EX-99.3 4 q42022trendreport-wordrepo.htm EX-99.3 Document
Exhibit 99.3
reportsa29.jpg



Financial Trends
Fourth Quarter 2022
January 19, 2023



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 Fourth Quarter 2022 earnings press release and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.



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


Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Profitability:
$1,556.4 $1,492.2 $1,209.3 $1,545.3 $1,336.0 Net Income$375.1 $368.1 $395.7 $406.4 $389.3 $396.2 $394.8 $155.7 
1,489.9 1,428.9 1,141.0 1,490.6 1,282.4 Earnings Allocated to Common and Potential355.2 360.2 376.5 398.7 370.0 388.3 375.4 148.7 
  Common Shares
$6.68 $6.66 $5.48 $7.16 $6.16 Basic Earnings Per Share$1.71 $1.73 $1.81 $1.92 $1.78 $1.86 $1.80 $0.71 
6.64 6.63 5.46 7.14 6.14 Diluted Earnings Per Share1.70 1.72 1.80 1.91 1.77 1.86 1.80 0.71 
35 %— %(18 %)31 %(14 %)Diluted EPS Growth over Previous Year10 %18 %36 %70 %4 %8 %— %(63 %)
16.2 %14.9 %11.2 %13.9 %12.7 %Return on Average Common Equity13.7 %13.7 %13.7 %14.5 %14.2 %15.7 %14.9 %5.9 %
1.27 %1.27 %0.88 %0.99 %0.88 %Return on Average Assets0.99 %0.96 %1.00 %1.00 %0.97 %1.03 %1.07 %0.42 %
33.3 %32.4 %27.1 %31.5 %26.6 %
Profit Margin (pre-tax) (FTE)(1)
31.6 %31.1 %32.2 %31.0 %30.0 %31.0 %30.4 %13.4 %
25.9 %24.4 %19.7 %23.8 %19.6 %
Profit Margin (after-tax) (FTE)(1)
23.6 %23.2 %24.1 %24.2 %22.6 %22.3 %22.3 %10.1 %
72.3 %72.0 %75.9 %78.2 %71.6 %
Noninterest Income to Total Revenue (FTE)(1)
78.2 %78.4 %78.3 %77.9 %77.5 %73.6 %70.3 %64.2 %
62.5 %63.1 %65.1 %67.1 %65.1 %
Trust Fees to Total Revenue (FTE)(1)
66.9 %67.7 %67.6 %66.2 %67.7 %64.2 %61.0 %67.9 %
20.5 %23.2 %25.7 %23.1 %24.4 %Effective Tax Rate (US GAAP)24.4 %24.3 %23.6 %20.2 %23.8 %26.7 %24.7 %18.2 %
22.1 %24.5 %27.2 %24.5 %26.3 %
Effective Tax Rate (FTE)(1)
25.4 %25.6 %25.2 %21.8 %24.8 %28.2 %26.4 %24.4 %
Capital Ratios:(2)
Standardized Approach
12.9 %12.7 %12.8 %11.9 %10.8 %Common Equity Tier 1 Capital12.0 %12.0 %11.9 %11.9 %11.4 %10.5 %10.1 %10.8 %
14.1 %14.5 %13.9 %12.9 %11.8 %Tier 1 Capital13.0 %13.1 %12.9 %12.9 %12.4 %11.5 %11.1 %11.8 %
16.1 %16.3 %15.6 %14.1 %13.9 %Total Capital14.5 %14.5 %14.3 %14.1 %13.6 %12.6 %12.2 %13.9 %
8.0 %8.7 %7.6 %6.9 %7.1 %Tier 1 Leverage6.9 %7.1 %7.1 %6.9 %6.5 %6.7 %7.0 %7.1 %
Advanced Approach
13.7 %13.2 %13.4 %13.2 %11.5 %Common Equity Tier 1 Capital12.8 %13.1 %13.0 %13.2 %12.1 %11.6 %11.4 %11.5 %
15.0 %15.0 %14.5 %14.3 %12.5 %Tier 1 Capital14.0 %14.2 %14.1 %14.3 %13.2 %12.7 %12.5 %12.5 %
16.9 %16.8 %15.9 %15.3 %14.5 %Total Capital15.2 %15.5 %15.4 %15.3 %14.2 %13.7 %13.5 %14.5 %
8.0 %8.7 %7.6 %6.9 %7.1 %Tier 1 Leverage6.9 %7.1 %7.1 %6.9 %6.5 %6.7 %7.0 %7.1 %
7.0 %7.6 %8.6 %8.2 %7.9 %
Supplementary Leverage (3) (4)
8.1 %8.2 %8.4 %8.2 %7.9 %7.6 %7.7 %7.9 %
Per Share Information / Ratios:
$1.94 $2.60 $2.80 $2.80 $2.90 Cash Dividends Declared Per Common Share$0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.75 $0.75 
29 %39 %51 %39 %47 %Dividend Payout Ratio41 %41 %39 %37 %40 %38 %42 %106 %
$83.59 $106.24 $93.14 $119.61 $88.49 Market Value Per Share (End of Period)$105.11 $115.62 $107.81 $119.61 $116.45 $96.48 $85.56 $88.49 
12.6 16.0 17.1 16.8 14.4 Stock Price Multiple of Earnings18.8 19.7 17.0 16.8 16.2 13.1 11.7 14.4 
(based on trailing 4 quarters of diluted EPS)
$43.95 $46.82 $51.87 $53.58 $49.78 Book Value Per Common Share (End of Period)$50.80 $52.49 $53.04 $53.58 $50.51 $48.87 $48.68 $49.78 
(1)
Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
(2)
Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
(3)
Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
(4)
From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.
1

Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
TWELVE MONTHSCHANGEFOURTH QUARTERCHANGE
20222021$%20222021$%
$2,496.3 $2,487.3 $9.0 — %Asset Servicing Trust, Investment and Other Servicing Fees$588.0 $625.1 $(37.1)(6)%
1,936.3 1,873.8 62.5 3 %WM Trust, Investment and Other Servicing Fees 454.1 485.9 (31.8)(7)%
4,432.6 4,361.1 71.5 2 %     Total Fees1,042.1 1,111.0 (68.9)(6)%
288.6 292.6 (4.0)(1)%Foreign Exchange Trading Income65.4 76.9 (11.5)(15)%
39.3 44.3 (5.0)(11)%Treasury Management Fees8.3 10.6 (2.3)(21)%
136.2 140.2 (4.0)(3)%Security Commissions and Trading Income35.1 35.9 (0.8)(2)%
191.3 243.9 (52.6)(22)%Other Operating Income47.3 72.3 (25.0)(35)%
(214.0)(0.3)(213.7)N/MInvestment Security Gains (Losses), net(213.7)(0.3)(213.4)N/M
4,874.0 5,081.8 (207.8)(4)%     Total Noninterest Income984.5 1,306.4 (321.9)(25)%
2,923.3 1,442.1 1,481.2 103 %Interest Income (FTE*)1,185.6 372.2 813.4 N/M
990.5 23.8 966.7 N/MInterest Expense635.6 1.6 634.0 N/M
1,932.8 1,418.3 514.5 36 %Net Interest Income (FTE*)550.0 370.6 179.4 48 %
6,806.8 6,500.1 306.7 5 %     Total Revenue (FTE*)1,534.5 1,677.0 (142.5)(8)%
12.0 (81.5)93.5 N/MProvision for Credit Losses5.0 (11.5)16.5 N/M
2,248.0 2,011.0 237.0 12 %Compensation584.3 510.2 74.1 15 %
437.4 431.4 6.0 1 %Employee Benefits103.6 107.9 (4.3)(4)%
880.3 849.4 30.9 4 %Outside Services 232.9 224.2 8.7 4 %
838.8 736.3 102.5 14 %Equipment and Software229.4 196.1 33.3 17 %
219.1 208.7 10.4 5 %Occupancy65.7 51.8 13.9 27 %
359.3 299.1 60.2 20 %Other Operating Expense107.7 78.7 29.0 37 %
4,982.9 4,535.9 447.0 10 %     Total Noninterest Expense1,323.6 1,168.9 154.7 13 %
1,811.9 2,045.7 (233.8)(11)%     Income before Income Taxes (FTE*)205.9 519.6 (313.7)(60)%
430.3 464.8 (34.5)(7)%Provision for Income Taxes34.7 103.2 (68.5)(66)%
45.6 35.6 10.0 28 %Taxable Equivalent Adjustment15.5 10.0 5.5 55 %
475.9 500.4 (24.5)(5)%     Total Taxes (FTE*)50.2 113.2 (63.0)(56)%
$1,336.0 $1,545.3 $(209.3)(14)%     Net Income$155.7 $406.4 $(250.7)(62)%
$41.8 $41.8 $— — %Dividends on Preferred Stock$4.7 $4.7 $— — %
11.8 12.9 (1.1)(9)%Earnings Allocated to Participating Securities2.3 3.0 (0.7)(26)%
1,282.4 1,490.6 (208.2)(14)%Earnings Allocated to Common and Potential Common Shares148.7 398.7 (250.0)(63)%
$6.16 $7.16 $(1.00)(14)%Earnings Per Share - Basic$0.71 $1.92 $(1.21)(63)%
$6.14 $7.14 $(1.00)(14)%Earnings Per Share - Diluted$0.71 $1.91 $(1.20)(63)%
208,309 208,076 Average Basic Shares (000s)208,423 207,708 
208,867 208,899 Average Diluted Shares (000s)208,894 208,593 
208,428 207,762 End of Period Shares Outstanding (000s)208,428 207,762 
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.
2

Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
2,173.1 2,211.5 2,321.6 2,487.3 2,496.3 Asset Servicing Trust, Investment and Other Servicing Fees620.5 611.5 630.2 625.1 662.4 642.7 603.2 588.0 
1,580.6 1,640.6 1,673.4 1,873.8 1,936.3 WM Trust, Investment and Other Servicing Fees443.2 463.9 480.8 485.9 506.0 500.7 475.5 454.1 
3,753.7 3,852.1 3,995.0 4,361.1 4,432.6      Total Fees1,063.7 1,075.4 1,111.0 1,111.0 1,168.4 1,143.4 1,078.7 1,042.1 
307.2 250.9 290.4 292.6 288.6 Foreign Exchange Trading Income78.7 70.6 66.4 76.9 80.9 77.6 64.7 65.4 
51.8 44.5 45.4 44.3 39.3 Treasury Management Fees11.2 11.3 11.2 10.6 11.1 10.6 9.3 8.3 
98.3 103.6 133.2 140.2 136.2 Security Commissions and Trading Income34.8 33.0 36.5 35.9 36.2 32.8 32.1 35.1 
127.5 145.5 194.0 243.9 191.3 Other Operating Income54.9 54.4 62.3 72.3 41.1 45.6 57.3 47.3 
(1.0)(1.4)(0.4)(0.3)(214.0)Investment Security Gains (Losses), net— — — (0.3)— — (0.3)(213.7)
4,337.5 4,395.2 4,657.6 5,081.8 4,874.0      Total Noninterest Income1,243.3 1,244.7 1,287.4 1,306.4 1,337.7 1,310.0 1,241.8 984.5 
1,663.9 1,710.7 1,477.6 1,418.3 1,932.8 Net Interest Income (FTE*)346.7 343.9 357.1 370.6 387.7 469.8 525.3 550.0 
6,001.4 6,105.9 6,135.2 6,500.1 6,806.8      Total Revenue (FTE*)1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 1,534.5 
(14.5)(14.5)125.0 (81.5)12.0 Provision for Credit Losses(30.0)(27.0)(13.0)(11.5)2.0 4.5 0.5 5.0 
1,806.9 1,859.0 1,947.1 2,011.0 2,248.0 Compensation518.5 486.3 496.0 510.2 563.9 546.5 553.3 584.3 
356.7 355.2 387.7 431.4 437.4 Employee Benefits103.4 118.4 101.7 107.9 104.3 119.6 109.9 103.6 
739.4 774.5 763.1 849.4 880.3 Outside Services196.4 218.1 210.7 224.2 213.4 213.1 220.9 232.9 
582.2 612.1 673.5 736.3 838.8 Equipment and Software176.7 178.3 185.2 196.1 193.5 203.5 212.4 229.4 
201.1 212.9 230.1 208.7 219.1 Occupancy50.8 52.2 53.9 51.8 51.1 51.0 51.3 65.7 
330.6 329.8 346.7 299.1 359.3 Other Operating Expense71.7 67.5 81.2 78.7 79.7 89.9 82.0 107.7 
4,016.9 4,143.5 4,348.2 4,535.9 4,982.9      Total Noninterest Expense1,117.5 1,120.8 1,128.7 1,168.9 1,205.9 1,223.6 1,229.8 1,323.6 
1,999.0 1,976.9 1,662.0 2,045.7 1,811.9      Income before Income Taxes (FTE*)502.5 494.8 528.8 519.6 517.5 551.7 536.8 205.9 
401.4 451.9 418.3 464.8 430.3 Provision for Income Taxes120.8 118.4 122.4 103.2 121.5 144.4 129.7 34.7 
41.2 32.8 34.4 35.6 45.6 Taxable Equivalent Adjustment6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5 
442.6 484.7 452.7 500.4 475.9      Total Taxes (FTE*)127.4 126.7 133.1 113.2 128.2 155.5 142.0 50.2 
$1,556.4 $1,492.2 $1,209.3 $1,545.3 $1,336.0      Net Income$375.1 $368.1 $395.7 $406.4 $389.3 $396.2 394.8 $155.7 
$6.68 $6.66 $5.48 $7.16 $6.16 Earnings Per Share - Basic$1.71 $1.73 $1.81 $1.92 $1.78 $1.86 $1.80 $0.71 
6.64 6.63 5.46 7.14 6.14 Earnings Per Share - Diluted1.70 1.72 1.80 1.91 1.77 1.86 1.80 0.71 
224,488 215,601 209,008 208,899 208,867 Average Diluted Shares (000s)208,946 209,138 208,923 208,593 208,809 208,878 208,889 208,894 
$46.4 $46.4 $56.2 $41.8 $41.8 Preferred Dividends**$16.2 $4.7 $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.
3

