0000073124false00000731242023-07-192023-07-190000073124us-gaap:CommonStockMember2023-07-192023-07-190000073124ntrs:DepositarySharesMember2023-07-192023-07-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 
FORM
8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 19, 2023

NORTHERN TRUST CORPORATION

(Exact name of registrant as specified in its charter)
Delaware001-36609 36-2723087
(State or other jurisdiction of incorporation)(Commission File Number) (IRS Employer Identification No.)
50 South LaSalle Street 60603
Chicago,Illinois(Zip Code)
(Address of principal executive offices) 
Registrant’s telephone number, including area code (312) 630-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.66 2/3 Par ValueNTRSThe NASDAQ Stock Market LLC
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock
NTRSOThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition

The information contained in the registrant’s July 19, 2023 press release, reporting on the registrant’s earnings for the three and six months ended June 30, 2023, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On July 19, 2023, the Corporation will hold a live conference call and webcast to discuss financial results for the three and six months ended June 30, 2023 and other matters relating to the Corporation. In connection therewith, the Corporation has also made available on its website presentation materials containing certain information relating to the Corporation (the “Presentation Materials”) and materials that contain additional information about the Corporation’s financial results for the three and six months ended June 30, 2023 (the “Financial Trends”), copies of which are attached as Exhibits 99.2 and 99.3 hereto, and are incorporated herein by reference.

Item 9.01.    Financial Statements and Exhibits

The information provided in this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.    

(d) Exhibits:
Exhibit NumberDescription
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
NORTHERN TRUST CORPORATION
(Registrant)
Dated:July 19, 2023By:/s/ Jason J. Tyler
Jason J. Tyler
Executive Vice President and Chief Financial Officer

Exhibit 99.1
NEWS RELEASE
ntrs_logoxwhitea.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 SECOND QUARTER
NET INCOME OF $331.8 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $1.56
CHICAGO, JULY 19, 2023 — Northern Trust Corporation today reported second quarter net income per diluted common share of $1.56, compared to $1.51 in the first quarter of 2023 and $1.86 in the second quarter of 2022. Net income was $331.8 million, compared to $334.6 million in the prior quarter and $396.2 million in the prior-year quarter.
Second quarter 2023 results included the following:
•$38.7 million of pre-tax severance-related charges (after-tax $29.2 million).
•$25.6 million pre-tax charge related to the write-off of an investment in a client capability (after-tax $19.3 million).
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust’s second quarter results reflected growth across each of our businesses, solid progress on our productivity initiatives and prudent capital management. We grew trust fees and revenue as compared to the prior quarter; kept expenses, excluding notable items, well-controlled; generated return on common equity in the middle of our target range; and returned $257 million to shareholders. As we enter the second half of the year, we remain vigilant in our efforts to grow and deepen our client franchise while driving greater efficiency in our operating model.”
FINANCIAL SUMMARY & KEY METRICS
% Change Q2 2023 vs.
($ In Millions except per share data)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Trust, Investment and Other Servicing Fees$1,096.3 $1,063.6 $1,143.4 3 %(4)%
Other Noninterest Income (Loss)149.3 149.8 166.6 —(10)
Net Interest Income (FTE*)524.6 544.4 469.8 (4)12 
Total Revenue (FTE*)$1,770.2 $1,757.8 $1,779.8 1 %(1)%
Noninterest Expense$1,331.9 $1,285.6 $1,223.6 4 %9 %
(Release of) Provision for Credit Losses(15.5)15.0 4.5 N/MN/M
Provision for Income Taxes108.9 109.4 144.4 —(25)
FTE Adjustment*13.1 13.2 11.1 (1)17 
Net Income$331.8 $334.6 $396.2 (1)%(16)%
Earnings Allocated to Common and Potential Common Shares$323.7 $315.2 $388.3 3 %(17)%
Diluted Earnings per Common Share$1.56 $1.51 $1.86 3 %(16)%
Return on Average Common Equity12.4 %12.4 %15.7 %
Return on Average Assets0.91 %0.92 %1.03 %
Average Assets$145,899.6 $148,059.9 $154,084.1 (1)%(5)%
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 SECOND QUARTER 2023 RESULTS
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 June 30, 2023 vs.
($ In Billions)June 30, 2023*March 31, 2023June 30, 2022March 31, 2023June 30, 2022
Assets Under Custody/Administration
Asset Servicing$13,483.5 $13,221.5 $12,812.2 2 %5 %
   Wealth Management995.4 953.3 921.5 4 8 
     Total Assets Under Custody/Administration$14,478.9 $14,174.8 $13,733.7 2 %5 %
Assets Under Custody(1)
Asset Servicing$10,295.7 $10,065.6 $9,771.2 2 %5 %
   Wealth Management989.1 947.6 913.0 4 8 
     Total Assets Under Custody$11,284.8 $11,013.2 $10,684.2 2 %6 %
Assets Under Management
Asset Servicing$989.8 $962.1 $950.0 3 %4 %
   Wealth Management376.0 368.3 352.8 2 7 
     Total Assets Under Management$1,365.8 $1,330.4 $1,302.8 3 %5 %
(1) Assets Under Custody are a component of Assets Under Custody/Administration.
(*) Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
TRUST, INVESTMENT AND OTHER SERVICING FEES
% Change Q2 2023 vs.
($ In Millions)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration$427.4 $413.6 $433.8 3 %(1)%
Investment Management134.1 126.2 148.4 6 (10)
Securities Lending21.5 19.1 21.6 13 — 
Other38.2 44.1 38.9 (14)(2)
Total Asset Servicing$621.2 $603.0 $642.7 3 %(3)%
Wealth Management Trust, Investment and Other Servicing Fees
Central$166.0 $163.6 $177.4 2 %(6)%
East124.1 119.8 128.1 4 (3)
West93.7 91.2 98.7 3 (5)
Global Family Office (GFO)91.3 86.0 96.5 6 (5)
Total Wealth Management$475.1 $460.6 $500.7 3 %(5)%
Total Consolidated Trust, Investment and Other Servicing Fees$1,096.3 $1,063.6 $1,143.4 3 %(4)%
Asset Servicing and Wealth Management trust, investment and other servicing fees are impacted by both one-month and one-quarter lagged asset values.
Total Asset Servicing trust, investment and other servicing fees increased sequentially and decreased from the prior-year quarter.
▪Custody and fund administration fees increased sequentially primarily due to new business, higher transaction volumes, and favorable markets. Custody and fund administration fees decreased from the prior-year quarter primarily due to unfavorable markets.
▪Investment management fees increased sequentially primarily due to asset inflows and favorable markets. Investment management fees decreased from the prior-year quarter primarily due to asset outflows and unfavorable markets.
▪Other fees decreased sequentially primarily due to prior quarter fees associated with seasonal benefit payment services.
Total Wealth Management trust, investment and other servicing fees increased sequentially and decreased from the prior-year quarter.
•Fees in the regions (Central, East and West) increased sequentially primarily due to favorable markets. Fees in the regions decreased from the prior-year quarter primarily due to unfavorable markets and product-related asset outflows.
•Fees in GFO increased sequentially driven by net inflows. Fees in GFO decreased from the prior-year quarter primarily due to unfavorable markets.
2
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 RESULTS
OTHER NONINTEREST INCOME
% Change Q2 2023 vs.
($ In Millions)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Other Noninterest Income
     Foreign Exchange Trading Income$50.1 $53.0 $77.6 (5)%(35)%
     Treasury Management Fees7.9 8.4 10.6 (4)(24)
     Security Commissions and Trading Income36.1 34.7 32.8 4 10 
     Other Operating Income55.2 46.8 45.6 18 21 
     Investment Security Gains (Losses), net— 6.9 — N/MN/M
Total Other Noninterest Income (Loss)$149.3 $149.8 $166.6 —%(10)%
N/M - Not meaningful
Foreign exchange trading income decreased compared to the prior-year quarter primarily driven by lower client volumes and an unfavorable impact from foreign exchange swap activity.
Security commissions and trading income increased compared to the prior-year quarter primarily due to higher bond underwriting referral fees.
Other operating income increased sequentially primarily due to higher non-trading foreign exchange income and banking and credit-related service fees. Other operating income increased compared to the prior-year quarter primarily driven by higher income associated with a market value increase in supplemental compensation plans, higher non-trading foreign exchange income, and banking and credit-related services fees, partially offset by higher expenses related to existing swap agreements related to Visa Inc. Class B common shares.
NET INTEREST INCOME
% Change Q2 2023 vs.
($ In Millions)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Net Interest Income
     Interest Income (FTE*)$1,748.1 $1,468.6 $535.9 19 %N/M
     Interest Expense1,223.5 924.2 66.1 32N/M
Net Interest Income (FTE*)$524.6 $544.4 $469.8 (4)%12 %
Average Earning Assets$134,116 $135,957 $139,902 (1)%(4)%
Net Interest Margin (FTE*)1.57 %1.62 %1.35 %(5)bps22 bps
(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
bps - basis points
Net interest income on an FTE basis decreased sequentially primarily due to lower average earning assets, partially offset by higher average interest rates. Net interest income on an FTE basis increased compared to the prior-year quarter primarily due to higher average interest rates, partially offset by lower average earning assets.
The net interest margin on an FTE basis decreased sequentially primarily due to an unfavorable balance sheet mix shift, partially offset by higher average interest rates. The net interest margin on an FTE basis increased from the prior-year quarter primarily due to higher average interest rates, partially offset by an unfavorable balance sheet mix shift.
Average earning assets decreased sequentially and from the prior-year quarter primarily due to lower client deposits, partially offset by increased short-term borrowing activity.
3
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 RESULTS
PROVISION FOR CREDIT LOSSES
As of and for the three-months ended,
% Change June 30, 2023 vs.
($ In Millions)June 30, 2023March 31, 2023June 30, 2022March 31, 2023June 30, 2022
Allowance for Credit Losses
Beginning Allowance for Credit Losses$213.0 $200.9 $189.9 6 %12 %
(Release of) Provision for Credit Losses(15.5)15.0 4.5 N/MN/M
Net Recoveries (Charge-Offs) — (2.9)5.5 (98)(101)
Ending Allowance for Credit Losses$197.5 $213.0 $199.9 (7)%(1)%
Allowance assigned to:
Loans and Leases$152.5 $159.9 $138.2 (5)%10 %
Undrawn Loan Commitments and
Standby Letters of Credit		26.0 34.3 43.5 (24)(40)
Debt Securities and Other Financial Assets19.0 18.8 18.2 1 5 
Ending Allowance for Credit Losses$197.5 $213.0 $199.9 (7)%(1)%
N/M - Not meaningful
Q2 2023
The release of credit reserves in the current quarter was primarily due to a decrease in the reserve evaluated on a collective basis, primarily driven by improved credit quality in certain commercial and institutional and certain commercial real estate (CRE) loans, partially offset by expectations for higher economic stress in the CRE market, particularly Office CRE. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics.
Q1 2023
The provision in the prior quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by growth in the size and duration of the CRE portfolio, primarily in multi-family properties, partially offset by improvement in credit quality for the commercial and institutional segment.
Q2 2022
The provision in the prior-year quarter was primarily due to an increase in the reserve evaluated on a collective basis, partially offset by recoveries in the prior-year quarter. The increase in the collective basis reserve was primarily driven by market conditions and a higher risk of recession at the time as compared to the previous period, partially offset by improvements in credit quality mainly within the CRE and commercial and institutional portfolios.
4
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 RESULTS
NONINTEREST EXPENSE
% Change Q2 2023 vs.
($ In Millions)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Noninterest Expense
Compensation$604.5 $595.2 $546.5 2 %11 %
Employee Benefits101.4 101.0 119.6 — (15)
Outside Services230.9 210.8 213.1 10 8 
Equipment and Software229.3 231.7 203.5 (1)13 
Occupancy53.8 61.3 51.0 (12)6 
Other Operating Expense112.0 85.6 89.9 31 25 
Total Noninterest Expense$1,331.9 $1,285.6 $1,223.6 4 %9 %
End of Period Full-Time Equivalent Staff23,500 23,800 22,500 (1)%4 %
Compensation expense increased sequentially and for the prior-year quarter primarily due to $36.7 million of severance-related charges and higher salaries, partially offset by lower incentives.
Employee benefits expense decreased compared to the prior-year quarter primarily due to a $20.3 million pension settlement charge in the prior-year quarter.
Outside services expense increased sequentially and for the prior-year quarter primarily due to higher technical services.
Equipment and software expense increased compared to the prior-year quarter primarily due to higher amortization as well as higher software costs driven by continued technology investments.
Occupancy expense decreased sequentially primarily due to a $9.8 million charge from the prior quarter related to early lease exits.
Other operating expense increased sequentially and for the prior-year quarter primarily due to a $25.6 million charge related to the write-off of an investment in a client capability.
PROVISION FOR INCOME TAX
% Change Q2 2023 vs.
($ In Millions)Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Net Income
Income before Income Taxes$440.7 $444.0 $540.6 (1)%(18)%
Provision for Income Taxes108.9 109.4 144.4 —(25)
Net Income$331.8 $334.6 $396.2 (1)%(16)%
Effective Tax Rate24.7 %24.6 %26.7 %10 bps(200)bps
bps - basis points
The effective tax rate decreased from the prior-year quarter primarily due to a lower net tax impact from international operations.
5
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 RESULTS
CAPITAL ACTIONS
The Corporation returned approximately $257.1 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 $157.8 million to common stockholders. The Corporation repurchased 1,361,828 shares of common stock, including 14,596 shares withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $99.3 million ($72.91 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 June 30, 2023, 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.

