EX-99.3 4 q22022trendreport-wordrepo.htm EX-99.3

Financial Trends

Second Quarter 2022

July 20, 2022

Please direct inquiries to:

Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or jennifer.childe@ntrs.com
Briar Rose
Vice President, Investor Relations
(312) 557-5297 or briar.rose@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 2022 earnings press release, 2021 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)
																																																2021																								2022
						2017						2018						2019						2020						2021																		1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr*						3rd Qtr						4th Qtr
																																				Profitability:
						$	1,199.0					$	1,556.4					$	1,492.2					$	1,209.3					$	1,545.3					Net Income												$	375.1					$	368.1					$	395.7					$	406.4					$	389.3					$	396.2
						1,130.4						1,489.9						1,428.9						1,141.0						1,490.6						Earnings Allocated to Common and Potential												355.2						360.2						376.5						398.7						370.0						388.3
																																							Common Shares
						$	4.95					$	6.68					$	6.66					$	5.48					$	7.16					Basic Earnings Per Share												$	1.71					$	1.73					$	1.81					$	1.92					$	1.78					$	1.86
						4.92						6.64						6.63						5.46						7.14						Diluted Earnings Per Share												1.70						1.72						1.80						1.91						1.77						1.86
						14		%				35		%				—		%				(18		%)				31		%				Diluted EPS Growth over Previous Year												10		%				18		%				36		%				70		%				4		%				8		%
						12.6		%				16.2		%				14.9		%				11.2		%				13.9		%				Return on Average Common Equity												13.7		%				13.7		%				13.7		%				14.5		%				14.2		%				15.7		%
						1.00		%				1.27		%				1.27		%				0.88		%				0.99		%				Return on Average Assets												0.99		%				0.96		%				1.00		%				1.00		%				0.97		%				1.03		%
						31.0		%				33.3		%				32.4		%				27.1		%				31.5		%				Profit Margin (pre-tax) (FTE**)												31.6		%				31.1		%				32.2		%				31.0		%				30.0		%				31.0		%
						22.1		%				25.9		%				24.4		%				19.7		%				23.8		%				Profit Margin (after-tax) (FTE**)												23.6		%				23.2		%				24.1		%				24.2		%				22.6		%				22.3		%
						72.8		%				72.3		%				72.0		%				75.9		%				78.2		%				Noninterest Income to Total Revenue (FTE**)												78.2		%				78.4		%				78.3		%				77.9		%				77.5		%				73.6		%
						63.4		%				62.5		%				63.1		%				65.1		%				67.1		%				Trust Fees to Total Revenue (FTE**)												66.9		%				67.7		%				67.6		%				66.2		%				67.7		%				64.2		%
						26.6		%				20.5		%				23.2		%				25.7		%				23.1		%				Effective Tax Rate (US GAAP)												24.4		%				24.3		%				23.6		%				20.2		%				23.8		%				26.7		%
						28.6		%				22.1		%				24.5		%				27.2		%				24.5		%				Effective Tax Rate (FTE**)												25.4		%				25.6		%				25.2		%				21.8		%				24.8		%				28.2		%
																																				Capital Ratios:
																																							Standardized Approach
						12.6		%				12.9		%				12.7		%				12.8		%				11.9		%										Common Equity Tier 1 Capital						12.0		%				12.0		%				11.9		%				11.9		%				11.4		%				10.5		%
						13.8		%				14.1		%				14.5		%				13.9		%				12.9		%										Tier 1 Capital						13.0		%				13.1		%				12.9		%				12.9		%				12.4		%				11.5		%
						15.8		%				16.1		%				16.3		%				15.6		%				14.1		%										Total Capital						14.5		%				14.5		%				14.3		%				14.1		%				13.6		%				12.6		%
						7.8		%				8.0		%				8.7		%				7.6		%				6.9		%										Tier 1 Leverage						6.9		%				7.1		%				7.1		%				6.9		%				6.5		%				6.7		%
																																							Advanced Approach
						13.5		%				13.7		%				13.2		%				13.4		%				13.2		%										Common Equity Tier 1 Capital						12.8		%				13.1		%				13.0		%				13.2		%				12.1		%				11.6		%
						14.8		%				15.0		%				15.0		%				14.5		%				14.3		%										Tier 1 Capital						14.0		%				14.2		%				14.1		%				14.3		%				13.2		%				12.7		%
						16.7		%				16.9		%				16.8		%				15.9		%				15.3		%										Total Capital						15.2		%				15.5		%				15.4		%				15.3		%				14.2		%				13.7		%
						7.8		%				8.0		%				8.7		%				7.6		%				6.9		%										Tier 1 Leverage						6.9		%				7.1		%				7.1		%				6.9		%				6.5		%				6.7		%
						6.8		%				7.0		%				7.6		%				8.6		%				8.2		%										Supplementary Leverage (a) (b)						8.1		%				8.2		%				8.4		%				8.2		%				7.9		%				7.6		%
																																				Per Share Information / Ratios:
						$	1.60					$	1.94					$	2.60					$	2.80					$	2.80					Cash Dividends Declared Per Common Share												$	0.70					$	0.70					$	0.70					$	0.70					$	0.70					$	0.70
						33		%				29		%				39		%				51		%				39		%				Dividend Payout Ratio												41		%				41		%				39		%				37		%				40		%				38		%
						$	99.89					$	83.59					$	106.24					$	93.14					$	119.61					Market Value Per Share (End of Period)												$	105.11					$	115.62					$	107.81					$	119.61					$	116.45					$	96.48
						20.3						12.6						16.0						17.1						16.8						Stock Price Multiple of Earnings												18.8						19.7						17.0						16.8						16.2						13.1
																																				(based on trailing 4 quarters of diluted EPS)
						$	41.28					$	43.95					$	46.82					$	51.87					$	53.58					Book Value Per Common Share (End of Period)												$	50.80					$	52.49					$	53.04					$	53.58					$	50.51					$	48.87
			*			Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
			**			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.
			(a)			Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
			(b)			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)
						SIX MONTHS												CHANGE																		SECOND QUARTER												CHANGE
						2022						2021						$						%												2022						2021						$						%
						$	1,305.1					$	1,232.0					$	73.1					6		%							Asset Servicing Trust, Investment and Other Servicing Fees			$	642.7					$	611.5					$	31.2					5		%
						1,006.7						907.1						99.6						11		%							WM Trust, Investment and Other Servicing Fees			500.7						463.9						36.8						8		%
						2,311.8						2,139.1						172.7						8		%							Total Fees			1,143.4						1,075.4						68.0						6		%
						158.5						149.3						9.2						6		%							Foreign Exchange Trading Income			77.6						70.6						7.0						10		%
						21.7						22.5						(0.8)						(3)		%							Treasury Management Fees			10.6						11.3						(0.7)						(6)		%
						69.0						67.8						1.2						2		%							Security Commissions and Trading Income			32.8						33.0						(0.2)						(1)		%
						86.7						109.3						(22.6)						(21)		%							Other Operating Income			45.6						54.4						(8.8)						(16)		%
						—						—						—						N/M									Investment Security Gains (Losses), net			—						—						—						N/M
						2,647.7						2,488.0						159.7						6		%							Total Noninterest Income			1,310.0						1,244.7						65.3						5		%
						926.1						707.9						218.2						31		%							Interest Income (FTE*)			535.9						351.4						184.5						52		%
						68.6						17.3						51.3						N/M									Interest Expense			66.1						7.5						58.6						N/M
						857.5						690.6						166.9						24		%							Net Interest Income (FTE*)			469.8						343.9						125.9						37		%
						3,505.2						3,178.6						326.6						10		%							Total Revenue (FTE*)			1,779.8						1,588.6						191.2						12		%
						6.5						(57.0)						63.5						N/M									Provision for Credit Losses			4.5						(27.0)						31.5						N/M
						1,110.4						1,004.8						105.6						11		%							Compensation			546.5						486.3						60.2						12		%
						223.9						221.8						2.1						1		%							Employee Benefits			119.6						118.4						1.2						1		%
						426.5						414.5						12.0						3		%							Outside Services			213.1						218.1						(5.0)						(2)		%
						397.0						355.0						42.0						12		%							Equipment and Software			203.5						178.3						25.2						14		%
						102.1						103.0						(0.9)						(1)		%							Occupancy			51.0						52.2						(1.2)						(2)		%
						169.6						139.2						30.4						22		%							Other Operating Expense			89.9						67.5						22.4						33		%
						2,429.5						2,238.3						191.2						9		%							Total Noninterest Expense			1,223.6						1,120.8						102.8						9		%