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Asset Servicing
$1,501.1 $1,549.3 $1,586.1 $1,818.8 $1,700.1 Custody & Fund Administration$446.0 $454.9 $460.2 $457.7 $452.7 $433.8 $407.3 $406.3 
436.8 445.7 511.1 443.5 555.1 Investment Management115.9 100.7 113.6 113.3 146.9 148.4 136.0 123.8 
102.0 87.2 88.0 76.7 81.4 Securities Lending18.2 19.5 20.2 18.8 18.8 21.6 21.7 19.3 
133.2 129.3 136.4 148.3 159.7 Other40.4 36.4 36.2 35.3 44.0 38.9 38.2 38.6 
$2,173.1 $2,211.5 $2,321.6 $2,487.3 $2,496.3 Total Asset Servicing Trust, Investment and Other Servicing Fees$620.5 $611.5 $630.2 $625.1 $662.4 $642.7 $603.2 $588.0 
Wealth Management
$607.8 $619.3 $607.3 $698.7 $692.6 Central$164.2 $174.3 $178.8 $181.4 $181.7 $177.4 $171.3 $162.2 
401.7 422.2 442.1 509.3 504.0 East119.0 127.2 130.2 132.9 134.0 128.1 124.1 117.8 
320.0 330.9 337.7 380.2 382.1 West90.8 93.8 97.0 98.6 101.4 98.7 92.5 89.5 
251.1 268.2 286.3 285.6 357.6 Global Family Office69.2 68.6 74.8 73.0 88.9 96.5 87.6 84.6 
$1,580.6 $1,640.6 $1,673.4 $1,873.8 $1,936.3 Total WM Trust, Investment and Other Servicing Fees$443.2 $463.9 $480.8 $485.9 $506.0 $500.7 $475.5 $454.1 

4

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
CHANGE
Assets12/31/202212/31/2021$%
Federal Reserve and Other Central Bank Deposits$39,961.9 $64,495.1 $(24,533.2)(38)%
Interest-Bearing Due from and Deposits with Banks(1)
4,926.6 3,849.2 1,077.4 28 %
Federal Funds Sold32.0 — 32.0 N/M
Securities Purchased under Agreements to Resell1,070.3 686.4 383.9 56 %
Debt Securities:
Available For Sale26,699.9 38,010.5 (11,310.6)(30)%
Held To Maturity25,036.1 23,564.5 1,471.6 6 %
Trading Account95.2 0.3 94.9 N/M
   Total Debt Securities51,831.2 61,575.3 (9,744.1)(16)%
Loans and Leases42,893.3 40,480.6 2,412.7 6 %
Other Interest-Earning Assets(2)
1,769.4 1,189.4 580.0 49 %
Total Earning Assets142,484.7 172,276.0 (29,791.3)(17)%
Allowance for Credit Losses(161.1)(150.6)(10.5)7 %
Cash and Due From Banks and Other Central Bank Deposits(3)
1,737.2 1,244.1 493.1 40 %
Buildings and Equipment500.5 488.7 11.8 2 %
Client Security Settlement Receivables1,698.3 1,941.2 (242.9)(13)%
Goodwill691.3 706.2 (14.9)(2)%
Other Assets8,085.8 7,384.2 701.6 10 %
Total Assets$155,036.7 $183,889.8 $(28,853.1)(16)%
Liabilities and Stockholders' Equity
Savings, Money Market and Other$31,128.6 $35,003.1 $(3,874.5)(11)%
Savings Certificates and Other Time1,981.3 842.7 1,138.6 135 %
Non- U.S. Offices - Interest-Bearing65,481.9 75,767.1 (10,285.2)(14)%
Total Interest-Bearing Deposits98,591.8 111,612.9 (13,021.1)(12)%
Federal Funds Purchased1,896.9 0.2 1,896.7 N/M
Securities Sold under Agreements to Repurchase567.2 531.9 35.3 7 %
Other Borrowings7,592.3 3,583.8 4,008.5 112 %
Senior Notes2,724.2 2,505.5 218.7 9 %
Long-Term Debt2,066.2 1,145.7 920.5 80 %
Total Interest-Related Funds113,438.6 119,380.0 (5,941.4)(5)%
Demand and Other Noninterest-Bearing Deposits25,340.3 48,315.5 (22,975.2)(48)%
Other Liabilities4,998.3 4,177.5 820.8 20 %
Total Liabilities143,777.2 171,873.0 (28,095.8)(16)%
Common Equity10,374.6 11,131.9 (757.3)(7)%
Preferred Equity884.9 884.9 — — %
Total Stockholders' Equity11,259.5 12,016.8 (757.3)(6)%
Total Liabilities and Stockholders' Equity$155,036.7 $183,889.8 $(28,853.1)(16)%
(1)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(2)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.
(3)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
5