June 30, 2023*March 31, 2023June 30, 2022
Capital Ratios -
Northern Trust Corporation		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital11.3 %13.0 %11.3 %11.7 %10.5 %11.6 %N/A4.5 %
Tier 1 Capital12.3 14.1 12.3 12.7 11.5 12.7 6.06.0 
Total Capital14.4 16.3 14.4 14.7 12.6 13.7 10.08.0 
Tier 1 Leverage7.4 7.4 7.3 7.3 6.7 6.7 N/A4.0 
Supplementary LeverageN/A8.3 N/A8.3 N/A7.6 N/A3.0 
June 30, 2023*March 31, 2023June 30, 2022
Capital Ratios -
The Northern Trust Company		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital12.1 %14.3 %12.3 %12.9 %11.0 %12.3 %6.5 %4.5 %
Tier 1 Capital12.1 14.3 12.3 12.9 11.0 12.3 8.0 6.0 
Total Capital13.9 16.2 14.2 14.6 11.9 13.1 10.0 8.0 
Tier 1 Leverage7.4 7.4 7.3 7.3 6.3 6.3 5.0 4.0 
Supplementary LeverageN/A8.2 N/A8.3 N/A7.2 3.0 3.0 
(*) Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
6
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 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
20232022
($ in Millions)SECONDFIRSTFOURTHTHIRDSECOND
Net Interest Income
Interest Income - GAAP$1,735.0 $1,455.4 $1,170.1 $799.3 $524.8 
Add: FTE Adjustment13.1 13.2 15.5 12.3 11.1 
Interest Income (FTE) - Non-GAAP$1,748.1 $1,468.6 $1,185.6 $811.6 $535.9 
Net Interest Income - GAAP$511.5 $531.2 $534.5 $513.0 $458.7 
Add: FTE Adjustment13.1 13.2 15.5 12.3 11.1 
Net Interest Income (FTE) - Non-GAAP$524.6 $544.4 $550.0 $525.3 $469.8 
Net Interest Margin - GAAP1.53 %1.58 %1.58 %1.54 %1.31 %
Net Interest Margin (FTE) - Non-GAAP1.57 %1.62 %1.63 %1.58 %1.35 %
Total Revenue
Total Revenue - GAAP$1,757.1 $1,744.6 $1,519.0 $1,754.8 $1,768.7 
Add: FTE Adjustment13.1 13.2 15.5 12.3 11.1 
Total Revenue (FTE) - Non-GAAP$1,770.2 $1,757.8 $1,534.5 $1,767.1 $1,779.8 

