EX-99.3 4 q12025trendreport-wordrepo.htm EX-99.3

Exhibit 99.3

Financial Trends

First Quarter 2025

April 22, 2025

Please direct inquiries to:

Jennifer Childe
Senior Vice President, Director of Investor Relations
(312) 444-3290 or jennifer.childe@ntrs.com
Trace Stegeman
Senior Financial Analyst, Investor Relations
(312) 630-1428 or trace.stegeman@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 First Quarter 2025 earnings press release, 2024 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.

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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)

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Northern Trust Corporation
FINANCIAL SUMMARY
($ in Millions except per share information)
																																																2024																								2025
						2020						2021						2022						2023						2024																		1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
																																				Profitability:
						$	1,209.3					$	1,545.3					$	1,336.0					$	1,107.3					$	2,031.1					Net Income												$	214.7					$	896.1					$	464.9					$	455.4					$	392.0
																																				Earnings Allocated to Common and Potential
						1,141.0						1,490.6						1,282.4						1,053.9						1,972.4									Common Shares									196.1						884.3						445.0						447.0						372.2
						$	5.48					$	7.16					$	6.16					$	5.09					$	9.80					Basic Earnings Per Share												$	0.96					$	4.35					$	2.23					$	2.27					$	1.91
						5.46						7.14						6.14						5.08						9.77						Diluted Earnings Per Share												0.96						4.34						2.22						2.26						1.90
						(18		%)				31		%				(14		%)				(17		%)				92		%				Diluted EPS Growth over Previous Year												(37		%)				179		%				49		%				N/M						99		%
						11.2		%				13.9		%				12.7		%				10.0		%				17.4		%				Return on Average Common Equity												7.3		%				31.2		%				15.4		%				15.3		%				13.0		%
						27.1		%				31.5		%				26.6		%				22.3		%				32.3		%				Profit Margin (pre-tax) (FTE)(1)												18.0		%				43.4		%				30.8		%				30.7		%				27.1		%
						19.7		%				23.8		%				19.6		%				16.2		%				24.4		%				Profit Margin (after-tax) (FTE)(1)												13.0		%				32.9		%				23.5		%				23.1		%				20.1		%
						75.9		%				78.2		%				71.6		%				70.1		%				73.5		%				Noninterest Income to Total Revenue (FTE)(1)												67.6		%				80.5		%				71.2		%				70.8		%				70.5		%
						65.1		%				67.1		%				65.1		%				63.9		%				56.8		%				Trust Fees to Total Revenue (FTE)(1)												69.1		%				42.8		%				60.6		%				62.0		%				62.4		%
						25.7		%				23.1		%				24.4		%				24.4		%				23.6		%				Effective Tax Rate (US GAAP)												26.1		%				23.6		%				22.7		%				23.4		%				24.8		%
						27.2		%				24.5		%				26.3		%				27.3		%				24.5		%				Effective Tax Rate (FTE)(1)												27.9		%				24.1		%				23.5		%				24.7		%				25.6		%
																																				Capital Ratios:(2)
																																							Standardized Approach
						12.8		%				11.9		%				10.8		%				11.4		%				12.4		%										Common Equity Tier 1 Capital						11.4		%				12.6		%				12.6		%				12.4		%				12.9		%
						13.9		%				12.9		%				11.8		%				12.3		%				13.3		%										Tier 1 Capital						12.4		%				13.6		%				13.6		%				13.3		%				13.9		%
						15.6		%				14.1		%				13.9		%				14.2		%				15.1		%										Total Capital						14.2		%				15.5		%				15.6		%				15.1		%				15.7		%
						7.6		%				6.9		%				7.1		%				8.1		%				8.1		%										Tier 1 Leverage						7.8		%				8.0		%				8.1		%				8.1		%				8.0		%
																																							Advanced Approach
						13.4		%				13.2		%				11.5		%				13.4		%				14.5		%										Common Equity Tier 1 Capital						13.5		%				13.9		%				14.0		%				14.5		%				15.3		%
						14.5		%				14.3		%				12.5		%				14.5		%				15.6		%										Tier 1 Capital						14.6		%				15.0		%				15.1		%				15.6		%				16.5		%
						15.9		%				15.3		%				14.5		%				16.5		%				17.4		%										Total Capital						16.5		%				16.9		%				17.0		%				17.4		%				18.3		%
						7.6		%				6.9		%				7.1		%				8.1		%				8.1		%										Tier 1 Leverage						7.8		%				8.0		%				8.1		%				8.1		%				8.0		%
						8.6		%				8.2		%				7.9		%				8.6		%				8.9		%										Supplementary Leverage (3)						8.8		%				9.1		%				9.2		%				8.9		%				9.1		%
																																				Per Share Information / Ratios:
						$	2.80					$	2.80					$	2.90					$	3.00					$	3.00					Cash Dividends Declared Per Common Share												$	0.75					$	0.75					$	0.75					$	0.75					$	0.75
						51		%				39		%				47		%				59		%				31		%				Dividend Payout Ratio												78		%				17		%				34		%				33		%				39		%
						$	93.14					$	119.61					$	88.49					$	84.38					$	102.50					Market Value Per Share (End of Period)												$	88.92					$	83.98					$	90.03					$	102.50					$	98.65
						17.1						16.8						14.4						16.6						10.5						Stock Price Multiple of Earnings												19.6						11.5						11.2						10.5						9.2
																																				(based on trailing 4 quarters of diluted EPS)
						$	51.87					$	53.58					$	49.78					$	53.69					$	60.74					Book Value Per Common Share (End of Period)												$	54.83					$	58.38					$	59.85					$	60.74					$	61.65
			(1)			Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent - Ratios on page 12 for further detail.
			(2)			Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.
			(3)			From April 1, 2020, through April 1, 2021, the Federal Reserve issued temporary Supplementary Leverage Ratio (SLR) relief that required Northern Trust to exclude U.S. Treasury balances from the SLR. Please see the Northern Trust Corporation Pillar 3 disclosures for further SLR discussion.

