EX-99.1 2 q42022earningsreleaseex991.htm EX-99.1 Document
Exhibit 99.1
NEWS RELEASE
ntrs_logoxwhite.jpg
www.northerntrust.com
INVESTOR CONTACT: Jennifer Childe | 312-444-3290 | Jennifer.Childe@ntrs.com MEDIA CONTACT: Doug Holt | 312-662-8315 | Doug.Holt@ntrs.com



NORTHERN TRUST CORPORATION REPORTS FOURTH QUARTER
NET INCOME OF $155.7 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $0.71
CHICAGO, JANUARY 19, 2023 — Northern Trust Corporation today reported fourth quarter net income per diluted common share of $0.71, compared to $1.80 in the third quarter of 2022 and $1.91 in the fourth quarter of 2021. Net income was $155.7 million, compared to $394.8 million in the prior quarter and $406.4 million in the prior-year quarter.
Fourth quarter 2022 results included the following:
•$213.0 million of pre-tax available for sale security losses recognized in conjunction with an intent to sell (after-tax $159.4 million).
•$32.0 million of pre-tax severance-related charges (after-tax $24.0 million).
•$14.0 million of pre-tax occupancy charges (after-tax $10.5 million) related to early lease exits.
•$6.8 million of pre-tax pension settlement charge (after-tax $5.1 million).
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust’s fourth quarter results reflected strong year-over-year growth in net interest income, which more than offset lower trust fees. Expense levels remained elevated as we continued to invest in people and technology to enhance our resiliency and support growth in the business. Reported results included $266 million in charges related to a repositioning of our securities portfolio and, in part, steps we are taking to optimize our cost base and drive greater efficiencies throughout the company. These actions underscore our commitment to improving our profitability. As we look ahead, we are focused on driving organic growth, improving our productivity and further strengthening our foundation.”
FINANCIAL SUMMARY & KEY METRICS
% Change Q4 2022 vs.
($ In Millions except per share data)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Trust, Investment and Other Servicing Fees$1,042.1 $1,078.7 $1,111.0 (3)%(6)%
Other Noninterest Income (Loss)(57.6)163.1 195.4 (135)(129)
Net Interest Income (FTE*)550.0 525.3 370.6 5 48 
Total Revenue (FTE*)$1,534.5 $1,767.1 $1,677.0 (13)%(8)%
Noninterest Expense$1,323.6 $1,229.8 $1,168.9 8 %13 %
Provision for Credit Losses5.0 0.5 (11.5)N/MN/M
Provision for Income Taxes34.7 129.7 103.2 (73)(66)
FTE Adjustment*15.5 12.3 10.0 26 55 
Net Income$155.7 $394.8 $406.4 (61)%(62)%
Earnings Allocated to Common and
Potential Common Shares		$148.7 $375.4 $398.7 (60)%(63)%
Diluted Earnings per Common Share$0.71 $1.80 $1.91 (61)%(63)%
Return on Average Common Equity5.9 %14.9 %14.5 %
Return on Average Assets0.42 %1.07 %1.00 %
Average Assets$147,803.6 $146,402.2 $161,353.8 1 %(8)%
N/M - Not meaningful
(*)     Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
ACCOUNTING RECLASSIFICATION
Beginning in the first quarter of 2022, Trust, Investment and Other Servicing fees were impacted by the change in classification of certain fees that were previously recorded in Other Operating Income or as a reduction of Other Operating Expense but resulted in no impact to net income. The accounting reclassification increased Trust, Investment and Other Servicing fees in the fourth quarter of 2022 by $14.2 million, with a $5.6 million decrease in Other Operating Income and an $8.6 million increase in Other Operating Expense. The classification changes are deemed to be a better representation of the underlying nature of the business as they are directly tied to client asset levels and the related services are more akin to our core service offerings. Prior-year amounts have not been reclassified.
CLIENT ASSETS
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income.
As of
% Change December 31, 2022 vs.
