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8-K

Northern Trust Corp (NTRS)

8-K 2024-01-18 For: 2024-01-18
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Added on April 11, 2026

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) January 18, 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 January 18, 2024 press release, reporting on the registrant’s earnings for the three and twelve months ended December 31, 2023, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On January 18, 2024, the Corporation will hold a live conference call and webcast to discuss financial results for the three and twelve months ended December 31, 2023 and other matters relating to the Corporation. In connection therewith, the Corporation has also made available on its website presentation materials containing certain information relating to the Corporation (the “Presentation Materials”) and materials that contain additional information about the Corporation’s financial results for the three and twelve months ended December 31, 2023 (the “Financial Trends”), copies of which are attached as Exhibits 99.2 and 99.3 hereto, and are incorporated herein by reference.

Item 9.01.    Financial Statements and Exhibits

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

(d) Exhibits:

Exhibit 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: January 18, 2024 By: /s/ Jason J. Tyler
Jason J. Tyler
Executive Vice President and Chief Financial Officer

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 FOURTH QUARTER NET INCOME OF $113.1 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $0.52

CHICAGO, JANUARY 18, 2024 — Northern Trust Corporation today reported fourth quarter net income per diluted common share of $0.52, compared to $1.49 in the third quarter of 2023 and $0.71 in the fourth quarter of 2022. Net income was $113.1 million, compared to $327.8 million in the prior quarter and $155.7 million in the prior-year quarter.

Fourth quarter 2023 results included the following:

•$176.4 million pre-tax loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recognized in Investment Security Gains (Losses), net (after-tax $131.7 million).

•$84.6 million pre-tax Federal Deposit Insurance Corporation (FDIC) special assessment, recognized in Other Operating Expense (after-tax $63.1 million).

MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust’s fourth quarter results capped off a solid year of progress made towards driving improved financial performance. In the fourth quarter, trust fee growth accelerated compared to the prior year, average deposit levels proved resilient, and credit quality remained strong. Importantly, we brought year-over-year expense growth, excluding notables, down in each quarter this year. We also improved our capital and liquidity levels while returning over $300 million in capital to shareholders.<br><br><br><br>As we begin 2024, we are squarely focused on accelerating profitable organic growth, maintaining our expense discipline and driving greater resiliency and efficiency in our operating model to create sustained long-term shareholder value over time.” FINANCIAL SUMMARY & KEY METRICS
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
% Change Q4 2023 vs.
($ In Millions except per share data) Q4 2023 Q3 2023 Q4 2022 Q3 2023 Q4 2022
Trust, Investment and Other Servicing Fees $ 1,090.0 $ 1,111.9 $ 1,042.1 (2) % 5 %
Other Noninterest Income (Loss) (27.8) 158.4 (57.6) N/M (52)
Net Interest Income (FTE*) 501.1 469.4 550.0 7 (9)
Total Revenue (FTE*) $ 1,563.3 $ 1,739.7 $ 1,534.5 (10) % 2 %
Noninterest Expense $ 1,388.5 $ 1,278.2 $ 1,323.6 9 % 5 %
Provision for (Release of) Credit Losses 11.0 14.0 5.0 N/M N/M
Provision for Income Taxes 32.7 106.5 34.7 (69) (6)
FTE Adjustment* 18.0 13.2 15.5 36 16
Net Income $ 113.1 $ 327.8 $ 155.7 (65) % (27) %
Earnings Allocated to Common and Potential Common Shares $ 106.5 $ 308.5 $ 148.7 (65) % (28) %
Diluted Earnings per Common Share $ 0.52 $ 1.49 $ 0.71 (65) % (27) %
Return on Average Common Equity 4.0 % 11.6 % 5.9 %
Return on Average Assets 0.33 % 0.93 % 0.42 %
Average Assets $ 136,588.7 $ 140,201.6 $ 147,803.6 (3) % (8) %

N/M - Not meaningful

(*)     Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || CLIENT ASSETS | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income. | | | | | | | | | | | | | As of | | | | | | % Change December 31, 2023 vs. | | | | | ($ In Billions) | December 31, 2023* | | September 30, 2023 | | December 31, 2022 | | September 30, 2023 | | December 31, 2022 | | | Assets Under Custody/Administration | | | | | | | | | | | | Asset Servicing | $ | 14,362.6 | $ | 13,206.2 | $ | 12,705.5 | 9 | % | 13 | % | | Wealth Management | 1,042.3 | | 958.5 | | 898.5 | | 9 | | 16 | | | Total Assets Under Custody/Administration | $ | 15,404.9 | $ | 14,164.7 | $ | 13,604.0 | 9 | % | 13 | % | | Assets Under Custody(1) | | | | | | | | | | | | Asset Servicing | $ | 10,882.0 | $ | 10,064.4 | $ | 9,712.3 | 8 | % | 12 | % | | Wealth Management | 1,034.5 | | 951.0 | | 892.3 | | 9 | | 16 | | | Total Assets Under Custody | $ | 11,916.5 | $ | 11,015.4 | $ | 10,604.6 | 8 | % | 12 | % | | Assets Under Management | | | | | | | | | | | | Asset Servicing | $ | 1,032.0 | $ | 963.4 | $ | 898.1 | 7 | % | 15 | % | | Wealth Management | 402.5 | | 369.9 | | 351.4 | | 9 | | 15 | | | Total Assets Under Management | $ | 1,434.5 | $ | 1,333.3 | $ | 1,249.5 | 8 | % | 15 | % |

(1) Assets Under Custody are a component of Assets Under Custody/Administration.

(*) Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.

TRUST, INVESTMENT AND OTHER SERVICING FEES
% Change Q4 2023 vs.
($ In Millions) Q4 2023 Q3 2023 Q4 2022 Q3 2023 Q4 2022
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 420.4 $ 428.1 $ 406.3 (2) % 3 %
Investment Management 130.7 137.1 123.8 (5) 5
Securities Lending 22.0 20.4 19.3 8 14
Other 38.6 40.4 38.6 (5) —
Total Asset Servicing $ 611.7 $ 626.0 $ 588.0 (2) % 4 %
Wealth Management Trust, Investment and Other Servicing Fees
Central $ 171.9 $ 172.3 $ 162.2 — % 6 %
East 121.5 126.1 117.8 (4) 3
West 97.3 95.8 89.5 2 9
Global Family Office (GFO) 87.6 91.7 84.6 (4) 4
Total Wealth Management $ 478.3 $ 485.9 $ 454.1 (2) % 5 %
Total Consolidated Trust, Investment and Other Servicing Fees $ 1,090.0 $ 1,111.9 $ 1,042.1 (2) % 5 %

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

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

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

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

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

•Fees in the regions decreased sequentially primarily due to unfavorable markets, partially offset by asset inflows. Fees in the regions increased from the prior-year quarter primarily due to favorable markets, partially offset by product-related asset outflows.

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

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || OTHER NONINTEREST INCOME | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | % Change Q4 2023 vs. | | | | | ($ In Millions) | Q4 2023 | | Q3 2023 | | Q4 2022 | | Q3 2023 | | Q4 2022 | | | Other Noninterest Income | | | | | | | | | | | | Foreign Exchange Trading Income | $ | 49.0 | $ | 51.8 | $ | 65.4 | (5) | % | (25) | % | | Treasury Management Fees | 7.8 | | 7.5 | | 8.3 | | 2 | | (8) | | | Security Commissions and Trading Income | 33.3 | | 30.9 | | 35.1 | | 8 | | (5) | | | Other Operating Income | 58.5 | | 68.2 | | 47.3 | | (14) | | 24 | | | Investment Security Gains (Losses), net | (176.4) | | — | | (213.7) | | N/M | | N/M | | | Total Other Noninterest Income (Loss) | $ | (27.8) | $ | 158.4 | $ | (57.6) | N/M | | (52) | % |

N/M - Not meaningful

Foreign exchange trading income decreased sequentially and compared to the prior-year quarter primarily driven by lower client volumes and an unfavorable impact from foreign exchange swap activity.

Other operating income decreased sequentially primarily due to lower income related to existing swap agreements related to Visa Inc. Class B common shares and lower income associated with a market value decrease in supplemental compensation plans. Other operating income increased compared to the prior-year quarter primarily driven by higher income related to existing swap agreements related to Visa Inc. Class B common shares and higher banking and credit-related services fees.

Investment Security Gains (Losses), net reflects the $176.4 million available for sale debt security loss arising from a repositioning of the portfolio during the current quarter. In the prior-year quarter, there was a $213.0 million loss arising from an intent to sell available for sale debt securities also arising from a repositioning of the portfolio.

NET INTEREST INCOME
% Change Q4 2023 vs.
($ In Millions) Q4 2023 Q3 2023 Q4 2022 Q3 2023 Q4 2022
Net Interest Income
Interest Income (FTE*) $ 2,217.6 $ 1,948.2 $ 1,185.6 14 % 87 %
Interest Expense 1,716.5 1,478.8 635.6 16 170
Net Interest Income (FTE*) $ 501.1 $ 469.4 $ 550.0 7% (9)%
Average Earning Assets $ 125,025.1 $ 128,254.4 $ 133,788.5 (3)% (7)%
Net Interest Margin (FTE*) 1.59 % 1.45 % 1.63 % 14 bps (4) bps

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

bps - basis points

Net interest income on an FTE basis increased sequentially primarily due to a favorable balance sheet mix and higher average interest rates. Net interest income on an FTE basis decreased compared to the prior-year quarter primarily due to lower average earning assets, partially offset by higher average interest rates.

The net interest margin on an FTE basis increased sequentially primarily due to a favorable funding mix shift. The net interest margin on an FTE basis decreased from the prior-year quarter primarily due to an unfavorable funding mix shift, partially offset by higher average interest rates.

Average earning assets decreased sequentially primarily due to lower borrowing activity. Average earning assets decreased compared to the prior-year quarter primarily due to lower client deposits, partially offset by increased borrowing activity, the net of which resulted in lower funding of earning assets.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || PROVISION FOR CREDIT LOSSES | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As of and for the three-months ended, | | | | | | % Change December 31, 2023 vs. | | | | | ($ In Millions) | December 31, 2023 | | September 30, 2023 | | December 31, 2022 | | September 30, 2023 | | December 31, 2022 | | | Allowance for Credit Losses | | | | | | | | | | | | Beginning Allowance for Credit Losses | $ | 211.8 | $ | 197.5 | $ | 195.9 | 7 | % | 8 | % | | Provision for (Release of) Credit Losses | 11.0 | | 14.0 | | 5.0 | | N/M | | N/M | | | Net Recoveries (Charge-Offs) | (2.4) | | 0.3 | | — | | N/M | | N/M | | | Ending Allowance for Credit Losses | $ | 220.4 | $ | 211.8 | $ | 200.9 | 4 | % | 10 | % | | Allowance assigned to: | | | | | | | | | | | | Loans | $ | 178.7 | $ | 166.8 | $ | 144.3 | 7 | % | 24 | % | | Undrawn Loan Commitments and <br>Standby Letters of Credit | 26.9 | | 28.3 | | 38.5 | | (5) | | (30) | | | Debt Securities and Other Financial Assets | 14.8 | | 16.7 | | 18.1 | | (12) | | (18) | | | Ending Allowance for Credit Losses | $ | 220.4 | $ | 211.8 | $ | 200.9 | 4 | % | 10 | % |

N/M - Not meaningful

Q4 2023

The provision in the current quarter was primarily due to an increase in the reserve evaluated on a collective basis and an increase in the reserve evaluated on an individual basis driven by a very small number of borrowers. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics. The increase in the collective basis reserve was driven by methodology updates.

Q3 2023

The provision in the prior quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by a small number of large new loans and renewals and credit quality deterioration of certain commercial loans, partially offset by a net improvement in the overall macroeconomic outlook at the time.