						1,069.2						997.3						71.9						7		%							Income before Income Taxes (FTE*)			551.7						494.8						56.9						12		%
						265.9						239.2						26.7						11		%							Provision for Income Taxes			144.4						118.4						26.0						22		%
						17.8						14.9						2.9						19		%							Taxable Equivalent Adjustment			11.1						8.3						2.8						35		%
						283.7						254.1						29.6						12		%							Total Taxes (FTE*)			155.5						126.7						28.8						23		%
						$	785.5					$	743.2					$	42.3					6		%							Net Income			$	396.2					$	368.1					$	28.1					8		%
						$	20.9					$	20.9					$	—					—		%							Dividends on Preferred Stock			$	4.7					$	4.7					$	—					—		%
						6.3						6.9						(0.6)						(8)		%							Earnings Allocated to Participating Securities			3.2						3.2						—						—		%
						758.3						715.4						42.9						6		%							Earnings Allocated to Common and Potential Common Shares			388.3						360.2						28.1						8		%
						$	3.64					$	3.44					$	0.20					6		%							Earnings Per Share - Basic			$	1.86					$	1.73					$	0.13					8		%
						$	3.63					$	3.42					$	0.21					6		%							Earnings Per Share - Diluted			$	1.86					$	1.72					$	0.14					8		%
						208,205						208,242																					Average Basic Shares (000s)			208,384						208,369
						208,844						209,043																					Average Diluted Shares (000s)			208,878						209,138
						208,387						208,395																					End of Period Shares Outstanding (000s)			208,387						208,395
						N/M - Not meaningful
						* 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)
																																													2021																								2022
						2017						2018						2019						2020						2021															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	1,984.5					$	2,173.1					$	2,211.5					$	2,321.6					$	2,487.3					Asset Servicing Trust, Investment and Other Servicing Fees									$	620.5					$	611.5					$	630.2					$	625.1					$	662.4					$	642.7
						1,449.8						1,580.6						1,640.6						1,673.4						1,873.8						WM Trust, Investment and Other Servicing Fees									443.2						463.9						480.8						485.9						506.0						500.7
						3,434.3						3,753.7						3,852.1						3,995.0						4,361.1									Total Fees						1,063.7						1,075.4						1,111.0						1,111.0						1,168.4						1,143.4
						209.9						307.2						250.9						290.4						292.6						Foreign Exchange Trading Income									78.7						70.6						66.4						76.9						80.9						77.6
						56.4						51.8						44.5						45.4						44.3						Treasury Management Fees									11.2						11.3						11.2						10.6						11.1						10.6
						89.6						98.3						103.6						133.2						140.2						Security Commissions and Trading Income									34.8						33.0						36.5						35.9						36.2						32.8
						157.5						127.5						145.5						194.0						243.9						Other Operating Income									54.9						54.4						62.3						72.3						41.1						45.6
						(1.6)						(1.0)						(1.4)						(0.4)						(0.3)						Investment Security Gains (Losses), net									—						—						—						(0.3)						—						—
						3,946.1						4,337.5						4,395.2						4,657.6						5,081.8									Total Noninterest Income						1,243.3						1,244.7						1,287.4						1,306.4						1,337.7						1,310.0
						1,475.0						1,663.9						1,710.7						1,477.6						1,418.3						Net Interest Income (FTE*)									346.7						343.9						357.1						370.6						387.7						469.8
						5,421.1						6,001.4						6,105.9						6,135.2						6,500.1									Total Revenue (FTE*)						1,590.0						1,588.6						1,644.5						1,677.0						1,725.4						1,779.8
						(28.0)						(14.5)						(14.5)						125.0						(81.5)						Provision for Credit Losses									(30.0)						(27.0)						(13.0)						(11.5)						2.0						4.5
						1,733.7						1,806.9						1,859.0						1,947.1						2,011.0						Compensation									518.5						486.3						496.0						510.2						563.9						546.5
						319.9						356.7						355.2						387.7						431.4						Employee Benefits									103.4						118.4						101.7						107.9						104.3						119.6
						668.4						739.4						774.5						763.1						849.4						Outside Services									196.4						218.1						210.7						224.2						213.4						213.1
						524.0						582.2						612.1						673.5						736.3						Equipment and Software									176.7						178.3						185.2						196.1						193.5						203.5
						191.8						201.1						212.9						230.1						208.7						Occupancy									50.8						52.2						53.9						51.8						51.1						51.0
						331.6						330.6						329.8						346.7						299.1						Other Operating Expense									71.7						67.5						81.2						78.7						79.7						89.9
						3,769.4						4,016.9						4,143.5						4,348.2						4,535.9									Total Noninterest Expense						1,117.5						1,120.8						1,128.7						1,168.9						1,205.9						1,223.6
						1,679.7						1,999.0						1,976.9						1,662.0						2,045.7						Income before Income Taxes (FTE*)									502.5						494.8						528.8						519.6						517.5						551.7
						434.9						401.4						451.9						418.3						464.8						Provision for Income Taxes									120.8						118.4						122.4						103.2						121.5						144.4
						45.8						41.2						32.8						34.4						35.6						Taxable Equivalent Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
						480.7						442.6						484.7						452.7						500.4									Total Taxes (FTE*)						127.4						126.7						133.1						113.2						128.2						155.5
						$	1,199.0					$	1,556.4					$	1,492.2					$	1,209.3					$	1,545.3								Net Income						$	375.1					$	368.1					$	395.7					$	406.4					$	389.3					$	396.2
						$	4.95					$	6.68					$	6.66					$	5.48					$	7.16					Earnings Per Share - Basic									$	1.71					$	1.73					$	1.81					$	1.92					$	1.78					$	1.86
						4.92						6.64						6.63						5.46						7.14						Earnings Per Share - Diluted									1.70						1.72						1.80						1.91						1.77						1.86
						229,654						224,488						215,601						209,008						208,899						Average Diluted Shares (000s)									208,946						209,138						208,923						208,593						208,809						208,878
						$	49.8					$	46.4					$	46.4					$	56.2					$	41.8					Preferred Dividends**									$	16.2					$	4.7					$	16.2					$	4.7					$	16.2					$	4.7
						* 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.
						** 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)
																																										2021																								2022
						2017						2018						2019						2020						2021												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
																																				Asset Servicing
						$	1,342.1					$	1,501.1					$	1,549.3					$	1,586.1					$	1,818.8					Custody & Fund Administration						$	446.0					$	454.9					$	460.2					$	457.7					$	452.7					$	433.8
						403.5						436.8						445.7						511.1						443.5						Investment Management						115.9						100.7						113.6						113.3						146.9						148.4
						96.4						102.0						87.2						88.0						76.7						Securities Lending						18.2						19.5						20.2						18.8						18.8						21.6
						142.6						133.2						129.3						136.4						148.3						Other						40.4						36.4						36.2						35.3						44.0						38.9
						$	1,984.6					$	2,173.1					$	2,211.5					$	2,321.6					$	2,487.3								Total Asset Servicing Trust, Investment and Other Servicing Fees			$	620.5					$	611.5					$	630.2					$	625.1					$	662.4					$	642.7
																																				Wealth Management
						$	575.5					$	607.8					$	619.3					$	607.3					$	698.7					Central						$	164.2					$	174.3					$	178.8					$	181.4					$	181.7					$	177.4
						356.2						401.7						422.2						442.1						509.3						East						119.0						127.2						130.2						132.9						134.0						128.1
						291.7						320.0						330.9						337.7						380.2						West						90.8						93.8						97.0						98.6						101.4						98.7
						226.3						251.1						268.2						286.3						285.6						Global Family Office						69.2						68.6						74.8						73.0						88.9						96.5
						$	1,449.7					$	1,580.6					$	1,640.6					$	1,673.4					$	1,873.8								Total WM Trust, Investment and Other Servicing Fees			$	443.2					$	463.9					$	480.8					$	485.9					$	506.0					$	500.7