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Northern Trust Corporation
INCOME STATEMENT
($ in Millions except per share information)
																								FIRST QUARTER												CHANGE (2)
																																				2025						2024						$						%
																																	Asset Servicing Trust, Investment and Other Servicing Fees			$	671.9					$	639.6					$	32.3					5		%
																																	WM Trust, Investment and Other Servicing Fees			541.9						503.3						38.6						8		%
																																	Total Fees			1,213.8						1,142.9						70.9						6		%
																																	Foreign Exchange Trading Income			58.7						57.0						1.7						3		%
																																	Treasury Management Fees			9.6						9.3						0.3						3		%
																																	Security Commissions and Trading Income			39.1						37.9						1.2						3		%
																																	Other Operating Income			50.7						61.0						(10.3)						(17)		%
																																	Investment Security Gains (Losses), net			—						(189.4)						189.4						N/M
																																	Total Noninterest Income			1,371.9						1,118.7						253.2						23		%
																																	Interest Income (FTE)(1)			2,146.5						2,452.9						(306.4)						(12)		%
																																	Interest Expense			1,572.8						1,917.5						(344.7)						(18)		%
																																	Net Interest Income (FTE)(1)			573.7						535.4						38.3						7		%
																																	Total Revenue (FTE)(1)			1,945.6						1,654.1						291.5						18		%
																																	Provision for Credit Losses			1.0						(8.5)						9.5						N/M
																																	Compensation			644.4						627.1						17.3						3		%
																																	Employee Benefits			109.7						101.1						8.6						8		%
																																	Outside Services			245.2						229.3						15.9						7		%
																																	Equipment and Software			280.9						252.7						28.2						11		%
																																	Occupancy			53.4						54.1						(0.7)						(1)		%
																																	Other Operating Expense			84.0						100.4						(16.4)						(16)		%
																																	Total Noninterest Expense			1,417.6						1,364.7						52.9						4		%
																																	Income before Income Taxes (FTE)(1)			527.0						297.9						229.1						77		%
																																	Provision for Income Taxes			129.4						75.9						53.5						71		%
																																	Taxable Equivalent Adjustment			5.6						7.3						(1.7)						(24)		%
																																	Total Taxes (FTE)(1)			135.0						83.2						51.8						62		%
																																	Net Income			$	392.0					$	214.7					$	177.3					83		%
																																	Dividends on Preferred Stock			$	16.2					$	16.2					$	—					—		%
																																	Earnings Allocated to Participating Securities			3.6						2.4						1.2						48		%
																																	Earnings Allocated to Common and Potential Common Shares			372.2						196.1						176.1						90		%
																																	Earnings Per Share - Basic			$	1.91					$	0.96					$	0.95					99		%
																																	Earnings Per Share - Diluted			$	1.90					$	0.96					$	0.94					99		%
																																	Average Basic Shares (000s)			195,193						204,629						(9,436)						(5)		%
																																	Average Diluted Shares (000s)			196,125						205,135						(9,010)						(4)		%
																																	End of Period Shares Outstanding (000s)			194,539						204,592						(10,053)						(5)		%
																																	N/M - Not meaningful
																																	(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
																																	(2) Percentage calculations are based on actual balances rather than the rounded amounts presented in the table above.