7
NORTHERN TRUST CORPORATION SECOND QUARTER 2023 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 SECOND QUARTER EARNINGS CONFERENCE CALL
Northern Trust’s second quarter earnings conference call will be webcast on July 19, 2023.
The live call will be conducted at 9:00 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 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2023, Northern Trust had assets under custody/administration of US$14.5 trillion, and assets under management of US$1.4 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)
 Q2 2023 vs.
Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Noninterest Income
     Trust, Investment and Other Servicing Fees$1,096.3 $1,063.6 $1,143.4 3 %(4)%
     Foreign Exchange Trading Income50.1 53.0 77.6 (5)(35)
     Treasury Management Fees7.9 8.4 10.6 (4)(24)
     Security Commissions and Trading Income36.1 34.7 32.8 4 10 
     Other Operating Income55.2 46.8 45.6 18 21 
     Investment Security Gains (Losses), net— 6.9 — N/MN/M
Total Noninterest Income1,245.6 1,213.4 1,310.0 3 (5)
Net Interest Income
      Interest Income1,735.0 1,455.4 524.8 19 N/M
      Interest Expense1,223.5 924.2 66.1 32 N/M
Net Interest Income511.5 531.2 458.7 (4)12 
Total Revenue1,757.1 1,744.6 1,768.7 1 (1)
(Release of) Provision for Credit Losses(15.5)15.0 4.5 N/MN/M
Noninterest Expense
     Compensation604.5 595.2 546.5 2 11 
     Employee Benefits101.4 101.0 119.6 — (15)
     Outside Services230.9 210.8 213.1 10 8 
     Equipment and Software229.3 231.7 203.5 (1)13 
     Occupancy53.8 61.3 51.0 (12)6 
     Other Operating Expense112.0 85.6 89.9 31 25 
Total Noninterest Expense1,331.9 1,285.6 1,223.6 4 9 
Income before Income Taxes440.7 444.0 540.6 (1)(18)
Provision for Income Taxes108.9 109.4 144.4 —(25)
NET INCOME$331.8 $334.6 $396.2 (1)%(16)%
Preferred Stock Dividends4.7 16.2 4.7 (71)—
NET INCOME APPLICABLE TO COMMON STOCK$327.1 $318.4 $391.5 3 %(16)%
Earnings Allocated to Participating Securities3.4 3.2 3.2 6 6 
Earnings Allocated to Common and Potential Common Shares$323.7 $315.2 $388.3 3 (17)
Per Common Share
Net Income
     Basic$1.56 $1.51 $1.86 3 %(16)%
     Diluted1.56 1.51 1.86 3 (16)
Average Common Equity$10,563.8 $10,396.6 $10,022.1 2 %5 %
Return on Average Common Equity12.4 %12.4 %15.7 %
Return on Average Assets0.91 %0.92 %1.03 %
Cash Dividends Declared per Common Share$0.75 $0.75 $0.70 — %7 %
Average Common Shares Outstanding (000s)
     Basic207,639 208,187208,384
     Diluted207,816 208,730208,878
Common Shares Outstanding (EOP) (000s)207,004 208,342208,387
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
9
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA
($ In Millions Except Per Share Data)SIX MONTHS
20232022
% Change(1)
Noninterest Income
     Trust, Investment and Other Servicing Fees$2,159.9 $2,311.8 (7)%
     Foreign Exchange Trading Income103.1 158.5 (35)
     Treasury Management Fees16.3 21.7 (25)
     Security Commissions and Trading Income70.8 69.0 3 
     Other Operating Income102.0 86.7 18 
     Investment Security Gains (Losses), net6.9 — N/M
Total Noninterest Income2,459.0 2,647.7 (7)
Net Interest Income
       Interest Income3,190.4 908.3 N/M
       Interest Expense2,147.7 68.6 N/M
Net Interest Income1,042.7 839.7 24 
Total Revenue3,501.7 3,487.4 — 
(Release of) Provision for Credit Losses(0.5)6.5 N/M
Noninterest Expense
     Compensation1,199.7 1,110.4 8 
     Employee Benefits202.4 223.9 (10)
     Outside Services441.7 426.5 4 
     Equipment and Software461.0 397.0 16 
     Occupancy115.1 102.1 13 
     Other Operating Expense197.6 169.6 17 
Total Noninterest Expense2,617.5 2,429.5 8 
Income before Income Taxes884.7 1,051.4 (16)
Provision for Income Taxes218.3 265.9 (18)
NET INCOME$666.4 $785.5 (15)%
Preferred Stock Dividends
20.9 20.9 — 
NET INCOME APPLICABLE TO COMMON STOCK$645.5 $764.6 (16)%
Earnings Allocated to Participating Securities6.6 6.3 5 
Earnings Allocated to Common and Potential Common Shares$638.9 $758.3 (16)%
Per Common Share
Net Income
     Basic$3.07 $3.64 (16)%
     Diluted3.07 3.63 (16)
Average Common Equity$10,480.6 $10,322.6 2 %
Return on Average Common Equity12.4 %14.9 %
Return on Average Assets0.91 %1.00 %
Cash Dividends Declared per Common Share$1.50 $1.40 7 %
Average Common Shares Outstanding (000s)
     Basic207,911 208,205 
     Diluted208,271 208,844 
Common Shares Outstanding (EOP) (000s)207,004 208,387 
(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
10
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
($ In Millions) 
% Change(1)
June 30, 2023 vs.
June 30, 2023March 31, 2023June 30, 2022March 31, 2023June 30, 2022
Assets
Federal Reserve and Other Central Bank Deposits$42,675.1 $39,220.0 $37,867.5 9 %13 %
Interest-Bearing Due from and Deposits with Banks(2)
4,625.8 5,053.3 5,354.6 (8)(14)
Federal Funds Sold— — 10.0 N/MN/M
Securities Purchased under Agreements to Resell1,228.9 1,057.4 1,171.8 16 5 
Debt Securities
Available for Sale24,264.4 24,627.5 35,017.9 (1)(31)
Held to Maturity26,006.3 24,716.2 20,112.6 5 29 
Trading Account0.1 0.1 0.4 (2)(86)
Total Debt Securities50,270.8 49,343.8 55,130.9 2 (9)
Loans and Leases43,546.7 42,369.5 41,207.8 3 6 
Other Interest-Earning Assets(3)
2,694.8 2,233.5 1,442.1 21 87 
Total Earning Assets145,042.1 139,277.5 142,184.7 4 2 
Allowance for Credit Losses(170.2)(176.9)(154.7)(4)10 
Cash and Due from Banks and Other Central Bank Deposits(4)
1,803.7 1,429.4 2,357.6 26 (23)
Buildings and Equipment473.6 481.5 476.6 (2)(1)
Client Security Settlement Receivables431.3 1,300.5 2,284.7 (67)(81)
Goodwill698.8 695.1 690.0 1 1 
Other Assets8,473.2 8,100.9 9,947.4 5 (15)
Total Assets$156,752.5 $151,108.0 $157,786.3 4 %(1)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$23,535.5 $23,183.4 $30,857.0 2 %(24)%
       Savings Certificates and Other Time3,327.0 2,840.1 785.0 17 N/M
       Non-U.S. Offices - Interest-Bearing65,014.7 64,290.0 69,951.1 1 (7)
Total Interest-Bearing Deposits91,877.2 90,313.5 101,593.1 2 (10)
Federal Funds Purchased9,344.5 4,487.3 389.2 108 N/M
Securities Sold under Agreements to Repurchase988.1 362.9 799.4 172 24 
Other Borrowings(5)
12,382.0 11,365.1 3,514.9 9 N/M
Senior Notes2,729.5 2,769.2 3,305.8 (1)(17)
Long-Term Debt2,061.5 2,070.9 1,094.1 — 88 
Total Interest-Related Funds119,382.8 111,368.9 110,696.5 7 8 
Demand and Other Noninterest-Bearing Deposits21,326.4 23,413.9 32,081.5 (9)(34)
Other Liabilities4,407.6 4,737.4 3,938.6 (7)12 
Total Liabilities145,116.8 139,520.2 146,716.6 4 (1)
Common Equity10,750.8 10,702.9 10,184.8 — 6 
Preferred Equity884.9 884.9 884.9 — — 
Total Equity11,635.7 11,587.8 11,069.7 — 5 
Total Liabilities and Stockholders’ Equity$156,752.5 $151,108.0 $157,786.3 4 %(1)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)    Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)    Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
11
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
($ In Millions)
% Change(1)
 Q2 2023 vs.
Q2 2023Q1 2023Q2 2022Q1 2023Q2 2022
Assets
Federal Reserve and Other Central Bank Deposits$34,380.4 $36,641.8 $36,691.1 (6)%(6)%
Interest-Bearing Due from and Deposits with Banks(2)
4,573.4 4,198.7 4,227.6 9 8 
Federal Funds Sold2.9 19.7 2.2 (85)30 
Securities Purchased under Agreements to Resell1,238.6 1,046.1 1,149.3 18 8 
Debt Securities
       Available for Sale24,511.8 25,030.4 35,676.6 (2)(31)
Held to Maturity25,053.3 25,382.2 20,244.3 (1)24 
       Trading Account0.2 1.3 0.4 (84)(49)
Total Debt Securities49,565.3 50,413.9 55,921.3 (2)(11)
Loans and Leases42,365.4 41,959.4 40,747.0 1 4 
Other Interest-Earning Assets(3)
1,990.4 1,677.8 1,163.0 19 71 
Total Earning Assets134,116.4 135,957.4 139,901.5 (1)(4)
Allowance for Credit Losses(176.6)(161.5)(155.8)9 13 
Cash and Due from Banks and Other Central Bank Deposits(4)
1,842.5 1,795.9 2,559.1 3 (28)
Buildings and Equipment481.8 497.3 487.7 (3)(1)
Client Security Settlement Receivables592.7 1,098.5 1,587.8 (46)(63)
Goodwill697.0 692.3 693.8 1 — 
Other Assets8,345.8 8,180.0 9,010.0 2 (7)
Total Assets$145,899.6 $148,059.9 $154,084.1 (1)%(5)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$22,961.2 $27,268.8 $30,967.5 (16)%(26)%
       Savings Certificates and Other Time3,036.1 2,360.1 792.3 29 N/M
       Non-U.S. Offices - Interest-Bearing62,046.3 62,411.1 63,900.7 (1)(3)
Total Interest-Bearing Deposits88,043.6 92,040.0 95,660.5 (4)(8)
Federal Funds Purchased7,070.0 3,653.9 922.8 93 N/M
Securities Sold under Agreements to Repurchase467.8 347.1 596.7 35 (22)
Other Borrowings(5)
12,132.6 11,324.0 4,186.7 7 190 
Senior Notes2,761.1 2,748.1 2,885.1 — (4)
Long-Term Debt2,069.7 2,066.3 1,096.4 — 89 
Total Interest-Related Funds112,544.8 112,179.4 105,348.2 — 7 
Demand and Other Noninterest-Bearing Deposits17,555.1 20,145.6 33,733.3 (13)(48)
Other Liabilities4,351.0 4,453.4 4,095.6 (2)6 
Total Liabilities134,450.9 136,778.4 143,177.1 (2)(6)
Common Equity10,563.8 10,396.6 10,022.1 2 5 
Preferred Equity884.9 884.9 884.9 — — 
Total Equity11,448.7 11,281.5 10,907.0 1 5 
Total Liabilities and Stockholders’ Equity$145,899.6 $148,059.9 $154,084.1 (1)%(5)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)    Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)    Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
12
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA QUARTERS
($ In Millions Except Per Share Data)20232022
SECONDFIRSTFOURTHTHIRDSECOND
Net Income Summary
   Trust, Investment and Other Servicing Fees $1,096.3 $1,063.6 $1,042.1 $1,078.7 $1,143.4 
   Other Noninterest Income149.3 149.8 (57.6)163.1 166.6 
   Net Interest Income 511.5 531.2 534.5 513.0 458.7 
     Total Revenue 1,757.1 1,744.6 1,519.0 1,754.8 1,768.7 
   (Release of) Provision for Credit Losses (15.5)15.0 5.0 0.5 4.5 
   Noninterest Expense1,331.9 1,285.6 1,323.6 1,229.8 1,223.6 
     Income before Income Taxes440.7 444.0 190.4 524.5 540.6 
   Provision for Income Taxes108.9 109.4 34.7 129.7 144.4 
     Net Income $331.8 $334.6 $155.7 $394.8 $396.2 
Per Common Share
   Net Income - Basic$1.56 $1.51 $0.71 $1.80 $1.86 
                      - Diluted1.56 1.51 0.71 1.80 1.86 
   Cash Dividends Declared per Common Share0.75 0.75 0.75 0.75 0.70 
   Book Value (EOP)51.94 51.37 49.78 48.68 48.87 
   Market Value (EOP)74.14 88.13 88.49 85.56 96.48 
Financial Ratios
   Return on Average Common Equity12.4 %12.4 %5.9 %14.9 %15.7 %
   Return on Average Assets0.91 0.92 0.42 1.07 1.03 
   Net Interest Margin (GAAP)1.53 1.58 1.58 1.54 1.31 
   Net Interest Margin (FTE*)1.57 1.62 1.63 1.58 1.35 
Assets Under Custody / Administration ($ in Billions) - End Of Period
Asset Servicing$13,483.5 $13,221.5 $12,705.5 $11,954.0 $12,812.2 
   Wealth Management995.4 953.3 898.5 868.0 921.5 
     Total Assets Under Custody / Administration$14,478.9 $14,174.8 $13,604.0 $12,822.0 $13,733.7 
Assets Under Custody ($ In Billions) - End Of Period
Asset Servicing$10,295.7 $10,065.6 $9,712.3 $9,125.5 $9,771.2 
   Wealth Management989.1 947.6 892.3 860.8 913.0 
     Total Assets Under Custody$11,284.8 $11,013.2 $10,604.6 $9,986.3 $10,684.2 
Assets Under Management ($ In Billions) - End Of Period
Asset Servicing$989.8 $962.1 $898.1 $873.7 $950.0 
   Wealth Management376.0 368.3 351.4 336.2 352.8 
     Total Assets Under Management$1,365.8 $1,330.4 $1,249.5 $1,209.9 $1,302.8 
Asset Quality ($ In Millions) - End Of Period
   Nonaccrual Loans and Leases$47.1 $48.9 $45.9 $76.4 $89.7 
   Other Real Estate Owned (OREO)0.3 — — — 0.1 
     Total Nonaccrual Assets$47.4 $48.9 $45.9 $76.4 $89.8 
   Nonaccrual Assets / Loans and Leases and OREO0.11 %0.12 %0.11 %0.17 %0.22 %
   Gross Charge-offs$(0.8)$(4.0)$(0.5)$(5.4)$— 
Gross Recoveries 0.8 1.1 0.5 0.9 5.5 
     Net Recoveries (Charge-offs)$— $(2.9)$— $(4.5)$5.5 
   Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases— %(0.03)%— %(0.04)%0.05 %
   Allowance for Credit Losses Assigned to:
     Loans and Leases$152.5 $159.9 $144.3 $138.7 $138.2 
Undrawn Loan Commitments and Standby Letters of Credit26.0 34.3 38.5 40.7 43.5 
Debt Securities and Other Financial Assets19.0 18.8 18.1 16.5 18.2 
   Loans and Leases Allowance / Nonaccrual Loans and Leases3.2 x3.3 x3.1 x1.8 x1.5 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
northerntrust.com / © 2023 Northern Trust Exhibit 99.2