4

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Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
																																				CHANGE
						Assets																		6/30/2022						6/30/2021						$						%
									Federal Reserve and Other Central Banks Deposits and Other(2)															$	37,948.3					$	54,159.5					$	(16,211.2)					(30)		%
									Interest-Bearing Due from and Deposits with Banks(3)															5,354.6						7,047.8						(1,693.2)						(24)		%
									Federal Funds Sold															10.0						0.1						9.9						N/M
									Securities Purchased under Agreements to Resell															1,171.8						947.8						224.0						24		%
									Securities:(1)
												U.S. Government												2,645.3						2,657.9						(12.6)						—		%
												Obligations of States and Political Subdivisions												3,453.3						3,489.9						(36.6)						(1)		%
												Government Sponsored Agency												22,219.8						24,144.9						(1,925.1)						(8)		%
												Other(4)												28,173.8						29,551.3						(1,377.5)						(5)		%
												Total Securities												56,492.2						59,844.0						(3,351.8)						(6)		%
									Loans and Leases															41,207.8						37,406.6						3,801.2						10		%
												Total Earning Assets												142,184.7						159,405.8						(17,221.1)						(11)		%
									Allowance for Credit Losses															(154.7)						(160.5)						5.8						(4)		%
									Cash and Due From Banks and Other Central Bank Deposits(5)															2,357.6						1,683.3						674.3						40		%
									Buildings and Equipment															476.6						496.5						(19.9)						(4)		%
									Client Security Settlement Receivables															2,284.7						2,011.6						273.1						14		%
									Goodwill															690.0						709.4						(19.4)						(3)		%
									Other Assets															9,947.4						8,145.0						1,802.4						22		%
												Total Assets												$	157,786.3					$	172,291.1					$	(14,504.8)					(8)		%
						Liabilities and Stockholders' Equity
									Savings, Money Market and Other															$	30,857.0					$	31,604.7					$	(747.7)					(2)		%
									Savings Certificates and Other Time															785.0						877.7						(92.7)						(11)		%
									Non- U.S. Offices - Interest-Bearing															69,951.1						71,705.4						(1,754.3)						(2)		%
												Total Interest-Bearing Deposits												101,593.1						104,187.8						(2,594.7)						(2)		%
									Federal Funds Purchased															389.2						0.2						389.0						N/M
									Securities Sold under Agreements to Repurchase															799.4						529.1						270.3						51		%
									Other Borrowings															3,514.9						5,140.6						(1,625.7)						(32)		%
									Senior Notes															3,305.8						3,036.0						269.8						9		%
									Long-Term Debt															1,094.1						1,165.3						(71.2)						(6)		%
									Floating Rate Capital Debt															—						277.8						(277.8)						(100)		%
												Total Interest-Related Funds												110,696.5						114,336.8						(3,640.3)						(3)		%
									Demand and Other Noninterest-Bearing Deposits															32,081.5						42,022.4						(9,940.9)						(24)		%
									Other Liabilities															3,938.6						4,108.9						(170.3)						(4)		%
												Total Liabilities												146,716.6						160,468.1						(13,751.5)						(9)		%
									Common Equity															10,184.8						10,938.1						(753.3)						(7)		%
									Preferred Equity															884.9						884.9						—						—		%
												Total Stockholders' Equity												11,069.7						11,823.0						(753.3)						(6)		%
												Total Liabilities and Stockholders' Equity												$	157,786.3					$	172,291.1					$	(14,504.8)					(8)		%
						(1)						Memo - at 6/30/2022:
												Held to Maturity Debt Securities						$	20,112.6
												Available for Sale Debt Securities						35,017.9
												Trading Securities						0.4
												Other Earning Assets						1,361.3
																		$	56,492.2
						(2)			Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
						(3)			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.
						(4)			Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
						(5)			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