Northern Trust Corporation
BALANCE SHEET TRENDS
  PERIOD AVERAGES(1)
($ in Millions)
20212022
20182019202020212022Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$23,899 $18,511 $27,904 $39,028 $36,249 Federal Reserve and Other Central Bank Deposits$37,130 $37,415 $40,523 $40,986 $45,200 $36,691 $30,549 $32,755 
6,023 5,997 5,401 5,780 4,193 
Interest-Bearing Due from and Deposits with Banks(2)
6,464 6,737 5,165 4,778 4,384 4,228 3,977 4,186 
21 13 2 — 6 Federal Funds Sold— — — — 1 2 5 14 
1,478 835 1,253 1,067 1,071 Securities Purchased under Agreements to Resell1,551 1,012 841 876 692 1,149 1,271 1,166 
Debt Securities:
35,240 38,016 40,643 38,987 32,060 Available For Sale42,664 37,618 37,515 38,216 37,496 35,677 28,483 26,742 
14,258 11,650 14,353 20,617 22,970 Held To Maturity17,352 21,798 20,300 22,960 21,308 20,244 25,127 25,135 
1 1 1 1 12 Trading Account— 1 1 1 1 — — 46 
49,499 49,667 54,997 59,605 55,042    Total Debt Securities60,017 59,416 57,816 61,177 58,805 55,921 53,610 51,924 
32,029 31,053 33,499 37,208 41,031 Loans and Leases34,201 36,282 38,411 39,860 39,544 40,747 41,466 42,329 
783 1,034 1,077 1,186 1,248 
Other Interest-Earning Assets(3)
1,225 1,163 1,198 1,157 1,143 1,163 1,269 1,414 
113,731 107,109 124,133 143,873 138,839 Total Earning Assets140,589 142,024 143,953 148,834 149,768 139,902 132,147 133,789 
(126)(111)(178)(173)(154)Allowance for Credit Losses(199)(177)(161)(156)(152)(156)(154)(155)
2,534 2,394 2,603 2,286 2,070 
Cash and Due From Banks and Other Central Bank Deposits(4)
2,615 2,403 2,012 2,124 2,047 2,559 1,903 1,774 
439 426 509 503 489 Buildings and Equipment509 505 500 497 495 488 481 491 
1,002 1,070 1,358 1,530 1,722 Client Security Settlement Receivables1,669 1,533 1,284 1,639 1,826 1,588 1,667 1,810 
643 683 695 707 692 Goodwill707 708 709 705 704 694 686 686 
4,725 5,981 7,691 7,637 8,894 Other Assets7,367 7,305 8,156 7,711 7,455 9,010 9,673 9,409 
$122,947 $117,551 $136,811 $156,363 $152,552 Total Assets$153,256 $154,300 $156,453 $161,354 $162,143 $154,084 $146,402 $147,804 
Liabilities and Stockholders' Equity
$15,149 $16,578 $23,396 $28,339 $30,205 Savings, Money Market and Other$26,736 $27,427 $28,472 $30,676 $32,329 $30,968 $29,089 $28,489 
871 868 1,266 887 1,060 Savings Certificates and Other Time924 899 871 857 842 792 986 1,611 
58,557 54,885 60,486 69,713 65,031 Non- U.S. Offices - Interest-Bearing68,306 69,202 70,211 71,099 68,200 63,901 64,057 64,024 
74,577 72,331 85,149 98,940 96,296 Total Interest-Bearing Deposits95,965 97,528 99,554 102,631 101,371 95,661 94,133 94,123 
2,763 1,267 981 191 1,408 Federal Funds Purchased406 195 166 — — 923 1,968 2,705 
525 339 218 232 434 Securities Sold under Agreements to Repurchase90 229 293 314 254 597 490 392 
7,496 7,753 6,401 5,050 5,464 Other Borrowings4,681 5,196 5,527 4,789 3,691 4,187 5,991 7,933 
1,704 2,389 3,234 2,856 2,756 Senior Notes3,058 3,023 2,841 2,510 2,442 2,885 2,970 2,722 
1,297 1,139 1,189 1,166 1,259 Long-Term Debt1,179 1,169 1,166 1,151 1,128 1,096 1,088 1,719 
278 278 278 218 — Floating Rate Capital Debt278 278 278 42 — — — — 
88,638 85,495 97,450 108,653 107,616 Total Interest-Related Funds105,656 107,617 109,824 111,437 108,886 105,348 106,638 109,594 
20,527 17,456 23,362 31,144 29,296 Demand and Other Noninterest-Bearing Deposits30,451 30,469 30,241 33,390 37,129 33,733 24,356 22,186 
3,553 3,952 4,806 4,870 4,558 Other Liabilities5,611 4,663 4,534 4,685 4,616 4,096 4,473 5,044 
112,718 106,903 125,618 144,666 141,471 Total Liabilities141,718 142,749 144,600 149,512 150,632 143,177 135,467 136,824 
9,347 9,705 10,307 10,812 10,197 Common Equity10,653 10,666 10,968 10,957 10,626 10,022 10,051 10,095 
882 943 886 885 885 Preferred Equity885 885 885 885 885 885 885 885 
10,229 10,648 11,193 11,697 11,081 Total Stockholders' Equity11,537 11,551 11,853 11,842 11,511 10,907 10,936 10,979 
$122,947 $117,551 $136,811 $156,363 $152,552 Total Liabilities and Stockholders' Equity$153,256 $154,300 $156,453 $161,354 $162,143 $154,084 $146,402 $147,804 
(1)
Summations may not equal due to rounding
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.
6