($ In Billions)December 31, 2022*September 30, 2022December 31, 2021September 30, 2022December 31, 2021
Assets Under Custody/Administration
Asset Servicing$12,705.5 $11,954.0 $15,183.2 6 %(16)%
   Wealth Management898.5 868.0 1,065.6 4 (16)
     Total Assets Under Custody/Administration$13,604.0 $12,822.0 $16,248.8 6 %(16)%
Assets Under Custody(1)
Asset Servicing$9,712.3 $9,125.5 $11,554.8 6 %(16)%
   Wealth Management892.3 860.8 1,057.5 4 (16)
     Total Assets Under Custody$10,604.6 $9,986.3 $12,612.3 6 %(16)%
Assets Under Management
Asset Servicing$898.1 $873.7 $1,191.0 3 %(25)%
   Wealth Management351.4 336.2 416.1 5 (16)
     Total Assets Under Management$1,249.5 $1,209.9 $1,607.1 3 %(22)%
(1) Assets Under Custody are a component of Assets Under Custody/Administration.
(*) Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
TRUST, INVESTMENT AND OTHER SERVICING FEES
% Change Q4 2022 vs.
($ In Millions)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration$406.3 $407.3 $457.7 — %(11)%
Investment Management123.8 136.0 113.3 (9)9 
Securities Lending19.3 21.7 18.8 (11)2 
Other38.6 38.2 35.3 1 9 
Total Asset Servicing$588.0 $603.2 $625.1 (3)%(6)%
Wealth Management Trust, Investment and Other Servicing Fees
Central$162.2 $171.3 $181.4 (5)%(11)%
East117.8 124.1 132.9 (5)(11)
West89.5 92.5 98.6 (3)(9)
Global Family Office (GFO)84.6 87.6 73.0 (3)16 
Total Wealth Management$454.1 $475.5 $485.9 (5)%(7)%
Total Consolidated Trust, Investment and Other Servicing Fees$1,042.1 $1,078.7 $1,111.0 (3)%(6)%
Asset Servicing and Wealth Management trust, investment and other servicing fees are impacted by both one-month and one-quarter lagged asset values.
Total Asset Servicing trust, investment and other servicing fees decreased sequentially and from the prior-year quarter.
▪Custody and fund administration fees decreased from the prior-year quarter primarily due to unfavorable markets and unfavorable currency translation, partially offset by new business.
▪Investment management fees decreased sequentially primarily due to asset outflows and unfavorable markets. Investment management fees increased from the prior-year quarter primarily due to lower money market fund fee waivers, partially offset by asset outflows and unfavorable markets.
▪Other trust, investment and other servicing fees increased from the prior-year quarter primarily due to the accounting reclassification discussed above.
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NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
Total Wealth Management trust, investment and other servicing fees decreased sequentially and from the prior-year quarter.
•Fees in the regions (Central, East and West) decreased sequentially primarily due to unfavorable markets and asset outflows. Fees in the regions decreased from the prior-year quarter primarily due to unfavorable markets and asset outflows, partially offset by lower money market fund fee waivers.
•Fees in GFO decreased sequentially primarily due to asset outflows and unfavorable markets. Fees in GFO increased from the prior-year quarter primarily due to lower money market fund fee waivers and new business, partially offset by unfavorable markets.
OTHER NONINTEREST INCOME
% Change Q4 2022 vs.
($ In Millions)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Other Noninterest Income
     Foreign Exchange Trading Income$65.4 $64.7 $76.9 1 %(15)%
     Treasury Management Fees8.3 9.3 10.6 (9)(21)
     Security Commissions and Trading Income35.1 32.1 35.9 9 (2)
     Other Operating Income47.3 57.3 72.3 (18)(35)
     Investment Security Gains (Losses), net(213.7)(0.3)(0.3)N/MN/M
Total Other Noninterest Income (Loss)$(57.6)$163.1 $195.4 (135)%(129)%
N/M - Not meaningful
Foreign exchange trading income decreased compared to the prior-year quarter primarily driven by decreased foreign exchange swap activity in Treasury and lower client volumes.
Security commissions and trading income increased sequentially primarily due to higher core brokerage activity.
Other operating income decreased sequentially primarily due to higher expenses related to existing swap agreements related to historical sales of Visa Inc. Class B common shares. Other operating income decreased compared to the prior-year quarter primarily driven by gains from property sales in the prior-year quarter and the accounting reclassification.
Investment security gains (losses), net decreased sequentially and compared to the prior-year quarter primarily due to a $213.0 million loss arising from an intent to sell available for sale debt securities, which were sold in January 2023.
NET INTEREST INCOME
% Change Q4 2022 vs.