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Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
($ in Millions)
																																																2021																								2022
						2017						2018						2019						2020						2021						Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	23,904					$	23,899					$	18,528					$	27,921					$	39,041								Federal Reserve and Other Central Banks Deposits and Other(2)									$	37,140					$	37,425					$	40,541					$	40,999					$	45,221					$	36,708
						7,143						6,023						5,997						5,401						5,780									Interest-Bearing Due from and Deposits with Banks(3)									6,464						6,737						5,165						4,778						4,384						4,228
						18						21						13						2						—									Federal Funds Sold									—						—						—						—						1						2
						1,832						1,478						835						1,253						1,067									Securities Purchased under Agreements to Resell									1,551						1,012						841						876						692						1,149
																																							Securities:
						6,342						5,737						5,297						4,257						2,685												U.S. Government						2,877						2,676						2,669						2,524						2,501						2,648
						887						725						981						2,194						3,532												Obligations of States and Political Subdivisions						3,199						3,373						3,691						3,856						3,793						3,487
						17,987						20,683						22,634						23,970						24,546												Government Sponsored Agency						24,846						24,521						24,414						24,408						23,511						22,468
						19,499						23,136						21,773						25,635						30,014												Other(4)						30,310						30,000						28,221						31,534						30,122						28,464
						44,716						50,281						50,684						56,057						60,778												Total Securities						61,231						60,570						58,996						62,321						59,927						57,067
						33,565						32,029						31,053						33,499						37,208									Loans and Leases									34,201						36,282						38,411						39,860						39,544						40,747
						111,178						113,731						107,109						124,133						143,873												Total Earning Assets						140,589						142,024						143,953						148,834						149,768						139,902
						(157)						(126)						(111)						(178)						(173)									Allowance for Credit Losses									(199)						(177)						(161)						(156)						(152)						(156)
						2,583						2,534						2,394						2,603						2,286									Cash and Due From Banks and Other Central Bank Deposits(5)									2,615						2,403						2,012						2,124						2,047						2,559
						466						439						426						509						503									Buildings and Equipment									509						505						500						497						495						488
						892						1,002						1,070						1,358						1,530									Client Security Settlement Receivables									1,669						1,533						1,284						1,639						1,826						1,588
						544						643						683						695						707									Goodwill									707						708						709						705						704						694
						4,101						4,725						5,981						7,691						7,637									Other Assets									7,367						7,305						8,156						7,711						7,455						9,010
						$	119,607					$	122,947					$	117,551					$	136,811					$	156,363											Total Assets						$	153,256					$	154,300					$	156,453					$	161,354					$	162,143					$	154,084
																																				Liabilities and Equity
						$	15,576					$	15,149					$	16,578					$	23,396					$	28,339								Savings, Money Market and Other									$	26,736					$	27,427					$	28,472					$	30,676					$	32,329					$	30,968
						1,273						871						868						1,266						887									Savings Certificates and Other Time									924						899						871						857						842						792
						56,583						58,557						54,885						60,486						69,713									Non- U.S. Offices - Interest-Bearing									68,306						69,202						70,211						71,099						68,200						63,901
						73,432						74,577						72,331						85,149						98,940												Total Interest-Bearing Deposits						95,965						97,528						99,554						102,631						101,371						95,661
						1,103						2,763						1,267						981						191									Federal Funds Purchased									406						195						166						—						—						923
						739						525						339						218						232									Securities Sold under Agreements to Repurchase									90						229						293						314						254						597
						4,854						7,496						7,753						6,401						5,050									Other Borrowings									4,681						5,196						5,527						4,789						3,691						4,187
						1,497						1,704						2,389						3,234						2,856									Senior Notes									3,058						3,023						2,841						2,510						2,442						2,885
						1,519						1,297						1,139						1,189						1,166									Long-Term Debt									1,179						1,169						1,166						1,151						1,128						1,096
						277						278						278						278						218									Floating Rate Capital Debt									278						278						278						42						—						—
						83,422						88,638						85,495						97,450						108,653												Total Interest-Related Funds						105,656						107,617						109,824						111,437						108,886						105,348
						23,073						20,527						17,456						23,362						31,144									Demand and Other Noninterest-Bearing Deposits									30,451						30,469						30,241						33,390						37,129						33,733
						3,132						3,553						3,952						4,806						4,870									Other Liabilities									5,611						4,663						4,534						4,685						4,616						4,096
						109,627						112,718						106,903						125,618						144,666												Total Liabilities						141,718						142,749						144,600						149,512						150,632						143,177
						9,099						9,347						9,705						10,307						10,812									Common Equity									10,653						10,666						10,968						10,957						10,626						10,022
						882						882						943						886						885									Preferred Equity									885						885						885						885						885						885
						9,981						10,229						10,648						11,193						11,697												Total Stockholders' Equity						11,537						11,551						11,853						11,842						11,511						10,907
						$	119,607					$	122,947					$	117,551					$	136,811					$	156,363											Total Liabilities and Stockholders' Equity						$	153,256					$	154,300					$	156,453					$	161,354					$	162,143					$	154,084
(1)						Summations may not equal due to rounding
(2)						Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)						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.
(4)						Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)						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.

