ntrs-20221019
0000073124false00000731242022-10-192022-10-190000073124us-gaap:CommonStockMember2022-10-192022-10-190000073124ntrs:DepositarySharesMember2022-10-192022-10-19

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

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

Date of Report (Date of earliest event reported) October 19, 2022

NORTHERN TRUST CORPORATION

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

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

Emerging growth company ☐

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


Item 2.02.    Results of Operations and Financial Condition

The information contained in the registrant’s October 19, 2022 press release, reporting on the registrant’s earnings for the three and nine months ended September 30, 2022, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On October 19, 2022, the Corporation will hold a live conference call and webcast to discuss financial results for the three and nine months ended September 30, 2022 and other matters relating to the Corporation. In connection therewith, the Corporation has also made available on its website presentation materials containing certain information relating to the Corporation (the “Presentation Materials”) and materials that contain additional information about the Corporation’s financial results for the three and nine months ended September 30, 2022 (the “Financial Trends”), copies of which are attached as Exhibits 99.2 and 99.3 hereto, and are incorporated herein by reference.

Item 9.01.    Financial Statements and Exhibits

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

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


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
NORTHERN TRUST CORPORATION
(Registrant)
Dated:October 19, 2022By:/s/ Jason J. Tyler
Jason J. Tyler
Executive Vice President and Chief Financial Officer

Exhibit 99.1
NEWS RELEASE
ntrs_logoxwhite.jpg
www.northerntrust.com
INVESTOR CONTACT: Jennifer Childe | 312-444-3290 | [email protected] MEDIA CONTACT: Doug Holt | 312-557-1571 | [email protected]



NORTHERN TRUST CORPORATION REPORTS THIRD QUARTER
NET INCOME OF $394.8 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $1.80
Total Revenue
up 7% YoY
Return on Average Common Equity 14.9%
Common Equity Tier 1 Capital 10.1%
CHICAGO, OCTOBER 19, 2022 — Northern Trust Corporation today reported third quarter net income per diluted common share of $1.80, compared to $1.86 in the second quarter of 2022 and $1.80 in the third quarter of 2021. Net income was $394.8 million, compared to $396.2 million in the prior quarter and $395.7 million in the prior-year quarter.
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
“Northern Trust’s third quarter results reflected consistent execution in the face of challenging macroeconomic and market conditions. Revenue grew 7% compared to last year, as the elimination of money market fee waivers and the favorable impact from higher interest rates more than offset market and currency-related declines in trust fees. Expenses increased 9% due to higher head count and continued inflationary cost pressures. We approach the end of the year on solid footing and remain focused on serving the needs of our clients and the communities of which we are a part, while generating value for our shareholders.”
FINANCIAL SUMMARY & KEY METRICS
% Change Q3 2022 vs.
($ In Millions except per share data)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Trust, Investment and Other Servicing Fees$1,078.7 $1,143.4 $1,111.0 (6)%(3)%
Other Noninterest Income163.1 166.6 176.4 (2)(8)
Net Interest Income (FTE*)525.3 469.8 357.1 12 47 
Total Revenue (FTE*)$1,767.1 $1,779.8 $1,644.5 (1)%7 %
Noninterest Expense$1,229.8 $1,223.6 $1,128.7 1 %9 %
Provision for Credit Losses0.5 4.5 (13.0)N/MN/M
Provision for Income Taxes129.7 144.4 122.4 (10)6 
FTE Adjustment*12.3 11.1 10.7 9 15 
Net Income$394.8 $396.2 $395.7 — %— %
Earnings Allocated to Common and
Potential Common Shares		$375.4 $388.3 $376.5 (3)%— %
Diluted Earnings per Common Share$1.80 $1.86 $1.80 (3)%— %
Return on Average Common Equity14.9 %15.7 %13.7 %
Return on Average Assets1.07 %1.03 %1.00 %
Average Assets$146,402.2 $154,084.1 $156,452.8 (5)%(6)%
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 THIRD QUARTER 2022 RESULTS
ACCOUNTING RECLASSIFICATION
Beginning in the first quarter of 2022, Trust, Investment and Other Servicing fees were impacted by the change in classification of certain fees that were previously recorded in Other Operating Income or as a reduction of Other Operating Expense but resulted in no impact to net income. The accounting reclassification increased Trust, Investment and Other Servicing fees in the third quarter of 2022 by $15.6 million, with a $6.2 million decrease in Other Operating Income and a $9.4 million increase in Other Operating Expense. The classification changes are deemed to be a better representation of the underlying nature of the business as they are directly tied to client asset levels and the related services are more akin to our core service offerings. Prior-year amounts have not been reclassified.
CLIENT ASSETS
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income.
As of
% Change September 30, 2022 vs.
($ In Billions)September 30, 2022*June 30, 2022September 30, 2021June 30, 2022September 30, 2021
Assets Under Custody/Administration
Asset Servicing$11,954.0 $12,812.2 $14,800.2 (7)%(19)%
   Wealth Management868.0 921.5 976.0 (6)(11)
     Total Assets Under Custody/Administration$12,822.0 $13,733.7 $15,776.2 (7)%(19)%
Assets Under Custody(1)
Asset Servicing$9,125.5 $9,771.2 $11,283.6 (7)%(19)%
   Wealth Management860.8 913.0 962.9 (6)(11)
     Total Assets Under Custody$9,986.3 $10,684.2 $12,246.5 (7)%(18)%
Assets Under Management
Asset Servicing$873.7 $950.0 $1,159.5 (8)%(25)%
   Wealth Management336.2 352.8 372.9 (5)(10)
     Total Assets Under Management$1,209.9 $1,302.8 $1,532.4 (7)%(21)%
(1) Assets Under Custody are a component of Assets Under Custody/Administration.
(*) Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
TRUST, INVESTMENT AND OTHER SERVICING FEES
% Change Q3 2022 vs.
($ In Millions)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration$407.3 $433.8 $460.2 (6)%(12)%
Investment Management136.0 148.4 113.6 (8)20 
Securities Lending21.7 21.6 20.2 1 8 
Other38.2 38.9 36.2 (2)6 
Total Asset Servicing$603.2 $642.7 $630.2 (6)%(4)%
Wealth Management Trust, Investment and Other Servicing Fees
Central$171.3 $177.4 $178.8 (3)%(4)%
East124.1 128.1 130.2 (3)(5)
West92.5 98.7 97.0 (6)(5)
Global Family Office (GFO)87.6 96.5 74.8 (9)17 
Total Wealth Management$475.5 $500.7 $480.8 (5)%(1)%
Total Consolidated Trust, Investment and Other Servicing Fees$1,078.7 $1,143.4 $1,111.0 (6)%(3)%
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 from the prior-year quarter.
▪Custody and fund administration fees decreased sequentially primarily due to unfavorable markets, unfavorable currency translation and lower transaction volumes. Custody and fund administration fees decreased from the prior-year quarter primarily due to unfavorable currency translation and unfavorable markets, partially offset by new business.
▪Investment management fees decreased sequentially primarily due to unfavorable markets and asset outflows. Investment management fees increased from the prior-year quarter primarily due to lower money market fund fee waivers and the accounting reclassification previously discussed, partially offset by asset outflows and unfavorable markets.

2
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
Total Wealth Management trust, investment and other servicing fees decreased sequentially and from the prior-year quarter.
•Fees in the regions (Central, East and West) decreased sequentially primarily due to unfavorable markets. Fees in the regions decreased from the prior-year quarter primarily due to unfavorable markets, partially offset by lower money market fund fee waivers.
•Fees in GFO decreased sequentially primarily due to unfavorable markets. Fees in GFO increased from the prior-year quarter primarily due to lower money market fund fee waivers and new business, partially offset by unfavorable markets.
OTHER NONINTEREST INCOME
% Change Q3 2022 vs.
($ In Millions)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Other Noninterest Income
     Foreign Exchange Trading Income$64.7 $77.6 $66.4 (17)%(3)%
     Treasury Management Fees9.3 10.6 11.2 (13)(18)
     Security Commissions and Trading Income32.1 32.8 36.5 (2)(12)
     Other Operating Income57.3 45.6 62.3 26 (8)
     Investment Security Gains (Losses), net(0.3)— — N/MN/M
Total Other Noninterest Income$163.1 $166.6 $176.4 (2)%(8)%
N/M - Not meaningful
Foreign exchange trading income decreased sequentially primarily driven by lower client volumes and decreased foreign exchange swap activity in Treasury.
Security commissions and trading income decreased compared to the prior-year quarter primarily due to lower interest rate swap activity.
Other operating income increased sequentially primarily due to lower expenses related to existing swap agreements related to Visa Inc. Class B common shares and favorable impacts of currency remeasurement. Other operating income decreased compared to the prior-year quarter primarily driven by lower miscellaneous income and the accounting reclassification previously discussed, partially offset by increased income related to a bank-owned life insurance program.
NET INTEREST INCOME
% Change Q3 2022 vs.
($ In Millions)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Net Interest Income
     Interest Income (FTE*)$811.6 $535.9 $362.0 51 %124 %
     Interest Expense286.3 66.1 4.9 N/MN/M
Net Interest Income (FTE*)$525.3 $469.8 $357.1 12 %47 %
Average Earning Assets$132,147 $139,902 $143,953 (6)%(8)%
Net Interest Margin (FTE*)1.58 %1.35 %0.98 %23 bps60 bps
(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-generally accepted accounting principle financial measures that facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
bps - basis points
Net interest income on an FTE basis increased sequentially and from the prior-year quarter primarily due to a higher net interest margin, partially offset by lower average earning assets.
The net interest margin on an FTE basis increased sequentially primarily due to higher average interest rates. The net interest margin on an FTE basis increased from the prior-year quarter primarily due to higher average interest rates and favorable balance sheet mix shift.
Average earning assets decreased sequentially and from the prior-year quarter due to lower levels of short-term interest-bearing deposits with banks and lower levels of securities, partially offset by higher levels of loans. The decline in the size of the average balance sheet was primarily the result of lower levels of client deposits.
3
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
PROVISION FOR CREDIT LOSSES
As of and for the three-months ended,
% Change September 30, 2022 vs.
($ In Millions)September 30, 2022June 30, 2022September 30, 2021June 30, 2022September 30, 2021
Allowance for Credit Losses
Beginning Allowance for Credit Losses$199.9 $189.9 $207.0 5 %(3)%
Provision for Credit Losses0.5 4.5 (13.0)N/MN/M
Net Recoveries (Charge-Offs) (4.5)5.5 1.1 N/MN/M
Ending Allowance for Credit Losses$195.9 $199.9 $195.1 (2)%— %
Allowance assigned to:
Loans and Leases$138.7 $138.2 $143.9 — %(4)%
Undrawn Loan Commitments and
Standby Letters of Credit		40.7 43.5 39.8 (7)2 
Debt Securities and Other Financial Assets16.5 18.2 11.4 (9)44 
Ending Allowance for Credit Losses$195.9 $199.9 $195.1 (2)%— %
N/M - Not meaningful
Q3 2022
The provision in the current quarter was primarily due to an increase in the collective basis reserve, driven by a weaker macroeconomic outlook, partially offset by improvements in credit quality mainly within the commercial and institutional portfolio. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics.
Q2 2022
The provision in the prior quarter was primarily due to an increase in the reserve evaluated on a collective basis, partially offset by recoveries in the prior quarter. The increase in the collective basis reserve was primarily driven by a projected decline in economic conditions at the time as compared to the previous period, partially offset by improvements in credit quality mainly within the commercial real estate and commercial and institutional portfolios.
Q3 2021
The release of credit reserves in the prior-year quarter was primarily due to a decrease in the reserve evaluated on a collective basis, driven by improvements in projected economic conditions at the time and portfolio credit quality, partially offset by portfolio growth. Decreases in the collective basis reserve were primarily in the commercial and institutional and commercial real estate portfolios.
4
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
NONINTEREST EXPENSE
% Change Q3 2022 vs.
($ In Millions)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Noninterest Expense
Compensation$553.3 $546.5 $496.0 1 %12 %
Employee Benefits109.9 119.6 101.7 (8)8 
Outside Services220.9 213.1 210.7 4 5 
Equipment and Software212.4 203.5 185.2 4 15 
Occupancy51.3 51.0 53.9 1 (5)
Other Operating Expense82.0 89.9 81.2 (9)1 
Total Noninterest Expense$1,229.8 $1,223.6 $1,128.7 1 %9 %
End of Period Full-Time Equivalent Staff23,100 22,500 20,800 3 %11 %
Compensation expense increased sequentially primarily due to higher salary expense, partially offset by lower incentives and favorable currency translation. Compensation expense increased compared to the prior-year quarter primarily due to higher salary expense, partially offset by favorable currency translation.
Employee benefits expense decreased sequentially primarily due to a decline in pension-related expense, inclusive of a $17.0 million pension settlement charge in the current quarter as compared to a $20.3 million charge in the prior quarter. Employee benefits expense increased compared to the prior-year quarter primarily due to a higher pension settlement charge in the current quarter as compared to the prior-year quarter.
Outside services expense increased sequentially primarily due to higher technical services costs and consulting services. Outside services expense increased compared to the prior-year quarter primarily due to higher consulting services and technical services costs, partially offset by lower third-party advisory fees.
Equipment and software expense increased sequentially primarily due to higher software amortization costs. Equipment and software expense increased compared to the prior-year quarter primarily due to higher software costs driven by continued technology investments as well as amortization.
Other operating expense decreased sequentially primarily due to lower miscellaneous expenses.

