.7						0.9						0.6						0.7						Savings Certificates and Other Time												0.5						0.5						0.7						1.1						1.6						2.1
						47.6						46.7						44.2						44.6						42.6						Non- U.S. Offices - Interest-Bearing												42.1						41.5						43.8						43.3						42.2						42.5
						60.7						61.5						62.2						63.3						63.1									Total Interest-Bearing Deposits									62.5						62.1						64.3						63.7						62.2						60.3
						2.2						1.1						0.7						0.1						0.9						Federal Funds Purchased												—						0.6						1.3						1.8						2.5						4.8
						0.4						0.3						0.2						0.1						0.3						Securities Sold under Agreements to Repurchase												0.2						0.4						0.3						0.3						0.2						0.3
						6.1						6.6						4.7						3.2						3.6						Other Borrowings(5)												2.3						2.7						4.1						5.4						7.6						8.3
						1.4						2.0						2.4						1.8						1.8						Senior Notes												1.5						1.9						2.0						1.8						1.9						1.9
						1.1						1.0						0.9						0.7						0.8						Long-Term Debt												0.7						0.7						0.7						1.2						1.4						1.4
						0.2						0.2						0.2						0.1						—						Floating Rate Capital Debt												—						—						—						—						—						—
						72.1						72.7						71.2						69.5						70.5									Total Interest-Related Funds									67.2						68.4						72.8						74.1						75.8						77.1
						16.7						14.8						17.1						19.9						19.2						Demand and Other Noninterest-Bearing Deposits												22.9						21.9						16.6						15.0						13.6						12.0
						2.9						3.4						3.5						3.1						3.0						Other Liabilities												2.8						2.7						3.1						3.4						3.0						3.0
						91.7						90.9						91.8						92.5						92.7									Total Liabilities									92.9						92.9						92.5						92.6						92.4						92.2
						7.6						8.3						7.5						6.9						6.7						Common Equity												6.6						6.5						6.9						6.8						7.0						7.2
						0.7						0.8						0.6						0.6						0.6						Preferred Equity												0.5						0.6						0.6						0.6						0.6						0.6
						8.3						9.1						8.2						7.5						7.3									Total Stockholders' Equity									7.1						7.1						7.5						7.4						7.6						7.8
						100.0		%				100.0		%				100.0		%				100.0		%				100.0		%							Total Liabilities and Stockholders' Equity									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

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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).
																																																2022																								2023
						2018						2019						2020						2021						2022						Earnings Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						0.87		%				0.98		%				0.10		%				0.03		%				1.30		%							Federal Reserve and Other Central Bank Deposits									0.16		%				0.65		%				1.76		%				3.15		%				4.17		%				4.65		%
						1.16		%				1.21		%				0.41		%				0.16		%				1.11		%							Interest-Bearing Due from and Deposits with Banks(2)									0.24		%				0.62		%				1.45		%				2.18		%				2.72		%				2.82		%
						2.18		%				2.73		%				1.37		%				0.41		%				3.22		%							Federal Funds Sold									0.45		%				0.75		%				2.79		%				3.91		%				4.79		%				5.25		%
						2.22		%				2.10		%				0.31		%				0.33		%				9.68		%							Securities Purchased under Agreements to Resell(4)									0.50		%				2.47		%				9.51		%				22.24		%				48.80		%				92.09		%
																																							Debt Securities:
						2.13		%				2.51		%				1.77		%				1.28		%				1.91		%										Available for Sale						1.30		%				1.55		%				2.10		%				3.02		%				3.80		%				4.17		%