Q4 2022

The provision in the prior-year quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by growth in certain commercial portfolios and further deterioration in the macroeconomic outlook at the time, partially offset by improvement in portfolio quality for a commercial segment.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || NONINTEREST EXPENSE | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | % Change Q4 2023 vs. | | | | | ($ In Millions) | Q4 2023 | | Q3 2023 | | Q4 2022 | | Q3 2023 | | Q4 2022 | | | Noninterest Expense | | | | | | | | | | | | Compensation | $ | 564.0 | $ | 558.1 | $ | 584.3 | 1 | % | (3) | % | | Employee Benefits | 102.0 | | 100.8 | | 103.6 | | 1 | | (2) | | | Outside Services | 235.2 | | 229.6 | | 232.9 | | 2 | | 1 | | | Equipment and Software | 252.0 | | 232.5 | | 229.4 | | 8 | | 10 | | | Occupancy | 58.5 | | 58.7 | | 65.7 | | — | | (11) | | | Other Operating Expense | 176.8 | | 98.5 | | 107.7 | | 80 | | 64 | | | Total Noninterest Expense | $ | 1,388.5 | $ | 1,278.2 | $ | 1,323.6 | 9 | % | 5 | % | | End of Period Full-Time Equivalent Employees | 23,100 | | 23,300 | | 23,600 | | (1) | % | (2) | % |

Compensation expense increased sequentially primarily due to higher agency costs and lower internally developed software related personnel credits. Compensation expense decreased compared to the prior-year quarter primarily due to $30.4 million of severance-related charges in the prior-year quarter and lower incentives, partially offset by higher salary expense and unfavorable currency translation.

Outside services expense increased sequentially primarily due to higher technical services costs and consulting services, partially offset by lower subcustodian expense.

Equipment and software expense increased sequentially and from the prior-year quarter primarily due to higher software amortization and higher software costs.

Occupancy expense decreased from the prior-year quarter primarily due to $14.0 million of charges related to early lease exits in the prior-year quarter, partially offset by higher real estate taxes.

Other operating expense increased sequentially and from the prior-year quarter primarily due to $84.6 million related to the FDIC special assessment.

PROVISION FOR INCOME TAX
% Change Q4 2023 vs.
($ In Millions) Q4 2023 Q3 2023 Q4 2022 Q3 2023 Q4 2022
Net Income
Income before Income Taxes $ 145.8 $ 434.3 $ 190.4 (66) % (23) %
Provision for Income Taxes 32.7 106.5 34.7 (69) (6)
Net Income $ 113.1 $ 327.8 $ 155.7 (65) % (27) %
Effective Tax Rate 22.4 % 24.5 % 18.2 % (210) bps 420 bps

bps - basis points

The effective tax rate decreased sequentially primarily due to a higher level of tax benefits from tax-credit investments and tax-exempt income, partially offset by a higher state tax provision and higher net tax impact from international operations as a percentage of earnings. The increase from the prior-year quarter was primarily due to a higher state tax provision and higher net tax impact from international operations, partially offset by a higher level of tax benefits from tax-credit investments and tax-exempt income.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || CAPITAL ACTIONS | | --- |

The Corporation returned approximately $302.4 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 $156.2 million to common stockholders. The Corporation repurchased 1,957,885 shares of common stock, including 21,985 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $146.2 million ($74.68 average price per share).

The Corporation also declared cash dividends totaling $4.7 million to preferred stockholders during the current quarter.

CAPITAL RATIOS

The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at December 31, 2023, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.

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

December 31, 2023* September 30, 2023 December 31, 2022
Capital Ratios - <br>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 11.4 % 13.4 % 11.4 % 13.2 % 10.8 % 11.5 % N/A 4.5 %
Tier 1 Capital 12.3 14.5 12.4 14.3 11.8 12.5 6.0 6.0
Total Capital 14.2 16.5 14.5 16.5 13.9 14.5 10.0 8.0
Tier 1 Leverage 8.1 8.1 7.9 7.9 7.1 7.1 N/A 4.0
Supplementary Leverage N/A 8.6 N/A 8.4 N/A 7.9 N/A 3.0 December 31, 2023* September 30, 2023 December 31, 2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Capital Ratios - <br>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 12.2 % 14.6 % 12.3 % 14.5 % 11.6 % 12.4 % 6.5 % 4.5 %
Tier 1 Capital 12.2 14.6 12.3 14.5 11.6 12.4 8.0 6.0
Total Capital 13.8 16.3 14.2 16.4 13.5 14.2 10.0 8.0
Tier 1 Leverage 8.0 8.0 7.8 7.8 6.9 6.9 5.0 4.0
Supplementary Leverage N/A 8.5 N/A 8.3 N/A 7.7 3.0 3.0

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

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS | | --- || RECONCILIATION TO FULLY TAXABLE EQUIVALENT | | --- |

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

QUARTERS
2023 2022
($ in Millions) FOURTH THIRD SECOND FIRST FOURTH
Net Interest Income
Interest Income - GAAP $ 2,199.6 $ 1,935.0 $ 1,735.0 $ 1,455.4 $ 1,170.1
Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5
Interest Income (FTE) - Non-GAAP $ 2,217.6 $ 1,948.2 $ 1,748.1 $ 1,468.6 $ 1,185.6
Net Interest Income - GAAP $ 483.1 $ 456.2 $ 511.5 $ 531.2 $ 534.5
Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5
Net Interest Income (FTE) - Non-GAAP $ 501.1 $ 469.4 $ 524.6 $ 544.4 $ 550.0
Net Interest Margin - GAAP 1.53 % 1.41 % 1.53 % 1.58 % 1.58 %
Net Interest Margin (FTE) - Non-GAAP 1.59 % 1.45 % 1.57 % 1.62 % 1.63 %
Total Revenue
Total Revenue - GAAP $ 1,545.3 $ 1,726.5 $ 1,757.1 $ 1,744.6 $ 1,519.0
Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5
Total Revenue (FTE) - Non-GAAP $ 1,563.3 $ 1,739.7 $ 1,770.2 $ 1,757.8 $ 1,534.5
NORTHERN TRUST CORPORATION FOURTH QUARTER 2023 RESULTS
--- FORWARD LOOKING STATEMENTS
---

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

WEBCAST OF FOURTH QUARTER EARNINGS CONFERENCE CALL

Northern Trust’s fourth quarter earnings conference call will be webcast on January 18, 2024.

The live call will be conducted at 8:00 a.m. CT and is accessible on Northern Trust’s website at:

https://www.northerntrust.com/about-us/investor-relations

A recording of the live call will be available on Northern Trust’s website following the live event, for approximately four weeks. Participants will need Windows Media or Adobe Flash software. This earnings release can also be accessed at Northern Trust’s website.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 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 December 31, 2023, Northern Trust had assets under custody/administration of US$15.4 trillion, and assets under management of US$1.4 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on 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) Q4 2023 vs.
Q3 2023 Q4 2022 Q3 2023 Q4 2022
Noninterest Income
Trust, Investment and Other Servicing Fees 1,090.0 $ 1,111.9 $ 1,042.1 (2) % 5 %
Foreign Exchange Trading Income 51.8 65.4 (5) (25)
Treasury Management Fees 7.5 8.3 2 (8)
Security Commissions and Trading Income 30.9 35.1 8 (5)
Other Operating Income 68.2 47.3 (14) 24
Investment Security Gains (Losses), net — (213.7) N/M N/M
Total Noninterest Income 1,270.3 984.5 (16) 8
Net Interest Income
Interest Income 1,935.0 1,170.1 14 88
Interest Expense 1,478.8 635.6 16 170
Net Interest Income 456.2 534.5 6 (10)
Total Revenue 1,726.5 1,519.0 (10) 2
Provision for Credit Losses 14.0 5.0 N/M N/M
Noninterest Expense
Compensation 558.1 584.3 1 (3)
Employee Benefits 100.8 103.6 1 (2)
Outside Services 229.6 232.9 2 1
Equipment and Software 232.5 229.4 8 10
Occupancy 58.7 65.7 — (11)
Other Operating Expense 98.5 107.7 80 64
Total Noninterest Expense 1,278.2 1,323.6 9 5
Income before Income Taxes 434.3 190.4 (66) (23)
Provision for Income Taxes 106.5 34.7 (69) (6)
NET INCOME 113.1 $ 327.8 $ 155.7 (65) % (27) %
Preferred Stock Dividends 16.2 4.7 (71) —
NET INCOME APPLICABLE TO COMMON STOCK 108.4 $ 311.6 $ 151.0 (65) % (28) %
Earnings Allocated to Participating Securities 3.1 2.3 (38) (16)
Earnings Allocated to Common and Potential Common Shares 106.5 $ 308.5 $ 148.7 (65) (28)
Per Common Share
Net Income
Basic 0.52 $ 1.49 $ 0.71 (65) % (28) %
Diluted 1.49 0.71 (65) (27)
Average Common Equity 10,830.6 $ 10,651.7 $ 10,094.5 2 % 7 %
Return on Average Common Equity % 11.6 % 5.9 %
Return on Average Assets % 0.93 % 0.42 %
Cash Dividends Declared per Common Share 0.75 $ 0.75 $ 0.75 — % — %
Average Common Shares Outstanding (000s)
Basic 207,022 208,423
Diluted 207,253 208,894
Common Shares Outstanding (EOP) (000s) 207,036 208,428

All values are in US Dollars.

(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) TWELVE MONTHS
2023 2022 % Change(1)
Noninterest Income
Trust, Investment and Other Servicing Fees $ 4,361.8 $ 4,432.6 (2) %
Foreign Exchange Trading Income 203.9 288.6 (29)
Treasury Management Fees 31.6 39.3 (20)
Security Commissions and Trading Income 135.0 136.2 (1)
Other Operating Income 228.7 191.3 19
Investment Security Gains (Losses), net (169.5) (214.0) N/M
Total Noninterest Income 4,791.5 4,874.0 (2)
Net Interest Income
Interest Income 7,325.0 2,877.7 155
Interest Expense 5,343.0 990.5 N/M
Net Interest Income 1,982.0 1,887.2 5
Total Revenue 6,773.5 6,761.2 —
Provision for Credit Losses 24.5 12.0 N/M
Noninterest Expense
Compensation 2,321.8 2,248.0 3
Employee Benefits 405.2 437.4 (7)
Outside Services 906.5 880.3 3
Equipment and Software 945.5 838.8 13
Occupancy 232.3 219.1 6
Other Operating Expense 472.9 359.3 32
Total Noninterest Expense 5,284.2 4,982.9 6
Income before Income Taxes 1,464.8 1,766.3 (17)
Provision for Income Taxes 357.5 430.3 (17)
NET INCOME $ 1,107.3 $ 1,336.0 (17) %
Preferred Stock Dividends 41.8 41.8 —
NET INCOME APPLICABLE TO COMMON STOCK $ 1,065.5 $ 1,294.2 (18) %
Earnings Allocated to Participating Securities 11.6 11.8 (1)
Earnings Allocated to Common and Potential Common Shares $ 1,053.9 $ 1,282.4 (18) %
Per Common Share
Net Income
Basic $ 5.09 $ 6.16 (17) %
Diluted 5.08 6.14 (17)
Average Common Equity $ 10,612.0 $ 10,196.6 4 %
Return on Average Common Equity 10.0 % 12.7 %
Return on Average Assets 0.78 % 0.88 %
Cash Dividends Declared per Common Share $ 3.00 $ 2.90 3 %
Average Common Shares Outstanding (000s)
Basic 207,248 208,309
Diluted 207,564 208,867
Common Shares Outstanding (EOP) (000s) 205,126 208,428