($ In Millions)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Net Interest Income
     Interest Income (FTE*)$1,185.6 $811.6 $372.2 46 %219 %
     Interest Expense635.6 286.3 1.6 122N/M
Net Interest Income (FTE*)$550.0 $525.3 $370.6 5 %48 %
Average Earning Assets$133,789 $132,147 $148,834 1%(10 %)
Net Interest Margin (FTE*)1.63 %1.58 %0.99 %5 bps64 bps
(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
bps - basis points
Net interest income on an FTE basis increased sequentially and compared to the prior-year quarter primarily due to higher average interest rates, partially offset by an unfavorable balance sheet mix shift.
The net interest margin on an FTE basis increased sequentially primarily due to higher average interest rates, partially offset by an unfavorable balance sheet mix shift. The net interest margin on an FTE basis increased from the prior-year quarter primarily due to higher average interest rates.
Average earning assets decreased from the prior-year quarter primarily due to lower level of securities and short-term interest-bearing deposits with banks, partially offset by higher level of loans. The decrease in the size of the average balance sheet was primarily due to lower levels of client deposits, partially offset by higher short-term borrowing activity.
3
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
PROVISION FOR CREDIT LOSSES
As of and for the three-months ended,
% Change December 31, 2022 vs.
($ In Millions)December 31, 2022September 30, 2022December 31, 2021September 30, 2022December 31, 2021
Allowance for Credit Losses
Beginning Allowance for Credit Losses$195.9 $199.9 $195.1 (2)%— %
Provision for Credit Losses5.0 0.5 (11.5)N/MN/M
Net Recoveries (Charge-Offs) — (4.5)1.1 N/MN/M
Ending Allowance for Credit Losses$200.9 $195.9 $184.7 3 %9 %
Allowance assigned to:
Loans and Leases$144.3 $138.7 $138.4 4 %4 %
Undrawn Loan Commitments and
Standby Letters of Credit		38.5 40.7 34.1 (5)13 
Debt Securities and Other Financial Assets18.1 16.5 12.2 8 47 
Ending Allowance for Credit Losses$200.9 $195.9 $184.7 3 %9 %
N/M - Not meaningful
Q4 2022
The provision in the current quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by growth in the commercial and institutional and commercial real estate portfolios and further deterioration in the macroeconomic outlook, partially offset by improvement in portfolio quality for the commercial and institutional segment. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics.
Q3 2022
The provision in the prior quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by a weaker macroeconomic outlook at the time as compared to the previous period, partially offset by improvements in credit quality mainly within the commercial and institutional portfolio.
Q4 2021
The release of credit reserves in the prior-year quarter was primarily due to a decrease in the reserve evaluated on a collective basis, driven by improvements in projected economic conditions at the time and portfolio credit quality, partially offset by portfolio growth. Decreases in the collective basis reserve were primarily in the commercial and institutional and commercial real estate portfolios, partially offset by an increase in the private client portfolio.
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NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
NONINTEREST EXPENSE
% Change Q4 2022 vs.
($ In Millions)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Noninterest Expense
Compensation$584.3 $553.3 $510.2 6 %15 %
Employee Benefits103.6 109.9 107.9 (6)(4)
Outside Services232.9 220.9 224.2 5 4 
Equipment and Software229.4 212.4 196.1 8 17 
Occupancy65.7 51.3 51.8 28 27 
Other Operating Expense107.7 82.0 78.7 31 37 
Total Noninterest Expense$1,323.6 $1,229.8 $1,168.9 8 %13 %
End of Period Full-Time Equivalent Staff23,600 23,100 21,100 2 %12 %
Compensation expense increased sequentially primarily due to $30.4 million of severance-related charges and higher salary expense, partially offset by lower incentives. Compensation expense increased compared to the prior-year quarter primarily due to higher salary expense and $30.4 million of severance-related charges, partially offset by favorable currency translation.
Employee benefits expense decreased sequentially primarily due to a decline in pension-related expense, inclusive of a $6.8 million pension settlement charge in the current quarter as compared to a $17.0 million charge in the prior quarter, partially offset by higher medical costs. Employee benefits expense decreased compared to the prior-year quarter primarily due to lower ongoing pension expense associated with a plan remeasurement, partially offset by higher medical costs.