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Northern Trust Corporation
NET INCOME TRENDS
($ in Millions except per share information)
																																													2024																								2025
						2020						2021						2022						2023						2024															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	2,321.6					$	2,487.3					$	2,496.3					$	2,461.9					$	2,632.8					Asset Servicing Trust, Investment and Other Servicing Fees									$	639.6					$	650.6					$	667.1					$	675.5					$	671.9
						1,673.4						1,873.8						1,936.3						1,899.9						2,095.0						WM Trust, Investment and Other Servicing Fees									503.3						515.5						529.5						546.7						541.9
						3,995.0						4,361.1						4,432.6						4,361.8						4,727.8									Total Fees						1,142.9						1,166.1						1,196.6						1,222.2						1,213.8
						290.4						292.6						288.6						203.9						231.2						Foreign Exchange Trading Income									57.0						58.4						54.1						61.7						58.7
						45.4						44.3						39.3						31.6						35.7						Treasury Management Fees									9.3						9.0						8.2						9.2						9.6
						133.2						140.2						136.2						135.0						150.5						Security Commissions and Trading Income									37.9						34.3						35.5						42.8						39.1
						194.0						243.9						191.3						228.7						1,157.4						Other Operating Income									61.0						924.7						111.8						59.9						50.7
						(0.4)						(0.3)						(214.0)						(169.5)						(189.3)						Investment Security Gains (Losses), net									(189.4)						0.1						—						—						—
						4,657.6						5,081.8						4,874.0						4,791.5						6,113.3									Total Noninterest Income						1,118.7						2,192.6						1,406.2						1,395.8						1,371.9
						1,477.6						1,418.3						1,932.8						2,039.5						2,208.9						Net Interest Income (FTE)(1)									535.4						529.8						569.4						574.3						573.7
						6,135.2						6,500.1						6,806.8						6,831.0						8,322.2									Total Revenue (FTE)(1)						1,654.1						2,722.4						1,975.6						1,970.1						1,945.6
						125.0						(81.5)						12.0						24.5						(3.0)						Provision for (Release of) Credit Losses									(8.5)						8.0						8.0						(10.5)						1.0
						1,947.1						2,011.0						2,248.0						2,321.8						2,471.1						Compensation									627.1						665.2						583.6						595.2						644.4
						387.7						431.4						437.4						405.2						417.8						Employee Benefits									101.1						100.2						109.2						107.3						109.7
						763.1						849.4						880.3						906.5						998.0						Outside Services									229.3						260.9						256.3						251.5						245.2
						673.5						736.3						838.8						945.5						1,075.0						Equipment and Software									252.7						277.5						270.4						274.4						280.9
						230.1						208.7						219.1						232.3						216.8						Occupancy									54.1						54.8						53.8						54.1						53.4
						346.7						299.1						359.3						472.9						455.2						Other Operating Expense									100.4						175.3						86.1						93.4						84.0
						4,348.2						4,535.9						4,982.9						5,284.2						5,633.9									Total Noninterest Expense						1,364.7						1,533.9						1,359.4						1,375.9						1,417.6
						1,662.0						2,045.7						1,811.9						1,522.3						2,691.3									Income before Income Taxes (FTE)(1)						297.9						1,180.5						608.2						604.7						527.0
						418.3						464.8						430.3						357.5						628.4						Provision for Income Taxes									75.9						277.5						136.2						138.8						129.4
						34.4						35.6						45.6						57.5						31.8						Taxable Equivalent Adjustment									7.3						6.9						7.1						10.5						5.6
						452.7						500.4						475.9						415.0						660.2									Total Taxes (FTE)(1)						83.2						284.4						143.3						149.3						135.0
						$	1,209.3					$	1,545.3					$	1,336.0					$	1,107.3					$	2,031.1								Net Income						$	214.7					$	896.1					$	464.9					$	455.4					$	392.0
						$	5.48					$	7.16					$	6.16					$	5.09					$	9.80					Earnings Per Share - Basic									$	0.96					$	4.35					$	2.23					$	2.27					$	1.91
						5.46						7.14						6.14						5.08						9.77						Earnings Per Share - Diluted									0.96						4.34						2.22						2.26						1.90
						209,008						208,899						208,867						207,564						201,870						Average Diluted Shares (000s)									205,135						203,739						200,549						198,114						196,125
						$	56.2					$	41.8					$	41.8					$	41.8					$	41.8					Preferred Dividends(2)									$	16.2					$	4.7					$	16.2					$	4.7					$	16.2
						(1) Fully taxable equivalent (FTE). Presentation on an FTE basis is a non-generally accepted accounting principle financial measure. Please refer to the Reconciliation to Fully Taxable Equivalent on page 11 for further detail.
						(2) Dividends on Preferred Stock in 2020 includes $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.