(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)
December 31, 2023 vs.
September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
Assets
Federal Reserve and Other Central Bank Deposits 34,281.0 $ 32,266.3 $ 39,961.9 6 % (14) %
Interest-Bearing Due from and Deposits with Banks(2) 5,216.4 4,926.6 — 6
Federal Funds Sold — 32.0 — (100)
Securities Purchased under Agreements to Resell 384.3 1,070.3 104 (27)
Debt Securities
Available for Sale 24,342.1 26,699.9 (5) (14)
Held to Maturity 24,920.4 25,036.1 5 5
Trading Account 0.1 95.2 (99) (100)
Total Debt Securities 49,262.6 51,831.2 — (5)
Loans 43,577.0 42,893.3 9 11
Other Interest-Earning Assets(3) 3,349.3 1,769.4 (6) 77
Total Earning Assets 134,055.9 142,484.7 5 (1)
Allowance for Credit Losses (182.7) (161.1) 5 19
Cash and Due from Banks and Other Central Bank Deposits(4) 1,912.4 1,737.2 (20) (12)
Buildings and Equipment 465.0 500.5 8 —
Client Security Settlement Receivables 147.6 1,698.3 44 (87)
Goodwill 692.8 691.3 1 2
Other Assets 9,239.6 8,085.8 (17) (5)
Total Assets 150,783.1 $ 146,330.6 $ 155,036.7 3 % (3) %
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other 25,252.1 $ 24,362.6 $ 31,128.6 4 % (19) %
Savings Certificates and Other Time 4,038.6 1,981.3 2 107
Non-U.S. Offices - Interest-Bearing 60,826.9 65,481.9 5 (2)
Total Interest-Bearing Deposits 89,228.1 98,591.8 5 (5)
Federal Funds Purchased 5,539.3 1,896.9 (45) 61
Securities Sold under Agreements to Repurchase 545.9 567.2 44 38
Other Borrowings(5) 6,870.9 7,592.3 (4) (13)
Senior Notes 2,688.9 2,724.2 3 2
Long-Term Debt 4,060.7 2,066.2 — 97
Total Interest-Related Funds 108,933.8 113,438.6 2 (3)
Demand and Other Noninterest-Bearing Deposits 20,937.8 25,340.3 9 (10)
Other Liabilities 4,611.8 4,998.3 19 10
Total Liabilities 134,483.4 143,777.2 3 (3)
Common Equity 10,962.3 10,374.6 — 6
Preferred Equity 884.9 884.9 — —
Total Equity 11,847.2 11,259.5 — 6
Total Liabilities and Stockholders’ Equity 150,783.1 $ 146,330.6 $ 155,036.7 3 % (3) %

All values are in US Dollars.

(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)
Q4 2023 vs.
Q3 2023 Q4 2022 Q3 2023 Q4 2022
Assets
Federal Reserve and Other Central Bank Deposits 25,951.3 $ 28,000.8 $ 32,755.2 (7) % (21) %
Interest-Bearing Due from and Deposits with Banks(2) 4,301.4 4,186.1 (1) 2
Federal Funds Sold 1.2 14.0 (20) (93)
Securities Purchased under Agreements to Resell 950.8 1,165.5 (40) (51)
Debt Securities
Available for Sale 24,430.7 26,742.4 (4) (12)
Held to Maturity 25,919.2 25,135.3 (1) 2
Trading Account 0.4 46.4 (56) (100)
Total Debt Securities 50,350.3 51,924.1 (2) (5)
Loans 42,210.4 42,329.4 — —
Other Interest-Earning Assets(3) 2,439.5 1,414.2 19 106
Total Earning Assets 128,254.4 133,788.5 (3) (7)
Allowance for Credit Losses (170.4) (154.6) 7 18
Cash and Due from Banks and Other Central Bank Deposits(4) 1,694.6 1,773.7 4 (1)
Buildings and Equipment 474.1 491.0 3 (1)
Client Security Settlement Receivables 350.3 1,809.9 (41) (89)
Goodwill 698.9 685.8 — 2
Other Assets 8,899.7 9,409.3 (3) (9)
Total Assets 136,588.7 $ 140,201.6 $ 147,803.6 (3) % (8) %
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other 23,888.7 $ 22,624.9 $ 28,488.7 6 % (16) %
Savings Certificates and Other Time 3,665.2 1,610.5 17 166
Non-U.S. Offices - Interest-Bearing 58,680.5 64,024.0 (3) (11)
Total Interest-Bearing Deposits 84,970.6 94,123.2 — (10)
Federal Funds Purchased 5,935.9 2,704.7 (34) 44
Securities Sold under Agreements to Repurchase 426.0 392.4 (14) (7)
Other Borrowings(5) 10,981.7 7,933.2 (37) (12)
Senior Notes 2,713.2 2,721.5 — —
Long-Term Debt 2,126.9 1,718.6 91 136
Total Interest-Related Funds 107,154.3 109,593.6 (4) (6)
Demand and Other Noninterest-Bearing Deposits 16,792.5 22,186.3 (2) (26)
Other Liabilities 4,718.2 5,044.3 12 5
Total Liabilities 128,665.0 136,824.2 (3) (9)
Common Equity 10,651.7 10,094.5 2 7
Preferred Equity 884.9 884.9 — —
Total Equity 11,536.6 10,979.4 2 7
Total Liabilities and Stockholders’ Equity 136,588.7 $ 140,201.6 $ 147,803.6 (3) % (8) %

All values are in US Dollars.

(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)
QUARTERLY TREND DATA
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
( In Millions Except Per Share Data) 2022
THIRD SECOND FIRST FOURTH
Net Income Summary
Trust, Investment and Other Servicing Fees 1,090.0 $ 1,111.9 $ 1,096.3 $ 1,063.6 $ 1,042.1
Other Noninterest Income 158.4 149.3 149.8 (57.6)
Net Interest Income 456.2 511.5 531.2 534.5
Total Revenue 1,726.5 1,757.1 1,744.6 1,519.0
Provision for (Release of) Credit Losses 14.0 (15.5) 15.0 5.0
Noninterest Expense 1,278.2 1,331.9 1,285.6 1,323.6
Income before Income Taxes 434.3 440.7 444.0 190.4
Provision for Income Taxes 106.5 108.9 109.4 34.7
Net Income 113.1 $ 327.8 $ 331.8 $ 334.6 $ 155.7
Per Common Share
Net Income - Basic 0.52 $ 1.49 $ 1.56 $ 1.51 $ 0.71
- Diluted 1.49 1.56 1.51 0.71
Cash Dividends Declared per Common Share 0.75 0.75 0.75 0.75
Book Value (EOP) 52.95 51.94 51.37 49.78
Market Value (EOP) 69.48 74.14 88.13 88.49
Financial Ratios
Return on Average Common Equity % 11.6 % 12.4 % 12.4 % 5.9 %
Return on Average Assets 0.93 0.91 0.92 0.42
Net Interest Margin (GAAP) 1.41 1.53 1.58 1.58
Net Interest Margin (FTE*) 1.45 1.57 1.62 1.63
Assets Under Custody / Administration ( in Billions) - End Of Period
Asset Servicing 14,362.6 $ 13,206.2 $ 13,483.5 $ 13,221.5 $ 12,705.5
Wealth Management 958.5 995.4 953.3 898.5
Total Assets Under Custody / Administration 15,404.9 $ 14,164.7 $ 14,478.9 $ 14,174.8 $ 13,604.0
Assets Under Custody ( In Billions) - End Of Period
Asset Servicing 10,882.0 $ 10,064.4 $ 10,295.7 $ 10,065.6 $ 9,712.3
Wealth Management 951.0 989.1 947.6 892.3
Total Assets Under Custody 11,916.5 $ 11,015.4 $ 11,284.8 $ 11,013.2 $ 10,604.6
Assets Under Management ( In Billions) - End Of Period
Asset Servicing 1,032.0 $ 963.4 $ 989.8 $ 962.1 $ 898.1
Wealth Management 369.9 376.0 368.3 351.4
Total Assets Under Management 1,434.5 $ 1,333.3 $ 1,365.8 $ 1,330.4 $ 1,249.5
Asset Quality ( In Millions) - End Of Period
Nonaccrual Loans 63.6 $ 68.8 $ 47.1 $ 48.9 $ 45.9
Other Real Estate Owned (OREO) 0.3 0.3 — —
Total Nonaccrual Assets 65.1 $ 69.1 $ 47.4 $ 48.9 $ 45.9
Nonaccrual Assets / Loans and OREO % 0.16 % 0.11 % 0.12 % 0.11 %
Gross Charge-offs (3.1) $ (0.8) $ (0.8) $ (4.0) $ (0.5)
Gross Recoveries 1.1 0.8 1.1 0.5
Net Recoveries (Charge-offs) (2.4) $ 0.3 $ — $ (2.9) $ —
Annualized Net Recoveries (Charge-offs) to Avg Loans % — % — % (0.03) % — %
Allowance for Credit Losses Assigned to:
Loans 178.7 $ 166.8 $ 152.5 $ 159.9 $ 144.3
Undrawn Loan Commitments and Standby Letters of Credit 28.3 26.0 34.3 38.5
Debt Securities and Other Financial Assets 16.7 19.0 18.8 18.1
Loans Allowance / Nonaccrual Loans x 2.4 x 3.2 x 3.3 x 3.1 x

All values are in US Dollars.

(*)    Net interest margin presented on an FTE basis is a non-generally accepted accounting principle financial measure that facilitates the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

13

q42023presentationmateri

northerntrust.com / © 2023 Northern Trust Exhibit 99.2

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

northerntrust.com / © 2023 Northern Trust 33

Financial Highlights & Key Metrics northerntrust.com / © 2023 Northern Trust 4 ¹ Revenue and 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 12. ² Actual numbers for all periods, not % change. ³ Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. N/M - Not meaningful RESULTS INCLUDE IMPACT OF NOTABLE ITEMS $ in millions (except EPS and as noted) % CHANGE VS. 4Q 2023 3Q 2023 4Q 2022 Revenue (FTE1) $ 1,563.3 (10) % 2 % Noninterest Expense $ 1,388.5 9 % 5 % Provision for Credit Losses 11.0 N/M N/M Net Income $ 113.1 (65) % (27) % Diluted Earnings per Share $ 0.52 (65) % (27) % Return on Average Common Equity2 4.0 % 11.6 % 5.9 % Profit Margin (Pre-Tax)1,2 10.5 % 25.7 % 13.4 % Expense to Trust Fee Ratio2 127 % 115 % 127 % Assets under Custody / Administration3 (AUC/A) (in billions) $ 15,404.9 9 % 13 % Assets under Custody3 (AUC) (in billions) $ 11,916.5 8 % 12 % Assets under Management3 (AUM) (in billions) $ 1,434.5 8 % 15 % Notable Items: 4Q23 Pre-tax • $176.4 million investment security loss • $84.6 million Federal Deposit Insurance Corporation (FDIC) special assessment 4Q22 Pre-tax • $213.0 million investment security loss • $32.0 million severance-related charge • $14.0 million occupancy charge • $6.8 million pension settlement charge

Asset Servicing Highlights northerntrust.com / © 2023 Northern Trust 5 % CHANGE VS. Asset Servicing Client Assets¹ (in billions): 4Q 2023 3Q 2023 4Q 2022 Assets under Custody / Administration (AUC/A) $ 14,362.6 9 % 13 % Assets under Custody (AUC) $ 10,882.0 8 % 12 % Assets under Management (AUM) $ 1,032.0 7 % 15 % Securities Lending Collateral $ 167.4 3 % 13 % $588.0 $603.0 $621.2 $626.0 $611.7 $406.3 $413.6 $427.4 $428.1 $420.4 $123.8 $126.2 $134.1 $137.1 $130.7 $19.3 $19.1 $21.5 $20.4 $22.0$38.6 $44.1 $38.2 $40.4 $38.6 Other Securities Lending Investment Management Custody and Fund Administration 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Asset Servicing Revenues ($ in millions) +4% (2)% Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.