						1.08		%				0.94		%				0.59		%				0.80		%				1.26		%										Held to Maturity						0.94		%				1.11		%				1.38		%				1.54		%				1.64		%				1.80		%
						6.19		%				3.29		%				3.27		%				1.59		%				3.84		%										Trading Account						10.09		%				5.40		%				23.60		%				3.54		%				7.63		%				42.53		%
						1.83		%				2.14		%				1.46		%				1.11		%				1.64		%										Total Debt Securities						1.17		%				1.39		%				1.76		%				2.30		%				2.72		%				2.97		%
						3.45		%				3.74		%				2.32		%				1.92		%				3.28		%							Loans and Leases									1.97		%				2.53		%				3.64		%				4.86		%				5.60		%				6.06		%
						5.01		%				3.56		%				3.63		%				3.43		%				4.03		%							Other Interest-Earning Assets(3)									2.69		%				4.07		%				3.92		%				5.14		%				4.67		%				5.04		%
						2.08		%				2.36		%				1.35		%				1.00		%				2.11		%										Total Earning Assets						1.06		%				1.54		%				2.44		%				3.52		%				4.38		%				5.23		%
																																				Interest-Bearing Funds
						0.54		%				0.97		%				0.20		%				0.05		%				0.74		%							Savings, Money Market and Other									0.04		%				0.24		%				0.94		%				1.83		%				2.35		%				2.67		%
						0.90		%				1.86		%				1.30		%				0.55		%				1.68		%							Savings Certificates and Other Time									0.51		%				0.58		%				1.61		%				2.86		%				3.70		%				4.23		%
						0.50		%				0.57		%				(0.03)		%				(0.11)		%				0.56		%							Non- U.S. Offices - Interest-Bearing									(0.12)		%				0.02		%				0.65		%				1.70		%				2.50		%				2.90		%
						0.52		%				0.68		%				0.06		%				(0.06)		%				0.63		%										Total Interest-Bearing Deposits						(0.06)		%				0.10		%				0.75		%				1.76		%				2.49		%				2.89		%
						1.82		%				2.05		%				0.22		%				(0.19)		%				2.43		%							Federal Funds Purchased									0.05		%				1.22		%				2.00		%				3.14		%				4.45		%				4.97		%
						1.48		%				1.89		%				0.47		%				0.07		%				20.94		%							Securities Sold under Agreements to Repurchase(4)									0.49		%				4.01		%				20.72		%				59.59		%				135.62		%				234.39		%
						2.00		%				2.34		%				0.71		%				0.28		%				2.31		%							Other Borrowings									0.35		%				0.80		%				2.36		%				3.95		%				4.83		%				5.17		%
						3.13		%				3.04		%				2.24		%				1.69		%				3.36		%							Senior Notes									1.59		%				2.65		%				3.79		%				5.18		%				5.79		%				6.14		%
						3.47		%				3.36		%				2.24		%				1.81		%				3.49		%							Long-Term Debt									1.94		%				2.47		%				3.41		%				5.19		%				5.73		%				5.89		%
						2.72		%				2.98		%				1.52		%				0.78		%				—		%							Floating Rate Capital Debt									—		%				—		%				—		%				—		%				—		%				—		%
						0.79		%				0.96		%				0.21		%				0.02		%				0.92		%										Total Interest-Related Funds						0.01		%				0.25		%				1.07		%				2.30		%				3.34		%				4.36		%
						1.29		%				1.40		%				1.14		%				0.98		%				1.19		%							Net Interest Spread									1.05		%				1.29		%				1.37		%				1.22		%				1.04		%				0.87		%
						1.46		%				1.60		%				1.19		%				0.99		%				1.39		%							Net Interest Margin									1.05		%				1.35		%				1.58		%				1.63		%				1.62		%				1.57		%
			(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)			Includes the impact of balance sheet netting under master netting arrangements of approximately $21.3 billion for the three months ended June 30, 2023 and $15.7 billion for the six months ended June 30, 2023 . Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 5.06% for the three months ended June 30, 2023 and 4.92% for the six months ended June 30, 2023. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.04% for the three months ended June 30, 2023 and 4.88% for the six months ended June 30, 2023.