6

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Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
																																																2021																								2022
						2017						2018						2019						2020						2021			Assets															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						20.0		%				19.4		%				15.8		%				20.4		%				25.0		%				Federal Reserve and Other Central Banks Deposits and Other(2)												24.2		%				24.3		%				25.9		%				25.4		%				27.9		%				23.8		%
						6.0						4.9						5.1						3.9						3.7						Interest-Bearing Due from and Deposits with Banks(3)												4.2						4.4						3.3						3.0						2.7						2.7
						—						—						—						—						—						Federal Funds Sold												—						—						—						—						—						—
						1.5						1.2						0.7						0.9						0.7						Securities Purchased under Agreements to Resell												1.0						0.7						0.5						0.5						0.4						0.7
																																				Securities:
						5.3						4.7						4.5						3.1						1.7									U.S. Government									1.9						1.7						1.7						1.6						1.5						1.7
						0.7						0.6						0.8						1.6						2.3									Obligations of States and Political Subdivisions									2.1						2.2						2.4						2.4						2.3						2.3
						15.0						16.8						19.3						17.5						15.7									Government Sponsored Agency									16.2						15.9						15.6						15.1						14.5						14.6
						16.3						18.8						18.5						18.7						19.2									Other(4)									19.8						19.4						18.0						19.5						18.6						18.5
						37.4						40.9						43.1						41.0						38.9									Total Securities									40.0						39.3						37.7						38.6						37.0						37.0
						28.1						26.1						26.4						24.5						23.8						Loans and Leases												22.3						23.5						24.6						24.7						24.4						26.4
						93.0						92.5						91.1						90.7						92.0									Total Earning Assets									91.7						92.0						92.0						92.2						92.4						90.8
						(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)
						2.2						2.1						2.0						1.9						1.5						Cash and Due From Banks and Other Central Bank Deposits(5)												1.7						1.6						1.3						1.3						1.3						1.7
						0.4						0.4						0.4						0.4						0.3						Buildings and Equipment												0.3						0.3						0.3						0.3						0.3						0.3
						0.7						0.8						0.9						1.0						1.0						Client Security Settlement Receivables												1.1						1.0						0.8						1.0						1.1						1.0
						0.5						0.5						0.6						0.5						0.5						Goodwill												0.5						0.5						0.5						0.4						0.4						0.5
						3.4						3.8						5.1						5.6						4.9						Other Assets												4.8						4.7						5.2						4.8						4.6						5.8
						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 Equity
						13.0		%				12.3		%				14.1		%				17.1		%				18.1		%				Savings, Money Market and Other												17.4		%				17.8		%				18.2		%				19.0		%				19.9		%				20.1		%
						1.1						0.7						0.7						0.9						0.6						Savings Certificates and Other Time												0.6						0.6						0.6						0.5						0.5						0.5
						47.3						47.6						46.7						44.2						44.6						Non- U.S. Offices - Interest-Bearing												44.6						44.8						44.9						44.1						42.1						41.5
						61.4						60.7						61.5						62.2						63.3									Total Interest-Bearing Deposits									62.6						63.2						63.6						63.6						62.5						62.1
						0.9						2.2						1.1						0.7						0.1						Federal Funds Purchased												0.3						0.1						0.1						—						—						0.6
						0.6						0.4						0.3						0.2						0.1						Securities Sold under Agreements to Repurchase												0.1						0.1						0.2						0.2						0.2						0.4
						4.1						6.1						6.6						4.7						3.2						Other Borrowings												3.1						3.4						3.5						3.0						2.3						2.7
						1.3						1.4						2.0						2.4						1.8						Senior Notes												2.0						2.0						1.8						1.6						1.5						1.9
						1.3						1.1						1.0						0.9						0.7						Long-Term Debt												0.8						0.8						0.7						0.7						0.7						0.7
						0.2						0.2						0.2						0.2						0.1						Floating Rate Capital Debt												0.2						0.2						0.2						—						—						—
						69.7						72.1						72.7						71.2						69.5									Total Interest-Related Funds									68.9						69.7						70.2						69.1						67.2						68.4
						19.3						16.7						14.8						17.1						19.9						Demand and Other Noninterest-Bearing Deposits												19.9						19.7						19.3						20.7						22.9						21.9
						2.6						2.9						3.4						3.5						3.1						Other Liabilities												3.7						3.0						2.9						2.9						2.8						2.7
						91.7						91.7						90.9						91.8						92.5									Total Liabilities									92.5						92.5						92.4						92.7						92.9						92.9
						7.6						7.6						8.3						7.5						6.9						Common Equity												7.0						6.9						7.0						6.8						6.6						6.5
						0.7						0.7						0.8						0.6						0.6						Preferred Equity												0.6						0.6						0.6						0.5						0.5						0.6
						8.3						8.3						9.1						8.2						7.5									Total Stockholders' Equity									7.5						7.5						7.6						7.3						7.1						7.1
						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)						Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)						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.
(4)						Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)						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.