Wealth Management Highlights northerntrust.com / © 2023 Northern Trust 6 % CHANGE VS. Wealth Management Client Assets¹ (in billions): 4Q 2023 3Q 2023 4Q 2022 Assets under Custody / Administration (AUC/A) $ 1,042.3 9 % 16 % Assets under Custody (AUC) $ 1,034.5 9 % 16 % Assets under Management (AUM) $ 402.5 9 % 15 % $454.1 $460.6 $475.1 $485.9 $478.3 $162.2 $163.6 $166.0 $172.3 $171.9 $117.8 $119.8 $124.1 $126.1 $121.5 $89.5 $91.2 $93.7 $95.8 $97.3 $84.6 $86.0 $91.3 $91.7 $87.6 Global Family Office (GFO) West East Central 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Wealth Management Revenues ($ in millions) +5% (2)% Categories may not sum due to rounding. ¹ Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.

$550.0 $544.4 $524.6 $469.4 $501.1 Net Interest Income (FTE¹) 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Net Interest Income and Balance Sheet Trends northerntrust.com / © 2023 Northern Trust 7 Categories may not sum due to rounding. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. 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. $133.8 $136.0 $134.1 $128.3 $125.0 $32.8 $36.6 $34.4 $28.0 $26.0 $51.9 $50.4 $49.6 $50.4 $49.2 $42.3 $42.0 $42.4 $42.2 $42.2 $6.8 $6.9 $7.8 $7.7 $7.7 Other Earning Assets² Loans Debt Securities Federal Reserve and Other Central Bank Deposits 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1.63% 1.62% 1.57% 1.45% 1.59% Net Interest Margin (FTE¹) Average Earning Assets ($ in billions) Net Interest Income (FTE1) ($ in millions) (9)%(7)% (3)% +7%

Noninterest Expense northerntrust.com / © 2023 Northern Trust 8Categories may not sum due to rounding. Expense Notes • Expenses included the following: • Severance-related charge of $38.7 million in 2Q23 ($36.7 million in Compensation expense and $2.0 million in Outside Services expense); $32.0 million in 4Q22 ($30.4 million in Compensation expense and $1.6 million in Outside Services) • Equipment and Software credit of $4.1 million in 3Q23 • FDIC special assessment in Other Operating Expense of $84.6 million in 4Q23 • Write-off of an investment in a client capability in Other Operating Expense of $25.6 million in 2Q23 • Occupancy charge of $3.0 million in 3Q23; $9.8 million in 1Q23; and $14.0 million in 4Q22 • Pension settlement charge of $6.8 million in 4Q22 $1,323.6 $1,285.6 $1,331.9 $1,278.2 $1,388.5 $687.9 $696.2 $705.9 $658.9 $666.0 $232.9 $210.8 $230.9 $229.6 $235.2 $229.4 $231.7 229.3 $232.5 $252.0 $65.7 $61.3 $53.8 $58.7 $58.5 $107.7 $85.6 $112.0 $98.5 $176.8 Other Operating Expense Occupancy Equipment and Software Outside Services Compensation and Employee Benefits 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total Noninterest Expense ($ in millions) +5% +9%

Highlights & Key Metrics: Full Year 2023 northerntrust.com / © 2023 Northern Trust 9 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. GAAP is included in the Appendix on page 12. ² Actual numbers for all periods, not % change. ³ Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. N/M - Not meaningful RESULTS INCLUDE IMPACT OF NOTABLE ITEMS $ in millions (except EPS and as noted) % CHANGE VS. 2023 2022 Revenue (FTE1) $ 6,831.0 — Noninterest Expense $ 5,284.2 6 % Provision for Credit Losses 24.5 N/M Net Income $ 1,107.3 (17) % Diluted Earnings per Share $ 5.08 (17) % Return on Average Common Equity2 10.0 % 12.7 % Profit Margin (Pre-Tax)1,2 22.3 % 26.6 % Expense to Trust Fee Ratio2 121 % 112 % Assets under Custody / Administration3 (AUC/A) (in billions) $ 15,404.9 13 % Assets under Custody3 (AUC) (in billions) $ 11,916.5 12 % Assets under Management3 (AUM) (in billions) $ 1,434.5 15 % Notable Items: 2023 Pre-tax • $176.4 million investment security loss • $84.6 million FDIC special assessment • $38.7 million severance-related charge • $25.6 million client capability charge • $12.8 million occupancy charge • $6.9 million investment security gain 2022 Pre-tax • $213.0 million investment security loss • $44.1 million pension settlement charge • $32.0 million severance-related charge • $14.0 million occupancy charge

Standardized Tier 1 Leverage Ratio 7.1% 7.3% 7.4% 7.9% 8.1% 4Q22 1Q23 2Q23 3Q23 4Q23 10.8% 11.3% 11.3% 11.4% 11.4% 4Q22 1Q23 2Q23 3Q23 4Q23 Capital Update northerntrust.com / © 2023 Northern Trust 10 Capital Highlights • Robust capital and liquidity • $10.2 billion in Tier 1 capital • 55% of deposits covered by highly liquid assets including 30% by cash and central bank deposits • Declared $156.2 million in common stock dividends and $4.7 million in preferred stock dividends in 4Q23 • Repurchased $146.2 million of common stock in 4Q23; totaling $347.5 million for 2023 • Unrealized MTM loss on available- for-sale securities of $923.9 million as of December 31, 2023 Northern Trust Corporation Capital Ratios 4Q 2023 CAPITAL RATIOS STANDARDIZED APPROACH ADVANCED APPROACH Common Equity Tier 1 Capital 11.4% 13.4% Tier 1 Capital 12.3% 14.5% Total Capital 14.2% 16.5% Tier 1 Leverage 8.1% 8.1% Supplementary Leverage N/A 8.6% Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. Standardized Common Equity Tier 1 Ratio

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. Reconciliation of Non-GAAP Financial Measures northerntrust.com / © 2023 Northern Trust 12 QUARTERS YEARS 2023 2022 2023 2022 ($ in Millions) FOURTH THIRD SECOND FIRST FOURTH Net Interest Income Interest Income - GAAP $ 2,199.6 $ 1,935.0 $ 1,735.0 $ 1,455.4 $ 1,170.1 $ 7,325.0 $ 2,877.7 Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5 57.5 45.6 Interest Income (FTE) - Non-GAAP $ 2,217.6 $ 1,948.2 $ 1,748.1 $ 1,468.6 $ 1,185.6 $ 7,382.5 $ 2,923.3 Net Interest Income - GAAP $ 483.1 $ 456.2 $ 511.5 $ 531.2 $ 534.5 $ 1,982.0 $ 1,887.2 Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5 57.5 45.6 Net Interest Income (FTE) - Non-GAAP $ 501.1 $ 469.4 $ 524.6 $ 544.4 $ 550.0 $ 2,039.5 $ 1,932.8 Net Interest Margin - GAAP 1.53 % 1.41 % 1.53 % 1.58 % 1.58 % 1.52 % 1.36 % Net Interest Margin (FTE) - Non-GAAP 1.59 % 1.45 % 1.57 % 1.62 % 1.63 % 1.56 % 1.39 % Total Revenue Total Revenue - GAAP $ 1,545.3 $ 1,726.5 $ 1,757.1 $ 1,744.6 $ 1,519.0 $ 6,773.5 $ 6,761.2 Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5 57.5 45.6 Total Revenue (FTE) - Non-GAAP $ 1,563.3 $ 1,739.7 $ 1,770.2 $ 1,757.8 $ 1,534.5 $ 6,831.0 $ 6,806.8 Pre-Tax Income Pre-Tax Income - GAAP $ 145.8 $ 434.3 $ 440.7 $ 444.0 $ 190.4 $ 1,464.8 $ 1,766.3 Add: FTE Adjustment 18.0 13.2 13.1 13.2 15.5 57.5 45.6 Pre-Tax Income (FTE) - Non-GAAP $ 163.8 $ 447.5 $ 453.8 $ 457.2 0$ 205.9 $ 1,522.3 $ 1,811.9 Profit Margin (Pre-Tax) Profit Margin (Pre-Tax) - GAAP 9.4 % 25.2 % 25.1 % 25.4 % 12.5 % 21.6 % 26.1 % Profit Margin (Pre-Tax) (FTE) - Non-GAAP 10.5 % 25.7 % 25.6 % 26.0 % 13.4 % 22.3 % 26.6 %

Forward-looking Statements northerntrust.com / © 2023 Northern Trust 13 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 Fourth Quarter 2023 earnings press release.

Document

Exhibit 99.3

reportsa29.jpg

Financial Trends

Fourth Quarter 2023

January 18, 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 Fourth Quarter 2023 earnings press release, 2022 Annual Report to Shareholders, and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.

TABLE OF CONTENTS
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)
2022 2023
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 $ 389.3 $ 396.2 $ 394.8 $ 155.7 $ 334.6 $ 331.8 $ 327.8 $ 113.1
1,428.9 1,141.0 1,490.6 1,282.4 1,053.9 Earnings Allocated to Common and Potential 370.0 388.3 375.4 148.7 315.2 323.7 308.5 106.5
Common Shares
$ 6.66 $ 5.48 $ 7.16 $ 6.16 $ 5.09 Basic Earnings Per Share $ 1.78 $ 1.86 $ 1.80 $ 0.71 $ 1.51 $ 1.56 $ 1.49 $ 0.52
6.63 5.46 7.14 6.14 5.08 Diluted Earnings Per Share 1.77 1.86 1.80 0.71 1.51 1.56 1.49 0.52
— % (18 %) 31 % (14 %) (17 %) Diluted EPS Growth over Previous Year 4 % 8 % — % (63 %) (15 %) (16 %) (17 %) (27 %)
14.9 % 11.2 % 13.9 % 12.7 % 10.0 % Return on Average Common Equity 14.2 % 15.7 % 14.9 % 5.9 % 12.4 % 12.4 % 11.6 % 4.0 %
1.27 % 0.88 % 0.99 % 0.88 % 0.78 % Return on Average Assets 0.97 % 1.03 % 1.07 % 0.42 % 0.92 % 0.91 % 0.93 % 0.33 %
32.4 % 27.1 % 31.5 % 26.6 % 22.3 % Profit Margin (pre-tax) (FTE)(1) 30.0 % 31.0 % 30.4 % 13.4 % 26.0 % 25.6 % 25.7 % 10.5 %
24.4 % 19.7 % 23.8 % 19.6 % 16.2 % Profit Margin (after-tax) (FTE)(1) 22.6 % 22.3 % 22.3 % 10.1 % 19.0 % 18.7 % 18.8 % 7.2 %
72.0 % 75.9 % 78.2 % 71.6 % 70.1 % Noninterest Income to Total Revenue (FTE)(1) 77.5 % 73.6 % 70.3 % 64.2 % 69.0 % 70.4 % 73.0 % 67.9 %
63.1 % 65.1 % 67.1 % 65.1 % 63.9 % Trust Fees to Total Revenue (FTE)(1) 67.7 % 64.2 % 61.0 % 67.9 % 60.5 % 61.9 % 63.9 % 69.7 %
23.2 % 25.7 % 23.1 % 24.4 % 24.4 % Effective Tax Rate (US GAAP) 23.8 % 26.7 % 24.7 % 18.2 % 24.6 % 24.7 % 24.5 % 22.4 %
24.5 % 27.2 % 24.5 % 26.3 % 27.3 % Effective Tax Rate (FTE)(1) 24.8 % 28.2 % 26.4 % 24.4 % 26.8 % 26.9 % 26.8 % 30.9 %
Capital Ratios:(2)
Standardized Approach
12.7 % 12.8 % 11.9 % 10.8 % 11.4 % Common Equity Tier 1 Capital 11.4 % 10.5 % 10.1 % 10.8 % 11.3 % 11.3 % 11.4 % 11.4 %
14.5 % 13.9 % 12.9 % 11.8 % 12.3 % Tier 1 Capital 12.4 % 11.5 % 11.1 % 11.8 % 12.3 % 12.3 % 12.4 % 12.3 %
16.3 % 15.6 % 14.1 % 13.9 % 14.2 % Total Capital 13.6 % 12.6 % 12.2 % 13.9 % 14.4 % 14.4 % 14.5 % 14.2 %
8.7 % 7.6 % 6.9 % 7.1 % 8.1 % Tier 1 Leverage 6.5 % 6.7 % 7.0 % 7.1 % 7.3 % 7.4 % 7.9 % 8.1 %
Advanced Approach
13.2 % 13.4 % 13.2 % 11.5 % 13.4 % Common Equity Tier 1 Capital 12.1 % 11.6 % 11.4 % 11.5 % 11.7 % 13.0 % 13.2 % 13.4 %
15.0 % 14.5 % 14.3 % 12.5 % 14.5 % Tier 1 Capital 13.2 % 12.7 % 12.5 % 12.5 % 12.7 % 14.1 % 14.3 % 14.5 %
16.8 % 15.9 % 15.3 % 14.5 % 16.5 % Total Capital 14.2 % 13.7 % 13.5 % 14.5 % 14.7 % 16.3 % 16.5 % 16.5 %
8.7 % 7.6 % 6.9 % 7.1 % 8.1 % Tier 1 Leverage 6.5 % 6.7 % 7.0 % 7.1 % 7.3 % 7.4 % 7.9 % 8.1 %
7.6 % 8.6 % 8.2 % 7.9 % 8.6 % Supplementary Leverage (3) 7.9 % 7.6 % 7.7 % 7.9 % 8.3 % 8.3 % 8.4 % 8.6 %
Per Share Information / Ratios:
$ 2.60 $ 2.80 $ 2.80 $ 2.90 $ 3.00 Cash Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.75 $ 0.75 $ 0.75 $ 0.75 $ 0.75 $ 0.75
39 % 51 % 39 % 47 % 59 % Dividend Payout Ratio 40 % 38 % 42 % 106 % 50 % 48 % 50 % 144 %
$ 106.24 $ 93.14 $ 119.61 $ 88.49 $ 84.38 Market Value Per Share (End of Period) $ 116.45 $ 96.48 $ 85.56 $ 88.49 $ 88.13 $ 74.14 $ 69.48 $ 84.38
16.0 17.1 16.8 14.4 16.6 Stock Price Multiple of Earnings 16.2 13.1 11.7 14.4 15.0 13.3 13.2 16.6
(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) $ 50.51 $ 48.87 $ 48.68 $ 49.78 $ 51.37 $ 51.94 $ 52.95 $ 53.69
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.
Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
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.