8

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Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
																																																			2022																								2023
						2018						2019						2020						2021						2022																					1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	153.8					$	138.2					$	124.4					$	259.9					$	184.7					Beginning Allowance for Credit Losses															$	184.7					$	189.9					$	199.9					$	195.9					$	200.9					$	213.0
						—						—						13.7						—						—						Cumulative Effect Adjustment(1)															—						—						—						—						—						—
						(14.5)						(14.5)						125.0						(81.5)						12.0						Provision for Credit Losses															2.0						4.5						0.5						5.0						15.0						(15.5)
																																				(Charge-offs) Recoveries
						(10.1)						(6.5)						(9.7)						(0.7)						(6.0)									Charge-offs												(0.1)						—						(5.4)						(0.5)						(4.0)						(0.8)
						9.0						7.2						6.5						7.0						10.2									Recoveries												3.3						5.5						0.9						0.5						1.1						0.8
						(1.1)						0.7						(3.2)						6.3						4.2												Net (Charge-offs) Recoveries									3.2						5.5						(4.5)						—						(2.9)						—
						$	138.2					$	124.4					$	259.9					$	184.7					$	200.9														Ending Allowance for Credit Losses						$	189.9					$	199.9					$	195.9					$	200.9					$	213.0					$	197.5
																																				Allowance for Credit Losses Assigned to:
						$	112.6					$	104.5					$	190.7					$	138.4					$	144.3								Loans and Leases												$	136.3					$	138.2					$	138.7					$	144.3					$	159.9					$	152.5
						25.6						19.9						61.1						34.1						38.5									Undrawn Loan Commitments and Standby Letters of Credit												37.5						43.5						40.7						38.5						34.3						26.0
						—						—						8.1						12.2						18.1									Debt Securities and Other Financial Assets												16.1						18.2						16.5						18.1						18.8						19.0
						$	138.2					$	124.4					$	259.9					$	184.7					$	200.9											Total Allowance for Credit Losses									$	189.9					$	199.9					$	195.9					$	200.9					$	213.0					$	197.5
						$	32,029					$	31,053					$	33,499					$	37,208					$	41,031					Average Loans and Leases Outstanding															$	39,544					$	40,747					$	41,466					$	42,329					$	41,959					$	42,365
						—		%				—		%				(0.01)		%				0.02		%				0.01		%				Annualized Loan-Related Net (Charge-offs) Recoveries to															0.03		%				0.05		%				(0.04)		%				—		%				(0.03)		%				—		%
																																							Average Loans and Leases
						$	32,490					$	31,410					$	33,760					$	40,481					$	42,893					End of Period Loans and Leases Outstanding															$	39,239					$	41,208					$	43,992					$	42,893					$	42,370					$	43,547
						0.35		%				0.33		%				0.56		%				0.34		%				0.34		%				Allowance for Credit Losses Assigned to Loans															0.35		%				0.34		%				0.32		%				0.34		%				0.38		%				0.35		%
																																							and Leases to Total Loans and Leases
																																				Nonaccrual Assets
						$	109.3					$	83.6					$	131.7					$	122.3					$	45.9								Nonaccrual Loans and Leases												$	100.8					$	89.7					$	76.4					$	45.9					$	48.9					$	47.1
						8.4						3.2						0.7						3.0						—									Other Real Estate Owned (OREO)												0.2						0.1						—						—						—						0.3
						$	117.7					$	86.8					$	132.4					$	125.3					$	45.9											Total Nonaccrual Assets									$	101.0					$	89.8					$	76.4					$	45.9					$	48.9					$	47.4
						0.36		%				0.28		%				0.39		%				0.31		%				0.11		%				Nonaccrual Assets to Loans and Leases and OREO															0.26		%				0.22		%				0.17		%				0.11		%				0.12		%				0.11		%
																																				Loans and Leases Allowance to Nonaccrual
						1.0x						1.3x						1.4x						1.1x						3.1x									Loans and Leases												1.4x						1.5x						1.8x						3.1x						3.3x						3.2x
			(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

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Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
																																																2022																								2023
						2018						2019						2020						2021						2022						Assets Under Management												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	790.8					$	917.5					$	1,057.5					$	1,191.0					$	898.1					Asset Servicing												$	1,091.6					$	950.0					$	873.7					$	898.1					$	962.1					$	989.8