PROVISION FOR INCOME TAX
% Change Q3 2022 vs.
($ In Millions)Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Net Income
Income before Income Taxes$524.5 $540.6 $518.1 (3)%1 %
Provision for Income Taxes129.7 144.4 122.4 (10)6 
Net Income$394.8 $396.2 $395.7 — %— %
Effective Tax Rate24.7 %26.7 %23.6 %(197)bps113 bps
bps - basis points
The effective tax rate decreased sequentially primarily due to reserves for uncertain tax positions recognized in the prior quarter. The effective tax rate increased compared to the prior-year quarter primarily due to an increased impact of limitations on the U.S. foreign tax credit.
5
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
CAPITAL ACTIONS
The Corporation returned approximately $159.5 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 $158.4 million to common stockholders and increased its quarterly cash dividend to $0.75 per share on common stock from the previous $0.70 per share. The Corporation repurchased 11,080 shares of common stock, all of which were withheld related to share-based compensation, at a total cost of $1.1 million ($96.43 average price per share). The Corporation also declared cash dividends totaling $16.2 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 September 30, 2022, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.
An increase in accumulated other comprehensive loss, which was primarily due to an increase in net unrealized losses on the available for sale debt securities portfolio largely from higher interest rates, contributed to the current quarter’s change in capital ratios from the prior quarter.
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.

September 30, 2022*June 30, 2022September 30, 2021
Capital Ratios -
Northern Trust Corporation		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital10.1 %11.4 %10.5 %11.6 %11.9 %13.0 %N/A4.5 %
Tier 1 Capital11.1 12.5 11.5 12.7 12.9 14.1 6.06.0 
Total Capital12.2 13.5 12.6 13.7 14.3 15.4 10.08.0 
Tier 1 Leverage7.0 7.0 6.7 6.7 7.1 7.1 N/A4.0 
Supplementary LeverageN/A7.7 N/A7.6 N/A8.4 N/A3.0 
September 30, 2022*June 30, 2022September 30, 2021
Capital Ratios -
The Northern Trust Company		Standardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachStandardized ApproachAdvanced ApproachWell-Capitalized RatiosMinimum Capital Ratios
Common Equity Tier 1 Capital10.7 %12.2 %11.0 %12.3 %12.5 %13.8 %6.5 %4.5 %
Tier 1 Capital10.7 12.2 11.0 12.3 12.5 13.8 8.0 6.0 
Total Capital11.6 13.0 11.9 13.1 13.7 14.9 10.0 8.0 
Tier 1 Leverage6.7 6.7 6.3 6.3 6.8 6.8 5.0 4.0 
Supplementary LeverageN/A7.4 N/A7.2 N/A8.1 3.0 3.0 
(*) Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
6
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
The following table presents a reconciliation of interest income, net interest income, net interest margin, and total revenue prepared in accordance with generally accepted accounting principles to such measures on an FTE basis, which are non-generally accepted accounting financial measures. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income.
QUARTERS
20222021
($ in Millions)THIRDSECONDFIRSTFOURTHTHIRD
Net Interest Income
Interest Income - GAAP$799.3 $524.8 $383.5 $362.2 $351.3 
Add: FTE Adjustment12.3 11.1 6.7 10.0 10.7 
Interest Income (FTE) - Non-GAAP$811.6 $535.9 $390.2 $372.2 $362.0 
Net Interest Income - GAAP$513.0 $458.7 $381.0 $360.6 $346.4 
Add: FTE Adjustment12.3 11.1 6.7 10.0 10.7 
Net Interest Income (FTE) - Non-GAAP$525.3 $469.8 $387.7 $370.6 $357.1 
Net Interest Margin - GAAP1.54 %1.31 %1.03 %0.96 %0.95 %
Net Interest Margin (FTE) - Non-GAAP1.58 %1.35 %1.05 %0.99 %0.98 %
Total Revenue
Total Revenue - GAAP$1,754.8 $1,768.7 $1,718.7 $1,667.0 $1,633.8 
Add: FTE Adjustment12.3 11.1 6.7 10.0 10.7 
Total Revenue (FTE) - Non-GAAP$1,767.1 $1,779.8 $1,725.4 $1,677.0 $1,644.5 

7
NORTHERN TRUST CORPORATION THIRD QUARTER 2022 RESULTS
FORWARD LOOKING STATEMENTS
This release may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. 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 THIRD QUARTER EARNINGS CONFERENCE CALL
Northern Trust’s third quarter earnings conference call will be webcast on October 19, 2022.
The live call will be conducted at 9:00 a.m. CT and is accessible on Northern Trust’s website at:
https://www.northerntrust.com/about-us/investor-relations
A recording of the live call will be available on Northern Trust’s website following the live event, for approximately four weeks. Participants will need Windows Media or Adobe Flash software. This earnings release can also be accessed at Northern Trust’s website.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 25 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2022, Northern Trust had assets under custody/administration of US$12.8 trillion, and assets under management of US$1.2 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Twitter @NorthernTrust or Northern Trust Corporation on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