 
northerntrust.com / © 2023 Northern Trust 2 130+ years of strength, stability & stewardship Disciplined, client-centric strategy Product leadership & innovation Highest standards of client service Solutions-focused technology & integrated operating platform

 
northerntrust.com / © 2023 Northern Trust 33

 
Financial Highlights & Key Metrics northerntrust.com / © 2023 Northern Trust 4 ¹ Revenue and pre-tax margin stated on a fully taxable equivalent (FTE) basis are non-GAAP financial measures. A reconciliation to reported revenue and reported pre-tax margin prepared in accordance with U.S. generally accepted accounting principles (GAAP) is included in the Appendix on page 11. ² Actual numbers for all periods, not % change. ³ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. N/M - Not meaningful RESULTS INCLUDE IMPACT OF NOTABLE ITEMS $ in millions (except EPS and as noted) % CHANGE VS. 2Q 2023 1Q 2023 2Q 2022 Revenue (FTE1) $ 1,770.2 1 % (1) % Noninterest Expense $ 1,331.9 4 % 9 % (Release of) Provision for Credit Losses (15.5) N/M N/M Net Income $ 331.8 (1) % (16) % Diluted Earnings per Share $ 1.56 3 % (16) % Return on Average Common Equity2 12.4 % 12.4 % 15.7 % Pre-Tax Margin1,2 25.6 % 26.0 % 31.0 % Expense to Trust Fee Ratio2 122 % 121 % 107 % Assets under Custody / Administration3 (AUC/A) (in billions) $ 14,478.9 2 % 5 % Assets under Custody3 (AUC) (in billions) $ 11,284.8 2 % 6 % Assets under Management3 (AUM) (in billions) $ 1,365.8 3 % 5 % Notable Items: 2Q23 Pre-tax • $38.7 million in severance-related charges • $25.6 million write-off of an investment in a client capability 1Q23 Pre-tax • $6.9 million in investment security gains • $9.8 million in occupancy charges 2Q22 Pre-tax • $20.3 million in pension settlement charges

 
Asset Servicing Highlights northerntrust.com / © 2023 Northern Trust 5 % CHANGE VS. Asset Servicing Client Assets¹ (in billions): 2Q 2023 1Q 2023 2Q 2022 Assets under Custody / Administration (AUC/A) $ 13,483.5 2 % 5 % Assets under Custody (AUC) $ 10,295.7 2 % 5 % Assets under Management (AUM) $ 989.8 3 % 4 % Securities Lending Collateral $ 168.8 1 % — % $642.7 $603.2 $588.0 $603.0 $621.2 $433.8 $407.3 $406.3 $413.6 $427.4 $148.4 $136.0 $123.8 $126.2 $134.1 $21.6 $21.7 $19.3 $19.1 $21.5 $38.9 $38.2 $38.6 $44.1 $38.2 Other Securities Lending Investment Management Custody and Fund Administration 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Asset Servicing Revenues ($ in millions) (3)% +3% Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

 
Wealth Management Highlights northerntrust.com / © 2023 Northern Trust 6 % CHANGE VS. Wealth Management Client Assets¹ (in billions): 2Q 2023 1Q 2023 2Q 2022 Assets under Custody / Administration (AUC/A) $ 995.4 4 % 8 % Assets under Custody (AUC) $ 989.1 4 % 8 % Assets under Management (AUM) $ 376.0 2 % 7 % $500.7 $475.5 $454.1 $460.6 $475.1 $177.4 $171.3 $162.2 $163.6 $166.0 $128.1 $124.1 $117.8 $119.8 $124.1 $98.7 $92.5 $89.5 $91.2 $93.7 $96.5 $87.6 $84.6 $86.0 $91.3 Global Family Office (GFO) West East Central 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Wealth Management Revenues ($ in millions) (5)% +3% Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

 
$469.8 $525.3 $550.0 $544.4 $524.6 Net Interest Income (FTE¹) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Net Interest Income and Balance Sheet Trends northerntrust.com / © 2023 Northern Trust 7 Categories may not sum due to rounding. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 11. ² Other Earning Assets includes Interest-Bearing Due from and Deposits with Banks, Federal Funds Sold, Securities Purchased under Agreements to Resell, and Other Interest-Earning Assets. $139.9 $132.1 $133.8 $136.0 $134.1 $36.7 $30.5 $32.8 $36.6 $34.4 $55.9 $53.6 $51.9 $50.4 $49.6 $40.7 $41.5 $42.3 $42.0 $42.4 $6.5 $6.5 $6.8 $6.9 $7.8 Other Earning Assets² Loans and Leases Debt Securities Federal Reserve and Other Central Bank Deposits 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 1.35% 1.58% 1.63% 1.62% 1.57% Net Interest Margin (FTE¹) Average Earning Assets ($ in billions) Net Interest Income (FTE1) ($ in millions) +12%(4)% (1)% (4)%

 
Noninterest Expense northerntrust.com / © 2023 Northern Trust 8Categories may not sum due to rounding. Expense Notes • Expenses included the following: • Severance-related charges of $38.7 million in 2Q23 ($36.7 million in Compensation expense and $2.0 million in Outside Services expense); $32.0 million in 4Q22 ($30.4 million in Compensation expense and $1.6 million in Outside Services) • Write-off of an investment in a client capability in Other Operating Expense of $25.6 million in 2Q23 • Occupancy charges of $9.8 million in 1Q23 and $14.0 million in 4Q22 • Pension settlement charges of $6.8 million in 4Q22, $17.0 million in 3Q22 and $20.3 million in 2Q22 $1,223.6 $1,229.8 $1,323.6 $1,285.6 $1,331.9 $666.1 $663.2 $687.9 $696.2 $705.9 $213.1 $220.9 $232.9 $210.8 $230.9 $203.5 $212.4 $229.4 $231.7 $229.3 $51.0 $51.3 $65.7 $61.3 $53.8$89.9 $82.0 $107.7 $85.6 $112.0 Other Operating Expense Occupancy Equipment and Software Outside Services Compensation and Employee Benefits 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Total Noninterest Expense ($ in millions) +9% +4%

 
6.7% 7.0% 7.1% 7.3% 7.4% 2Q22 3Q22 4Q22 1Q23 2Q23 10.5% 10.1% 10.8% 11.3% 11.3% 2Q22 3Q22 4Q22 1Q23 2Q23 Capital Update northerntrust.com / © 2023 Northern Trust 9 Capital Highlights • Robust capital and liquidity • $10.8 billion in Tier 1 capital • 64% of deposits covered by highly liquid assets including 38% by cash and central bank deposits • Declared $157.8 million in common stock dividends and $4.7 million in preferred stock dividends • Repurchased $99.3 million of common stock • Accumulated other comprehensive income (loss) was $(1.4) billion as of June 30, 2023 • $20 million capital accretion in Q2 2023 • Completed sale of $2.1 billion of non-high- quality liquid assets (non-HQLA) available- for-sale debt securities in Q1 2023 Northern Trust Corporation Capital Ratios 2Q 2023 CAPITAL RATIOS STANDARDIZED APPROACH ADVANCED APPROACH Common Equity Tier 1 Capital 11.3% 13.0% Tier 1 Capital 12.3% 14.1% Total Capital 14.4% 16.3% Tier 1 Leverage 7.4% 7.4% Supplementary Leverage N/A 8.3% Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. Standardized Common Equity Tier 1 Ratio Standardized Tier 1 Leverage Ratio

 

 
The following table presents a reconciliation of interest income, net interest income, net interest margin and total revenue prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) basis, which are non-GAAP financial measures. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. The adjustment to an FTE basis has no impact on net income. Reconciliation of Non-GAAP Financial Measures northerntrust.com / © 2023 Northern Trust 11 QUARTERS 2023 2022 ($ in Millions) SECOND FIRST FOURTH THIRD SECOND Net Interest Income Interest Income - GAAP $ 1,735.0 $ 1,455.4 $ 1,170.1 $ 799.3 $ 524.8 Add: FTE Adjustment 13.1 13.2 15.5 12.3 11.1 Interest Income (FTE) - Non-GAAP $ 1,748.1 $ 1,468.6 $ 1,185.6 $ 811.6 $ 535.9 Net Interest Income - GAAP $ 511.5 $ 531.2 $ 534.5 $ 513.0 $ 458.7 Add: FTE Adjustment 13.1 13.2 15.5 12.3 11.1 Net Interest Income (FTE) - Non-GAAP $ 524.6 $ 544.4 $ 550.0 $ 525.3 $ 469.8 Net Interest Margin - GAAP 1.53 % 1.58 % 1.58 % 1.54 % 1.31 % Net Interest Margin (FTE) - Non-GAAP 1.57 % 1.62 % 1.63 % 1.58 % 1.35 % Total Revenue Total Revenue - GAAP $ 1,757.1 $ 1,744.6 $ 1,519.0 $ 1,754.8 $ 1,768.7 Add: FTE Adjustment 13.1 13.2 15.5 12.3 11.1 Total Revenue (FTE) - Non-GAAP $ 1,770.2 $ 1,757.8 $ 1,534.5 $ 1,767.1 $ 1,779.8

 
Forward-looking Statements northerntrust.com / © 2023 Northern Trust 12 This presentation 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. This presentation should be reviewed together with Northern Trust Corporation’s Second Quarter 2023 earnings press release.

