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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 17, 2024

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 17, 2024 press release, reporting on the registrant’s earnings for the three and six months ended June 30, 2024, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On July 17, 2024, the Corporation will hold a live conference call and webcast to discuss financial results for the three and six months ended June 30, 2024 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, 2024 (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 17, 2024

By:

/s/ Jason J. Tyler

Jason J. Tyler

Executive Vice President and Chief Financial Officer

EX-99.1 2 q22024earningsreleaseex991.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 | 312-662-8315 | Doug.Holt@ntrs.com

NORTHERN TRUST CORPORATION REPORTS SECOND QUARTER
NET INCOME OF $896.1 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $4.34

CHICAGO, JULY 17, 2024 — Northern Trust Corporation today reported second quarter net income per diluted common share of $4.34, compared to $0.96 in the first quarter of 2024 and $1.56 in the second quarter of 2023. Net income was $896.1 million, compared to $214.7 million in the prior quarter and $331.8 million in the prior-year quarter.

Second Quarter 2024 results included the following:

•$878.4 million net gain related to the Visa transaction.

•$196.3 million of restructuring charges and other notable items, including severance-related charges of $85.2 million and a $70.0 million charitable commitment to the Northern Trust Foundation.


MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust executed well against our strategic priorities in the second quarter. Trust fees grew 6% over the prior year, deposit levels proved resilient, and core expenses were well-managed. Reported results included approximately $200 million in restructuring charges and other notable items, reflecting, in part, continued steps we are taking to optimize our cost base and drive efficiencies. In the quarter, we participated in Visa’s Class B common stock exchange offer, leading to a nearly $900 million gain and helping to drive our CET1 ratio to 12.6%. With the proceeds, we are contributing $70 million to our foundation and making important investments in our client franchise and enterprise resiliency, all while returning $405 million to shareholders. We enter the second half of the year on solid footing, focused on accelerating growth and improving our productivity.”


FINANCIAL SUMMARY & KEY METRICS
										% Change Q2 2024 vs.
($ In Millions except per share data)	Q2 2024			Q1 2024			Q2 2023			Q1 2024		Q2 2023
Trust, Investment and Other Servicing Fees	$	1,166.1		$	1,142.9		$	1,096.3		2	%	6	%
Other Noninterest Income (Loss)	1,026.5			(24.2)			149.3			N/M		N/M
Net Interest Income (FTE*)	529.8			535.4			524.6			(1)		1
Total Revenue (FTE*)	$	2,722.4		$	1,654.1		$	1,770.2		65	%	54	%

Noninterest Expense	$	1,533.9		$	1,364.7		$	1,331.9		12	%	15	%
Provision for Credit Losses	8.0			(8.5)			(15.5)			N/M		N/M
Provision for Income Taxes	277.5			75.9			108.9			N/M		155
FTE Adjustment*	6.9			7.3			13.1			(6)		(47)
Net Income	$	896.1		$	214.7		$	331.8		N/M		170	%

Earnings Allocated to Common and Potential Common Shares	$	884.3		$	196.1		$	323.7		N/M		173
Diluted Earnings per Common Share	$	4.34		$	0.96		$	1.56		N/M		179	%
Return on Average Common Equity	31.2		%	7.3		%	12.4		%
Return on Average Assets	2.44		%	0.60		%	0.91		%
Average Assets	$	148,001.2		$	145,118.3		$	145,899.6		2	%	1	%

N/M - Not meaningful

(*) Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principles (non-GAAP) financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS


Q2 2024 NOTABLES (PRE-TAX)

($ In Millions)	Q2 2024

Other Operating Income
Visa-Related Net Gain	$	878.4
Supplemental Pension Plan - Securities Repositioning	$	(6.5)
Investment Impairments	$	(7.6)

Compensation
Severance	$	81.8

Outside Services
Severance	$	3.4

Equipment and Software
Software Accelerations and Dispositions	$	16.4

Other Operating Expense
Northern Trust Foundation Charitable Contribution	$	70.0
Legal Settlement	$	10.6


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, 2024 vs.
($ In Billions)	June 30, 2024*		March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
Assets Under Custody/Administration
Asset Servicing	$	15,470.8	$	15,385.4	$	13,483.5	1	%	15	%
Wealth Management	1,096.6		1,087.1		995.4		1		10
Total Assets Under Custody/Administration	$	16,567.4	$	16,472.5	$	14,478.9	1	%	14	%
Assets Under Custody(1)
Asset Servicing	$	11,955.5	$	11,723.1	$	10,295.7	2	%	16	%
Wealth Management	1,085.9		1,081.0		989.1		—		10
Total Assets Under Custody	$	13,041.4	$	12,804.1	$	11,284.8	2	%	16	%
Assets Under Management
Asset Servicing	$	1,107.7	$	1,080.1	$	989.8	3	%	12	%
Wealth Management	419.4		420.6		376.0		—		12
Total Assets Under Management	$	1,527.1	$	1,500.7	$	1,365.8	2	%	12	%

(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 2024 vs.
($ In Millions)	Q2 2024		Q1 2024		Q2 2023		Q1 2024		Q2 2023
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	445.9	$	436.7	$	427.4	2	%	4	%
Investment Management	145.7		140.0		134.1		4		9
Securities Lending	16.5		17.9		21.5		(8)		(24)
Other	42.5		45.0		38.2		(6)		11
Total Asset Servicing	$	650.6	$	639.6	$	621.2	2	%	5	%

Wealth Management Trust, Investment and Other Servicing Fees
Central	$	180.7	$	178.3	$	166.0	1	%	9	%
East	132.7		129.9		124.1		2		7
West	103.3		99.9		93.7		3		10
Global Family Office (GFO)	98.8		95.2		91.3		4		8
Total Wealth Management	$	515.5	$	503.3	$	475.1	2	%	8	%

Total Consolidated Trust, Investment and Other Servicing Fees	$	1,166.1	$	1,142.9	$	1,096.3	2	%	6	%


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS

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

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

▪Custody and fund administration fees increased sequentially primarily due to favorable markets and higher transaction volumes. Custody and fund administration fees increased from the prior-year quarter primarily due to favorable markets and new business, partially offset by lower transaction volumes.

▪Investment management fees increased sequentially and from the prior-year quarter primarily due to favorable markets.

▪Securities Lending decreased from the prior-year quarter primarily due to lower spreads and lower volumes.

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

•Fees in the regions increased sequentially and from the prior-year quarter primarily due to favorable markets.

•Fees in GFO increased from the prior-year quarter primarily due to favorable markets and asset inflows.


OTHER NONINTEREST INCOME
							% Change Q2 2024 vs.
($ In Millions)	Q2 2024		Q1 2024		Q2 2023		Q1 2024		Q2 2023
Other Noninterest Income
Foreign Exchange Trading Income	$	58.4	$	57.0	$	50.1	2	%	17	%
Treasury Management Fees	9.0		9.3		7.9		(3)		12
Security Commissions and Trading Income	34.3		37.9		36.1		(10)		(5)
Other Operating Income	924.7		61.0		55.2		N/M		N/M
Investment Security Gains (Losses), net	0.1		(189.4)		—		(100)		N/M
Total Other Noninterest Income (Loss)	$	1,026.5	$	(24.2)	$	149.3	N/M		N/M

N/M - Not meaningful

Foreign exchange trading income increased from the prior-year quarter primarily driven by higher client volumes.

Other operating income increased sequentially and compared to the prior-year quarter primarily driven by the $878.4 million gain related to the net impact from the Visa transaction in the current quarter; partially offset by a loss recognized as a result of a securities repositioning related to the supplemental pension plan, and impairment charges taken on certain investments.

Investment Security Gains (Losses), net reflects the loss on the sale of available-for-sale debt securities in the prior quarter arising from a repositioning of the portfolio. There were no additional sales of available-for-sale debt securities completed in the current quarter.


NET INTEREST INCOME
										% Change Q2 2024 vs.
($ In Millions)	Q2 2024			Q1 2024			Q2 2023			Q1 2024		Q2 2023
Net Interest Income
Interest Income (FTE*)	$	2,513.4		$	2,452.9		$	1,748.1		2	%	44	%
Interest Expense	1,983.6			1,917.5			1,223.5			3		62
Net Interest Income (FTE*)	$	529.8		$	535.4		$	524.6		(1)	%	1	%
Average Earning Assets	$	135,401		$	133,817		$	134,116		1	%	1	%
Net Interest Margin (FTE*)	1.57		%	1.61		%	1.57		%	(4)	bps	—	bps

(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-GAAP financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

bps - basis points

Net interest income on an FTE basis decreased sequentially primarily due to higher funding costs; partially offset by higher yields on earning assets. Net interest income on an FTE basis increased compared to the prior-year quarter primarily due to higher client deposits, partially offset by higher funding costs.

The net interest margin on an FTE basis decreased sequentially primarily due to an unfavorable deposit mix.

Average earning assets increased sequentially primarily due to higher client deposits and the proceeds from the sale of Visa shares. Average earning assets increased compared to the prior-year quarter primarily due to deposit growth and the proceeds from the sale of Visa shares, partially offset by lower borrowing activity.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS


PROVISION FOR CREDIT LOSSES
	As of and for the three-months ended,						% Change June 30, 2024 vs.
($ In Millions)	June 30, 2024		March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
Allowance for Credit Losses
Beginning Allowance for Credit Losses	$	201.5	$	220.4	$	213.0	(9)	%	(5)	%
Provision for Credit Losses	8.0		(8.5)		(15.5)		N/M		N/M
Net Recoveries (Charge-Offs)	0.1		(10.4)		—		(101)		N/M
Ending Allowance for Credit Losses	$	209.6	$	201.5	$	197.5	4	%	6	%
Allowance assigned to:
Loans	$	167.7	$	162.4	$	152.5	3	%	10	%
Undrawn Loan Commitments and Standby Letters of Credit	29.5		25.2		26.0		17		13
Debt Securities and Other Financial Assets	12.4		13.9		19.0		(11)		(35)
Ending Allowance for Credit Losses	$	209.6	$	201.5	$	197.5	4	%	6	%

N/M - Not meaningful

Q2 2024

The provision in the current quarter resulted from an increase in collective reserves. The increase in collective reserves was primarily in the Commercial and Institutional (C&I) portfolio, driven by modest deterioration in credit quality, and, the Commercial Real Estate (CRE) portfolio, driven by expectations for weaker CRE prices. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics.

Q1 2024

The reserve release in the prior quarter resulted from decreases in both individual and collective reserves. The decrease in individual reserves was driven by one C&I loan that was subsequently charged-off. The decrease in collective reserve was primarily in the C&I portfolio, driven by improvement in the quality of the portfolio, and in the CRE portfolio, driven by improved macroeconomic factors.

Q2 2023

The reserve release in the prior-year quarter was primarily due to a decrease in the reserve evaluated on a collective basis, primarily driven by improved credit quality in certain C&I and certain CRE loans, partially offset by expectations for higher economic stress in the CRE market, particularly Office CRE.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS


NONINTEREST EXPENSE
							% Change Q2 2024 vs.
($ In Millions)	Q2 2024		Q1 2024		Q2 2023		Q1 2024		Q2 2023
Noninterest Expense
Compensation	$	665.2	$	627.1	$	604.5	6	%	10	%
Employee Benefits	100.2		101.1		101.4		(1)		(1)
Outside Services	260.9		229.3		230.9		14		13
Equipment and Software	277.5		252.7		229.3		10		21
Occupancy	54.8		54.1		53.8		1		2
Other Operating Expense	175.3		100.4		112.0		74		57
Total Noninterest Expense	$	1,533.9	$	1,364.7	$	1,331.9	12	%	15	%
End of Period Full-Time Equivalent Employees	23,000		23,000		23,500		—	%	(2)	%

Compensation expense increased sequentially primarily due to an $81.8 million severance-related charge, partially offset by a decrease in equity incentives. Compensation expense increased compared to the prior-year quarter primarily due to the current quarter severance-related charge, compared to a $36.7 million severance-related charge in the prior-year quarter, and higher base pay adjustments.