8
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA 
% Change(1)
($ In Millions Except Per Share Data)
 Q3 2022 vs.
Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Noninterest Income
     Trust, Investment and Other Servicing Fees$1,078.7 $1,143.4 $1,111.0 (6)%(3)%
     Foreign Exchange Trading Income64.7 77.6 66.4 (17)(3)
     Treasury Management Fees9.3 10.6 11.2 (13)(18)
     Security Commissions and Trading Income32.1 32.8 36.5 (2)(12)
     Other Operating Income57.3 45.6 62.3 26 (8)
     Investment Security Gains (Losses), net(0.3)— — N/MN/M
Total Noninterest Income1,241.8 1,310.0 1,287.4 (5)(4)
Net Interest Income
      Interest Income799.3 524.8 351.3 52 128 
      Interest Expense286.3 66.1 4.9 N/MN/M
Net Interest Income513.0 458.7 346.4 12 48 
Total Revenue1,754.8 1,768.7 1,633.8 (1)7 
Provision for Credit Losses0.5 4.5 (13.0)N/MN/M
Noninterest Expense
     Compensation553.3 546.5 496.0 1 12 
     Employee Benefits109.9 119.6 101.7 (8)8 
     Outside Services220.9 213.1 210.7 4 5 
     Equipment and Software212.4 203.5 185.2 4 15 
     Occupancy51.3 51.0 53.9 1 (5)
     Other Operating Expense82.0 89.9 81.2 (9)1 
Total Noninterest Expense1,229.8 1,223.6 1,128.7 1 9 
Income before Income Taxes524.5 540.6 518.1 (3)1 
Provision for Income Taxes129.7 144.4 122.4 (10)6 
NET INCOME$394.8 $396.2 $395.7 — %— %
Preferred Stock Dividends16.2 4.7 16.2 N/M—
NET INCOME APPLICABLE TO COMMON STOCK$378.6 $391.5 $379.5 (3)%— %
Earnings Allocated to Participating Securities3.2 3.2 3.0 (1)8 
Earnings Allocated to Common and Potential Common Shares$375.4 $388.3 $376.5 (3)%— %
Per Common Share
Net Income
     Basic$1.80 $1.86 $1.81 (3)%— %
     Diluted1.80 1.86 1.80 (3)— 
Average Common Equity$10,050.7 $10,022.1 $10,968.0 — %(8)%
Return on Average Common Equity14.9 %15.7 %13.7 %
Return on Average Assets1.07 %1.03 %1.00 %
Cash Dividends Declared per Common Share$0.75 $0.70 $0.70 7 %7 %
Average Common Shares Outstanding (000s)
     Basic208,400 208,384208,116
     Diluted208,889 208,878208,923
Common Shares Outstanding (EOP) (000s)208,416 208,387207,661
(1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
9
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA
($ In Millions Except Per Share Data)NINE MONTHS
20222021
% Change(1)
Noninterest Income
     Trust, Investment and Other Servicing Fees$3,390.5 $3,250.1 4 %
     Foreign Exchange Trading Income223.2 215.7 3 
     Treasury Management Fees31.0 33.7 (8)
     Security Commissions and Trading Income101.1 104.3 (3)
     Other Operating Income144.0 171.6 (16)
     Investment Security Gains (Losses), net(0.3)— N/M
Total Noninterest Income3,889.5 3,775.4 3 
Net Interest Income
       Interest Income1,707.6 1,044.3 64 
       Interest Expense354.9 22.2 N/M
Net Interest Income1,352.7 1,022.1 32 
Total Revenue5,242.2 4,797.5 9 
Provision for Credit Losses7.0 (70.0)N/M
Noninterest Expense
     Compensation1,663.7 1,500.8 11 
     Employee Benefits333.8 323.5 3 
     Outside Services647.4 625.2 4 
     Equipment and Software609.4 540.2 13 
     Occupancy153.4 156.9 (2)
     Other Operating Expense251.6 220.4 14 
Total Noninterest Expense3,659.3 3,367.0 9 
Income before Income Taxes1,575.9 1,500.5 5 
Provision for Income Taxes395.6 361.6 9 
NET INCOME$1,180.3 $1,138.9 4 %
Preferred Stock Dividends
37.1 37.1 — 
NET INCOME APPLICABLE TO COMMON STOCK$1,143.2 $1,101.8 4 %
Earnings Allocated to Participating Securities9.5 9.9 (3)
Earnings Allocated to Common and Potential Common Shares$1,133.7 $1,091.9 4 %
Per Common Share
Net Income
     Basic$5.44 $5.24 4 %
     Diluted5.43 5.22 4 
Average Common Equity$10,231.0 $10,763.4 (5)%
Return on Average Common Equity14.9 %13.7 %
Return on Average Assets1.02 %0.98 %
Cash Dividends Declared per Common Share$2.15 $2.10 2 %
Average Common Shares Outstanding (000s)
     Basic208,271 208,199 
     Diluted208,859 209,003 
Common Shares Outstanding (EOP) (000s)208,416 207,661 
(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
N/M - Not meaningful
EOP - End of period
10
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
($ In Millions) 
% Change(1)
September 30, 2022 vs.
September 30, 2022June 30, 2022September 30, 2021June 30, 2022September 30, 2021
Assets
Federal Reserve and Other Central Bank Deposits and Other(2)
$39,635.8 $37,948.3 $49,960.3 4 %(21)%
Interest-Bearing Due from and Deposits with Banks(3)
4,097.4 5,354.6 5,338.6 (23)(23)
Federal Funds Sold30.1 10.0 — N/MN/M
Securities Purchased under Agreements to Resell1,166.2 1,171.8 872.8 — 34 
Securities
       U.S. Government2,601.9 2,645.3 2,661.1 (2)(2)
       Obligations of States and Political Subdivisions3,396.4 3,453.3 3,751.2 (2)(9)
       Government Sponsored Agency21,525.7 22,219.8 24,750.5 (3)(13)
       Other(4)
26,293.1 28,173.8 29,106.3 (7)(10)
Total Securities53,817.1 56,492.2 60,269.1 (5)(11)
Loans and Leases43,991.9 41,207.8 39,456.6 7 11 
Total Earning Assets142,738.5 142,184.7 155,897.4 — (8)
Allowance for Credit Losses(154.4)(154.7)(155.3)— (1)
Cash and Due from Banks and Other Central Bank Deposits(5)
2,000.3 2,357.6 1,875.2 (15)7 
Buildings and Equipment469.2 476.6 493.6 (2)(5)
Client Security Settlement Receivables3,077.3 2,284.7 1,954.3 35 57 
Goodwill679.0 690.0 705.5 (2)(4)
Other Assets11,029.7 9,947.4 8,315.0 11 33 
Total Assets$159,839.6 $157,786.3 $169,085.7 1 %(5)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$30,968.5 $30,857.0 $30,580.4 — %1 %
       Savings Certificates and Other Time1,217.1 785.0 882.1 55 38 
       Non-U.S. Offices - Interest-Bearing68,503.7 69,951.1 68,192.8 (2)— 
Total Interest-Bearing Deposits100,689.3 101,593.1 99,655.3 (1)1 
Federal Funds Purchased4,364.8 389.2 0.2 N/MN/M
Securities Sold under Agreements to Repurchase561.4 799.4 573.6 (30)(2)
Other Borrowings7,153.6 3,514.9 5,617.4 104 27 
Senior Notes2,707.4 3,305.8 2,527.7 (18)7 
Long-Term Debt1,068.3 1,094.1 1,160.6 (2)(8)
Floating Rate Capital Debt— — 277.9 N/M(100)
Total Interest-Related Funds116,544.8 110,696.5 109,812.7 5 6 
Demand and Other Noninterest-Bearing Deposits27,858.1 32,081.5 42,269.3 (13)(34)
Other Liabilities4,406.3 3,938.6 5,104.9 12 (14)
Total Liabilities148,809.2 146,716.6 157,186.9 1 (5)
Common Equity10,145.5 10,184.8 11,013.9 — (8)
Preferred Equity884.9 884.9 884.9 — — 
Total Equity11,030.4 11,069.7 11,898.8 — (7)
Total Liabilities and Stockholders’ Equity$159,839.6 $157,786.3 $169,085.7 1 %(5)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)    Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
11
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
($ In Millions)
% Change(1)
 Q3 2022 vs.
Q3 2022Q2 2022Q3 2021Q2 2022Q3 2021
Assets
Federal Reserve and Other Central Bank Deposits and Other(2)
$30,598.3 $36,708.4 $40,540.6 (17)%(25)%
Interest-Bearing Due from and Deposits with Banks(3)
3,976.8 4,227.6 5,165.4 (6)(23)
Federal Funds Sold5.1 2.2 0.1 129N/M
Securities Purchased under Agreements to Resell1,270.9 1,149.3 840.9 11 51 
Securities
       U.S. Government2,637.3 2,648.1 2,669.3 — (1)
       Obligations of States and Political Subdivisions3,437.9 3,486.6 3,691.0 (1)(7)
       Government Sponsored Agency21,774.7 22,468.3 24,414.0 (3)(11)
       Other(4)
26,979.1 28,464.0 28,221.4 (5)(4)
Total Securities54,829.0 57,067.0 58,995.7 (4)(7)
Loans and Leases41,466.4 40,747.0 38,410.7 2 8 
Total Earning Assets132,146.5 139,901.5 143,953.4 (6)(8)
Allowance for Credit Losses(154.1)(155.8)(161.1)(1)(4)
Cash and Due from Banks and Other Central Bank Deposits(5)
1,903.1 2,559.1 2,011.5 (26)(5)
Buildings and Equipment481.2 487.7 500.0 (1)(4)
Client Security Settlement Receivables1,667.1 1,587.8 1,283.6 5 30 
Goodwill685.5 693.8 709.2 (1)(3)
Other Assets9,672.9 9,010.0 8,156.2 7 19 
Total Assets$146,402.2 $154,084.1 $156,452.8 (5)%(6)%
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
       Savings, Money Market and Other$29,089.3 $30,967.5 $28,472.3 (6)%2 %
       Savings Certificates and Other Time986.0 792.3 870.9 24 13 
       Non-U.S. Offices - Interest-Bearing64,057.3 63,900.7 70,210.8 — (9)
Total Interest-Bearing Deposits94,132.6 95,660.5 99,554.0 (2)(5)
Federal Funds Purchased1,967.5 922.8 165.8 113N/M
Securities Sold under Agreements to Repurchase489.6 596.7 293.0 (18)67
Other Borrowings5,991.1 4,186.7 5,526.8 43 8 
Senior Notes2,969.6 2,885.1 2,840.7 3 5 
Long-Term Debt1,087.6 1,096.4 1,166.2 (1)(7)
Floating Rate Capital Debt— — 277.8 N/M(100)
Total Interest-Related Funds106,638.0 105,348.2 109,824.3 1 (3)
Demand and Other Noninterest-Bearing Deposits24,355.5 33,733.3 30,241.4 (28)(19)
Other Liabilities4,473.1 4,095.6 4,534.2 9 (1)
Total Liabilities135,466.6 143,177.1 144,599.9 (5)(6)
Common Equity10,050.7 10,022.1 10,968.0 — (8)
Preferred Equity884.9 884.9 884.9 — — 
Total Equity10,935.6 10,907.0 11,852.9 — (8)
Total Liabilities and Stockholders’ Equity$146,402.2 $154,084.1 $156,452.8 (5)%(6)%
(1)    Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(2)    Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)     Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)    Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
12
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA QUARTERS
($ In Millions Except Per Share Data)20222021
THIRDSECONDFIRSTFOURTHTHIRD
Net Income Summary
   Trust, Investment and Other Servicing Fees $1,078.7 $1,143.4 $1,168.4 $1,111.0 $1,111.0 
   Other Noninterest Income163.1 166.6 169.3 195.4 176.4 
   Net Interest Income 513.0 458.7 381.0 360.6 346.4 
     Total Revenue 1,754.8 1,768.7 1,718.7 1,667.0 1,633.8 
   Provision for Credit Losses 0.5 4.5 2.0 (11.5)(13.0)
   Noninterest Expense1,229.8 1,223.6 1,205.9 1,168.9 1,128.7 
     Income before Income Taxes524.5 540.6 510.8 509.6 518.1 
   Provision for Income Taxes129.7 144.4 121.5 103.2 122.4 
     Net Income $394.8 $396.2 $389.3 $406.4 $395.7 
Per Common Share
   Net Income - Basic$1.80 $1.86 $1.78 $1.92 $1.81 
                      - Diluted1.80 1.86 1.77 1.91 1.80 
   Cash Dividends Declared per Common Share0.75 0.70 0.70 0.70 0.70 
   Book Value (EOP)48.68 48.87 50.51 53.58 53.04 
   Market Value (EOP)85.56 96.48 116.45 119.61 107.81 
Financial Ratios
   Return on Average Common Equity14.9 %15.7 %14.2 %14.5 %13.7 %
   Return on Average Assets1.07 1.03 0.97 1.00 1.00 
   Net Interest Margin (GAAP)1.54 1.31 1.03 0.96 0.95 
   Net Interest Margin (FTE*)1.58 1.35 1.05 0.99 0.98 
Assets Under Custody / Administration ($ in Billions) - End Of Period
Asset Servicing$11,954.0 $12,812.2 $14,513.0 $15,183.2 $14,800.2 
   Wealth Management868.0 921.5 1,031.1 1,065.6 976.0 
     Total Assets Under Custody / Administration$12,822.0 $13,733.7 $15,544.1 $16,248.8 $15,776.2 
Assets Under Custody ($ In Billions) - End Of Period
Asset Servicing$9,125.5 $9,771.2 $10,987.5 $11,554.8 $11,283.6 
   Wealth Management860.8 913.0 1,022.9 1,057.5 962.9 
     Total Assets Under Custody$9,986.3 $10,684.2 $12,010.4 $12,612.3 $12,246.5 
Assets Under Management ($ In Billions) - End Of Period
Asset Servicing$873.7 $950.0 $1,091.6 $1,191.0 $1,159.5 
   Wealth Management336.2 352.8 396.2 416.1 372.9 
     Total Assets Under Management$1,209.9 $1,302.8 $1,487.8 $1,607.1 $1,532.4 
Asset Quality ($ In Millions) - End Of Period
   Nonaccrual Loans and Leases$76.4 $89.7 $100.8 $122.3 $141.0 
   Other Real Estate Owned (OREO)— 0.1 0.2 3.0 0.2 
     Total Nonaccrual Assets$76.4 $89.8 $101.0 $125.3 $141.2 
   Nonaccrual Assets / Loans and Leases and OREO0.17 %0.22 %0.26 %0.31 %0.36 %
   Gross Charge-offs$(5.4)$— $(0.1)$(0.3)$— 
Gross Recoveries 0.9 5.5 3.3 1.4 1.1 
     Net Recoveries (Charge-offs)$(4.5)$5.5 $3.2 $1.1 $1.1 
   Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases(0.04)%0.05 %0.03 %0.01 %0.01 %
   Allowance for Credit Losses Assigned to:
     Loans and Leases$138.7 $138.2 $136.3 $138.4 $143.9 
Undrawn Loan Commitments and Standby Letters of Credit40.7 43.5 37.5 34.1 39.8 
Debt Securities and Other Financial Assets16.5 18.2 16.1 12.2 11.4 
   Loans and Leases Allowance / Nonaccrual Loans and Leases1.8 x1.5 x1.4 x1.1 x1.0 x
(*)    Net interest margin presented on an FTE basis is a non-generally accepted accounting principle financial measure that facilitates the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.
13
1northerntrust.com | © 2022 NorthernTrust Northern Trust Corporation .Third Quarter 2022 Quarterly Earnings Review . October 19, 2022

 
2northerntrust.com | © 2022 NorthernTrust 2Q22 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq S&P 500 (16.8)% (9.3)% (10.2)% (7.2)% (11.9)% (16.4)% MSCI EAFE Local (13.5)% (6.6)% (7.5)% (5.1)% (9.0)% (8.8)% 1 month Libor (Avg) 238 bps 146 bps 3 month Libor (Avg) 287 bps 147 bps EUR / USD 18.3% 6.7% GBP / USD 20.8% 8.8% EXECUTIVE SUMMARY 1 Month Lag YoY represents the average month-ends of Jun. 2022 – Aug. 2022 vs. Jun. 2021 – Aug. 2021. Month Lag Seq represents the average month-ends of Jun. 2022 – Aug. 2022 vs. Mar. 2022 – May. 2022. 2 Quarter Lag YoY represents quarter-end Jun. 2022 vs. Jun. 2021. Quarter Lag Seq represents quarter-end Jun. 2022 vs. Mar. 2022. Key Macroeconomic Factors  Net income of $394.8 million, earnings per diluted common share of $1.80.  Return on average common equity of 14.9%.  The current quarter included:  Pre-tax pension settlement charge of $17.0 million in the current year, compared to $6.9 million in the prior year.  Results for the quarter included the impact of certain accounting reclassifications implemented at the start of 2022 which impact the year-over-year comparisons. For the current quarter, this resulted in a $15.6 million increase to Trust, Investment and Other Servicing Fees, with:  $6.2 million ($3.2 million in Other Asset Servicing fees and $3.0 million in Wealth Management) relating to amounts previously recorded in Other Operating Income in the prior year  $9.4 million relating to amounts previously recorded as a reduction in Other Operating Expense in the prior year now reported in Asset Servicing Investment Management fees.