																																							Asset allocation:
						403.3						483.8						551.7						626.6						485.0												Equities						582.8						479.1						444.1						485.0						515.1						535.4
						105.3						114.6						120.1						132.6						107.1												Fixed Income Securities						122.8						114.8						103.1						107.1						107.3						108.8
						132.4						156.1						198.8						236.2						157.7												Cash and Other Assets						208.8						186.8						164.4						157.7						171.8						176.8
						149.8						163.0						186.9						195.6						148.3												Securities Lending Collateral						177.2						169.3						162.1						148.3						167.9						168.8
						$	278.6					$	313.8					$	347.8					$	416.1					$	351.4					Wealth Management												$	396.2					$	352.8					$	336.2					$	351.4					$	368.3					$	376.0
																																							Asset allocation:
						130.9						167.0						182.0						229.9						186.3												Equities						218.1						185.0						171.0						186.3						197.0						205.1
						73.0						79.2						84.7						83.5						79.4												Fixed Income Securities						81.6						80.1						79.5						79.4						80.3						79.9
						74.6						67.5						81.1						102.7						85.7												Cash and Other Assets						96.5						87.7						85.7						85.7						91.0						91.0
						0.1						0.1						—						—						—												Securities Lending Collateral						—						—						—						—						—						—
						$	1,069.4					$	1,231.3					$	1,405.3					$	1,607.1					$	1,249.5					Total Assets Under Management												$	1,487.8					$	1,302.8					$	1,209.9					$	1,249.5					$	1,330.4					$	1,365.8
																																							Asset allocation:
						$	534.2					$	650.8					$	733.7					$	856.5					$	671.3											Equities						$	800.9					$	664.1					$	615.1					$	671.3					$	712.1					$	740.5
						178.3						193.8						204.8						216.1						186.5												Fixed Income Securities						204.4						194.9						182.6						186.5						187.6						188.7
						207.0						223.6						279.9						338.9						243.4												Cash and Other Assets						305.3						274.5						250.1						243.4						262.8						267.8
						149.9						163.1						186.9						195.6						148.3												Securities Lending Collateral						177.2						169.3						162.1						148.3						167.9						168.8
																																				Assets Under Custody / Administration
						$	9,490.5					$	11,311.6					$	13,653.1					$	15,183.2					$	12,705.5								Asset Servicing									$	14,513.0					$	12,812.2					$	11,954.0					$	12,705.5					$	13,221.5					$	13,483.5
						634.8						738.8						879.4						1,065.6						898.5									Wealth Management									1,031.1						921.5						868.0						898.5						953.3						995.4
						$	10,125.3					$	12,050.4					$	14,532.5					$	16,248.8					$	13,604.0					Total Assets Under Custody / Administration												$	15,544.1					$	13,733.7					$	12,822.0					$	13,604.0					$	14,174.8					$	14,478.9
																																				Assets Under Custody
						$	6,971.0					$	8,497.8					$	10,387.7					$	11,554.8					$	9,712.3					Asset Servicing												$	10,987.5					$	9,771.2					$	9,125.5					$	9,712.3					$	10,065.6					$	10,295.7
																																							Asset allocation:
						3,043.0						3,866.6						4,751.0						5,404.3						4,312.8												Equities						5,062.5						4,272.7						3,939.7						4,312.8						4,546.1						4,739.3
						2,700.2						3,102.3						3,742.6						3,997.5						3,252.1												Fixed Income Securities						3,768.9						3,378.8						3,157.1						3,252.1						3,366.8						3,394.2
						1,078.0						1,365.9						1,707.2						1,957.4						1,999.1												Cash and Other Assets						1,978.9						1,950.4						1,866.6						1,999.1						1,984.8						1,993.4
						149.8						163.0						186.9						195.6						148.3												Securities Lending Collateral						177.2						169.3						162.1						148.3						167.9						168.8
						$	622.9					$	735.7					$	875.1					$	1,057.5					$	892.3					Wealth Management												$	1,022.9					$	913.0					$	860.8					$	892.3					$	947.6					$	989.1
																																							Asset allocation:
						336.5						432.0						542.9						644.8						497.9												Equities						615.2						512.8						469.3						497.9						545.0						589.4
						122.2						134.3						128.3						142.1						134.0												Fixed Income Securities						140.5						135.0						131.6						134.0						134.6						130.5