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).
																																																2021																								2022
						2017						2018						2019						2020						2021						Earnings Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						0.65		%				0.87		%				0.98		%				0.10		%				0.03		%							Federal Reserve and Other Central Banks Deposits and Other(2)									—		%				0.01		%				0.04		%				0.06		%				0.16		%				0.65		%
						0.89						1.16						1.21						0.41						0.16									Interest-Bearing Due from and Deposits with Banks(3)									0.15						0.16						0.15						0.18						0.24						0.62
						1.39						2.18						2.73						1.37						0.41									Federal Funds Sold									0.41						0.41						0.41						0.41						0.45						0.75
						1.48						2.22						2.10						0.31						0.33									Securities Purchased under Agreements to Resell(5)									0.27						0.34						0.38						0.38						0.50						2.47
																																							Securities:
						1.41						1.89						2.09						1.48						1.10												U.S. Government						1.02						1.03						1.01						1.35						1.62						1.74
						1.48						1.91						2.49						2.20						1.98												Obligations of States and Political Subdivisions						1.96						1.99						1.96						2.01						2.11						2.31
						1.57						2.20						2.58						1.71						1.21												Government Sponsored Agency						1.36						1.20						1.14						1.12						1.26						1.51
						1.30						1.59						1.75						1.26						1.02												Other(4)						0.99						1.03						1.10						0.98						1.00						1.27
						1.43						1.88						2.17						1.51						1.16												Total Securities						1.19						1.15						1.17						1.11						1.20						1.45
						2.77						3.45						3.74						2.32						1.92									Loans and Leases									2.05						1.91						1.87						1.88						1.97						2.53
						1.63		%				2.08		%				2.36		%				1.35		%				1.00		%										Total Earning Assets						1.03		%				0.99		%				1.00		%				0.99		%				1.06		%				1.54		%
																																				Interest-Bearing Funds
						0.16		%				0.54		%				0.97		%				0.20		%				0.05		%							Savings, Money Market and Other									0.06		%				0.04		%				0.04		%				0.04		%				0.04		%				0.24		%
						0.74						0.90						1.86						1.30						0.55									Savings Certificates and Other Time									0.67						0.49						0.53						0.49						0.51						0.58
						0.26						0.50						0.57						(0.03)						(0.11)									Non- U.S. Offices - Interest-Bearing									(0.11)						(0.11)						(0.12)						(0.12)						(0.12)						0.02
						0.25						0.52						0.68						0.06						(0.06)												Total Interest-Bearing Deposits						(0.06)						(0.06)						(0.07)						(0.06)						(0.06)						0.10
						0.95						1.82						2.05						0.22						(0.19)									Federal Funds Purchased									0.06						(0.95)						0.09						—						0.05						1.22
						0.81						1.48						1.89						0.47						0.07									Securities Sold under Agreements to Repurchase(5)									0.07						0.03						0.06						0.11						0.49						4.01
						1.04						2.00						2.34						0.71						0.28									Other Borrowings									0.30						0.25						0.26						0.32						0.35						0.80
						3.13						3.13						3.04						2.24						1.69									Senior Notes									1.82						1.82						1.64						1.44						1.59						2.65
						2.58						3.47						3.36						2.24						1.81									Long-Term Debt									1.83						1.83						1.79						1.80						1.94						2.47
						1.75						2.72						2.98						1.52						0.78									Floating Rate Capital Debt									0.81						0.76						0.75						0.86						—						—
						0.41		%				0.79		%				0.96		%				0.21		%				0.02		%										Total Interest-Related Funds						0.04		%				0.03		%				0.02		%				0.01		%				0.01		%				0.25		%
						1.22		%				1.29		%				1.40		%				1.14		%				0.98		%							Net Interest Spread									0.99		%				0.96		%				0.98		%				0.98		%				1.05		%				1.29		%
						1.33		%				1.46		%				1.60		%				1.19		%				0.99		%							Net Interest Margin									1.00		%				0.97		%				0.98		%				0.99		%				1.05		%				1.35		%
			(1)			Fully taxable equivalent. The 2018 through 2021 FTE adjustments are based on a federal income tax rate of 21% and the 2017 FTE adjustments are based on a federal income tax rate of 35%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
			(2)			Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
			(3)			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.
			(4)			Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
			(5)			Includes the impact of balance sheet netting under master netting arrangements of approximately $2.8 billion for the three months ended June 30, 2022. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 0.72% for the three months ended June 30, 2022. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 0.70% for the three months ended June 30, 2022.