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
20212022
20182019202020212022Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
19.4 %15.7 %20.4 %25.0 %23.8 %Federal Reserve and Other Central Bank Deposits24.2 %24.2 %25.9 %25.4 %27.9 %23.8 %20.9 %22.2 %
4.9 5.1 3.9 3.7 2.7 
Interest-Bearing Due from and Deposits with Banks(2)
4.2 4.4 3.3 3.0 2.7 2.7 2.7 2.8 
— — — — — Federal Funds Sold— — — — — — — — 
1.2 0.7 0.9 0.7 0.7 Securities Purchased under Agreements to Resell1.0 0.7 0.5 0.5 0.4 0.7 0.9 0.8 
Debt Securities:
28.7 32.3 29.7 24.9 21.0 Available For Sale27.8 24.4 37.0 23.7 23.1 23.2 19.5 18.1 
11.6 9.9 10.5 13.2 15.1 Held To Maturity11.3 14.1 13.0 14.2 13.1 13.1 17.2 17.0 
— — — — — Trading Account— — — — — — — — 
40.3 42.3 40.2 38.1 36.1    Total Debt Securities39.2 38.5 37.0 37.9 36.3 36.3 36.6 35.1 
26.1 26.4 24.5 23.8 26.9 Loans and Leases22.3 23.5 24.6 24.7 24.4 26.4 28.3 28.6 
0.6 0.9 0.8 0.8 0.8 
Other Interest-Earning Assets(3)
0.8 0.8 0.8 0.7 0.7 0.8 0.9 1.0 
92.5 91.1 90.7 92.0 91.0 Total Earning Assets91.7 92.0 92.0 92.2 92.4 90.8 90.3 90.5 
(0.1)(0.1)(0.1)(0.1)(0.1)Allowance for Credit Losses(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)
2.1 2.0 1.9 1.5 1.4 
Cash and Due From Banks and Other Central Bank Deposits(4)
1.7 1.6 1.3 1.3 1.3 1.7 1.3 1.2 
0.4 0.4 0.4 0.3 0.3 Buildings and Equipment0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
0.8 0.9 1.0 1.0 1.1 Client Security Settlement Receivables1.1 1.0 0.8 1.0 1.1 1.0 1.1 1.2 
0.5 0.6 0.5 0.5 0.5 Goodwill0.5 0.5 0.5 0.4 0.4 0.5 0.5 0.5 
3.8 5.1 5.6 4.9 5.8 Other Assets4.8 4.7 5.2 4.8 4.6 5.8 6.6 6.4 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Liabilities and Stockholders' Equity
12.3 %14.1 %17.1 %18.1 %19.8 %Savings, Money Market and Other17.4 %17.8 %18.2 %19.0 %19.9 %20.1 %19.9 %19.3 %
0.7 0.7 0.9 0.6 0.7 Savings Certificates and Other Time0.6 0.6 0.6 0.5 0.5 0.5 0.7 1.1 
47.6 46.7 44.2 44.6 42.6 Non- U.S. Offices - Interest-Bearing44.6 44.8 44.9 44.1 42.1 41.5 43.8 43.3 
60.7 61.5 62.2 63.3 63.1 Total Interest-Bearing Deposits62.6 63.2 63.6 63.6 62.5 62.1 64.3 63.7 
2.2 1.1 0.7 0.1 0.9 Federal Funds Purchased0.3 0.1 0.1 — — 0.6 1.3 1.8 
0.4 0.3 0.2 0.1 0.3 Securities Sold under Agreements to Repurchase0.1 0.1 0.2 0.2 0.2 0.4 0.3 0.3 
6.1 6.6 4.7 3.2 3.6 Other Borrowings3.1 3.4 3.5 3.0 2.3 2.7 4.1 5.4 
1.4 2.0 2.4 1.8 1.8 Senior Notes2.0 2.0 1.8 1.6 1.5 1.9 2.0 1.8 
1.1 1.0 0.9 0.7 0.8 Long-Term Debt0.8 0.8 0.7 0.7 0.7 0.7 0.7 1.2 
0.2 0.2 0.2 0.1 — Floating Rate Capital Debt0.2 0.2 0.2 — — — — — 
72.1 72.7 71.2 69.5 70.5 Total Interest-Related Funds68.9 69.7 70.2 69.1 67.2 68.4 72.8 74.1 
16.7 14.8 17.1 19.9 19.2 Demand and Other Noninterest-Bearing Deposits19.9 19.7 19.3 20.7 22.9 21.9 16.6 15.0 
2.9 3.4 3.5 3.1 3.0 Other Liabilities3.7 3.0 2.9 2.9 2.8 2.7 3.1 3.4 
91.7 90.9 91.8 92.5 92.7 Total Liabilities92.5 92.5 92.4 92.7 92.9 92.9 92.5 92.6 
7.6 8.3 7.5 6.9 6.7 Common Equity7.0 6.9 7.0 6.8 6.6 6.5 6.9 6.8 
0.7 0.8 0.6 0.6 0.6 Preferred Equity0.6 0.6 0.6 0.5 0.5 0.6 0.6 0.6 
8.3 9.1 8.2 7.5 7.3 Total Stockholders' Equity7.5 7.5 7.6 7.3 7.1 7.1 7.5 7.4 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Liabilities and Stockholders' Equity100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
(1)
Summations may not equal due to rounding
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.