						164.1						169.3						203.9						270.6						260.4												Cash and Other Assets						267.2						265.2						259.9						260.4						268.0						269.2
						0.1						0.1						—						—						—												Securities Lending Collateral						—						—						—						—						—						—
						$	7,593.9					$	9,233.5					$	11,262.8					$	12,612.3					$	10,604.6					Total Assets Under Custody												$	12,010.4					$	10,684.2					$	9,986.3					$	10,604.6					$	11,013.2					$	11,284.8
																																							Asset allocation:
						$	3,379.5					$	4,298.6					$	5,293.9					$	6,049.1					$	4,810.7											Equities						$	5,677.7					$	4,785.5					$	4,409.0					$	4,810.7					$	5,091.1					$	5,328.7
						2,822.4						3,236.6						3,870.9						4,139.6						3,386.1												Fixed Income Securities						3,909.4						3,513.8						3,288.7						3,386.1						3,501.4						3,524.7
						1,242.1						1,535.2						1,911.1						2,228.0						2,259.5												Cash and Other Assets						2,246.1						2,215.6						2,126.5						2,259.5						2,252.8						2,262.6
						149.9						163.1						186.9						195.6						148.3												Securities Lending Collateral						177.2						169.3						162.1						148.3						167.9						168.8
																																				Memo
						$	83.5					$	94.2					$	114.0					$	144.9					$	119.9								WM Global Family Office AUM									$	136.6					$	121.9					$	117.1					$	119.9					$	126.2					$	128.5
						405.5						474.1						600.7						742.6						614.9									WM Global Family Office AUC									720.8						642.2						598.4						614.9						660.0						694.0

10

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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.
																																																						2022																								2023
			2018						2019						2020						2021						2022																											1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
			$	2,321.4					$	2,499.9					$	1,643.5					$	1,406.5					$	2,877.7																	Interest Income - GAAP									$	383.5					$	524.8					$	799.3					$	1,170.1					$	1,455.4					$	1,735.0
			41.2						32.8						34.4						35.6						45.6																		Add: FTE Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
			2,362.6						2,532.7						1,677.9						1,442.1						2,923.3																					Interest Income (FTE) - Non-GAAP						390.2						535.9						811.6						1,185.6						1,468.6						1,748.1
			1,622.7						1,677.9						1,443.2						1,382.7						1,887.2																		Net Interest Income - GAAP									381.0						458.7						513.0						534.5						531.2						511.5
			41.2						32.8						34.4						35.6						45.6																		Add: FTE Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
			1,663.9						1,710.7						1,477.6						1,418.3						1,932.8																					Net Interest Income (FTE) - Non-GAAP						387.7						469.8						525.3						550.0						544.4						524.6
			5,960.2						6,073.1						6,100.8						6,464.5						6,761.2																		Total Revenue - GAAP									1,718.7						1,768.7						1,754.8						1,519.0						1,744.6						1,757.1
			41.2						32.8						34.4						35.6						45.6																		Add: FTE Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
			6,001.4						6,105.9						6,135.2						6,500.1						6,806.8																					Total Revenue (FTE) - Non-GAAP						1,725.4						1,779.8						1,767.1						1,534.5						1,757.8						1,770.2
			1,957.8						1,944.1						1,627.6						2,010.1						1,766.3																		Income before Income Taxes - GAAP									510.8						540.6						524.5						190.4						444.0						440.7
			41.2						32.8						34.4						35.6						45.6																		Add: FTE Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
			1,999.0						1,976.9						1,662.0						2,045.7						1,811.9																					Income before Income Taxes (FTE) - Non-GAAP						517.5						551.7						536.8						205.9						457.2						453.8
			401.4						451.9						418.3						464.8						430.3																		Provision for Income Taxes - GAAP									121.5						144.4						129.7						34.7						109.4						108.9
			41.2						32.8						34.4						35.6						45.6																		Add: FTE Adjustment									6.7						11.1						12.3						15.5						13.2						13.1
			442.6						484.7						452.7						500.4						475.9																					Provision for Income Taxes (FTE) - Non-GAAP						128.2						155.5						142.0						50.2						122.6						122.0

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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.