All values are in US Dollars.

Northern Trust Corporation
INCOME STATEMENT
( in Millions except per share information)
CHANGE (2) FOURTH QUARTER CHANGE (2)
2022 % 2023 2022 %
2,461.9 $ 2,496.3 (1) % Asset Servicing Trust, Investment and Other Servicing Fees $ 611.7 $ 588.0 4 %
1,936.3 (36.4) (2) % WM Trust, Investment and Other Servicing Fees 478.3 454.1 24.2 5 %
4,432.6 (70.8) (2) % Total Fees 1,090.0 1,042.1 47.9 5 %
288.6 (84.7) (29) % Foreign Exchange Trading Income 49.0 65.4 (16.4) (25) %
39.3 (7.7) (20) % Treasury Management Fees 7.8 8.3 (0.5) (8) %
136.2 (1.2) (1) % Security Commissions and Trading Income 33.3 35.1 (1.8) (5) %
191.3 37.4 19 % Other Operating Income 58.5 47.3 11.2 24 %
(214.0) 44.5 N/M Investment Security Gains (Losses), net (176.4) (213.7) 37.3 N/M
4,874.0 (82.5) (2) % Total Noninterest Income 1,062.2 984.5 77.7 8 %
2,923.3 4,459.2 153 % Interest Income (FTE)(1) 2,217.6 1,185.6 1,032.0 87 %
990.5 4,352.5 N/M Interest Expense 1,716.5 635.6 1,080.9 170 %
1,932.8 106.7 6 % Net Interest Income (FTE)(1) 501.1 550.0 (48.9) (9) %
6,806.8 24.2 — % Total Revenue (FTE)(1) 1,563.3 1,534.5 28.8 2 %
12.0 12.5 N/M Provision for Credit Losses 11.0 5.0 6.0 N/M
2,248.0 73.8 3 % Compensation 564.0 584.3 (20.3) (3) %
437.4 (32.2) (7) % Employee Benefits 102.0 103.6 (1.6) (2) %
880.3 26.2 3 % Outside Services 235.2 232.9 2.3 1 %
838.8 106.7 13 % Equipment and Software 252.0 229.4 22.6 10 %
219.1 13.2 6 % Occupancy 58.5 65.7 (7.2) (11) %
359.3 113.6 32 % Other Operating Expense 176.8 107.7 69.1 64 %
4,982.9 301.3 6 % Total Noninterest Expense 1,388.5 1,323.6 64.9 5 %
1,811.9 (289.6) (16) % Income before Income Taxes (FTE)(1) 163.8 205.9 (42.1) (20) %
430.3 (72.8) (17) % Provision for Income Taxes 32.7 34.7 (2.0) (6) %
45.6 11.9 26 % Taxable Equivalent Adjustment 18.0 15.5 2.5 16 %
475.9 (60.9) (13) % Total Taxes (FTE)(1) 50.7 50.2 0.5 1 %
1,107.3 $ 1,336.0 (17) % Net Income $ 113.1 $ 155.7 (27) %
41.8 $ 41.8 — % Dividends on Preferred Stock $ 4.7 $ 4.7 — %
11.8 (0.2) (1) % Earnings Allocated to Participating Securities 1.9 2.3 (0.4) (16) %
1,282.4 (228.5) (18) % Earnings Allocated to Common and Potential Common Shares 106.5 148.7 (42.2) (28) %
5.09 $ 6.16 (17) % Earnings Per Share - Basic $ 0.52 $ 0.71 (28) %
5.08 $ 6.14 (17) % Earnings Per Share - Diluted $ 0.52 $ 0.71 (27) %
208,309 Average Basic Shares (000s) 206,170 208,423
208,867 Average Diluted Shares (000s) 206,484 208,894
208,428 End of Period Shares Outstanding (000s) 205,126 208,428

All values are in US Dollars.

Northern Trust Corporation
NET INCOME TRENDS
( in Millions except per share information)
2022 2023
2020 2021 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
$ 2,321.6 $ 2,487.3 $ 2,496.3 $ 2,461.9 Asset Servicing Trust, Investment and Other Servicing Fees $ 662.4 $ 642.7 $ 603.2 $ 588.0 $ 603.0 $ 621.2 $ 626.0 $ 611.7
1,673.4 1,873.8 1,936.3 1,899.9 WM Trust, Investment and Other Servicing Fees 506.0 500.7 475.5 454.1 460.6 475.1 485.9 478.3
3,995.0 4,361.1 4,432.6 4,361.8 Total Fees 1,168.4 1,143.4 1,078.7 1,042.1 1,063.6 1,096.3 1,111.9 1,090.0
290.4 292.6 288.6 203.9 Foreign Exchange Trading Income 80.9 77.6 64.7 65.4 53.0 50.1 51.8 49.0
45.4 44.3 39.3 31.6 Treasury Management Fees 11.1 10.6 9.3 8.3 8.4 7.9 7.5 7.8
133.2 140.2 136.2 135.0 Security Commissions and Trading Income 36.2 32.8 32.1 35.1 34.7 36.1 30.9 33.3
194.0 243.9 191.3 228.7 Other Operating Income 41.1 45.6 57.3 47.3 46.8 55.2 68.2 58.5
(0.4) (0.3) (214.0) (169.5) Investment Security Gains (Losses), net — — (0.3) (213.7) 6.9 — — (176.4)
4,657.6 5,081.8 4,874.0 4,791.5 Total Noninterest Income 1,337.7 1,310.0 1,241.8 984.5 1,213.4 1,245.6 1,270.3 1,062.2
1,477.6 1,418.3 1,932.8 2,039.5 Net Interest Income (FTE)(1) 387.7 469.8 525.3 550.0 544.4 524.6 469.4 501.1
6,135.2 6,500.1 6,806.8 6,831.0 Total Revenue (FTE)(1) 1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 1,739.7 1,563.3
125.0 (81.5) 12.0 24.5 Provision for (Release of) Credit Losses 2.0 4.5 0.5 5.0 15.0 (15.5) 14.0 11.0
1,947.1 2,011.0 2,248.0 2,321.8 Compensation 563.9 546.5 553.3 584.3 595.2 604.5 558.1 564.0
387.7 431.4 437.4 405.2 Employee Benefits 104.3 119.6 109.9 103.6 101.0 101.4 100.8 102.0
763.1 849.4 880.3 906.5 Outside Services 213.4 213.1 220.9 232.9 210.8 230.9 229.6 235.2
673.5 736.3 838.8 945.5 Equipment and Software 193.5 203.5 212.4 229.4 231.7 229.3 232.5 252.0
230.1 208.7 219.1 232.3 Occupancy 51.1 51.0 51.3 65.7 61.3 53.8 58.7 58.5
346.7 299.1 359.3 472.9 Other Operating Expense 79.7 89.9 82.0 107.7 85.6 112.0 98.5 176.8
4,348.2 4,535.9 4,982.9 5,284.2 Total Noninterest Expense 1,205.9 1,223.6 1,229.8 1,323.6 1,285.6 1,331.9 1,278.2 1,388.5
1,662.0 2,045.7 1,811.9 1,522.3 Income before Income Taxes (FTE)(1) 517.5 551.7 536.8 205.9 457.2 453.8 447.5 163.8
418.3 464.8 430.3 357.5 Provision for Income Taxes 121.5 144.4 129.7 34.7 109.4 108.9 106.5 32.7
34.4 35.6 45.6 57.5 Taxable Equivalent Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
452.7 500.4 475.9 415.0 Total Taxes (FTE)(1) 128.2 155.5 142.0 50.2 122.6 122.0 119.7 50.7
$ 1,209.3 $ 1,545.3 $ 1,336.0 $ 1,107.3 Net Income $ 389.3 $ 396.2 $ 394.8 $ 155.7 $ 334.6 $ 331.8 $ 327.8 $ 113.1
$ 5.48 $ 7.16 $ 6.16 $ 5.09 Earnings Per Share - Basic $ 1.78 $ 1.86 $ 1.80 $ 0.71 $ 1.51 $ 1.56 $ 1.49 $ 0.52
5.46 7.14 6.14 5.08 Earnings Per Share - Diluted 1.77 1.86 1.80 0.71 1.51 1.56 1.49 0.52
209,008 208,899 208,867 207,564 Average Diluted Shares (000s) 208,809 208,878 208,889 208,894 208,730 207,816 207,253 206,484
$ 56.2 $ 41.8 $ 41.8 $ 41.8 Preferred Dividends(2) $ 16.2 $ 4.7 $ 16.2 $ 4.7 $ 16.2 $ 4.7 $ 16.2 $ 4.7

All values are in US Dollars.