Outside services expense increased sequentially primarily due to higher technical services costs and legal services, partially offset by lower subcustodian expense and consulting services. Outside services expense increased compared to the prior-year quarter primarily due to higher technical services costs, legal services, and consulting services, partially offset by lower third-party advisory fees and subcustodian expense.
Equipment and software expense increased sequentially and compared to the prior-year quarter primarily due to higher software costs driven by continued technology investments as well as amortization.
Occupancy expense increased sequentially and compared to the prior-year quarter primarily due to $14.0 million of charges related to early lease exits.
Other operating expense increased sequentially primarily due to higher business promotion, supplemental compensation plan expense and miscellaneous expense. Other operating expense increased compared to the prior-year quarter primarily due to higher staff-related expense, business promotion and miscellaneous expense.
PROVISION FOR INCOME TAX
% Change Q4 2022 vs.
($ In Millions)Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Net Income
Income before Income Taxes$190.4 $524.5 $509.6 (64)%(63)%
Provision for Income Taxes34.7 129.7 103.2 (73)(66)
Net Income$155.7 $394.8 $406.4 (61)%(62)%
Effective Tax Rate18.2 %24.7 %20.2 %(650)bps(200)bps
bps - basis points
The effective tax rate decreased sequentially and from the prior-year quarter primarily due to the significant decrease in pretax earnings while tax benefits from tax-credit investments and tax-exempt income were constant or slightly increased. The decrease in the prior-year quarter was partially offset by a higher net impact from international operations, including limitations on the U.S. foreign tax credit.
5
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
CAPITAL ACTIONS
The Corporation returned approximately $158.9 million to common shareholders in the current quarter through dividends and the repurchase of shares. During the current quarter, the Corporation declared cash dividends totaling $158.8 million to common stockholders. The Corporation repurchased 2,202 shares of common stock, all of which were withheld related to share-based compensation, at a total cost of $0.1 million ($87.02 average price per share). The Corporation also declared cash dividends totaling $4.7 million to preferred stockholders during the current quarter.
CAPITAL RATIOS
The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at December 31, 2022, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.
The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and The Northern Trust Company determined by Basel III phased-in requirements.

December 31, 2022*September 30, 2022December 31, 2021
Capital Ratios -
Northern Trust Corporation		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital10.8 %11.5 %10.1 %11.4 %11.9 %13.2 %N/A4.5 %
Tier 1 Capital11.8 12.5 11.1 12.5 12.9 14.3 6.06.0 
Total Capital13.9 14.5 12.2 13.5 14.1 15.3 10.08.0 
Tier 1 Leverage7.1 7.1 7.0 7.0 6.9 6.9 N/A4.0 
Supplementary LeverageN/A7.9 N/A7.7 N/A8.2 N/A3.0 
December 31, 2022*September 30, 2022December 31, 2021
Capital Ratios -
The Northern Trust Company		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital11.6 %12.4 %10.7 %12.2 %12.0 %13.5 %6.5 %4.5 %
Tier 1 Capital11.6 12.4 10.7 12.2 12.0 13.5 8.0 6.0 
Total Capital13.5 14.2 11.6 13.0 13.0 14.4 10.0 8.0 
Tier 1 Leverage6.9 6.9 6.7 6.7 6.4 6.4 5.0 4.0 
Supplementary LeverageN/A7.7 N/A7.4 N/A7.6 3.0 3.0 
(*) Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
6
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
The following table presents a reconciliation of interest income, net interest income, net interest margin, and total revenue prepared in accordance with generally accepted accounting principles to such measures on an FTE basis, which are non-generally accepted accounting financial measures. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. 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.
QUARTERS
20222021
($ in Millions)FOURTHTHIRDSECONDFIRSTFOURTH
Net Interest Income
Interest Income - GAAP$1,170.1 $799.3 $524.8 $383.5 $362.2 
Add: FTE Adjustment15.5 12.3 11.1 6.7 10.0 
Interest Income (FTE) - Non-GAAP$1,185.6 $811.6 $535.9 $390.2 $372.2 
Net Interest Income - GAAP$534.5 $513.0 $458.7 $381.0 $360.6 
Add: FTE Adjustment15.5 12.3 11.1 6.7 10.0 
Net Interest Income (FTE) - Non-GAAP$550.0 $525.3 $469.8 $387.7 $370.6 
Net Interest Margin - GAAP1.58 %1.54 %1.31 %1.03 %0.96 %
Net Interest Margin (FTE) - Non-GAAP1.63 %1.58 %1.35 %1.05 %0.99 %
Total Revenue
Total Revenue - GAAP$1,519.0 $1,754.8 $1,768.7 $1,718.7 $1,667.0 
Add: FTE Adjustment15.5 12.3 11.1 6.7 10.0 
Total Revenue (FTE) - Non-GAAP$1,534.5 $1,767.1 $1,779.8 $1,725.4 $1,677.0 

7
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
FORWARD LOOKING STATEMENTS
This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including the factors discussed in Northern Trust’s most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available on Northern Trust’s website. We caution you not to place undue reliance on any forward-looking statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to update its forward-looking statements.