																																										2022																								2023
						2018						2019						2020						2021						2022												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						32.8		%				32.0		%				26.7		%				31.1		%				26.1		%				Profit Margin (pre-tax) - GAAP (1)						29.7		%				30.6		%				29.9		%				12.5		%				25.4		%				25.1		%
						33.3		%				32.4		%				27.1		%				31.5		%				26.6		%				Profit Margin (pre-tax) (FTE) - Non-GAAP (1)						30.0		%				31.0		%				30.4		%				13.4		%				26.0		%				25.6		%
						26.1		%				24.6		%				19.8		%				23.9		%				19.8		%				Profit Margin (after-tax) - GAAP (2)						22.7		%				22.4		%				22.5		%				10.2		%				19.2		%				18.9		%
						25.9		%				24.4		%				19.7		%				23.8		%				19.6		%				Profit Margin (after-tax) (FTE) - Non-GAAP (2)						22.6		%				22.3		%				22.3		%				10.1		%				19.0		%				18.7		%
						20.5		%				23.2		%				25.7		%				23.1		%				24.4		%				Effective Tax Rate - GAAP (3)						23.8		%				26.7		%				24.7		%				18.2		%				24.6		%				24.7		%
						22.1		%				24.5		%				27.2		%				24.5		%				26.3		%				Effective Tax Rate (FTE) - Non-GAAP (3)						24.8		%				28.2		%				26.4		%				24.4		%				26.8		%				26.9		%
						72.8		%				72.4		%				76.3		%				78.6		%				72.1		%				Noninterest Income to Total Revenue - GAAP (4)						77.8		%				74.1		%				70.8		%				64.8		%				69.5		%				70.9		%
						72.3		%				72.0		%				75.9		%				78.2		%				71.6		%				Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)						77.5		%				73.6		%				70.3		%				64.2		%				69.0		%				70.4		%
						63.0		%				63.4		%				65.5		%				67.5		%				65.6		%				Trust Fees to Total Revenue - GAAP (5)						68.0		%				64.6		%				61.5		%				68.6		%				61.0		%				62.4		%
						62.5		%				63.1		%				65.1		%				67.1		%				65.1		%				Trust Fees to Total Revenue (FTE) - Non-GAAP (5)						67.7		%				64.2		%				61.0		%				67.9		%				60.5		%				61.9		%
						1.25		%				1.37		%				1.11		%				0.96		%				1.15		%				Net Interest Spread - GAAP (6)						1.03		%				1.25		%				1.33		%				1.17		%				1.00		%				0.83		%
						1.29		%				1.40		%				1.14		%				0.98		%				1.19		%				Net Interest Spread (FTE) - Non-GAAP (6)						1.05		%				1.29		%				1.37		%				1.22		%				1.04		%				0.87		%
						1.43		%				1.57		%				1.16		%				0.96		%				1.36		%				Net Interest Margin - GAAP (7)						1.03		%				1.31		%				1.54		%				1.58		%				1.58		%				1.53		%
						1.46		%				1.60		%				1.19		%				0.99		%				1.39		%				Net Interest Margin (FTE) - Non-GAAP (7)						1.05		%				1.35		%				1.58		%				1.63		%				1.62		%				1.57		%
			(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.

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