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Northern Trust Corporation
TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL
($ in Millions)
																																							2024																								2025
			2020						2021						2022						2023						2024						Asset Servicing						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
			$	1,586.1					$	1,818.8					$	1,700.1					$	1,689.5					$	1,792.6					Custody & Fund Administration						$	436.7					$	445.9					$	453.1					$	456.9					$	453.3
			511.1						443.5						555.1						528.1						595.2						Investment Management						140.0						145.7						152.6						156.9						152.5
			88.0						76.7						81.4						83.0						72.3						Securities Lending						17.9						16.5						17.5						20.4						17.9
			136.4						148.3						159.7						161.3						172.7						Other						45.0						42.5						43.9						41.3						48.2
			$	2,321.6					$	2,487.3					$	2,496.3					$	2,461.9					$	2,632.8								Total Asset Servicing Trust, Investment and Other Servicing Fees			$	639.6					$	650.6					$	667.1					$	675.5					$	671.9
																																	Wealth Management
			$	607.3					$	698.7					$	692.6					$	673.8					$	740.9					Central						$	178.3					$	180.7					$	186.6					$	195.3					$	189.1
			442.1						509.3						504.0						491.5						539.7						East						129.9						132.7						136.4						140.7						141.0
			337.7						380.2						382.1						378.0						418.9						West						99.9						103.3						105.7						110.0						108.0
			286.3						285.6						357.6						356.6						395.5						Global Family Office						95.2						98.8						100.8						100.7						103.8
			$	1,673.4					$	1,873.8					$	1,936.3					$	1,899.9					$	2,095.0								Total Wealth Management Trust, Investment and Other Servicing Fees			$	503.3					$	515.5					$	529.5					$	546.7					$	541.9