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
( in Millions)
2022 2023
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 $ 452.7 $ 433.8 $ 407.3 $ 406.3 $ 413.6 $ 427.4 $ 428.1 $ 420.4
511.1 443.5 555.1 528.1 Investment Management 146.9 148.4 136.0 123.8 126.2 134.1 137.1 130.4
88.0 76.7 81.4 83.0 Securities Lending 18.8 21.6 21.7 19.3 19.1 21.5 20.4 22.0
136.4 148.3 159.7 161.3 Other 44.0 38.9 38.2 38.6 44.1 38.2 40.4 38.9
2,211.5 $ 2,321.6 $ 2,487.3 $ 2,496.3 $ 2,461.9 Total Asset Servicing Trust, Investment and Other Servicing Fees $ 662.4 $ 642.7 $ 603.2 $ 588.0 $ 603.0 $ 621.2 $ 626.0 $ 611.7
Wealth Management
619.3 $ 607.3 $ 698.7 $ 692.6 $ 673.8 Central $ 181.7 $ 177.4 $ 171.3 $ 162.2 $ 163.6 $ 166.0 $ 172.3 $ 171.9
442.1 509.3 504.0 491.5 East 134.0 128.1 124.1 117.8 119.8 124.1 126.1 121.5
337.7 380.2 382.1 378.0 West 101.4 98.7 92.5 89.5 91.2 93.7 95.8 97.3
286.3 285.6 357.6 356.6 Global Family Office 88.9 96.5 87.6 84.6 86.0 91.3 91.7 87.6
1,640.6 $ 1,673.4 $ 1,873.8 $ 1,936.3 $ 1,899.9 Total WM Trust, Investment and Other Servicing Fees $ 506.0 $ 500.7 $ 475.5 $ 454.1 $ 460.6 $ 475.1 $ 485.9 $ 478.3

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
( in Millions)
CHANGE (5)
12/31/2023 12/31/2022 %
Federal Reserve and Other Central Bank Deposits $ 34,281.0 $ 39,961.9 (14) %
Interest-Bearing Due from and Deposits with Banks(1) 5,241.4 4,926.6 314.8 6 %
Federal Funds Sold — 32.0 (32.0) (100) %
Securities Purchased under Agreements to Resell 784.7 1,070.3 (285.6) (27) %
Debt Securities:
Available For Sale 23,089.8 26,699.9 (3,610.1) (14) %
Held To Maturity 26,221.7 25,036.1 1,185.6 5 %
Trading Account — 95.2 (95.2) (100) %
Total Debt Securities 49,311.5 51,831.2 (2,519.7) (5) %
Loans 47,617.0 42,893.3 4,723.7 11 %
Other Interest-Earning Assets(2) 3,134.0 1,769.4 1,364.6 77 %
Total Earning Assets 140,369.6 142,484.7 (2,115.1) (1) %
Allowance for Credit Losses (192.3) (161.1) (31.2) 19 %
Cash and Due From Banks and Other Central Bank Deposits(3) 1,534.3 1,737.2 (202.9) (12) %
Buildings and Equipment 502.2 500.5 1.7 — %
Client Security Settlement Receivables 212.6 1,698.3 (1,485.7) (87) %
Goodwill 702.3 691.3 11.0 2 %
Other Assets 7,654.4 8,085.8 (431.4) (5) %
Total Assets $ 150,783.1 $ 155,036.7 (3) %
Savings, Money Market and Other $ 25,252.1 $ 31,128.6 (19) %
Savings Certificates and Other Time 4,109.7 1,981.3 2,128.4 107 %
Non- U.S. Offices - Interest-Bearing 63,971.1 65,481.9 (1,510.8) (2) %
Total Interest-Bearing Deposits 93,332.9 98,591.8 (5,258.9) (5) %
Federal Funds Purchased 3,045.4 1,896.9 1,148.5 61 %
Securities Sold under Agreements to Repurchase 784.7 567.2 217.5 38 %
Other Borrowings(4) 6,567.8 7,592.3 (1,024.5) (13) %
Senior Notes 2,773.2 2,724.2 49.0 2 %
Long-Term Debt 4,065.0 2,066.2 1,998.8 97 %
Total Interest-Related Funds 110,569.0 113,438.6 (2,869.6) (3) %
Demand and Other Noninterest-Bearing Deposits 22,831.1 25,340.3 (2,509.2) (10) %
Other Liabilities 5,485.1 4,998.3 486.8 10 %
Total Liabilities 138,885.2 143,777.2 (4,892.0) (3) %
Common Equity 11,013.0 10,374.6 638.4 6 %
Preferred Equity 884.9 884.9 — — %
Total Stockholders' Equity 11,897.9 11,259.5 638.4 6 %
Total Liabilities and Stockholders' Equity $ 150,783.1 $ 155,036.7 (3) %
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
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.
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.
Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
( in Millions)
2022 2023
2020 2021 2022 2023 Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
18,511 $ 27,904 $ 39,028 $ 36,249 $ 31,205 Federal Reserve and Other Central Bank Deposits $ 45,200 $ 36,691 $ 30,549 $ 32,755 $ 36,642 $ 34,380 $ 28,001 $ 25,951
5,401 5,780 4,193 4,334 Interest-Bearing Due from and Deposits with Banks(2) 4,384 4,228 3,977 4,186 4,199 4,573 4,301 4,262
2 — 6 6 Federal Funds Sold 1 2 5 14 20 3 1 1
1,253 1,067 1,071 951 Securities Purchased under Agreements to Resell 692 1,149 1,271 1,166 1,046 1,239 951 573
Debt Securities:
40,643 38,987 32,060 24,357 Available For Sale 37,496 35,677 28,483 26,742 25,030 24,512 24,431 23,470
14,353 20,617 22,970 25,512 Held To Maturity 21,308 20,244 25,127 25,135 25,382 25,053 25,919 25,685
1 1 12 1 Trading Account 1 — — 46 1 — — —
54,997 59,605 55,042 49,869 Total Debt Securities 58,805 55,921 53,610 51,924 50,414 49,565 50,350 49,155
33,499 37,208 41,031 42,177 Loans and Leases 39,544 40,747 41,466 42,329 41,959 42,365 42,210 42,170
1,077 1,186 1,248 2,259 Other Interest-Earning Assets(3) 1,143 1,163 1,269 1,414 1,678 1,990 2,440 2,913
124,133 143,873 138,839 130,801 Total Earning Assets 149,768 139,902 132,147 133,789 135,957 134,116 128,254 125,025
(178) (173) (154) (173) Allowance for Credit Losses (152) (156) (154) (155) (162) (177) (170) (183)
2,603 2,286 2,070 1,772 Cash and Due From Banks and Other Central Bank Deposits(4) 2,047 2,559 1,903 1,774 1,796 1,843 1,695 1,755
509 503 489 485 Buildings and Equipment 495 488 481 491 497 482 474 486
1,358 1,530 1,722 559 Client Security Settlement Receivables 1,826 1,588 1,667 1,810 1,099 593 350 206
695 707 692 696 Goodwill 704 694 686 686 692 697 699 696
7,691 7,637 8,894 8,509 Other Assets 7,455 9,010 9,673 9,409 8,180 8,346 8,900 8,603
117,551 $ 136,811 $ 156,363 $ 152,552 $ 142,649 Total Assets $ 162,143 $ 154,084 $ 146,402 $ 147,804 $ 148,060 $ 145,900 $ 140,202 $ 136,589
Liabilities and Stockholders' Equity
16,578 $ 23,396 $ 28,339 $ 30,205 $ 24,172 Savings, Money Market and Other $ 32,329 $ 30,968 $ 29,089 $ 28,489 $ 27,269 $ 22,961 $ 22,625 $ 23,889
1,266 887 1,060 3,341 Savings Certificates and Other Time 842 792 986 1,611 2,360 3,036 3,665 4,279
60,486 69,713 65,031 60,009 Non- U.S. Offices - Interest-Bearing 68,200 63,901 64,057 64,024 62,411 62,046 58,681 56,971
85,149 98,940 96,296 87,522 Total Interest-Bearing Deposits 101,371 95,661 94,133 94,123 92,040 88,044 84,971 85,139
981 191 1,408 5,144 Federal Funds Purchased — 923 1,968 2,705 3,654 7,070 5,936 3,906
218 232 434 402 Securities Sold under Agreements to Repurchase 254 597 490 392 347 468 426 365
6,401 5,050 5,464 10,340 Other Borrowings(5) 3,691 4,187 5,991 7,933 11,324 12,133 10,982 6,961
3,234 2,856 2,756 2,734 Senior Notes 2,442 2,885 2,970 2,722 2,748 2,761 2,713 2,714
1,189 1,166 1,259 2,586 Long-Term Debt 1,128 1,096 1,088 1,719 2,066 2,070 2,127 4,064
278 218 — — Floating Rate Capital Debt — — — — — — — —
97,450 108,653 107,616 108,728 Total Interest-Related Funds 108,886 105,348 106,638 109,594 112,179 112,545 107,154 103,148
23,362 31,144 29,296 17,723 Demand and Other Noninterest-Bearing Deposits 37,129 33,733 24,356 22,186 20,146 17,555 16,793 16,450
4,806 4,870 4,558 4,702 Other Liabilities 4,616 4,096 4,473 5,044 4,453 4,351 4,718 5,275
125,618 144,666 141,471 131,152 Total Liabilities 150,632 143,177 135,467 136,824 136,778 134,451 128,665 124,873
10,307 10,812 10,197 10,612 Common Equity 10,626 10,022 10,051 10,095 10,397 10,564 10,652 10,831
886 885 885 885 Preferred Equity 885 885 885 885 885 885 885 885
11,193 11,697 11,081 11,497 Total Stockholders' Equity 11,511 10,907 10,936 10,979 11,282 11,449 11,537 11,716
117,551 $ 136,811 $ 156,363 $ 152,552 $ 142,649 Total Liabilities and Stockholders' Equity $ 162,143 $ 154,084 $ 146,402 $ 147,804 $ 148,060 $ 145,900 $ 140,202 $ 136,589
(1)
(2)
(3)
(4)
(5)