Outside services expense increased both sequentially and compared to the prior-year quarter primarily due to an increase in consulting, technical, and legal services.

Equipment and software expense increased both sequentially and compared to the prior-year quarter primarily due to software disposition charges in the current quarter, higher software amortization, and higher software support expense.

Other operating expense increased both sequentially and compared to the prior-year quarter primarily due to a $70.0 million charitable commitment and a legal settlement in the current quarter.


PROVISION FOR INCOME TAXES
										% Change Q2 2024 vs.
($ In Millions)	Q2 2024			Q1 2024			Q2 2023			Q1 2024		Q2 2023
Net Income
Income before Income Taxes	$	1,173.6		$	290.6		$	440.7		N/M		166	%
Provision for Income Taxes	277.5			75.9			108.9			N/M		155
Net Income	$	896.1		$	214.7		$	331.8		N/M		170	%
Effective Tax Rate	23.6		%	26.1		%	24.7		%	(250)	bps	(110)	bps

bps - basis points

The effective tax rate decreased both sequentially and compared to the prior-year quarter primarily due a lower state effective tax rate as a result of tax legislation enacted in the quarter and the resolution of state income tax audits.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS


CAPITAL ACTIONS

The Corporation returned approximately $405.1 million to common shareholders in the current quarter through dividends and the repurchase of shares. During the current quarter, the Corporation declared cash dividends totaling $154.3 million to common stockholders. The Corporation repurchased 3,001,216 shares of common stock, including 9,394 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $250.8 million ($83.57 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, 2024, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.

The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and The Northern Trust Company determined by Basel III phased-in requirements.


	June 30, 2024*				March 31, 2024				June 30, 2023
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	12.6	%	13.9	%	11.4	%	13.5	%	11.3	%	13.0	%	N/A	4.5	%
Tier 1 Capital	13.6		15.0		12.4		14.6		12.3		14.1		6.0	6.0
Total Capital	15.5		16.9		14.2		16.5		14.4		16.3		10.0	8.0
Tier 1 Leverage	8.0		8.0		7.8		7.8		7.4		7.4		N/A	4.0
Supplementary Leverage	N/A		9.0		N/A		8.8		N/A		8.3		N/A	3.0


	June 30, 2024*				March 31, 2024				June 30, 2023
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	12.9	%	14.6	%	11.9	%	14.2	%	12.1	%	14.3	%	6.5	%	4.5	%
Tier 1 Capital	12.9		14.6		11.9		14.2		12.1		14.3		8.0		6.0
Total Capital	14.6		16.1		13.4		15.8		13.9		16.2		10.0		8.0
Tier 1 Leverage	7.5		7.5		7.4		7.4		7.4		7.4		5.0		4.0
Supplementary Leverage	N/A		8.5		N/A		8.5		N/A		8.2		3.0		3.0

(*) Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 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 GAAP to such measures on an FTE non-GAAP basis. Management believes this presentation facilitates the analysis of asset yields and 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
	2024						2023
($ in Millions)	SECOND			FIRST			FOURTH			THIRD			SECOND
Net Interest Income
Interest Income - GAAP	$	2,506.5		$	2,445.6		$	2,199.6		$	1,935.0		$	1,735.0
Add: FTE Adjustment	6.9			7.3			18.0			13.2			13.1
Interest Income (FTE) - Non-GAAP	$	2,513.4		$	2,452.9		$	2,217.6		$	1,948.2		$	1,748.1

Net Interest Income - GAAP	$	522.9		$	528.1		$	483.1		$	456.2		$	511.5
Add: FTE Adjustment	6.9			7.3			18.0			13.2			13.1
Net Interest Income (FTE) - Non-GAAP	$	529.8		$	535.4		$	501.1		$	469.4		$	524.6

Net Interest Margin - GAAP(1)	1.55		%	1.59		%	1.53		%	1.41		%	1.53		%
Net Interest Margin (FTE) - Non-GAAP(1)	1.57		%	1.61		%	1.59		%	1.45		%	1.57		%

Total Revenue
Total Revenue - GAAP	$	2,715.5		$	1,646.8		$	1,545.3		$	1,726.5		$	1,757.1
Add: FTE Adjustment	6.9			7.3			18.0			13.2			13.1
Total Revenue (FTE) - Non-GAAP	$	2,722.4		$	1,654.1		$	1,563.3		$	1,739.7		$	1,770.2

(1)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.


NORTHERN TRUST CORPORATION SECOND QUARTER 2024 RESULTS


FORWARD LOOKING STATEMENTS

This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including the factors discussed in Northern Trust’s most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available on Northern Trust’s website. We caution you not to place undue reliance on any forward-looking statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to update its forward-looking statements.


WEBCAST OF SECOND QUARTER EARNINGS CONFERENCE CALL

Northern Trust’s second quarter earnings conference call will be webcast on July 17, 2024.

The live call will be conducted at 8:30 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 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2024, Northern Trust had assets under custody/administration of US$16.6 trillion, and assets under management of US$1.5 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 X (formerly 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 2024 vs.
	Q2 2024			Q1 2024			Q2 2023			Q1 2024		Q2 2023
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,166.1		$	1,142.9		$	1,096.3		2	%	6	%
Foreign Exchange Trading Income	58.4			57.0			50.1			2		17
Treasury Management Fees	9.0			9.3			7.9			(3)		12
Security Commissions and Trading Income	34.3			37.9			36.1			(10)		(5)
Other Operating Income	924.7			61.0			55.2			N/M		N/M
Investment Security Gains (Losses), net	0.1			(189.4)			—			(100)		N/M
Total Noninterest Income	2,192.6			1,118.7			1,245.6			96		76

Net Interest Income
Interest Income	2,506.5			2,445.6			1,735.0			2		44
Interest Expense	1,983.6			1,917.5			1,223.5			3		62
Net Interest Income	522.9			528.1			511.5			(1)		2

Total Revenue	2,715.5			1,646.8			1,757.1			65		55

Provision for Credit Losses	8.0			(8.5)			(15.5)			N/M		N/M

Noninterest Expense
Compensation	665.2			627.1			604.5			6		10
Employee Benefits	100.2			101.1			101.4			(1)		(1)
Outside Services	260.9			229.3			230.9			14		13
Equipment and Software	277.5			252.7			229.3			10		21
Occupancy	54.8			54.1			53.8			1		2
Other Operating Expense	175.3			100.4			112.0			74		57
Total Noninterest Expense	1,533.9			1,364.7			1,331.9			12		15

Income before Income Taxes	1,173.6			290.6			440.7			N/M		166
Provision for Income Taxes	277.5			75.9			108.9			N/M		155
NET INCOME	$	896.1		$	214.7		$	331.8		N/M		170	%
Preferred Stock Dividends	4.7			16.2			4.7			(71)		—
NET INCOME APPLICABLE TO COMMON STOCK	$	891.4		$	198.5		$	327.1		N/M		173	%
Earnings Allocated to Participating Securities	7.1			2.4			3.4			196		108
Earnings Allocated to Common and Potential Common Shares	$	884.3		$	196.1		$	323.7		N/M		173	%

Per Common Share
Net Income
Basic	$	4.35		$	0.96		$	1.56		N/M		179	%
Diluted	4.34			0.96			1.56			N/M		179

Average Common Equity	$	11,473.9		$	10,898.8		$	10,563.8		5	%	9	%
Return on Average Common Equity	31.2		%	7.3		%	12.4		%
Return on Average Assets	2.44		%	0.60		%	0.91		%

Cash Dividends Declared per Common Share	$	0.75		$	0.75		$	0.75		—	%	—	%

Average Common Shares Outstanding (000s)
Basic	203,306			204,629			207,639			(1)	%	(2)	%
Diluted	203,739			205,135			207,816			(1)		(2)
Common Shares Outstanding (EOP) (000s)	201,638			204,592			207,004			(1)		(3)

(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
	2024			2023			% Change(1)
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,309.0		$	2,159.9		7	%
Foreign Exchange Trading Income	115.4			103.1			12
Treasury Management Fees	18.3			16.3			12
Security Commissions and Trading Income	72.2			70.8			2
Other Operating Income	985.7			102.0			N/M
Investment Security Gains (Losses), net	(189.3)			6.9			N/M
Total Noninterest Income	3,311.3			2,459.0			35

Net Interest Income
Interest Income	4,952.1			3,190.4			55
Interest Expense	3,901.1			2,147.7			82
Net Interest Income	1,051.0			1,042.7			1

Total Revenue	4,362.3			3,501.7			25

Provision for Credit Losses	(0.5)			(0.5)			N/M

Noninterest Expense
Compensation	1,292.3			1,199.7			8
Employee Benefits	201.3			202.4			(1)
Outside Services	490.2			441.7			11
Equipment and Software	530.2			461.0			15
Occupancy	108.9			115.1			(5)
Other Operating Expense	275.7			197.6			40
Total Noninterest Expense	2,898.6			2,617.5			11

Income before Income Taxes	1,464.2			884.7			66
Provision for Income Taxes	353.4			218.3			62
NET INCOME	$	1,110.8		$	666.4		67	%
Preferred Stock Dividends	20.9			20.9			—
NET INCOME APPLICABLE TO COMMON STOCK	$	1,089.9		$	645.5		69	%
Earnings Allocated to Participating Securities	9.5			6.6			43
Earnings Allocated to Common and Potential Common Shares	$	1,080.4		$	638.9		69	%

Per Common Share
Net Income
Basic	$	5.30		$	3.07		72	%
Diluted	5.28			3.07			72

Average Common Equity	$	11,186.4		$	10,480.6		7	%
Return on Average Common Equity	19.6		%	12.4		%
Return on Average Assets	1.52		%	0.91		%

Cash Dividends Declared per Common Share	$	1.50		$	1.50		—	%

Average Common Shares Outstanding (000s)
Basic	203,968			207,911			(2)	%
Diluted	204,437			208,271			(2)
Common Shares Outstanding (EOP) (000s)	201,638			207,004			(3)

(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, 2024 vs.
	June 30, 2024		March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
Assets
Federal Reserve and Other Central Bank Deposits	$	43,206.1	$	40,269.5	$	42,675.1	7	%	1	%
Interest-Bearing Due from and Deposits with Banks(2)	5,558.9		4,646.1		4,625.8		20		20
Federal Funds Sold	—		—		—		—		—
Securities Purchased under Agreements to Resell	859.6		500.1		1,228.9		72		(30)
Debt Securities
Available for Sale	26,861.7		25,638.9		24,264.4		5		11
Held to Maturity	22,798.6		23,497.9		26,006.3		(3)		(12)
Trading Account	—		—		0.1		N/M		(93)
Total Debt Securities	49,660.3		49,136.8		50,270.8		1		(1)
Loans	42,135.2		47,342.6		43,546.7		(11)		(3)
Other Interest-Earning Assets(3)	3,025.2		2,600.8		2,694.8		16		12
Total Earning Assets	144,445.3		144,495.9		145,042.1		—		—
Allowance for Credit Losses	(179.5)		(175.8)		(170.2)		2		5
Cash and Due from Banks and Other Central Bank Deposits(4)	2,390.1		2,035.1		1,803.7		17		33
Buildings and Equipment	481.0		488.0		473.6		(1)		2
Client Security Settlement Receivables	193.4		116.4		431.3		66		(55)
Goodwill	697.4		697.5		698.8		—		—
Other Assets	8,769.4		8,453.9		8,473.2		4		3
Total Assets	$	156,797.1	$	156,111.0	$	156,752.5	—	%	—	%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other	$	28,074.0	$	25,893.5	$	23,535.5	8	%	19	%
Savings Certificates and Other Time	6,378.4		5,636.6		3,327.0		13		92
Non-U.S. Offices - Interest-Bearing	67,612.3		67,084.7		65,014.7		1		4
Total Interest-Bearing Deposits	102,064.7		98,614.8		91,877.2		3		11
Federal Funds Purchased	2,406.4		2,600.5		9,344.5		(7)		(74)
Securities Sold under Agreements to Repurchase	629.2		511.4		988.1		23		(36)
Other Borrowings(5)	6,823.7		6,526.2		12,382.0		5		(45)
Senior Notes	2,744.0		2,743.5		2,729.5		—		1
Long-Term Debt	4,073.0		4,069.0		2,061.5		—		98
Total Interest-Bearing Liabilities	118,741.0		115,065.4		119,382.8		3		(1)
Demand and Other Noninterest-Bearing Deposits	20,926.2		25,326.9		21,326.4		(17)		(2)
Other Liabilities	4,474.1		3,616.9		4,407.6		24		2
Total Liabilities	144,141.3		144,009.2		145,116.8		—		(1)
Common Equity	11,770.9		11,216.9		10,750.8		5		9
Preferred Equity	884.9		884.9		884.9		—		—
Total Equity	12,655.8		12,101.8		11,635.7		5		9
Total Liabilities and Stockholders’ Equity	$	156,797.1	$	156,111.0	$	156,752.5	—	%	—	%

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

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

(3) Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.