 

 
Exhibit 99.3
reportsa29a.jpg



Financial Trends
Second Quarter 2023
July 19, 2023



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



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



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


Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
20222023
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$389.3 $396.2 $394.8 $155.7 $334.6 $331.8 
1,489.9 1,428.9 1,141.0 1,490.6 1,282.4 Earnings Allocated to Common and Potential370.0 388.3 375.4 148.7 315.2 323.7 
  Common Shares
$6.68 $6.66 $5.48 $7.16 $6.16 Basic Earnings Per Share$1.78 $1.86 $1.80 $0.71 $1.51 $1.56 
6.64 6.63 5.46 7.14 6.14 Diluted Earnings Per Share1.77 1.86 1.80 0.71 1.51 1.56 
35 %— %(18 %)31 %(14 %)Diluted EPS Growth over Previous Year4 %8 %— %(63 %)(15 %)(16 %)
16.2 %14.9 %11.2 %13.9 %12.7 %Return on Average Common Equity14.2 %15.7 %14.9 %5.9 %12.4 %12.4 %
1.27 %1.27 %0.88 %0.99 %0.88 %Return on Average Assets0.97 %1.03 %1.07 %0.42 %0.92 %0.91 %
33.3 %32.4 %27.1 %31.5 %26.6 %
Profit Margin (pre-tax) (FTE)(1)
30.0 %31.0 %30.4 %13.4 %26.0 %25.6 %
25.9 %24.4 %19.7 %23.8 %19.6 %
Profit Margin (after-tax) (FTE)(1)
22.6 %22.3 %22.3 %10.1 %19.0 %18.7 %
72.3 %72.0 %75.9 %78.2 %71.6 %
Noninterest Income to Total Revenue (FTE)(1)
77.5 %73.6 %70.3 %64.2 %69.0 %70.4 %
62.5 %63.1 %65.1 %67.1 %65.1 %
Trust Fees to Total Revenue (FTE)(1)
67.7 %64.2 %61.0 %67.9 %60.5 %61.9 %
20.5 %23.2 %25.7 %23.1 %24.4 %Effective Tax Rate (US GAAP)23.8 %26.7 %24.7 %18.2 %24.6 %24.7 %
22.1 %24.5 %27.2 %24.5 %26.3 %
Effective Tax Rate (FTE)(1)
24.8 %28.2 %26.4 %24.4 %26.8 %26.9 %
Capital Ratios:(2)
Standardized Approach
12.9 %12.7 %12.8 %11.9 %10.8 %Common Equity Tier 1 Capital11.4 %10.5 %10.1 %10.8 %11.3 %11.3 %
14.1 %14.5 %13.9 %12.9 %11.8 %Tier 1 Capital12.4 %11.5 %11.1 %11.8 %12.3 %12.3 %
16.1 %16.3 %15.6 %14.1 %13.9 %Total Capital13.6 %12.6 %12.2 %13.9 %14.4 %14.4 %
8.0 %8.7 %7.6 %6.9 %7.1 %Tier 1 Leverage6.5 %6.7 %7.0 %7.1 %7.3 %7.4 %
Advanced Approach
13.7 %13.2 %13.4 %13.2 %11.5 %Common Equity Tier 1 Capital12.1 %11.6 %11.4 %11.5 %11.7 %13.0 %
15.0 %15.0 %14.5 %14.3 %12.5 %Tier 1 Capital13.2 %12.7 %12.5 %12.5 %12.7 %14.1 %
16.9 %16.8 %15.9 %15.3 %14.5 %Total Capital14.2 %13.7 %13.5 %14.5 %14.7 %16.3 %
8.0 %8.7 %7.6 %6.9 %7.1 %Tier 1 Leverage6.5 %6.7 %7.0 %7.1 %7.3 %7.4 %
7.0 %7.6 %8.6 %8.2 %7.9 %
Supplementary Leverage (3) (4)
7.9 %7.6 %7.7 %7.9 %8.3 %8.3 %
Per Share Information / Ratios:
$1.94 $2.60 $2.80 $2.80 $2.90 Cash Dividends Declared Per Common Share$0.70 $0.70 $0.75 $0.75 $0.75 $0.75 
29 %39 %51 %39 %47 %Dividend Payout Ratio40 %38 %42 %106 %50 %48 %
$83.59 $106.24 $93.14 $119.61 $88.49 Market Value Per Share (End of Period)$116.45 $96.48 $85.56 $88.49 $88.13 $74.14 
12.6 16.0 17.1 16.8 14.4 Stock Price Multiple of Earnings16.2 13.1 11.7 14.4 15.0 13.3 
(based on trailing 4 quarters of diluted EPS)
$43.95 $46.82 $51.87 $53.58 $49.78 Book Value Per Common Share (End of Period)$50.51 $48.87 $48.68 $49.78 $51.37 $51.94 
(1)
Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
(2)
Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
(3)
Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
(4)
From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.
1

Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
SECOND QUARTERCHANGE
20232022$%
Asset Servicing Trust, Investment and Other Servicing Fees$621.2 $642.7 $(21.5)(3)%
WM Trust, Investment and Other Servicing Fees 475.1 500.7 (25.6)(5)%
     Total Fees1,096.3 1,143.4 (47.1)(4)%
Foreign Exchange Trading Income50.1 77.6 (27.5)(35)%
Treasury Management Fees7.9 10.6 (2.7)(24)%
Security Commissions and Trading Income36.1 32.8 3.3 10 %
Other Operating Income55.2 45.6 9.6 21 %
Investment Security Gains (Losses), net— — — N/M
     Total Noninterest Income1,245.6 1,310.0 (64.4)(5)%
Interest Income (FTE)(1)
1,748.1 535.9 1,212.2 N/M
Interest Expense1,223.5 66.1 1,157.4 N/M
Net Interest Income (FTE)(1)
524.6 469.8 54.8 12 %
     Total Revenue (FTE)(1)
1,770.2 1,779.8 (9.6)(1)%
Provision for Credit Losses(15.5)4.5 (20.0)N/M
Compensation604.5 546.5 58.0 11 %
Employee Benefits101.4 119.6 (18.2)(15)%
Outside Services 230.9 213.1 17.8 8 %
Equipment and Software229.3 203.5 25.8 13 %
Occupancy53.8 51.0 2.8 6 %
Other Operating Expense112.0 89.9 22.1 25 %
     Total Noninterest Expense1,331.9 1,223.6 108.3 9 %
     Income before Income Taxes (FTE)(1)
453.8 551.7 (97.9)(18)%
Provision for Income Taxes108.9 144.4 (35.5)(25)%
Taxable Equivalent Adjustment13.1 11.1 2.0 17 %
     Total Taxes (FTE)(1)
122.0 155.5 (33.5)(22)%
     Net Income$331.8 $396.2 $(64.4)(16)%
Dividends on Preferred Stock$4.7 $4.7 $— — %
Earnings Allocated to Participating Securities3.4 3.2 0.2 6 %
Earnings Allocated to Common and Potential Common Shares323.7 388.3 (64.6)(17)%
Earnings Per Share - Basic$1.56 $1.86 $(0.30)(16)%
Earnings Per Share - Diluted$1.56 $1.86 $(0.30)(16)%
Average Basic Shares (000s)207,639 208,384 
Average Diluted Shares (000s)207,816 208,878 
End of Period Shares Outstanding (000s)207,004 208,387 
N/M - Not meaningful
(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
2

Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
20222023
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 Fees$662.4 $642.7 $603.2 $588.0 $603.0 $621.2 
1,580.6 1,640.6 1,673.4 1,873.8 1,936.3 WM Trust, Investment and Other Servicing Fees506.0 500.7 475.5 454.1 460.6 475.1 
3,753.7 3,852.1 3,995.0 4,361.1 4,432.6      Total Fees1,168.4 1,143.4 1,078.7 1,042.1 1,063.6 1,096.3 
307.2 250.9 290.4 292.6 288.6 Foreign Exchange Trading Income80.9 77.6 64.7 65.4 53.0 50.1 
51.8 44.5 45.4 44.3 39.3 Treasury Management Fees11.1 10.6 9.3 8.3 8.4 7.9 
98.3 103.6 133.2 140.2 136.2 Security Commissions and Trading Income36.2 32.8 32.1 35.1 34.7 36.1 
127.5 145.5 194.0 243.9 191.3 Other Operating Income41.1 45.6 57.3 47.3 46.8 55.2 
(1.0)(1.4)(0.4)(0.3)(214.0)Investment Security Gains (Losses), net— — (0.3)(213.7)6.9 — 
4,337.5 4,395.2 4,657.6 5,081.8 4,874.0      Total Noninterest Income1,337.7 1,310.0 1,241.8 984.5 1,213.4 1,245.6 
1,663.9 1,710.7 1,477.6 1,418.3 1,932.8 
Net Interest Income (FTE)(1)
387.7 469.8 525.3 550.0 544.4 524.6 
6,001.4 6,105.9 6,135.2 6,500.1 6,806.8 
     Total Revenue (FTE)(1)
1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 
(14.5)(14.5)125.0 (81.5)12.0 Provision for Credit Losses2.0 4.5 0.5 5.0 15.0 (15.5)
1,806.9 1,859.0 1,947.1 2,011.0 2,248.0 Compensation563.9 546.5 553.3 584.3 595.2 604.5 
356.7 355.2 387.7 431.4 437.4 Employee Benefits104.3 119.6 109.9 103.6 101.0 101.4 
739.4 774.5 763.1 849.4 880.3 Outside Services213.4 213.1 220.9 232.9 210.8 230.9 
582.2 612.1 673.5 736.3 838.8 Equipment and Software193.5 203.5 212.4 229.4 231.7 229.3 
201.1 212.9 230.1 208.7 219.1 Occupancy51.1 51.0 51.3 65.7 61.3 53.8 
330.6 329.8 346.7 299.1 359.3 Other Operating Expense79.7 89.9 82.0 107.7 85.6 112.0 
4,016.9 4,143.5 4,348.2 4,535.9 4,982.9      Total Noninterest Expense1,205.9 1,223.6 1,229.8 1,323.6 1,285.6 1,331.9 
1,999.0 1,976.9 1,662.0 2,045.7 1,811.9 
     Income before Income Taxes (FTE)(1)
517.5 551.7 536.8 205.9 457.2 453.8 
401.4 451.9 418.3 464.8 430.3 Provision for Income Taxes121.5 144.4 129.7 34.7 109.4 108.9 
41.2 32.8 34.4 35.6 45.6 Taxable Equivalent Adjustment6.7 11.1 12.3 15.5 13.2 13.1 
442.6 484.7 452.7 500.4 475.9 
     Total Taxes (FTE)(1)
128.2 155.5 142.0 50.2 122.6 122.0 
$1,556.4 $1,492.2 $1,209.3 $1,545.3 $1,336.0      Net Income$389.3 $396.2 $394.8 $155.7 $334.6 $331.8 
$6.68 $6.66 $5.48 $7.16 $6.16 Earnings Per Share - Basic$1.78 $1.86 $1.80 $0.71 $1.51 $1.56 
6.64 6.63 5.46 7.14 6.14 Earnings Per Share - Diluted1.77 1.86 1.80 0.71 1.51 1.56 
224,488 215,601 209,008 208,899 208,867 Average Diluted Shares (000s)208,809 208,878 208,889 208,894 208,730 207,816 
$46.4 $46.4 $56.2 $41.8 $41.8 
Preferred Dividends(2)
$16.2 $4.7 $16.2 $4.7 $16.2 $4.7 
(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
(2) Dividends on Preferred Stock in 2020 includes $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.
3