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
2022 2023
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 27.9 % 23.8 % 20.9 % 22.2 % 24.7 % 23.6 % 20.0 % 19.0 %
5.1 3.9 3.7 2.7 3.0 Interest-Bearing Due from and Deposits with Banks(2) 2.7 2.7 2.7 2.8 2.8 3.1 3.1 3.1
— — — — — Federal Funds Sold — — — — — — — —
0.7 0.9 0.7 0.7 0.7 Securities Purchased under Agreements to Resell 0.4 0.7 0.9 0.8 0.7 0.8 0.7 0.4
Debt Securities:
32.3 29.7 24.9 21.0 17.1 Available For Sale 23.1 23.2 19.5 18.1 16.9 16.8 17.4 17.2
9.9 10.5 13.2 15.1 17.9 Held To Maturity 13.1 13.1 17.2 17.0 17.1 17.2 18.5 18.8
— — — — — Trading Account — — — — — — — —
42.3 40.2 38.1 36.1 35.0 Total Debt Securities 36.3 36.3 36.6 35.1 34.0 34.0 35.9 36.0
26.4 24.5 23.8 26.9 29.6 Loans and Leases 24.4 26.4 28.3 28.6 28.3 29.0 30.1 30.9
0.9 0.8 0.8 0.8 1.6 Other Interest-Earning Assets(3) 0.7 0.8 0.9 1.0 1.1 1.4 1.7 2.1
91.1 90.7 92.0 91.0 91.7 Total Earning Assets 92.4 90.8 90.3 90.5 91.8 91.9 91.5 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) (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) 1.3 1.7 1.3 1.2 1.2 1.3 1.2 1.3
0.4 0.4 0.3 0.3 0.3 Buildings and Equipment 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4
0.9 1.0 1.0 1.1 0.4 Client Security Settlement Receivables 1.1 1.0 1.1 1.2 0.7 0.4 0.2 0.2
0.6 0.5 0.5 0.5 0.5 Goodwill 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5
5.1 5.6 4.9 5.8 6.0 Other Assets 4.6 5.8 6.6 6.4 5.5 5.7 6.3 6.3
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Total Assets 100.0 % 100.0 % 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 19.9 % 20.1 % 19.9 % 19.3 % 18.4 % 15.7 % 16.1 % 17.5 %
0.7 0.9 0.6 0.7 2.3 Savings Certificates and Other Time 0.5 0.5 0.7 1.1 1.6 2.1 2.6 3.1
46.7 44.2 44.6 42.6 42.1 Non- U.S. Offices - Interest-Bearing 42.1 41.5 43.8 43.3 42.2 42.5 41.9 41.7
61.5 62.2 63.3 63.1 61.4 Total Interest-Bearing Deposits 62.5 62.1 64.3 63.7 62.2 60.3 60.6 62.3
1.1 0.7 0.1 0.9 3.6 Federal Funds Purchased — 0.6 1.3 1.8 2.5 4.8 4.2 2.9
0.3 0.2 0.1 0.3 0.3 Securities Sold under Agreements to Repurchase 0.2 0.4 0.3 0.3 0.2 0.3 0.3 0.3
6.6 4.7 3.2 3.6 7.2 Other Borrowings(5) 2.3 2.7 4.1 5.4 7.6 8.3 7.8 5.1
2.0 2.4 1.8 1.8 1.9 Senior Notes 1.5 1.9 2.0 1.8 1.9 1.9 1.9 2.0
1.0 0.9 0.7 0.8 1.8 Long-Term Debt 0.7 0.7 0.7 1.2 1.4 1.4 1.5 3.0
0.2 0.2 0.1 — — Floating Rate Capital Debt — — — — — — — —
72.7 71.2 69.5 70.5 76.2 Total Interest-Related Funds 67.2 68.4 72.8 74.1 75.8 77.1 76.4 75.5
14.8 17.1 19.9 19.2 12.4 Demand and Other Noninterest-Bearing Deposits 22.9 21.9 16.6 15.0 13.6 12.0 12.0 12.0
3.4 3.5 3.1 3.0 3.3 Other Liabilities 2.8 2.7 3.1 3.4 3.0 3.0 3.4 3.9
90.9 91.8 92.5 92.7 91.9 Total Liabilities 92.9 92.9 92.5 92.6 92.4 92.2 91.8 91.4
8.3 7.5 6.9 6.7 7.4 Common Equity 6.6 6.5 6.9 6.8 7.0 7.2 7.6 7.9
0.8 0.6 0.6 0.6 0.6 Preferred Equity 0.5 0.6 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 7.1 7.1 7.5 7.4 7.6 7.8 8.2 8.6
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 % 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).
2022 2023
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 0.16 % 0.65 % 1.76 % 3.15 % 4.17 % 4.65 % 4.99 % 5.11 %
1.21 0.41 % 0.16 % 1.11 % 3.00 % Interest-Bearing Due from and Deposits with Banks(2) 0.24 % 0.62 % 1.45 % 2.18 % 2.72 % 2.82 % 3.22 % 3.25 %
2.73 1.37 % 0.41 % 3.22 % 4.92 % Federal Funds Sold 0.45 % 0.75 % 2.79 % 3.91 % 4.79 % 5.25 % 5.62 % 5.63 %
2.10 0.31 % 0.33 % 9.68 % 166.71 % Securities Purchased under Agreements to Resell(5) 0.50 % 2.47 % 9.51 % 22.24 % 48.80 % 92.09 % 193.58 % 492.23 %
Debt Securities:
2.51 1.77 % 1.28 % 1.91 % 4.35 % Available for Sale 1.30 % 1.55 % 2.10 % 3.02 % 3.80 % 4.17 % 4.51 % 4.94 %
0.94 0.59 % 0.80 % 1.26 % 1.87 % Held to Maturity 0.94 % 1.11 % 1.38 % 1.54 % 1.64 % 1.80 % 1.93 % 2.13 %
3.29 3.27 % 1.59 % 3.84 % 13.50 % Trading Account 10.09 % 5.40 % 23.60 % 3.54 % 7.63 % 42.53 % 21.15 % 5.19 %
2.14 1.46 % 1.11 % 1.64 % 3.08 % Total Debt Securities 1.17 % 1.39 % 1.76 % 2.30 % 2.72 % 2.97 % 3.18 % 3.46 %
3.74 2.32 % 1.92 % 3.28 % 6.06 % Loans and Leases 1.97 % 2.53 % 3.64 % 4.86 % 5.60 % 6.06 % 6.26 % 6.32 %
3.56 3.63 % 3.43 % 4.03 % 4.87 % Other Interest-Earning Assets(3) 2.69 % 4.07 % 3.92 % 5.14 % 4.67 % 5.04 % 4.65 % 5.05 %
2.36 1.35 % 1.00 % 2.11 % 5.64 % Total Earning Assets 1.06 % 1.54 % 2.44 % 3.52 % 4.38 % 5.23 % 6.03 % 7.04 %
Interest-Bearing Funds
0.97 0.20 % 0.05 % 0.74 % 2.85 % Savings, Money Market and Other 0.04 % 0.24 % 0.94 % 1.83 % 2.35 % 2.67 % 3.05 % 3.40 %
1.86 1.30 % 0.55 % 1.68 % 4.54 % Savings Certificates and Other Time 0.51 % 0.58 % 1.61 % 2.86 % 3.70 % 4.23 % 4.69 % 5.10 %
0.57 (0.03) % (0.11) % 0.56 % 3.07 % Non- U.S. Offices - Interest-Bearing (0.12) % 0.02 % 0.65 % 1.70 % 2.50 % 2.90 % 3.38 % 3.56 %
0.68 0.06 % (0.06) % 0.63 % 3.07 % Total Interest-Bearing Deposits (0.06) % 0.10 % 0.75 % 1.76 % 2.49 % 2.89 % 3.35 % 3.59 %
2.05 0.22 % (0.19) % 2.43 % 4.99 % Federal Funds Purchased 0.05 % 1.22 % 2.00 % 3.14 % 4.45 % 4.97 % 5.18 % 5.25 %
1.89 0.47 % 0.07 % 20.94 % 383.84 % Securities Sold under Agreements to Repurchase(5) 0.49 % 4.01 % 20.72 % 59.59 % 135.62 % 234.39 % 422.85 % 759.25 %
2.34 0.71 % 0.28 % 2.31 % 5.25 % Other Borrowings(4) 0.35 % 0.80 % 2.36 % 3.95 % 4.83 % 5.17 % 5.59 % 5.49 %
3.04 2.24 % 1.69 % 3.36 % 6.22 % Senior Notes 1.59 % 2.65 % 3.79 % 5.18 % 5.79 % 6.14 % 6.44 % 6.50 %
3.36 2.24 % 1.81 % 3.49 % 5.69 % Long-Term Debt 1.94 % 2.47 % 3.41 % 5.19 % 5.73 % 5.89 % 5.94 % 5.45 %
2.98 1.52 % 0.78 % — % — % Floating Rate Capital Debt — % — % — % — % — % — % — % — %
0.96 0.21 % 0.02 % 0.92 % 4.91 % Total Interest-Related Funds 0.01 % 0.25 % 1.07 % 2.30 % 3.34 % 4.36 % 5.48 % 6.60 %
1.40 1.14 % 0.98 % 1.19 % 0.73 % Net Interest Spread 1.05 % 1.29 % 1.37 % 1.22 % 1.04 % 0.87 % 0.55 % 0.44 %
1.60 1.19 % 0.99 % 1.39 % 1.56 % Net Interest Margin 1.05 % 1.35 % 1.58 % 1.63 % 1.62 % 1.57 % 1.45 % 1.59 %
(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 51.1 billion for the three months ended December 31, 2023. 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 December 31, 2023. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.38% for the three months ended December 31, 2023. See previous filings for impact of netting on prior periods.

All values are in US Dollars.

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
( in Millions)
2022 2023
2019 2020 2021 2022 2023 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
$ 124.4 $ 259.9 $ 184.7 $ 200.9 Beginning Allowance for Credit Losses $ 184.7 $ 189.9 $ 199.9 $ 195.9 $ 200.9 $ 213.0 $ 197.5 $ 211.8
— 13.7 — — — Cumulative Effect Adjustment(1) — — — — — — — —
(14.5) 125.0 (81.5) 12.0 24.5 Provision for (Release of) Credit Losses 2.0 4.5 0.5 5.0 15.0 (15.5) 14.0 11.0
(Charge-offs) Recoveries
(6.5) (9.7) (0.7) (6.0) (8.7) Charge-offs (0.1) — (5.4) (0.5) (4.0) (0.8) (0.8) (3.1)
7.2 6.5 7.0 10.2 3.7 Recoveries 3.3 5.5 0.9 0.5 1.1 0.8 1.1 0.7
0.7 (3.2) 6.3 4.2 (5.0) Net (Charge-offs) Recoveries 3.2 5.5 (4.5) — (2.9) — 0.3 (2.4)
$ 259.9 $ 184.7 $ 200.9 $ 220.4 Ending Allowance for Credit Losses $ 189.9 $ 199.9 $ 195.9 $ 200.9 $ 213.0 $ 197.5 $ 211.8 $ 220.4
Allowance for Credit Losses Assigned to:
$ 190.7 $ 138.4 $ 144.3 $ 178.7 Loans and Leases $ 136.3 $ 138.2 $ 138.7 $ 144.3 $ 159.9 $ 152.5 $ 166.8 $ 178.7
19.9 61.1 34.1 38.5 26.9 Undrawn Loan Commitments and Standby Letters of Credit 37.5 43.5 40.7 38.5 34.3 26.0 28.3 26.9
— 8.1 12.2 18.1 14.8 Debt Securities and Other Financial Assets 16.1 18.2 16.5 18.1 18.8 19.0 16.7 14.8
$ 259.9 $ 184.7 $ 200.9 $ 220.4 Total Allowance for Credit Losses $ 189.9 $ 199.9 $ 195.9 $ 200.9 $ 213.0 $ 197.5 $ 211.8 $ 220.4
$ 33,499 $ 37,208 $ 41,031 $ 42,177 Average Loans and Leases Outstanding $ 39,544 $ 40,747 $ 41,466 $ 42,329 $ 41,959 $ 42,365 $ 42,210 $ 42,170
— % (0.01) % 0.02 % 0.01 % (0.01) % Annualized Loan-Related Net (Charge-offs) Recoveries to 0.03 % 0.05 % (0.04) % — % (0.03) % — % — % (0.02) %
Average Loans and Leases
$ 33,760 $ 40,481 $ 42,893 $ 47,617 End of Period Loans and Leases Outstanding $ 39,239 $ 41,208 $ 43,992 $ 42,893 $ 42,370 $ 43,547 $ 43,577 $ 47,617
0.33 % 0.56 % 0.34 % 0.34 % 0.38 % Allowance for Credit Losses Assigned to Loans 0.35 % 0.34 % 0.32 % 0.34 % 0.38 % 0.35 % 0.38 % 0.38 %
and Leases to Total Loans and Leases
Nonaccrual Assets
$ 131.7 $ 122.3 $ 45.9 $ 63.6 Nonaccrual Loans and Leases $ 100.8 $ 89.7 $ 76.4 $ 45.9 $ 48.9 $ 47.1 $ 68.8 $ 63.6
3.2 0.7 3.0 — 1.5 Other Real Estate Owned (OREO) 0.2 0.1 — — — 0.3 0.3 1.5
$ 132.4 $ 125.3 $ 45.9 $ 65.1 Total Nonaccrual Assets $ 101.0 $ 89.8 $ 76.4 $ 45.9 $ 48.9 $ 47.4 $ 69.1 $ 65.1
0.28 % 0.39 % 0.31 % 0.11 % 0.14 % Nonaccrual Assets to Loans and Leases and OREO 0.26 % 0.22 % 0.17 % 0.11 % 0.12 % 0.11 % 0.16 % 0.14 %
Loans and Leases Allowance to Nonaccrual
1.3x 1.4x 1.1x 3.1x 2.8x Loans and Leases 1.4x 1.5x 1.8x 3.1x 3.3x 3.2x 2.4x 2.8x
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.

All values are in US Dollars.