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

(5) Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


AVERAGE BALANCE SHEET
($ In Millions)							% Change(1)
							Q2 2024 vs.
	Q2 2024		Q1 2024		Q2 2023		Q1 2024		Q2 2023
Assets
Federal Reserve and Other Central Bank Deposits	$	35,924.1	$	35,897.3	$	34,380.4	—	%	4	%
Interest-Bearing Due from and Deposits with Banks(2)	4,999.7		4,418.0		4,573.4		13		9
Federal Funds Sold	0.3		0.5		2.9		(34)		(88)
Securities Purchased under Agreements to Resell	731.9		517.9		1,238.6		41		(41)
Debt Securities
Available for Sale	26,591.4		24,049.6		24,511.8		11		8
Held to Maturity	23,373.8		24,498.9		25,053.3		(5)		(7)
Trading Account	—		—		0.2		—		(99)
Total Debt Securities	49,965.2		48,548.5		49,565.3		3		1
Loans	41,034.6		41,586.9		42,365.4		(1)		(3)
Other Interest-Earning Assets(3)	2,745.3		2,847.7		1,990.4		(4)		38
Total Earning Assets	135,401.1		133,816.8		134,116.4		1		1
Allowance for Credit Losses	(175.8)		(191.8)		(176.6)		(8)		—
Cash and Due from Banks and Other Central Bank Deposits(4)	1,802.0		1,799.5		1,842.5		—		(2)
Buildings and Equipment	485.8		498.2		481.8		(2)		1
Client Security Settlement Receivables	321.4		238.6		592.7		35		(46)
Goodwill	697.1		699.4		697.0		—		—
Other Assets	9,469.6		8,257.6		8,345.8		15		13
Total Assets	$	148,001.2	$	145,118.3	$	145,899.6	2	%	1	%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other	$	27,554.9	$	27,349.0	$	22,961.2	1	%	20	%
Savings Certificates and Other Time	6,027.4		4,554.3		3,036.1		32		99
Non-U.S. Offices - Interest-Bearing	63,216.3		63,752.8		62,046.3		(1)		2
Total Interest-Bearing Deposits	96,798.6		95,656.1		88,043.6		1		10
Federal Funds Purchased	3,010.7		2,650.1		7,070.0		14		(57)
Securities Sold under Agreements to Repurchase	574.6		490.1		467.8		17		23
Other Borrowings(5)	7,053.5		6,852.1		12,132.6		3		(42)
Senior Notes	2,728.7		2,748.7		2,761.1		(1)		(1)
Long-Term Debt	4,071.1		4,067.0		2,069.7		—		97
Total Interest-Bearing Liabilities	114,237.2		112,464.1		112,544.8		2		2
Demand and Other Noninterest-Bearing Deposits	16,543.0		16,706.5		17,555.1		(1)		(6)
Other Liabilities	4,862.2		4,164.0		4,351.0		17		12
Total Liabilities	135,642.4		133,334.6		134,450.9		2		1
Common Equity	11,473.9		10,898.8		10,563.8		5		9
Preferred Equity	884.9		884.9		884.9		—		—
Total Equity	12,358.8		11,783.7		11,448.7		5		8
Total Liabilities and Stockholders’ Equity	$	148,001.2	$	145,118.3	$	145,899.6	2	%	1	%

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

(5) Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.


NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)


QUARTERLY TREND DATA	QUARTERS
($ In Millions Except Per Share Data)	2024						2023
	SECOND			FIRST			FOURTH			THIRD			SECOND
Net Income Summary
Trust, Investment and Other Servicing Fees	$	1,166.1		$	1,142.9		$	1,090.0		$	1,111.9		$	1,096.3
Other Noninterest Income	1,026.5			(24.2)			(27.8)			158.4			149.3
Net Interest Income	522.9			528.1			483.1			456.2			511.5
Total Revenue	2,715.5			1,646.8			1,545.3			1,726.5			1,757.1
Provision for Credit Losses	8.0			(8.5)			11.0			14.0			(15.5)
Noninterest Expense	1,533.9			1,364.7			1,388.5			1,278.2			1,331.9
Income before Income Taxes	1,173.6			290.6			145.8			434.3			440.7
Provision for Income Taxes	277.5			75.9			32.7			106.5			108.9
Net Income	$	896.1		$	214.7		$	113.1		$	327.8		$	331.8

Per Common Share
Net Income - Basic	$	4.35		$	0.96		$	0.52		$	1.49		$	1.56
- Diluted	4.34			0.96			0.52			1.49			1.56
Cash Dividends Declared per Common Share	0.75			0.75			0.75			0.75			0.75
Book Value (EOP)	58.38			54.83			53.69			52.95			51.94
Market Value (EOP)	83.98			88.92			84.38			69.48			74.14

Financial Ratios
Return on Average Common Equity	31.2		%	7.3		%	4.0		%	11.6		%	12.4		%
Return on Average Assets	2.44			0.60			0.33			0.93			0.91
Net Interest Margin (GAAP)	1.55			1.59			1.53			1.41			1.53
Net Interest Margin (FTE*)	1.57			1.61			1.59			1.45			1.57

Assets Under Custody / Administration ($ in Billions) - End Of Period
Asset Servicing	$	15,470.8		$	15,385.4		$	14,362.6		$	13,206.2		$	13,483.5
Wealth Management	1,096.6			1,087.1			1,042.3			958.5			995.4
Total Assets Under Custody / Administration	$	16,567.4		$	16,472.5		$	15,404.9		$	14,164.7		$	14,478.9

Assets Under Custody ($ In Billions) - End Of Period
Asset Servicing	$	11,955.5		$	11,723.1		$	10,882.0		$	10,064.4		$	10,295.7
Wealth Management	1,085.9			1,081.0			1,034.5			951.0			989.1
Total Assets Under Custody	$	13,041.4		$	12,804.1		$	11,916.5		$	11,015.4		$	11,284.8

Assets Under Management ($ In Billions) - End Of Period
Asset Servicing	$	1,107.7		$	1,080.1		$	1,032.0		$	963.4		$	989.8
Wealth Management	419.4			420.6			402.5			369.9			376.0
Total Assets Under Management	$	1,527.1		$	1,500.7		$	1,434.5		$	1,333.3		$	1,365.8

Asset Quality ($ In Millions) - End Of Period
Nonaccrual Loans	$	38.5		$	37.0		$	63.6		$	68.8		$	47.1
Other Real Estate Owned (OREO)	—			—			1.5			0.3			0.3
Total Nonaccrual Assets	$	38.5		$	37.0		$	65.1		$	69.1		$	47.4
Nonaccrual Assets / Loans and OREO	0.09		%	0.08		%	0.14		%	0.16		%	0.11		%
Gross Charge-offs	$	(0.3)		$	(11.1)		$	(3.1)		$	(0.8)		$	(0.8)
Gross Recoveries	0.4			0.7			0.7			1.1			0.8
Net Recoveries (Charge-offs)	$	0.1		$	(10.4)		$	(2.4)		$	0.3		$	—
Annualized Net Recoveries (Charge-offs) to Avg Loans	—		%	(0.10)		%	(0.02)		%	—		%	—		%
Allowance for Credit Losses Assigned to:
Loans	$	167.7		$	162.4		$	178.7		$	166.8		$	152.5
Undrawn Loan Commitments and Standby Letters of Credit	29.5			25.2			26.9			28.3			26.0
Debt Securities and Other Financial Assets	12.4			13.9			14.8			16.7			19.0
Loans Allowance / Nonaccrual Loans	4.4		x	4.4		x	2.8		x	2.4		x	3.2		x

(*) Net interest margin presented on an FTE basis is a non-GAAP financial measure. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

EX-99.2 3 q22024presentationmateri.htm EX-99.2 q22024presentationmateri

northerntrust.com / © 2024 Northern Trust 2 130+ years of strength, stability & stewardship Disciplined, client-centric strategy Product leadership & innovation Highest standards of client service Solutions-focused technology & integrated operating platform

¹ Revenue and profit margin (pre-tax) stated on a fully taxable equivalent (FTE) basis are non-GAAP financial measures. A reconciliation to reported revenue and reported profit margin (pre-tax) prepared in accordance with U.S. generally accepted accounting principles (GAAP) is included in the Appendix on page 11. ² Actual numbers for all periods, not % change. ³ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. N/M - Not meaningful *Refer to page 8 for additional detail on notable items recognized in Noninterest expense. Financial Highlights & Key Metrics 4northerntrust.com / © 2024 Northern Trust Notable Items*: 2Q24 Pre-tax • $864.3 million in Other Operating Income, comprised of an $878.4 million net gain resulting from the Visa transaction, $6.5 million securities loss related to repositioning of the Supplemental Pension Plan and $7.6 million investment impairment charges • $182.2 million in Noninterest Expense due to severance-related charges, a charitable commitment, software amortization acceleration & dispositions, and a legal settlement 1Q24 Pre-tax • $189.4 million investment securities loss in Other Operating Income • $12.5 million in Noninterest Expense related to the FDIC special assessment 2Q23 Pre-tax • $64.3 million in Noninterest Expense due to severance-related charges and a write-off of an investment in a client capability RESULTS INCLUDE IMPACT OF NOTABLE ITEMS* $ in millions (except EPS and as noted) % CHANGE VS. 2Q 2024 1Q 2024 2Q 2023 Revenue (FTE¹) $ 2,722.4 65 % 54 % Noninterest Expense $ 1,533.9 12 % 15 % Provision for Credit Losses 8.0 N/M N/M Net Income $ 896.1 N/M 170 % Diluted Earnings per Share $ 4.34 N/M 179 % Return on Average Common Equity² 31.2 % 7.3 % 12.4 % Profit Margin (Pre-tax)¹ ,² 43.4 % 18.0 % 25.6 % Expense to Trust Fee Ratio² 132 % 119 % 122 % Assets under Custody / Administration³ (AUC/A) (in billions) $ 16,567.4 1 % 14 % Assets under Custody³ (AUC) (in billions) $ 13,041.4 2 % 16 % Assets under Management³ (AUM) (in billions) $ 1,527.1 2 % 12 %

northerntrust.com / © 2024 Northern Trust $621.2 $626.0 $611.7 $639.6 $650.6 $427.4 $428.1 $420.4 $436.7 $445.9 $134.1 $137.1 $130.7 $140.0 $145.7 $21.5 $20.4 $22.0 $17.9 $16.5$38.2 $40.4 $38.6 $45.0 $42.5 Other Securities Lending Investment Management Custody and Fund Administration 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 +2% Asset Servicing Highlights 5 Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. % CHANGE VS. Asset Servicing Client Assets¹ (in billions): 2Q 2024 1Q 2024 2Q 2023 Assets under Custody / Administration (AUC/A) $ 15,470.8 1 % 15 % Assets under Custody (AUC) $ 11,955.5 2 % 16 % Assets under Management (AUM) $ 1,107.7 3 % 12 % Securities Lending Collateral $ 160.7 (2) % (5) % Asset Servicing Revenues ($ in millions) +5%

