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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 20, 2022

NORTHERN TRUST CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

001-36609

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 class	Trading Symbol	Name of each exchange on which registered
Common Stock, $1.66 2/3 Par Value	NTRS	The NASDAQ Stock Market LLC
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock	NTRSO	The 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 20, 2022 press release, reporting on the registrant’s earnings for the three and six months ended June 30, 2022, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On July 20, 2022, the Corporation will hold a live conference call and webcast to discuss financial results for the three and six months ended June 30, 2022 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, 2022 (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 Number			Description
			99.1			Press Release
			99.2			Presentation Materials
			99.3			Financial Trends
			104			The 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 20, 2022

By:

/s/ Jason J. Tyler

Jason J. Tyler

Executive Vice President and Chief Financial Officer

EX-99.1 2 q22022earningsreleaseex991.htm EX-99.1 Document

Exhibit 99.1


NEWS RELEASE
www.northerntrust.com

INVESTOR CONTACT: Jennifer Childe | 312-444-3290 | Jennifer.Childe@ntrs.com MEDIA CONTACT: Doug Holt | 312-557-1571 | Doug.Holt@ntrs.com

NORTHERN TRUST CORPORATION REPORTS SECOND QUARTER
NET INCOME OF $396.2 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $1.86

Total Revenue

$1.8 billion

Return on Average Common Equity 15.7%

Common Equity Tier 1 Capital 10.5%

CHICAGO, JULY 20, 2022 — Northern Trust Corporation today reported second quarter net income per diluted common share of $1.86, compared to $1.77 in the first quarter of 2022 and $1.72 in the second quarter of 2021. Net income was $396.2 million, compared to $389.3 million in the prior quarter and $368.1 million in the prior-year quarter.


MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust delivered a solid second quarter financial performance, including revenue growth of 12%, earnings per share growth of 8%, both compared to the prior year, and return on average common equity of 15.7%. The elimination of fee waivers and our continued new business generation contributed to a 6% increase in trust, investment and other servicing fees, while rising interest rates drove a 37% increase in net interest income. Expenses grew 9%, reflecting growth and investment in our business, coupled with continued inflationary pressures. This combination resulted in three points of positive operating leverage compared to the prior year. As announced yesterday, our Board of Directors increased our dividend 7% to $0.75 per share for the third quarter, reflecting the strength of our balance sheet and capital position. As we look to the second half of the year, we remain focused on serving our clients, executing on our long-term growth priorities, and investing prudently for the future.”


FINANCIAL SUMMARY & KEY METRICS
										% Change Q2 2022 vs.
($ In Millions except per share data)	Q2 2022			Q1 2022			Q2 2021			Q1 2022		Q2 2021
Trust, Investment and Other Servicing Fees	$	1,143.4		$	1,168.4		$	1,075.4		(2)	%	6	%
Other Noninterest Income	166.6			169.3			169.3			(2)		(2)
Net Interest Income (FTE*)	469.8			387.7			343.9			21		37
Total Revenue (FTE*)	$	1,779.8		$	1,725.4		$	1,588.6		3	%	12	%

Noninterest Expense	$	1,223.6		$	1,205.9		$	1,120.8		1	%	9	%
Provision for Credit Losses	4.5			2.0			(27.0)			125		N/M
Provision for Income Taxes	144.4			121.5			118.4			19		22
FTE Adjustment*	11.1			6.7			8.3			68		35
Net Income	$	396.2		$	389.3		$	368.1		2	%	8	%

Earnings Allocated to Common and Potential Common Shares	$	388.3		$	370.0		$	360.2		5	%	8	%
Diluted Earnings per Common Share	$	1.86		$	1.77		$	1.72		5	%	8	%
Return on Average Common Equity	15.7		%	14.2		%	13.7		%
Return on Average Assets	1.03		%	0.97		%	0.96		%
Average Assets	$	154,084.1		$	162,143.0		$	154,300.1		(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 2022 RESULTS

ACCOUNTING RECLASSIFICATION

Beginning in the first quarter of 2022, Trust, Investment and Other Servicing fees were impacted by the change in classification of certain fees that were previously recorded in Other Operating Income or as a reduction of Other Operating Expense but resulted in no impact to net income. The accounting reclassification increased Trust, Investment and Other Servicing fees in the current-year quarter by $17.3 million, with a $6.9 million decrease in Other Operating Income and a $10.4 million increase in Other Operating Expense. The classification changes are deemed to be a better representation of the underlying nature of the business as they are directly tied to client asset levels and the related services are more akin to our core service offerings. Prior-year amounts have not been reclassified.


CLIENT ASSETS
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income.
	As of						% Change June 30, 2022 vs.
($ In Billions)	June 30, 2022*		March 31, 2022		June 30, 2021		March 31, 2022		June 30, 2021
Assets Under Custody/Administration
Asset Servicing	$	12,812.2	$	14,513.0	$	14,754.1	(12)	%	(13)	%
Wealth Management	921.5		1,031.1		973.0		(11)		(5)
Total Assets Under Custody/Administration	$	13,733.7	$	15,544.1	$	15,727.1	(12)	%	(13)	%
Assets Under Custody(1)
Asset Servicing	$	9,771.2	$	10,987.5	$	11,260.8	(11)	%	(13)	%
Wealth Management	913.0		1,022.9		967.8		(11)		(6)
Total Assets Under Custody	$	10,684.2	$	12,010.4	$	12,228.6	(11)	%	(13)	%
Assets Under Management
Asset Servicing	$	950.0	$	1,091.6	$	1,168.3	(13)	%	(19)	%
Wealth Management	352.8		396.2		371.1		(11)		(5)
Total Assets Under Management	$	1,302.8	$	1,487.8	$	1,539.4	(12)	%	(15)	%

(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 2022 vs.
($ In Millions)	Q2 2022		Q1 2022		Q2 2021		Q1 2022		Q2 2021
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	433.8	$	452.7	$	454.9	(4)	%	(5)	%
Investment Management	148.4		146.9		100.7		1		47
Securities Lending	21.6		18.8		19.5		14		11
Other	38.9		44.0		36.4		(11)		7
Total Asset Servicing	$	642.7	$	662.4	$	611.5	(3)	%	5	%

Wealth Management Trust, Investment and Other Servicing Fees
Central	$	177.4	$	181.7	$	174.3	(2)	%	2	%
East	128.1		134.0		127.2		(4)		1
West	98.7		101.4		93.8		(3)		5
Global Family Office (GFO)	96.5		88.9		68.6		9		41
Total Wealth Management	$	500.7	$	506.0	$	463.9	(1)	%	8	%

Total Consolidated Trust, Investment and Other Servicing Fees	$	1,143.4	$	1,168.4	$	1,075.4	(2)	%	6	%

Asset Servicing and Wealth Management trust, investment and other servicing fees are impacted by both one-month and one-quarter lagged asset values.

Total Asset Servicing trust, investment and other servicing fees decreased sequentially and increased from the prior-year quarter.

▪Custody and fund administration decreased sequentially primarily due to unfavorable currency translation and unfavorable markets. Custody and fund administration decreased from the prior-year quarter primarily due to unfavorable currency translation, partially offset by new business.

▪Investment management fees increased sequentially primarily due to lower money market mutual fund fee waivers, partially offset by client outflows and unfavorable markets. Investment management fees increased from the prior-year quarter primarily due to lower money market mutual fund fee waivers and the accounting reclassification previously discussed, partially offset by client outflows.

▪Other trust, investment and other servicing fees decreased sequentially primarily due to prior quarter fees associated with seasonal benefit payment services.


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS

Total Wealth Management trust, investment and other servicing fees decreased sequentially and increased from the prior-year quarter.

•Fees in the regions (Central, East and West) decreased sequentially primarily due to unfavorable markets, partially offset by lower money market mutual fund fee waivers. Fees in the regions increased from the prior-year quarter primarily due to lower money market mutual fund fee waivers and new business.

•Fees in GFO increased sequentially primarily due to lower money market mutual fund fee waivers, partially offset by unfavorable markets. Fees in GFO increased from the prior-year quarter primarily due to lower money market mutual fund fee waivers, new business and favorable markets.


OTHER NONINTEREST INCOME
							% Change Q2 2022 vs.
($ In Millions)	Q2 2022		Q1 2022		Q2 2021		Q1 2022		Q2 2021
Other Noninterest Income
Foreign Exchange Trading Income	$	77.6	$	80.9	$	70.6	(4)	%	10	%
Treasury Management Fees	10.6		11.1		11.3		(5)		(6)
Security Commissions and Trading Income	32.8		36.2		33.0		(9)		(1)
Other Operating Income	45.6		41.1		54.4		11		(16)
Investment Security Gains (Losses), net	—		—		—		N/M		N/M
Total Other Noninterest Income	$	166.6	$	169.3	$	169.3	(2)	%	(2)	%

N/M - Not meaningful

Foreign exchange trading income decreased sequentially primarily driven by lower client volumes and increased from the prior-year quarter primarily due to higher client volumes.

Security commissions and trading income decreased sequentially primarily due to lower revenue from core brokerage.

Other operating income increased sequentially primarily driven by nonrecurring items. Other operating income decreased compared to the prior-year quarter primarily driven by lower miscellaneous income and the accounting reclassification previously discussed, partially offset by other nonrecurring items. The lower miscellaneous income in the prior-year quarter comparison was primarily associated with a market value decrease in the supplemental compensation plans, which also resulted in a related decrease in supplemental compensation plan expense reported in other operating expense.


NET INTEREST INCOME
										% Change Q2 2022 vs.
($ In Millions)	Q2 2022			Q1 2022			Q2 2021			Q1 2022		Q2 2021
Net Interest Income
Interest Income (FTE*)	$	535.9		$	390.2		$	351.4		37 %		52 %
Interest Expense	66.1			2.5			7.5			N/M		N/M
Net Interest Income (FTE*)	$	469.8		$	387.7		$	343.9		21 %		37 %
Average Earning Assets	$	139,902		$	149,768		$	142,024		(7)%		(1)%
Net Interest Margin (FTE*)	1.35		%	1.05		%	0.97		%	30	bps	38	bps

(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

bps - basis points

Net interest income on an FTE basis increased sequentially primarily due to a higher net interest margin and nonrecurring interest received from certain nonaccrual loans, partially offset by lower average earning assets. Net interest income on an FTE basis increased from the prior-year quarter primarily due to a higher net interest margin, a favorable balance sheet mix shift and nonrecurring interest received from certain nonaccrual loans.

The net interest margin on an FTE basis increased sequentially and from the prior year primarily due to higher average interest rates, favorable balance sheet mix and nonrecurring interest received from certain nonaccrual loans.

Average earning assets decreased sequentially primarily due to lower levels of short-term interest-bearing deposits with banks and lower levels of securities, partially offset by higher levels of loans. Average earning assets decreased from the prior-year quarter primarily due to lower levels of securities and short-term interest-bearing deposits with banks, partially offset by higher levels of loans. The decline in the size of the average balance sheet was primarily the result of lower levels of client deposits.


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS


PROVISION FOR CREDIT LOSSES
	As of and for the three-months ended,						% Change June 30, 2022 vs.
($ In Millions)	June 30, 2022		March 31, 2022		June 30, 2021		March 31, 2022		June 30, 2021
Allowance for Credit Losses
Beginning Allowance for Credit Losses	$	189.9	$	184.7	$	230.8	3	%	(18)	%
Provision for Credit Losses	4.5		2.0		(27.0)		125		N/M
Net Recoveries (Charge-Offs)	5.5		3.2		3.2		N/M		N/M
Ending Allowance for Credit Losses	$	199.9	$	189.9	$	207.0	5	%	(3)	%
Allowance assigned to:
Loans and Leases	$	138.2	$	136.3	$	148.8	1	%	(7)	%
Undrawn Loan Commitments and Standby Letters of Credit	43.5		37.5		46.5		16		(6)
Debt Securities and Other Financial Assets	18.2		16.1		11.7		13		56
Ending Allowance for Credit Losses	$	199.9	$	189.9	$	207.0	5	%	(3)	%

N/M - Not meaningful

Q2 2022

The provision in the current quarter was primarily due to an increase in the reserve evaluated on a collective basis, partially offset by recoveries in the current quarter. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics. The increase in the collective basis reserve was primarily driven by a projected decline in economic conditions as compared to the previous period, partially offset by improvements in credit quality mainly within the commercial real estate and commercial and institutional portfolios.