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
20222023
20182019202020212022Asset Servicing1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$1,501.1 $1,549.3 $1,586.1 $1,818.8 $1,700.1 Custody & Fund Administration$452.7 $433.8 $407.3 $406.3 $413.6 $427.4 
436.8 445.7 511.1 443.5 555.1 Investment Management146.9 148.4 136.0 123.8 126.2 134.1 
102.0 87.2 88.0 76.7 81.4 Securities Lending18.8 21.6 21.7 19.3 19.1 21.5 
133.2 129.3 136.4 148.3 159.7 Other44.0 38.9 38.2 38.6 44.1 38.2 
$2,173.1 $2,211.5 $2,321.6 $2,487.3 $2,496.3 Total Asset Servicing Trust, Investment and Other Servicing Fees$662.4 $642.7 $603.2 $588.0 $603.0 $621.2 
Wealth Management
$607.8 $619.3 $607.3 $698.7 $692.6 Central$181.7 $177.4 $171.3 $162.2 $163.6 $166.0 
401.7 422.2 442.1 509.3 504.0 East134.0 128.1 124.1 117.8 119.8 124.1 
320.0 330.9 337.7 380.2 382.1 West101.4 98.7 92.5 89.5 91.2 93.7 
251.1 268.2 286.3 285.6 357.6 Global Family Office88.9 96.5 87.6 84.6 86.0 91.3 
$1,580.6 $1,640.6 $1,673.4 $1,873.8 $1,936.3 Total WM Trust, Investment and Other Servicing Fees$506.0 $500.7 $475.5 $454.1 $460.6 $475.1 

4

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
CHANGE
Assets6/30/20236/30/2022$%
Federal Reserve and Other Central Bank Deposits$42,675.1 $37,867.5 $4,807.6 13 %
Interest-Bearing Due from and Deposits with Banks(1)
4,625.8 5,354.6 (728.8)(14)%
Federal Funds Sold— 10.0 (10.0)N/M
Securities Purchased under Agreements to Resell1,228.9 1,171.8 57.1 5 %
Debt Securities:
Available For Sale24,264.4 35,017.9 (10,753.5)(31)%
Held To Maturity26,006.3 20,112.6 5,893.7 29 %
Trading Account0.1 0.4 (0.3)(86)%
   Total Debt Securities50,270.8 55,130.9 (4,860.1)(9)%
Loans and Leases43,546.7 41,207.8 2,338.9 6 %
Other Interest-Earning Assets(2)
2,694.8 1,442.1 1,252.7 87 %
Total Earning Assets145,042.1 142,184.7 2,857.4 2 %
Allowance for Credit Losses(170.2)(154.7)(15.5)10 %
Cash and Due From Banks and Other Central Bank Deposits(3)
1,803.7 2,357.6 (553.9)(23)%
Buildings and Equipment473.6 476.6 (3.0)(1)%
Client Security Settlement Receivables431.3 2,284.7 (1,853.4)(81)%
Goodwill698.8 690.0 8.8 1 %
Other Assets8,473.2 9,947.4 (1,474.2)(15)%
Total Assets$156,752.5 $157,786.3 $(1,033.8)(1)%
Liabilities and Stockholders' Equity
Savings, Money Market and Other$23,535.5 $30,857.0 $(7,321.5)(24)%
Savings Certificates and Other Time3,327.0 785.0 2,542.0 N/M
Non- U.S. Offices - Interest-Bearing65,014.7 69,951.1 (4,936.4)(7)%
Total Interest-Bearing Deposits91,877.2 101,593.1 (9,715.9)(10)%
Federal Funds Purchased9,344.5 389.2 8,955.3 N/M
Securities Sold under Agreements to Repurchase988.1 799.4 188.7 24 %
Other Borrowings(4)
12,382.0 3,514.9 8,867.1 N/M
Senior Notes2,729.5 3,305.8 (576.3)(17)%
Long-Term Debt2,061.5 1,094.1 967.4 88 %
Total Interest-Related Funds119,382.8 110,696.5 8,686.3 8 %
Demand and Other Noninterest-Bearing Deposits21,326.4 32,081.5 (10,755.1)(34)%
Other Liabilities4,407.6 3,938.6 469.0 12 %
Total Liabilities145,116.8 146,716.6 (1,599.8)(1)%
Common Equity10,750.8 10,184.8 566.0 6 %
Preferred Equity884.9 884.9 — — %
Total Stockholders' Equity11,635.7 11,069.7 566.0 5 %
Total Liabilities and Stockholders' Equity$156,752.5 $157,786.3 $(1,033.8)(1)%
(1)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(2)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
5

Northern Trust Corporation
BALANCE SHEET TRENDS
  PERIOD AVERAGES(1)
($ in Millions)
20222023
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$45,200 $36,691 $30,549 $32,755 $36,642 $34,380 
6,023 5,997 5,401 5,780 4,193 
Interest-Bearing Due from and Deposits with Banks(2)
4,384 4,228 3,977 4,186 4,199 4,573 
21 13 2 — 6 Federal Funds Sold1 2 5 14 20 3 
1,478 835 1,253 1,067 1,071 Securities Purchased under Agreements to Resell692 1,149 1,271 1,166 1,046 1,239 
Debt Securities:
35,240 38,016 40,643 38,987 32,060 Available For Sale37,496 35,677 28,483 26,742 25,030 24,512 
14,258 11,650 14,353 20,617 22,970 Held To Maturity21,308 20,244 25,127 25,135 25,382 25,053 
1 1 1 1 12 Trading Account1 — — 46 1 — 
49,499 49,667 54,997 59,605 55,042    Total Debt Securities58,805 55,921 53,610 51,924 50,414 49,565 
32,029 31,053 33,499 37,208 41,031 Loans and Leases39,544 40,747 41,466 42,329 41,959 42,365 
783 1,034 1,077 1,186 1,248 
Other Interest-Earning Assets(3)
1,143 1,163 1,269 1,414 1,678 1,990 
113,731 107,109 124,133 143,873 138,839 Total Earning Assets149,768 139,902 132,147 133,789 135,957 134,116 
(126)(111)(178)(173)(154)Allowance for Credit Losses(152)(156)(154)(155)(162)(177)
2,534 2,394 2,603 2,286 2,070 
Cash and Due From Banks and Other Central Bank Deposits(4)
2,047 2,559 1,903 1,774 1,796 1,843 
439 426 509 503 489 Buildings and Equipment495 488 481 491 497 482 
1,002 1,070 1,358 1,530 1,722 Client Security Settlement Receivables1,826 1,588 1,667 1,810 1,099 593 
643 683 695 707 692 Goodwill704 694 686 686 692 697 
4,725 5,981 7,691 7,637 8,894 Other Assets7,455 9,010 9,673 9,409 8,180 8,346 
$122,947 $117,551 $136,811 $156,363 $152,552 Total Assets$162,143 $154,084 $146,402 $147,804 $148,060 $145,900 
Liabilities and Stockholders' Equity
$15,149 $16,578 $23,396 $28,339 $30,205 Savings, Money Market and Other$32,329 $30,968 $29,089 $28,489 $27,269 $22,961 
871 868 1,266 887 1,060 Savings Certificates and Other Time842 792 986 1,611 2,360 3,036 
58,557 54,885 60,486 69,713 65,031 Non- U.S. Offices - Interest-Bearing68,200 63,901 64,057 64,024 62,411 62,046 
74,577 72,331 85,149 98,940 96,296 Total Interest-Bearing Deposits101,371 95,661 94,133 94,123 92,040 88,044 
2,763 1,267 981 191 1,408 Federal Funds Purchased— 923 1,968 2,705 3,654 7,070 
525 339 218 232 434 Securities Sold under Agreements to Repurchase254 597 490 392 347 468 
7,496 7,753 6,401 5,050 5,464 
Other Borrowings(5)
3,691 4,187 5,991 7,933 11,324 12,133 
1,704 2,389 3,234 2,856 2,756 Senior Notes2,442 2,885 2,970 2,722 2,748 2,761 
1,297 1,139 1,189 1,166 1,259 Long-Term Debt1,128 1,096 1,088 1,719 2,066 2,070 
278 278 278 218 — Floating Rate Capital Debt— — — — — — 
88,638 85,495 97,450 108,653 107,616 Total Interest-Related Funds108,886 105,348 106,638 109,594 112,179 112,545 
20,527 17,456 23,362 31,144 29,296 Demand and Other Noninterest-Bearing Deposits37,129 33,733 24,356 22,186 20,146 17,555 
3,553 3,952 4,806 4,870 4,558 Other Liabilities4,616 4,096 4,473 5,044 4,453 4,351 
112,718 106,903 125,618 144,666 141,471 Total Liabilities150,632 143,177 135,467 136,824 136,778 134,451 
9,347 9,705 10,307 10,812 10,197 Common Equity10,626 10,022 10,051 10,095 10,397 10,564 
882 943 886 885 885 Preferred Equity885 885 885 885 885 885 
10,229 10,648 11,193 11,697 11,081 Total Stockholders' Equity11,511 10,907 10,936 10,979 11,282 11,449 
$122,947 $117,551 $136,811 $156,363 $152,552 Total Liabilities and Stockholders' Equity$162,143 $154,084 $146,402 $147,804 $148,060 $145,900 
(1)
Summations may not equal due to rounding.
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
6