northerntrust.com / © 2024 Northern Trust Wealth Management Highlights 6 Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. % CHANGE VS. Wealth Management Client Assets¹ (in billions): 2Q 2024 1Q 2024 2Q 2023 Assets under Custody / Administration (AUC/A) $ 1,096.6 1 % 10 % Assets under Custody (AUC) $ 1,085.9 — % 10 % Assets under Management (AUM) $ 419.4 — % 12 % Wealth Management Revenues ($ in millions) $475.1 $485.9 $478.3 $503.3 $515.5 $166.0 $172.3 $171.9 $178.3 $180.7 $124.1 $126.1 $121.5 $129.9 $132.7 $93.7 $95.8 $97.3 $99.9 $103.3 $91.3 $91.7 $87.6 $95.2 $98.8 Global Family Office (GFO) West East Central 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 +8% +2%

northerntrust.com / © 2024 Northern Trust $524.6 $469.4 $501.1 $535.4 $529.8 Net Interest Income (FTE¹) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $134.1 $128.3 $125.0 $133.8 $135.4 $34.4 $28.0 $26.0 $35.9 $35.9 $49.6 $50.4 $49.2 $48.5 $50.0 $42.4 $42.2 $42.2 $41.6 $41.0 $7.8 $7.7 $7.7 $7.8 $8.5 Other Earning Assets² Loans Debt Securities Federal Reserve and Other Central Bank Deposits 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net Interest Income and Balance Sheet Trends 7 Categories may not sum due to rounding. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 11. ² Other Earning Assets includes Interest-Bearing Due from and Deposits with Banks, Federal Funds Sold, Securities Purchased under Agreements to Resell, and Other Interest-Earning Assets. Average Earning Assets ($ in billions) Net Interest Income (FTE¹) ($ in millions) +1% 1.57% 1.45% 1.59% 1.61% 1.57% Net Interest Margin (FTE¹) +1% +1% (1)%

$1,331.9 $1,278.2 $1,388.5 $1,364.7 $1,533.9 $705.9 $658.9 $666.0 $728.2 $765.4 $230.9 $229.6 $235.2 $229.3 $260.9 $229.3 $232.5 $252.0 $252.7 $277.5$53.8 $58.7 $58.5 $54.1 $54.8 $112.0 $98.5 $176.8 $100.4 $175.3 Other Operating Expense Occupancy Equipment and Software Outside Services Compensation and Employee Benefits 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Noninterest Expense 8northerntrust.com / © 2024 Northern Trust Expense Highlights • Expenses included the following: • Severance-related charge of $85.2 million in 2Q24 ($81.8 million in Compensation expense and $3.4 million in Outside Services expense) and $38.7 million in 2Q23 ($36.7 million in Compensation expense and $2.0 million in Outside Services expense) • Equipment and Software accelerations and dispositions charge of $16.4 million in 2Q24 and credit of $4.1 million in 3Q23 • Northern Trust Foundation charitable contribution in Other Operating Expense of $70.0 million in 2Q24 • Legal settlement charge in Other Operating Expense of $10.6 million in 2Q24 • FDIC special assessment in Other Operating Expense of $12.5 million in 1Q24 and $84.6 million in 4Q23 • Occupancy charge of $3.0 million in 3Q23 • Write-off of an investment in a client capability in Other Operating Expense of $25.6 million in 2Q23 Categories may not sum due to rounding. Total Noninterest Expense ($ in millions) +15% +12%

7.4% 7.9% 8.1% 7.8% 8.0% 2Q23 3Q23 4Q23 1Q24 2Q24 11.3% 11.4% 11.4% 11.4% 12.6% 2Q23 3Q23 4Q23 1Q24 2Q24 Capital Update 9 Standardized Tier 1 Leverage northerntrust.com / © 2024 Northern Trust Capital Highlights • Robust capital and liquidity • $11.8 billion in Tier 1 capital • 61% of deposits covered by highly liquid assets including 32% by cash and central bank deposits • Declared $154.3 million in common stock dividends and $4.7 million in preferred stock dividends in 2Q24 • Repurchased $250.8 million of common stock in 2Q24 • Unrealized MTM loss on available- for-sale securities of $667.1 million as of June 30, 2024 • Realized $606 million in proceeds from partial sale of Visa shares Northern Trust Corporation Capital Ratios 2Q 2024 CAPITAL RATIOS STANDARDIZED APPROACH ADVANCED APPROACH Common Equity Tier 1 Capital 12.6% 13.9% Tier 1 Capital 13.6% 15.0% Total Capital 15.5% 16.9% Tier 1 Leverage 8.0% 8.0% Supplementary Leverage N/A 9.0% Standardized Common Equity Tier 1 Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

northerntrust.com / © 2024 Northern Trust Reconciliation of Non-GAAP Financial Measures 11 The following table presents a reconciliation of interest income, net interest income, net interest margin, total revenue, pre-tax income, and profit margin (pre-tax) prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) basis, which are non-GAAP financial measures. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. The adjustment to an FTE basis has no impact on net income. QUARTERS 2024 2023 ($ in Millions) SECOND FIRST FOURTH THIRD SECOND Net Interest Income Interest Income - GAAP $ 2,506.5 $ 2,445.6 $ 2,199.6 $ 1,935.0 $ 1,735.0 Add: FTE Adjustment 6.9 7.3 18.0 13.2 13.1 Interest Income (FTE) - Non-GAAP $ 2,513.4 $ 2,452.9 $ 2,217.6 $ 1,948.2 $ 1,748.1 Net Interest Income - GAAP $ 522.9 $ 528.1 $ 483.1 $ 456.2 $ 511.5 Add: FTE Adjustment 6.9 7.3 18.0 13.2 13.1 Net Interest Income (FTE) - Non-GAAP $ 529.8 $ 535.4 $ 501.1 $ 469.4 $ 524.6 Net Interest Margin - GAAP 1.55 % 1.59 % 1.53 % 1.41 % 1.53 % Net Interest Margin (FTE) - Non-GAAP 1.57 % 1.61 % 1.59 % 1.45 % 1.57 % Total Revenue Total Revenue - GAAP $ 2,715.5 $ 1,646.8 $ 1,545.3 $ 1,726.5 $ 1,757.1 Add: FTE Adjustment 6.9 7.3 18.0 13.2 13.1 Total Revenue (FTE) - Non-GAAP $ 2,722.4 $ 1,654.1 $ 1,563.3 $ 1,739.7 $ 1,770.2 Pre-Tax Income Pre-Tax Income - GAAP $ 1,173.6 $ 290.6 $ 145.8 $ 434.3 $ 440.7 Add: FTE Adjustment 6.9 7.3 18.0 13.2 13.1 Pre-Tax Income (FTE) - Non-GAAP $ 1,180.5 $ 297.9 $ 163.8 $ 447.5 $ 453.8 Profit Margin (Pre-Tax) Profit Margin (Pre-Tax) - GAAP 43.2 % 17.6 % 9.4 % 25.2 % 25.1 % Profit Margin (Pre-Tax) (FTE) - Non-GAAP 43.4 % 18.0 % 10.5 % 25.7 % 25.6 %

northerntrust.com / © 2024 Northern Trust Forward-looking Statements 12 This presentation may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including the factors discussed in Northern Trust’s most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available on Northern Trust’s website. We caution you not to place undue reliance on any forward-looking statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to update its forward-looking statements. This presentation should be reviewed together with Northern Trust Corporation’s Second Quarter 2024 earnings press release.

EX-99.3 4 q22024trendreport-wordrepo.htm EX-99.3 Document

Exhibit 99.3

Financial Trends

Second Quarter 2024

July 17, 2024

Please direct inquiries to:


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

Grace Higgins
Second Vice President, Investor Relations
(847) 946-9113 or grace.higgins@ntrs.com

The historical financial results and trends reflected in this report are not indicative of future financial results and trends for Northern Trust Corporation. This report should be read in conjunction with the Corporation's Second Quarter 2024 earnings press release, 2023 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)
																				2023												2024
		2019			2020			2021			2022			2023						1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
																	Profitability:
		$	1,492.2		$	1,209.3		$	1,545.3		$	1,336.0		$	1,107.3		Net Income			$	334.6		$	331.8		$	327.8		$	113.1		$	214.7		$	896.1
		1,428.9			1,141.0			1,490.6			1,282.4			1,053.9			Earnings Allocated to Common and Potential			315.2			323.7			308.5			106.5			196.1			884.3
																		Common Shares

		$	6.66		$	5.48		$	7.16		$	6.16		$	5.09		Basic Earnings Per Share			$	1.51		$	1.56		$	1.49		$	0.52		$	0.96		$	4.35
		6.63			5.46			7.14			6.14			5.08			Diluted Earnings Per Share			1.51			1.56			1.49			0.52			0.96			4.34
		—		%	(18		%)	31		%	(14		%)	(17		%)	Diluted EPS Growth over Previous Year			(15		%)	(16		%)	(17		%)	(27		%)	(37		%)	179%

		14.9		%	11.2		%	13.9		%	12.7		%	10.0		%	Return on Average Common Equity			12.4		%	12.4		%	11.6		%	4.0		%	7.3		%	31.2		%

		1.27		%	0.88		%	0.99		%	0.88		%	0.78		%	Return on Average Assets			0.92		%	0.91		%	0.93		%	0.33		%	0.60		%	2.44		%

		32.4		%	27.1		%	31.5		%	26.6		%	22.3		%	Profit Margin (pre-tax) (FTE)(1)			26.0		%	25.6		%	25.7		%	10.5		%	18.0		%	43.4		%
		24.4		%	19.7		%	23.8		%	19.6		%	16.2		%	Profit Margin (after-tax) (FTE)(1)			19.0		%	18.7		%	18.8		%	7.2		%	13.0		%	32.9		%

		72.0		%	75.9		%	78.2		%	71.6		%	70.1		%	Noninterest Income to Total Revenue (FTE)(1)			69.0		%	70.4		%	73.0		%	67.9		%	67.6		%	80.5		%

		63.1		%	65.1		%	67.1		%	65.1		%	63.9		%	Trust Fees to Total Revenue (FTE)(1)			60.5		%	61.9		%	63.9		%	69.7		%	69.1		%	42.8		%

		23.2		%	25.7		%	23.1		%	24.4		%	24.4		%	Effective Tax Rate (US GAAP)			24.6		%	24.7		%	24.5		%	22.4		%	26.1		%	23.6		%
		24.5		%	27.2		%	24.5		%	26.3		%	27.3		%	Effective Tax Rate (FTE)(1)			26.8		%	26.9		%	26.8		%	30.9		%	27.9		%	24.1		%

																	Capital Ratios:(2)
																		Standardized Approach
		12.7		%	12.8		%	11.9		%	10.8		%	11.4		%			Common Equity Tier 1 Capital	11.3		%	11.3		%	11.4		%	11.4		%	11.4		%	12.6		%
		14.5		%	13.9		%	12.9		%	11.8		%	12.3		%			Tier 1 Capital	12.3		%	12.3		%	12.4		%	12.3		%	12.4		%	13.6		%
		16.3		%	15.6		%	14.1		%	13.9		%	14.2		%			Total Capital	14.4		%	14.4		%	14.5		%	14.2		%	14.2		%	15.5		%
		8.7		%	7.6		%	6.9		%	7.1		%	8.1		%			Tier 1 Leverage	7.3		%	7.4		%	7.9		%	8.1		%	7.8		%	8.0		%

