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8-K

Northern Trust Corp (NTRS)

8-K 2023-01-19 For: 2023-01-19
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Added on April 11, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

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

NORTHERN TRUST CORPORATION

(Exact name of registrant as specified in its charter)

Delaware 001-36609 36-2723087
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
50 South LaSalle Street 60603
Chicago, Illinois (Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code (312) 630-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $1.66 2/3 Par Value NTRS The NASDAQ Stock Market LLC
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock NTRSO The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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

Item 2.02.    Results of Operations and Financial Condition

The information contained in the registrant’s January 19, 2023 press release, reporting on the registrant’s earnings for the three and twelve months ended December 31, 2022, a copy of which is attached as Exhibit 99.1 hereto, is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure

On January 19, 2023, the Corporation will hold a live conference call and webcast to discuss financial results for the three and twelve months ended December 31, 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 twelve months ended December 31, 2022 (the “Financial Trends”), copies of which are attached as Exhibits 99.2 and 99.3 hereto, and are incorporated herein by reference.

Item 9.01.    Financial Statements and Exhibits

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

(d) Exhibits:

Exhibit Number Description
99.1 Press Release
99.2 Presentation Materials
99.3 Financial Trends
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NORTHERN TRUST CORPORATION
(Registrant)
Dated: January 19, 2023 By: /s/ Jason J. Tyler
Jason J. Tyler
Executive Vice President and Chief Financial Officer

Document

Exhibit 99.1

NEWS RELEASE
www.northerntrust.com

INVESTOR CONTACT: Jennifer Childe | 312-444-3290 | Jennifer.Childe@ntrs.com MEDIA CONTACT: Doug Holt | 312-662-8315 | Doug.Holt@ntrs.com

NORTHERN TRUST CORPORATION REPORTS FOURTH QUARTER NET INCOME OF $155.7 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $0.71

CHICAGO, JANUARY 19, 2023 — Northern Trust Corporation today reported fourth quarter net income per diluted common share of $0.71, compared to $1.80 in the third quarter of 2022 and $1.91 in the fourth quarter of 2021. Net income was $155.7 million, compared to $394.8 million in the prior quarter and $406.4 million in the prior-year quarter.

Fourth quarter 2022 results included the following:
•$213.0 million of pre-tax available for sale security losses recognized in conjunction with an intent to sell (after-tax $159.4 million).
•$32.0 million of pre-tax severance-related charges (after-tax $24.0 million).
•$14.0 million of pre-tax occupancy charges (after-tax $10.5 million) related to early lease exits.
•$6.8 million of pre-tax pension settlement charge (after-tax $5.1 million). MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
---
“Northern Trust’s fourth quarter results reflected strong year-over-year growth in net interest income, which more than offset lower trust fees. Expense levels remained elevated as we continued to invest in people and technology to enhance our resiliency and support growth in the business. Reported results included $266 million in charges related to a repositioning of our securities portfolio and, in part, steps we are taking to optimize our cost base and drive greater efficiencies throughout the company. These actions underscore our commitment to improving our profitability. As we look ahead, we are focused on driving organic growth, improving our productivity and further strengthening our foundation.” FINANCIAL SUMMARY & KEY METRICS
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
% Change Q4 2022 vs.
($ In Millions except per share data) Q4 2022 Q3 2022 Q4 2021 Q3 2022 Q4 2021
Trust, Investment and Other Servicing Fees $ 1,042.1 $ 1,078.7 $ 1,111.0 (3) % (6) %
Other Noninterest Income (Loss) (57.6) 163.1 195.4 (135) (129)
Net Interest Income (FTE*) 550.0 525.3 370.6 5 48
Total Revenue (FTE*) $ 1,534.5 $ 1,767.1 $ 1,677.0 (13) % (8) %
Noninterest Expense $ 1,323.6 $ 1,229.8 $ 1,168.9 8 % 13 %
Provision for Credit Losses 5.0 0.5 (11.5) N/M N/M
Provision for Income Taxes 34.7 129.7 103.2 (73) (66)
FTE Adjustment* 15.5 12.3 10.0 26 55
Net Income $ 155.7 $ 394.8 $ 406.4 (61) % (62) %
Earnings Allocated to Common and<br>Potential Common Shares $ 148.7 $ 375.4 $ 398.7 (60) % (63) %
Diluted Earnings per Common Share $ 0.71 $ 1.80 $ 1.91 (61) % (63) %
Return on Average Common Equity 5.9 % 14.9 % 14.5 %
Return on Average Assets 0.42 % 1.07 % 1.00 %
Average Assets $ 147,803.6 $ 146,402.2 $ 161,353.8 1 % (8) %

N/M - Not meaningful

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

| NORTHERN TRUST CORPORATION FOURTH QUARTER 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 fourth quarter of 2022 by $14.2 million, with a $5.6 million decrease in Other Operating Income and an $8.6 million increase in Other Operating Expense. The classification changes are deemed to be a better representation of the underlying nature of the business as they are directly tied to client asset levels and the related services are more akin to our core service offerings. Prior-year amounts have not been reclassified. || CLIENT ASSETS | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income. | | | | | | | | | | | | | As of | | | | | | % Change December 31, 2022 vs. | | | | | ($ In Billions) | December 31, 2022* | | September 30, 2022 | | December 31, 2021 | | September 30, 2022 | | December 31, 2021 | | | Assets Under Custody/Administration | | | | | | | | | | | | Asset Servicing | $ | 12,705.5 | $ | 11,954.0 | $ | 15,183.2 | 6 | % | (16) | % | | Wealth Management | 898.5 | | 868.0 | | 1,065.6 | | 4 | | (16) | | | Total Assets Under Custody/Administration | $ | 13,604.0 | $ | 12,822.0 | $ | 16,248.8 | 6 | % | (16) | % | | Assets Under Custody(1) | | | | | | | | | | | | Asset Servicing | $ | 9,712.3 | $ | 9,125.5 | $ | 11,554.8 | 6 | % | (16) | % | | Wealth Management | 892.3 | | 860.8 | | 1,057.5 | | 4 | | (16) | | | Total Assets Under Custody | $ | 10,604.6 | $ | 9,986.3 | $ | 12,612.3 | 6 | % | (16) | % | | Assets Under Management | | | | | | | | | | | | Asset Servicing | $ | 898.1 | $ | 873.7 | $ | 1,191.0 | 3 | % | (25) | % | | Wealth Management | 351.4 | | 336.2 | | 416.1 | | 5 | | (16) | | | Total Assets Under Management | $ | 1,249.5 | $ | 1,209.9 | $ | 1,607.1 | 3 | % | (22) | % |

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

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

TRUST, INVESTMENT AND OTHER SERVICING FEES
% Change Q4 2022 vs.
($ In Millions) Q4 2022 Q3 2022 Q4 2021 Q3 2022 Q4 2021
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 406.3 $ 407.3 $ 457.7 — % (11) %
Investment Management 123.8 136.0 113.3 (9) 9
Securities Lending 19.3 21.7 18.8 (11) 2
Other 38.6 38.2 35.3 1 9
Total Asset Servicing $ 588.0 $ 603.2 $ 625.1 (3) % (6) %
Wealth Management Trust, Investment and Other Servicing Fees
Central $ 162.2 $ 171.3 $ 181.4 (5) % (11) %
East 117.8 124.1 132.9 (5) (11)
West 89.5 92.5 98.6 (3) (9)
Global Family Office (GFO) 84.6 87.6 73.0 (3) 16
Total Wealth Management $ 454.1 $ 475.5 $ 485.9 (5) % (7) %
Total Consolidated Trust, Investment and Other Servicing Fees $ 1,042.1 $ 1,078.7 $ 1,111.0 (3) % (6) %

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

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

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

▪Investment management fees decreased sequentially primarily due to asset outflows and unfavorable markets. Investment management fees increased from the prior-year quarter primarily due to lower money market fund fee waivers, partially offset by asset outflows and unfavorable markets.

▪Other trust, investment and other servicing fees increased from the prior-year quarter primarily due to the accounting reclassification discussed above.

NORTHERN TRUST CORPORATION FOURTH 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 and asset outflows. Fees in the regions decreased from the prior-year quarter primarily due to unfavorable markets and asset outflows, partially offset by lower money market fund fee waivers.

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

OTHER NONINTEREST INCOME
% Change Q4 2022 vs.
($ In Millions) Q4 2022 Q3 2022 Q4 2021 Q3 2022 Q4 2021
Other Noninterest Income
Foreign Exchange Trading Income $ 65.4 $ 64.7 $ 76.9 1 % (15) %
Treasury Management Fees 8.3 9.3 10.6 (9) (21)
Security Commissions and Trading Income 35.1 32.1 35.9 9 (2)
Other Operating Income 47.3 57.3 72.3 (18) (35)
Investment Security Gains (Losses), net (213.7) (0.3) (0.3) N/M N/M
Total Other Noninterest Income (Loss) $ (57.6) $ 163.1 $ 195.4 (135) % (129) %

N/M - Not meaningful

Foreign exchange trading income decreased compared to the prior-year quarter primarily driven by decreased foreign exchange swap activity in Treasury and lower client volumes.

Security commissions and trading income increased sequentially primarily due to higher core brokerage activity.

Other operating income decreased sequentially primarily due to higher expenses related to existing swap agreements related to historical sales of Visa Inc. Class B common shares. Other operating income decreased compared to the prior-year quarter primarily driven by gains from property sales in the prior-year quarter and the accounting reclassification.

Investment security gains (losses), net decreased sequentially and compared to the prior-year quarter primarily due to a $213.0 million loss arising from an intent to sell available for sale debt securities, which were sold in January 2023.

NET INTEREST INCOME
% Change Q4 2022 vs.
($ In Millions) Q4 2022 Q3 2022 Q4 2021 Q3 2022 Q4 2021
Net Interest Income
Interest Income (FTE*) $ 1,185.6 $ 811.6 $ 372.2 46 % 219 %
Interest Expense 635.6 286.3 1.6 122 N/M
Net Interest Income (FTE*) $ 550.0 $ 525.3 $ 370.6 5 % 48 %
Average Earning Assets $ 133,789 $ 132,147 $ 148,834 1% (10 %)
Net Interest Margin (FTE*) 1.63 % 1.58 % 0.99 % 5 bps 64 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 compared to the prior-year quarter primarily due to higher average interest rates, partially offset by an unfavorable balance sheet mix shift.

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

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

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS | | --- || PROVISION FOR CREDIT LOSSES | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As of and for the three-months ended, | | | | | | % Change December 31, 2022 vs. | | | | | ($ In Millions) | December 31, 2022 | | September 30, 2022 | | December 31, 2021 | | September 30, 2022 | | December 31, 2021 | | | Allowance for Credit Losses | | | | | | | | | | | | Beginning Allowance for Credit Losses | $ | 195.9 | $ | 199.9 | $ | 195.1 | (2) | % | — | % | | Provision for Credit Losses | 5.0 | | 0.5 | | (11.5) | | N/M | | N/M | | | Net Recoveries (Charge-Offs) | — | | (4.5) | | 1.1 | | N/M | | N/M | | | Ending Allowance for Credit Losses | $ | 200.9 | $ | 195.9 | $ | 184.7 | 3 | % | 9 | % | | Allowance assigned to: | | | | | | | | | | | | Loans and Leases | $ | 144.3 | $ | 138.7 | $ | 138.4 | 4 | % | 4 | % | | Undrawn Loan Commitments and <br>Standby Letters of Credit | 38.5 | | 40.7 | | 34.1 | | (5) | | 13 | | | Debt Securities and Other Financial Assets | 18.1 | | 16.5 | | 12.2 | | 8 | | 47 | | | Ending Allowance for Credit Losses | $ | 200.9 | $ | 195.9 | $ | 184.7 | 3 | % | 9 | % |

N/M - Not meaningful

Q4 2022

The provision in the current quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by growth in the commercial and institutional and commercial real estate portfolios and further deterioration in the macroeconomic outlook, partially offset by improvement in portfolio quality for the commercial and institutional segment. The reserve evaluated on a collective basis relates to pooled financial assets sharing similar risk characteristics.

Q3 2022

The provision in the prior quarter was primarily due to an increase in the reserve evaluated on a collective basis, driven by a weaker macroeconomic outlook at the time as compared to the previous period, partially offset by improvements in credit quality mainly within the commercial and institutional portfolio.