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
( in Billions)
2022 2023
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 $ 1,091.6 $ 950.0 $ 873.7 $ 898.1 $ 962.1 $ 989.8 $ 963.4 $ 1,032.0
Asset allocation:
551.7 626.6 485.0 563.9 Equities 582.8 479.1 444.1 485.0 515.1 535.4 508.7 563.9
120.1 132.6 107.1 116.2 Fixed Income Securities 122.8 114.8 103.1 107.1 107.3 108.8 109.7 116.2
198.8 236.2 157.7 184.5 Cash and Other Assets 208.8 186.8 164.4 157.7 171.8 176.8 183.0 184.5
186.9 195.6 148.3 167.4 Securities Lending Collateral 177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4
313.8 $ 347.8 $ 416.1 $ 351.4 $ 402.5 Wealth Management $ 396.2 $ 352.8 $ 336.2 $ 351.4 $ 368.3 $ 376.0 $ 369.9 $ 402.5
Asset allocation:
182.0 229.9 186.3 221.6 Equities 218.1 185.0 171.0 186.3 197.0 205.1 197.8 221.6
84.7 83.5 79.4 87.2 Fixed Income Securities 81.6 80.1 79.5 79.4 80.3 79.9 80.5 87.2
81.1 102.7 85.7 93.7 Cash and Other Assets 96.5 87.7 85.7 85.7 91.0 91.0 91.6 93.7
— — — — Securities Lending Collateral — — — — — — — —
1,231.3 $ 1,405.3 $ 1,607.1 $ 1,249.5 $ 1,434.5 Total Assets Under Management $ 1,487.8 $ 1,302.8 $ 1,209.9 $ 1,249.5 $ 1,330.4 $ 1,365.8 $ 1,333.3 $ 1,434.5
Asset allocation:
650.8 $ 733.7 $ 856.5 $ 671.3 $ 785.5 Equities $ 800.9 $ 664.1 $ 615.1 $ 671.3 $ 712.1 $ 740.5 $ 706.5 $ 785.5
204.8 216.1 186.5 203.4 Fixed Income Securities 204.4 194.9 182.6 186.5 187.6 188.7 190.2 203.4
279.9 338.9 243.4 278.2 Cash and Other Assets 305.3 274.5 250.1 243.4 262.8 267.8 274.6 278.2
186.9 195.6 148.3 167.4 Securities Lending Collateral 177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4
Assets Under Custody / Administration
11,311.6 $ 13,653.1 $ 15,183.2 $ 12,705.5 $ 14,362.6 Asset Servicing $ 14,513.0 $ 12,812.2 $ 11,954.0 $ 12,705.5 $ 13,221.5 $ 13,483.5 $ 13,206.2 $ 14,362.6
879.4 1,065.6 898.5 1,042.3 Wealth Management 1,031.1 921.5 868.0 898.5 953.3 995.4 958.5 1,042.3
12,050.4 $ 14,532.5 $ 16,248.8 $ 13,604.0 $ 15,404.9 Total Assets Under Custody / Administration $ 15,544.1 $ 13,733.7 $ 12,822.0 $ 13,604.0 $ 14,174.8 $ 14,478.9 $ 14,164.7 $ 15,404.9
Assets Under Custody
8,497.8 $ 10,387.7 $ 11,554.8 $ 9,712.3 $ 10,882.0 Asset Servicing $ 10,987.5 $ 9,771.2 $ 9,125.5 $ 9,712.3 $ 10,065.6 $ 10,295.7 $ 10,064.4 $ 10,882.0
Asset allocation:
4,751.0 5,404.3 4,312.8 5,028.9 Equities 5,062.5 4,272.7 3,939.7 4,312.8 4,546.1 4,739.3 4,590.7 5,028.9
3,742.6 3,997.5 3,252.1 3,600.4 Fixed Income Securities 3,768.9 3,378.8 3,157.1 3,252.1 3,366.8 3,394.2 3,316.7 3,600.4
1,707.2 1,957.4 1,999.1 2,085.3 Cash and Other Assets 1,978.9 1,950.4 1,866.6 1,999.1 1,984.8 1,993.4 1,995.0 2,085.3
186.9 195.6 148.3 167.4 Securities Lending Collateral 177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4
735.7 $ 875.1 $ 1,057.5 $ 892.3 $ 1,034.5 Wealth Management $ 1,022.9 $ 913.0 $ 860.8 $ 892.3 $ 947.6 $ 989.1 $ 951.0 $ 1,034.5
Asset allocation:
542.9 644.8 497.9 623.6 Equities 615.2 512.8 469.3 497.9 545.0 589.4 550.7 623.6
128.3 142.1 134.0 136.7 Fixed Income Securities 140.5 135.0 131.6 134.0 134.6 130.5 128.3 136.7
203.9 270.6 260.4 274.2 Cash and Other Assets 267.2 265.2 259.9 260.4 268.0 269.2 272.0 274.2
— — — — Securities Lending Collateral — — — — — — — —
9,233.5 $ 11,262.8 $ 12,612.3 $ 10,604.6 $ 11,916.5 Total Assets Under Custody $ 12,010.4 $ 10,684.2 $ 9,986.3 $ 10,604.6 $ 11,013.2 $ 11,284.8 $ 11,015.4 $ 11,916.5
Asset allocation:
4,298.6 $ 5,293.9 $ 6,049.1 $ 4,810.7 $ 5,652.5 Equities $ 5,677.7 $ 4,785.5 $ 4,409.0 $ 4,810.7 $ 5,091.1 $ 5,328.7 $ 5,141.4 $ 5,652.5
3,870.9 4,139.6 3,386.1 3,737.1 Fixed Income Securities 3,909.4 3,513.8 3,288.7 3,386.1 3,501.4 3,524.7 3,445.0 3,737.1
1,911.1 2,228.0 2,259.5 2,359.5 Cash and Other Assets 2,246.1 2,215.6 2,126.5 2,259.5 2,252.8 2,262.6 2,267.0 2,359.5
186.9 195.6 148.3 167.4 Securities Lending Collateral 177.2 169.3 162.1 148.3 167.9 168.8 162.0 167.4
Memo
94.2 $ 114.0 $ 144.9 $ 119.9 $ 144.3 WM Global Family Office AUM $ 136.6 $ 121.9 $ 117.1 $ 119.9 $ 126.2 $ 128.5 $ 128.9 $ 144.3
600.7 742.6 614.9 728.0 WM Global Family Office AUC 720.8 642.2 598.4 614.9 660.0 694.0 663.5 728.0

All values are in US Dollars.

Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
( in Millions)
2022 2023
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 $ 383.5 $ 524.8 $ 799.3 $ 1,170.1 $ 1,455.4 $ 1,735.0 $ 1,935.0 $ 2,199.6
34.4 35.6 45.6 57.5 Add: FTE Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
1,677.9 1,442.1 2,923.3 7,382.5 Interest Income (FTE) - Non-GAAP 390.2 535.9 811.6 1,185.6 1,468.6 1,748.1 1,948.2 2,217.6
1,443.2 1,382.7 1,887.2 1,982.0 Net Interest Income - GAAP 381.0 458.7 513.0 534.5 531.2 511.5 456.2 483.1
34.4 35.6 45.6 57.5 Add: FTE Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
1,477.6 1,418.3 1,932.8 2,039.5 Net Interest Income (FTE) - Non-GAAP 387.7 469.8 525.3 550.0 544.4 524.6 469.4 501.1
6,100.8 6,464.5 6,761.2 6,773.5 Total Revenue - GAAP 1,718.7 1,768.7 1,754.8 1,519.0 1,744.6 1,757.1 1,726.5 1,545.3
34.4 35.6 45.6 57.5 Add: FTE Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
6,135.2 6,500.1 6,806.8 6,831.0 Total Revenue (FTE) - Non-GAAP 1,725.4 1,779.8 1,767.1 1,534.5 1,757.8 1,770.2 1,739.7 1,563.3
1,627.6 2,010.1 1,766.3 1,464.8 Income before Income Taxes - GAAP 510.8 540.6 524.5 190.4 444.0 440.7 434.3 145.8
34.4 35.6 45.6 57.5 Add: FTE Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
1,662.0 2,045.7 1,811.9 1,522.3 Income before Income Taxes (FTE) - Non-GAAP 517.5 551.7 536.8 205.9 457.2 453.8 447.5 163.8
418.3 464.8 430.3 357.5 Provision for Income Taxes - GAAP 121.5 144.4 129.7 34.7 109.4 108.9 106.5 32.7
34.4 35.6 45.6 57.5 Add: FTE Adjustment 6.7 11.1 12.3 15.5 13.2 13.1 13.2 18.0
452.7 500.4 475.9 415.0 Provision for Income Taxes (FTE) - Non-GAAP 128.2 155.5 142.0 50.2 122.6 122.0 119.7 50.7

All values are in US Dollars.

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. <br><br>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.
2022 2023
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) 29.7 % 30.6 % 29.9 % 12.5 % 25.4 % 25.1 % 25.2 % 9.4 %
32.4 % 27.1 % 31.5 % 26.6 % 22.3 % Profit Margin (pre-tax) (FTE) - Non-GAAP (1) 30.0 % 31.0 % 30.4 % 13.4 % 26.0 % 25.6 % 25.7 % 10.5 %
24.6 % 19.8 % 23.9 % 19.8 % 16.3 % Profit Margin (after-tax) - GAAP (2) 22.7 % 22.4 % 22.5 % 10.2 % 19.2 % 18.9 % 19.0 % 7.3 %
24.4 % 19.7 % 23.8 % 19.6 % 16.2 % Profit Margin (after-tax) (FTE) - Non-GAAP (2) 22.6 % 22.3 % 22.3 % 10.1 % 19.0 % 18.7 % 18.8 % 7.2 %
23.2 % 25.7 % 23.1 % 24.4 % 24.4 % Effective Tax Rate - GAAP (3) 23.8 % 26.7 % 24.7 % 18.2 % 24.6 % 24.7 % 24.5 % 22.4 %
24.5 % 27.2 % 24.5 % 26.3 % 27.3 % Effective Tax Rate (FTE) - Non-GAAP (3) 24.8 % 28.2 % 26.4 % 24.4 % 26.8 % 26.9 % 26.8 % 30.9 %
72.4 % 76.3 % 78.6 % 72.1 % 70.7 % Noninterest Income to Total Revenue - GAAP (4) 77.8 % 74.1 % 70.8 % 64.8 % 69.5 % 70.9 % 73.6 % 68.7 %
72.0 % 75.9 % 78.2 % 71.6 % 70.1 % Noninterest Income to Total Revenue (FTE) - Non-GAAP (4) 77.5 % 73.6 % 70.3 % 64.2 % 69.0 % 70.4 % 73.0 % 67.9 %
63.4 % 65.5 % 67.5 % 65.6 % 64.4 % Trust Fees to Total Revenue - GAAP (5) 68.0 % 64.6 % 61.5 % 68.6 % 61.0 % 62.4 % 64.4 % 70.5 %
63.1 % 65.1 % 67.1 % 65.1 % 63.9 % Trust Fees to Total Revenue (FTE) - Non-GAAP (5) 67.7 % 64.2 % 61.0 % 67.9 % 60.5 % 61.9 % 63.9 % 69.7 %
1.37 % 1.11 % 0.96 % 1.15 % 0.69 % Net Interest Spread - GAAP (6) 1.03 % 1.25 % 1.33 % 1.17 % 1.00 % 0.83 % 0.51 % 0.38 %
1.40 % 1.14 % 0.98 % 1.19 % 0.73 % Net Interest Spread (FTE) - Non-GAAP (6) 1.05 % 1.29 % 1.37 % 1.22 % 1.04 % 0.87 % 0.55 % 0.44 %
1.57 % 1.16 % 0.96 % 1.36 % 1.52 % Net Interest Margin - GAAP (7) 1.03 % 1.31 % 1.54 % 1.58 % 1.58 % 1.53 % 1.41 % 1.53 %
1.60 % 1.19 % 0.99 % 1.39 % 1.56 % Net Interest Margin (FTE) - Non-GAAP (7) 1.05 % 1.35 % 1.58 % 1.63 % 1.62 % 1.57 % 1.45 % 1.59 %
(1) Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
(2) Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
(3) Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
(4) Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
(5) Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
(6) Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
(7) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.

12

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