																		Advanced Approach
		13.2		%	13.4		%	13.2		%	11.5		%	13.4		%			Common Equity Tier 1 Capital	11.7		%	13.0		%	13.2		%	13.4		%	13.5		%	13.9		%
		15.0		%	14.5		%	14.3		%	12.5		%	14.5		%			Tier 1 Capital	12.7		%	14.1		%	14.3		%	14.5		%	14.6		%	15.0		%
		16.8		%	15.9		%	15.3		%	14.5		%	16.5		%			Total Capital	14.7		%	16.3		%	16.5		%	16.5		%	16.5		%	16.9		%
		8.7		%	7.6		%	6.9		%	7.1		%	8.1		%			Tier 1 Leverage	7.3		%	7.4		%	7.9		%	8.1		%	7.8		%	8.0		%
		7.6		%	8.6		%	8.2		%	7.9		%	8.6		%			Supplementary Leverage (3)	8.3		%	8.3		%	8.4		%	8.6		%	8.8		%	9.0		%

																	Per Share Information / Ratios:
		$	2.60		$	2.80		$	2.80		$	2.90		$	3.00		Cash Dividends Declared Per Common Share			$	0.75		$	0.75		$	0.75		$	0.75		$	0.75		$	0.75
		39		%	51		%	39		%	47		%	59		%	Dividend Payout Ratio			50		%	48		%	50		%	144		%	78		%	17		%

		$	106.24		$	93.14		$	119.61		$	88.49		$	84.38		Market Value Per Share (End of Period)			$	88.13		$	74.14		$	69.48		$	84.38		$	88.92		$	83.98
		16.0			17.1			16.8			14.4			16.6			Stock Price Multiple of Earnings			15.0			13.3			13.2			16.6			19.6			11.5
																	(based on trailing 4 quarters of diluted EPS)

		$	46.82		$	51.87		$	53.58		$	49.78		$	53.69		Book Value Per Common Share (End of Period)			$	51.37		$	51.94		$	52.95		$	53.69		$	54.83		$	58.38

	(1)	Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
	(2)	Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
	(3)	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 (2)					SECOND QUARTER				CHANGE (2)
	2024		2023		$		%			2024		2023		$		%
	$	1,290.2	$	1,224.2	$	66.0	5	%	Asset Servicing Trust, Investment and Other Servicing Fees	$	650.6	$	621.2	$	29.4	5	%
	1,018.8		935.7		83.1		9	%	WM Trust, Investment and Other Servicing Fees	515.5		475.1		40.4		8	%
	2,309.0		2,159.9		149.1		7	%	Total Fees	1,166.1		1,096.3		69.8		6	%
	115.4		103.1		12.3		12	%	Foreign Exchange Trading Income	58.4		50.1		8.3		17	%
	18.3		16.3		2.0		12	%	Treasury Management Fees	9.0		7.9		1.1		12	%
	72.2		70.8		1.4		2	%	Security Commissions and Trading Income	34.3		36.1		(1.8)		(5)	%
	985.7		102.0		883.7		N/M		Other Operating Income	924.7		55.2		869.5		N/M
	(189.3)		6.9		(196.2)		N/M		Investment Security Gains (Losses), net	0.1		—		0.1		N/M
	3,311.3		2,459.0		852.3		35	%	Total Noninterest Income	2,192.6		1,245.6		947.0		76	%

	4,966.3		3,216.7		1,749.6		54	%	Interest Income (FTE)(1)	2,513.4		1,748.1		765.3		44	%
	3,901.1		2,147.7		1,753.4		82	%	Interest Expense	1,983.6		1,223.5		760.1		62	%
	1,065.2		1,069.0		(3.8)		—	%	Net Interest Income (FTE)(1)	529.8		524.6		5.2		1	%

	4,376.5		3,528.0		848.5		24	%	Total Revenue (FTE)(1)	2,722.4		1,770.2		952.2		54	%

	(0.5)		(0.5)		—		N/M		Provision for Credit Losses	8.0		(15.5)		23.5		N/M

	1,292.3		1,199.7		92.6		8	%	Compensation	665.2		604.5		60.7		10	%
	201.3		202.4		(1.1)		(1)	%	Employee Benefits	100.2		101.4		(1.2)		(1)	%
	490.2		441.7		48.5		11	%	Outside Services	260.9		230.9		30.0		13	%
	530.2		461.0		69.2		15	%	Equipment and Software	277.5		229.3		48.2		21	%
	108.9		115.1		(6.2)		(5)	%	Occupancy	54.8		53.8		1.0		2	%
	275.7		197.6		78.1		40	%	Other Operating Expense	175.3		112.0		63.3		57	%
	2,898.6		2,617.5		281.1		11	%	Total Noninterest Expense	1,533.9		1,331.9		202.0		15	%
	1,478.4		911.0		567.4		62	%	Income before Income Taxes (FTE)(1)	1,180.5		453.8		726.7		160	%
	353.4		218.3		135.1		62	%	Provision for Income Taxes	277.5		108.9		168.6		155	%
	14.2		26.3		(12.1)		(46)	%	Taxable Equivalent Adjustment	6.9		13.1		(6.2)		(47)	%
	367.6		244.6		123.0		50	%	Total Taxes (FTE)(1)	284.4		122.0		162.4		133	%
	$	1,110.8	$	666.4	$	444.4	67	%	Net Income	$	896.1	$	331.8	$	564.3	170	%

	$	20.9	$	20.9	$	—	—	%	Dividends on Preferred Stock	$	4.7	$	4.7	$	—	—	%
	9.5		6.6		2.9		43	%	Earnings Allocated to Participating Securities	7.1		3.4		3.7		108	%
	1,080.4		638.9		441.5		69	%	Earnings Allocated to Common and Potential Common Shares	884.3		323.7		560.6		173	%

	$	5.30	$	3.07	$	2.23	72	%	Earnings Per Share - Basic	$	4.35	$	1.56	$	2.79	179	%
	$	5.28	$	3.07	$	2.21	72	%	Earnings Per Share - Diluted	$	4.34	$	1.56	$	2.78	179	%

	203,968		207,911		(3,943)		(2)	%	Average Basic Shares (000s)	203,306		207,639		(4,333)		(2)	%
	204,437		208,271		(3,834)		(2)	%	Average Diluted Shares (000s)	203,739		207,816		(4,077)		(2)	%
	201,638		207,004		(5,366)		(3)	%	End of Period Shares Outstanding (000s)	201,638		207,004		(5,366)		(3)	%

	N/M - Not meaningful
	(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
	(2) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.


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

													2023								2024
	2019		2020		2021		2022		2023				1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	2,211.5	$	2,321.6	$	2,487.3	$	2,496.3	$	2,461.9	Asset Servicing Trust, Investment and Other Servicing Fees		$	603.0	$	621.2	$	626.0	$	611.7	$	639.6	$	650.6
	1,640.6		1,673.4		1,873.8		1,936.3		1,899.9		WM Trust, Investment and Other Servicing Fees		460.6		475.1		485.9		478.3		503.3		515.5
	3,852.1		3,995.0		4,361.1		4,432.6		4,361.8			Total Fees	1,063.6		1,096.3		1,111.9		1,090.0		1,142.9		1,166.1
	250.9		290.4		292.6		288.6		203.9		Foreign Exchange Trading Income		53.0		50.1		51.8		49.0		57.0		58.4
	44.5		45.4		44.3		39.3		31.6		Treasury Management Fees		8.4		7.9		7.5		7.8		9.3		9.0
	103.6		133.2		140.2		136.2		135.0		Security Commissions and Trading Income		34.7		36.1		30.9		33.3		37.9		34.3
	145.5		194.0		243.9		191.3		228.7		Other Operating Income		46.8		55.2		68.2		58.5		61.0		924.7
	(1.4)		(0.4)		(0.3)		(214.0)		(169.5)		Investment Security Gains (Losses), net		6.9		—		—		(176.4)		(189.4)		0.1
	4,395.2		4,657.6		5,081.8		4,874.0		4,791.5			Total Noninterest Income	1,213.4		1,245.6		1,270.3		1,062.2		1,118.7		2,192.6
	1,710.7		1,477.6		1,418.3		1,932.8		2,039.5		Net Interest Income (FTE)(1)		544.4		524.6		469.4		501.1		535.4		529.8
	6,105.9		6,135.2		6,500.1		6,806.8		6,831.0			Total Revenue (FTE)(1)	1,757.8		1,770.2		1,739.7		1,563.3		1,654.1		2,722.4

	(14.5)		125.0		(81.5)		12.0		24.5		Provision for (Release of) Credit Losses		15.0		(15.5)		14.0		11.0		(8.5)		8.0

	1,859.0		1,947.1		2,011.0		2,248.0		2,321.8		Compensation		595.2		604.5		558.1		564.0		627.1		665.2
	355.2		387.7		431.4		437.4		405.2		Employee Benefits		101.0		101.4		100.8		102.0		101.1		100.2
	774.5		763.1		849.4		880.3		906.5		Outside Services		210.8		230.9		229.6		235.2		229.3		260.9
	612.1		673.5		736.3		838.8		945.5		Equipment and Software		231.7		229.3		232.5		252.0		252.7		277.5
	212.9		230.1		208.7		219.1		232.3		Occupancy		61.3		53.8		58.7		58.5		54.1		54.8
	329.8		346.7		299.1		359.3		472.9		Other Operating Expense		85.6		112.0		98.5		176.8		100.4		175.3
	4,143.5		4,348.2		4,535.9		4,982.9		5,284.2			Total Noninterest Expense	1,285.6		1,331.9		1,278.2		1,388.5		1,364.7		1,533.9
	1,976.9		1,662.0		2,045.7		1,811.9		1,522.3			Income before Income Taxes (FTE)(1)	457.2		453.8		447.5		163.8		297.9		1,180.5
	451.9		418.3		464.8		430.3		357.5		Provision for Income Taxes		109.4		108.9		106.5		32.7		75.9		277.5
	32.8		34.4		35.6		45.6		57.5		Taxable Equivalent Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	484.7		452.7		500.4		475.9		415.0			Total Taxes (FTE)(1)	122.6		122.0		119.7		50.7		83.2		284.4
	$	1,492.2	$	1,209.3	$	1,545.3	$	1,336.0	$	1,107.3		Net Income	$	334.6	$	331.8	$	327.8	$	113.1	$	214.7	$	896.1
	$	6.66	$	5.48	$	7.16	$	6.16	$	5.09	Earnings Per Share - Basic		$	1.51	$	1.56	$	1.49	$	0.52	$	0.96	$	4.35
	6.63		5.46		7.14		6.14		5.08		Earnings Per Share - Diluted		1.51		1.56		1.49		0.52		0.96		4.34
	215,601		209,008		208,899		208,867		207,564		Average Diluted Shares (000s)		208,730		207,816		207,253		206,484		205,135		203,739
	$	46.4	$	56.2	$	41.8	$	41.8	$	41.8	Preferred Dividends(2)		$	16.2	$	4.7	$	16.2	$	4.7	$	16.2	$	4.7

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


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

													2023								2024
	2019		2020		2021		2022		2023		Asset Servicing		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	1,549.3	$	1,586.1	$	1,818.8	$	1,700.1	$	1,689.5	Custody & Fund Administration		$	413.6	$	427.4	$	428.1	$	420.4	$	436.7	$	445.9
	445.7		511.1		443.5		555.1		528.1		Investment Management		126.2		134.1		137.1		130.7		140.0		145.7
	87.2		88.0		76.7		81.4		83.0		Securities Lending		19.1		21.5		20.4		22.0		17.9		16.5
	129.3		136.4		148.3		159.7		161.3		Other		44.1		38.2		40.4		38.6		45.0		42.5
	$	2,211.5	$	2,321.6	$	2,487.3	$	2,496.3	$	2,461.9		Total Asset Servicing Trust, Investment and Other Servicing Fees	$	603.0	$	621.2	$	626.0	$	611.7	$	639.6	$	650.6