Q4 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, partially offset by an increase in the private client portfolio.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS | | --- || NONINTEREST EXPENSE | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | % Change Q4 2022 vs. | | | | | ($ In Millions) | Q4 2022 | | Q3 2022 | | Q4 2021 | | Q3 2022 | | Q4 2021 | | | Noninterest Expense | | | | | | | | | | | | Compensation | $ | 584.3 | $ | 553.3 | $ | 510.2 | 6 | % | 15 | % | | Employee Benefits | 103.6 | | 109.9 | | 107.9 | | (6) | | (4) | | | Outside Services | 232.9 | | 220.9 | | 224.2 | | 5 | | 4 | | | Equipment and Software | 229.4 | | 212.4 | | 196.1 | | 8 | | 17 | | | Occupancy | 65.7 | | 51.3 | | 51.8 | | 28 | | 27 | | | Other Operating Expense | 107.7 | | 82.0 | | 78.7 | | 31 | | 37 | | | Total Noninterest Expense | $ | 1,323.6 | $ | 1,229.8 | $ | 1,168.9 | 8 | % | 13 | % | | End of Period Full-Time Equivalent Staff | 23,600 | | 23,100 | | 21,100 | | 2 | % | 12 | % |

Compensation expense increased sequentially primarily due to $30.4 million of severance-related charges and higher salary expense, partially offset by lower incentives. Compensation expense increased compared to the prior-year quarter primarily due to higher salary expense and $30.4 million of severance-related charges, partially offset by favorable currency translation.

Employee benefits expense decreased sequentially primarily due to a decline in pension-related expense, inclusive of a $6.8 million pension settlement charge in the current quarter as compared to a $17.0 million charge in the prior quarter, partially offset by higher medical costs. Employee benefits expense decreased compared to the prior-year quarter primarily due to lower ongoing pension expense associated with a plan remeasurement, partially offset by higher medical costs.

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

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

Occupancy expense increased sequentially and compared to the prior-year quarter primarily due to $14.0 million of charges related to early lease exits.

Other operating expense increased sequentially primarily due to higher business promotion, supplemental compensation plan expense and miscellaneous expense. Other operating expense increased compared to the prior-year quarter primarily due to higher staff-related expense, business promotion and miscellaneous expense.

PROVISION FOR INCOME TAX
% Change Q4 2022 vs.
($ In Millions) Q4 2022 Q3 2022 Q4 2021 Q3 2022 Q4 2021
Net Income
Income before Income Taxes $ 190.4 $ 524.5 $ 509.6 (64) % (63) %
Provision for Income Taxes 34.7 129.7 103.2 (73) (66)
Net Income $ 155.7 $ 394.8 $ 406.4 (61) % (62) %
Effective Tax Rate 18.2 % 24.7 % 20.2 % (650) bps (200) bps

bps - basis points

The effective tax rate decreased sequentially and from the prior-year quarter primarily due to the significant decrease in pretax earnings while tax benefits from tax-credit investments and tax-exempt income were constant or slightly increased. The decrease in the prior-year quarter was partially offset by a higher net impact from international operations, including limitations on the U.S. foreign tax credit.

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS | | --- || CAPITAL ACTIONS | | --- |

The Corporation returned approximately $158.9 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 $158.8 million to common stockholders. The Corporation repurchased 2,202 shares of common stock, all of which were withheld related to share-based compensation, at a total cost of $0.1 million ($87.02 average price per share). The Corporation also declared cash dividends totaling $4.7 million to preferred stockholders during the current quarter.

CAPITAL RATIOS

The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at December 31, 2022, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.

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

December 31, 2022* September 30, 2022 December 31, 2021
Capital Ratios - <br>Northern Trust Corporation Standardized Approach Advanced Approach Standardized Approach Advanced Approach Standardized Approach Advanced Approach Well-Capitalized Ratios Minimum Capital Ratios
Common Equity Tier 1 Capital 10.8 % 11.5 % 10.1 % 11.4 % 11.9 % 13.2 % N/A 4.5 %
Tier 1 Capital 11.8 12.5 11.1 12.5 12.9 14.3 6.0 6.0
Total Capital 13.9 14.5 12.2 13.5 14.1 15.3 10.0 8.0
Tier 1 Leverage 7.1 7.1 7.0 7.0 6.9 6.9 N/A 4.0
Supplementary Leverage N/A 7.9 N/A 7.7 N/A 8.2 N/A 3.0 December 31, 2022* September 30, 2022 December 31, 2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Capital Ratios - <br>The Northern Trust Company Standardized Approach Advanced Approach Standardized Approach Advanced Approach Standardized Approach Advanced Approach Well-Capitalized Ratios Minimum Capital Ratios
Common Equity Tier 1 Capital 11.6 % 12.4 % 10.7 % 12.2 % 12.0 % 13.5 % 6.5 % 4.5 %
Tier 1 Capital 11.6 12.4 10.7 12.2 12.0 13.5 8.0 6.0
Total Capital 13.5 14.2 11.6 13.0 13.0 14.4 10.0 8.0
Tier 1 Leverage 6.9 6.9 6.7 6.7 6.4 6.4 5.0 4.0
Supplementary Leverage N/A 7.7 N/A 7.4 N/A 7.6 3.0 3.0

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

| NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS | | --- || RECONCILIATION TO FULLY TAXABLE EQUIVALENT | | --- |

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

QUARTERS
2022 2021
($ in Millions) FOURTH THIRD SECOND FIRST FOURTH
Net Interest Income
Interest Income - GAAP $ 1,170.1 $ 799.3 $ 524.8 $ 383.5 $ 362.2
Add: FTE Adjustment 15.5 12.3 11.1 6.7 10.0
Interest Income (FTE) - Non-GAAP $ 1,185.6 $ 811.6 $ 535.9 $ 390.2 $ 372.2
Net Interest Income - GAAP $ 534.5 $ 513.0 $ 458.7 $ 381.0 $ 360.6
Add: FTE Adjustment 15.5 12.3 11.1 6.7 10.0
Net Interest Income (FTE) - Non-GAAP $ 550.0 $ 525.3 $ 469.8 $ 387.7 $ 370.6
Net Interest Margin - GAAP 1.58 % 1.54 % 1.31 % 1.03 % 0.96 %
Net Interest Margin (FTE) - Non-GAAP 1.63 % 1.58 % 1.35 % 1.05 % 0.99 %
Total Revenue
Total Revenue - GAAP $ 1,519.0 $ 1,754.8 $ 1,768.7 $ 1,718.7 $ 1,667.0
Add: FTE Adjustment 15.5 12.3 11.1 6.7 10.0
Total Revenue (FTE) - Non-GAAP $ 1,534.5 $ 1,767.1 $ 1,779.8 $ 1,725.4 $ 1,677.0
NORTHERN TRUST CORPORATION FOURTH 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 FOURTH QUARTER EARNINGS CONFERENCE CALL

Northern Trust’s fourth quarter earnings conference call will be webcast on January 19, 2023.

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

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

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

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 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 December 31, 2022, Northern Trust had assets under custody/administration of US$13.6 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.

NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA % Change(1)
--- --- --- --- --- --- --- --- --- --- --- --- ---
( In Millions Except Per Share Data) Q4 2022 vs.
Q3 2022 Q4 2021 Q3 2022 Q4 2021
Noninterest Income
Trust, Investment and Other Servicing Fees 1,042.1 $ 1,078.7 $ 1,111.0 (3) % (6) %
Foreign Exchange Trading Income 64.7 76.9 1 (15)
Treasury Management Fees 9.3 10.6 (9) (21)
Security Commissions and Trading Income 32.1 35.9 9 (2)
Other Operating Income 57.3 72.3 (18) (35)
Investment Security Gains (Losses), net (0.3) (0.3) N/M N/M
Total Noninterest Income 1,241.8 1,306.4 (21) (25)
Net Interest Income
Interest Income 799.3 362.2 46 N/M
Interest Expense 286.3 1.6 122 N/M
Net Interest Income 513.0 360.6 4 48
Total Revenue 1,754.8 1,667.0 (13) (9)
Provision for Credit Losses 0.5 (11.5) N/M N/M
Noninterest Expense
Compensation 553.3 510.2 6 15
Employee Benefits 109.9 107.9 (6) (4)
Outside Services 220.9 224.2 5 4
Equipment and Software 212.4 196.1 8 17
Occupancy 51.3 51.8 28 27
Other Operating Expense 82.0 78.7 31 37
Total Noninterest Expense 1,229.8 1,168.9 8 13
Income before Income Taxes 524.5 509.6 (64) (63)
Provision for Income Taxes 129.7 103.2 (73) (66)
NET INCOME 155.7 $ 394.8 $ 406.4 (61) % (62) %
Preferred Stock Dividends 16.2 4.7 (71) —
NET INCOME APPLICABLE TO COMMON STOCK 151.0 $ 378.6 $ 401.7 (60) % (62) %
Earnings Allocated to Participating Securities 3.2 3.0 (29) (26)
Earnings Allocated to Common and Potential Common Shares 148.7 $ 375.4 $ 398.7 (60) (63)
Per Common Share
Net Income
Basic 0.71 $ 1.80 $ 1.92 (61) % (63) %
Diluted 1.80 1.91 (61) (63)
Average Common Equity 10,094.5 $ 10,050.7 $ 10,956.7 — % (8) %
Return on Average Common Equity % 14.9 % 14.5 %
Return on Average Assets % 1.07 % 1.00 %
Cash Dividends Declared per Common Share 0.75 $ 0.75 $ 0.70 — % 7 %
Average Common Shares Outstanding (000s)
Basic 208,400 207,708
Diluted 208,889 208,593
Common Shares Outstanding (EOP) (000s) 208,416 207,762

All values are in US Dollars.

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

N/M - Not meaningful

EOP - End of period

NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information) STATEMENT OF INCOME DATA
--- --- --- --- --- --- --- --- ---
($ In Millions Except Per Share Data) TWELVE MONTHS
2022 2021 % Change(1)
Noninterest Income
Trust, Investment and Other Servicing Fees $ 4,432.6 $ 4,361.1 2 %
Foreign Exchange Trading Income 288.6 292.6 (1)
Treasury Management Fees 39.3 44.3 (11)
Security Commissions and Trading Income 136.2 140.2 (3)
Other Operating Income 191.3 243.9 (22)
Investment Security Gains (Losses), net (214.0) (0.3) N/M
Total Noninterest Income 4,874.0 5,081.8 (4)
Net Interest Income
Interest Income 2,877.7 1,406.5 105
Interest Expense 990.5 23.8 N/M
Net Interest Income 1,887.2 1,382.7 36
Total Revenue 6,761.2 6,464.5 5
Provision for Credit Losses 12.0 (81.5) N/M
Noninterest Expense
Compensation 2,248.0 2,011.0 12
Employee Benefits 437.4 431.4 1
Outside Services 880.3 849.4 4
Equipment and Software 838.8 736.3 14
Occupancy 219.1 208.7 5
Other Operating Expense 359.3 299.1 20
Total Noninterest Expense 4,982.9 4,535.9 10
Income before Income Taxes 1,766.3 2,010.1 (12)
Provision for Income Taxes 430.3 464.8 (7)
NET INCOME $ 1,336.0 $ 1,545.3 (14) %
Preferred Stock Dividends 41.8 41.8 —
NET INCOME APPLICABLE TO COMMON STOCK $ 1,294.2 $ 1,503.5 (14) %
Earnings Allocated to Participating Securities 11.8 12.9 (9)
Earnings Allocated to Common and Potential Common Shares $ 1,282.4 $ 1,490.6 (14) %
Per Common Share
Net Income
Basic $ 6.16 $ 7.16 (14) %
Diluted 6.14 7.14 (14)
Average Common Equity $ 10,196.6 $ 10,812.1 (6) %
Return on Average Common Equity 12.7 % 13.9 %
Return on Average Assets 0.88 % 0.99 %
Cash Dividends Declared per Common Share $ 2.90 $ 2.80 4 %
Average Common Shares Outstanding (000s)
Basic 208,309 208,076
Diluted 208,867 208,899
Common Shares Outstanding (EOP) (000s) 208,428 207,762

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

N/M - Not meaningful

EOP - End of period

NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
--- --- --- --- --- --- --- --- --- ---
( In Millions) % Change(1)
December 31, 2022 vs.
September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021
Assets
Federal Reserve and Other Central Bank Deposits 39,961.9 $ 39,582.4 $ 64,495.1 1 % (38) %
Interest-Bearing Due from and Deposits with Banks(2) 4,097.4 3,849.2 20 28
Federal Funds Sold 30.1 — 6 N/M
Securities Purchased under Agreements to Resell 1,166.2 686.4 (8) 56
Debt Securities
Available for Sale 26,979.3 38,010.5 (1) (30)
Held to Maturity 25,249.8 23,564.5 (1) 6
Trading Account 0.1 0.3 N/M N/M
Total Debt Securities 52,229.2 61,575.3 (1) (16)
Loans and Leases 43,991.9 40,480.6 (2) 6
Other Interest-Earning Assets(3) 1,641.3 1,189.4 8 49
Total Earning Assets 142,738.5 172,276.0 — (17)
Allowance for Credit Losses (154.4) (150.6) 4 7
Cash and Due from Banks and Other Central Bank Deposits(4) 2,000.3 1,244.1 (13) 40
Buildings and Equipment 469.2 488.7 7 2
Client Security Settlement Receivables 3,077.3 1,941.2 (45) (13)
Goodwill 679.0 706.2 2 (2)
Other Assets 11,029.7 7,384.2 (27) 10
Total Assets 155,036.7 $ 159,839.6 $ 183,889.8 (3) % (16) %
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other 31,128.6 $ 30,968.5 $ 35,003.1 1 % (11) %
Savings Certificates and Other Time 1,217.1 842.7 63 135
Non-U.S. Offices - Interest-Bearing 68,503.7 75,767.1 (4) (14)
Total Interest-Bearing Deposits 100,689.3 111,612.9 (2) (12)
Federal Funds Purchased 4,364.8 0.2 (57) N/M
Securities Sold under Agreements to Repurchase 561.4 531.9 1 7
Other Borrowings 7,153.6 3,583.8 6 112
Senior Notes 2,707.4 2,505.5 1 9
Long-Term Debt 1,068.3 1,145.7 93 80
Total Interest-Related Funds 116,544.8 119,380.0 (3) (5)
Demand and Other Noninterest-Bearing Deposits 27,858.1 48,315.5 (9) (48)
Other Liabilities 4,406.3 4,177.5 13 20
Total Liabilities 148,809.2 171,873.0 (3) (16)
Common Equity 10,145.5 11,131.9 2 (7)
Preferred Equity 884.9 884.9 — —
Total Equity 11,030.4 12,016.8 2 (6)
Total Liabilities and Stockholders’ Equity 155,036.7 $ 159,839.6 $ 183,889.8 (3) % (16) %

All values are in US Dollars.