 
3northerntrust.com | © 2022 NorthernTrust SUMMARY RESULTS & KEY METRICS $ in millions (except EPS and as noted) % Change Vs. 3Q 2022 3Q 2021 2Q 2022 Revenue (FTE1) $1,767.1 7% (1%) Noninterest Expense 1,229.8 9% 1% Provision for Credit Losses 0.5 N/M N/M Net Income $394.8 0% 0% Diluted Earnings per Share $1.80 0% (3%) Return on Average Common Equity2 14.9% 13.7% 15.7% Pre-Tax Margin1,2 30.4% 32.2% 31.0% Expense to Trust Fee Ratio2 114% 102% 107% Assets under Custody / Administration3 (in billions) $12,822 (19)% (7)% Assets under Custody3 (in billions) $9,986 (18)% (7)% Assets under Management3 (in billions) $1,210 (21)% (7)% 1 Revenue and pre-tax margin stated on a fully taxable equivalent (FTE) basis are non-GAAP financial measures. A reconciliation to reported revenue and reported pre-tax margin prepared in accordance with U.S. generally accepted accounting principles (GAAP) is included in the Appendix on page 10. 2 Actual numbers for all periods, not % change. 3 Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission. N/M - Not meaningful

 
4northerntrust.com | © 2022 NorthernTrust TOTAL REVENUE $ in millions Total Revenue (FTE1) $1,111 $1,111 $1,168 $1,143 $1,079 $66 $77 $81 $78 $65 $110 $119 $88 $89 $98 $357 $371 $388 $470 $525 $1,645 $1,677 $1,725 $1,780 $1,767 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 +7% -1% Trust, Investment and Other Servicing Fees FX Trading Income Other Noninterest Income2 Net Interest Income (FTE1)  Trust, Investment & Other Servicing Fees were down 3% year-over-year and down 6% sequentially.  Foreign Exchange Trading Income was down 3% year-over-year and down 17% sequentially.  Other Noninterest Income was down 11% year-over-year and up 11% sequentially.  Net Interest Income (FTE1) was up 47% year-over-year and up 12% sequentially. Categories may not sum due to rounding. 1 Net interest income and total revenue stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 10. 2 Other Noninterest Income includes Security Commissions and Trading Income, Treasury Management Fees, Other Operating Income, and Investment Security Gains (Losses), net

 
5northerntrust.com | © 2022 NorthernTrust TRUST, INVESTMENT & OTHER SERVICING FEES $ in millions (except as noted) % Change Vs. Trust, Investment & Other Servicing Fees 3Q 2022 3Q 2021 2Q 2022 Custody & Fund Administration $407.3 (12)% (6)% Investment Management 136.0 +20% (8)% Securities Lending 21.7 +8% +1% Other 38.2 +6% (2)% Total Asset Servicing $603.2 (4)% (6)% Central $171.3 (4)% (3)% East 124.1 (5)% (3)% West 92.5 (5)% (6)% Global Family Office (GFO) 87.6 +17% (9)% Total Wealth Management $475.5 (1)% (5)% Client Assets1 (in billions): Asset Servicing AUC/A $11,954 (19)% (7)% Asset Servicing AUC $9,126 (19)% (7)% Asset Servicing AUM $874 (25)% (8)% Securities Lending Collateral $162 (22)% (4)% Wealth Management AUC/A $868 (11)% (6)% Wealth Management AUC $861 (11)% (6)% Wealth Management AUM $336 (10)% (5)%  Asset Servicing Trust, Investment & Other Servicing Fees were down 4% year-over-year and down 6% sequentially.  Custody and fund administration fees decreased sequentially primarily due to unfavorable markets, unfavorable currency translation and lower transaction volumes. Custody and fund administration fees decreased from the prior-year quarter primarily due to unfavorable currency translation and unfavorable markets, partially offset by new business.  Investment management fees decreased sequentially primarily due to unfavorable markets and asset outflows. Investment management fees increased from the prior-year quarter primarily due to lower money market fund fee waivers and the accounting reclassification previously discussed, partially offset by asset outflows and unfavorable markets.  Wealth Management Trust, Investment & Other Servicing Fees were down 1% year-over-year and down 5% sequentially.  Fees in the regions (Central, East and West) decreased sequentially primarily due to unfavorable markets. Fees in the regions decreased from the prior-year quarter primarily due to unfavorable markets, partially offset by lower money market fund fee waivers.  Fees in GFO decreased sequentially primarily due to unfavorable markets. Fees in GFO increased from the prior- year quarter primarily due to lower money market fund fee waivers and new business, partially offset by unfavorable markets. 1 Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

 
6northerntrust.com | © 2022 NorthernTrust NET INTEREST INCOME Average Earning Assets ($ in billions) $144.0 $148.8 $149.8 $139.9 $132.1 0.98% 0.99% 1.05% 1.35% 1.58% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 NII (FTE1) in millions $ 525.3$ 357.1 $ 370.6 $ 387.7 $469.8 Loans & Leases Securities Deposits w/ Banks Fed Deposits & Other NIM (FTE1)  Net Interest Income (FTE1) was up 47% year-over- year and up 12% sequentially. Net interest margin (FTE1) was 1.58%.  Average Earning Assets were down 8% year-over- year and down 6% sequentially.  Average Total Deposits were down 9% year-over- year and down 8% sequentially.  Net Interest Margin increased 60 basis points from the prior-year quarter and increased 23 basis points sequentially. The prior-year quarter increase was primarily due to higher average interest rates and a favorable balance sheet mix shift. The sequential increase was primarily due to higher average interest rates. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 10.

 
7northerntrust.com | © 2022 NorthernTrust NONINTEREST EXPENSE $ in millions Total Noninterest Expense $598 $618 $668 $666 $663 $211 $224 $213 $213 $221 $185 $196 $194 $204 $212 $54 $52 $51 $51 $51 $81 $79 $80 $90 $82 $1,129 $1,169 $1,206 $1,224 $1,230 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 +9% +1% Compensation & Benefits Outside Services Equipment & Software Occupancy Other  Expenses totaled $1.2 billion in the third quarter, up 9% year-over-year and up 1% sequentially.  The year-over-year growth in expenses was primarily driven by increases in compensation, and equipment and software related costs.  The sequential expense increase was primarily driven by increases in equipment and software, outside services and compensation, partially offset by decreases in employee benefits and other operating expense. Categories may not sum due to rounding.

 
8northerntrust.com | © 2022 NorthernTrust CAPITAL Northern Trust Corporation Capital Ratios Advanced Approach Common Equity Tier 1 11.4% Tier 1 12.5% Total 13.5% Tier 1 Leverage 7.0% Supplementary Leverage 7.7% Standardized Approach Common Equity Tier 1 10.1% Tier 1 11.1% Total 12.2% Tier 1 Leverage 7.0% Capital Return  Increased quarterly cash dividend on common stock by $0.05 or 7%, to $0.75 per share.  Declared $158.4 million in common stock dividends and $16.2 million in preferred stock dividends in 3Q 2022.  Repurchased $1.1 million of common stock in 3Q 2022.  Accumulated other comprehensive income (loss) was ($1.8 billion) as of September 30, 2022, a change of ($0.3 billion) during the third quarter. As of September 30, 2022, capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.  Stress Capital Buffer requirement of 2.5%; resulting in minimum Common Equity Tier 1 requirement of 7%.

 
9northerntrust.com | © 2022 NorthernTrust Appendix

 
10northerntrust.com | © 2022 NorthernTrust RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following table presents a reconciliation of total revenue, net interest income, net interest margin and pre-tax margin prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) basis, which are non-GAAP financial measures. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. 3Q22 2Q22 1Q22 4Q21 3Q21 Reported 1,754.8$ 1,768.7$ 1,718.7$ 1,667.0$ 1,633.8$ FTE Adj. 12.3$ 11.1$ 6.7$ 10.0$ 10.7$ FTE 1,767.1$ 1,779.8$ 1,725.4$ 1,677.0$ 1,644.5$ 3Q22 2Q22 1Q22 4Q21 3Q21 Reported 513.0$ 458.7$ 381.0$ 360.6$ 346.4$ FTE Adj. 12.3$ 11.1$ 6.7$ 10.0$ 10.7$ FTE 525.3$ 469.8$ 387.7$ 370.6$ 357.1$ NIM - Reported 1.54% 1.31% 1.03% 0.96% 0.95% NIM - FTE 1.58% 1.35% 1.05% 0.99% 0.98% 3Q22 2Q22 3Q21 Revenue - Reported 1,754.8$ 1,768.7$ 1,633.8$ Pre-Tax Income - Reported 524.5$ 540.6$ 518.1$ FTE Adj.* 12.3$ 11.1$ 10.7$ Revenue - FTE 1,767.1$ 1,779.8$ 1,644.5$ Pre-Tax Income - FTE 536.8$ 551.7$ 528.8$ Pre-Tax Margin - Reported 29.9% 30.6% 31.7% Pre-Tax Margin - FTE 30.4% 31.0% 32.2% * FTE Adjustment applies to both revenue and pre-tax income Revenue Net Interest Income Pre-Tax Margin

 
11northerntrust.com | © 2022 NorthernTrust FORWARD-LOOKING STATEMENTS This presentation may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capital adequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality including allowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities, acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements and legislation. 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 Third Quarter 2022 earnings press release, which is available at: www.northerntrust.com/about-us/investor-relations

 
Exhibit 99.3
reportsa29.jpg



Financial Trends
Third Quarter 2022
October 19, 2022



Please direct inquiries to:
Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or [email protected]
Briar Rose
Vice President, Investor Relations
(312) 557-5297 or [email protected]



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 Third Quarter 2022 earnings press release, 2021 Annual Report to Shareholders, and periodic reports to the Securities and Exchange Commission, all of which contain additional information about factors that could affect the Corporation's future financial results and trends. The Corporation assumes no obligation to update this report.