WEBCAST OF FOURTH QUARTER EARNINGS CONFERENCE CALL
Northern Trust’s fourth quarter earnings conference call will be webcast on January 19, 2023.
The live call will be conducted at 8:00 a.m. CT and is accessible on Northern Trust’s website at:
https://www.northerntrust.com/about-us/investor-relations
A recording of the live call will be available on Northern Trust’s website following the live event, for approximately four weeks. Participants will need Windows Media or Adobe Flash software. This earnings release can also be accessed at Northern Trust’s website.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 25 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2022, Northern Trust had assets under custody/administration of US$13.6 trillion, and assets under management of US$1.2 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Twitter @NorthernTrust or Northern Trust Corporation on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

8
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA 
% Change(1)
($ In Millions Except Per Share Data)
 Q4 2022 vs.
Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Noninterest Income
     Trust, Investment and Other Servicing Fees$1,042.1 $1,078.7 $1,111.0 (3)%(6)%
     Foreign Exchange Trading Income65.4 64.7 76.9 1 (15)
     Treasury Management Fees8.3 9.3 10.6 (9)(21)
     Security Commissions and Trading Income35.1 32.1 35.9 9 (2)
     Other Operating Income47.3 57.3 72.3 (18)(35)
     Investment Security Gains (Losses), net(213.7)(0.3)(0.3)N/MN/M
Total Noninterest Income984.5 1,241.8 1,306.4 (21)(25)
Net Interest Income
      Interest Income1,170.1 799.3 362.2 46 N/M
      Interest Expense635.6 286.3 1.6 122 N/M
Net Interest Income534.5 513.0 360.6 4 48 
Total Revenue1,519.0 1,754.8 1,667.0 (13)(9)
Provision for Credit Losses5.0 0.5 (11.5)N/MN/M
Noninterest Expense
     Compensation584.3 553.3 510.2 6 15 
     Employee Benefits103.6 109.9 107.9 (6)(4)
     Outside Services232.9 220.9 224.2 5 4 
     Equipment and Software229.4 212.4 196.1 8 17 
     Occupancy65.7 51.3 51.8 28 27 
     Other Operating Expense107.7 82.0 78.7 31 37 
Total Noninterest Expense1,323.6 1,229.8 1,168.9 8 13 
Income before Income Taxes190.4 524.5 509.6 (64)(63)
Provision for Income Taxes34.7 129.7 103.2 (73)(66)
NET INCOME$155.7 $394.8 $406.4 (61)%(62)%
Preferred Stock Dividends4.7 16.2 4.7 (71)—
NET INCOME APPLICABLE TO COMMON STOCK$151.0 $378.6 $401.7 (60)%(62)%
Earnings Allocated to Participating Securities2.3 3.2 3.0 (29)(26)
Earnings Allocated to Common and Potential Common Shares$148.7 $375.4 $398.7 (60)(63)
Per Common Share
Net Income
     Basic$0.71 $1.80 $1.92 (61)%(63)%
     Diluted0.71 1.80 1.91 (61)(63)
Average Common Equity$10,094.5 $10,050.7 $10,956.7 — %(8)%
Return on Average Common Equity5.9 %14.9 %14.5 %
Return on Average Assets0.42 %1.07 %1.00 %
Cash Dividends Declared per Common Share$0.75 $0.75 $0.70 — %7 %
Average Common Shares Outstanding (000s)
     Basic208,423 208,400207,708
     Diluted208,894 208,889208,593
Common Shares Outstanding (EOP) (000s)208,428 208,416207,762
(1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
9
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA
($ In Millions Except Per Share Data)TWELVE MONTHS
20222021
% Change(1)
Noninterest Income
     Trust, Investment and Other Servicing Fees$4,432.6 $4,361.1 2 %
     Foreign Exchange Trading Income288.6 292.6 (1)
     Treasury Management Fees39.3 44.3 (11)
     Security Commissions and Trading Income136.2 140.2 (3)
     Other Operating Income191.3 243.9 (22)
     Investment Security Gains (Losses), net(214.0)(0.3)N/M
Total Noninterest Income4,874.0 5,081.8 (4)
Net Interest Income
       Interest Income2,877.7 1,406.5 105 
       Interest Expense990.5 23.8 N/M