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
20222023
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 Deposits27.9 %23.8 %20.9 %22.2 %24.7 %23.6 %
4.9 5.1 3.9 3.7 2.7 
Interest-Bearing Due from and Deposits with Banks(2)
2.7 2.7 2.7 2.8 2.8 3.1 
— — — — — Federal Funds Sold— — — — — — 
1.2 0.7 0.9 0.7 0.7 Securities Purchased under Agreements to Resell0.4 0.7 0.9 0.8 0.7 0.8 
Debt Securities:
28.7 32.3 29.7 24.9 21.0 Available For Sale23.1 23.2 19.5 18.1 16.9 16.8 
11.6 9.9 10.5 13.2 15.1 Held To Maturity13.1 13.1 17.2 17.0 17.1 17.2 
— — — — — Trading Account— — — — — — 
40.3 42.3 40.2 38.1 36.1    Total Debt Securities36.3 36.3 36.6 35.1 34.0 34.0 
26.1 26.4 24.5 23.8 26.9 Loans and Leases24.4 26.4 28.3 28.6 28.3 29.0 
0.6 0.9 0.8 0.8 0.8 
Other Interest-Earning Assets(3)
0.7 0.8 0.9 1.0 1.1 1.4 
92.5 91.1 90.7 92.0 91.0 Total Earning Assets92.4 90.8 90.3 90.5 91.8 91.9 
(0.1)(0.1)(0.1)(0.1)(0.1)Allowance for Credit Losses(0.1)(0.1)(0.1)(0.1)(0.1)(0.1)
2.1 2.0 1.9 1.5 1.4 
Cash and Due From Banks and Other Central Bank Deposits(4)
1.3 1.7 1.3 1.2 1.2 1.3 
0.4 0.4 0.4 0.3 0.3 Buildings and Equipment0.3 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 1.1 1.2 0.7 0.4 
0.5 0.6 0.5 0.5 0.5 Goodwill0.4 0.5 0.5 0.5 0.5 0.5 
3.8 5.1 5.6 4.9 5.8 Other Assets4.6 5.8 6.6 6.4 5.5 5.7 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Assets100.0 %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 Other19.9 %20.1 %19.9 %19.3 %18.4 %15.7 %
0.7 0.7 0.9 0.6 0.7 Savings Certificates and Other Time0.5 0.5 0.7 1.1 1.6 2.1 
47.6 46.7 44.2 44.6 42.6 Non- U.S. Offices - Interest-Bearing42.1 41.5 43.8 43.3 42.2 42.5 
60.7 61.5 62.2 63.3 63.1 Total Interest-Bearing Deposits62.5 62.1 64.3 63.7 62.2 60.3 
2.2 1.1 0.7 0.1 0.9 Federal Funds Purchased— 0.6 1.3 1.8 2.5 4.8 
0.4 0.3 0.2 0.1 0.3 Securities Sold under Agreements to Repurchase0.2 0.4 0.3 0.3 0.2 0.3 
6.1 6.6 4.7 3.2 3.6 
Other Borrowings(5)
2.3 2.7 4.1 5.4 7.6 8.3 
1.4 2.0 2.4 1.8 1.8 Senior Notes1.5 1.9 2.0 1.8 1.9 1.9 
1.1 1.0 0.9 0.7 0.8 Long-Term Debt0.7 0.7 0.7 1.2 1.4 1.4 
0.2 0.2 0.2 0.1 — Floating Rate Capital Debt— — — — — — 
72.1 72.7 71.2 69.5 70.5 Total Interest-Related Funds67.2 68.4 72.8 74.1 75.8 77.1 
16.7 14.8 17.1 19.9 19.2 Demand and Other Noninterest-Bearing Deposits22.9 21.9 16.6 15.0 13.6 12.0 
2.9 3.4 3.5 3.1 3.0 Other Liabilities2.8 2.7 3.1 3.4 3.0 3.0 
91.7 90.9 91.8 92.5 92.7 Total Liabilities92.9 92.9 92.5 92.6 92.4 92.2 
7.6 8.3 7.5 6.9 6.7 Common Equity6.6 6.5 6.9 6.8 7.0 7.2 
0.7 0.8 0.6 0.6 0.6 Preferred Equity0.5 0.6 0.6 0.6 0.6 0.6 
8.3 9.1 8.2 7.5 7.3 Total Stockholders' Equity7.1 7.1 7.5 7.4 7.6 7.8 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Liabilities and Stockholders' Equity100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
(1)
Summations may not equal due to rounding.
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

7

Northern Trust Corporation
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES
Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
20222023
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 Deposits0.16 %0.65 %1.76 %3.15 %4.17 %4.65 %
1.16 %1.21 %0.41 %0.16 %1.11 %
Interest-Bearing Due from and Deposits with Banks(2)
0.24 %0.62 %1.45 %2.18 %2.72 %2.82 %
2.18 %2.73 %1.37 %0.41 %3.22 %Federal Funds Sold0.45 %0.75 %2.79 %3.91 %4.79 %5.25 %
2.22 %2.10 %0.31 %0.33 %9.68 %
Securities Purchased under Agreements to Resell(4)
0.50 %2.47 %9.51 %22.24 %48.80 %92.09 %
Debt Securities:
2.13 %2.51 %1.77 %1.28 %1.91 %Available for Sale1.30 %1.55 %2.10 %3.02 %3.80 %4.17 %
1.08 %0.94 %0.59 %0.80 %1.26 %Held to Maturity0.94 %1.11 %1.38 %1.54 %1.64 %1.80 %
6.19 %3.29 %3.27 %1.59 %3.84 %Trading Account10.09 %5.40 %23.60 %3.54 %7.63 %42.53 %
1.83 %2.14 %1.46 %1.11 %1.64 %   Total Debt Securities1.17 %1.39 %1.76 %2.30 %2.72 %2.97 %
3.45 %3.74 %2.32 %1.92 %3.28 %Loans and Leases1.97 %2.53 %3.64 %4.86 %5.60 %6.06 %
5.01 %3.56 %3.63 %3.43 %4.03 %
Other Interest-Earning Assets(3)
2.69 %4.07 %3.92 %5.14 %4.67 %5.04 %
2.08 %2.36 %1.35 %1.00 %2.11 %Total Earning Assets1.06 %1.54 %2.44 %3.52 %4.38 %5.23 %
Interest-Bearing Funds
0.54 %0.97 %0.20 %0.05 %0.74 %Savings, Money Market and Other0.04 %0.24 %0.94 %1.83 %2.35 %2.67 %
0.90 %1.86 %1.30 %0.55 %1.68 %Savings Certificates and Other Time0.51 %0.58 %1.61 %2.86 %3.70 %4.23 %
0.50 %0.57 %(0.03)%(0.11)%0.56 %Non- U.S. Offices - Interest-Bearing(0.12)%0.02 %0.65 %1.70 %2.50 %2.90 %
0.52 %0.68 %0.06 %(0.06)%0.63 %Total Interest-Bearing Deposits(0.06)%0.10 %0.75 %1.76 %2.49 %2.89 %
1.82 %2.05 %0.22 %(0.19)%2.43 %Federal Funds Purchased0.05 %1.22 %2.00 %3.14 %4.45 %4.97 %
1.48 %1.89 %0.47 %0.07 %20.94 %
Securities Sold under Agreements to Repurchase(4)
0.49 %4.01 %20.72 %59.59 %135.62 %234.39 %
2.00 %2.34 %0.71 %0.28 %2.31 %Other Borrowings0.35 %0.80 %2.36 %3.95 %4.83 %5.17 %
3.13 %3.04 %2.24 %1.69 %3.36 %Senior Notes1.59 %2.65 %3.79 %5.18 %5.79 %6.14 %
3.47 %3.36 %2.24 %1.81 %3.49 %Long-Term Debt1.94 %2.47 %3.41 %5.19 %5.73 %5.89 %
2.72 %2.98 %1.52 %0.78 %— %Floating Rate Capital Debt— %— %— %— %— %— %
0.79 %0.96 %0.21 %0.02 %0.92 %Total Interest-Related Funds0.01 %0.25 %1.07 %2.30 %3.34 %4.36 %
1.29 %1.40 %1.14 %0.98 %1.19 %Net Interest Spread1.05 %1.29 %1.37 %1.22 %1.04 %0.87 %
1.46 %1.60 %1.19 %0.99 %1.39 %Net Interest Margin1.05 %1.35 %1.58 %1.63 %1.62 %1.57 %
(1)
Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
(2)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Includes the impact of balance sheet netting under master netting arrangements of approximately $21.3 billion for the three months ended June 30, 2023 and $15.7 billion for the six months ended June 30, 2023 . Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 5.06% for the three months ended June 30, 2023 and 4.92% for the six months ended June 30, 2023. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.04% for the three months ended June 30, 2023 and 4.88% for the six months ended June 30, 2023.
8

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
20222023
201820192020202120221st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$153.8 $138.2 $124.4 $259.9 $184.7 Beginning Allowance for Credit Losses$184.7 $189.9 $199.9 $195.9 $200.9 $213.0 
— — 13.7 — — 
Cumulative Effect Adjustment(1)
— — — — — — 
(14.5)(14.5)125.0 (81.5)12.0 Provision for Credit Losses2.0 4.5 0.5 5.0 15.0 (15.5)
(Charge-offs) Recoveries
(10.1)(6.5)(9.7)(0.7)(6.0)Charge-offs(0.1)— (5.4)(0.5)(4.0)(0.8)
9.0 7.2 6.5 7.0 10.2 Recoveries3.3 5.5 0.9 0.5 1.1 0.8 
(1.1)0.7 (3.2)6.3 4.2 Net (Charge-offs) Recoveries3.2 5.5 (4.5)— (2.9)— 
$138.2 $124.4 $259.9 $184.7 $200.9 Ending Allowance for Credit Losses$189.9 $199.9 $195.9 $200.9 $213.0 $197.5 
Allowance for Credit Losses Assigned to:
$112.6 $104.5 $190.7 $138.4 $144.3 Loans and Leases$136.3 $138.2 $138.7 $144.3 $159.9 $152.5 
25.6 19.9 61.1 34.1 38.5 Undrawn Loan Commitments and Standby Letters of Credit37.5 43.5 40.7 38.5 34.3 26.0 
— — 8.1 12.2 18.1 Debt Securities and Other Financial Assets16.1 18.2 16.5 18.1 18.8 19.0 
$138.2 $124.4 $259.9 $184.7 $200.9 Total Allowance for Credit Losses$189.9 $199.9 $195.9 $200.9 $213.0 $197.5 
$32,029 $31,053 $33,499 $37,208 $41,031 Average Loans and Leases Outstanding$39,544 $40,747 $41,466 $42,329 $41,959 $42,365 
— %— %(0.01)%0.02 %0.01 %Annualized Loan-Related Net (Charge-offs) Recoveries to 0.03 %0.05 %(0.04)%— %(0.03)%— %
Average Loans and Leases
$32,490 $31,410 $33,760 $40,481 $42,893 End of Period Loans and Leases Outstanding$39,239 $41,208 $43,992 $42,893 $42,370 $43,547 
0.35 %0.33 %0.56 %0.34 %0.34 %Allowance for Credit Losses Assigned to Loans0.35 %0.34 %0.32 %0.34 %0.38 %0.35 %
and Leases to Total Loans and Leases
Nonaccrual Assets
$109.3 $83.6 $131.7 $122.3 $45.9 Nonaccrual Loans and Leases$100.8 $89.7 $76.4 $45.9 $48.9 $47.1 
8.4 3.2 0.7 3.0 — Other Real Estate Owned (OREO)0.2 0.1 — — — 0.3 
$117.7 $86.8 $132.4 $125.3 $45.9 Total Nonaccrual Assets$101.0 $89.8 $76.4 $45.9 $48.9 $47.4 
0.36 %0.28 %0.39 %0.31 %0.11 %Nonaccrual Assets to Loans and Leases and OREO0.26 %0.22 %0.17 %0.11 %0.12 %0.11 %
Loans and Leases Allowance to Nonaccrual
1.0x1.3x1.4x1.1x3.1xLoans and Leases1.4x1.5x1.8x3.1x3.3x3.2x
(1)
Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by $13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of tax.
9