7

Northern Trust Corporation
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES
Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
20212022
20182019202020212022Earnings Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
0.87 %0.98 %0.10 %0.03 %1.30 %Federal Reserve and Other Central Bank Deposits— %0.01 %0.04 %0.06 %0.16 %0.65 %1.76 %3.15 %
1.16 %1.21 %0.41 %0.16 %1.11 %
Interest-Bearing Due from and Deposits with Banks(2)
0.15 %0.16 %0.15 %0.18 %0.24 %0.62 %1.45 %2.18 %
2.18 %2.73 %1.37 %0.41 %3.22 %Federal Funds Sold0.41 %0.41 %0.41 %0.41 %0.45 %0.75 %2.79 %3.91 %
2.22 %2.10 %0.31 %0.33 %9.68 %
Securities Purchased under Agreements to Resell(4)
0.27 %0.34 %0.38 %0.38 %0.50 %2.47 %9.51 %22.24 %
Debt Securities:
2.13 %2.51 %1.77 %1.28 %1.91 %Available for Sale1.45 %1.25 %1.18 %1.20 %1.30 %1.55 %2.10 %3.02 %
1.08 %0.94 %0.59 %0.80 %1.26 %Held to Maturity0.59 %0.86 %0.97 %0.84 %0.94 %1.11 %1.38 %1.54 %
6.19 %3.29 %3.27 %1.59 %3.84 %Trading Account6.55 %0.87 %0.32 %0.12 %10.09 %5.40 %23.60 %3.54 %
1.83 %2.14 %1.46 %1.11 %1.64 %   Total Debt Securities1.16 %1.11 %1.11 %1.06 %1.17 %1.39 %1.76 %2.30 %
3.45 %3.74 %2.32 %1.92 %3.28 %Loans and Leases2.05 %1.91 %1.87 %1.88 %1.97 %2.53 %3.64 %4.86 %
5.01 %3.56 %3.63 %3.43 %4.03 %
Other Interest-Earning Assets(3)
2.65 %3.27 %3.92 %3.88 %2.69 %4.07 %3.92 %5.14 %
2.08 %2.36 %1.35 %1.00 %2.11 %Total Earning Assets1.03 %0.99 %1.00 %0.99 %1.06 %1.54 %2.44 %3.52 %
Interest-Bearing Funds
0.54 %0.97 %0.20 %0.05 %0.74 %Savings, Money Market and Other0.06 %0.04 %0.04 %0.04 %0.04 %0.24 %0.94 %1.83 %
0.90 %1.86 %1.30 %0.55 %1.68 %Savings Certificates and Other Time0.67 %0.49 %0.53 %0.49 %0.51 %0.58 %1.61 %2.86 %
0.50 %0.57 %(0.03)%(0.11)%0.56 %Non- U.S. Offices - Interest-Bearing(0.11)%(0.11)%(0.12)%(0.12)%(0.12)%0.02 %0.65 %1.70 %
0.52 %0.68 %0.06 %(0.06)%0.63 %Total Interest-Bearing Deposits(0.06)%(0.06)%(0.07)%(0.06)%(0.06)%0.10 %0.75 %1.76 %
1.82 %2.05 %0.22 %(0.19)%2.43 %Federal Funds Purchased0.06 %(0.95)%0.09 %— %0.05 %1.22 %2.00 %3.14 %
1.48 %1.89 %0.47 %0.07 %20.94 %
Securities Sold under Agreements to Repurchase(4)
0.07 %0.03 %0.06 %0.11 %0.49 %4.01 %20.72 %59.59 %
2.00 %2.34 %0.71 %0.28 %2.31 %Other Borrowings0.30 %0.25 %0.26 %0.32 %0.35 %0.80 %2.36 %3.95 %
3.13 %3.04 %2.24 %1.69 %3.36 %Senior Notes1.82 %1.82 %1.64 %1.44 %1.59 %2.65 %3.79 %5.18 %
3.47 %3.36 %2.24 %1.81 %3.49 %Long-Term Debt1.83 %1.83 %1.79 %1.80 %1.94 %2.47 %3.41 %5.19 %
2.72 %2.98 %1.52 %0.78 %— %Floating Rate Capital Debt0.81 %0.76 %0.75 %0.86 %— %— %— %— %
0.79 %0.96 %0.21 %0.02 %0.92 %Total Interest-Related Funds0.04 %0.03 %0.02 %0.01 %0.01 %0.25 %1.07 %2.30 %
1.29 %1.40 %1.14 %0.98 %1.19 %Net Interest Spread0.99 %0.96 %0.98 %0.98 %1.05 %1.29 %1.37 %1.22 %
1.46 %1.60 %1.19 %0.99 %1.39 %Net Interest Margin1.00 %0.97 %0.98 %0.99 %1.05 %1.35 %1.58 %1.63 %
(1)
Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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)
Includes the impact of balance sheet netting under master netting arrangements of approximately $6.0 billion for the three months ended December 31, 2022 and $3.6 for the twelve months ended December 31, 2022 . Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 3.64% for the three months ended December 31, 2022 and 2.23% for the twelve months ended December 31, 2022. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.68% for the three months ended December 31, 2022 and 2.27% for the twelve months ended December 31, 2022.
8

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$153.8 $138.2 $124.4 $259.9 $184.7 Beginning Allowance for Credit Losses$259.9 $230.8 $207.0 $195.1 $184.7 $189.9 $199.9 $195.9 
— — 13.7 — — Cumulative Effect Adjustment*— — — — — — — — 
(14.5)(14.5)125.0 (81.5)12.0 Provision for Credit Losses(30.0)(27.0)(13.0)(11.5)2.0 4.5 0.5 5.0 
(Charge-offs) Recoveries
(10.1)(6.5)(9.7)(0.7)(6.0)Charge-offs(0.4)— — (0.3)(0.1)— (5.4)(0.5)
9.0 7.2 6.5 7.0 10.2 Recoveries1.3 3.2 1.1 1.4 3.3 5.5 0.9 0.5 
(1.1)0.7 (3.2)6.3 4.2 Net (Charge-offs) Recoveries0.9 3.2 1.1 1.1 3.2 5.5 (4.5)— 
$138.2 $124.4 $259.9 $184.7 $200.9 Ending Allowance for Credit Losses$230.8 $207.0 $195.1 $184.7 $189.9 $199.9 $195.9 $200.9 
$112.6 $104.5 $190.7 $138.4 $144.3 Allowance for Credit Losses Assigned to:$165.4 $148.8 $143.9 $138.4 $136.3 $138.2 $138.7 $144.3 
Loans and Leases
25.6 19.9 61.1 34.1 38.5 Undrawn Loan Commitments and Standby Letters of Credit55.1 46.5 39.8 34.1 37.5 43.5 40.7 38.5 
— — 8.1 12.2 18.1 Debt Securities and Other Financial Assets10.3 11.7 11.4 12.2 16.1 18.2 16.5 18.1 
$138.2 $124.4 $259.9 $184.7 $200.9 Total Allowance for Credit Losses$230.8 $207.0 $195.1 $184.7 $189.9 $199.9 $195.9 $200.9 
$32,029 $31,053 $33,499 $37,208 $41,031 Average Loans and Leases Outstanding$34,201 $36,282 $38,411 $39,860 $39,544 $40,747 $41,466 $42,329 
— %— %(0.01)%0.02 %0.01 %Annualized Loan-Related Net (Charge-offs) Recoveries to 0.01 %0.04 %0.01 %0.01 %0.03 %0.05 %(0.04)%— %
Average Loans and Leases
$32,490 $31,410 $33,760 $40,481 $42,893 End of Period Loans and Leases Outstanding$34,344 $37,407 $39,457 $40,481 $39,239 $41,208 $43,992 $42,893 
0.35 %0.33 %0.56 %0.34 %0.34 %Allowance for Credit Losses Assigned to Loans0.48 %0.40 %0.36 %0.34 %0.35 %0.34 %0.32 %0.34 %
and Leases to Total Loans and Leases
Nonaccrual Assets
$109.3 $83.6 $131.7 $122.3 $45.9 Nonaccrual Loans and Leases$123.8 $106.5 $141.0 $122.3 $100.8 $89.7 $76.4 $45.9 
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 — — 
$117.7 $86.8 $132.4 $125.3 $45.9 Total Nonaccrual Assets$125.3 $106.7 $141.2 $125.3 $101.0 $89.8 $76.4 $45.9 
0.36 %0.28 %0.39 %0.31 %0.11 %Nonaccrual Assets to Loans and Leases and OREO0.36 %0.29 %0.36 %0.31 %0.26 %0.22 %0.17 %0.11 %
Loans and Leases Allowance to Nonaccrual
1.0x1.3x1.4x1.1x3.1xLoans and Leases1.3x1.4x1.0x1.1x1.4x1.5x1.8x3.1x
*Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by $13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of tax.
9