Net Interest Income1,887.2 1,382.7 36 
Total Revenue6,761.2 6,464.5 5 
Provision for Credit Losses12.0 (81.5)N/M
Noninterest Expense
     Compensation2,248.0 2,011.0 12 
     Employee Benefits437.4 431.4 1 
     Outside Services880.3 849.4 4 
     Equipment and Software838.8 736.3 14 
     Occupancy219.1 208.7 5 
     Other Operating Expense359.3 299.1 20 
Total Noninterest Expense4,982.9 4,535.9 10 
Income before Income Taxes1,766.3 2,010.1 (12)
Provision for Income Taxes430.3 464.8 (7)
NET INCOME$1,336.0 $1,545.3 (14)%
Preferred Stock Dividends
41.8 41.8 — 
NET INCOME APPLICABLE TO COMMON STOCK$1,294.2 $1,503.5 (14)%
Earnings Allocated to Participating Securities11.8 12.9 (9)
Earnings Allocated to Common and Potential Common Shares$1,282.4 $1,490.6 (14)%
Per Common Share
Net Income
     Basic$6.16 $7.16 (14)%
     Diluted6.14 7.14 (14)
Average Common Equity$10,196.6 $10,812.1 (6)%
Return on Average Common Equity12.7 %13.9 %
Return on Average Assets0.88 %0.99 %
Cash Dividends Declared per Common Share$2.90 $2.80 4 %
Average Common Shares Outstanding (000s)
     Basic208,309 208,076 
     Diluted208,867 208,899 
Common Shares Outstanding (EOP) (000s)208,428 207,762 
(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
10
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
($ In Millions) 
% Change(1)
December 31, 2022 vs.
December 31, 2022September 30, 2022December 31, 2021September 30, 2022December 31, 2021
Assets
Federal Reserve and Other Central Bank Deposits$39,961.9 $39,582.4 $64,495.1 1 %(38)%
Interest-Bearing Due from and Deposits with Banks(2)
4,926.6 4,097.4 3,849.2 20 28 
Federal Funds Sold32.0 30.1 — 6 N/M
Securities Purchased under Agreements to Resell1,070.3 1,166.2 686.4 (8)56 
Debt Securities
Available for Sale26,699.9 26,979.3 38,010.5 (1)(30)
Held to Maturity25,036.1 25,249.8 23,564.5 (1)6 
Trading Account95.2 0.1 0.3 N/MN/M
Total Debt Securities51,831.2 52,229.2 61,575.3 (1)(16)
Loans and Leases42,893.3 43,991.9 40,480.6 (2)6 
Other Interest-Earning Assets(3)
1,769.4 1,641.3 1,189.4 8 49 
Total Earning Assets142,484.7 142,738.5 172,276.0 — (17)
Allowance for Credit Losses(161.1)(154.4)(150.6)4 7 
Cash and Due from Banks and Other Central Bank Deposits(4)
1,737.2 2,000.3 1,244.1 (13)40 
Buildings and Equipment500.5 469.2 488.7 7 2 
Client Security Settlement Receivables1,698.3 3,077.3 1,941.2 (45)(13)
Goodwill691.3 679.0 706.2 2 (2)
Other Assets8,085.8 11,029.7 7,384.2 (27)10 
Total Assets$155,036.7 $159,839.6 $183,889.8 (3)%(16)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$31,128.6 $30,968.5 $35,003.1 1 %(11)%
       Savings Certificates and Other Time1,981.3 1,217.1 842.7 63 135 
       Non-U.S. Offices - Interest-Bearing65,481.9 68,503.7 75,767.1 (4)(14)
Total Interest-Bearing Deposits98,591.8 100,689.3 111,612.9 (2)(12)
Federal Funds Purchased1,896.9 4,364.8 0.2 (57)N/M
Securities Sold under Agreements to Repurchase567.2 561.4 531.9 1 7 
Other Borrowings7,592.3 7,153.6 3,583.8 6 112 
Senior Notes2,724.2 2,707.4 2,505.5 1 9 
Long-Term Debt2,066.2 1,068.3 1,145.7 93 80 
Total Interest-Related Funds113,438.6 116,544.8 119,380.0 (3)(5)
Demand and Other Noninterest-Bearing Deposits25,340.3 27,858.1 48,315.5 (9)(48)
Other Liabilities4,998.3 4,406.3 4,177.5 13 20 
Total Liabilities143,777.2 148,809.2 171,873.0 (3)(16)
Common Equity10,374.6 10,145.5 11,131.9 2 (7)
Preferred Equity884.9 884.9 884.9 — — 
Total Equity11,259.5 11,030.4 12,016.8 2 (6)
Total Liabilities and Stockholders’ Equity$155,036.7 $159,839.6 $183,889.8 (3)%(16)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)    Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
11
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
($ In Millions)
% Change(1)
 Q4 2022 vs.