											Wealth Management

	$	619.3	$	607.3	$	698.7	$	692.6	$	673.8	Central		$	163.6	$	166.0	$	172.3	$	171.9	$	178.3	$	180.7
	422.2		442.1		509.3		504.0		491.5		East		119.8		124.1		126.1		121.5		129.9		132.7
	330.9		337.7		380.2		382.1		378.0		West		91.2		93.7		95.8		97.3		99.9		103.3
	268.2		286.3		285.6		357.6		356.6		Global Family Office		86.0		91.3		91.7		87.6		95.2		98.8
	$	1,640.6	$	1,673.4	$	1,873.8	$	1,936.3	$	1,899.9		Total WM Trust, Investment and Other Servicing Fees	$	460.6	$	475.1	$	485.9	$	478.3	$	503.3	$	515.5


Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
								CHANGE (5)
	Assets			6/30/2024		6/30/2023		$		%
		Federal Reserve and Other Central Bank Deposits		$	43,206.1	$	42,675.1	$	531.0	1	%
		Interest-Bearing Due from and Deposits with Banks(1)		5,558.9		4,625.8		933.1		20	%
		Federal Funds Sold		—		—		—		—	%
		Securities Purchased under Agreements to Resell		859.6		1,228.9		(369.3)		(30)	%
		Debt Securities:
			Available For Sale	26,861.7		24,264.4		2,597.3		11	%
			Held To Maturity	22,798.6		26,006.3		(3,207.7)		(12)	%
			Trading Account	—		0.1		(0.1)		(93)	%
			Total Debt Securities	49,660.3		50,270.8		(610.5)		(1)	%
		Loans		42,135.2		43,546.7		(1,411.5)		(3)	%
		Other Interest-Earning Assets(2)		3,025.2		2,694.8		330.4		12	%
			Total Earning Assets	144,445.3		145,042.1		(596.8)		—	%
		Allowance for Credit Losses		(179.5)		(170.2)		(9.3)		5	%
		Cash and Due From Banks and Other Central Bank Deposits(3)		2,390.1		1,803.7		586.4		33	%
		Buildings and Equipment		481.0		473.6		7.4		2	%
		Client Security Settlement Receivables		193.4		431.3		(237.9)		(55)	%
		Goodwill		697.4		698.8		(1.4)		—	%
		Other Assets		8,769.4		8,473.2		296.2		3	%
			Total Assets	$	156,797.1	$	156,752.5	$	44.6	—	%
	Liabilities and Stockholders' Equity
		Savings, Money Market and Other		$	28,074.0	$	23,535.5	$	4,538.5	19	%
		Savings Certificates and Other Time		6,378.4		3,327.0		3,051.4		92	%
		Non- U.S. Offices - Interest-Bearing		67,612.3		65,014.7		2,597.6		4	%
			Total Interest-Bearing Deposits	102,064.7		91,877.2		10,187.5		11	%
		Federal Funds Purchased		2,406.4		9,344.5		(6,938.1)		(74)	%
		Securities Sold under Agreements to Repurchase		629.2		988.1		(358.9)		(36)	%
		Other Borrowings(4)		6,823.7		12,382.0		(5,558.3)		(45)	%
		Senior Notes		2,744.0		2,729.5		14.5		1	%
		Long-Term Debt		4,073.0		2,061.5		2,011.5		98	%

			Total Interest-Bearing Liabilities	118,741.0		119,382.8		(641.8)		(1)	%
		Demand and Other Noninterest-Bearing Deposits		20,926.2		21,326.4		(400.2)		(2)	%
		Other Liabilities		4,474.1		4,407.6		66.5		2	%
			Total Liabilities	144,141.3		145,116.8		(975.5)		(1)	%
		Common Equity		11,770.9		10,750.8		1,020.1		9	%
		Preferred Equity		884.9		884.9		—		—	%
			Total Stockholders' Equity	12,655.8		11,635.7		1,020.1		9	%
			Total Liabilities and Stockholders' Equity	$	156,797.1	$	156,752.5	$	44.6	—	%

	(1)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
	(2)	Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(3)	Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
	(4)	Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
	(5)	Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.


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

														2023								2024
	2019		2020		2021		2022		2023		Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	18,511.0	$	27,904.2	$	39,028.2	$	36,248.8	$	31,205.4		Federal Reserve and Other Central Bank Deposits		$	36,641.8	$	34,380.4	$	28,000.8	$	25,951.3	$	35,897.3	$	35,924.1
	5,996.7		5,400.8		5,779.7		4,192.5		4,333.9			Interest-Bearing Due from and Deposits with Banks(2)		4,198.7		4,573.4		4,301.4		4,261.6		4,418.0		4,999.7
	12.8		2.3		0.1		5.5		6.1			Federal Funds Sold		19.7		2.9		1.2		1.0		0.5		0.3
	835.0		1,253.1		1,067.4		1,071.2		950.9			Securities Purchased under Agreements to Resell		1,046.1		1,238.6		950.8		573.1		517.9		731.9
												Debt Securities:
	38,016.2		40,642.7		38,986.9		32,060.2		24,356.6				Available For Sale	25,030.4		24,511.8		24,430.7		23,469.9		24,049.6		26,591.4
	11,650.0		14,353.3		20,617.0		22,970.0		25,511.9				Held To Maturity	25,382.2		25,053.3		25,919.2		25,685.2		24,498.9		23,373.8
	1.2		1.1		0.6		12.1		0.5				Trading Account	1.3		0.2		0.4		0.2		—		—
	49,667.4		54,997.1		59,604.5		55,042.3		49,869.0				Total Debt Securities	50,413.9		49,565.3		50,350.3		49,155.3		48,548.5		49,965.2
	31,052.8		33,498.8		37,207.5		41,030.6		42,177.0			Loans and Leases		41,959.4		42,365.4		42,210.4		42,170.0		41,586.9		41,034.6
	1,033.7		1,076.6		1,185.6		1,248.1		2,259.0			Other Interest-Earning Assets(3)		1,677.8		1,990.4		2,439.5		2,912.8		2,847.7		2,745.3
	107,109.4		124,132.9		143,873.0		138,839.0		130,801.3				Total Earning Assets	135,957.4		134,116.4		128,254.4		125,025.1		133,816.8		135,401.1

	(111.4)		(178.0)		(173.0)		(154.1)		(172.8)			Allowance for Credit Losses		(161.5)		(176.6)		(170.4)		(182.5)		(191.8)		(175.8)
	2,393.6		2,603.0		2,285.9		2,069.5		1,771.6			Cash and Due From Banks and Other Central Bank Deposits(4)		1,795.9		1,842.5		1,694.6		1,754.6		1,799.5		1,802.0
	425.6		509.3		502.7		488.7		484.8			Buildings and Equipment		497.3		481.8		474.1		486.4		498.2		485.8
	1,070.4		1,357.5		1,530.1		1,722.3		558.8			Client Security Settlement Receivables		1,098.5		592.7		350.3		205.9		238.6		321.4
	682.5		695.4		707.3		692.2		696.2			Goodwill		692.3		697.0		698.9		696.4		699.4		697.1
	5,981.3		7,691.0		7,637.2		8,894.3		8,509.3			Other Assets		8,180.0		8,345.8		8,899.7		8,602.8		8,257.6		9,469.6
	$	117,551.4	$	136,811.1	$	156,363.2	$	152,551.9	$	142,649.2			Total Assets	$	148,059.9	$	145,899.6	$	140,201.6	$	136,588.7	$	145,118.3	$	148,001.2

											Liabilities and Stockholders' Equity
	$	16,577.8	$	23,396.4	$	28,339.0	$	30,205.0	$	24,172.4		Savings, Money Market and Other		$	27,268.8	$	22,961.2	$	22,624.9	$	23,888.7	$	27,349.0	$	27,554.9
	867.5		1,266.4		887.2		1,059.7		3,341.2			Savings Certificates and Other Time		2,360.1		3,036.1		3,665.2		4,279.0		4,554.3		6,027.4
	54,885.2		60,486.3		69,713.4		65,031.3		60,008.6			Non- U.S. Offices - Interest-Bearing		62,411.1		62,046.3		58,680.5		56,970.9		63,752.8		63,216.3
	72,330.5		85,149.1		98,939.6		96,296.0		87,522.2				Total Interest-Bearing Deposits	92,040.0		88,043.6		84,970.6		85,138.6		95,656.1		96,798.6
	1,267.0		980.9		190.6		1,407.8		5,144.3			Federal Funds Purchased		3,653.9		7,070.0		5,935.9		3,906.0		2,650.1		3,010.7
	339.0		218.3		232.0		433.6		401.5			Securities Sold under Agreements to Repurchase		347.1		467.8		426.0		364.5		490.1		574.6
	7,753.0		6,401.1		5,049.8		5,463.5		10,339.5			Other Borrowings(5)		11,324.0		12,132.6		10,981.7		6,960.8		6,852.1		7,053.5
	2,389.1		3,233.8		2,856.4		2,756.0		2,734.0			Senior Notes		2,748.1		2,761.1		2,713.2		2,714.2		2,748.7		2,728.7
	1,139.0		1,189.2		1,166.1		1,258.9		2,586.0			Long-Term Debt		2,066.3		2,069.7		2,126.9		4,064.1		4,067.0		4,071.1
	277.6		277.7		218.4		—		—			Floating Rate Capital Debt		—		—		—		—		—		—
	85,495.1		97,450.1		108,652.9		107,615.8		108,727.5				Total Interest-Bearing Liabilities	112,179.4		112,544.8		107,154.3		103,148.2		112,464.1		114,237.2
	17,455.5		23,362.0		31,143.5		29,296.4		17,723.3			Demand and Other Noninterest-Bearing Deposits		20,145.6		17,555.1		16,792.5		16,450.4		16,706.5		16,543.0
	3,952.4		4,806.4		4,869.8		4,558.3		4,701.6			Other Liabilities		4,453.4		4,351.0		4,718.2		5,274.6		4,164.0		4,862.2
	106,903.0		125,618.0		144,666.2		141,471.0		131,152.4				Total Liabilities	136,778.4		134,450.9		128,665.0		124,873.2		133,334.6		135,642.4
	9,705.2		10,306.7		10,812.1		10,196.5		10,611.9			Common Equity		10,396.6		10,563.8		10,651.7		10,830.6		10,898.8		11,473.9
	943.1		885.9		884.9		884.9		884.9			Preferred Equity		884.9		884.9		884.9		884.9		884.9		884.9
	10,648.0		11,193.0		11,697.0		11,081.4		11,496.8				Total Stockholders' Equity	11,281.5		11,448.7		11,536.6		11,715.5		11,783.7		12,358.8
	$	117,551.0	$	136,811.0	$	156,363.2	$	152,551.9	$	142,649.2			Total Liabilities and Stockholders' Equity	$	148,059.9	$	145,899.6	$	140,201.6	$	136,588.7	$	145,118.3	$	148,001.2


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


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

														2023								2024
	2019		2020		2021		2022		2023		Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	15.7	%	20.4	%	25.0	%	23.8	%	21.9	%		Federal Reserve and Other Central Bank Deposits		24.7	%	23.6	%	20.0	%	19.0	%	24.7	%	24.3	%
	5.1		3.9		3.7		2.7		3.0			Interest-Bearing Due from and Deposits with Banks(2)		2.8		3.1		3.1		3.1		3.0		3.4
	—		—		—		—		—			Federal Funds Sold		—		—		—		—		—		—
	0.7		0.9		0.7		0.7		0.7			Securities Purchased under Agreements to Resell		0.7		0.8		0.7		0.4		0.4		0.5
												Debt Securities:
	32.3		29.7		24.9		21.0		17.1				Available For Sale	16.9		16.8		17.4		17.2		16.6		18.0
	9.9		10.5		13.2		15.1		17.9				Held To Maturity	17.1		17.2		18.5		18.8		16.9		15.8
	—		—		—		—		—				Trading Account	—		—		—		—		—		—
	42.3		40.2		38.1		36.1		35.0				Total Debt Securities	34.0		34.0		35.9		36.0		33.5		33.8
	26.4		24.5		23.8		26.9		29.6			Loans and Leases		28.3		29.0		30.1		30.9		28.7		27.7
	0.9		0.8		0.8		0.8		1.6			Other Interest-Earning Assets(3)		1.1		1.4		1.7		2.1		2.0		1.9
	91.1		90.7		92.0		91.0		91.7				Total Earning Assets	91.8		91.9		91.5		91.5		92.2		91.5