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

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

(3)    Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.

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

NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
--- --- --- --- --- --- --- --- --- ---
( In Millions) % Change(1)
Q4 2022 vs.
Q3 2022 Q4 2021 Q3 2022 Q4 2021
Assets
Federal Reserve and Other Central Bank Deposits 32,755.2 $ 30,548.7 $ 40,986.0 7 % (20) %
Interest-Bearing Due from and Deposits with Banks(2) 3,976.8 4,777.6 5 (12)
Federal Funds Sold 5.1 0.1 175 N/M
Securities Purchased under Agreements to Resell 1,270.9 876.0 (8) 33
Debt Securities
Available for Sale 28,482.8 38,216.1 (6) (30)
Held to Maturity 25,126.6 22,960.0 — 9
Trading Account 0.4 0.5 N/M N/M
Total Debt Securities 53,609.8 61,176.6 (3) (15)
Loans and Leases 41,466.4 39,860.4 2 6
Other Interest-Earning Assets(3) 1,268.8 1,157.3 11 22 %
Total Earning Assets 132,146.5 148,834.0 1 (10)
Allowance for Credit Losses (154.1) (155.8) — (1)
Cash and Due from Banks and Other Central Bank Deposits(4) 1,903.1 2,123.6 (7) (16)
Buildings and Equipment 481.2 497.1 2 (1)
Client Security Settlement Receivables 1,667.1 1,638.5 9 10
Goodwill 685.5 705.4 — (3)
Other Assets 9,672.9 7,711.0 (3) 22
Total Assets 147,803.6 $ 146,402.2 $ 161,353.8 1 % (8) %
Liabilities and Stockholders’ Equity
Interest-Bearing Deposits
Savings, Money Market and Other 28,488.7 $ 29,089.3 $ 30,676.1 (2) % (7) %
Savings Certificates and Other Time 986.0 856.5 63 88
Non-U.S. Offices - Interest-Bearing 64,057.3 71,098.6 — (10)
Total Interest-Bearing Deposits 94,132.6 102,631.2 — (8)
Federal Funds Purchased 1,967.5 0.2 37 N/M
Securities Sold under Agreements to Repurchase 489.6 313.5 (20) 25
Other Borrowings 5,991.1 4,788.9 32 66
Senior Notes 2,969.6 2,510.3 (8) 8
Long-Term Debt 1,087.6 1,150.8 58 49
Floating Rate Capital Debt — 42.3 N/M (100)
Total Interest-Related Funds 106,638.0 111,437.2 3 (2)
Demand and Other Noninterest-Bearing Deposits 24,355.5 33,389.6 (9) (34)
Other Liabilities 4,473.1 4,685.4 13 8
Total Liabilities 135,466.6 149,512.2 1 (8)
Common Equity 10,050.7 10,956.7 — (8)
Preferred Equity 884.9 884.9 — —
Total Equity 10,935.6 11,841.6 — (7)
Total Liabilities and Stockholders’ Equity 147,803.6 $ 146,402.2 $ 161,353.8 1 % (8) %

All values are in US Dollars.

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

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

(3)     Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.

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

NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
( In Millions Except Per Share Data) 2021
THIRD SECOND FIRST FOURTH
Net Income Summary
Trust, Investment and Other Servicing Fees 1,042.1 $ 1,078.7 $ 1,143.4 $ 1,168.4 $ 1,111.0
Other Noninterest Income 163.1 166.6 169.3 195.4
Net Interest Income 513.0 458.7 381.0 360.6
Total Revenue 1,754.8 1,768.7 1,718.7 1,667.0
Provision for Credit Losses 0.5 4.5 2.0 (11.5)
Noninterest Expense 1,229.8 1,223.6 1,205.9 1,168.9
Income before Income Taxes 524.5 540.6 510.8 509.6
Provision for Income Taxes 129.7 144.4 121.5 103.2
Net Income 155.7 $ 394.8 $ 396.2 $ 389.3 $ 406.4
Per Common Share
Net Income - Basic 0.71 $ 1.80 $ 1.86 $ 1.78 $ 1.92
- Diluted 1.80 1.86 1.77 1.91
Cash Dividends Declared per Common Share 0.75 0.70 0.70 0.70
Book Value (EOP) 48.68 48.87 50.51 53.58
Market Value (EOP) 85.56 96.48 116.45 119.61
Financial Ratios
Return on Average Common Equity % 14.9 % 15.7 % 14.2 % 14.5 %
Return on Average Assets 1.07 1.03 0.97 1.00
Net Interest Margin (GAAP) 1.54 1.31 1.03 0.96
Net Interest Margin (FTE*) 1.58 1.35 1.05 0.99
Assets Under Custody / Administration ( in Billions) - End Of Period
Asset Servicing 12,705.5 $ 11,954.0 $ 12,812.2 $ 14,513.0 $ 15,183.2
Wealth Management 868.0 921.5 1,031.1 1,065.6
Total Assets Under Custody / Administration 13,604.0 $ 12,822.0 $ 13,733.7 $ 15,544.1 $ 16,248.8
Assets Under Custody ( In Billions) - End Of Period
Asset Servicing 9,712.3 $ 9,125.5 $ 9,771.2 $ 10,987.5 $ 11,554.8
Wealth Management 860.8 913.0 1,022.9 1,057.5
Total Assets Under Custody 10,604.6 $ 9,986.3 $ 10,684.2 $ 12,010.4 $ 12,612.3
Assets Under Management ( In Billions) - End Of Period
Asset Servicing 898.1 $ 873.7 $ 950.0 $ 1,091.6 $ 1,191.0
Wealth Management 336.2 352.8 396.2 416.1
Total Assets Under Management 1,249.5 $ 1,209.9 $ 1,302.8 $ 1,487.8 $ 1,607.1
Asset Quality ( In Millions) - End Of Period
Nonaccrual Loans and Leases 45.9 $ 76.4 $ 89.7 $ 100.8 $ 122.3
Other Real Estate Owned (OREO) — 0.1 0.2 3.0
Total Nonaccrual Assets 45.9 $ 76.4 $ 89.8 $ 101.0 $ 125.3
Nonaccrual Assets / Loans and Leases and OREO % 0.17 % 0.22 % 0.26 % 0.31 %
Gross Charge-offs (0.5) $ (5.4) $ — $ (0.1) $ (0.3)
Gross Recoveries 0.9 5.5 3.3 1.4
Net Recoveries (Charge-offs) — $ (4.5) $ 5.5 $ 3.2 $ 1.1
Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases % (0.04) % 0.05 % 0.03 % 0.01 %
Allowance for Credit Losses Assigned to:
Loans and Leases 144.3 $ 138.7 $ 138.2 $ 136.3 $ 138.4
Undrawn Loan Commitments and Standby Letters of Credit 40.7 43.5 37.5 34.1
Debt Securities and Other Financial Assets 16.5 18.2 16.1 12.2
Loans and Leases Allowance / Nonaccrual Loans and Leases x 1.8 x 1.5 x 1.4 x 1.1 x

All values are in US Dollars.

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

13

q4presentationmaterials

1northerntrust.com | © 2023 Northern Trustnortherntrust.co | 2023 orthern Northern Trust Corporation .Fourth Quarter 2022 Quarterly Earnings Review . January 19, 2023 Exhibit 99.2

2northerntrust.com | © 2023 Northern Trust 2Q22 End of Period Month Lag1 Quarter Lag2 YoY Seq YoY Seq YoY Seq S&P 500 (19.4)% 7.1% (14.4)% (2.8)% (16.8)% (5.3)% MSCI EAFE Local (9.5)% 8.4% (9.0)% (1.3)% (13.5)% (4.3)% 1 month Libor (Avg) 381 bps 144 bps 3 month Libor (Avg) 434 bps 151 bps EXECUTIVE SUMMARY 1 Month Lag YoY represents the average month-ends of Sept. 2022 - Nov. 2022 vs. Sept. 2021 - Nov. 2021. Month Lag Seq represents the average month-ends of Sept. 2022 - Nov. 2022 vs. Jun. 2022 - Aug. 2022. 2 Quarter Lag YoY represents quarter-end Sept. 2022 vs. Sept. 2021. Quarter Lag Seq represents quarter-end Sept. 2022 vs. Jun. 2022. Key Macroeconomic Factors  Net income of $155.7 million, earnings per diluted common share of $0.71, return on average common equity of 5.9%  Results reflect the inclusion of $265.8 million in pre-tax charges reflecting $199.1 million in net income impacts and $0.94 in earnings per share impacts.  The current quarter included:  $213.0 million pre-tax investment security losses related to the intent to sell certain available-for-sale debt securities  $32.0 million pre-tax severance-related charges  $14.0 million pre-tax occupancy charges  $6.8 million pre-tax pension settlement charge  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 $14.2 million increase to Trust, Investment and Other Servicing Fees, with:  $5.6 million ($2.9 million in Other Asset Servicing fees and $2.7 million in Wealth Management) related to amounts previously recorded in Other Operating Income in the prior year  $8.6 million related 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 | © 2023 Northern Trust SUMMARY RESULTS & KEY METRICS $ in millions (except EPS and as noted) % Change Vs. 4Q 2022 4Q 2021 3Q 2022 Revenue (FTE1) $1,534.5 (8)% (13)% Noninterest Expense 1,323.6 13% 8% Provision for Credit Losses 5.0 N/M N/M Net Income $155.7 (62)% (61)% Diluted Earnings per Share $0.71 (63)% (61)% Return on Average Common Equity2 5.9% 14.5% 14.9% Pre-Tax Margin1,2 13.4% 31.0% 30.4% Expense to Trust Fee Ratio2 127% 105% 114% Assets under Custody / Administration3 (in billions) $13,604 (16)% +6% Assets under Custody3 (in billions) $10,605 (16)% +6% Assets under Management3 (in billions) $1,250 (22)% +3% 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 12. 2 Actual numbers for all periods, not % change. 3 Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. N/M - Not meaningful Results include impact of charges highlighted on page 2

4northerntrust.com | © 2023 Northern Trust TOTAL REVENUE $ in millions Total Revenue (FTE1) $1,111 $1,168 $1,143 $1,079 $1,042 $77 $81 $78 $65 $65 $119 $88 $89 $98 $(123) $371 $388 $470 $525 $550 $1,677 $1,725 $1,780 $1,767 $1,535 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 -8% -13% Trust, Investment and Other Servicing Fees FX Trading Income Other Noninterest Income2 Net Interest Income (FTE1)  Trust, Investment & Other Servicing Fees were down 6% year-over-year and down 3% sequentially.  Foreign Exchange Trading Income was down 15% year-over-year and up 1% sequentially.  Other Noninterest Income was a loss of $123.0 million, which included $213.0 million of investment security losses.  Net Interest Income (FTE1) was up 48% year-over-year and up 5% 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 12. 2 Other Noninterest Income includes Security Commissions and Trading Income, Treasury Management Fees, Other Operating Income, and Investment Security Gains (Losses), net. Results include impact of charges highlighted on page 2