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
20222023
20182019202020212022Assets Under Management1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$790.8 $917.5 $1,057.5 $1,191.0 $898.1 Asset Servicing$1,091.6 $950.0 $873.7 $898.1 $962.1 $989.8 
Asset allocation:
403.3 483.8 551.7 626.6 485.0 Equities582.8 479.1 444.1 485.0 515.1 535.4 
105.3 114.6 120.1 132.6 107.1 Fixed Income Securities122.8 114.8 103.1 107.1 107.3 108.8 
132.4 156.1 198.8 236.2 157.7 Cash and Other Assets208.8 186.8 164.4 157.7 171.8 176.8 
149.8 163.0 186.9 195.6 148.3 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 
$278.6 $313.8 $347.8 $416.1 $351.4 Wealth Management$396.2 $352.8 $336.2 $351.4 $368.3 $376.0 
Asset allocation:
130.9 167.0 182.0 229.9 186.3 Equities218.1 185.0 171.0 186.3 197.0 205.1 
73.0 79.2 84.7 83.5 79.4 Fixed Income Securities81.6 80.1 79.5 79.4 80.3 79.9 
74.6 67.5 81.1 102.7 85.7 Cash and Other Assets96.5 87.7 85.7 85.7 91.0 91.0 
0.1 0.1 — — — Securities Lending Collateral— — — — — — 
$1,069.4 $1,231.3 $1,405.3 $1,607.1 $1,249.5 Total Assets Under Management$1,487.8 $1,302.8 $1,209.9 $1,249.5 $1,330.4 $1,365.8 
Asset allocation:
$534.2 $650.8 $733.7 $856.5 $671.3 Equities$800.9 $664.1 $615.1 $671.3 $712.1 $740.5 
178.3 193.8 204.8 216.1 186.5 Fixed Income Securities204.4 194.9 182.6 186.5 187.6 188.7 
207.0 223.6 279.9 338.9 243.4 Cash and Other Assets305.3 274.5 250.1 243.4 262.8 267.8 
149.9 163.1 186.9 195.6 148.3 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 
Assets Under Custody / Administration
$9,490.5 $11,311.6 $13,653.1 $15,183.2 $12,705.5 Asset Servicing$14,513.0 $12,812.2 $11,954.0 $12,705.5 $13,221.5 $13,483.5 
634.8 738.8 879.4 1,065.6 898.5 Wealth Management1,031.1 921.5 868.0 898.5 953.3 995.4 
$10,125.3 $12,050.4 $14,532.5 $16,248.8 $13,604.0 Total Assets Under Custody / Administration$15,544.1 $13,733.7 $12,822.0 $13,604.0 $14,174.8 $14,478.9 
Assets Under Custody
$6,971.0 $8,497.8 $10,387.7 $11,554.8 $9,712.3 Asset Servicing$10,987.5 $9,771.2 $9,125.5 $9,712.3 $10,065.6 $10,295.7 
Asset allocation:
3,043.0 3,866.6 4,751.0 5,404.3 4,312.8 Equities5,062.5 4,272.7 3,939.7 4,312.8 4,546.1 4,739.3 
2,700.2 3,102.3 3,742.6 3,997.5 3,252.1 Fixed Income Securities3,768.9 3,378.8 3,157.1 3,252.1 3,366.8 3,394.2 
1,078.0 1,365.9 1,707.2 1,957.4 1,999.1 Cash and Other Assets1,978.9 1,950.4 1,866.6 1,999.1 1,984.8 1,993.4 
149.8 163.0 186.9 195.6 148.3 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 
$622.9 $735.7 $875.1 $1,057.5 $892.3 Wealth Management$1,022.9 $913.0 $860.8 $892.3 $947.6 $989.1 
Asset allocation:
336.5 432.0 542.9 644.8 497.9 Equities615.2 512.8 469.3 497.9 545.0 589.4 
122.2 134.3 128.3 142.1 134.0 Fixed Income Securities140.5 135.0 131.6 134.0 134.6 130.5 
164.1 169.3 203.9 270.6 260.4 Cash and Other Assets267.2 265.2 259.9 260.4 268.0 269.2 
0.1 0.1 — — — Securities Lending Collateral— — — — — — 
$7,593.9 $9,233.5 $11,262.8 $12,612.3 $10,604.6 Total Assets Under Custody$12,010.4 $10,684.2 $9,986.3 $10,604.6 $11,013.2 $11,284.8 
Asset allocation:
$3,379.5 $4,298.6 $5,293.9 $6,049.1 $4,810.7 Equities$5,677.7 $4,785.5 $4,409.0 $4,810.7 $5,091.1 $5,328.7 
2,822.4 3,236.6 3,870.9 4,139.6 3,386.1 Fixed Income Securities3,909.4 3,513.8 3,288.7 3,386.1 3,501.4 3,524.7 
1,242.1 1,535.2 1,911.1 2,228.0 2,259.5 Cash and Other Assets2,246.1 2,215.6 2,126.5 2,259.5 2,252.8 2,262.6 
149.9 163.1 186.9 195.6 148.3 Securities Lending Collateral177.2 169.3 162.1 148.3 167.9 168.8 
Memo
$83.5 $94.2 $114.0 $144.9 $119.9 WM Global Family Office AUM$136.6 $121.9 $117.1 $119.9 $126.2 $128.5 
405.5 474.1 600.7 742.6 614.9 WM Global Family Office AUC720.8 642.2 598.4 614.9 660.0 694.0 
10

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial measures presented on an FTE basis.
20222023
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$383.5 $524.8 $799.3 $1,170.1 $1,455.4 $1,735.0 
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.1
2,362.6 2,532.7 1,677.9 1,442.1 2,923.3 Interest Income (FTE) - Non-GAAP390.2 535.9 811.6 1,185.6 1,468.6 1,748.1 
1,622.7 1,677.9 1,443.2 1,382.7 1,887.2 Net Interest Income - GAAP381.0 458.7 513.0 534.5 531.2 511.5
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.1
1,663.9 1,710.7 1,477.6 1,418.3 1,932.8 Net Interest Income (FTE) - Non-GAAP387.7 469.8 525.3 550.0 544.4 524.6
5,960.2 6,073.1 6,100.8 6,464.5 6,761.2 Total Revenue - GAAP1,718.7 1,768.7 1,754.8 1,519.0 1,744.6 1,757.1 
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.1
6,001.4 6,105.9 6,135.2 6,500.1 6,806.8 Total Revenue (FTE) - Non-GAAP1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 
1,957.8 1,944.1 1,627.6 2,010.1 1,766.3 Income before Income Taxes - GAAP510.8 540.6 524.5 190.4 444.0 440.7
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.1
1,999.0 1,976.9 1,662.0 2,045.7 1,811.9 Income before Income Taxes (FTE) - Non-GAAP517.5 551.7 536.8 205.9 457.2 453.8
401.4 451.9 418.3 464.8 430.3 Provision for Income Taxes - GAAP121.5 144.4 129.7 34.7 109.4 108.9
41.2 32.8 34.4 35.6 45.6 Add: FTE Adjustment6.7 11.1 12.3 15.5 13.2 13.1
442.6 484.7 452.7 500.4 475.9 Provision for Income Taxes (FTE) - Non-GAAP128.2 155.5 142.0 50.2 122.6 122.0
11

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.
20222023
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)
29.7 %30.6 %29.9 %12.5 %25.4 %25.1 %
33.3 %32.4 %27.1 %31.5 %26.6 %
Profit Margin (pre-tax) (FTE) - Non-GAAP (1)
30.0 %31.0 %30.4 %13.4 %26.0 %25.6 %
26.1 %24.6 %19.8 %23.9 %19.8 %
Profit Margin (after-tax) - GAAP (2)
22.7 %22.4 %22.5 %10.2 %19.2 %18.9 %
25.9 %24.4 %19.7 %23.8 %19.6 %
Profit Margin (after-tax) (FTE) - Non-GAAP (2)
22.6 %22.3 %22.3 %10.1 %19.0 %18.7 %
20.5 %23.2 %25.7 %23.1 %24.4 %
Effective Tax Rate - GAAP (3)
23.8 %26.7 %24.7 %18.2 %24.6 %24.7 %
22.1 %24.5 %27.2 %24.5 %26.3 %
Effective Tax Rate (FTE) - Non-GAAP (3)
24.8 %28.2 %26.4 %24.4 %26.8 %26.9 %
72.8 %72.4 %76.3 %78.6 %72.1 %
Noninterest Income to Total Revenue - GAAP (4)
77.8 %74.1 %70.8 %64.8 %69.5 %70.9 %
72.3 %72.0 %75.9 %78.2 %71.6 %
Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)
77.5 %73.6 %70.3 %64.2 %69.0 %70.4 %
63.0 %63.4 %65.5 %67.5 %65.6 %
Trust Fees to Total Revenue - GAAP (5)
68.0 %64.6 %61.5 %68.6 %61.0 %62.4 %
62.5 %63.1 %65.1 %67.1 %65.1 %
Trust Fees to Total Revenue (FTE) - Non-GAAP (5)
67.7 %64.2 %61.0 %67.9 %60.5 %61.9 %
1.25 %1.37 %1.11 %0.96 %1.15 %
Net Interest Spread - GAAP (6)
1.03 %1.25 %1.33 %1.17 %1.00 %0.83 %
1.29 %1.40 %1.14 %0.98 %1.19 %
Net Interest Spread (FTE) - Non-GAAP (6)
1.05 %1.29 %1.37 %1.22 %1.04 %0.87 %
1.43 %1.57 %1.16 %0.96 %1.36 %
Net Interest Margin - GAAP (7)
1.03 %1.31 %1.54 %1.58 %1.58 %1.53 %
1.46 %1.60 %1.19 %0.99 %1.39 %
Net Interest Margin (FTE) - Non-GAAP (7)
1.05 %1.35 %1.58 %1.63 %1.62 %1.57 %
(1)
Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
(2)
Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
(3)
Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
(4)
Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
(5)
Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
(6)
Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
(7)
Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.
12
v3.23.2
Cover Page Cover Page
Jul. 19, 2023
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 19, 2023
Entity Registrant Name NORTHERN TRUST CORP
Entity Incorporation, State or Country Code DE
Entity File Number 001-36609
Entity Tax Identification Number 36-2723087
Entity Address, Address Line One 50 South LaSalle Street
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60603
City Area Code 312
Local Phone Number 630-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000073124
Amendment Flag false
Entity Address, City or Town Chicago,
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, $1.66 2/3 Par Value
Trading Symbol NTRS
Security Exchange Name NASDAQ
Depositary Shares  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock
Trading Symbol NTRSO
Security Exchange Name NASDAQ
Northern (NASDAQ:NTRSO)
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