8

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Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
																																																			2021																								2022
						2017						2018						2019						2020						2021																					1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	192.0					$	153.8					$	138.2					$	124.4					$	259.9					Beginning Allowance for Credit Losses															$	259.9					$	230.8					$	207.0					$	195.1					$	184.7					$	189.9
						—						—						—						13.7						—						Cumulative Effect Adjustment*															—						—						—						—						—						—
						(28.0)						(14.5)						(14.5)						125.0						(81.5)						Provision for Credit Losses															(30.0)						(27.0)						(13.0)						(11.5)						2.0						4.5
																																				(Charge-offs) Recoveries
						(21.5)						(10.1)						(6.5)						(9.7)						(0.7)									Charge-offs												(0.4)						—						—						(0.3)						(0.1)						—
						11.3						9.0						7.2						6.5						7.0									Recoveries												1.3						3.2						1.1						1.4						3.3						5.5
						(10.2)						(1.1)						0.7						(3.2)						6.3												Net (Charge-offs) Recoveries									0.9						3.2						1.1						1.1						3.2						5.5
						$	153.8					$	138.2					$	124.4					$	259.9					$	184.7														Ending Allowance for Credit Losses						$	230.8					$	207.0					$	195.1					$	184.7					$	189.9					$	199.9
																																				Allowance for Credit Losses Assigned to:
						$	131.2					$	112.6					$	104.5					$	190.7					$	138.4								Loans and Leases												$	165.4					$	148.8					$	143.9					$	138.4					$	136.3					$	138.2
						22.6						25.6						19.9						61.1						34.1									Undrawn Loan Commitments and Standby Letters of Credit												55.1						46.5						39.8						34.1						37.5						43.5
						—						—						—						8.1						12.2									Debt Securities and Other Financial Assets												10.3						11.7						11.4						12.2						16.1						18.2
						$	153.8					$	138.2					$	124.4					$	259.9					$	184.7											Total Allowance for Credit Losses									$	230.8					$	207.0					$	195.1					$	184.7					$	189.9					$	199.9
						$	33,565					$	32,029					$	31,053					$	33,499					$	37,208					Average Loans and Leases Outstanding															$	34,201					$	36,282					$	38,411					$	39,860					$	39,544					$	40,747
																																				Annualized Loan-Related Net (Charge-offs) Recoveries to
						(0.03)		%				—		%				—		%				(0.01)		%				0.02		%							Average Loans and Leases												0.01		%				0.04		%				0.01		%				0.01		%				0.03		%				0.05		%
						$	32,592					$	32,490					$	31,410					$	33,760					$	40,481					End of Period Loans and Leases Outstanding															$	34,344					$	37,407					$	39,457					$	40,481					$	39,239					$	41,208
																																				Allowance for Credit Losses Assigned to Loans
						0.40		%				0.35		%				0.33		%				0.56		%				0.34		%							and Leases to Total Loans and Leases												0.48		%				0.40		%				0.36		%				0.34		%				0.35		%				0.34		%
																																				Nonaccrual Assets
						$	150.7					$	109.3					$	83.6					$	131.7					$	122.3								Nonaccrual Loans and Leases												$	123.8					$	106.5					$	141.0					$	122.3					$	100.8					$	89.7
						4.6						8.4						3.2						0.7						3.0									Other Real Estate Owned (OREO)												1.5						0.2						0.2						3.0						0.2						0.1
						$	155.3					$	117.7					$	86.8					$	132.4					$	125.3											Total Nonaccrual Assets									$	125.3					$	106.7					$	141.2					$	125.3					$	101.0					$	89.8
						0.48		%				0.36		%				0.28		%				0.39		%				0.31		%				Nonaccrual Assets to Loans and Leases and OREO															0.36		%				0.29		%				0.36		%				0.31		%				0.26		%				0.22		%
																																				Loans and Leases Allowance to Nonaccrual
						0.9x						1.0x						1.3x						1.4x						1.1x									Loans and Leases												1.3		x				1.4x						1.0x						1.1x						1.4x						1.5x
			*			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)
																																																2021																								2022
						2017						2018						2019						2020						2021																		1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
																																				Assets under Management
						$	871.2					$	790.8					$	917.5					$	1,057.5					$	1,191.0					Asset Servicing												$	1,093.7					$	1,168.3					$	1,159.5					$	1,191.0					$	1,091.6					$	950.0
																																							Asset allocation:
						443.3						403.3						483.8						551.7						626.6												Equities						573.5						616.0						594.9						626.6						582.8						479.1
						111.9						105.3						114.6						120.1						132.6												Fixed Income Securities						117.1						132.6						127.9						132.6						122.8						114.8
						148.5						132.4						156.1						198.8						236.2												Cash and Other Assets						201.9						220.4						228.6						236.2						208.8						186.8
						167.5						149.8						163.0						186.9						195.6												Securities Lending Collateral						201.2						199.3						208.1						195.6						177.2						169.3
						$	289.8					$	278.6					$	313.8					$	347.8					$	416.1					Wealth Management												$	355.4					$	371.1					$	372.9					$	416.1					$	396.2					$	352.8
																																							Asset allocation:
						149.0						130.9						167.0						182.0						229.9												Equities						196.1						211.8						211.5						229.9						218.1						185.0
						71.6						73.0						79.2						84.7						83.5												Fixed Income Securities						81.8						82.3						82.7						83.5						81.6						80.1
						69.0						74.6						67.5						81.1						102.7												Cash and Other Assets						77.5						77.0						78.7						102.7						96.5						87.7
						0.2						0.1						0.1						—						—												Securities Lending Collateral						—						—						—						—						—						—
						$	1,161.0					$	1,069.4					$	1,231.3					$	1,405.3					$	1,607.1					Total Assets under Management												$	1,449.1					$	1,539.4					$	1,532.4					$	1,607.1					$	1,487.8					$	1,302.8
																																							Asset allocation:
						$	592.3					$	534.2					$	650.8					$	733.7					$	856.5											Equities						$	769.6					$	827.8					$	806.4					$	856.5					$	800.9					$	664.1
						183.5						178.3						193.8						204.8						216.1												Fixed Income Securities						198.9						214.9						210.6						216.1						204.4						194.9
						217.5						207.0						223.6						279.9						338.9												Cash and Other Assets						279.4						297.4						307.3						338.9						305.3						274.5
						167.7						149.9						163.1						186.9						195.6												Securities Lending Collateral						201.2						199.3						208.1						195.6						177.2						169.3
																																				Assets under Custody / Administration
						10,066.8						$	9,490.5					$	11,311.6					$	13,653.1					$	15,183.2								Asset Servicing									$	13,876.3					$	14,754.1					$	14,800.2					$	15,183.2					$	14,513.0					$	12,812.2
						655.8						634.8						738.8						879.4						1,065.6									Wealth Management									918.8						973.0						976.0						1,065.6						1,031.1						921.5
						$	10,722.6					$	10,125.3					$	12,050.4					$	14,532.5					$	16,248.8					Total Assets under Custody / Administration												$	14,795.1					$	15,727.1					$	15,776.2					$	16,248.8					$	15,544.1					$	13,733.7
																																				Assets under Custody
						$	7,439.1					$	6,971.0					$	8,497.8					$	10,387.7					$	11,554.8					Asset Servicing												$	10,618.0					$	11,260.8					$	11,283.6					$	11,554.8					$	10,987.5					$	9,771.2
																																							Asset allocation:
						3,400.1						3,043.0						3,866.6						4,751.0						5,404.3												Equities						5,005.7						5,334.8						5,298.8						5,404.3						5,062.5						4,272.7
						2,755.2						2,700.2						3,102.3						3,742.6						3,997.5												Fixed Income Securities						3,688.4						3,892.9						3,908.3						3,997.5						3,768.9						3,378.8
						1,116.3						1,078.0						1,365.9						1,707.2						1,957.4												Cash and Other Assets						1,722.7						1,833.8						1,868.4						1,957.4						1,978.9						1,950.4
						167.5						149.8						163.0						186.9						195.6												Securities Lending Collateral						201.2						199.3						208.1						195.6						177.2						169.3
						$	645.5					$	622.9					$	735.7					$	875.1					$	1,057.5					Wealth Management												$	916.2					$	967.8					$	962.9					$	1,057.5					$	1,022.9					$	913.0
																																							Asset allocation:
						375.6						336.5						432.0						542.9						644.8												Equities						575.0						616.3						600.7						644.8						615.2						512.8
						121.3						122.2						134.3						128.3						142.1												Fixed Income Securities						130.3						136.7						138.2						142.1						140.5						135.0
						148.4						164.1						169.3						203.9						270.6												Cash and Other Assets						210.9						214.8						224.0						270.6						267.2						265.2
						0.2						0.1						0.1						—						—												Securities Lending Collateral						—						—						—						—						—						—
						$	8,084.6					$	7,593.9					$	9,233.5					$	11,262.8					$	12,612.3					Total Assets under Custody												$	11,534.2					$	12,228.6					$	12,246.5					$	12,612.3					$	12,010.4					$	10,684.2
																																							Asset allocation:
						$	3,775.7					$	3,379.5					$	4,298.6					$	5,293.9					$	6,049.1											Equities						$	5,580.7					$	5,951.0					$	5,899.5					$	6,049.1					$	5,677.7					$	4,785.5
						2,876.5						2,822.4						3,236.6						3,870.9						4,139.6												Fixed Income Securities						3,818.7						4,029.6						4,046.5						4,139.6						3,909.4						3,513.8
						1,264.7						1,242.1						1,535.2						1,911.1						2,228.0												Cash and Other Assets						1,933.6						2,048.7						2,092.4						2,228.0						2,246.1						2,215.6
						167.7						149.9						163.1						186.9						195.6												Securities Lending Collateral						201.2						199.3						208.1						195.6						177.2						169.3
																																				Memo
						$	87.1					$	83.5					$	94.2					$	114.0					$	144.9								WM Global Family Office AUM									$	114.3					$	119.7					$	120.4					$	144.9					$	136.6					$	121.9
						422.9						405.5						474.1						600.7						742.6									WM Global Family Office AUC									635.2						675.4						668.9						742.6						720.8						642.2