5northerntrust.com | © 2023 Northern Trust TRUST, INVESTMENT & OTHER SERVICING FEES $ in millions (except as noted) % Change Vs. Trust, Investment & Other Servicing Fees 4Q 2022 4Q 2021 3Q 2022 Custody & Fund Administration $406.3 (11)% – % Investment Management 123.8 +9% (9)% Securities Lending 19.3 +2% (11)% Other 38.6 +9% +1% Total Asset Servicing $588.0 (6)% (3)% Central $162.2 (11)% (5)% East 117.8 (11)% (5)% West 89.5 (9)% (3)% Global Family Office (GFO) 84.6 +16% (3)% Total Wealth Management $454.1 (7)% (5)% Client Assets1 (in billions): Asset Servicing AUC/A $12,706 (16)% +6% Asset Servicing AUC $9,712 (16)% +6% Asset Servicing AUM $898 (25)% +3% Securities Lending Collateral $148 (24)% (9)% Wealth Management AUC/A $899 (16)% +4% Wealth Management AUC $892 (16)% +4% Wealth Management AUM $351 (16)% +5%  Asset Servicing Trust, Investment & Other Servicing Fees were down 6% year-over-year and down 3% sequentially.  Custody and fund administration fees decreased from the prior-year quarter primarily due to unfavorable markets and unfavorable currency translation, partially offset by new business. Custody and fund administration fees were flat sequentially.  Investment management fees increased from the prior-year quarter primarily due to lower money market fund fee waivers, partially offset by asset outflows and unfavorable markets. Investment management fees decreased sequentially primarily due to asset outflows and unfavorable markets.  Other trust, investment and other servicing fees increased from the prior-year quarter primarily due to the accounting reclassification previously discussed.  Wealth Management Trust, Investment & Other Servicing Fees were down 7% year-over-year and down 5% sequentially.  Fees in the regions (Central, East and West) decreased from the prior-year quarter primarily due to unfavorable markets and asset outflows, partially offset by lower money market fund fee waivers. Fees in the regions decreased sequentially primarily due to unfavorable markets and asset outflows.  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. Fees in GFO decreased sequentially primarily due to asset outflows and unfavorable markets. 1 Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. Results include impact of charges highlighted on page 2

6northerntrust.com | © 2023 Northern Trust NET INTEREST INCOME Average Earning Assets ($ in billions) $148.8 $149.8 $139.9 $132.1 $133.8 0.99% 1.05% 1.35% 1.58% 1.63% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 NII (FTE1) in millions $ 550.0 Loans & Leases Securities Deposits w/ Banks Fed Deposits & Other NIM (FTE1)  Net Interest Income (FTE1) was up 48% year-over- year and up 5% sequentially. Net interest margin (FTE1) was 1.63%.  Average Earning Assets were down 10% year-over- year and up 1% sequentially.  Average Total Deposits were down 14% year-over- year and down 2% sequentially.  Net Interest Margin (FTE1) increased 64 basis points from the prior-year quarter and increased 5 basis points sequentially. The increase relative to the prior-year quarter was primarily due to higher average interest rates. The sequential increase was primarily due to higher average interest rates, partially offset by an unfavorable balance sheet mix shift. 1 Net interest income and net interest margin stated on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. $ 525.3$ 370.6 $ 387.7 $469.8

7northerntrust.com | © 2023 Northern Trust NONINTEREST EXPENSE $ in millions Total Noninterest Expense $618 $668 $666 $663 $688 $224 $213 $213 $221 $233 $196 $194 $204 $212 $229 $52 $51 $51 $51 $66 $79 $80 $90 $82 $108 $1,169 $1,206 $1,224 $1,230 $1,324 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 +13% +8% Compensation & Benefits Outside Services Equipment & Software Occupancy Other  Expenses totaled $1.3 billion in the fourth quarter, up 13% year-over-year and up 8% sequentially.  The year-over-year growth in expenses was primarily driven by increases in compensation, equipment and software related costs, other operating expense, occupancy, and outside services, partially offset by decreases in employee benefits.  The sequential expense increase was driven by increases in compensation, other operating expense, equipment and software, occupancy, and outside services, partially offset by decreases in employee benefits.  Expenses included the following: Severance-related charges of $32.0 million in 4Q22 and $6.1 million in 4Q21. Occupancy charges of $14.0 million in 4Q22. Pension settlement charge of $6.8 million in 4Q22 and $3.4 million in 4Q21 Categories may not sum due to rounding. Results include impact of charges highlighted on page 2

8northerntrust.com | © 2023 Northern Trust 1 Revenue and pre-tax margin stated on an FTE basis is a non-GAAP financial measure. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. 2 Actual numbers for all periods, not % change. 3 Client assets for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission. $ in millions (except EPS and as noted) RESULTS & KEY METRICS: FULL YEAR 2022 % Change Vs. FY 2022 FY 2021 Revenue (FTE1) $6,806.8 +5% Noninterest Expense 4,982.9 +10% Provision for Credit Losses 12.0 N/M Net Income $1,336.0 (14)% Diluted Earnings per Share $6.14 (14)% Return on Equity2 12.7% 13.9% Pre-Tax Margin1,2 26.6% 31.5% Expense to Trust Fee Ratio2 112% 104% Assets under Custody / Administration3 (in billions) $13,604 (16)% Assets under Custody3 (in billions) $10,605 (16)% Global Custody Assets3 (in billions) $6,907 (16)% Assets under Management3 (in billions) $1,250 (22)%  Revenue includes the following items:  FY 2022 includes $213.0 million pre-tax investment securities losses related to the intent to sell certain available-for-sale debt securities.  FY 2021 includes $13.0 million pre-tax gain relating to property sales recorded in Other Operating Income.  FY 2022 Implementation of certain accounting reclassification changes resulting in a $65.6 million increase to Trust, Investment and Other Servicing fees in FY 2022, with $25.6 million relating to amounts previously recorded in Other Operating Income, and $40.0 million related to amounts previously recorded as a reduction in Other Operating Expense.  Noninterest Expenses includes the following, all pre-tax:  Pension settlement charges of $44.1 million in FY 2022, $27.9 million in FY 2021.  Severance-related charges of $32.0 million in FY 2022, $8.5 million in FY 2021.  Occupancy charges of $14.0 million in FY 2022. Results include impact of charges highlighted on page 2

9northerntrust.com | © 2023 Northern Trust 1 Net interest income and total revenue on an FTE basis are non-GAAP financial measures. A reconciliation of these measures to reported results prepared in accordance with U.S. GAAP is included in the Appendix on page 12. $ in millions REVENUE AND EXPENSE: ANNUAL TRENDS $3,995 $4,361 $4,433 $290 $293 $289 $372 $428 $153 $1,478 $1,418 $1,933 $6,135 $6,500 $6,807 2020 2021 2022 +6% -4% +15% +1% +9% +5% +36% -64% -1% +2% Trust, Investment and Other Servicing Fees FX Trading Income Other Noninterest Income Net Interest Income (FTE1) Total Revenue (FTE1) Total Noninterest Expense $2,335 $2,442 $2,685 $763 $849 $880 $674 $736 $839 $230 $209 $219 $347 $299 $359 $4,348 $4,536 $4,983 1 2 3 +10% +5% +14% +4% +10% +20%+4% -9% +9% +11% +5% -14% Equipment & Software Outside Services Compensation & Benefits Occupancy Other Results include impact of charges highlighted on page 2

10northerntrust.com | © 2023 Northern Trust CAPITAL Northern Trust Corporation Capital Ratios Advanced Approach Common Equity Tier 1 11.5% Tier 1 12.5% Total 14.5% Tier 1 Leverage 7.1% Supplementary Leverage 7.9% Standardized Approach Common Equity Tier 1 10.8% Tier 1 11.8% Total 13.9% Tier 1 Leverage 7.1% Capital Return  Declared $158.8 million in common stock dividends and $4.7 million in preferred stock dividends in 4Q 2022.  Repurchased $0.1 million of common stock in 4Q 2022.  Accumulated other comprehensive income (loss) was ($1.6 billion) as of December 31, 2022, a change of $0.2 billion during the fourth quarter.  Completed the sale of $2.1 billion of non- high-quality liquid assets (HQLA) available- for-sale debt securities in early 2023. As of December 31, 2022, capital ratios for the current quarter are considered preliminary until the Form 10-K 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%.

11northerntrust.com | © 2023 Northern Trustnortherntrust.co | 2023 orthern Appendix

12northerntrust.com | © 2023 Northern Trust 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. 4Q22 3Q22 2Q22 1Q22 4Q21 FY 2022 FY 2021 Reported 1,519.0$ 1,754.8$ 1,768.7$ 1,718.7$ 1,667.0$ 6,761.2$ 6,464.5$ FTE Adj. 15.5$ 12.3$ 11.1$ 6.7$ 10.0$ 45.6$ 35.6$ FTE 1,534.5$ 1,767.1$ 1,779.8$ 1,725.4$ 1,677.0$ 6,806.8$ 6,500.1$ 4Q22 3Q22 2Q22 1Q22 4Q21 FY 2022 FY 2021 Reported 534.5$ 513.0$ 458.7$ 381.0$ 360.6$ 1,887.2$ 1,382.7$ FTE Adj. 15.5$ 12.3$ 11.1$ 6.7$ 10.0$ 45.6$ 35.6$ FTE 550.0$ 525.3$ 469.8$ 387.7$ 370.6$ 1,932.8$ 1,418.3$ NIM - Reported 1.58% 1.54% 1.31% 1.03% 0.96% NIM - FTE 1.63% 1.58% 1.35% 1.05% 0.99% 4Q22 3Q22 4Q21 FY 2022 FY 2021 Revenue - Reported 1,519.0$ 1,754.8$ 1,667.0$ 6,761.2$ 6,464.5$ Pre-Tax Income - Reported 190.4$ 524.5$ 509.6$ 1,766.3$ 2,010.1$ FTE Adj.* 15.5$ 12.3$ 10.0$ 45.6$ 35.6$ Revenue - FTE 1,534.5$ 1,767.1$ 1,677.0$ 6,806.8$ 6,500.1$ Pre-Tax Income - FTE 205.9$ 536.8$ 519.6$ 1,811.9$ 2,045.7$ Pre-Tax Margin - Reported 12.5% 29.9% 30.6% 26.1% 31.1% Pre-Tax Margin - FTE 13.4% 30.4% 31.0% 26.6% 31.5% * FTE Adjustment applies to both revenue and pre-tax income Revenue Net Interest Income Pre-Tax Margin

13northerntrust.com | © 2023 Northern Trust 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 Fourth Quarter 2022 earnings press release, which is available at: www.northerntrust.com/about-us/investor-relations

Document

Exhibit 99.3

reportsa29.jpg

Financial Trends

Fourth Quarter 2022

January 19, 2023

Please direct inquiries to:

Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or jennifer.childe@ntrs.com
Briar Rose
Vice President, Investor Relations
(312) 557-5297 or briar.rose@ntrs.com