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


Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr*4th Qtr
Profitability:
$1,199.0 $1,556.4 $1,492.2 $1,209.3 $1,545.3 Net Income$375.1 $368.1 $395.7 $406.4 $389.3 $396.2 $394.8 
1,130.4 1,489.9 1,428.9 1,141.0 1,490.6 Earnings Allocated to Common and Potential355.2 360.2 376.5 398.7 370.0 388.3 375.4 
  Common Shares
$4.95 $6.68 $6.66 $5.48 $7.16 Basic Earnings Per Share$1.71 $1.73 $1.81 $1.92 $1.78 $1.86 $1.80 
4.92 6.64 6.63 5.46 7.14 Diluted Earnings Per Share1.70 1.72 1.80 1.91 1.77 1.86 1.80 
14 %35 %— %(18 %)31 %Diluted EPS Growth over Previous Year10 %18 %36 %70 %4 %8 %— %
12.6 %16.2 %14.9 %11.2 %13.9 %Return on Average Common Equity13.7 %13.7 %13.7 %14.5 %14.2 %15.7 %14.9 %
1.00 %1.27 %1.27 %0.88 %0.99 %Return on Average Assets0.99 %0.96 %1.00 %1.00 %0.97 %1.03 %1.07 %
31.0 %33.3 %32.4 %27.1 %31.5 %Profit Margin (pre-tax) (FTE**)31.6 %31.1 %32.2 %31.0 %30.0 %31.0 %30.4 %
22.1 %25.9 %24.4 %19.7 %23.8 %Profit Margin (after-tax) (FTE**)23.6 %23.2 %24.1 %24.2 %22.6 %22.3 %22.3 %
72.8 %72.3 %72.0 %75.9 %78.2 %Noninterest Income to Total Revenue (FTE**)78.2 %78.4 %78.3 %77.9 %77.5 %73.6 %70.3 %
63.4 %62.5 %63.1 %65.1 %67.1 %Trust Fees to Total Revenue (FTE**)66.9 %67.7 %67.6 %66.2 %67.7 %64.2 %61.0 %
26.6 %20.5 %23.2 %25.7 %23.1 %Effective Tax Rate (US GAAP)24.4 %24.3 %23.6 %20.2 %23.8 %26.7 %24.7 %
28.6 %22.1 %24.5 %27.2 %24.5 %Effective Tax Rate (FTE**)25.4 %25.6 %25.2 %21.8 %24.8 %28.2 %26.4 %
Capital Ratios:
Standardized Approach
12.6 %12.9 %12.7 %12.8 %11.9 %Common Equity Tier 1 Capital12.0 %12.0 %11.9 %11.9 %11.4 %10.5 %10.1 %
13.8 %14.1 %14.5 %13.9 %12.9 %Tier 1 Capital13.0 %13.1 %12.9 %12.9 %12.4 %11.5 %11.1 %
15.8 %16.1 %16.3 %15.6 %14.1 %Total Capital14.5 %14.5 %14.3 %14.1 %13.6 %12.6 %12.2 %
7.8 %8.0 %8.7 %7.6 %6.9 %Tier 1 Leverage6.9 %7.1 %7.1 %6.9 %6.5 %6.7 %7.0 %
Advanced Approach
13.5 %13.7 %13.2 %13.4 %13.2 %Common Equity Tier 1 Capital12.8 %13.1 %13.0 %13.2 %12.1 %11.6 %11.4 %
14.8 %15.0 %15.0 %14.5 %14.3 %Tier 1 Capital14.0 %14.2 %14.1 %14.3 %13.2 %12.7 %12.5 %
16.7 %16.9 %16.8 %15.9 %15.3 %Total Capital15.2 %15.5 %15.4 %15.3 %14.2 %13.7 %13.5 %
7.8 %8.0 %8.7 %7.6 %6.9 %Tier 1 Leverage6.9 %7.1 %7.1 %6.9 %6.5 %6.7 %7.0 %
6.8 %7.0 %7.6 %8.6 %8.2 %Supplementary Leverage (a) (b)8.1 %8.2 %8.4 %8.2 %7.9 %7.6 %7.7 %
Per Share Information / Ratios:
$1.60 $1.94 $2.60 $2.80 $2.80 Cash Dividends Declared Per Common Share$0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.75 
33 %29 %39 %51 %39 %Dividend Payout Ratio41 %41 %39 %37 %40 %38 %42 %
$99.89 $83.59 $106.24 $93.14 $119.61 Market Value Per Share (End of Period)$105.11 $115.62 $107.81 $119.61 $116.45 $96.48 $85.56 
20.3 12.6 16.0 17.1 16.8 Stock Price Multiple of Earnings18.8 19.7 17.0 16.8 16.2 13.1 11.7 
(based on trailing 4 quarters of diluted EPS)
$41.28 $43.95 $46.82 $51.87 $53.58 Book Value Per Common Share (End of Period)$50.80 $52.49 $53.04 $53.58 $50.51 $48.87 $48.68 
*
Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
**Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
(a)Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
(b)
From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.
1

Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
NINE MONTHSCHANGETHIRD QUARTERCHANGE
20222021$%20222021$%
$1,908.3 $1,862.2 $46.1 2 %Asset Servicing Trust, Investment and Other Servicing Fees$603.2 $630.2 $(27.0)(4)%
1,482.2 1,387.9 94.3 7 %WM Trust, Investment and Other Servicing Fees 475.5 480.8 (5.3)(1)%
3,390.5 3,250.1 140.4 4 %Total Fees1,078.7 1,111.0 (32.3)(3)%
223.2 215.7 7.5 3 %Foreign Exchange Trading Income64.7 66.4 (1.7)(3)%
31.0 33.7 (2.7)(8)%Treasury Management Fees9.3 11.2 (1.9)(18)%
101.1 104.3 (3.2)(3)%Security Commissions and Trading Income32.1 36.5 (4.4)(12)%
144.0 171.6 (27.6)(16)%Other Operating Income57.3 62.3 (5.0)(8)%
(0.3)— (0.3)N/MInvestment Security Gains (Losses), net(0.3)— (0.3)N/M
3,889.5 3,775.4 114.1 3 %Total Noninterest Income1,241.8 1,287.4 (45.6)(4)%
1,737.7 1,069.9 667.8 62 %Interest Income (FTE*)811.6 362.0 449.6 124 %
354.9 22.2 332.7 N/MInterest Expense286.3 4.9 281.4 N/M
1,382.8 1,047.7 335.1 32 %Net Interest Income (FTE*)525.3 357.1 168.2 47 %
5,272.3 4,823.1 449.2 9 %Total Revenue (FTE*)1,767.1 1,644.5 122.6 7 %
7.0 (70.0)77.0 N/MProvision for Credit Losses0.5 (13.0)13.5 N/M
1,663.7 1,500.8 162.9 11 %Compensation553.3 496.0 57.3 12 %
333.8 323.5 10.3 3 %Employee Benefits109.9 101.7 8.2 8 %
647.4 625.2 22.2 4 %Outside Services 220.9 210.7 10.2 5 %
609.4 540.2 69.2 13 %Equipment and Software212.4 185.2 27.2 15 %
153.4 156.9 (3.5)(2)%Occupancy51.3 53.9 (2.6)(5)%
251.6 220.4 31.2 14 %Other Operating Expense82.0 81.2 0.8 1 %
3,659.3 3,367.0 292.3 9 %Total Noninterest Expense1,229.8 1,128.7 101.1 9 %
1,606.0 1,526.1 79.9 5 %Income before Income Taxes (FTE*)536.8 528.8 8.0 2 %
395.6 361.6 34.0 9 %Provision for Income Taxes129.7 122.4 7.3 6 %
30.1 25.6 4.5 17 %Taxable Equivalent Adjustment12.3 10.7 1.6 15 %
425.7 387.2 38.5 10 %Total Taxes (FTE*)142.0 133.1 8.9 7 %
$1,180.3 $1,138.9 $41.4 4 %Net Income$394.8 $395.7 $(0.9)— %
$37.1 $37.1 $— — %Dividends on Preferred Stock$16.2 $16.2 $— — %
9.5 9.9 (0.4)(3)%Earnings Allocated to Participating Securities3.2 3.0 0.2 8 %
1,133.7 1,091.9 41.8 4 %Earnings Allocated to Common and Potential Common Shares375.4 376.5 (1.1)— %
$5.44 $5.24 $0.20 4 %Earnings Per Share - Basic$1.80 $1.81 $(0.01)— %
$5.43 $5.22 $0.21 4 %Earnings Per Share - Diluted$1.80 $1.80 $— — %
208,271 208,199 Average Basic Shares (000s)208,400 208,116 
208,859 209,003 Average Diluted Shares (000s)208,889 208,923 
208,416 207,661 End of Period Shares Outstanding (000s)208,416 207,661 
N/M - Not meaningful
* Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
2

Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$1,984.5 $2,173.1 $2,211.5 $2,321.6 $2,487.3 Asset Servicing Trust, Investment and Other Servicing Fees$620.5 $611.5 $630.2 $625.1 $662.4 $642.7 $603.2 
1,449.8 1,580.6 1,640.6 1,673.4 1,873.8 WM Trust, Investment and Other Servicing Fees443.2 463.9 480.8 485.9 506.0 500.7 475.5 
3,434.3 3,753.7 3,852.1 3,995.0 4,361.1 Total Fees1,063.7 1,075.4 1,111.0 1,111.0 1,168.4 1,143.4 1,078.7 
209.9 307.2 250.9 290.4 292.6 Foreign Exchange Trading Income78.7 70.6 66.4 76.9 80.9 77.6 64.7 
56.4 51.8 44.5 45.4 44.3 Treasury Management Fees11.2 11.3 11.2 10.6 11.1 10.6 9.3 
89.6 98.3 103.6 133.2 140.2 Security Commissions and Trading Income34.8 33.0 36.5 35.9 36.2 32.8 32.1 
157.5 127.5 145.5 194.0 243.9 Other Operating Income54.9 54.4 62.3 72.3 41.1 45.6 57.3 
(1.6)(1.0)(1.4)(0.4)(0.3)Investment Security Gains (Losses), net— — — (0.3)— — (0.3)
3,946.1 4,337.5 4,395.2 4,657.6 5,081.8 Total Noninterest Income1,243.3 1,244.7 1,287.4 1,306.4 1,337.7 1,310.0 1,241.8 
1,475.0 1,663.9 1,710.7 1,477.6 1,418.3 Net Interest Income (FTE*)346.7 343.9 357.1 370.6 387.7 469.8 525.3 
5,421.1 6,001.4 6,105.9 6,135.2 6,500.1 Total Revenue (FTE*)1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 
(28.0)(14.5)(14.5)125.0 (81.5)Provision for Credit Losses(30.0)(27.0)(13.0)(11.5)2.0 4.5 0.5 
1,733.7 1,806.9 1,859.0 1,947.1 2,011.0 Compensation518.5 486.3 496.0 510.2 563.9 546.5 553.3 
319.9 356.7 355.2 387.7 431.4 Employee Benefits103.4 118.4 101.7 107.9 104.3 119.6 109.9 
668.4 739.4 774.5 763.1 849.4 Outside Services196.4 218.1 210.7 224.2 213.4 213.1 220.9 
524.0 582.2 612.1 673.5 736.3 Equipment and Software176.7 178.3 185.2 196.1 193.5 203.5 212.4 
191.8 201.1 212.9 230.1 208.7 Occupancy50.8 52.2 53.9 51.8 51.1 51.0 51.3 
331.6 330.6 329.8 346.7 299.1 Other Operating Expense71.7 67.5 81.2 78.7 79.7 89.9 82.0 
3,769.4 4,016.9 4,143.5 4,348.2 4,535.9 Total Noninterest Expense1,117.5 1,120.8 1,128.7 1,168.9 1,205.9 1,223.6 1,229.8 
1,679.7 1,999.0 1,976.9 1,662.0 2,045.7 Income before Income Taxes (FTE*)502.5 494.8 528.8 519.6 517.5 551.7 536.8 
434.9 401.4 451.9 418.3 464.8 Provision for Income Taxes120.8 118.4 122.4 103.2 121.5 144.4 129.7 
45.8 41.2 32.8 34.4 35.6 Taxable Equivalent Adjustment6.6 8.3 10.7 10.0 6.7 11.1 12.3 
480.7 442.6 484.7 452.7 500.4 Total Taxes (FTE*)127.4 126.7 133.1 113.2 128.2 155.5 142.0 
$1,199.0 $1,556.4 $1,492.2 $1,209.3 $1,545.3 Net Income$375.1 $368.1 $395.7 $406.4 $389.3 $396.2 394.8 
$4.95 $6.68 $6.66 $5.48 $7.16 Earnings Per Share - Basic$1.71 $1.73 $1.81 $1.92 $1.78 $1.86 $1.80 
4.92 6.64 6.63 5.46 7.14 Earnings Per Share - Diluted1.70 1.72 1.80 1.91 1.77 1.86 1.80 
229,654 224,488 215,601 209,008 208,899 Average Diluted Shares (000s)208,946 209,138 208,923 208,593 208,809 208,878 208,889 
$49.8 $46.4 $46.4 $56.2 $41.8 Preferred Dividends**$16.2 $4.7 $16.2 $4.7 $16.2 $4.7 $16.2 
* Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
** Dividends on Preferred Stock in 2020 includes $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.
3