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Assets Under Management
$790.8 $917.5 $1,057.5 $1,191.0 $898.1 Asset Servicing$1,093.7 $1,168.3 $1,159.5 $1,191.0 $1,091.6 $950.0 $873.7 $898.1 
Asset allocation:
403.3 483.8 551.7 626.6 485.0 Equities573.5 616.0 594.9 626.6 582.8 479.1 444.1 485.0 
105.3 114.6 120.1 132.6 107.1 Fixed Income Securities117.1 132.6 127.9 132.6 122.8 114.8 103.1 107.1 
132.4 156.1 198.8 236.2 157.7 Cash and Other Assets201.9 220.4 228.6 236.2 208.8 186.8 164.4 157.7 
149.8 163.0 186.9 195.6 148.3 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3 
$278.6 $313.8 $347.8 $416.1 $351.4 Wealth Management$355.4 $371.1 $372.9 $416.1 $396.2 $352.8 $336.2 $351.4 
Asset allocation:
130.9 167.0 182.0 229.9 186.3 Equities196.1 211.8 211.5 229.9 218.1 185.0 171.0 186.3 
73.0 79.2 84.7 83.5 79.4 Fixed Income Securities81.8 82.3 82.7 83.5 81.6 80.1 79.5 79.4 
74.6 67.5 81.1 102.7 85.7 Cash and Other Assets77.5 77.0 78.7 102.7 96.5 87.7 85.7 85.7 
0.1 0.1 — — — Securities Lending Collateral— — — — — — — — 
$1,069.4 $1,231.3 $1,405.3 $1,607.1 $1,249.5 Total Assets Under Management$1,449.1 $1,539.4 $1,532.4 $1,607.1 $1,487.8 $1,302.8 $1,209.9 $1,249.5 
Asset allocation:
$534.2 $650.8 $733.7 $856.5 $671.3 Equities$769.6 $827.8 $806.4 $856.5 $800.9 $664.1 $615.1 $671.3 
178.3 193.8 204.8 216.1 186.5 Fixed Income Securities198.9 214.9 210.6 216.1 204.4 194.9 182.6 186.5 
207.0 223.6 279.9 338.9 243.4 Cash and Other Assets279.4 297.4 307.3 338.9 305.3 274.5 250.1 243.4 
149.9 163.1 186.9 195.6 148.3 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3 
Assets Under Custody / Administration
$9,490.5 $11,311.6 $13,653.1 $15,183.2 $12,705.5 Asset Servicing$13,876.3 $14,754.1 $14,800.2 $15,183.2 $14,513.0 $12,812.2 $11,954.0 $12,705.5 
634.8 738.8 879.4 1,065.6 898.5 Wealth Management918.8 973.0 976.0 1,065.6 1,031.1 921.5 868.0 898.5 
$10,125.3 $12,050.4 $14,532.5 $16,248.8 $13,604.0 Total Assets Under Custody / Administration$14,795.1 $15,727.1 $15,776.2 $16,248.8 $15,544.1 $13,733.7 $12,822.0 $13,604.0 
Assets Under Custody
$6,971.0 $8,497.8 $10,387.7 $11,554.8 $9,712.3 Asset Servicing$10,618.0 $11,260.8 $11,283.6 $11,554.8 $10,987.5 $9,771.2 $9,125.5 $9,712.3 
Asset allocation:
3,043.0 3,866.6 4,751.0 5,404.3 4,312.8 Equities5,005.7 5,334.8 5,298.8 5,404.3 5,062.5 4,272.7 3,939.7 4,312.8 
2,700.2 3,102.3 3,742.6 3,997.5 3,252.1 Fixed Income Securities3,688.4 3,892.9 3,908.3 3,997.5 3,768.9 3,378.8 3,157.1 3,252.1 
1,078.0 1,365.9 1,707.2 1,957.4 1,999.1 Cash and Other Assets1,722.7 1,833.8 1,868.4 1,957.4 1,978.9 1,950.4 1,866.6 1,999.1 
149.8 163.0 186.9 195.6 148.3 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3 
$622.9 $735.7 $875.1 $1,057.5 $892.3 Wealth Management$916.2 $967.8 $962.9 $1,057.5 $1,022.9 $913.0 $860.8 $892.3 
Asset allocation:
336.5 432.0 542.9 644.8 497.9 Equities575.0 616.3 600.7 644.8 615.2 512.8 469.3 497.9 
122.2 134.3 128.3 142.1 134.0 Fixed Income Securities130.3 136.7 138.2 142.1 140.5 135.0 131.6 134.0 
164.1 169.3 203.9 270.6 260.4 Cash and Other Assets210.9 214.8 224.0 270.6 267.2 265.2 259.9 260.4 
0.1 0.1 — — — Securities Lending Collateral— — — — — — — — 
$7,593.9 $9,233.5 $11,262.8 $12,612.3 $10,604.6 Total Assets Under Custody$11,534.2 $12,228.6 $12,246.5 $12,612.3 $12,010.4 $10,684.2 $9,986.3 $10,604.6 
Asset allocation:
$3,379.5 $4,298.6 $5,293.9 $6,049.1 $4,810.7 Equities$5,580.7 $5,951.0 $5,899.5 $6,049.1 $5,677.7 $4,785.5 $4,409.0 $4,810.7 
2,822.4 3,236.6 3,870.9 4,139.6 3,386.1 Fixed Income Securities3,818.7 4,029.6 4,046.5 4,139.6 3,909.4 3,513.8 3,288.7 3,386.1 
1,242.1 1,535.2 1,911.1 2,228.0 2,259.5 Cash and Other Assets1,933.6 2,048.7 2,092.4 2,228.0 2,246.1 2,215.6 2,126.5 2,259.5 
149.9 163.1 186.9 195.6 148.3 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3 
Memo
$83.5 $94.2 $114.0 $144.9 $119.9 WM Global Family Office AUM$114.3 $119.7 $120.4 $144.9 $136.6 $121.9 $117.1 $119.9 
405.5 474.1 600.7 742.6 614.9 WM Global Family Office AUC635.2 675.4 668.9 742.6 720.8 642.2 598.4 614.9 
10