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

TABLE OF CONTENTS
1 7
Financial Summary Balance Sheet Mix Trends
2 8
Income Statement Interest Rate Trends
3 9
Net Income Trends Asset Quality
4 10
Fee Detail Trust Assets
5 11
Balance Sheet (EOP) Reconciliation to FTE
6 12
Balance Sheet Trends Reconciliation to FTE (Ratios)
Northern Trust Corporation
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
FINANCIAL SUMMARY
( in Millions except per share information)
2021 2022
2018 2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Profitability:
$ 1,556.4 $ 1,492.2 $ 1,209.3 $ 1,545.3 $ 1,336.0 Net Income $ 375.1 $ 368.1 $ 395.7 $ 406.4 $ 389.3 $ 396.2 $ 394.8 $ 155.7
1,489.9 1,428.9 1,141.0 1,490.6 1,282.4 Earnings Allocated to Common and Potential 355.2 360.2 376.5 398.7 370.0 388.3 375.4 148.7
Common Shares
$ 6.68 $ 6.66 $ 5.48 $ 7.16 $ 6.16 Basic Earnings Per Share $ 1.71 $ 1.73 $ 1.81 $ 1.92 $ 1.78 $ 1.86 $ 1.80 $ 0.71
6.64 6.63 5.46 7.14 6.14 Diluted Earnings Per Share 1.70 1.72 1.80 1.91 1.77 1.86 1.80 0.71
35 % — % (18 %) 31 % (14 %) Diluted EPS Growth over Previous Year 10 % 18 % 36 % 70 % 4 % 8 % — % (63 %)
16.2 % 14.9 % 11.2 % 13.9 % 12.7 % Return on Average Common Equity 13.7 % 13.7 % 13.7 % 14.5 % 14.2 % 15.7 % 14.9 % 5.9 %
1.27 % 1.27 % 0.88 % 0.99 % 0.88 % Return on Average Assets 0.99 % 0.96 % 1.00 % 1.00 % 0.97 % 1.03 % 1.07 % 0.42 %
33.3 % 32.4 % 27.1 % 31.5 % 26.6 % Profit Margin (pre-tax) (FTE)(1) 31.6 % 31.1 % 32.2 % 31.0 % 30.0 % 31.0 % 30.4 % 13.4 %
25.9 % 24.4 % 19.7 % 23.8 % 19.6 % Profit Margin (after-tax) (FTE)(1) 23.6 % 23.2 % 24.1 % 24.2 % 22.6 % 22.3 % 22.3 % 10.1 %
72.3 % 72.0 % 75.9 % 78.2 % 71.6 % Noninterest Income to Total Revenue (FTE)(1) 78.2 % 78.4 % 78.3 % 77.9 % 77.5 % 73.6 % 70.3 % 64.2 %
62.5 % 63.1 % 65.1 % 67.1 % 65.1 % Trust Fees to Total Revenue (FTE)(1) 66.9 % 67.7 % 67.6 % 66.2 % 67.7 % 64.2 % 61.0 % 67.9 %
20.5 % 23.2 % 25.7 % 23.1 % 24.4 % Effective Tax Rate (US GAAP) 24.4 % 24.3 % 23.6 % 20.2 % 23.8 % 26.7 % 24.7 % 18.2 %
22.1 % 24.5 % 27.2 % 24.5 % 26.3 % Effective Tax Rate (FTE)(1) 25.4 % 25.6 % 25.2 % 21.8 % 24.8 % 28.2 % 26.4 % 24.4 %
Capital Ratios:(2)
Standardized Approach
12.9 % 12.7 % 12.8 % 11.9 % 10.8 % Common Equity Tier 1 Capital 12.0 % 12.0 % 11.9 % 11.9 % 11.4 % 10.5 % 10.1 % 10.8 %
14.1 % 14.5 % 13.9 % 12.9 % 11.8 % Tier 1 Capital 13.0 % 13.1 % 12.9 % 12.9 % 12.4 % 11.5 % 11.1 % 11.8 %
16.1 % 16.3 % 15.6 % 14.1 % 13.9 % Total Capital 14.5 % 14.5 % 14.3 % 14.1 % 13.6 % 12.6 % 12.2 % 13.9 %
8.0 % 8.7 % 7.6 % 6.9 % 7.1 % Tier 1 Leverage 6.9 % 7.1 % 7.1 % 6.9 % 6.5 % 6.7 % 7.0 % 7.1 %
Advanced Approach
13.7 % 13.2 % 13.4 % 13.2 % 11.5 % Common Equity Tier 1 Capital 12.8 % 13.1 % 13.0 % 13.2 % 12.1 % 11.6 % 11.4 % 11.5 %
15.0 % 15.0 % 14.5 % 14.3 % 12.5 % Tier 1 Capital 14.0 % 14.2 % 14.1 % 14.3 % 13.2 % 12.7 % 12.5 % 12.5 %
16.9 % 16.8 % 15.9 % 15.3 % 14.5 % Total Capital 15.2 % 15.5 % 15.4 % 15.3 % 14.2 % 13.7 % 13.5 % 14.5 %
8.0 % 8.7 % 7.6 % 6.9 % 7.1 % Tier 1 Leverage 6.9 % 7.1 % 7.1 % 6.9 % 6.5 % 6.7 % 7.0 % 7.1 %
7.0 % 7.6 % 8.6 % 8.2 % 7.9 % Supplementary Leverage (3) (4) 8.1 % 8.2 % 8.4 % 8.2 % 7.9 % 7.6 % 7.7 % 7.9 %
Per Share Information / Ratios:
$ 1.94 $ 2.60 $ 2.80 $ 2.80 $ 2.90 Cash Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.75 $ 0.75
29 % 39 % 51 % 39 % 47 % Dividend Payout Ratio 41 % 41 % 39 % 37 % 40 % 38 % 42 % 106 %
$ 83.59 $ 106.24 $ 93.14 $ 119.61 $ 88.49 Market Value Per Share (End of Period) $ 105.11 $ 115.62 $ 107.81 $ 119.61 $ 116.45 $ 96.48 $ 85.56 $ 88.49
12.6 16.0 17.1 16.8 14.4 Stock Price Multiple of Earnings 18.8 19.7 17.0 16.8 16.2 13.1 11.7 14.4
(based on trailing 4 quarters of diluted EPS)
$ 43.95 $ 46.82 $ 51.87 $ 53.58 $ 49.78 Book Value Per Common Share (End of Period) $ 50.80 $ 52.49 $ 53.04 $ 53.58 $ 50.51 $ 48.87 $ 48.68 $ 49.78
Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
Capital ratios for the current quarter are considered preliminary until the Form 10-K is filed with the Securities and Exchange Commission.
Effective January 1, 2018, the Corporation and Bank are subject to a minimum supplementary leverage ratio of 3 percent.
From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.

All values are in US Dollars.

Northern Trust Corporation
INCOME STATEMENT
( in Millions except per share information)
CHANGE FOURTH QUARTER CHANGE
2021 % 2022 2021 %
2,496.3 $ 2,487.3 — % Asset Servicing Trust, Investment and Other Servicing Fees $ 588.0 $ 625.1 (6) %
1,873.8 62.5 3 % WM Trust, Investment and Other Servicing Fees 454.1 485.9 (31.8) (7) %
4,361.1 71.5 2 % Total Fees 1,042.1 1,111.0 (68.9) (6) %
292.6 (4.0) (1) % Foreign Exchange Trading Income 65.4 76.9 (11.5) (15) %
44.3 (5.0) (11) % Treasury Management Fees 8.3 10.6 (2.3) (21) %
140.2 (4.0) (3) % Security Commissions and Trading Income 35.1 35.9 (0.8) (2) %
243.9 (52.6) (22) % Other Operating Income 47.3 72.3 (25.0) (35) %
(0.3) (213.7) N/M Investment Security Gains (Losses), net (213.7) (0.3) (213.4) N/M
5,081.8 (207.8) (4) % Total Noninterest Income 984.5 1,306.4 (321.9) (25) %
1,442.1 1,481.2 103 % Interest Income (FTE*) 1,185.6 372.2 813.4 N/M
23.8 966.7 N/M Interest Expense 635.6 1.6 634.0 N/M
1,418.3 514.5 36 % Net Interest Income (FTE*) 550.0 370.6 179.4 48 %
6,500.1 306.7 5 % Total Revenue (FTE*) 1,534.5 1,677.0 (142.5) (8) %
(81.5) 93.5 N/M Provision for Credit Losses 5.0 (11.5) 16.5 N/M
2,011.0 237.0 12 % Compensation 584.3 510.2 74.1 15 %
431.4 6.0 1 % Employee Benefits 103.6 107.9 (4.3) (4) %
849.4 30.9 4 % Outside Services 232.9 224.2 8.7 4 %
736.3 102.5 14 % Equipment and Software 229.4 196.1 33.3 17 %
208.7 10.4 5 % Occupancy 65.7 51.8 13.9 27 %
299.1 60.2 20 % Other Operating Expense 107.7 78.7 29.0 37 %
4,535.9 447.0 10 % Total Noninterest Expense 1,323.6 1,168.9 154.7 13 %
2,045.7 (233.8) (11) % Income before Income Taxes (FTE*) 205.9 519.6 (313.7) (60) %
464.8 (34.5) (7) % Provision for Income Taxes 34.7 103.2 (68.5) (66) %
35.6 10.0 28 % Taxable Equivalent Adjustment 15.5 10.0 5.5 55 %
500.4 (24.5) (5) % Total Taxes (FTE*) 50.2 113.2 (63.0) (56) %
1,336.0 $ 1,545.3 (14) % Net Income $ 155.7 $ 406.4 (62) %
41.8 $ 41.8 — % Dividends on Preferred Stock $ 4.7 $ 4.7 — %
12.9 (1.1) (9) % Earnings Allocated to Participating Securities 2.3 3.0 (0.7) (26) %
1,490.6 (208.2) (14) % Earnings Allocated to Common and Potential Common Shares 148.7 398.7 (250.0) (63) %
6.16 $ 7.16 (14) % Earnings Per Share - Basic $ 0.71 $ 1.92 (63) %
6.14 $ 7.14 (14) % Earnings Per Share - Diluted $ 0.71 $ 1.91 (63) %
208,076 Average Basic Shares (000s) 208,423 207,708
208,899 Average Diluted Shares (000s) 208,894 208,593
207,762 End of Period Shares Outstanding (000s) 208,428 207,762

All values are in US Dollars.

Northern Trust Corporation
NET INCOME TRENDS
( in Millions except per share information)
2021 2022
2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2,211.5 2,321.6 2,487.3 2,496.3 Asset Servicing Trust, Investment and Other Servicing Fees 620.5 611.5 630.2 625.1 662.4 642.7 603.2 588.0
1,640.6 1,673.4 1,873.8 1,936.3 WM Trust, Investment and Other Servicing Fees 443.2 463.9 480.8 485.9 506.0 500.7 475.5 454.1
3,852.1 3,995.0 4,361.1 4,432.6 Total Fees 1,063.7 1,075.4 1,111.0 1,111.0 1,168.4 1,143.4 1,078.7 1,042.1
250.9 290.4 292.6 288.6 Foreign Exchange Trading Income 78.7 70.6 66.4 76.9 80.9 77.6 64.7 65.4
44.5 45.4 44.3 39.3 Treasury Management Fees 11.2 11.3 11.2 10.6 11.1 10.6 9.3 8.3
103.6 133.2 140.2 136.2 Security Commissions and Trading Income 34.8 33.0 36.5 35.9 36.2 32.8 32.1 35.1
145.5 194.0 243.9 191.3 Other Operating Income 54.9 54.4 62.3 72.3 41.1 45.6 57.3 47.3
(1.4) (0.4) (0.3) (214.0) Investment Security Gains (Losses), net — — — (0.3) — — (0.3) (213.7)
4,395.2 4,657.6 5,081.8 4,874.0 Total Noninterest Income 1,243.3 1,244.7 1,287.4 1,306.4 1,337.7 1,310.0 1,241.8 984.5
1,710.7 1,477.6 1,418.3 1,932.8 Net Interest Income (FTE*) 346.7 343.9 357.1 370.6 387.7 469.8 525.3 550.0
6,105.9 6,135.2 6,500.1 6,806.8 Total Revenue (FTE*) 1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 1,534.5
(14.5) 125.0 (81.5) 12.0 Provision for Credit Losses (30.0) (27.0) (13.0) (11.5) 2.0 4.5 0.5 5.0
1,859.0 1,947.1 2,011.0 2,248.0 Compensation 518.5 486.3 496.0 510.2 563.9 546.5 553.3 584.3
355.2 387.7 431.4 437.4 Employee Benefits 103.4 118.4 101.7 107.9 104.3 119.6 109.9 103.6
774.5 763.1 849.4 880.3 Outside Services 196.4 218.1 210.7 224.2 213.4 213.1 220.9 232.9
612.1 673.5 736.3 838.8 Equipment and Software 176.7 178.3 185.2 196.1 193.5 203.5 212.4 229.4
212.9 230.1 208.7 219.1 Occupancy 50.8 52.2 53.9 51.8 51.1 51.0 51.3 65.7
329.8 346.7 299.1 359.3 Other Operating Expense 71.7 67.5 81.2 78.7 79.7 89.9 82.0 107.7
4,143.5 4,348.2 4,535.9 4,982.9 Total Noninterest Expense 1,117.5 1,120.8 1,128.7 1,168.9 1,205.9 1,223.6 1,229.8 1,323.6
1,976.9 1,662.0 2,045.7 1,811.9 Income before Income Taxes (FTE*) 502.5 494.8 528.8 519.6 517.5 551.7 536.8 205.9
451.9 418.3 464.8 430.3 Provision for Income Taxes 120.8 118.4 122.4 103.2 121.5 144.4 129.7 34.7
32.8 34.4 35.6 45.6 Taxable Equivalent Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
484.7 452.7 500.4 475.9 Total Taxes (FTE*) 127.4 126.7 133.1 113.2 128.2 155.5 142.0 50.2
$ 1,492.2 $ 1,209.3 $ 1,545.3 $ 1,336.0 Net Income $ 375.1 $ 368.1 $ 395.7 $ 406.4 $ 389.3 $ 396.2 394.8 $ 155.7
$ 6.66 $ 5.48 $ 7.16 $ 6.16 Earnings Per Share - Basic $ 1.71 $ 1.73 $ 1.81 $ 1.92 $ 1.78 $ 1.86 $ 1.80 $ 0.71
6.63 5.46 7.14 6.14 Earnings Per Share - Diluted 1.70 1.72 1.80 1.91 1.77 1.86 1.80 0.71
215,601 209,008 208,899 208,867 Average Diluted Shares (000s) 208,946 209,138 208,923 208,593 208,809 208,878 208,889 208,894
$ 46.4 $ 56.2 $ 41.8 $ 41.8 Preferred Dividends** $ 16.2 $ 4.7 $ 16.2 $ 4.7 $ 16.2 $ 4.7 $ 16.2 $ 4.7

All values are in US Dollars.

Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
( in Millions)
2021 2022
2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Asset Servicing
1,501.1 $ 1,549.3 $ 1,586.1 $ 1,818.8 $ 1,700.1 Custody & Fund Administration $ 446.0 $ 454.9 $ 460.2 $ 457.7 $ 452.7 $ 433.8 $ 407.3 $ 406.3
445.7 511.1 443.5 555.1 Investment Management 115.9 100.7 113.6 113.3 146.9 148.4 136.0 123.8
87.2 88.0 76.7 81.4 Securities Lending 18.2 19.5 20.2 18.8 18.8 21.6 21.7 19.3
129.3 136.4 148.3 159.7 Other 40.4 36.4 36.2 35.3 44.0 38.9 38.2 38.6
2,173.1 $ 2,211.5 $ 2,321.6 $ 2,487.3 $ 2,496.3 Total Asset Servicing Trust, Investment and Other Servicing Fees $ 620.5 $ 611.5 $ 630.2 $ 625.1 $ 662.4 $ 642.7 $ 603.2 $ 588.0
Wealth Management
607.8 $ 619.3 $ 607.3 $ 698.7 $ 692.6 Central $ 164.2 $ 174.3 $ 178.8 $ 181.4 $ 181.7 $ 177.4 $ 171.3 $ 162.2
422.2 442.1 509.3 504.0 East 119.0 127.2 130.2 132.9 134.0 128.1 124.1 117.8
330.9 337.7 380.2 382.1 West 90.8 93.8 97.0 98.6 101.4 98.7 92.5 89.5
268.2 286.3 285.6 357.6 Global Family Office 69.2 68.6 74.8 73.0 88.9 96.5 87.6 84.6
1,580.6 $ 1,640.6 $ 1,673.4 $ 1,873.8 $ 1,936.3 Total WM Trust, Investment and Other Servicing Fees $ 443.2 $ 463.9 $ 480.8 $ 485.9 $ 506.0 $ 500.7 $ 475.5 $ 454.1

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
( in Millions)
CHANGE
12/31/2022 12/31/2021 %
Federal Reserve and Other Central Bank Deposits $ 39,961.9 $ 64,495.1 (38) %
Interest-Bearing Due from and Deposits with Banks(1) 4,926.6 3,849.2 1,077.4 28 %
Federal Funds Sold 32.0 — 32.0 N/M
Securities Purchased under Agreements to Resell 1,070.3 686.4 383.9 56 %
Debt Securities:
Available For Sale 26,699.9 38,010.5 (11,310.6) (30) %
Held To Maturity 25,036.1 23,564.5 1,471.6 6 %
Trading Account 95.2 0.3 94.9 N/M
Total Debt Securities 51,831.2 61,575.3 (9,744.1) (16) %
Loans and Leases 42,893.3 40,480.6 2,412.7 6 %
Other Interest-Earning Assets(2) 1,769.4 1,189.4 580.0 49 %
Total Earning Assets 142,484.7 172,276.0 (29,791.3) (17) %
Allowance for Credit Losses (161.1) (150.6) (10.5) 7 %
Cash and Due From Banks and Other Central Bank Deposits(3) 1,737.2 1,244.1 493.1 40 %
Buildings and Equipment 500.5 488.7 11.8 2 %
Client Security Settlement Receivables 1,698.3 1,941.2 (242.9) (13) %
Goodwill 691.3 706.2 (14.9) (2) %
Other Assets 8,085.8 7,384.2 701.6 10 %
Total Assets $ 155,036.7 $ 183,889.8 (16) %
Savings, Money Market and Other $ 31,128.6 $ 35,003.1 (11) %
Savings Certificates and Other Time 1,981.3 842.7 1,138.6 135 %
Non- U.S. Offices - Interest-Bearing 65,481.9 75,767.1 (10,285.2) (14) %
Total Interest-Bearing Deposits 98,591.8 111,612.9 (13,021.1) (12) %
Federal Funds Purchased 1,896.9 0.2 1,896.7 N/M
Securities Sold under Agreements to Repurchase 567.2 531.9 35.3 7 %
Other Borrowings 7,592.3 3,583.8 4,008.5 112 %
Senior Notes 2,724.2 2,505.5 218.7 9 %
Long-Term Debt 2,066.2 1,145.7 920.5 80 %
Total Interest-Related Funds 113,438.6 119,380.0 (5,941.4) (5) %
Demand and Other Noninterest-Bearing Deposits 25,340.3 48,315.5 (22,975.2) (48) %
Other Liabilities 4,998.3 4,177.5 820.8 20 %
Total Liabilities 143,777.2 171,873.0 (28,095.8) (16) %
Common Equity 10,374.6 11,131.9 (757.3) (7) %
Preferred Equity 884.9 884.9 — — %
Total Stockholders' Equity 11,259.5 12,016.8 (757.3) (6) %
Total Liabilities and Stockholders' Equity $ 155,036.7 $ 183,889.8 (16) %
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.
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.

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
( in Millions)
2021 2022
2019 2020 2021 2022 Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
23,899 $ 18,511 $ 27,904 $ 39,028 $ 36,249 Federal Reserve and Other Central Bank Deposits $ 37,130 $ 37,415 $ 40,523 $ 40,986 $ 45,200 $ 36,691 $ 30,549 $ 32,755
5,997 5,401 5,780 4,193 Interest-Bearing Due from and Deposits with Banks(2) 6,464 6,737 5,165 4,778 4,384 4,228 3,977 4,186
13 2 — 6 Federal Funds Sold — — — — 1 2 5 14
835 1,253 1,067 1,071 Securities Purchased under Agreements to Resell 1,551 1,012 841 876 692 1,149 1,271 1,166
Debt Securities:
38,016 40,643 38,987 32,060 Available For Sale 42,664 37,618 37,515 38,216 37,496 35,677 28,483 26,742
11,650 14,353 20,617 22,970 Held To Maturity 17,352 21,798 20,300 22,960 21,308 20,244 25,127 25,135
1 1 1 12 Trading Account — 1 1 1 1 — — 46
49,667 54,997 59,605 55,042 Total Debt Securities 60,017 59,416 57,816 61,177 58,805 55,921 53,610 51,924
31,053 33,499 37,208 41,031 Loans and Leases 34,201 36,282 38,411 39,860 39,544 40,747 41,466 42,329
1,034 1,077 1,186 1,248 Other Interest-Earning Assets(3) 1,225 1,163 1,198 1,157 1,143 1,163 1,269 1,414
107,109 124,133 143,873 138,839 Total Earning Assets 140,589 142,024 143,953 148,834 149,768 139,902 132,147 133,789
(111) (178) (173) (154) Allowance for Credit Losses (199) (177) (161) (156) (152) (156) (154) (155)
2,394 2,603 2,286 2,070 Cash and Due From Banks and Other Central Bank Deposits(4) 2,615 2,403 2,012 2,124 2,047 2,559 1,903 1,774
426 509 503 489 Buildings and Equipment 509 505 500 497 495 488 481 491
1,070 1,358 1,530 1,722 Client Security Settlement Receivables 1,669 1,533 1,284 1,639 1,826 1,588 1,667 1,810
683 695 707 692 Goodwill 707 708 709 705 704 694 686 686
5,981 7,691 7,637 8,894 Other Assets 7,367 7,305 8,156 7,711 7,455 9,010 9,673 9,409
122,947 $ 117,551 $ 136,811 $ 156,363 $ 152,552 Total Assets $ 153,256 $ 154,300 $ 156,453 $ 161,354 $ 162,143 $ 154,084 $ 146,402 $ 147,804
Liabilities and Stockholders' Equity
15,149 $ 16,578 $ 23,396 $ 28,339 $ 30,205 Savings, Money Market and Other $ 26,736 $ 27,427 $ 28,472 $ 30,676 $ 32,329 $ 30,968 $ 29,089 $ 28,489
868 1,266 887 1,060 Savings Certificates and Other Time 924 899 871 857 842 792 986 1,611
54,885 60,486 69,713 65,031 Non- U.S. Offices - Interest-Bearing 68,306 69,202 70,211 71,099 68,200 63,901 64,057 64,024
72,331 85,149 98,940 96,296 Total Interest-Bearing Deposits 95,965 97,528 99,554 102,631 101,371 95,661 94,133 94,123
1,267 981 191 1,408 Federal Funds Purchased 406 195 166 — — 923 1,968 2,705
339 218 232 434 Securities Sold under Agreements to Repurchase 90 229 293 314 254 597 490 392
7,753 6,401 5,050 5,464 Other Borrowings 4,681 5,196 5,527 4,789 3,691 4,187 5,991 7,933
2,389 3,234 2,856 2,756 Senior Notes 3,058 3,023 2,841 2,510 2,442 2,885 2,970 2,722
1,139 1,189 1,166 1,259 Long-Term Debt 1,179 1,169 1,166 1,151 1,128 1,096 1,088 1,719
278 278 218 — Floating Rate Capital Debt 278 278 278 42 — — — —
85,495 97,450 108,653 107,616 Total Interest-Related Funds 105,656 107,617 109,824 111,437 108,886 105,348 106,638 109,594
17,456 23,362 31,144 29,296 Demand and Other Noninterest-Bearing Deposits 30,451 30,469 30,241 33,390 37,129 33,733 24,356 22,186
3,952 4,806 4,870 4,558 Other Liabilities 5,611 4,663 4,534 4,685 4,616 4,096 4,473 5,044
106,903 125,618 144,666 141,471 Total Liabilities 141,718 142,749 144,600 149,512 150,632 143,177 135,467 136,824
9,705 10,307 10,812 10,197 Common Equity 10,653 10,666 10,968 10,957 10,626 10,022 10,051 10,095
943 886 885 885 Preferred Equity 885 885 885 885 885 885 885 885
10,648 11,193 11,697 11,081 Total Stockholders' Equity 11,537 11,551 11,853 11,842 11,511 10,907 10,936 10,979
122,947 $ 117,551 $ 136,811 $ 156,363 $ 152,552 Total Liabilities and Stockholders' Equity $ 153,256 $ 154,300 $ 156,453 $ 161,354 $ 162,143 $ 154,084 $ 146,402 $ 147,804
(1)
(2)
(3)
(4)

All values are in US Dollars.

Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
2021 2022
2018 2019 2020 2021 2022 Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
19.4 % 15.7 % 20.4 % 25.0 % 23.8 % Federal Reserve and Other Central Bank Deposits 24.2 % 24.2 % 25.9 % 25.4 % 27.9 % 23.8 % 20.9 % 22.2 %
4.9 5.1 3.9 3.7 2.7 Interest-Bearing Due from and Deposits with Banks(2) 4.2 4.4 3.3 3.0 2.7 2.7 2.7 2.8
— — — — — Federal Funds Sold — — — — — — — —
1.2 0.7 0.9 0.7 0.7 Securities Purchased under Agreements to Resell 1.0 0.7 0.5 0.5 0.4 0.7 0.9 0.8
Debt Securities:
28.7 32.3 29.7 24.9 21.0 Available For Sale 27.8 24.4 37.0 23.7 23.1 23.2 19.5 18.1
11.6 9.9 10.5 13.2 15.1 Held To Maturity 11.3 14.1 13.0 14.2 13.1 13.1 17.2 17.0
— — — — — Trading Account — — — — — — — —
40.3 42.3 40.2 38.1 36.1 Total Debt Securities 39.2 38.5 37.0 37.9 36.3 36.3 36.6 35.1
26.1 26.4 24.5 23.8 26.9 Loans and Leases 22.3 23.5 24.6 24.7 24.4 26.4 28.3 28.6
0.6 0.9 0.8 0.8 0.8 Other Interest-Earning Assets(3) 0.8 0.8 0.8 0.7 0.7 0.8 0.9 1.0
92.5 91.1 90.7 92.0 91.0 Total Earning Assets 91.7 92.0 92.0 92.2 92.4 90.8 90.3 90.5
(0.1) (0.1) (0.1) (0.1) (0.1) Allowance for Credit Losses (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)
2.1 2.0 1.9 1.5 1.4 Cash and Due From Banks and Other Central Bank Deposits(4) 1.7 1.6 1.3 1.3 1.3 1.7 1.3 1.2
0.4 0.4 0.4 0.3 0.3 Buildings and Equipment 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
0.8 0.9 1.0 1.0 1.1 Client Security Settlement Receivables 1.1 1.0 0.8 1.0 1.1 1.0 1.1 1.2
0.5 0.6 0.5 0.5 0.5 Goodwill 0.5 0.5 0.5 0.4 0.4 0.5 0.5 0.5
3.8 5.1 5.6 4.9 5.8 Other Assets 4.8 4.7 5.2 4.8 4.6 5.8 6.6 6.4
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Total Assets 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Liabilities and Stockholders' Equity
12.3 % 14.1 % 17.1 % 18.1 % 19.8 % Savings, Money Market and Other 17.4 % 17.8 % 18.2 % 19.0 % 19.9 % 20.1 % 19.9 % 19.3 %
0.7 0.7 0.9 0.6 0.7 Savings Certificates and Other Time 0.6 0.6 0.6 0.5 0.5 0.5 0.7 1.1
47.6 46.7 44.2 44.6 42.6 Non- U.S. Offices - Interest-Bearing 44.6 44.8 44.9 44.1 42.1 41.5 43.8 43.3
60.7 61.5 62.2 63.3 63.1 Total Interest-Bearing Deposits 62.6 63.2 63.6 63.6 62.5 62.1 64.3 63.7
2.2 1.1 0.7 0.1 0.9 Federal Funds Purchased 0.3 0.1 0.1 — — 0.6 1.3 1.8
0.4 0.3 0.2 0.1 0.3 Securities Sold under Agreements to Repurchase 0.1 0.1 0.2 0.2 0.2 0.4 0.3 0.3
6.1 6.6 4.7 3.2 3.6 Other Borrowings 3.1 3.4 3.5 3.0 2.3 2.7 4.1 5.4
1.4 2.0 2.4 1.8 1.8 Senior Notes 2.0 2.0 1.8 1.6 1.5 1.9 2.0 1.8
1.1 1.0 0.9 0.7 0.8 Long-Term Debt 0.8 0.8 0.7 0.7 0.7 0.7 0.7 1.2
0.2 0.2 0.2 0.1 — Floating Rate Capital Debt 0.2 0.2 0.2 — — — — —
72.1 72.7 71.2 69.5 70.5 Total Interest-Related Funds 68.9 69.7 70.2 69.1 67.2 68.4 72.8 74.1
16.7 14.8 17.1 19.9 19.2 Demand and Other Noninterest-Bearing Deposits 19.9 19.7 19.3 20.7 22.9 21.9 16.6 15.0
2.9 3.4 3.5 3.1 3.0 Other Liabilities 3.7 3.0 2.9 2.9 2.8 2.7 3.1 3.4
91.7 90.9 91.8 92.5 92.7 Total Liabilities 92.5 92.5 92.4 92.7 92.9 92.9 92.5 92.6
7.6 8.3 7.5 6.9 6.7 Common Equity 7.0 6.9 7.0 6.8 6.6 6.5 6.9 6.8
0.7 0.8 0.6 0.6 0.6 Preferred Equity 0.6 0.6 0.6 0.5 0.5 0.6 0.6 0.6
8.3 9.1 8.2 7.5 7.3 Total Stockholders' Equity 7.5 7.5 7.6 7.3 7.1 7.1 7.5 7.4
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Total Liabilities and Stockholders' Equity 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
(1) Summations may not equal due to rounding
(2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3) Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.
(4) Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
Northern Trust Corporation
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
INTEREST RATE TRENDS (FTE(1) Basis)
PERIOD AVERAGES
Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. A reconciliation of net interest income, net interest margin, and net interest spread on a GAAP basis to net interest income, net interest margin, and net interest spread on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided on pages 11 and 12. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
2021 2022
2018 2019 2020 2021 2022 Earnings Assets 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
0.87 0.98 % 0.10 % 0.03 % 1.30 % Federal Reserve and Other Central Bank Deposits — % 0.01 % 0.04 % 0.06 % 0.16 % 0.65 % 1.76 % 3.15 %
1.16 1.21 % 0.41 % 0.16 % 1.11 % Interest-Bearing Due from and Deposits with Banks(2) 0.15 % 0.16 % 0.15 % 0.18 % 0.24 % 0.62 % 1.45 % 2.18 %
2.18 2.73 % 1.37 % 0.41 % 3.22 % Federal Funds Sold 0.41 % 0.41 % 0.41 % 0.41 % 0.45 % 0.75 % 2.79 % 3.91 %
2.22 2.10 % 0.31 % 0.33 % 9.68 % Securities Purchased under Agreements to Resell(4) 0.27 % 0.34 % 0.38 % 0.38 % 0.50 % 2.47 % 9.51 % 22.24 %
Debt Securities:
2.13 2.51 % 1.77 % 1.28 % 1.91 % Available for Sale 1.45 % 1.25 % 1.18 % 1.20 % 1.30 % 1.55 % 2.10 % 3.02 %
1.08 0.94 % 0.59 % 0.80 % 1.26 % Held to Maturity 0.59 % 0.86 % 0.97 % 0.84 % 0.94 % 1.11 % 1.38 % 1.54 %
6.19 3.29 % 3.27 % 1.59 % 3.84 % Trading Account 6.55 % 0.87 % 0.32 % 0.12 % 10.09 % 5.40 % 23.60 % 3.54 %
1.83 2.14 % 1.46 % 1.11 % 1.64 % Total Debt Securities 1.16 % 1.11 % 1.11 % 1.06 % 1.17 % 1.39 % 1.76 % 2.30 %
3.45 3.74 % 2.32 % 1.92 % 3.28 % Loans and Leases 2.05 % 1.91 % 1.87 % 1.88 % 1.97 % 2.53 % 3.64 % 4.86 %
5.01 3.56 % 3.63 % 3.43 % 4.03 % Other Interest-Earning Assets(3) 2.65 % 3.27 % 3.92 % 3.88 % 2.69 % 4.07 % 3.92 % 5.14 %
2.08 2.36 % 1.35 % 1.00 % 2.11 % Total Earning Assets 1.03 % 0.99 % 1.00 % 0.99 % 1.06 % 1.54 % 2.44 % 3.52 %
Interest-Bearing Funds
0.54 0.97 % 0.20 % 0.05 % 0.74 % Savings, Money Market and Other 0.06 % 0.04 % 0.04 % 0.04 % 0.04 % 0.24 % 0.94 % 1.83 %
0.90 1.86 % 1.30 % 0.55 % 1.68 % Savings Certificates and Other Time 0.67 % 0.49 % 0.53 % 0.49 % 0.51 % 0.58 % 1.61 % 2.86 %
0.50 0.57 % (0.03) % (0.11) % 0.56 % Non- U.S. Offices - Interest-Bearing (0.11) % (0.11) % (0.12) % (0.12) % (0.12) % 0.02 % 0.65 % 1.70 %
0.52 0.68 % 0.06 % (0.06) % 0.63 % Total Interest-Bearing Deposits (0.06) % (0.06) % (0.07) % (0.06) % (0.06) % 0.10 % 0.75 % 1.76 %
1.82 2.05 % 0.22 % (0.19) % 2.43 % Federal Funds Purchased 0.06 % (0.95) % 0.09 % — % 0.05 % 1.22 % 2.00 % 3.14 %
1.48 1.89 % 0.47 % 0.07 % 20.94 % Securities Sold under Agreements to Repurchase(4) 0.07 % 0.03 % 0.06 % 0.11 % 0.49 % 4.01 % 20.72 % 59.59 %
2.00 2.34 % 0.71 % 0.28 % 2.31 % Other Borrowings 0.30 % 0.25 % 0.26 % 0.32 % 0.35 % 0.80 % 2.36 % 3.95 %
3.13 3.04 % 2.24 % 1.69 % 3.36 % Senior Notes 1.82 % 1.82 % 1.64 % 1.44 % 1.59 % 2.65 % 3.79 % 5.18 %
3.47 3.36 % 2.24 % 1.81 % 3.49 % Long-Term Debt 1.83 % 1.83 % 1.79 % 1.80 % 1.94 % 2.47 % 3.41 % 5.19 %
2.72 2.98 % 1.52 % 0.78 % — % Floating Rate Capital Debt 0.81 % 0.76 % 0.75 % 0.86 % — % — % — % — %
0.79 0.96 % 0.21 % 0.02 % 0.92 % Total Interest-Related Funds 0.04 % 0.03 % 0.02 % 0.01 % 0.01 % 0.25 % 1.07 % 2.30 %
1.29 1.40 % 1.14 % 0.98 % 1.19 % Net Interest Spread 0.99 % 0.96 % 0.98 % 0.98 % 1.05 % 1.29 % 1.37 % 1.22 %
1.46 1.60 % 1.19 % 0.99 % 1.39 % Net Interest Margin 1.00 % 0.97 % 0.98 % 0.99 % 1.05 % 1.35 % 1.58 % 1.63 %
(1) Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit.
(2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3) Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, 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.
(4) Includes the impact of balance sheet netting under master netting arrangements of approximately 6.0 billion for the three months ended December 31, 2022 and 3.6 for the twelve months ended December 31, 2022 . Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 3.64% for the three months ended December 31, 2022 and 2.23% for the twelve months ended December 31, 2022. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.68% for the three months ended December 31, 2022 and 2.27% for the twelve months ended December 31, 2022.

All values are in US Dollars.

Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
( in Millions)
2021 2022
2018 2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
$ 138.2 $ 124.4 $ 259.9 $ 184.7 Beginning Allowance for Credit Losses $ 259.9 $ 230.8 $ 207.0 $ 195.1 $ 184.7 $ 189.9 $ 199.9 $ 195.9
— — 13.7 — — Cumulative Effect Adjustment* — — — — — — — —
(14.5) (14.5) 125.0 (81.5) 12.0 Provision for Credit Losses (30.0) (27.0) (13.0) (11.5) 2.0 4.5 0.5 5.0
(Charge-offs) Recoveries
(10.1) (6.5) (9.7) (0.7) (6.0) Charge-offs (0.4) — — (0.3) (0.1) — (5.4) (0.5)
9.0 7.2 6.5 7.0 10.2 Recoveries 1.3 3.2 1.1 1.4 3.3 5.5 0.9 0.5
(1.1) 0.7 (3.2) 6.3 4.2 Net (Charge-offs) Recoveries 0.9 3.2 1.1 1.1 3.2 5.5 (4.5) —
$ 124.4 $ 259.9 $ 184.7 $ 200.9 Ending Allowance for Credit Losses $ 230.8 $ 207.0 $ 195.1 $ 184.7 $ 189.9 $ 199.9 $ 195.9 $ 200.9
$ 104.5 $ 190.7 $ 138.4 $ 144.3 Allowance for Credit Losses Assigned to: $ 165.4 $ 148.8 $ 143.9 $ 138.4 $ 136.3 $ 138.2 $ 138.7 $ 144.3
Loans and Leases
25.6 19.9 61.1 34.1 38.5 Undrawn Loan Commitments and Standby Letters of Credit 55.1 46.5 39.8 34.1 37.5 43.5 40.7 38.5
— — 8.1 12.2 18.1 Debt Securities and Other Financial Assets 10.3 11.7 11.4 12.2 16.1 18.2 16.5 18.1
$ 124.4 $ 259.9 $ 184.7 $ 200.9 Total Allowance for Credit Losses $ 230.8 $ 207.0 $ 195.1 $ 184.7 $ 189.9 $ 199.9 $ 195.9 $ 200.9
$ 31,053 $ 33,499 $ 37,208 $ 41,031 Average Loans and Leases Outstanding $ 34,201 $ 36,282 $ 38,411 $ 39,860 $ 39,544 $ 40,747 $ 41,466 $ 42,329
— % — % (0.01) % 0.02 % 0.01 % Annualized Loan-Related Net (Charge-offs) Recoveries to 0.01 % 0.04 % 0.01 % 0.01 % 0.03 % 0.05 % (0.04) % — %
Average Loans and Leases
$ 31,410 $ 33,760 $ 40,481 $ 42,893 End of Period Loans and Leases Outstanding $ 34,344 $ 37,407 $ 39,457 $ 40,481 $ 39,239 $ 41,208 $ 43,992 $ 42,893
0.35 % 0.33 % 0.56 % 0.34 % 0.34 % Allowance for Credit Losses Assigned to Loans 0.48 % 0.40 % 0.36 % 0.34 % 0.35 % 0.34 % 0.32 % 0.34 %
and Leases to Total Loans and Leases
Nonaccrual Assets
$ 83.6 $ 131.7 $ 122.3 $ 45.9 Nonaccrual Loans and Leases $ 123.8 $ 106.5 $ 141.0 $ 122.3 $ 100.8 $ 89.7 $ 76.4 $ 45.9
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 — —
$ 86.8 $ 132.4 $ 125.3 $ 45.9 Total Nonaccrual Assets $ 125.3 $ 106.7 $ 141.2 $ 125.3 $ 101.0 $ 89.8 $ 76.4 $ 45.9
0.36 % 0.28 % 0.39 % 0.31 % 0.11 % Nonaccrual Assets to Loans and Leases and OREO 0.36 % 0.29 % 0.36 % 0.31 % 0.26 % 0.22 % 0.17 % 0.11 %
Loans and Leases Allowance to Nonaccrual
1.0x 1.3x 1.4x 1.1x 3.1x Loans and Leases 1.3x 1.4x 1.0x 1.1x 1.4x 1.5x 1.8x 3.1x
Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by 13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings 10.1 million, net of tax.

All values are in US Dollars.

Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
( in Billions)
2021 2022
2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Assets Under Management
790.8 $ 917.5 $ 1,057.5 $ 1,191.0 $ 898.1 Asset Servicing $ 1,093.7 $ 1,168.3 $ 1,159.5 $ 1,191.0 $ 1,091.6 $ 950.0 $ 873.7 $ 898.1
Asset allocation:
483.8 551.7 626.6 485.0 Equities 573.5 616.0 594.9 626.6 582.8 479.1 444.1 485.0
114.6 120.1 132.6 107.1 Fixed Income Securities 117.1 132.6 127.9 132.6 122.8 114.8 103.1 107.1
156.1 198.8 236.2 157.7 Cash and Other Assets 201.9 220.4 228.6 236.2 208.8 186.8 164.4 157.7
163.0 186.9 195.6 148.3 Securities Lending Collateral 201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3
278.6 $ 313.8 $ 347.8 $ 416.1 $ 351.4 Wealth Management $ 355.4 $ 371.1 $ 372.9 $ 416.1 $ 396.2 $ 352.8 $ 336.2 $ 351.4
Asset allocation:
167.0 182.0 229.9 186.3 Equities 196.1 211.8 211.5 229.9 218.1 185.0 171.0 186.3
79.2 84.7 83.5 79.4 Fixed Income Securities 81.8 82.3 82.7 83.5 81.6 80.1 79.5 79.4
67.5 81.1 102.7 85.7 Cash and Other Assets 77.5 77.0 78.7 102.7 96.5 87.7 85.7 85.7
0.1 — — — Securities Lending Collateral — — — — — — — —
1,069.4 $ 1,231.3 $ 1,405.3 $ 1,607.1 $ 1,249.5 Total Assets Under Management $ 1,449.1 $ 1,539.4 $ 1,532.4 $ 1,607.1 $ 1,487.8 $ 1,302.8 $ 1,209.9 $ 1,249.5
Asset allocation:
534.2 $ 650.8 $ 733.7 $ 856.5 $ 671.3 Equities $ 769.6 $ 827.8 $ 806.4 $ 856.5 $ 800.9 $ 664.1 $ 615.1 $ 671.3
193.8 204.8 216.1 186.5 Fixed Income Securities 198.9 214.9 210.6 216.1 204.4 194.9 182.6 186.5
223.6 279.9 338.9 243.4 Cash and Other Assets 279.4 297.4 307.3 338.9 305.3 274.5 250.1 243.4
163.1 186.9 195.6 148.3 Securities Lending Collateral 201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3
Assets Under Custody / Administration
9,490.5 $ 11,311.6 $ 13,653.1 $ 15,183.2 $ 12,705.5 Asset Servicing $ 13,876.3 $ 14,754.1 $ 14,800.2 $ 15,183.2 $ 14,513.0 $ 12,812.2 $ 11,954.0 $ 12,705.5
738.8 879.4 1,065.6 898.5 Wealth Management 918.8 973.0 976.0 1,065.6 1,031.1 921.5 868.0 898.5
10,125.3 $ 12,050.4 $ 14,532.5 $ 16,248.8 $ 13,604.0 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 $ 13,604.0
Assets Under Custody
6,971.0 $ 8,497.8 $ 10,387.7 $ 11,554.8 $ 9,712.3 Asset Servicing $ 10,618.0 $ 11,260.8 $ 11,283.6 $ 11,554.8 $ 10,987.5 $ 9,771.2 $ 9,125.5 $ 9,712.3
Asset allocation:
3,866.6 4,751.0 5,404.3 4,312.8 Equities 5,005.7 5,334.8 5,298.8 5,404.3 5,062.5 4,272.7 3,939.7 4,312.8
3,102.3 3,742.6 3,997.5 3,252.1 Fixed Income Securities 3,688.4 3,892.9 3,908.3 3,997.5 3,768.9 3,378.8 3,157.1 3,252.1
1,365.9 1,707.2 1,957.4 1,999.1 Cash and Other Assets 1,722.7 1,833.8 1,868.4 1,957.4 1,978.9 1,950.4 1,866.6 1,999.1
163.0 186.9 195.6 148.3 Securities Lending Collateral 201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3
622.9 $ 735.7 $ 875.1 $ 1,057.5 $ 892.3 Wealth Management $ 916.2 $ 967.8 $ 962.9 $ 1,057.5 $ 1,022.9 $ 913.0 $ 860.8 $ 892.3
Asset allocation:
432.0 542.9 644.8 497.9 Equities 575.0 616.3 600.7 644.8 615.2 512.8 469.3 497.9
134.3 128.3 142.1 134.0 Fixed Income Securities 130.3 136.7 138.2 142.1 140.5 135.0 131.6 134.0
169.3 203.9 270.6 260.4 Cash and Other Assets 210.9 214.8 224.0 270.6 267.2 265.2 259.9 260.4
0.1 — — — Securities Lending Collateral — — — — — — — —
7,593.9 $ 9,233.5 $ 11,262.8 $ 12,612.3 $ 10,604.6 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 $ 10,604.6
Asset allocation:
3,379.5 $ 4,298.6 $ 5,293.9 $ 6,049.1 $ 4,810.7 Equities $ 5,580.7 $ 5,951.0 $ 5,899.5 $ 6,049.1 $ 5,677.7 $ 4,785.5 $ 4,409.0 $ 4,810.7
3,236.6 3,870.9 4,139.6 3,386.1 Fixed Income Securities 3,818.7 4,029.6 4,046.5 4,139.6 3,909.4 3,513.8 3,288.7 3,386.1
1,535.2 1,911.1 2,228.0 2,259.5 Cash and Other Assets 1,933.6 2,048.7 2,092.4 2,228.0 2,246.1 2,215.6 2,126.5 2,259.5
163.1 186.9 195.6 148.3 Securities Lending Collateral 201.2 199.3 208.1 195.6 177.2 169.3 162.1 148.3
Memo
83.5 $ 94.2 $ 114.0 $ 144.9 $ 119.9 WM Global Family Office AUM $ 114.3 $ 119.7 $ 120.4 $ 144.9 $ 136.6 $ 121.9 $ 117.1 $ 119.9
474.1 600.7 742.6 614.9 WM Global Family Office AUC 635.2 675.4 668.9 742.6 720.8 642.2 598.4 614.9

All values are in US Dollars.

Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
( in Millions)
2021 2022
2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2,321.4 $ 2,499.9 $ 1,643.5 $ 1,406.5 $ 2,877.7 Interest Income - GAAP $ 349.9 $ 343.1 $ 351.3 $ 362.2 $ 383.5 $ 524.8 $ 799.3 $ 1,170.1
32.8 34.4 35.6 45.6 Add: FTE Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
2,532.7 1,677.9 1,442.1 2,923.3 Interest Income (FTE) - Non-GAAP 356.5 351.4 362.0 372.2 390.2 535.9 811.6 1,185.6
1,677.9 1,443.2 1,382.7 1,887.2 Net Interest Income - GAAP 340.1 335.6 346.4 360.6 381.0 458.7 513.0 534.5
32.8 34.4 35.6 45.6 Add: FTE Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
1,710.7 1,477.6 1,418.3 1,932.8 Net Interest Income (FTE) - Non-GAAP 346.7 343.9 357.1 370.6 387.7 469.8 525.3 550.0
6,073.1 6,100.8 6,464.5 6,761.2 Total Revenue - GAAP 1,583.4 1,580.3 1,633.8 1,667.0 1,718.7 1,768.7 1,754.8 1,519.0
32.8 34.4 35.6 45.6 Add: FTE Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
6,105.9 6,135.2 6,500.1 6,806.8 Total Revenue (FTE) - Non-GAAP 1,590.0 1,588.6 1,644.5 1,677.0 1,725.4 1,779.8 1,767.1 1,534.5
1,944.1 1,627.6 2,010.1 1,766.3 Income before Income Taxes - GAAP 495.9 486.5 518.1 509.6 510.8 540.6 524.5 190.4
32.8 34.4 35.6 45.6 Add: FTE Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
1,976.9 1,662.0 2,045.7 1,811.9 Income before Income Taxes (FTE) - Non-GAAP 502.5 494.8 528.8 519.6 517.5 551.7 536.8 205.9
451.9 418.3 464.8 430.3 Provision for Income Taxes - GAAP 120.8 118.4 122.4 103.2 121.5 144.4 129.7 34.7
32.8 34.4 35.6 45.6 Add: FTE Adjustment 6.6 8.3 10.7 10.0 6.7 11.1 12.3 15.5
484.7 452.7 500.4 475.9 Provision for Income Taxes (FTE) - Non-GAAP 127.4 126.7 133.1 113.2 128.2 155.5 142.0 50.2

All values are in US Dollars.

Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
RATIOS
Northern Trust presents certain financial measures on a fully taxable equivalent (FTE) basis, which is a non-generally accepted accounting principle (GAAP). Management believes an FTE presentation provides a clearer indication of these financial measures for comparative purposes. <br><br>Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income, consistent with industry practice. The adjustments are based on the federal income tax rate, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. Below is a reconciliation of the financial ratios presented on an FTE basis.
2021 2022
2018 2019 2020 2021 2022 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
32.8 % 32.0 % 26.7 % 31.1 % 26.1 % Profit Margin (pre-tax) - GAAP (1) 31.3 % 30.8 % 31.7 % 30.6 % 29.7 % 30.6 % 29.9 % 12.5 %
33.3 % 32.4 % 27.1 % 31.5 % 26.6 % Profit Margin (pre-tax) (FTE) - Non-GAAP (1) 31.6 % 31.1 % 32.2 % 31.0 % 30.0 % 31.0 % 30.4 % 13.4 %
26.1 % 24.6 % 19.8 % 23.9 % 19.8 % Profit Margin (after-tax) - GAAP (2) 23.7 % 23.3 % 24.2 % 24.4 % 22.7 % 22.4 % 22.5 % 10.2 %
25.9 % 24.4 % 19.7 % 23.8 % 19.6 % Profit Margin (after-tax) (FTE) - Non-GAAP (2) 23.6 % 23.2 % 24.1 % 24.2 % 22.6 % 22.3 % 22.3 % 10.1 %
20.5 % 23.2 % 25.7 % 23.1 % 24.4 % Effective Tax Rate - GAAP (3) 24.4 % 24.3 % 23.6 % 20.2 % 23.8 % 26.7 % 24.7 % 18.2 %
22.1 % 24.5 % 27.2 % 24.5 % 26.3 % Effective Tax Rate (FTE) - Non-GAAP (3) 25.4 % 25.6 % 25.2 % 21.8 % 24.8 % 28.2 % 26.4 % 24.4 %
72.8 % 72.4 % 76.3 % 78.6 % 72.1 % Noninterest Income to Total Revenue - GAAP (4) 78.5 % 78.8 % 78.8 % 78.4 % 77.8 % 74.1 % 70.8 % 64.8 %
72.3 % 72.0 % 75.9 % 78.2 % 71.6 % Noninterest Income to Total Revenue (FTE) - Non-GAAP (4) 78.2 % 78.4 % 78.3 % 77.9 % 77.5 % 73.6 % 70.3 % 64.2 %
63.0 % 63.4 % 65.5 % 67.5 % 65.6 % Trust Fees to Total Revenue - GAAP (5) 67.2 % 68.1 % 68.0 % 66.6 % 68.0 % 64.6 % 61.5 % 68.6 %
62.5 % 63.1 % 65.1 % 67.1 % 65.1 % Trust Fees to Total Revenue (FTE) - Non-GAAP (5) 66.9 % 67.7 % 67.6 % 66.2 % 67.7 % 64.2 % 61.0 % 67.9 %
1.25 % 1.37 % 1.11 % 0.96 % 1.15 % Net Interest Spread - GAAP (6) 0.97 % 0.94 % 0.95 % 0.96 % 1.03 % 1.25 % 1.33 % 1.17 %
1.29 % 1.40 % 1.14 % 0.98 % 1.19 % Net Interest Spread (FTE) - Non-GAAP (6) 0.99 % 0.96 % 0.98 % 0.98 % 1.05 % 1.29 % 1.37 % 1.22 %
1.43 % 1.57 % 1.16 % 0.96 % 1.36 % Net Interest Margin - GAAP (7) 0.98 % 0.95 % 0.95 % 0.96 % 1.03 % 1.31 % 1.54 % 1.58 %
1.46 % 1.60 % 1.19 % 0.99 % 1.39 % Net Interest Margin (FTE) - Non-GAAP (7) 1.00 % 0.97 % 0.98 % 0.99 % 1.05 % 1.35 % 1.58 % 1.63 %
(1) Profit margin (pre-tax) is calculated by dividing income before income taxes by total revenue. Profit margin (pre-tax) on an FTE basis is calculated by dividing income before income taxes on an FTE basis by total revenue on an FTE basis.
(2) Profit margin (after-tax) is calculated by dividing net income by total revenue. Profit margin (after-tax) on an FTE basis is calculated by dividing net income by total revenue on an FTE basis.
(3) Effective tax rate is calculated by dividing the provision for income taxes by income before income taxes. Effective tax rate on an FTE basis is calculated by dividing the provision for income taxes on an FTE basis by income before income taxes on an FTE basis.
(4) Noninterest income to total revenue is calculated by dividing noninterest income by total revenue. Noninterest income to total revenue on an FTE basis is calculated by dividing noninterest income by total revenue on an FTE basis.
(5) Trust fees to total revenue is calculated by dividing total trust, investment and other servicing fees by total revenue. Trust fees to total revenue on an FTE basis is calculated by dividing total trust, investment and other servicing fees by total revenue on an FTE basis.
(6) Net interest spread is calculated as the difference between the interest rate earned (annualized interest income divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds). Net interest spread on an FTE basis is calculated as the difference between the interest rate earned (annualized interest income on an FTE basis divided by average interest-earning assets) and the interest rate incurred (annualized interest expense divided by average interest-related funds).
(7) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Net interest margin on an FTE basis is calculated by dividing annualized net interest income on an FTE basis by average interest-earning assets.

12

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