Northern Trust 8K Reports Second Quarter Net Income of $396.2 Million, Earnings Per Diluted Common Share of $1.86 | NTRS 20 Jul 22

Financial Trends

Second Quarter 2022

July 20, 2022

Please direct inquiries to:


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

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

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


TABLE OF CONTENTS

	1	7
	Financial Summary	Balance Sheet Mix Trends

	2	8
	Income Statement	Interest Rate Trends

	3	9
	Net Income Trends	Asset Quality

	4	10
	Fee Detail	Trust Assets

	5	11
	Balance Sheet (EOP)	Reconciliation to FTE

	6	12
	Balance Sheet Trends	Reconciliation to FTE (Ratios)


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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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


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

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

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

											Wealth Management

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


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

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

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


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

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

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

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


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


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

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

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

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


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


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

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

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



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

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


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


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

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

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

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

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

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



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


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

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

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

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


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


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

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

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


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

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

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

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


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

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

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

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

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

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

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

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


Northern Trust Corporation
RECONCILIATION TO FULLY TAXABLE EQUIVALENT
RATIOS

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

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

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

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

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

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

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

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

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

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

Northern Trust (NTRS) 8-KNorthern Trust Corporation Reports Second Quarter Net Income of $396.2 Million, Earnings Per Diluted Common Share of $1.86