Q1 2022

The provision in the prior quarter was primarily due to an increase in the reserve evaluated on an individual basis for two commercial borrowers, partially offset by a slight decrease in the reserve evaluated on a collective basis. The decrease in the collective basis reserve was primarily due to continued improvements in credit quality mainly within the commercial real estate portfolio, partially offset by increases in the reserve driven by projected economic conditions at the time.

Q2 2021

The release of credit reserves in the prior-year quarter was primarily due to a decrease in the reserve evaluated on a collective basis, driven by continued improvements in overall projected economic conditions at the time, as well as improved industry-specific conditions, partially offset by credit deterioration associated with a limited number of commercial real estate loans and overall portfolio growth.


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS


NONINTEREST EXPENSE
							% Change Q2 2022 vs.
($ In Millions)	Q2 2022		Q1 2022		Q2 2021		Q1 2022		Q2 2021
Noninterest Expense
Compensation	$	546.5	$	563.9	$	486.3	(3)	%	12	%
Employee Benefits	119.6		104.3		118.4		15		1
Outside Services	213.1		213.4		218.1		—		(2)
Equipment and Software	203.5		193.5		178.3		5		14
Occupancy	51.0		51.1		52.2		—		(2)
Other Operating Expense	89.9		79.7		67.5		13		33
Total Noninterest Expense	$	1,223.6	$	1,205.9	$	1,120.8	1	%	9	%
End of Period Full-Time Equivalent Staff	22,500		21,700		20,600		4	%	9	%

Compensation expense decreased sequentially primarily due to lower equity incentives, partially offset by higher salary expense. Compensation expense increased compared to the prior-year quarter primarily due to higher salary expense and cash-based incentives, partially offset by favorable currency translation.

Employee benefits expense increased sequentially primarily due to a $20.3 million pension settlement charge in the current quarter.

Outside services expense decreased compared to the prior-year quarter primarily due to lower third-party advisory fees and technical services costs, partially offset by higher consulting services.

Equipment and software expense increased sequentially and compared to the prior-year quarter primarily due to higher software costs driven by continued technology investments as well as amortization.

Other operating expense increased sequentially primarily due to higher business promotion and staff-related expense. Other operating expense increased compared to the prior-year quarter primarily due to the accounting reclassification previously discussed, higher business promotion, and other miscellaneous expense, partially offset by lower supplemental compensation plan expense. The lower supplemental compensation plan expense in the prior-year quarter comparison resulted in a related decrease in miscellaneous income reported in noninterest income.


PROVISION FOR INCOME TAX
										% Change Q2 2022 vs.
($ In Millions)	Q2 2022			Q1 2022			Q2 2021			Q1 2022		Q2 2021
Net Income
Income before Income Taxes	$	540.6		$	510.8		$	486.5		6	%	11	%
Provision for Income Taxes	144.4			121.5			118.4			19		22
Net Income	$	396.2		$	389.3		$	368.1		2	%	8	%
Effective Tax Rate	26.7		%	23.8		%	24.3		%	291	bps	236	bps

bps - basis points

The effective tax rate increased sequentially primarily due to a higher net tax impact from international operations in the current period, which includes a change in the earnings mix in tax jurisdictions in which the Corporation operates, limitations on the U.S. foreign tax credit, and reserves for uncertain tax positions. The effective tax rate increased compared to the prior-year quarter primarily due to a higher net tax impact from international operations, which includes a change in the earnings mix in tax jurisdictions in which the Corporation operates, limitations on the U.S. foreign tax credit, and reserves for uncertain tax positions, partially offset by the deferred tax impact of the UK statutory tax rate increase enacted in the prior-year quarter.


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS


CAPITAL ACTIONS

The Corporation returned approximately $148.3 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 $148.0 million to common stockholders and repurchased 2,844 shares of common stock, all of which were withheld related to share-based compensation, at a total cost of $0.3 million ($110.36 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, 2022, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.

An increase in accumulated other comprehensive loss, which was primarily due to an increase in net unrealized losses on the available for sale debt securities portfolio largely from higher interest rates, contributed to the current quarter’s change in capital ratios from the prior period.

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, 2022*				March 31, 2022				June 30, 2021
Capital Ratios - Northern Trust Corporation	Standardized Approach		Advanced Approach		Standardized Approach		Advanced Approach		Standardized Approach		Advanced Approach		Well-Capitalized Ratios	Minimum Capital Ratios
Common Equity Tier 1 Capital	10.5	%	11.6	%	11.4	%	12.1	%	12.0	%	13.1	%	N/A	4.5	%
Tier 1 Capital	11.5		12.7		12.4		13.2		13.1		14.2		6.0	6.0
Total Capital	12.6		13.7		13.6		14.2		14.5		15.5		10.0	8.0
Tier 1 Leverage	6.7		6.7		6.5		6.5		7.1		7.1		N/A	4.0
Supplementary Leverage	N/A		7.6		N/A		7.9		N/A		8.2		N/A	3.0


	June 30, 2022*				March 31, 2022				June 30, 2021
Capital Ratios - The Northern Trust Company	Standardized Approach		Advanced Approach		Standardized Approach		Advanced Approach		Standardized Approach		Advanced Approach		Well-Capitalized Ratios		Minimum Capital Ratios
Common Equity Tier 1 Capital	11.0	%	12.3	%	11.7	%	12.6	%	12.3	%	13.6	%	6.5	%	4.5	%
Tier 1 Capital	11.0		12.3		11.7		12.6		12.3		13.6		8.0		6.0
Total Capital	11.9		13.1		12.6		13.4		13.6		14.7		10.0		8.0
Tier 1 Leverage	6.3		6.3		6.1		6.1		6.7		6.7		5.0		4.0
Supplementary Leverage	N/A		7.2		N/A		7.4		N/A		7.7		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.


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS


RECONCILIATION TO FULLY TAXABLE EQUIVALENT

The following table presents a reconciliation of interest income, net interest income, net interest margin, and total revenue prepared in accordance with generally accepted accounting principles to such measures on an FTE basis, which are non-generally accepted accounting financial measures. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income.


	QUARTERS
	2022						2021
($ in Millions)	SECOND			FIRST			FOURTH			THIRD			SECOND
Net Interest Income
Interest Income - GAAP	$	524.8		$	383.5		$	362.2		$	351.3		$	343.1
Add: FTE Adjustment	11.1			6.7			10.0			10.7			8.3
Interest Income (FTE) - Non-GAAP	$	535.9		$	390.2		$	372.2		$	362.0		$	351.4

Net Interest Income - GAAP	$	458.7		$	381.0		$	360.6		$	346.4		$	335.6
Add: FTE Adjustment	11.1			6.7			10.0			10.7			8.3
Net Interest Income (FTE) - Non-GAAP	$	469.8		$	387.7		$	370.6		$	357.1		$	343.9

Net Interest Margin - GAAP	1.31		%	1.03		%	0.96		%	0.95		%	0.95		%
Net Interest Margin (FTE) - Non-GAAP	1.35		%	1.05		%	0.99		%	0.98		%	0.97		%

Total Revenue
Total Revenue - GAAP	$	1,768.7		$	1,718.7		$	1,667.0		$	1,633.8		$	1,580.3
Add: FTE Adjustment	11.1			6.7			10.0			10.7			8.3
Total Revenue (FTE) - Non-GAAP	$	1,779.8		$	1,725.4		$	1,677.0		$	1,644.5		$	1,588.6


NORTHERN TRUST CORPORATION SECOND QUARTER 2022 RESULTS


FORWARD LOOKING STATEMENTS

This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. Forward-looking statements also include statements, other than those related to historical facts, that relate to the ongoing COVID-19 pandemic and its impact on global economic and market conditions and Northern Trust's business, financial condition, and results of operations. 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 20, 2022.

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 23 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2022, Northern Trust had assets under custody/administration of US$13.7 trillion, and assets under management of US$1.3 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.


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


STATEMENT OF INCOME DATA										% Change(1)
($ In Millions Except Per Share Data)										Q2 2022 vs.
	Q2 2022			Q1 2022			Q2 2021			Q1 2022		Q2 2021
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,143.4		$	1,168.4		$	1,075.4		(2)	%	6	%
Foreign Exchange Trading Income	77.6			80.9			70.6			(4)		10
Treasury Management Fees	10.6			11.1			11.3			(5)		(6)
Security Commissions and Trading Income	32.8			36.2			33.0			(9)		(1)
Other Operating Income	45.6			41.1			54.4			11		(16)
Investment Security Gains (Losses), net	—			—			—			N/M		N/M
Total Noninterest Income	1,310.0			1,337.7			1,244.7			(2)		5

Net Interest Income
Interest Income	524.8			383.5			343.1			37		53
Interest Expense	66.1			2.5			7.5			N/M		N/M
Net Interest Income	458.7			381.0			335.6			20		37

Total Revenue	1,768.7			1,718.7			1,580.3			3		12

Provision for Credit Losses	4.5			2.0			(27.0)			125		N/M

Noninterest Expense
Compensation	546.5			563.9			486.3			(3)		12
Employee Benefits	119.6			104.3			118.4			15		1
Outside Services	213.1			213.4			218.1			—		(2)
Equipment and Software	203.5			193.5			178.3			5		14
Occupancy	51.0			51.1			52.2			—		(2)
Other Operating Expense	89.9			79.7			67.5			13		33
Total Noninterest Expense	1,223.6			1,205.9			1,120.8			1		9

Income before Income Taxes	540.6			510.8			486.5			6		11
Provision for Income Taxes	144.4			121.5			118.4			19		22
NET INCOME	$	396.2		$	389.3		$	368.1		2	%	8	%
Preferred Stock Dividends	4.7			16.2			4.7			(71)		—
NET INCOME APPLICABLE TO COMMON STOCK	$	391.5		$	373.1		$	363.4		5	%	8	%
Earnings Allocated to Participating Securities	3.2			3.1			3.2			4		—
Earnings Allocated to Common and Potential Common Shares	$	388.3		$	370.0		$	360.2		5	%	8	%

Per Common Share
Net Income
Basic	$	1.86		$	1.78		$	1.73		5	%	8	%
Diluted	1.86			1.77			1.72			5		8

Average Common Equity	$	10,022.1		$	10,626.3		$	10,666.1		(6)	%	(6)	%
Return on Average Common Equity	15.7		%	14.2		%	13.7		%
Return on Average Assets	1.03		%	0.97		%	0.96		%

Cash Dividends Declared per Common Share	$	0.70		$	0.70		$	0.70		—	%	—	%

Average Common Shares Outstanding (000s)
Basic	208,384			208,025			208,369
Diluted	208,878			208,809			209,138
Common Shares Outstanding (EOP) (000s)	208,387			208,380			208,395

(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


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


STATEMENT OF INCOME DATA
($ In Millions Except Per Share Data)	SIX MONTHS
	2022			2021			% Change(1)
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,311.8		$	2,139.1		8	%
Foreign Exchange Trading Income	158.5			149.3			6
Treasury Management Fees	21.7			22.5			(3)
Security Commissions and Trading Income	69.0			67.8			2
Other Operating Income	86.7			109.3			(21)
Investment Security Gains (Losses), net	—			—			N/M
Total Noninterest Income	2,647.7			2,488.0			6

Net Interest Income
Interest Income	908.3			693.0			31
Interest Expense	68.6			17.3			N/M
Net Interest Income	839.7			675.7			24