	(0.1)		(0.1)		(0.1)		(0.1)		(0.1)			Allowance for Credit Losses		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)		(0.1)
	2.0		1.9		1.5		1.4		1.2			Cash and Due From Banks and Other Central Bank Deposits(4)		1.2		1.3		1.2		1.3		1.2		1.2
	0.4		0.4		0.3		0.3		0.3			Buildings and Equipment		0.3		0.3		0.3		0.4		0.3		0.3
	0.9		1.0		1.0		1.1		0.4			Client Security Settlement Receivables		0.7		0.4		0.2		0.2		0.2		0.2
	0.6		0.5		0.5		0.5		0.5			Goodwill		0.5		0.5		0.5		0.5		0.5		0.5
	5.1		5.6		4.9		5.8		6.0			Other Assets		5.5		5.7		6.3		6.3		5.7		6.4
	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 Stockholders' Equity
	14.1	%	17.1	%	18.1	%	19.8	%	16.9	%		Savings, Money Market and Other		18.4	%	15.7	%	16.1	%	17.5	%	18.8	%	18.6	%
	0.7		0.9		0.6		0.7		2.3			Savings Certificates and Other Time		1.6		2.1		2.6		3.1		3.1		4.1
	46.7		44.2		44.6		42.6		42.1			Non- U.S. Offices - Interest-Bearing		42.2		42.5		41.9		41.7		43.9		42.7
	61.5		62.2		63.3		63.1		61.4				Total Interest-Bearing Deposits	62.2		60.3		60.6		62.3		65.9		65.4
	1.1		0.7		0.1		0.9		3.6			Federal Funds Purchased		2.5		4.8		4.2		2.9		1.8		2.0
	0.3		0.2		0.1		0.3		0.3			Securities Sold under Agreements to Repurchase		0.2		0.3		0.3		0.3		0.3		0.4
	6.6		4.7		3.2		3.6		7.2			Other Borrowings(5)		7.6		8.3		7.8		5.1		4.7		4.8
	2.0		2.4		1.8		1.8		1.9			Senior Notes		1.9		1.9		1.9		2.0		1.9		1.8
	1.0		0.9		0.7		0.8		1.8			Long-Term Debt		1.4		1.4		1.5		3.0		2.8		2.8
	0.2		0.2		0.1		—		—			Floating Rate Capital Debt		—		—		—		—		—		—
	72.7		71.2		69.5		70.5		76.2				Total Interest-Bearing Liabilities	75.8		77.1		76.4		75.5		77.5		77.2
	14.8		17.1		19.9		19.2		12.4			Demand and Other Noninterest-Bearing Deposits		13.6		12.0		12.0		12.0		11.5		11.2
	3.4		3.5		3.1		3.0		3.3			Other Liabilities		3.0		3.0		3.4		3.9		2.9		3.3
	90.9		91.8		92.5		92.7		91.9				Total Liabilities	92.4		92.2		91.8		91.4		91.9		91.6
	8.3		7.5		6.9		6.7		7.4			Common Equity		7.0		7.2		7.6		7.9		7.5		7.8
	0.8		0.6		0.6		0.6		0.6			Preferred Equity		0.6		0.6		0.6		0.6		0.6		0.6
	9.1		8.2		7.5		7.3		8.1				Total Stockholders' Equity	7.6		7.8		8.2		8.6		8.1		8.4
	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)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)	Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)	Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)	Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.


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).
															2023								2024
		2019		2020		2021		2022		2023		Earnings Assets			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
		0.98	%	0.10	%	0.03	%	1.30	%	4.69	%		Federal Reserve and Other Central Bank Deposits		4.17	%	4.65	%	4.99	%	5.11	%	5.15	%	5.12	%
		1.21		0.41		0.16		1.11		3.00			Interest-Bearing Due from and Deposits with Banks(2)		2.72		2.82		3.22		3.25		3.15		2.53
		2.73		1.37		0.41		3.22		4.92			Federal Funds Sold		4.79		5.25		5.62		5.63		5.64		5.64
		2.10		0.31		0.33		9.68		166.71			Securities Purchased under Agreements to Resell(5)		48.80		92.09		193.58		492.23		639.92		474.48
													Debt Securities:
		2.51		1.77		1.28		1.91		4.35				Available for Sale	3.80		4.17		4.51		4.94		5.41		5.52
		0.94		0.59		0.80		1.26		1.87				Held to Maturity	1.64		1.80		1.93		2.13		2.02		1.95
		3.29		3.27		1.59		3.84		13.50				Trading Account	7.63		42.53		21.15		5.19		—		—
		2.14		1.46		1.11		1.64		3.08				Total Debt Securities	2.72		2.97		3.18		3.46		3.70		3.85
		3.74		2.32		1.92		3.28		6.06			Loans and Leases		5.60		6.06		6.26		6.32		6.34		6.38
		3.56		3.63		3.43		4.03		4.87			Other Interest-Earning Assets(3)		4.67		5.04		4.65		5.05		4.51		4.68
		2.36	%	1.35	%	1.00	%	2.11	%	5.64	%			Total Earning Assets	4.38	%	5.23	%	6.03	%	7.04	%	7.37	%	7.47	%

												Interest-Bearing Funds
		0.97	%	0.20	%	0.05	%	0.74	%	2.85	%		Savings, Money Market and Other		2.35	%	2.67	%	3.05	%	3.40	%	3.72	%	3.75	%
		1.86		1.30		0.55		1.68		4.54			Savings Certificates and Other Time		3.70		4.23		4.69		5.10		5.19		5.23
		0.57		(0.03)		(0.11)		0.56		3.07			Non- U.S. Offices - Interest-Bearing		2.50		2.90		3.38		3.56		3.59		3.58
		0.68		0.06		(0.06)		0.63		3.07				Total Interest-Bearing Deposits	2.49		2.89		3.35		3.59		3.71		3.73
		2.05		0.22		(0.19)		2.43		4.99			Federal Funds Purchased		4.45		4.97		5.18		5.25		5.11		5.16
		1.89		0.47		0.07		20.94		383.84			Securities Sold under Agreements to Repurchase(5)		135.62		234.39		422.85		759.25		667.86		596.00
		2.34		0.71		0.28		2.31		5.25			Other Borrowings(4)		4.83		5.17		5.59		5.49		5.20		5.43
		3.04		2.24		1.69		3.36		6.22			Senior Notes		5.79		6.14		6.44		6.50		6.45		6.50
		3.36		2.24		1.81		3.49		5.69			Long-Term Debt		5.73		5.89		5.94		5.45		5.50		5.50
		2.98		1.52		0.78		—		—			Floating Rate Capital Debt		—		—		—		—		—		—
		0.96	%	0.21	%	0.02	%	0.92	%	4.91	%			Total Interest-Bearing Liabilities	3.34	%	4.36	%	5.48	%	6.60	%	6.86	%	6.98	%



		1.40	%	1.14	%	0.98	%	1.19	%	0.73	%		Net Interest Spread		1.04	%	0.87	%	0.55	%	0.44	%	0.51	%	0.49	%

		1.60	%	1.19	%	0.99	%	1.39	%	1.56	%		Net Interest Margin		1.62	%	1.57	%	1.45	%	1.59	%	1.61	%	1.57	%


	(1)	Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
	(2)	Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
	(3)	Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
	(4)	Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
	(5)	Includes the impact of balance sheet netting under master netting arrangements of approximately $62.9 billion for the three months ended June 30, 2024. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 5.46% for the three months ended June 30, 2024. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.39% for the three months ended June 30, 2024. See previous filings for impact of netting on prior periods.


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


																					2023												2024
		2019			2020			2021			2022			2023							1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr

		$	138.2		$	124.4		$	259.9		$	184.7		$	200.9		Beginning Allowance for Credit Losses				$	200.9		$	213.0		$	197.5		$	211.8		$	220.4		$	201.5

		—			13.7			—			—			—			Cumulative Effect Adjustment(1)				—			—			—			—			—			—

		(14.5)			125.0			(81.5)			12.0			24.5			Provision for (Release of) Credit Losses				15.0			(15.5)			14.0			11.0			(8.5)			8.0

																	(Charge-offs) Recoveries
		(6.5)			(9.7)			(0.7)			(6.0)			(8.7)				Charge-offs			(4.0)			(0.8)			(0.8)			(3.1)			(11.1)			(0.3)
		7.2			6.5			7.0			10.2			3.7				Recoveries			1.1			0.8			1.1			0.7			0.7			0.4
		0.7			(3.2)			6.3			4.2			(5.0)					Net (Charge-offs) Recoveries		(2.9)			—			0.3			(2.4)			(10.4)			0.1


		$	124.4		$	259.9		$	184.7		$	200.9		$	220.4					Ending Allowance for Credit Losses	$	213.0		$	197.5		$	211.8		$	220.4		$	201.5		$	209.6

																	Allowance for Credit Losses Assigned to:
		$	104.5		$	190.7		$	138.4		$	144.3		$	178.7			Loans and Leases			$	159.9		$	152.5		$	166.8		$	178.7		$	162.4		$	167.7
		19.9			61.1			34.1			38.5			26.9				Undrawn Loan Commitments and Standby Letters of Credit			34.3			26.0			28.3			26.9			25.2			29.5
		—			8.1			12.2			18.1			14.8				Debt Securities and Other Financial Assets			18.8			19.0			16.7			14.8			13.9			12.4
		$	124.4		$	259.9		$	184.7		$	200.9		$	220.4				Total Allowance for Credit Losses		$	213.0		$	197.5		$	211.8		$	220.4		$	201.5		$	209.6

		$	31,053		$	33,499		$	37,208		$	41,031		$	42,177		Average Loans and Leases Outstanding				$	41,959		$	42,365		$	42,210		$	42,170		$	41,587		$	41,035

		—		%	(0.01)		%	0.02		%	0.01		%	(0.01)		%	Annualized Loan-Related Net (Charge-offs) Recoveries to				(0.03)		%	—		%	—		%	(0.02)		%	(0.10)		%	—		%
																		Average Loans and Leases

		$	31,410		$	33,760		$	40,481		$	42,893		$	47,617		End of Period Loans and Leases Outstanding				$	42,370		$	43,547		$	43,577		$	47,617		$	47,343		$	42,135

		0.33		%	0.56		%	0.34		%	0.34		%	0.38		%	Allowance for Credit Losses Assigned to Loans				0.38		%	0.35		%	0.38		%	0.38		%	0.34		%	0.40		%
																		and Leases to Total Loans and Leases

																	Nonaccrual Assets
		$	83.6		$	131.7		$	122.3		$	45.9		$	63.6			Nonaccrual Loans and Leases			$	48.9		$	47.1		$	68.8		$	63.6		$	37.0		$	38.5
		3.2			0.7			3.0			—			1.5				Other Real Estate Owned (OREO)			—			0.3			0.3			1.5			—			—
		$	86.8		$	132.4		$	125.3		$	45.9		$	65.1				Total Nonaccrual Assets		$	48.9		$	47.4		$	69.1		$	65.1		$	37.0		$	38.5

		0.28		%	0.39		%	0.31		%	0.11		%	0.14		%	Nonaccrual Assets to Loans and Leases and OREO				0.12		%	0.11		%	0.16		%	0.14		%	0.08		%	0.09		%
																	Loans and Leases Allowance to Nonaccrual
		1.3x			1.4x			1.1x			3.1x			2.8x				Loans and Leases			3.3x			3.2x			2.4x			2.8x			4.4x			4.4x