Q4 2022Q3 2022Q4 2021Q3 2022Q4 2021
Assets
Federal Reserve and Other Central Bank Deposits$32,755.2 $30,548.7 $40,986.0 7 %(20)%
Interest-Bearing Due from and Deposits with Banks(2)
4,186.1 3,976.8 4,777.6 5 (12)
Federal Funds Sold14.0 5.1 0.1 175 N/M
Securities Purchased under Agreements to Resell1,165.5 1,270.9 876.0 (8)33 
Debt Securities
       Available for Sale26,742.4 28,482.8 38,216.1 (6)(30)
Held to Maturity25,135.3 25,126.6 22,960.0 — 9 
       Trading Account46.4 0.4 0.5 N/MN/M
Total Debt Securities51,924.1 53,609.8 61,176.6 (3)(15)
Loans and Leases42,329.4 41,466.4 39,860.4 2 6 
Other Interest-Earning Assets(3)
1,414.2 1,268.8 1,157.3 11 22 %
Total Earning Assets133,788.5 132,146.5 148,834.0 1 (10)
Allowance for Credit Losses(154.6)(154.1)(155.8)— (1)
Cash and Due from Banks and Other Central Bank Deposits(4)
1,773.7 1,903.1 2,123.6 (7)(16)
Buildings and Equipment491.0 481.2 497.1 2 (1)
Client Security Settlement Receivables1,809.9 1,667.1 1,638.5 9 10 
Goodwill685.8 685.5 705.4 — (3)
Other Assets9,409.3 9,672.9 7,711.0 (3)22 
Total Assets$147,803.6 $146,402.2 $161,353.8 1 %(8)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$28,488.7 $29,089.3 $30,676.1 (2)%(7)%
       Savings Certificates and Other Time1,610.5 986.0 856.5 63 88 
       Non-U.S. Offices - Interest-Bearing64,024.0 64,057.3 71,098.6 — (10)
Total Interest-Bearing Deposits94,123.2 94,132.6 102,631.2 — (8)
Federal Funds Purchased2,704.7 1,967.5 0.2 37 N/M
Securities Sold under Agreements to Repurchase392.4 489.6 313.5 (20)25 
Other Borrowings7,933.2 5,991.1 4,788.9 32 66 
Senior Notes2,721.5 2,969.6 2,510.3 (8)8 
Long-Term Debt1,718.6 1,087.6 1,150.8 58 49 
Floating Rate Capital Debt— — 42.3 N/M(100)
Total Interest-Related Funds109,593.6 106,638.0 111,437.2 3 (2)
Demand and Other Noninterest-Bearing Deposits22,186.3 24,355.5 33,389.6 (9)(34)
Other Liabilities5,044.3 4,473.1 4,685.4 13 8 
Total Liabilities136,824.2 135,466.6 149,512.2 1 (8)
Common Equity10,094.5 10,050.7 10,956.7 — (8)
Preferred Equity884.9 884.9 884.9 — — 
Total Equity10,979.4 10,935.6 11,841.6 — (7)
Total Liabilities and Stockholders’ Equity$147,803.6 $146,402.2 $161,353.8 1 %(8)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)     Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
12
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA QUARTERS
($ In Millions Except Per Share Data)20222021
FOURTHTHIRDSECONDFIRSTFOURTH
Net Income Summary
   Trust, Investment and Other Servicing Fees $1,042.1 $1,078.7 $1,143.4 $1,168.4 $1,111.0 
   Other Noninterest Income(57.6)163.1 166.6 169.3 195.4 
   Net Interest Income 534.5 513.0 458.7 381.0 360.6 
     Total Revenue 1,519.0 1,754.8 1,768.7 1,718.7 1,667.0 