Total Revenue	3,487.4			3,163.7			10

Provision for Credit Losses	6.5			(57.0)			N/M

Noninterest Expense
Compensation	1,110.4			1,004.8			11
Employee Benefits	223.9			221.8			1
Outside Services	426.5			414.5			3
Equipment and Software	397.0			355.0			12
Occupancy	102.1			103.0			(1)
Other Operating Expense	169.6			139.2			22
Total Noninterest Expense	2,429.5			2,238.3			9

Income before Income Taxes	1,051.4			982.4			7
Provision for Income Taxes	265.9			239.2			11
NET INCOME	$	785.5		$	743.2		6	%
Preferred Stock Dividends	20.9			20.9			—
NET INCOME APPLICABLE TO COMMON STOCK	$	764.6		$	722.3		6	%
Earnings Allocated to Participating Securities	6.3			6.9			(8)
Earnings Allocated to Common and Potential Common Shares	$	758.3		$	715.4		6	%

Per Common Share
Net Income
Basic	$	3.64		$	3.44		6	%
Diluted	3.63			3.42			6

Average Common Equity	$	10,322.6		$	10,659.3		(3)	%
Return on Average Common Equity	14.9		%	13.7		%
Return on Average Assets	1.00		%	0.97		%

Cash Dividends Declared per Common Share	$	1.40		$	1.40		—	%

Average Common Shares Outstanding (000s)
Basic	208,205			208,242
Diluted	208,844			209,043
Common Shares Outstanding (EOP) (000s)	208,387			208,395

(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


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


BALANCE SHEET
($ In Millions)							% Change(1)
							June 30, 2022 vs.
	June 30, 2022		March 31, 2022		June 30, 2021		March 31, 2022		June 30, 2021
Assets
Federal Reserve and Other Central Bank Deposits and Other(2)	$	37,948.3	$	55,626.1	$	54,159.5	(32)	%	(30)	%
Interest-Bearing Due from and Deposits with Banks(3)	5,354.6		5,177.8		7,047.8		3		(24)
Federal Funds Sold	10.0		—		0.1		N/M		N/M
Securities Purchased under Agreements to Resell	1,171.8		1,031.4		947.8		14		24
Securities
U.S. Government	2,645.3		2,596.0		2,657.9		2		—
Obligations of States and Political Subdivisions	3,453.3		3,647.8		3,489.9		(5)		(1)
Government Sponsored Agency	22,219.8		23,007.1		24,144.9		(3)		(8)
Other(4)	28,173.8		30,110.2		29,551.3		(6)		(5)
Total Securities	56,492.2		59,361.1		59,844.0		(5)		(6)
Loans and Leases	41,207.8		39,239.1		37,406.6		5		10
Total Earning Assets	142,184.7		160,435.5		159,405.8		(11)		(11)
Allowance for Credit Losses	(154.7)		(152.0)		(160.5)		2		(4)
Cash and Due from Banks and Other Central Bank Deposits(5)	2,357.6		1,502.0		1,683.3		57		40
Buildings and Equipment	476.6		486.0		496.5		(2)		(4)
Client Security Settlement Receivables	2,284.7		2,183.9		2,011.6		5		14
Goodwill	690.0		702.0		709.4		(2)		(3)
Other Assets	9,947.4		7,407.6		8,145.0		34		22
Total Assets	$	157,786.3	$	172,565.0	$	172,291.1	(9)	%	(8)	%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other	$	30,857.0	$	31,703.7	$	31,604.7	(3)	%	(2)	%
Savings Certificates and Other Time	785.0		846.0		877.7		(7)		(11)
Non-U.S. Offices - Interest-Bearing	69,951.1		69,541.5		71,705.4		1		(2)
Total Interest-Bearing Deposits	101,593.1		102,091.2		104,187.8		—		(2)
Federal Funds Purchased	389.2		0.2		0.2		N/M		N/M
Securities Sold under Agreements to Repurchase	799.4		329.7		529.1		142		51
Other Borrowings	3,514.9		3,521.1		5,140.6		—		(32)
Senior Notes	3,305.8		2,377.5		3,036.0		39		9
Long-Term Debt	1,094.1		1,106.9		1,165.3		(1)		(6)
Floating Rate Capital Debt	—		—		277.8		N/M		(100)
Total Interest-Related Funds	110,696.5		109,426.6		114,336.8		1		(3)
Demand and Other Noninterest-Bearing Deposits	32,081.5		47,538.4		42,022.4		(33)		(24)
Other Liabilities	3,938.6		4,190.2		4,108.9		(6)		(4)
Total Liabilities	146,716.6		161,155.2		160,468.1		(9)		(9)
Common Equity	10,184.8		10,524.9		10,938.1		(3)		(7)
Preferred Equity	884.9		884.9		884.9		—		—
Total Equity	11,069.7		11,409.8		11,823.0		(3)		(6)
Total Liabilities and Stockholders’ Equity	$	157,786.3	$	172,565.0	$	172,291.1	(9)	%	(8)	%

(1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.

(2) Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.

(3) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.

(4) Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.

(5) Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


AVERAGE BALANCE SHEET
($ In Millions)							% Change(1)
							Q2 2022 vs.
	Q2 2022		Q1 2022		Q2 2021		Q1 2022		Q2 2021
Assets
Federal Reserve and Other Central Bank Deposits and Other(2)	$	36,708.4	$	45,220.6	$	37,424.5	(19)	%	(2)	%
Interest-Bearing Due from and Deposits with Banks(3)	4,227.6		4,384.0		6,736.7		(4)		(37)
Federal Funds Sold	2.2		0.7		0.1		199		N/M
Securities Purchased under Agreements to Resell	1,149.3		691.6		1,011.5		66		14
Securities
U.S. Government	2,648.1		2,500.7		2,676.0		6		(1)
Obligations of States and Political Subdivisions	3,486.6		3,793.4		3,373.0		(8)		3
Government Sponsored Agency	22,468.3		23,511.4		24,520.5		(4)		(8)
Other(4)	28,464.0		30,121.7		30,000.0		(6)		(5)
Total Securities	57,067.0		59,927.2		60,569.5		(5)		(6)
Loans and Leases	40,747.0		39,544.3		36,282.1		3		12
Total Earning Assets	139,901.5		149,768.4		142,024.4		(7)		(1)
Allowance for Credit Losses	(155.8)		(152.0)		(177.0)		2		(12)
Cash and Due from Banks and Other Central Bank Deposits(5)	2,559.1		2,047.0		2,402.5		25		7
Buildings and Equipment	487.7		495.1		504.8		(1)		(3)
Client Security Settlement Receivables	1,587.8		1,825.5		1,532.6		(13)		4
Goodwill	693.8		704.2		707.8		(1)		(2)
Other Assets	9,010.0		7,454.8		7,305.0		21		23
Total Assets	$	154,084.1	$	162,143.0	$	154,300.1	(5)	%	—	%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other	$	30,967.5	$	32,329.2	$	27,427.0	(4)	%	13	%
Savings Certificates and Other Time	792.3		842.3		898.9		(6)		(12)
Non-U.S. Offices - Interest-Bearing	63,900.7		68,199.6		69,202.4		(6)		(8)
Total Interest-Bearing Deposits	95,660.5		101,371.1		97,528.3		(6)		(2)
Federal Funds Purchased	922.8		0.2		195.3		N/M		N/M
Securities Sold under Agreements to Repurchase	596.7		253.7		228.5		135		161
Other Borrowings	4,186.7		3,690.7		5,195.7		13		(19)
Senior Notes	2,885.1		2,442.4		3,022.9		18		(5)
Long-Term Debt	1,096.4		1,128.3		1,168.8		(3)		(6)
Floating Rate Capital Debt	—		—		277.8		N/M		(100)
Total Interest-Related Funds	105,348.2		108,886.4		107,617.3		(3)		(2)
Demand and Other Noninterest-Bearing Deposits	33,733.3		37,129.1		30,469.2		(9)		11
Other Liabilities	4,095.6		4,616.3		4,662.6		(11)		(12)
Total Liabilities	143,177.1		150,631.8		142,749.1		(5)		—
Common Equity	10,022.1		10,626.3		10,666.1		(6)		(6)
Preferred Equity	884.9		884.9		884.9		—		—
Total Equity	10,907.0		11,511.2		11,551.0		(5)		(6)
Total Liabilities and Stockholders’ Equity	$	154,084.1	$	162,143.0	$	154,300.1	(5)	%	—	%

(1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


QUARTERLY TREND DATA	QUARTERS
($ In Millions Except Per Share Data)	2022						2021
	SECOND			FIRST			FOURTH			THIRD			SECOND
Net Income Summary
Trust, Investment and Other Servicing Fees	$	1,143.4		$	1,168.4		$	1,111.0		$	1,111.0		$	1,075.4
Other Noninterest Income	166.6			169.3			195.4			176.4			169.3
Net Interest Income	458.7			381.0			360.6			346.4			335.6
Total Revenue	1,768.7			1,718.7			1,667.0			1,633.8			1,580.3
Provision for Credit Losses	4.5			2.0			(11.5)			(13.0)			(27.0)
Noninterest Expense	1,223.6			1,205.9			1,168.9			1,128.7			1,120.8
Income before Income Taxes	540.6			510.8			509.6			518.1			486.5
Provision for Income Taxes	144.4			121.5			103.2			122.4			118.4
Net Income	$	396.2		$	389.3		$	406.4		$	395.7		$	368.1

Per Common Share
Net Income - Basic	$	1.86		$	1.78		$	1.92		$	1.81		$	1.73
- Diluted	1.86			1.77			1.91			1.80			1.72
Cash Dividends Declared per Common Share	0.70			0.70			0.70			0.70			0.70
Book Value (EOP)	48.87			50.51			53.58			53.04			52.49
Market Value (EOP)	96.48			116.45			119.61			107.81			115.62

Financial Ratios
Return on Average Common Equity	15.7		%	14.2		%	14.5		%	13.7		%	13.7		%
Return on Average Assets	1.03			0.97			1.00			1.00			0.96
Net Interest Margin (GAAP)	1.31			1.03			0.96			0.95			0.95
Net Interest Margin (FTE*)	1.35			1.05			0.99			0.98			0.97

Assets Under Custody / Administration ($ in Billions) - End Of Period
Asset Servicing	$	12,812.2		$	14,513.0		$	15,183.2		$	14,800.2		$	14,754.1
Wealth Management	921.5			1,031.1			1,065.6			976.0			973.0
Total Assets Under Custody / Administration	$	13,733.7		$	15,544.1		$	16,248.8		$	15,776.2		$	15,727.1

Assets Under Custody ($ In Billions) - End Of Period
Asset Servicing	$	9,771.2		$	10,987.5		$	11,554.8		$	11,283.6		$	11,260.8
Wealth Management	913.0			1,022.9			1,057.5			962.9			967.8
Total Assets Under Custody	$	10,684.2		$	12,010.4		$	12,612.3		$	12,246.5		$	12,228.6

Assets Under Management ($ In Billions) - End Of Period
Asset Servicing	$	950.0		$	1,091.6		$	1,191.0		$	1,159.5		$	1,168.3
Wealth Management	352.8			396.2			416.1			372.9			371.1
Total Assets Under Management	$	1,302.8		$	1,487.8		$	1,607.1		$	1,532.4		$	1,539.4

Asset Quality ($ In Millions) - End Of Period
Nonaccrual Loans and Leases	$	89.7		$	100.8		$	122.3		$	141.0		$	106.5
Other Real Estate Owned (OREO)	0.1			0.2			3.0			0.2			0.2
Total Nonaccrual Assets	$	89.8		$	101.0		$	125.3		$	141.2		$	106.7
Nonaccrual Assets / Loans and Leases and OREO	0.22		%	0.26		%	0.31		%	0.36		%	0.29		%
Gross Charge-offs	$	—		$	(0.1)		$	(0.3)		$	—		$	—
Gross Recoveries	5.5			3.3			1.4			1.1			3.2
Net Recoveries (Charge-offs)	$	5.5		$	3.2		$	1.1		$	1.1		$	3.2
Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases	0.05		%	0.03		%	0.01		%	0.01		%	0.04		%
Allowance for Credit Losses Assigned to:
Loans and Leases	$	138.2		$	136.3		$	138.4		$	143.9		$	148.8
Undrawn Loan Commitments and Standby Letters of Credit	43.5			37.5			34.1			39.8			46.5
Debt Securities and Other Financial Assets	18.2			16.1			12.2			11.4			11.7
Loans and Leases Allowance / Nonaccrual Loans and Leases	1.5		x	1.4		x	1.1		x	1.0		x	1.4		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.