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


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

														2023								2024
	2019		2020		2021		2022		2023		Assets Under Management			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr
	$	917.5	$	1,057.5	$	1,191.0	$	898.1	$	1,032.0	Asset Servicing			$	962.1	$	989.8	$	963.4	$	1,032.0	$	1,080.1	$	1,107.7
												Asset allocation:
	483.8		551.7		626.6		485.0		563.9				Equities	515.1		535.4		508.7		563.9		602.5		613.7
	114.6		120.1		132.6		107.1		116.2				Fixed Income Securities	107.3		108.8		109.7		116.2		116.3		125.8
	156.1		198.8		236.2		157.7		184.5				Cash and Other Assets	171.8		176.8		183.0		184.5		198.2		207.6
	163.0		186.9		195.6		148.3		167.4				Securities Lending Collateral	167.9		168.8		162.0		167.4		163.1		160.6

	$	313.8	$	347.8	$	416.1	$	351.4	$	402.5	Wealth Management			$	368.3	$	376.0	$	369.9	$	402.5	$	420.6	$	419.4
												Asset allocation:
	167.0		182.0		229.9		186.3		221.6				Equities	197.0		205.1		197.8		221.6		238.6		243.2
	79.2		84.7		83.5		79.4		87.2				Fixed Income Securities	80.3		79.9		80.5		87.2		87.2		85.8
	67.5		81.1		102.7		85.7		93.7				Cash and Other Assets	91.0		91.0		91.6		93.7		94.7		90.3
	0.1		—		—		—		—				Securities Lending Collateral	—		—		—		—		0.1		0.1
	$	1,231.3	$	1,405.3	$	1,607.1	$	1,249.5	$	1,434.5	Total Assets Under Management			$	1,330.4	$	1,365.8	$	1,333.3	$	1,434.5	$	1,500.7	$	1,527.1
												Asset allocation:
	$	650.8	$	733.7	$	856.5	$	671.3	$	785.5			Equities	$	712.1	$	740.5	$	706.5	$	785.5	841.1		$	856.9
	193.8		204.8		216.1		186.5		203.4				Fixed Income Securities	187.6		188.7		190.2		203.4		203.5		211.6
	223.6		279.9		338.9		243.4		278.2				Cash and Other Assets	262.8		267.8		274.6		278.2		292.9		297.9
	163.1		186.9		195.6		148.3		167.4				Securities Lending Collateral	167.9		168.8		162.0		167.4		163.2		160.7

											Assets Under Custody / Administration
	$	11,311.6	$	13,653.1	$	15,183.2	$	12,705.5	$	14,362.6		Asset Servicing		$	13,221.5	$	13,483.5	$	13,206.2	$	14,362.6	$	15,385.4	$	15,470.8
	738.8		879.4		1,065.6		898.5		1,042.3			Wealth Management		953.3		995.4		958.5		1,042.3		1,087.1		1,096.6
	$	12,050.4	$	14,532.5	$	16,248.8	$	13,604.0	$	15,404.9	Total Assets Under Custody / Administration			$	14,174.8	$	14,478.9	$	14,164.7	$	15,404.9	$	16,472.5	$	16,567.4
											Assets Under Custody
	$	8,497.8	$	10,387.7	$	11,554.8	$	9,712.3	$	10,882.0	Asset Servicing			$	10,065.6	$	10,295.7	$	10,064.4	$	10,882.0	$	11,723.1	$	11,955.5
												Asset allocation:
	3,866.6		4,751.0		5,404.3		4,312.8		5,028.9				Equities	4,546.1		4,739.3		4,590.7		5,028.9		5,511.4		5,711.7
	3,102.3		3,742.6		3,997.5		3,252.1		3,600.4				Fixed Income Securities	3,366.8		3,394.2		3,316.7		3,600.4		3,665.8		3,662.0
	1,365.9		1,707.2		1,957.4		1,999.1		2,085.3				Cash and Other Assets	1,984.8		1,993.4		1,995.0		2,085.3		2,382.8		2,421.2
	163.0		186.9		195.6		148.3		167.4				Securities Lending Collateral	167.9		168.8		162.0		167.4		163.1		160.6

	$	735.7	$	875.1	$	1,057.5	$	892.3	$	1,034.5	Wealth Management			$	947.6	$	989.1	$	951.0	$	1,034.5	$	1,081.0	$	1,085.9
												Asset allocation:
	432.0		542.9		644.8		497.9		623.6				Equities	545.0		589.4		550.7		623.6		661.1		669.3
	134.3		128.3		142.1		134.0		136.7				Fixed Income Securities	134.6		130.5		128.3		136.7		138.4		139.2
	169.3		203.9		270.6		260.4		274.2				Cash and Other Assets	268.0		269.2		272.0		274.2		281.4		277.3
	0.1		—		—		—		—				Securities Lending Collateral	—		—		—		—		0.1		0.1
	$	9,233.5	$	11,262.8	$	12,612.3	$	10,604.6	$	11,916.5	Total Assets Under Custody			$	11,013.2	$	11,284.8	$	11,015.4	$	11,916.5	$	12,804.1	$	13,041.4
												Asset allocation:
	$	4,298.6	$	5,293.9	$	6,049.1	$	4,810.7	$	5,652.5			Equities	$	5,091.1	$	5,328.7	$	5,141.4	$	5,652.5	$	6,172.5	$	6,381.0
	3,236.6		3,870.9		4,139.6		3,386.1		3,737.1				Fixed Income Securities	3,501.4		3,524.7		3,445.0		3,737.1		3,804.2		3,801.2
	1,535.2		1,911.1		2,228.0		2,259.5		2,359.5				Cash and Other Assets	2,252.8		2,262.6		2,267.0		2,359.5		2,664.2		2,698.5
	163.1		186.9		195.6		148.3		167.4				Securities Lending Collateral	167.9		168.8		162.0		167.4		163.2		160.7

											Memo
	$	94.2	$	114.0	$	144.9	$	119.9	$	144.3		WM Global Family Office AUM		$	126.2	$	128.5	$	128.9	$	144.3	$	152.4	$	152.7
	474.1		600.7		742.6		614.9		728.0			WM Global Family Office AUC		660.0		694.0		663.5		728.0		762.1		768.1


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.

													2023								2024
	2019		2020		2021		2022		2023				1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr

	$	2,499.9	$	1,643.5	$	1,406.5	$	2,877.7	$	7,325.0	Interest Income - GAAP		$	1,455.4	$	1,735.0	$	1,935.0	$	2,199.6	$	2,445.6	$	2,506.5
	32.8		34.4		35.6		45.6		57.5		Add: FTE Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	2,532.7		1,677.9		1,442.1		2,923.3		7,382.5			Interest Income (FTE) - Non-GAAP	1,468.6		1,748.1		1,948.2		2,217.6		2,452.9		2,513.4

	1,677.9		1,443.2		1,382.7		1,887.2		1,982.0		Net Interest Income - GAAP		531.2		511.5		456.2		483.1		528.1		522.9
	32.8		34.4		35.6		45.6		57.5		Add: FTE Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	1,710.7		1,477.6		1,418.3		1,932.8		2,039.5			Net Interest Income (FTE) - Non-GAAP	544.4		524.6		469.4		501.1		535.4		529.8

	6,073.1		6,100.8		6,464.5		6,761.2		6,773.5		Total Revenue - GAAP		1,744.6		1,757.1		1,726.5		1,545.3		1,646.8		2,715.5
	32.8		34.4		35.6		45.6		57.5		Add: FTE Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	6,105.9		6,135.2		6,500.1		6,806.8		6,831.0			Total Revenue (FTE) - Non-GAAP	1,757.8		1,770.2		1,739.7		1,563.3		1,654.1		2,722.4

	1,944.1		1,627.6		2,010.1		1,766.3		1,464.8		Income before Income Taxes - GAAP		444.0		440.7		434.3		145.8		290.6		1,173.6
	32.8		34.4		35.6		45.6		57.5		Add: FTE Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	1,976.9		1,662.0		2,045.7		1,811.9		1,522.3			Income before Income Taxes (FTE) - Non-GAAP	457.2		453.8		447.5		163.8		297.9		1,180.5

	451.9		418.3		464.8		430.3		357.5		Provision for Income Taxes - GAAP		109.4		108.9		106.5		32.7		75.9		277.5
	32.8		34.4		35.6		45.6		57.5		Add: FTE Adjustment		13.2		13.1		13.2		18.0		7.3		6.9
	484.7		452.7		500.4		475.9		415.0			Provision for Income Taxes (FTE) - Non-GAAP	122.6		122.0		119.7		50.7		83.2		284.4


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.

													2023								2024
		2019		2020		2021		2022		2023			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr

		32.0	%	26.7	%	31.1	%	26.1	%	21.6	%	Profit Margin (pre-tax) - GAAP (1)	25.4	%	25.1	%	25.2	%	9.4	%	17.6	%	43.2	%
		32.4	%	27.1	%	31.5	%	26.6	%	22.3	%	Profit Margin (pre-tax) (FTE) - Non-GAAP (1)	26.0	%	25.6	%	25.7	%	10.5	%	18.0	%	43.4	%

		24.6	%	19.8	%	23.9	%	19.8	%	16.3	%	Profit Margin (after-tax) - GAAP (2)	19.2	%	18.9	%	19.0	%	7.3	%	13.0	%	33.0	%
		24.4	%	19.7	%	23.8	%	19.6	%	16.2	%	Profit Margin (after-tax) (FTE) - Non-GAAP (2)	19.0	%	18.7	%	18.8	%	7.2	%	13.0	%	32.9	%

		23.2	%	25.7	%	23.1	%	24.4	%	24.4	%	Effective Tax Rate - GAAP (3)	24.6	%	24.7	%	24.5	%	22.4	%	26.1	%	23.6	%
		24.5	%	27.2	%	24.5	%	26.3	%	27.3	%	Effective Tax Rate (FTE) - Non-GAAP (3)	26.8	%	26.9	%	26.8	%	30.9	%	27.9	%	24.1	%

		72.4	%	76.3	%	78.6	%	72.1	%	70.7	%	Noninterest Income to Total Revenue - GAAP (4)	69.5	%	70.9	%	73.6	%	68.7	%	67.9	%	80.7	%
		72.0	%	75.9	%	78.2	%	71.6	%	70.1	%	Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)	69.0	%	70.4	%	73.0	%	67.9	%	67.6	%	80.5	%

		63.4	%	65.5	%	67.5	%	65.6	%	64.4	%	Trust Fees to Total Revenue - GAAP (5)	61.0	%	62.4	%	64.4	%	70.5	%	69.4	%	42.9	%
		63.1	%	65.1	%	67.1	%	65.1	%	63.9	%	Trust Fees to Total Revenue (FTE) - Non-GAAP (5)	60.5	%	61.9	%	63.9	%	69.7	%	69.1	%	42.8	%

		1.37	%	1.11	%	0.96	%	1.15	%	0.69	%	Net Interest Spread - GAAP (6)	1.00	%	0.83	%	0.51	%	0.38	%	0.49	%	0.47	%
		1.40	%	1.14	%	0.98	%	1.19	%	0.73	%	Net Interest Spread (FTE) - Non-GAAP (6)	1.04	%	0.87	%	0.55	%	0.44	%	0.51	%	0.49	%

		1.57	%	1.16	%	0.96	%	1.36	%	1.52	%	Net Interest Margin - GAAP (7)	1.58	%	1.53	%	1.41	%	1.53	%	1.59	%	1.55	%
		1.60	%	1.19	%	0.99	%	1.39	%	1.56	%	Net Interest Margin (FTE) - Non-GAAP (7)	1.62	%	1.57	%	1.45	%	1.59	%	1.61	%	1.57	%

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