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Asset Servicing
$1,342.1 $1,501.1 $1,549.3 $1,586.1 $1,818.8 Custody & Fund Administration$446.0 $454.9 $460.2 $457.7 $452.7 $433.8 $407.3 
403.5 436.8 445.7 511.1 443.5 Investment Management115.9 100.7 113.6 113.3 146.9 148.4 136.0 
96.4 102.0 87.2 88.0 76.7 Securities Lending18.2 19.5 20.2 18.8 18.8 21.6 21.7 
142.6 133.2 129.3 136.4 148.3 Other40.4 36.4 36.2 35.3 44.0 38.9 38.2 
$1,984.6 $2,173.1 $2,211.5 $2,321.6 $2,487.3 Total Asset Servicing Trust, Investment and Other Servicing Fees$620.5 $611.5 $630.2 $625.1 $662.4 $642.7 $603.2 
Wealth Management
$575.5 $607.8 $619.3 $607.3 $698.7 Central$164.2 $174.3 $178.8 $181.4 $181.7 $177.4 $171.3 
356.2 401.7 422.2 442.1 509.3 East119.0 127.2 130.2 132.9 134.0 128.1 124.1 
291.7 320.0 330.9 337.7 380.2 West90.8 93.8 97.0 98.6 101.4 98.7 92.5 
226.3 251.1 268.2 286.3 285.6 Global Family Office69.2 68.6 74.8 73.0 88.9 96.5 87.6 
$1,449.7 $1,580.6 $1,640.6 $1,673.4 $1,873.8 Total WM Trust, Investment and Other Servicing Fees$443.2 $463.9 $480.8 $485.9 $506.0 $500.7 $475.5 

4

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
CHANGE
Assets9/30/20229/30/2021$%
Federal Reserve and Other Central Banks Deposits and Other(2)
$39,635.8 $49,960.3 $(10,324.5)(21)%
Interest-Bearing Due from and Deposits with Banks(3)
4,097.4 5,338.6 (1,241.2)(23)%
Federal Funds Sold30.1 — 30.1 N/M
Securities Purchased under Agreements to Resell1,166.2 872.8 293.4 34 %
Securities:(1)
U.S. Government2,601.9 2,661.1 (59.2)(2)%
Obligations of States and Political Subdivisions3,396.4 3,751.2 (354.8)(9)%
Government Sponsored Agency21,525.7 24,750.5 (3,224.8)(13)%
Other(4)
26,293.1 29,106.3 (2,813.2)(10)%
   Total Securities53,817.1 60,269.1 (6,452.0)(11)%
Loans and Leases43,991.9 39,456.6 4,535.3 11 %
Total Earning Assets142,738.5 155,897.4 (13,158.9)(8)%
Allowance for Credit Losses(154.4)(155.3)0.9 (1)%
Cash and Due From Banks and Other Central Bank Deposits(5)
2,000.3 1,875.2 125.1 7 %
Buildings and Equipment469.2 493.6 (24.4)(5)%
Client Security Settlement Receivables3,077.3 1,954.3 1,123.0 57 %
Goodwill679.0 705.5 (26.5)(4)%
Other Assets11,029.7 8,315.0 2,714.7 33 %
Total Assets$159,839.6 $169,085.7 $(9,246.1)(5)%
Liabilities and Stockholders' Equity
Savings, Money Market and Other$30,968.5 $30,580.4 $388.1 1 %
Savings Certificates and Other Time1,217.1 882.1 335.0 38 %
Non- U.S. Offices - Interest-Bearing68,503.7 68,192.8 310.9 — %
Total Interest-Bearing Deposits100,689.3 99,655.3 1,034.0 1 %
Federal Funds Purchased4,364.8 0.2 4,364.6 N/M
Securities Sold under Agreements to Repurchase561.4 573.6 (12.2)(2)%
Other Borrowings7,153.6 5,617.4 1,536.2 27 %
Senior Notes2,707.4 2,527.7 179.7 7 %
Long-Term Debt1,068.3 1,160.6 (92.3)(8)%
Floating Rate Capital Debt— 277.9 (277.9)(100)%
Total Interest-Related Funds116,544.8 109,812.7 6,732.1 6 %
Demand and Other Noninterest-Bearing Deposits27,858.1 42,269.3 (14,411.2)(34)%
Other Liabilities4,406.3 5,104.9 (698.6)(14)%
Total Liabilities148,809.2 157,186.9 (8,377.7)(5)%
Common Equity10,145.5 11,013.9 (868.4)(8)%
Preferred Equity884.9 884.9 — — %
Total Stockholders' Equity11,030.4 11,898.8 (868.4)(7)%
Total Liabilities and Stockholders' Equity$159,839.6 $169,085.7 $(9,246.1)(5)%
(1)
Memo - at 9/30/2022:
Held to Maturity Debt Securities $25,249.8 
Available for Sale Debt Securities 26,979.3 
Trading Securities0.1 
Other Earning Assets1,587.9 
$53,817.1 
(2)
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
5

Northern Trust Corporation
BALANCE SHEET TRENDS
  PERIOD AVERAGES(1)
($ in Millions)
20212022
20172018201920202021Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$23,904 $23,899 $18,528 $27,921 $39,041 
Federal Reserve and Other Central Banks Deposits and Other(2)
$37,140 $37,425 $40,541 $40,999 $45,221 $36,708 $30,598 
7,143 6,023 5,997 5,401 5,780 
Interest-Bearing Due from and Deposits with Banks(3)
6,464 6,737 5,165 4,778 4,384 4,228 3,977 
18 21 13 2 — Federal Funds Sold— — — — 1 2 5 
1,832 1,478 835 1,253 1,067 Securities Purchased under Agreements to Resell1,551 1,012 841 876 692 1,149 1,271 
Securities:
6,342 5,737 5,297 4,257 2,685 U.S. Government2,877 2,676 2,669 2,524 2,501 2,648 2,637 
887 725 981 2,194 3,532 Obligations of States and Political Subdivisions3,199 3,373 3,691 3,856 3,793 3,487 3,438 
17,987 20,683 22,634 23,970 24,546 Government Sponsored Agency24,846 24,521 24,414 24,408 23,511 22,468 21,775 
19,499 23,136 21,773 25,635 30,014 
Other(4)
30,310 30,000 28,221 31,534 30,122 28,464 26,979 
44,716 50,281 50,684 56,057 60,778    Total Securities61,231 60,570 58,996 62,321 59,927 57,067 54,829 
33,565 32,029 31,053 33,499 37,208 Loans and Leases34,201 36,282 38,411 39,860 39,544 40,747 41,466 
111,178 113,731 107,109 124,133 143,873 Total Earning Assets140,589 142,024 143,953 148,834 149,768 139,902 132,147 
(157)(126)(111)(178)(173)Allowance for Credit Losses(199)(177)(161)(156)(152)(156)(154)
2,583 2,534 2,394 2,603 2,286 
Cash and Due From Banks and Other Central Bank Deposits(5)
2,615 2,403 2,012 2,124 2,047 2,559 1,903 
466 439 426 509 503 Buildings and Equipment509 505 500 497 495 488 481 
892 1,002 1,070 1,358 1,530 Client Security Settlement Receivables1,669 1,533 1,284 1,639 1,826 1,588 1,667 
544 643 683 695 707 Goodwill707 708 709 705 704 694 686 
4,101 4,725 5,981 7,691 7,637 Other Assets7,367 7,305 8,156 7,711 7,455 9,010 9,673 
$119,607 $122,947 $117,551 $136,811 $156,363 Total Assets$153,256 $154,300 $156,453 $161,354 $162,143 $154,084 $146,402 
Liabilities and Equity
$15,576 $15,149 $16,578 $23,396 $28,339 Savings, Money Market and Other$26,736 $27,427 $28,472 $30,676 $32,329 $30,968 $29,089 
1,273 871 868 1,266 887 Savings Certificates and Other Time924 899 871 857 842 792 986 
56,583 58,557 54,885 60,486 69,713 Non- U.S. Offices - Interest-Bearing68,306 69,202 70,211 71,099 68,200 63,901 64,057 
73,432 74,577 72,331 85,149 98,940 Total Interest-Bearing Deposits95,965 97,528 99,554 102,631 101,371 95,661 94,133 
1,103 2,763 1,267 981 191 Federal Funds Purchased406 195 166 — — 923 1,968 
739 525 339 218 232 Securities Sold under Agreements to Repurchase90 229 293 314 254 597 490 
4,854 7,496 7,753 6,401 5,050 Other Borrowings4,681 5,196 5,527 4,789 3,691 4,187 5,991 
1,497 1,704 2,389 3,234 2,856 Senior Notes3,058 3,023 2,841 2,510 2,442 2,885 2,970 
1,519 1,297 1,139 1,189 1,166 Long-Term Debt1,179 1,169 1,166 1,151 1,128 1,096 1,088 
277 278 278 278 218 Floating Rate Capital Debt278 278 278 42 — — — 
83,422 88,638 85,495 97,450 108,653 Total Interest-Related Funds105,656 107,617 109,824 111,437 108,886 105,348 106,638 
23,073 20,527 17,456 23,362 31,144 Demand and Other Noninterest-Bearing Deposits30,451 30,469 30,241 33,390 37,129 33,733 24,356 
3,132 3,553 3,952 4,806 4,870 Other Liabilities5,611 4,663 4,534 4,685 4,616 4,096 4,473 
109,627 112,718 106,903 125,618 144,666 Total Liabilities141,718 142,749 144,600 149,512 150,632 143,177 135,467 
9,099 9,347 9,705 10,307 10,812 Common Equity10,653 10,666 10,968 10,957 10,626 10,022 10,051 
882 882 943 886 885 Preferred Equity885 885 885 885 885 885 885 
9,981 10,229 10,648 11,193 11,697 Total Stockholders' Equity11,537 11,551 11,853 11,842 11,511 10,907 10,936 
$119,607 $122,947 $117,551 $136,811 $156,363 Total Liabilities and Stockholders' Equity$153,256 $154,300 $156,453 $161,354 $162,143 $154,084 $146,402 
(1)
Summations may not equal due to rounding
(2)
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
6