EX-99.2 3 q22022earningspresentati.htm EX-99.2 q22022earningspresentati

2northerntrust.com | © 2022 NorthernTrust 2Q22 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq S&P 500 (11.9)% (16.4)% 3.5% (6.3)% 14.0% (4.9)% MSCI EAFE Local (9.0)% (8.8)% 0.8% (2.6)% 3.7% (4.4)% 1 month Libor (Avg) 91 bps 79 bps 3 month Libor (Avg) 138 bps 102 bps EUR / USD 13.4% 6.4% GBP / USD 13.8% 8.4% EXECUTIVE SUMMARY 1 Month Lag YoY represents the average month-ends of Mar. 2022 – May 2022 vs. Mar. 2021 – May 2021. Month Lag Seq represents the average month-ends of Mar. 2022 – May 2022 vs. Dec. 2021 – Feb. 2022. 2 Quarter Lag YoY represents quarter-end Mar. 2022 vs. Mar. 2021. Quarter Lag Seq represents quarter-end Mar. 2022 vs. Dec. 2021. Key Macroeconomic Factors  Net income of $396.2 million, earnings per diluted common share of $1.86.  Return on average common equity of 15.7%.  The current quarter included:  Pre-tax pension settlement charge of $20.3 million in the current year, compared to $17.6 million in the prior-year.  Current quarter effective tax rate of 26.7%.  Results for the quarter also included the impact of certain accounting reclassifications implemented at the start of 2022 which impact the year-over-year comparisons. For the current quarter, this resulted in a $17.3 million increase to Trust, Investment and Other Servicing Fees, with:  $6.9 million ($3.5 million in Other Asset Servicing fees and $3.4 million in Wealth Management) relating to amounts recorded in Other Operating Income in the prior year, and;  $10.4 million relating to amounts previously recorded in the prior year as a reduction of Other Operating Expense now reported as an increase in Asset Servicing Investment Management fees.

3northerntrust.com | © 2022 NorthernTrust SUMMARY RESULTS & KEY METRICS $ in millions (except EPS and as noted) % Change Vs. 2Q 2022 2Q 2021 1Q 2022 Revenue (FTE1) $1,779.8 12% 3% Noninterest Expense 1,223.6 9% 1% Provision for Credit Losses 4.5 N/M 125% Net Income $396.2 8% 2% Diluted Earnings per Share $1.86 8% 5% Return on Average Common Equity2 15.7% 13.7% 14.2% Pre-Tax Margin1,2 31.0% 31.1% 30.0% Expense to Trust Fee Ratio2 107% 104% 103% Assets under Custody / Administration3 (in billions) $13,734 (13)% (12)% Assets under Custody3 (in billions) $10,684 (13)% (11)% Assets under Management3 (in billions) $1,303 (15)% (12)% 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 10. 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

4northerntrust.com | © 2022 NorthernTrust TOTAL REVENUE $ in millions Total Revenue (FTE1) $1,075 $1,111 $1,111 $1,168 $1,143 $71 $66 $77 $81 $78 $99 $110 $119 $88 $89 $344 $357 $371 $388 $470 $1,589 $1,645 $1,677 $1,725 $1,780 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 +12% +3% Trust, Investment and Other Servicing Fees FX Trading Income Other Noninterest Income2 Net Interest Income (FTE1)  Trust, Investment & Other Servicing Fees were up 6% year-over-year and down 2% sequentially.  Foreign Exchange Trading Income was up 10% year-over-year and down 4% sequentially.  Other Noninterest Income was down 10% year-over-year and up 1% sequentially.  Net Interest Income (FTE1) was up 37% year-over-year and 21% sequentially. Categories may not sum due to rounding. 1 Net interest income and total revenue 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 10. 2 Other Noninterest Income includes Security Commissions and Trading Income, Treasury Management Fees, Other Operating Income, and Investment Security Gains (Losses), net

5northerntrust.com | © 2022 NorthernTrust TRUST, INVESTMENT & OTHER SERVICING FEES $ in millions (except as noted) % Change Vs. Trust, Investment & Other Servicing Fees 2Q 2022 2Q 2021 1Q 2022 Custody & Fund Administration $433.8 (5)% (4)% Investment Management 148.4 +47% +1% Securities Lending 21.6 +11% +14% Other 38.9 +7% (11)% Total Asset Servicing $642.7 +5% (3)% Central $177.4 +2% (2)% East 128.1 +1% (4)% West 98.7 +5% (3)% Global Family Office (GFO) 96.5 +41% +9% Total Wealth Management $500.7 +8% (1)% Client Assets1 (in billions): Asset Servicing AUC/A $12,812 (13)% (12)% Asset Servicing AUC $9,771 (13)% (11)% Asset Servicing AUM $950 (19)% (13)% Securities Lending Collateral $169 (15)% (4)% Wealth Management AUC/A $922 (5)% (11)% Wealth Management AUC $913 (6)% (11)% Wealth Management AUM $353 (5)% (11)%  Asset Servicing Trust, Investment & Other Servicing Fees were up 5% year-over-year and down 3% sequentially.  Custody & fund administration fees decreased year-over- year primarily due to unfavorable currency translation, partially offset by new business. Sequentially, custody & fund administration fees decreased primarily due to unfavorable currency translation and unfavorable markets.  Investment management fees increased year-over-year primarily due to lower money market mutual fund fee waivers and the previously mentioned accounting reclassification, partially offset by client outflows. Sequentially, investment management fess increased primarily due to lower money market mutual fund fee waivers, partially offset by client outflows and unfavorable markets.  Other fees decreased sequentially due to prior quarter fees associated with seasonal benefit payment services.  Wealth Management Trust, Investment & Other Servicing Fees were up 8% year-over-year and down 1% sequentially.  Fees in the regions (Central, East and West) increased year- over-year primarily due to lower money market mutual fund fee waivers and new business. Sequentially, fees in the regions decreased primarily due to unfavorable markets, partially offset by lower money market mutual fund fee waivers.  Fees in GFO increased year-over-year primarily due to lower money market mutual fund fee waivers, new business, and favorable markets. Sequentially, fees in GFO increased primarily due to lower money market mutual fund fee waivers, partially offset by unfavorable markets.  The second quarter of 2022 reflected the elimination of money market fee waivers relating to low interest rates. 1 Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

6northerntrust.com | © 2022 NorthernTrust NET INTEREST INCOME Average Earning Assets ($ in billions) $142.0 $144.0 $148.8 $149.8 $139.9 0.97% 0.98% 0.99% 1.05% 1.35% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 NII (FTE1) in millions $ 343.9 $ 357.1 $ 370.6 $ 387.7 $469.8 Loans & Leases Securities Deposits w/ Banks Fed Deposits & Other NIM (FTE1)  Net Interest Income (FTE1) was up 37% year-over- year and 21% sequentially. Net interest margin (FTE1) was 1.35%.  Average Earning Assets were down 1% year-over- year and 7% sequentially.  Average Total Deposits were up 1% year-over-year and down 7% sequentially.  Net Interest Margin increased 38 basis points from the prior-year quarter and increased 30 basis points sequentially. The year-over-year and sequential increases were both primarily due to higher average interest rates, favorable balance sheet mix, and $6.9 million in nonrecurring interest received from certain nonaccrual loans. 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 10.

7northerntrust.com | © 2022 NorthernTrust NONINTEREST EXPENSE $ in millions Total Noninterest Expense $605 $598 $618 $668 $666 $218 $211 $224 $213 $213 $178 $185 $196 $194 $204 $52 $54 $52 $51 $51 $68 $81 $79 $80 $90 $1,121 $1,129 $1,169 $1,206 $1,224 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 +9% +1% Compensation & Benefits Outside Services Equipment & Software Occupancy Other  Expenses totaled $1.2 billion in the second quarter, up 9% year-over-year and 1% sequentially.  The year-over-year growth in expenses was primarily driven by increases in compensation, equipment and software related costs, and other operating expense.  The sequential expense performance was primarily driven by increases in employee benefits, other operating expense, and equipment and software related costs, partially offset by decreases in compensation expense. Categories may not sum due to rounding.

8northerntrust.com | © 2022 NorthernTrust CAPITAL Northern Trust Corporation Capital Ratios Advanced Approach Common Equity Tier 1 11.6% Tier 1 12.7% Total 13.7% Tier 1 Leverage 6.7% Supplementary Leverage 7.6% Standardized Approach Common Equity Tier 1 10.5% Tier 1 11.5% Total 12.6% Tier 1 Leverage 6.7% Capital Return  Declared $148.0 million in common stock dividends and $4.7 million in preferred stock dividends in 2Q 2022.  Repurchased $0.3 million of common stock in 2Q 2022.  Accumulated other comprehensive income (loss) was ($1.5 billion) as of June 30, 2022, a change of ($0.6 billion) during the second quarter. As of June 30, 2022, capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.  Stress Capital Buffer requirement of 2.5%; resulting in minimum Common Equity Tier 1 requirement of 7%.

10northerntrust.com | © 2022 NorthernTrust RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following table presents a reconciliation of total revenue, net interest income, net interest margin and pre-tax margin 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. 2Q22 1Q22 4Q21 3Q21 2Q21 Reported 1,768.7$ 1,718.7$ 1,667.0$ 1,633.8$ 1,580.3$ FTE Adj. 11.1$ 6.7$ 10.0$ 10.7$ 8.3$ FTE 1,779.8$ 1,725.4$ 1,677.0$ 1,644.5$ 1,588.6$ 2Q22 1Q22 4Q21 3Q21 2Q21 Reported 458.7$ 381.0$ 360.6$ 346.4$ 335.6$ FTE Adj. 11.1$ 6.7$ 10.0$ 10.7$ 8.3$ FTE 469.8$ 387.7$ 370.6$ 357.1$ 343.9$ NIM - Reported 1.31% 1.03% 0.96% 0.95% 0.95% NIM - FTE 1.35% 1.05% 0.99% 0.98% 0.97% 2Q22 1Q22 2Q21 Revenue - Reported 1,768.7$ 1,718.7$ 1,580.3$ Pre-Tax Income - Reported 540.6$ 510.8$ 486.5$ FTE Adj.* 11.1$ 6.7$ 8.3$ Revenue - FTE 1,779.8$ 1,725.4$ 1,588.6$ Pre-Tax Income - FTE 551.7$ 517.5$ 494.8$ Pre-Tax Margin - Reported 30.6% 29.7% 30.8% Pre-Tax Margin - FTE 31.0% 30.0% 31.1% * FTE Adjustment applies to both revenue and pre-tax income Revenue Net Interest Income Pre-Tax Margin

11northerntrust.com | © 2022 NorthernTrust FORWARD-LOOKING STATEMENTS 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. Forward-looking statements also include statements, other than those related to historical facts, that relate to the ongoing COVID-19 pandemic and its impact on global economic and market conditions and Northern Trust’s business, financial condition, and results of operations. 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 2022 earnings press release, which is available at: www.northerntrust.com/about-us/investor-relations

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

Financial Trends

Second Quarter 2022

July 20, 2022

Please direct inquiries to:


Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or jennifer.childe@ntrs.com

Briar Rose
Vice President, Investor Relations
(312) 557-5297 or briar.rose@ntrs.com

The historical financial results and trends reflected in this report are not indicative of future financial results and trends for Northern Trust Corporation. This report should be read in conjunction with the Corporation's Second Quarter 2022 earnings press release, 2021 Annual Report to Shareholders, and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.