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.
																																																						2021																								2022
			2017						2018						2019						2020						2021																											1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
			$	1,769.4					$	2,321.4					$	2,499.9					$	1,643.5					$	1,406.5																	Interest Income - GAAP									$	349.9					$	343.1					$	351.3					$	362.2					$	383.5					$	524.8
			45.8						41.2						32.8						34.4						35.6																		Add: FTE Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
			1,815.2						2,362.6						2,532.7						1,677.9						1,442.1																					Interest Income (FTE) - Non-GAAP						356.5						351.4						362.0						372.2						390.2						535.9
			1,429.2						1,622.7						1,677.9						1,443.2						1,382.7																		Net Interest Income - GAAP									340.1						335.6						346.4						360.6						381.0						458.7
			45.8						41.2						32.8						34.4						35.6																		Add: FTE Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
			1,475.0						1,663.9						1,710.7						1,477.6						1,418.3																					Net Interest Income (FTE) - Non-GAAP						346.7						343.9						357.1						370.6						387.7						469.8
			5,375.3						5,960.2						6,073.1						6,100.8						6,464.5																		Total Revenue - GAAP									1,583.4						1,580.3						1,633.8						1,667.0						1,718.7						1,768.7
			45.8						41.2						32.8						34.4						35.6																		Add: FTE Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
			5,421.1						6,001.4						6,105.9						6,135.2						6,500.1																					Total Revenue (FTE) - Non-GAAP						1,590.0						1,588.6						1,644.5						1,677.0						1,725.4						1,779.8
			1,633.9						1,957.8						1,944.1						1,627.6						2,010.1																		Income before Income Taxes - GAAP									495.9						486.5						518.1						509.6						510.8						540.6
			45.8						41.2						32.8						34.4						35.6																		Add: FTE Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
			1,679.7						1,999.0						1,976.9						1,662.0						2,045.7																					Income before Income Taxes (FTE) - Non-GAAP						502.5						494.8						528.8						519.6						517.5						551.7
			434.9						401.4						451.9						418.3						464.8																		Provision for Income Taxes - GAAP									120.8						118.4						122.4						103.2						121.5						144.4
			45.8						41.2						32.8						34.4						35.6																		Add: FTE Adjustment									6.6						8.3						10.7						10.0						6.7						11.1
			480.7						442.6						484.7						452.7						500.4																					Provision for Income Taxes (FTE) - Non-GAAP						127.4						126.7						133.1						113.2						128.2						155.5

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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.
																																										2021																								2022
						2017						2018						2019						2020						2021												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						30.4		%				32.8		%				32.0		%				26.7		%				31.1		%				Profit Margin (pre-tax) - GAAP (1)						31.3		%				30.8		%				31.7		%				30.6		%				29.7		%				30.6		%
						31.0		%				33.3		%				32.4		%				27.1		%				31.5		%				Profit Margin (pre-tax) (FTE) - Non-GAAP (1)						31.6		%				31.1		%				32.2		%				31.0		%				30.0		%				31.0		%
						22.3		%				26.1		%				24.6		%				19.8		%				23.9		%				Profit Margin (after-tax) - GAAP (2)						23.7		%				23.3		%				24.2		%				24.4		%				22.7		%				22.4		%
						22.1		%				25.9		%				24.4		%				19.7		%				23.8		%				Profit Margin (after-tax) (FTE) - Non-GAAP (2)						23.6		%				23.2		%				24.1		%				24.2		%				22.6		%				22.3		%
						26.6		%				20.5		%				23.2		%				25.7		%				23.1		%				Effective Tax Rate - GAAP (3)						24.4		%				24.3		%				23.6		%				20.2		%				23.8		%				26.7		%
						28.6		%				22.1		%				24.5		%				27.2		%				24.5		%				Effective Tax Rate (FTE) - Non-GAAP (3)						25.4		%				25.6		%				25.2		%				21.8		%				24.8		%				28.2		%
						73.4		%				72.8		%				72.4		%				76.3		%				78.6		%				Noninterest Income to Total Revenue - GAAP (4)						78.5		%				78.8		%				78.8		%				78.4		%				77.8		%				74.1		%
						72.8		%				72.3		%				72.0		%				75.9		%				78.2		%				Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)						78.2		%				78.4		%				78.3		%				77.9		%				77.5		%				73.6		%
						63.9		%				63.0		%				63.4		%				65.5		%				67.5		%				Trust Fees to Total Revenue - GAAP (5)						67.2		%				68.1		%				68.0		%				66.6		%				68.0		%				64.6		%
						63.4		%				62.5		%				63.1		%				65.1		%				67.1		%				Trust Fees to Total Revenue (FTE) - Non-GAAP (5)						66.9		%				67.7		%				67.6		%				66.2		%				67.7		%				64.2		%
						1.18		%				1.25		%				1.37		%				1.11		%				0.96		%				Net Interest Spread - GAAP (6)						0.97		%				0.94		%				0.95		%				0.96		%				1.03		%				1.25		%
						1.22		%				1.29		%				1.40		%				1.14		%				0.98		%				Net Interest Spread (FTE) - Non-GAAP (6)						0.99		%				0.96		%				0.98		%				0.98		%				1.05		%				1.29		%
						1.29		%				1.43		%				1.57		%				1.16		%				0.96		%				Net Interest Margin - GAAP (7)						0.98		%				0.95		%				0.95		%				0.96		%				1.03		%				1.31		%
						1.33		%				1.46		%				1.60		%				1.19		%				0.99		%				Net Interest Margin (FTE) - Non-GAAP (7)						1.00		%				0.97		%				0.98		%				0.99		%				1.05		%				1.35		%
			(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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