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
20212022
20172018201920202021Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
20.0 %19.4 %15.8 %20.4 %25.0 %
Federal Reserve and Other Central Banks Deposits and Other(2)
24.2 %24.3 %25.9 %25.4 %27.9 %23.8 %20.9 %
6.0 4.9 5.1 3.9 3.7 
Interest-Bearing Due from and Deposits with Banks(3)
4.2 4.4 3.3 3.0 2.7 2.7 2.7 
— — — — — Federal Funds Sold— — — — — — — 
1.5 1.2 0.7 0.9 0.7 Securities Purchased under Agreements to Resell1.0 0.7 0.5 0.5 0.4 0.7 0.9 
Securities:
5.3 4.7 4.5 3.1 1.7 U.S. Government1.9 1.7 1.7 1.6 1.5 1.7 1.8 
0.7 0.6 0.8 1.6 2.3 Obligations of States and Political Subdivisions2.1 2.2 2.4 2.4 2.3 2.3 2.3 
15.0 16.8 19.3 17.5 15.7 Government Sponsored Agency16.2 15.9 15.6 15.1 14.5 14.6 14.9 
16.3 18.8 18.5 18.7 19.2 
Other(4)
19.8 19.4 18.0 19.5 18.6 18.5 18.4 
37.4 40.9 43.1 41.0 38.9    Total Securities40.0 39.3 37.7 38.6 37.0 37.0 37.5 
28.1 26.1 26.4 24.5 23.8 Loans and Leases22.3 23.5 24.6 24.7 24.4 26.4 28.3 
93.0 92.5 91.1 90.7 92.0 Total Earning Assets91.7 92.0 92.0 92.2 92.4 90.8 90.3 
(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)
2.2 2.1 2.0 1.9 1.5 
Cash and Due From Banks and Other Central Bank Deposits(5)
1.7 1.6 1.3 1.3 1.3 1.7 1.3 
0.4 0.4 0.4 0.4 0.3 Buildings and Equipment0.3 0.3 0.3 0.3 0.3 0.3 0.3 
0.7 0.8 0.9 1.0 1.0 Client Security Settlement Receivables1.1 1.0 0.8 1.0 1.1 1.0 1.1 
0.5 0.5 0.6 0.5 0.5 Goodwill0.5 0.5 0.5 0.4 0.4 0.5 0.5 
3.4 3.8 5.1 5.6 4.9 Other Assets4.8 4.7 5.2 4.8 4.6 5.8 6.6 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Liabilities and Equity
13.0 %12.3 %14.1 %17.1 %18.1 %Savings, Money Market and Other17.4 %17.8 %18.2 %19.0 %19.9 %20.1 %19.9 %
1.1 0.7 0.7 0.9 0.6 Savings Certificates and Other Time0.6 0.6 0.6 0.5 0.5 0.5 0.7 
47.3 47.6 46.7 44.2 44.6 Non- U.S. Offices - Interest-Bearing44.6 44.8 44.9 44.1 42.1 41.5 43.8 
61.4 60.7 61.5 62.2 63.3 Total Interest-Bearing Deposits62.6 63.2 63.6 63.6 62.5 62.1 64.3 
0.9 2.2 1.1 0.7 0.1 Federal Funds Purchased0.3 0.1 0.1 — — 0.6 1.3 
0.6 0.4 0.3 0.2 0.1 Securities Sold under Agreements to Repurchase0.1 0.1 0.2 0.2 0.2 0.4 0.3 
4.1 6.1 6.6 4.7 3.2 Other Borrowings3.1 3.4 3.5 3.0 2.3 2.7 4.1 
1.3 1.4 2.0 2.4 1.8 Senior Notes2.0 2.0 1.8 1.6 1.5 1.9 2.0 
1.3 1.1 1.0 0.9 0.7 Long-Term Debt0.8 0.8 0.7 0.7 0.7 0.7 0.7 
0.2 0.2 0.2 0.2 0.1 Floating Rate Capital Debt0.2 0.2 0.2 — — — — 
69.7 72.1 72.7 71.2 69.5 Total Interest-Related Funds68.9 69.7 70.2 69.1 67.2 68.4 72.8 
19.3 16.7 14.8 17.1 19.9 Demand and Other Noninterest-Bearing Deposits19.9 19.7 19.3 20.7 22.9 21.9 16.6 
2.6 2.9 3.4 3.5 3.1 Other Liabilities3.7 3.0 2.9 2.9 2.8 2.7 3.1 
91.7 91.7 90.9 91.8 92.5 Total Liabilities92.5 92.5 92.4 92.7 92.9 92.9 92.5 
7.6 7.6 8.3 7.5 6.9 Common Equity7.0 6.9 7.0 6.8 6.6 6.5 6.9 
0.7 0.7 0.8 0.6 0.6 Preferred Equity0.6 0.6 0.6 0.5 0.5 0.6 0.6 
8.3 8.3 9.1 8.2 7.5 Total Stockholders' Equity7.5 7.5 7.6 7.3 7.1 7.1 7.5 
100.0 %100.0 %100.0 %100.0 %100.0 %Total Liabilities and Stockholders' Equity100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
(1)
Summations may not equal due to rounding
(2)
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.

7

Northern Trust Corporation
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES
Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
20212022
20172018201920202021Earnings Assets1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
0.65 %0.87 %0.98 %0.10 %0.03 %
Federal Reserve and Other Central Banks Deposits and Other(2)
— %0.01 %0.04 %0.06 %0.16 %0.65 %1.76 %
0.89 1.16 1.21 0.41 0.16 
Interest-Bearing Due from and Deposits with Banks(3)
0.15 0.16 0.15 0.18 0.24 0.62 1.45 
1.39 2.18 2.73 1.37 0.41 Federal Funds Sold0.41 0.41 0.41 0.41 0.45 0.75 2.79 
1.48 2.22 2.10 0.31 0.33 
Securities Purchased under Agreements to Resell(5)
0.27 0.34 0.38 0.38 0.50 2.47 9.51 
Securities:
1.41 1.89 2.09 1.48 1.10 U.S. Government1.02 1.03 1.01 1.35 1.62 1.74 1.79 
1.48 1.91 2.49 2.20 1.98 Obligations of States and Political Subdivisions1.96 1.99 1.96 2.01 2.11 2.31 2.36 
1.57 2.20 2.58 1.71 1.21 Government Sponsored Agency1.36 1.20 1.14 1.12 1.26 1.51 1.92 
1.30 1.59 1.75 1.26 1.02 
Other(4)
0.99 1.03 1.10 0.98 1.00 1.27 1.66 
1.43 1.88 2.17 1.51 1.16    Total Securities1.19 1.15 1.17 1.11 1.20 1.45 1.81 
2.77 3.45 3.74 2.32 1.92 Loans and Leases2.05 1.91 1.87 1.88 1.97 2.53 3.64 
1.63 %2.08 %2.36 %1.35 %1.00 %Total Earning Assets1.03 %0.99 %1.00 %0.99 %1.06 %1.54 %2.44 %
Interest-Bearing Funds
0.16 %0.54 %0.97 %0.20 %0.05 %Savings, Money Market and Other0.06 %0.04 %0.04 %0.04 %0.04 %0.24 %0.94 %
0.74 0.90 1.86 1.30 0.55 Savings Certificates and Other Time0.67 0.49 0.53 0.49 0.51 0.58 1.61 
0.26 0.50 0.57 (0.03)(0.11)Non- U.S. Offices - Interest-Bearing(0.11)(0.11)(0.12)(0.12)(0.12)0.02 0.65 
0.25 0.52 0.68 0.06 (0.06)Total Interest-Bearing Deposits(0.06)(0.06)(0.07)(0.06)(0.06)0.10 0.75 
0.95 1.82 2.05 0.22 (0.19)Federal Funds Purchased0.06 (0.95)0.09 — 0.05 1.22 2.00 
0.81 1.48 1.89 0.47 0.07 
Securities Sold under Agreements to Repurchase(5)
0.07 0.03 0.06 0.11 0.49 4.01 20.72 
1.04 2.00 2.34 0.71 0.28 Other Borrowings0.30 0.25 0.26 0.32 0.35 0.80 2.36 
3.13 3.13 3.04 2.24 1.69 Senior Notes1.82 1.82 1.64 1.44 1.59 2.65 3.79 
2.58 3.47 3.36 2.24 1.81 Long-Term Debt1.83 1.83 1.79 1.80 1.94 2.47 3.41 
1.75 2.72 2.98 1.52 0.78 Floating Rate Capital Debt0.81 0.76 0.75 0.86 — — — 
0.41 %0.79 %0.96 %0.21 %0.02 %Total Interest-Related Funds0.04 %0.03 %0.02 %0.01 %0.01 %0.25 %1.07 %
1.22 %1.29 %1.40 %1.14 %0.98 %Net Interest Spread0.99 %0.96 %0.98 %0.98 %1.05 %1.29 %1.37 %
1.33 %1.46 %1.60 %1.19 %0.99 %Net Interest Margin1.00 %0.97 %0.98 %0.99 %1.05 %1.35 %1.58 %
(1)
Fully taxable equivalent. The 2018 through 2022 FTE adjustments are based on a federal income tax rate of 21% and the 2017 FTE adjustments are based on a federal income tax rate of 35%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
(2)
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(3)
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(4)
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(5)
Includes the impact of balance sheet netting under master netting arrangements of approximately $4.3 billion for the three months ended September 30, 2022. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 2.16% for the three months ended September 30, 2022. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 2.11% for the three months ended September 30, 2022.
8

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$192.0 $153.8 $138.2 $124.4 $259.9 Beginning Allowance for Credit Losses$259.9 $230.8 $207.0 $195.1 $184.7 $189.9 $199.9 
— — — 13.7 — Cumulative Effect Adjustment*— — — — — — — 
(28.0)(14.5)(14.5)125.0 (81.5)Provision for Credit Losses(30.0)(27.0)(13.0)(11.5)2.0 4.5 0.5 
(Charge-offs) Recoveries
(21.5)(10.1)(6.5)(9.7)(0.7)Charge-offs(0.4)— — (0.3)(0.1)— (5.4)
11.3 9.0 7.2 6.5 7.0 Recoveries1.3 3.2 1.1 1.4 3.3 5.5 0.9 
(10.2)(1.1)0.7 (3.2)6.3 Net (Charge-offs) Recoveries0.9 3.2 1.1 1.1 3.2 5.5 (4.5)
$153.8 $138.2 $124.4 $259.9 $184.7 Ending Allowance for Credit Losses$230.8 $207.0 $195.1 $184.7 $189.9 $199.9 $195.9 
Allowance for Credit Losses Assigned to:
$131.2 $112.6 $104.5 $190.7 $138.4 Loans and Leases$165.4 $148.8 $143.9 $138.4 $136.3 $138.2 $138.7 
22.6 25.6 19.9 61.1 34.1 Undrawn Loan Commitments and Standby Letters of Credit55.1 46.5 39.8 34.1 37.5 43.5 40.7 
— — — 8.1 12.2 Debt Securities and Other Financial Assets10.3 11.7 11.4 12.2 16.1 18.2 16.5 
$153.8 $138.2 $124.4 $259.9 $184.7 Total Allowance for Credit Losses$230.8 $207.0 $195.1 $184.7 $189.9 $199.9 $195.9 
$33,565 $32,029 $31,053 $33,499 $37,208 Average Loans and Leases Outstanding$34,201 $36,282 $38,411 $39,860 $39,544 $40,747 $41,466 
Annualized Loan-Related Net (Charge-offs) Recoveries to
(0.03)%— %— %(0.01)%0.02 %Average Loans and Leases0.01 %0.04 %0.01 %0.01 %0.03 %0.05 %(0.04)%
$32,592 $32,490 $31,410 $33,760 $40,481 End of Period Loans and Leases Outstanding$34,344 $37,407 $39,457 $40,481 $39,239 $41,208 $43,992 
Allowance for Credit Losses Assigned to Loans
0.40 %0.35 %0.33 %0.56 %0.34 %and Leases to Total Loans and Leases0.48 %0.40 %0.36 %0.34 %0.35 %0.34 %0.32 %
Nonaccrual Assets
$150.7 $109.3 $83.6 $131.7 $122.3 Nonaccrual Loans and Leases$123.8 $106.5 $141.0 $122.3 $100.8 $89.7 $76.4 
4.6 8.4 3.2 0.7 3.0 Other Real Estate Owned (OREO)1.5 0.2 0.2 3.0 0.2 0.1 — 
$155.3 $117.7 $86.8 $132.4 $125.3 Total Nonaccrual Assets$125.3 $106.7 $141.2 $125.3 $101.0 $89.8 $76.4 
0.48 %0.36 %0.28 %0.39 %0.31 %Nonaccrual Assets to Loans and Leases and OREO0.36 %0.29 %0.36 %0.31 %0.26 %0.22 %0.17 %
Loans and Leases Allowance to Nonaccrual
0.9x1.0x1.3x1.4x1.1xLoans and Leases1.3x1.4x1.0x1.1x1.4x1.5x1.8x
*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.
9