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial measures presented on an FTE basis.
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$2,321.4 $2,499.9 $1,643.5 $1,406.5 $2,877.7 Interest Income - GAAP$349.9 $343.1 $351.3 $362.2 $383.5 $524.8 $799.3 $1,170.1 
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.68.310.710.06.711.112.315.5
2,362.6 2,532.7 1,677.9 1,442.1 2,923.3 Interest Income (FTE) - Non-GAAP356.5351.4362.0372.2390.2535.9811.61,185.6 
1,622.7 1,677.9 1,443.2 1,382.7 1,887.2 Net Interest Income - GAAP340.1335.6346.4360.6381.0458.7513.0534.5
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.68.310.710.06.711.112.315.5
1,663.9 1,710.7 1,477.6 1,418.3 1,932.8 Net Interest Income (FTE) - Non-GAAP346.7343.9357.1370.6387.7469.8525.3550.0
5,960.2 6,073.1 6,100.8 6,464.5 6,761.2 Total Revenue - GAAP1,583.4 1,580.3 1,633.8 1,667.0 1,718.7 1,768.7 1,754.8 1,519.0 
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.68.310.710.06.711.112.315.5
6,001.4 6,105.9 6,135.2 6,500.1 6,806.8 Total Revenue (FTE) - Non-GAAP1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 1,534.5 
1,957.8 1,944.1 1,627.6 2,010.1 1,766.3 Income before Income Taxes - GAAP495.9486.5518.1509.6510.8540.6524.5190.4
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.68.310.710.06.711.112.315.5
1,999.0 1,976.9 1,662.0 2,045.7 1,811.9 Income before Income Taxes (FTE) - Non-GAAP502.5494.8528.8519.6517.5551.7536.8205.9
401.4 451.9 418.3 464.8 430.3 Provision for Income Taxes - GAAP120.8118.4122.4103.2121.5144.4129.734.7
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.68.310.710.06.711.112.315.5
442.6 484.7 452.7 500.4 475.9 Provision for Income Taxes (FTE) - Non-GAAP127.4126.7133.1113.2128.2155.5142.050.2
11

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.
20212022
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
32.8 %32.0 %26.7 %31.1 %26.1 %
Profit Margin (pre-tax) - GAAP (1)
31.3 %30.8 %31.7 %30.6 %29.7 %30.6 %29.9 %12.5 %
33.3 %32.4 %27.1 %31.5 %26.6 %
Profit Margin (pre-tax) (FTE) - Non-GAAP (1)
31.6 %31.1 %32.2 %31.0 %30.0 %31.0 %30.4 %13.4 %
26.1 %24.6 %19.8 %23.9 %19.8 %
Profit Margin (after-tax) - GAAP (2)
23.7 %23.3 %24.2 %24.4 %22.7 %22.4 %22.5 %10.2 %
25.9 %24.4 %19.7 %23.8 %19.6 %
Profit Margin (after-tax) (FTE) - Non-GAAP (2)
23.6 %23.2 %24.1 %24.2 %22.6 %22.3 %22.3 %10.1 %
20.5 %23.2 %25.7 %23.1 %24.4 %
Effective Tax Rate - GAAP (3)
24.4 %24.3 %23.6 %20.2 %23.8 %26.7 %24.7 %18.2 %
22.1 %24.5 %27.2 %24.5 %26.3 %
Effective Tax Rate (FTE) - Non-GAAP (3)
25.4 %25.6 %25.2 %21.8 %24.8 %28.2 %26.4 %24.4 %
72.8 %72.4 %76.3 %78.6 %72.1 %
Noninterest Income to Total Revenue - GAAP (4)
78.5 %78.8 %78.8 %78.4 %77.8 %74.1 %70.8 %64.8 %
72.3 %72.0 %75.9 %78.2 %71.6 %
Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)
78.2 %78.4 %78.3 %77.9 %77.5 %73.6 %70.3 %64.2 %
63.0 %63.4 %65.5 %67.5 %65.6 %
Trust Fees to Total Revenue - GAAP (5)
67.2 %68.1 %68.0 %66.6 %68.0 %64.6 %61.5 %68.6 %
62.5 %63.1 %65.1 %67.1 %65.1 %
Trust Fees to Total Revenue (FTE) - Non-GAAP (5)
66.9 %67.7 %67.6 %66.2 %67.7 %64.2 %61.0 %67.9 %
1.25 %1.37 %1.11 %0.96 %1.15 %
Net Interest Spread - GAAP (6)
0.97 %0.94 %0.95 %0.96 %1.03 %1.25 %1.33 %1.17 %
1.29 %1.40 %1.14 %0.98 %1.19 %
Net Interest Spread (FTE) - Non-GAAP (6)
0.99 %0.96 %0.98 %0.98 %1.05 %1.29 %1.37 %1.22 %
1.43 %1.57 %1.16 %0.96 %1.36 %
Net Interest Margin - GAAP (7)
0.98 %0.95 %0.95 %0.96 %1.03 %1.31 %1.54 %1.58 %
1.46 %1.60 %1.19 %0.99 %1.39 %
Net Interest Margin (FTE) - Non-GAAP (7)
1.00 %0.97 %0.98 %0.99 %1.05 %1.35 %1.58 %1.63 %
(1)
Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
(2)
Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
(3)
Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
(4)
Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
(5)
Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
(6)
Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
(7)
Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.
12