   Provision for Credit Losses 5.0 0.5 4.5 2.0 (11.5)
   Noninterest Expense1,323.6 1,229.8 1,223.6 1,205.9 1,168.9 
     Income before Income Taxes190.4 524.5 540.6 510.8 509.6 
   Provision for Income Taxes34.7 129.7 144.4 121.5 103.2 
     Net Income $155.7 $394.8 $396.2 $389.3 $406.4 
Per Common Share
   Net Income - Basic$0.71 $1.80 $1.86 $1.78 $1.92 
                      - Diluted0.71 1.80 1.86 1.77 1.91 
   Cash Dividends Declared per Common Share0.75 0.75 0.70 0.70 0.70 
   Book Value (EOP)49.78 48.68 48.87 50.51 53.58 
   Market Value (EOP)88.49 85.56 96.48 116.45 119.61 
Financial Ratios
   Return on Average Common Equity5.9 %14.9 %15.7 %14.2 %14.5 %
   Return on Average Assets0.42 1.07 1.03 0.97 1.00 
   Net Interest Margin (GAAP)1.58 1.54 1.31 1.03 0.96 
   Net Interest Margin (FTE*)1.63 1.58 1.35 1.05 0.99 
Assets Under Custody / Administration ($ in Billions) - End Of Period
Asset Servicing$12,705.5 $11,954.0 $12,812.2 $14,513.0 $15,183.2 
   Wealth Management898.5 868.0 921.5 1,031.1 1,065.6 
     Total Assets Under Custody / Administration$13,604.0 $12,822.0 $13,733.7 $15,544.1 $16,248.8 
Assets Under Custody ($ In Billions) - End Of Period
Asset Servicing$9,712.3 $9,125.5 $9,771.2 $10,987.5 $11,554.8 
   Wealth Management892.3 860.8 913.0 1,022.9 1,057.5 
     Total Assets Under Custody$10,604.6 $9,986.3 $10,684.2 $12,010.4 $12,612.3 
Assets Under Management ($ In Billions) - End Of Period
Asset Servicing$898.1 $873.7 $950.0 $1,091.6 $1,191.0 
   Wealth Management351.4 336.2 352.8 396.2 416.1 
     Total Assets Under Management$1,249.5 $1,209.9 $1,302.8 $1,487.8 $1,607.1 
Asset Quality ($ In Millions) - End Of Period
   Nonaccrual Loans and Leases$45.9 $76.4 $89.7 $100.8 $122.3 
   Other Real Estate Owned (OREO)— — 0.1 0.2 3.0 
     Total Nonaccrual Assets$45.9 $76.4 $89.8 $101.0 $125.3 
   Nonaccrual Assets / Loans and Leases and OREO0.11 %0.17 %0.22 %0.26 %0.31 %
   Gross Charge-offs$(0.5)$(5.4)$— $(0.1)$(0.3)
Gross Recoveries 0.5 0.9 5.5 3.3 1.4 
     Net Recoveries (Charge-offs)$— $(4.5)$5.5 $3.2 $1.1 
   Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases— %(0.04)%0.05 %0.03 %0.01 %
   Allowance for Credit Losses Assigned to:
     Loans and Leases$144.3 $138.7 $138.2 $136.3 $138.4 
Undrawn Loan Commitments and Standby Letters of Credit38.5 40.7 43.5 37.5 34.1 
Debt Securities and Other Financial Assets18.1 16.5 18.2 16.1 12.2 
   Loans and Leases Allowance / Nonaccrual Loans and Leases3.1 x1.8 x1.5 x1.4 x1.1 x
(*)    Net interest margin presented on an FTE basis is a non-generally accepted accounting principle financial measure that facilitates the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
13