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
Assets under Management
$871.2 $790.8 $917.5 $1,057.5 $1,191.0 Asset Servicing$1,093.7 $1,168.3 $1,159.5 $1,191.0 $1,091.6 $950.0 $873.7 
Asset allocation:
443.3 403.3 483.8 551.7 626.6 Equities573.5 616.0 594.9 626.6 582.8 479.1 444.1 
111.9 105.3 114.6 120.1 132.6 Fixed Income Securities117.1 132.6 127.9 132.6 122.8 114.8 103.1 
148.5 132.4 156.1 198.8 236.2 Cash and Other Assets201.9 220.4 228.6 236.2 208.8 186.8 164.4 
167.5 149.8 163.0 186.9 195.6 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 
$289.8 $278.6 $313.8 $347.8 $416.1 Wealth Management$355.4 $371.1 $372.9 $416.1 $396.2 $352.8 $336.2 
Asset allocation:
149.0 130.9 167.0 182.0 229.9 Equities196.1 211.8 211.5 229.9 218.1 185.0 171.0 
71.6 73.0 79.2 84.7 83.5 Fixed Income Securities81.8 82.3 82.7 83.5 81.6 80.1 79.5 
69.0 74.6 67.5 81.1 102.7 Cash and Other Assets77.5 77.0 78.7 102.7 96.5 87.7 85.7 
0.2 0.1 0.1 — — Securities Lending Collateral— — — — — — — 
$1,161.0 $1,069.4 $1,231.3 $1,405.3 $1,607.1 Total Assets under Management$1,449.1 $1,539.4 $1,532.4 $1,607.1 $1,487.8 $1,302.8 $1,209.9 
Asset allocation:
$592.3 $534.2 $650.8 $733.7 $856.5 Equities$769.6 $827.8 $806.4 $856.5 $800.9 $664.1 $615.1 
183.5 178.3 193.8 204.8 216.1 Fixed Income Securities198.9 214.9 210.6 216.1 204.4 194.9 182.6 
217.5 207.0 223.6 279.9 338.9 Cash and Other Assets279.4 297.4 307.3 338.9 305.3 274.5 250.1 
167.7 149.9 163.1 186.9 195.6 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 
Assets under Custody / Administration
$10,066.8 $9,490.5 $11,311.6 $13,653.1 $15,183.2 Asset Servicing$13,876.3 $14,754.1 $14,800.2 $15,183.2 $14,513.0 $12,812.2 $11,954.0 
655.8 634.8 738.8 879.4 1,065.6 Wealth Management918.8 973.0 976.0 1,065.6 1,031.1 921.5 868.0 
$10,722.6 $10,125.3 $12,050.4 $14,532.5 $16,248.8 Total Assets under Custody / Administration$14,795.1 $15,727.1 $15,776.2 $16,248.8 $15,544.1 $13,733.7 $12,822.0 
Assets under Custody
$7,439.1 $6,971.0 $8,497.8 $10,387.7 $11,554.8 Asset Servicing$10,618.0 $11,260.8 $11,283.6 $11,554.8 $10,987.5 $9,771.2 $9,125.5 
Asset allocation:
3,400.1 3,043.0 3,866.6 4,751.0 5,404.3 Equities5,005.7 5,334.8 5,298.8 5,404.3 5,062.5 4,272.7 3,939.7 
2,755.2 2,700.2 3,102.3 3,742.6 3,997.5 Fixed Income Securities3,688.4 3,892.9 3,908.3 3,997.5 3,768.9 3,378.8 3,157.1 
1,116.3 1,078.0 1,365.9 1,707.2 1,957.4 Cash and Other Assets1,722.7 1,833.8 1,868.4 1,957.4 1,978.9 1,950.4 1,866.6 
167.5 149.8 163.0 186.9 195.6 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 
$645.5 $622.9 $735.7 $875.1 $1,057.5 Wealth Management$916.2 $967.8 $962.9 $1,057.5 $1,022.9 $913.0 $860.8 
Asset allocation:
375.6 336.5 432.0 542.9 644.8 Equities575.0 616.3 600.7 644.8 615.2 512.8 469.3 
121.3 122.2 134.3 128.3 142.1 Fixed Income Securities130.3 136.7 138.2 142.1 140.5 135.0 131.6 
148.4 164.1 169.3 203.9 270.6 Cash and Other Assets210.9 214.8 224.0 270.6 267.2 265.2 259.9 
0.2 0.1 0.1 — — Securities Lending Collateral— — — — — — — 
$8,084.6 $7,593.9 $9,233.5 $11,262.8 $12,612.3 Total Assets under Custody$11,534.2 $12,228.6 $12,246.5 $12,612.3 $12,010.4 $10,684.2 $9,986.3 
Asset allocation:
$3,775.7 $3,379.5 $4,298.6 $5,293.9 $6,049.1 Equities$5,580.7 $5,951.0 $5,899.5 $6,049.1 $5,677.7 $4,785.5 $4,409.0 
2,876.5 2,822.4 3,236.6 3,870.9 4,139.6 Fixed Income Securities3,818.7 4,029.6 4,046.5 4,139.6 3,909.4 3,513.8 3,288.7 
1,264.7 1,242.1 1,535.2 1,911.1 2,228.0 Cash and Other Assets1,933.6 2,048.7 2,092.4 2,228.0 2,246.1 2,215.6 2,126.5 
167.7 149.9 163.1 186.9 195.6 Securities Lending Collateral201.2 199.3 208.1 195.6 177.2 169.3 162.1 
Memo
$87.1 $83.5 $94.2 $114.0 $144.9 WM Global Family Office AUM$114.3 $119.7 $120.4 $144.9 $136.6 $121.9 $117.1 
422.9 405.5 474.1 600.7 742.6 WM Global Family Office AUC635.2 675.4 668.9 742.6 720.8 642.2 598.4 
10

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial measures presented on an FTE basis.
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
$1,769.4 $2,321.4 $2,499.9 $1,643.5 $1,406.5 Interest Income - GAAP$349.9 $343.1 $351.3 $362.2 $383.5 $524.8 $799.3 
45.8 41.2 32.8 34.4 35.6 Add: FTE Adjustment6.68.310.710.06.711.112.3
1,815.2 2,362.6 2,532.7 1,677.9 1,442.1 Interest Income (FTE) - Non-GAAP356.5351.4362.0372.2390.2535.9811.6
1,429.2 1,622.7 1,677.9 1,443.2 1,382.7 Net Interest Income - GAAP340.1335.6346.4360.6381.0458.7513.0
45.8 41.2 32.8 34.4 35.6 Add: FTE Adjustment6.68.310.710.06.711.112.3
1,475.0 1,663.9 1,710.7 1,477.6 1,418.3 Net Interest Income (FTE) - Non-GAAP346.7343.9357.1370.6387.7469.8525.3
5,375.3 5,960.2 6,073.1 6,100.8 6,464.5 Total Revenue - GAAP1,583.4 1,580.3 1,633.8 1,667.0 1,718.7 1,768.7 1,754.8 
45.8 41.2 32.8 34.4 35.6 Add: FTE Adjustment6.68.310.710.06.711.112.3
5,421.1 6,001.4 6,105.9 6,135.2 6,500.1 Total Revenue (FTE) - Non-GAAP1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 
1,633.9 1,957.8 1,944.1 1,627.6 2,010.1 Income before Income Taxes - GAAP495.9486.5518.1509.6510.8540.6524.5
45.8 41.2 32.8 34.4 35.6 Add: FTE Adjustment6.68.310.710.06.711.112.3
1,679.7 1,999.0 1,976.9 1,662.0 2,045.7 Income before Income Taxes (FTE) - Non-GAAP502.5494.8528.8519.6517.5551.7536.8
434.9 401.4 451.9 418.3 464.8 Provision for Income Taxes - GAAP120.8118.4122.4103.2121.5144.4129.7
45.8 41.2 32.8 34.4 35.6 Add: FTE Adjustment6.68.310.710.06.711.112.3
480.7 442.6 484.7 452.7 500.4 Provision for Income Taxes (FTE) - Non-GAAP127.4126.7133.1113.2128.2155.5142.0
11

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

Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.
20212022
201720182019202020211st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr
30.4 %32.8 %32.0 %26.7 %31.1 %
Profit Margin (pre-tax) - GAAP (1)
31.3 %30.8 %31.7 %30.6 %29.7 %30.6 %29.9 %
31.0 %33.3 %32.4 %27.1 %31.5 %
Profit Margin (pre-tax) (FTE) - Non-GAAP (1)
31.6 %31.1 %32.2 %31.0 %30.0 %31.0 %30.4 %
22.3 %26.1 %24.6 %19.8 %23.9 %
Profit Margin (after-tax) - GAAP (2)
23.7 %23.3 %24.2 %24.4 %22.7 %22.4 %22.5 %
22.1 %25.9 %24.4 %19.7 %23.8 %
Profit Margin (after-tax) (FTE) - Non-GAAP (2)
23.6 %23.2 %24.1 %24.2 %22.6 %22.3 %22.3 %
26.6 %20.5 %23.2 %25.7 %23.1 %
Effective Tax Rate - GAAP (3)
24.4 %24.3 %23.6 %20.2 %23.8 %26.7 %24.7 %
28.6 %22.1 %24.5 %27.2 %24.5 %
Effective Tax Rate (FTE) - Non-GAAP (3)
25.4 %25.6 %25.2 %21.8 %24.8 %28.2 %26.4 %
73.4 %72.8 %72.4 %76.3 %78.6 %
Noninterest Income to Total Revenue - GAAP (4)
78.5 %78.8 %78.8 %78.4 %77.8 %74.1 %70.8 %
72.8 %72.3 %72.0 %75.9 %78.2 %
Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)
78.2 %78.4 %78.3 %77.9 %77.5 %73.6 %70.3 %
63.9 %63.0 %63.4 %65.5 %67.5 %
Trust Fees to Total Revenue - GAAP (5)
67.2 %68.1 %68.0 %66.6 %68.0 %64.6 %61.5 %
63.4 %62.5 %63.1 %65.1 %67.1 %
Trust Fees to Total Revenue (FTE) - Non-GAAP (5)
66.9 %67.7 %67.6 %66.2 %67.7 %64.2 %61.0 %
1.18 %1.25 %1.37 %1.11 %0.96 %
Net Interest Spread - GAAP (6)
0.97 %0.94 %0.95 %0.96 %1.03 %1.25 %1.33 %
1.22 %1.29 %1.40 %1.14 %0.98 %
Net Interest Spread (FTE) - Non-GAAP (6)
0.99 %0.96 %0.98 %0.98 %1.05 %1.29 %1.37 %
1.29 %1.43 %1.57 %1.16 %0.96 %
Net Interest Margin - GAAP (7)
0.98 %0.95 %0.95 %0.96 %1.03 %1.31 %1.54 %
1.33 %1.46 %1.60 %1.19 %0.99 %
Net Interest Margin (FTE) - Non-GAAP (7)
1.00 %0.97 %0.98 %0.99 %1.05 %1.35 %1.58 %
(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