TABLE OF CONTENTS

	1	7
	Financial Summary	Balance Sheet Mix Trends

	2	8
	Income Statement	Interest Rate Trends

	3	9
	Net Income Trends	Asset Quality

	4	10
	Fee Detail	Trust Assets

	5	11
	Balance Sheet (EOP)	Reconciliation to FTE

	6	12
	Balance Sheet Trends	Reconciliation to FTE (Ratios)


Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
																				2021												2022
		2017			2018			2019			2020			2021						1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr*			3rd Qtr	4th Qtr
																	Profitability:
		$	1,199.0		$	1,556.4		$	1,492.2		$	1,209.3		$	1,545.3		Net Income			$	375.1		$	368.1		$	395.7		$	406.4		$	389.3		$	396.2
		1,130.4			1,489.9			1,428.9			1,141.0			1,490.6			Earnings Allocated to Common and Potential			355.2			360.2			376.5			398.7			370.0			388.3
																		Common Shares

		$	4.95		$	6.68		$	6.66		$	5.48		$	7.16		Basic Earnings Per Share			$	1.71		$	1.73		$	1.81		$	1.92		$	1.78		$	1.86
		4.92			6.64			6.63			5.46			7.14			Diluted Earnings Per Share			1.70			1.72			1.80			1.91			1.77			1.86
		14		%	35		%	—		%	(18		%)	31		%	Diluted EPS Growth over Previous Year			10		%	18		%	36		%	70		%	4		%	8		%

		12.6		%	16.2		%	14.9		%	11.2		%	13.9		%	Return on Average Common Equity			13.7		%	13.7		%	13.7		%	14.5		%	14.2		%	15.7		%

		1.00		%	1.27		%	1.27		%	0.88		%	0.99		%	Return on Average Assets			0.99		%	0.96		%	1.00		%	1.00		%	0.97		%	1.03		%

		31.0		%	33.3		%	32.4		%	27.1		%	31.5		%	Profit Margin (pre-tax) (FTE**)			31.6		%	31.1		%	32.2		%	31.0		%	30.0		%	31.0		%
		22.1		%	25.9		%	24.4		%	19.7		%	23.8		%	Profit Margin (after-tax) (FTE**)			23.6		%	23.2		%	24.1		%	24.2		%	22.6		%	22.3		%

		72.8		%	72.3		%	72.0		%	75.9		%	78.2		%	Noninterest Income to Total Revenue (FTE**)			78.2		%	78.4		%	78.3		%	77.9		%	77.5		%	73.6		%

		63.4		%	62.5		%	63.1		%	65.1		%	67.1		%	Trust Fees to Total Revenue (FTE**)			66.9		%	67.7		%	67.6		%	66.2		%	67.7		%	64.2		%

		26.6		%	20.5		%	23.2		%	25.7		%	23.1		%	Effective Tax Rate (US GAAP)			24.4		%	24.3		%	23.6		%	20.2		%	23.8		%	26.7		%
		28.6		%	22.1		%	24.5		%	27.2		%	24.5		%	Effective Tax Rate (FTE**)			25.4		%	25.6		%	25.2		%	21.8		%	24.8		%	28.2		%

																	Capital Ratios:
																		Standardized Approach
		12.6		%	12.9		%	12.7		%	12.8		%	11.9		%			Common Equity Tier 1 Capital	12.0		%	12.0		%	11.9		%	11.9		%	11.4		%	10.5		%
		13.8		%	14.1		%	14.5		%	13.9		%	12.9		%			Tier 1 Capital	13.0		%	13.1		%	12.9		%	12.9		%	12.4		%	11.5		%
		15.8		%	16.1		%	16.3		%	15.6		%	14.1		%			Total Capital	14.5		%	14.5		%	14.3		%	14.1		%	13.6		%	12.6		%
		7.8		%	8.0		%	8.7		%	7.6		%	6.9		%			Tier 1 Leverage	6.9		%	7.1		%	7.1		%	6.9		%	6.5		%	6.7		%

																		Advanced Approach
		13.5		%	13.7		%	13.2		%	13.4		%	13.2		%			Common Equity Tier 1 Capital	12.8		%	13.1		%	13.0		%	13.2		%	12.1		%	11.6		%
		14.8		%	15.0		%	15.0		%	14.5		%	14.3		%			Tier 1 Capital	14.0		%	14.2		%	14.1		%	14.3		%	13.2		%	12.7		%
		16.7		%	16.9		%	16.8		%	15.9		%	15.3		%			Total Capital	15.2		%	15.5		%	15.4		%	15.3		%	14.2		%	13.7		%
		7.8		%	8.0		%	8.7		%	7.6		%	6.9		%			Tier 1 Leverage	6.9		%	7.1		%	7.1		%	6.9		%	6.5		%	6.7		%
		6.8		%	7.0		%	7.6		%	8.6		%	8.2		%			Supplementary Leverage (a) (b)	8.1		%	8.2		%	8.4		%	8.2		%	7.9		%	7.6		%

																	Per Share Information / Ratios:
		$	1.60		$	1.94		$	2.60		$	2.80		$	2.80		Cash Dividends Declared Per Common Share			$	0.70		$	0.70		$	0.70		$	0.70		$	0.70		$	0.70
		33		%	29		%	39		%	51		%	39		%	Dividend Payout Ratio			41		%	41		%	39		%	37		%	40		%	38		%

		$	99.89		$	83.59		$	106.24		$	93.14		$	119.61		Market Value Per Share (End of Period)			$	105.11		$	115.62		$	107.81		$	119.61		$	116.45		$	96.48
		20.3			12.6			16.0			17.1			16.8			Stock Price Multiple of Earnings			18.8			19.7			17.0			16.8			16.2			13.1
																	(based on trailing 4 quarters of diluted EPS)

		$	41.28		$	43.95		$	46.82		$	51.87		$	53.58		Book Value Per Common Share (End of Period)			$	50.80		$	52.49		$	53.04		$	53.58		$	50.51		$	48.87

	*	Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
	**	Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
	(a)	Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
	(b)	From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.


Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)

	SIX MONTHS				CHANGE					SECOND QUARTER				CHANGE
	2022		2021		$		%			2022		2021		$		%
	$	1,305.1	$	1,232.0	$	73.1	6	%	Asset Servicing Trust, Investment and Other Servicing Fees	$	642.7	$	611.5	$	31.2	5	%
	1,006.7		907.1		99.6		11	%	WM Trust, Investment and Other Servicing Fees	500.7		463.9		36.8		8	%
	2,311.8		2,139.1		172.7		8	%	Total Fees	1,143.4		1,075.4		68.0		6	%
	158.5		149.3		9.2		6	%	Foreign Exchange Trading Income	77.6		70.6		7.0		10	%
	21.7		22.5		(0.8)		(3)	%	Treasury Management Fees	10.6		11.3		(0.7)		(6)	%
	69.0		67.8		1.2		2	%	Security Commissions and Trading Income	32.8		33.0		(0.2)		(1)	%
	86.7		109.3		(22.6)		(21)	%	Other Operating Income	45.6		54.4		(8.8)		(16)	%
	—		—		—		N/M		Investment Security Gains (Losses), net	—		—		—		N/M
	2,647.7		2,488.0		159.7		6	%	Total Noninterest Income	1,310.0		1,244.7		65.3		5	%

	926.1		707.9		218.2		31	%	Interest Income (FTE*)	535.9		351.4		184.5		52	%
	68.6		17.3		51.3		N/M		Interest Expense	66.1		7.5		58.6		N/M
	857.5		690.6		166.9		24	%	Net Interest Income (FTE*)	469.8		343.9		125.9		37	%

	3,505.2		3,178.6		326.6		10	%	Total Revenue (FTE*)	1,779.8		1,588.6		191.2		12	%

	6.5		(57.0)		63.5		N/M		Provision for Credit Losses	4.5		(27.0)		31.5		N/M

	1,110.4		1,004.8		105.6		11	%	Compensation	546.5		486.3		60.2		12	%
	223.9		221.8		2.1		1	%	Employee Benefits	119.6		118.4		1.2		1	%
	426.5		414.5		12.0		3	%	Outside Services	213.1		218.1		(5.0)		(2)	%
	397.0		355.0		42.0		12	%	Equipment and Software	203.5		178.3		25.2		14	%
	102.1		103.0		(0.9)		(1)	%	Occupancy	51.0		52.2		(1.2)		(2)	%
	169.6		139.2		30.4		22	%	Other Operating Expense	89.9		67.5		22.4		33	%
	2,429.5		2,238.3		191.2		9	%	Total Noninterest Expense	1,223.6		1,120.8		102.8		9	%

	1,069.2		997.3		71.9		7	%	Income before Income Taxes (FTE*)	551.7		494.8		56.9		12	%

	265.9		239.2		26.7		11	%	Provision for Income Taxes	144.4		118.4		26.0		22	%
	17.8		14.9		2.9		19	%	Taxable Equivalent Adjustment	11.1		8.3		2.8		35	%
	283.7		254.1		29.6		12	%	Total Taxes (FTE*)	155.5		126.7		28.8		23	%
	$	785.5	$	743.2	$	42.3	6	%	Net Income	$	396.2	$	368.1	$	28.1	8	%

	$	20.9	$	20.9	$	—	—	%	Dividends on Preferred Stock	$	4.7	$	4.7	$	—	—	%
	6.3		6.9		(0.6)		(8)	%	Earnings Allocated to Participating Securities	3.2		3.2		—		—	%
	758.3		715.4		42.9		6	%	Earnings Allocated to Common and Potential Common Shares	388.3		360.2		28.1		8	%

	$	3.64	$	3.44	$	0.20	6	%	Earnings Per Share - Basic	$	1.86	$	1.73	$	0.13	8	%
	$	3.63	$	3.42	$	0.21	6	%	Earnings Per Share - Diluted	$	1.86	$	1.72	$	0.14	8	%

	208,205		208,242						Average Basic Shares (000s)	208,384		208,369
	208,844		209,043						Average Diluted Shares (000s)	208,878		209,138
	208,387		208,395						End of Period Shares Outstanding (000s)	208,387		208,395

	N/M - Not meaningful
	* Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.


Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)

													2021								2022
	2017		2018		2019		2020		2021				1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	1,984.5	$	2,173.1	$	2,211.5	$	2,321.6	$	2,487.3	Asset Servicing Trust, Investment and Other Servicing Fees		$	620.5	$	611.5	$	630.2	$	625.1	$	662.4	$	642.7
	1,449.8		1,580.6		1,640.6		1,673.4		1,873.8		WM Trust, Investment and Other Servicing Fees		443.2		463.9		480.8		485.9		506.0		500.7
	3,434.3		3,753.7		3,852.1		3,995.0		4,361.1			Total Fees	1,063.7		1,075.4		1,111.0		1,111.0		1,168.4		1,143.4
	209.9		307.2		250.9		290.4		292.6		Foreign Exchange Trading Income		78.7		70.6		66.4		76.9		80.9		77.6
	56.4		51.8		44.5		45.4		44.3		Treasury Management Fees		11.2		11.3		11.2		10.6		11.1		10.6
	89.6		98.3		103.6		133.2		140.2		Security Commissions and Trading Income		34.8		33.0		36.5		35.9		36.2		32.8
	157.5		127.5		145.5		194.0		243.9		Other Operating Income		54.9		54.4		62.3		72.3		41.1		45.6
	(1.6)		(1.0)		(1.4)		(0.4)		(0.3)		Investment Security Gains (Losses), net		—		—		—		(0.3)		—		—
	3,946.1		4,337.5		4,395.2		4,657.6		5,081.8			Total Noninterest Income	1,243.3		1,244.7		1,287.4		1,306.4		1,337.7		1,310.0
	1,475.0		1,663.9		1,710.7		1,477.6		1,418.3		Net Interest Income (FTE*)		346.7		343.9		357.1		370.6		387.7		469.8
	5,421.1		6,001.4		6,105.9		6,135.2		6,500.1			Total Revenue (FTE*)	1,590.0		1,588.6		1,644.5		1,677.0		1,725.4		1,779.8

	(28.0)		(14.5)		(14.5)		125.0		(81.5)		Provision for Credit Losses		(30.0)		(27.0)		(13.0)		(11.5)		2.0		4.5

	1,733.7		1,806.9		1,859.0		1,947.1		2,011.0		Compensation		518.5		486.3		496.0		510.2		563.9		546.5
	319.9		356.7		355.2		387.7		431.4		Employee Benefits		103.4		118.4		101.7		107.9		104.3		119.6
	668.4		739.4		774.5		763.1		849.4		Outside Services		196.4		218.1		210.7		224.2		213.4		213.1
	524.0		582.2		612.1		673.5		736.3		Equipment and Software		176.7		178.3		185.2		196.1		193.5		203.5
	191.8		201.1		212.9		230.1		208.7		Occupancy		50.8		52.2		53.9		51.8		51.1		51.0
	331.6		330.6		329.8		346.7		299.1		Other Operating Expense		71.7		67.5		81.2		78.7		79.7		89.9
	3,769.4		4,016.9		4,143.5		4,348.2		4,535.9			Total Noninterest Expense	1,117.5		1,120.8		1,128.7		1,168.9		1,205.9		1,223.6
	1,679.7		1,999.0		1,976.9		1,662.0		2,045.7		Income before Income Taxes (FTE*)		502.5		494.8		528.8		519.6		517.5		551.7
	434.9		401.4		451.9		418.3		464.8		Provision for Income Taxes		120.8		118.4		122.4		103.2		121.5		144.4
	45.8		41.2		32.8		34.4		35.6		Taxable Equivalent Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	480.7		442.6		484.7		452.7		500.4			Total Taxes (FTE*)	127.4		126.7		133.1		113.2		128.2		155.5
	$	1,199.0	$	1,556.4	$	1,492.2	$	1,209.3	$	1,545.3		Net Income	$	375.1	$	368.1	$	395.7	$	406.4	$	389.3	$	396.2
	$	4.95	$	6.68	$	6.66	$	5.48	$	7.16	Earnings Per Share - Basic		$	1.71	$	1.73	$	1.81	$	1.92	$	1.78	$	1.86
	4.92		6.64		6.63		5.46		7.14		Earnings Per Share - Diluted		1.70		1.72		1.80		1.91		1.77		1.86
	229,654		224,488		215,601		209,008		208,899		Average Diluted Shares (000s)		208,946		209,138		208,923		208,593		208,809		208,878
	$	49.8	$	46.4	$	46.4	$	56.2	$	41.8	Preferred Dividends**		$	16.2	$	4.7	$	16.2	$	4.7	$	16.2	$	4.7

	* Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
	** Dividends on Preferred Stock in 2020 includes $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.


Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)

													2021								2022
	2017		2018		2019		2020		2021				1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
											Asset Servicing

	$	1,342.1	$	1,501.1	$	1,549.3	$	1,586.1	$	1,818.8	Custody & Fund Administration		$	446.0	$	454.9	$	460.2	$	457.7	$	452.7	$	433.8
	403.5		436.8		445.7		511.1		443.5		Investment Management		115.9		100.7		113.6		113.3		146.9		148.4
	96.4		102.0		87.2		88.0		76.7		Securities Lending		18.2		19.5		20.2		18.8		18.8		21.6
	142.6		133.2		129.3		136.4		148.3		Other		40.4		36.4		36.2		35.3		44.0		38.9
	$	1,984.6	$	2,173.1	$	2,211.5	$	2,321.6	$	2,487.3		Total Asset Servicing Trust, Investment and Other Servicing Fees	$	620.5	$	611.5	$	630.2	$	625.1	$	662.4	$	642.7

											Wealth Management

	$	575.5	$	607.8	$	619.3	$	607.3	$	698.7	Central		$	164.2	$	174.3	$	178.8	$	181.4	$	181.7	$	177.4
	356.2		401.7		422.2		442.1		509.3		East		119.0		127.2		130.2		132.9		134.0		128.1
	291.7		320.0		330.9		337.7		380.2		West		90.8		93.8		97.0		98.6		101.4		98.7
	226.3		251.1		268.2		286.3		285.6		Global Family Office		69.2		68.6		74.8		73.0		88.9		96.5
	$	1,449.7	$	1,580.6	$	1,640.6	$	1,673.4	$	1,873.8		Total WM Trust, Investment and Other Servicing Fees	$	443.2	$	463.9	$	480.8	$	485.9	$	506.0	$	500.7


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

	(1)		Memo - at 6/30/2022:
			Held to Maturity Debt Securities	$	20,112.6
			Available for Sale Debt Securities	35,017.9
			Trading Securities	0.4
			Other Earning Assets	1,361.3
				$	56,492.2

	(2)	Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(3)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
	(4)	Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(5)	Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.


Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
($ in Millions)

														2021								2022
	2017		2018		2019		2020		2021		Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	23,904	$	23,899	$	18,528	$	27,921	$	39,041		Federal Reserve and Other Central Banks Deposits and Other(2)		$	37,140	$	37,425	$	40,541	$	40,999	$	45,221	$	36,708
	7,143		6,023		5,997		5,401		5,780			Interest-Bearing Due from and Deposits with Banks(3)		6,464		6,737		5,165		4,778		4,384		4,228
	18		21		13		2		—			Federal Funds Sold		—		—		—		—		1		2
	1,832		1,478		835		1,253		1,067			Securities Purchased under Agreements to Resell		1,551		1,012		841		876		692		1,149
												Securities:
	6,342		5,737		5,297		4,257		2,685				U.S. Government	2,877		2,676		2,669		2,524		2,501		2,648
	887		725		981		2,194		3,532				Obligations of States and Political Subdivisions	3,199		3,373		3,691		3,856		3,793		3,487
	17,987		20,683		22,634		23,970		24,546				Government Sponsored Agency	24,846		24,521		24,414		24,408		23,511		22,468
	19,499		23,136		21,773		25,635		30,014				Other(4)	30,310		30,000		28,221		31,534		30,122		28,464
	44,716		50,281		50,684		56,057		60,778				Total Securities	61,231		60,570		58,996		62,321		59,927		57,067
	33,565		32,029		31,053		33,499		37,208			Loans and Leases		34,201		36,282		38,411		39,860		39,544		40,747
	111,178		113,731		107,109		124,133		143,873				Total Earning Assets	140,589		142,024		143,953		148,834		149,768		139,902

	(157)		(126)		(111)		(178)		(173)			Allowance for Credit Losses		(199)		(177)		(161)		(156)		(152)		(156)
	2,583		2,534		2,394		2,603		2,286			Cash and Due From Banks and Other Central Bank Deposits(5)		2,615		2,403		2,012		2,124		2,047		2,559
	466		439		426		509		503			Buildings and Equipment		509		505		500		497		495		488
	892		1,002		1,070		1,358		1,530			Client Security Settlement Receivables		1,669		1,533		1,284		1,639		1,826		1,588
	544		643		683		695		707			Goodwill		707		708		709		705		704		694
	4,101		4,725		5,981		7,691		7,637			Other Assets		7,367		7,305		8,156		7,711		7,455		9,010
	$	119,607	$	122,947	$	117,551	$	136,811	$	156,363			Total Assets	$	153,256	$	154,300	$	156,453	$	161,354	$	162,143	$	154,084

											Liabilities and Equity
	$	15,576	$	15,149	$	16,578	$	23,396	$	28,339		Savings, Money Market and Other		$	26,736	$	27,427	$	28,472	$	30,676	$	32,329	$	30,968
	1,273		871		868		1,266		887			Savings Certificates and Other Time		924		899		871		857		842		792
	56,583		58,557		54,885		60,486		69,713			Non- U.S. Offices - Interest-Bearing		68,306		69,202		70,211		71,099		68,200		63,901
	73,432		74,577		72,331		85,149		98,940				Total Interest-Bearing Deposits	95,965		97,528		99,554		102,631		101,371		95,661
	1,103		2,763		1,267		981		191			Federal Funds Purchased		406		195		166		—		—		923
	739		525		339		218		232			Securities Sold under Agreements to Repurchase		90		229		293		314		254		597
	4,854		7,496		7,753		6,401		5,050			Other Borrowings		4,681		5,196		5,527		4,789		3,691		4,187
	1,497		1,704		2,389		3,234		2,856			Senior Notes		3,058		3,023		2,841		2,510		2,442		2,885
	1,519		1,297		1,139		1,189		1,166			Long-Term Debt		1,179		1,169		1,166		1,151		1,128		1,096
	277		278		278		278		218			Floating Rate Capital Debt		278		278		278		42		—		—
	83,422		88,638		85,495		97,450		108,653				Total Interest-Related Funds	105,656		107,617		109,824		111,437		108,886		105,348
	23,073		20,527		17,456		23,362		31,144			Demand and Other Noninterest-Bearing Deposits		30,451		30,469		30,241		33,390		37,129		33,733
	3,132		3,553		3,952		4,806		4,870			Other Liabilities		5,611		4,663		4,534		4,685		4,616		4,096
	109,627		112,718		106,903		125,618		144,666				Total Liabilities	141,718		142,749		144,600		149,512		150,632		143,177
	9,099		9,347		9,705		10,307		10,812			Common Equity		10,653		10,666		10,968		10,957		10,626		10,022
	882		882		943		886		885			Preferred Equity		885		885		885		885		885		885
	9,981		10,229		10,648		11,193		11,697				Total Stockholders' Equity	11,537		11,551		11,853		11,842		11,511		10,907
	$	119,607	$	122,947	$	117,551	$	136,811	$	156,363			Total Liabilities and Stockholders' Equity	$	153,256	$	154,300	$	156,453	$	161,354	$	162,143	$	154,084


(1)	Summations may not equal due to rounding
(2)	Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)	Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)	Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.


Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)

														2021								2022
	2017		2018		2019		2020		2021		Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	20.0	%	19.4	%	15.8	%	20.4	%	25.0	%		Federal Reserve and Other Central Banks Deposits and Other(2)		24.2	%	24.3	%	25.9	%	25.4	%	27.9	%	23.8	%
	6.0		4.9		5.1		3.9		3.7			Interest-Bearing Due from and Deposits with Banks(3)		4.2		4.4		3.3		3.0		2.7		2.7
	—		—		—		—		—			Federal Funds Sold		—		—		—		—		—		—
	1.5		1.2		0.7		0.9		0.7			Securities Purchased under Agreements to Resell		1.0		0.7		0.5		0.5		0.4		0.7
												Securities:
	5.3		4.7		4.5		3.1		1.7				U.S. Government	1.9		1.7		1.7		1.6		1.5		1.7
	0.7		0.6		0.8		1.6		2.3				Obligations of States and Political Subdivisions	2.1		2.2		2.4		2.4		2.3		2.3
	15.0		16.8		19.3		17.5		15.7				Government Sponsored Agency	16.2		15.9		15.6		15.1		14.5		14.6
	16.3		18.8		18.5		18.7		19.2				Other(4)	19.8		19.4		18.0		19.5		18.6		18.5
	37.4		40.9		43.1		41.0		38.9				Total Securities	40.0		39.3		37.7		38.6		37.0		37.0
	28.1		26.1		26.4		24.5		23.8			Loans and Leases		22.3		23.5		24.6		24.7		24.4		26.4
	93.0		92.5		91.1		90.7		92.0				Total Earning Assets	91.7		92.0		92.0		92.2		92.4		90.8

	(0.1)		(0.1)		(0.1)		(0.1)		(0.1)			Allowance for Credit Losses		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)
	2.2		2.1		2.0		1.9		1.5			Cash and Due From Banks and Other Central Bank Deposits(5)		1.7		1.6		1.3		1.3		1.3		1.7
	0.4		0.4		0.4		0.4		0.3			Buildings and Equipment		0.3		0.3		0.3		0.3		0.3		0.3
	0.7		0.8		0.9		1.0		1.0			Client Security Settlement Receivables		1.1		1.0		0.8		1.0		1.1		1.0
	0.5		0.5		0.6		0.5		0.5			Goodwill		0.5		0.5		0.5		0.4		0.4		0.5
	3.4		3.8		5.1		5.6		4.9			Other Assets		4.8		4.7		5.2		4.8		4.6		5.8
	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%			Total Assets	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

											Liabilities and Equity
	13.0	%	12.3	%	14.1	%	17.1	%	18.1	%		Savings, Money Market and Other		17.4	%	17.8	%	18.2	%	19.0	%	19.9	%	20.1	%
	1.1		0.7		0.7		0.9		0.6			Savings Certificates and Other Time		0.6		0.6		0.6		0.5		0.5		0.5
	47.3		47.6		46.7		44.2		44.6			Non- U.S. Offices - Interest-Bearing		44.6		44.8		44.9		44.1		42.1		41.5
	61.4		60.7		61.5		62.2		63.3				Total Interest-Bearing Deposits	62.6		63.2		63.6		63.6		62.5		62.1
	0.9		2.2		1.1		0.7		0.1			Federal Funds Purchased		0.3		0.1		0.1		—		—		0.6
	0.6		0.4		0.3		0.2		0.1			Securities Sold under Agreements to Repurchase		0.1		0.1		0.2		0.2		0.2		0.4
	4.1		6.1		6.6		4.7		3.2			Other Borrowings		3.1		3.4		3.5		3.0		2.3		2.7
	1.3		1.4		2.0		2.4		1.8			Senior Notes		2.0		2.0		1.8		1.6		1.5		1.9
	1.3		1.1		1.0		0.9		0.7			Long-Term Debt		0.8		0.8		0.7		0.7		0.7		0.7
	0.2		0.2		0.2		0.2		0.1			Floating Rate Capital Debt		0.2		0.2		0.2		—		—		—
	69.7		72.1		72.7		71.2		69.5				Total Interest-Related Funds	68.9		69.7		70.2		69.1		67.2		68.4
	19.3		16.7		14.8		17.1		19.9			Demand and Other Noninterest-Bearing Deposits		19.9		19.7		19.3		20.7		22.9		21.9
	2.6		2.9		3.4		3.5		3.1			Other Liabilities		3.7		3.0		2.9		2.9		2.8		2.7
	91.7		91.7		90.9		91.8		92.5				Total Liabilities	92.5		92.5		92.4		92.7		92.9		92.9
	7.6		7.6		8.3		7.5		6.9			Common Equity		7.0		6.9		7.0		6.8		6.6		6.5
	0.7		0.7		0.8		0.6		0.6			Preferred Equity		0.6		0.6		0.6		0.5		0.5		0.6
	8.3		8.3		9.1		8.2		7.5				Total Stockholders' Equity	7.5		7.5		7.6		7.3		7.1		7.1
	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%			Total Liabilities and Stockholders' Equity	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


(1)	Summations may not equal due to rounding
(2)	Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)	Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)	Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.


Northern Trust Corporation
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES

		Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
															2021								2022
		2017		2018		2019		2020		2021		Earnings Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
		0.65	%	0.87	%	0.98	%	0.10	%	0.03	%		Federal Reserve and Other Central Banks Deposits and Other(2)		—	%	0.01	%	0.04	%	0.06	%	0.16	%	0.65	%
		0.89		1.16		1.21		0.41		0.16			Interest-Bearing Due from and Deposits with Banks(3)		0.15		0.16		0.15		0.18		0.24		0.62
		1.39		2.18		2.73		1.37		0.41			Federal Funds Sold		0.41		0.41		0.41		0.41		0.45		0.75
		1.48		2.22		2.10		0.31		0.33			Securities Purchased under Agreements to Resell(5)		0.27		0.34		0.38		0.38		0.50		2.47
													Securities:
		1.41		1.89		2.09		1.48		1.10				U.S. Government	1.02		1.03		1.01		1.35		1.62		1.74
		1.48		1.91		2.49		2.20		1.98				Obligations of States and Political Subdivisions	1.96		1.99		1.96		2.01		2.11		2.31
		1.57		2.20		2.58		1.71		1.21				Government Sponsored Agency	1.36		1.20		1.14		1.12		1.26		1.51
		1.30		1.59		1.75		1.26		1.02				Other(4)	0.99		1.03		1.10		0.98		1.00		1.27
		1.43		1.88		2.17		1.51		1.16				Total Securities	1.19		1.15		1.17		1.11		1.20		1.45
		2.77		3.45		3.74		2.32		1.92			Loans and Leases		2.05		1.91		1.87		1.88		1.97		2.53
		1.63	%	2.08	%	2.36	%	1.35	%	1.00	%			Total Earning Assets	1.03	%	0.99	%	1.00	%	0.99	%	1.06	%	1.54	%

												Interest-Bearing Funds
		0.16	%	0.54	%	0.97	%	0.20	%	0.05	%		Savings, Money Market and Other		0.06	%	0.04	%	0.04	%	0.04	%	0.04	%	0.24	%
		0.74		0.90		1.86		1.30		0.55			Savings Certificates and Other Time		0.67		0.49		0.53		0.49		0.51		0.58
		0.26		0.50		0.57		(0.03)		(0.11)			Non- U.S. Offices - Interest-Bearing		(0.11)		(0.11)		(0.12)		(0.12)		(0.12)		0.02
		0.25		0.52		0.68		0.06		(0.06)				Total Interest-Bearing Deposits	(0.06)		(0.06)		(0.07)		(0.06)		(0.06)		0.10
		0.95		1.82		2.05		0.22		(0.19)			Federal Funds Purchased		0.06		(0.95)		0.09		—		0.05		1.22
		0.81		1.48		1.89		0.47		0.07			Securities Sold under Agreements to Repurchase(5)		0.07		0.03		0.06		0.11		0.49		4.01
		1.04		2.00		2.34		0.71		0.28			Other Borrowings		0.30		0.25		0.26		0.32		0.35		0.80
		3.13		3.13		3.04		2.24		1.69			Senior Notes		1.82		1.82		1.64		1.44		1.59		2.65
		2.58		3.47		3.36		2.24		1.81			Long-Term Debt		1.83		1.83		1.79		1.80		1.94		2.47
		1.75		2.72		2.98		1.52		0.78			Floating Rate Capital Debt		0.81		0.76		0.75		0.86		—		—
		0.41	%	0.79	%	0.96	%	0.21	%	0.02	%			Total Interest-Related Funds	0.04	%	0.03	%	0.02	%	0.01	%	0.01	%	0.25	%



		1.22	%	1.29	%	1.40	%	1.14	%	0.98	%		Net Interest Spread		0.99	%	0.96	%	0.98	%	0.98	%	1.05	%	1.29	%

		1.33	%	1.46	%	1.60	%	1.19	%	0.99	%		Net Interest Margin		1.00	%	0.97	%	0.98	%	0.99	%	1.05	%	1.35	%


	(1)	Fully taxable equivalent. The 2018 through 2021 FTE adjustments are based on a federal income tax rate of 21% and the 2017 FTE adjustments are based on a federal income tax rate of 35%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
	(2)	Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(3)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
	(4)	Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(5)	Includes the impact of balance sheet netting under master netting arrangements of approximately $2.8 billion for the three months ended June 30, 2022. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 0.72% for the three months ended June 30, 2022. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 0.70% for the three months ended June 30, 2022.


Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)

																					2021												2022
		2017			2018			2019			2020			2021							1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr

		$	192.0		$	153.8		$	138.2		$	124.4		$	259.9		Beginning Allowance for Credit Losses				$	259.9		$	230.8		$	207.0		$	195.1		$	184.7		$	189.9

		—			—			—			13.7			—			Cumulative Effect Adjustment*				—			—			—			—			—			—

		(28.0)			(14.5)			(14.5)			125.0			(81.5)			Provision for Credit Losses				(30.0)			(27.0)			(13.0)			(11.5)			2.0			4.5

																	(Charge-offs) Recoveries
		(21.5)			(10.1)			(6.5)			(9.7)			(0.7)				Charge-offs			(0.4)			—			—			(0.3)			(0.1)			—
		11.3			9.0			7.2			6.5			7.0				Recoveries			1.3			3.2			1.1			1.4			3.3			5.5
		(10.2)			(1.1)			0.7			(3.2)			6.3					Net (Charge-offs) Recoveries		0.9			3.2			1.1			1.1			3.2			5.5



		$	153.8		$	138.2		$	124.4		$	259.9		$	184.7					Ending Allowance for Credit Losses	$	230.8		$	207.0		$	195.1		$	184.7		$	189.9		$	199.9


																	Allowance for Credit Losses Assigned to:
		$	131.2		$	112.6		$	104.5		$	190.7		$	138.4			Loans and Leases			$	165.4		$	148.8		$	143.9		$	138.4		$	136.3		$	138.2
		22.6			25.6			19.9			61.1			34.1				Undrawn Loan Commitments and Standby Letters of Credit			55.1			46.5			39.8			34.1			37.5			43.5
		—			—			—			8.1			12.2				Debt Securities and Other Financial Assets			10.3			11.7			11.4			12.2			16.1			18.2
		$	153.8		$	138.2		$	124.4		$	259.9		$	184.7				Total Allowance for Credit Losses		$	230.8		$	207.0		$	195.1		$	184.7		$	189.9		$	199.9

		$	33,565		$	32,029		$	31,053		$	33,499		$	37,208		Average Loans and Leases Outstanding				$	34,201		$	36,282		$	38,411		$	39,860		$	39,544		$	40,747

																	Annualized Loan-Related Net (Charge-offs) Recoveries to
		(0.03)		%	—		%	—		%	(0.01)		%	0.02		%		Average Loans and Leases			0.01		%	0.04		%	0.01		%	0.01		%	0.03		%	0.05		%

		$	32,592		$	32,490		$	31,410		$	33,760		$	40,481		End of Period Loans and Leases Outstanding				$	34,344		$	37,407		$	39,457		$	40,481		$	39,239		$	41,208


																	Allowance for Credit Losses Assigned to Loans
		0.40		%	0.35		%	0.33		%	0.56		%	0.34		%		and Leases to Total Loans and Leases			0.48		%	0.40		%	0.36		%	0.34		%	0.35		%	0.34		%


																	Nonaccrual Assets
		$	150.7		$	109.3		$	83.6		$	131.7		$	122.3			Nonaccrual Loans and Leases			$	123.8		$	106.5		$	141.0		$	122.3		$	100.8		$	89.7
		4.6			8.4			3.2			0.7			3.0				Other Real Estate Owned (OREO)			1.5			0.2			0.2			3.0			0.2			0.1
		$	155.3		$	117.7		$	86.8		$	132.4		$	125.3				Total Nonaccrual Assets		$	125.3		$	106.7		$	141.2		$	125.3		$	101.0		$	89.8

		0.48		%	0.36		%	0.28		%	0.39		%	0.31		%	Nonaccrual Assets to Loans and Leases and OREO				0.36		%	0.29		%	0.36		%	0.31		%	0.26		%	0.22		%
																	Loans and Leases Allowance to Nonaccrual
		0.9x			1.0x			1.3x			1.4x			1.1x				Loans and Leases			1.3		x	1.4x			1.0x			1.1x			1.4x			1.5x

	*	Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by $13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of tax.


Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)

														2021								2022
	2017		2018		2019		2020		2021					1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
											Assets under Management
	$	871.2	$	790.8	$	917.5	$	1,057.5	$	1,191.0	Asset Servicing			$	1,093.7	$	1,168.3	$	1,159.5	$	1,191.0	$	1,091.6	$	950.0
												Asset allocation:
	443.3		403.3		483.8		551.7		626.6				Equities	573.5		616.0		594.9		626.6		582.8		479.1
	111.9		105.3		114.6		120.1		132.6				Fixed Income Securities	117.1		132.6		127.9		132.6		122.8		114.8
	148.5		132.4		156.1		198.8		236.2				Cash and Other Assets	201.9		220.4		228.6		236.2		208.8		186.8
	167.5		149.8		163.0		186.9		195.6				Securities Lending Collateral	201.2		199.3		208.1		195.6		177.2		169.3
	$	289.8	$	278.6	$	313.8	$	347.8	$	416.1	Wealth Management			$	355.4	$	371.1	$	372.9	$	416.1	$	396.2	$	352.8
												Asset allocation:
	149.0		130.9		167.0		182.0		229.9				Equities	196.1		211.8		211.5		229.9		218.1		185.0
	71.6		73.0		79.2		84.7		83.5				Fixed Income Securities	81.8		82.3		82.7		83.5		81.6		80.1
	69.0		74.6		67.5		81.1		102.7				Cash and Other Assets	77.5		77.0		78.7		102.7		96.5		87.7
	0.2		0.1		0.1		—		—				Securities Lending Collateral	—		—		—		—		—		—
	$	1,161.0	$	1,069.4	$	1,231.3	$	1,405.3	$	1,607.1	Total Assets under Management			$	1,449.1	$	1,539.4	$	1,532.4	$	1,607.1	$	1,487.8	$	1,302.8
												Asset allocation:
	$	592.3	$	534.2	$	650.8	$	733.7	$	856.5			Equities	$	769.6	$	827.8	$	806.4	$	856.5	$	800.9	$	664.1
	183.5		178.3		193.8		204.8		216.1				Fixed Income Securities	198.9		214.9		210.6		216.1		204.4		194.9
	217.5		207.0		223.6		279.9		338.9				Cash and Other Assets	279.4		297.4		307.3		338.9		305.3		274.5
	167.7		149.9		163.1		186.9		195.6				Securities Lending Collateral	201.2		199.3		208.1		195.6		177.2		169.3

											Assets under Custody / Administration
	10,066.8		$	9,490.5	$	11,311.6	$	13,653.1	$	15,183.2		Asset Servicing		$	13,876.3	$	14,754.1	$	14,800.2	$	15,183.2	$	14,513.0	$	12,812.2
	655.8		634.8		738.8		879.4		1,065.6			Wealth Management		918.8		973.0		976.0		1,065.6		1,031.1		921.5
	$	10,722.6	$	10,125.3	$	12,050.4	$	14,532.5	$	16,248.8	Total Assets under Custody / Administration			$	14,795.1	$	15,727.1	$	15,776.2	$	16,248.8	$	15,544.1	$	13,733.7
											Assets under Custody
	$	7,439.1	$	6,971.0	$	8,497.8	$	10,387.7	$	11,554.8	Asset Servicing			$	10,618.0	$	11,260.8	$	11,283.6	$	11,554.8	$	10,987.5	$	9,771.2
												Asset allocation:
	3,400.1		3,043.0		3,866.6		4,751.0		5,404.3				Equities	5,005.7		5,334.8		5,298.8		5,404.3		5,062.5		4,272.7
	2,755.2		2,700.2		3,102.3		3,742.6		3,997.5				Fixed Income Securities	3,688.4		3,892.9		3,908.3		3,997.5		3,768.9		3,378.8
	1,116.3		1,078.0		1,365.9		1,707.2		1,957.4				Cash and Other Assets	1,722.7		1,833.8		1,868.4		1,957.4		1,978.9		1,950.4
	167.5		149.8		163.0		186.9		195.6				Securities Lending Collateral	201.2		199.3		208.1		195.6		177.2		169.3
	$	645.5	$	622.9	$	735.7	$	875.1	$	1,057.5	Wealth Management			$	916.2	$	967.8	$	962.9	$	1,057.5	$	1,022.9	$	913.0
												Asset allocation:
	375.6		336.5		432.0		542.9		644.8				Equities	575.0		616.3		600.7		644.8		615.2		512.8
	121.3		122.2		134.3		128.3		142.1				Fixed Income Securities	130.3		136.7		138.2		142.1		140.5		135.0
	148.4		164.1		169.3		203.9		270.6				Cash and Other Assets	210.9		214.8		224.0		270.6		267.2		265.2
	0.2		0.1		0.1		—		—				Securities Lending Collateral	—		—		—		—		—		—
	$	8,084.6	$	7,593.9	$	9,233.5	$	11,262.8	$	12,612.3	Total Assets under Custody			$	11,534.2	$	12,228.6	$	12,246.5	$	12,612.3	$	12,010.4	$	10,684.2
												Asset allocation:
	$	3,775.7	$	3,379.5	$	4,298.6	$	5,293.9	$	6,049.1			Equities	$	5,580.7	$	5,951.0	$	5,899.5	$	6,049.1	$	5,677.7	$	4,785.5
	2,876.5		2,822.4		3,236.6		3,870.9		4,139.6				Fixed Income Securities	3,818.7		4,029.6		4,046.5		4,139.6		3,909.4		3,513.8
	1,264.7		1,242.1		1,535.2		1,911.1		2,228.0				Cash and Other Assets	1,933.6		2,048.7		2,092.4		2,228.0		2,246.1		2,215.6
	167.7		149.9		163.1		186.9		195.6				Securities Lending Collateral	201.2		199.3		208.1		195.6		177.2		169.3

											Memo
	$	87.1	$	83.5	$	94.2	$	114.0	$	144.9		WM Global Family Office AUM		$	114.3	$	119.7	$	120.4	$	144.9	$	136.6	$	121.9
	422.9		405.5		474.1		600.7		742.6			WM Global Family Office AUC		635.2		675.4		668.9		742.6		720.8		642.2


Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
($ in Millions)

	Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-generally accepted accounting principle (GAAP). Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes. Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial measures presented on an FTE basis.

													2021								2022
	2017		2018		2019		2020		2021				1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr

	$	1,769.4	$	2,321.4	$	2,499.9	$	1,643.5	$	1,406.5	Interest Income - GAAP		$	349.9	$	343.1	$	351.3	$	362.2	$	383.5	$	524.8
	45.8		41.2		32.8		34.4		35.6		Add: FTE Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	1,815.2		2,362.6		2,532.7		1,677.9		1,442.1			Interest Income (FTE) - Non-GAAP	356.5		351.4		362.0		372.2		390.2		535.9

	1,429.2		1,622.7		1,677.9		1,443.2		1,382.7		Net Interest Income - GAAP		340.1		335.6		346.4		360.6		381.0		458.7
	45.8		41.2		32.8		34.4		35.6		Add: FTE Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	1,475.0		1,663.9		1,710.7		1,477.6		1,418.3			Net Interest Income (FTE) - Non-GAAP	346.7		343.9		357.1		370.6		387.7		469.8

	5,375.3		5,960.2		6,073.1		6,100.8		6,464.5		Total Revenue - GAAP		1,583.4		1,580.3		1,633.8		1,667.0		1,718.7		1,768.7
	45.8		41.2		32.8		34.4		35.6		Add: FTE Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	5,421.1		6,001.4		6,105.9		6,135.2		6,500.1			Total Revenue (FTE) - Non-GAAP	1,590.0		1,588.6		1,644.5		1,677.0		1,725.4		1,779.8

	1,633.9		1,957.8		1,944.1		1,627.6		2,010.1		Income before Income Taxes - GAAP		495.9		486.5		518.1		509.6		510.8		540.6
	45.8		41.2		32.8		34.4		35.6		Add: FTE Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	1,679.7		1,999.0		1,976.9		1,662.0		2,045.7			Income before Income Taxes (FTE) - Non-GAAP	502.5		494.8		528.8		519.6		517.5		551.7

	434.9		401.4		451.9		418.3		464.8		Provision for Income Taxes - GAAP		120.8		118.4		122.4		103.2		121.5		144.4
	45.8		41.2		32.8		34.4		35.6		Add: FTE Adjustment		6.6		8.3		10.7		10.0		6.7		11.1
	480.7		442.6		484.7		452.7		500.4			Provision for Income Taxes (FTE) - Non-GAAP	127.4		126.7		133.1		113.2		128.2		155.5


Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
RATIOS

		Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-generally accepted accounting principle (GAAP). Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes. Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.

													2021								2022
		2017		2018		2019		2020		2021			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr

		30.4	%	32.8	%	32.0	%	26.7	%	31.1	%	Profit Margin (pre-tax) - GAAP (1)	31.3	%	30.8	%	31.7	%	30.6	%	29.7	%	30.6	%
		31.0	%	33.3	%	32.4	%	27.1	%	31.5	%	Profit Margin (pre-tax) (FTE) - Non-GAAP (1)	31.6	%	31.1	%	32.2	%	31.0	%	30.0	%	31.0	%

		22.3	%	26.1	%	24.6	%	19.8	%	23.9	%	Profit Margin (after-tax) - GAAP (2)	23.7	%	23.3	%	24.2	%	24.4	%	22.7	%	22.4	%
		22.1	%	25.9	%	24.4	%	19.7	%	23.8	%	Profit Margin (after-tax) (FTE) - Non-GAAP (2)	23.6	%	23.2	%	24.1	%	24.2	%	22.6	%	22.3	%

		26.6	%	20.5	%	23.2	%	25.7	%	23.1	%	Effective Tax Rate - GAAP (3)	24.4	%	24.3	%	23.6	%	20.2	%	23.8	%	26.7	%
		28.6	%	22.1	%	24.5	%	27.2	%	24.5	%	Effective Tax Rate (FTE) - Non-GAAP (3)	25.4	%	25.6	%	25.2	%	21.8	%	24.8	%	28.2	%

		73.4	%	72.8	%	72.4	%	76.3	%	78.6	%	Noninterest Income to Total Revenue - GAAP (4)	78.5	%	78.8	%	78.8	%	78.4	%	77.8	%	74.1	%
		72.8	%	72.3	%	72.0	%	75.9	%	78.2	%	Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)	78.2	%	78.4	%	78.3	%	77.9	%	77.5	%	73.6	%

		63.9	%	63.0	%	63.4	%	65.5	%	67.5	%	Trust Fees to Total Revenue - GAAP (5)	67.2	%	68.1	%	68.0	%	66.6	%	68.0	%	64.6	%
		63.4	%	62.5	%	63.1	%	65.1	%	67.1	%	Trust Fees to Total Revenue (FTE) - Non-GAAP (5)	66.9	%	67.7	%	67.6	%	66.2	%	67.7	%	64.2	%

		1.18	%	1.25	%	1.37	%	1.11	%	0.96	%	Net Interest Spread - GAAP (6)	0.97	%	0.94	%	0.95	%	0.96	%	1.03	%	1.25	%
		1.22	%	1.29	%	1.40	%	1.14	%	0.98	%	Net Interest Spread (FTE) - Non-GAAP (6)	0.99	%	0.96	%	0.98	%	0.98	%	1.05	%	1.29	%

		1.29	%	1.43	%	1.57	%	1.16	%	0.96	%	Net Interest Margin - GAAP (7)	0.98	%	0.95	%	0.95	%	0.96	%	1.03	%	1.31	%
		1.33	%	1.46	%	1.60	%	1.19	%	0.99	%	Net Interest Margin (FTE) - Non-GAAP (7)	1.00	%	0.97	%	0.98	%	0.99	%	1.05	%	1.35	%

	(1)	Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
	(2)	Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
	(3)	Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
	(4)	Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
	(5)	Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
	(6)	Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
	(7)	Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.