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Northern Trust Corporation
BALANCE SHEET
END OF PERIOD
($ in Millions)
																																	CHANGE (5)
						Assets															3/31/2025						3/31/2024						$						%
									Federal Reserve and Other Central Bank Deposits												$	52,794.5					$	40,269.5					$	12,525.0					31		%
									Interest-Bearing Due from and Deposits with Banks(1)												5,277.1						4,646.1						631.0						14		%
									Federal Funds Sold and Securities Purchased under Agreements to Resell												124.4						500.1						(375.7)						(75)		%
									Debt Securities:
												Available For Sale									30,464.3						25,638.9						4,825.4						19		%
												Held To Maturity									20,874.3						23,497.9						(2,623.6)						(11)		%
												Total Debt Securities									51,338.6						49,136.8						2,201.8						4		%
									Loans												40,833.3						47,342.6						(6,509.3)						(14)		%
									Other Interest-Earning Assets(2)												2,834.1						2,600.8						233.3						9		%
												Total Earning Assets									153,202.0						144,495.9						8,706.1						6		%
									Allowance for Credit Losses												(174.5)						(175.8)						1.3						(1)		%
									Cash and Due From Banks and Other Central Bank Deposits(3)												737.4						2,035.1						(1,297.7)						(64)		%
									Buildings and Equipment												477.4						488.0						(10.6)						(2)		%
									Goodwill												700.5						697.5						3.0						—		%
									Other Assets												10,128.4						8,570.3						1,558.1						18		%
												Total Assets									$	165,071.2					$	156,111.0					$	8,960.2					6		%
						Liabilities and Stockholders' Equity
									Savings, Money Market and Other												$	28,489.1					$	25,893.5					$	2,595.6					10		%
									Savings Certificates and Other Time												6,680.2						5,636.6						1,043.6						19		%
									Non-U.S. Offices - Interest-Bearing												73,951.0						67,084.7						6,866.3						10		%
												Total Interest-Bearing Deposits									109,120.3						98,614.8						10,505.5						11		%
									Federal Funds Purchased												2,377.6						2,600.5						(222.9)						(9)		%
									Securities Sold under Agreements to Repurchase												335.7						511.4						(175.7)						(34)		%
									Other Borrowings(4)												6,534.5						6,526.2						8.3						—		%
									Senior Notes												2,809.3						2,743.5						65.8						2		%
									Long-Term Debt												4,085.6						4,069.0						16.6						—		%
												Total Interest-Bearing Liabilities									125,263.0						115,065.4						10,197.6						9		%
									Demand and Other Noninterest-Bearing Deposits												21,905.3						25,326.9						(3,421.6)						(14)		%
									Other Liabilities												5,024.4						3,616.9						1,407.5						39		%
												Total Liabilities									152,192.7						144,009.2						8,183.5						6		%
									Common Equity												11,993.6						11,216.9						776.7						7		%
									Preferred Equity												884.9						884.9						—						—		%
												Total Stockholders' Equity									12,878.5						12,101.8						776.7						6		%
												Total Liabilities and Stockholders' Equity									$	165,071.2					$	156,111.0					$	8,960.2					6		%
						(1)			Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
						(2)			Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
						(3)			Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
						(4)			Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
						(5)			Percentage calculations are based on actual balances rather than the rounded amounts presented in the table above.

5

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Northern Trust Corporation
BALANCE SHEET TRENDS
PERIOD AVERAGES(1)
($ in Millions)
																																													2024																								2025
						2020						2021						2022						2023						2024			Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	27,904.2					$	39,028.2					$	36,248.8					$	31,205.4					$	35,179.9					Federal Reserve and Other Central Bank Deposits									$	35,897.3					$	35,924.1					$	36,067.3					$	32,847.0					$	37,161.0
						5,400.8						5,779.7						4,192.5						4,333.9						4,800.8						Interest-Bearing Due from and Deposits with Banks(2)									4,418.0						4,999.7						4,828.1						4,955.3						4,877.6
						1,255.4						1,067.5						1,076.7						957.0						727.9						Federal Funds Sold and Securities Purchased under Agreements to Resell									518.4						732.2						977.4						681.3						394.5
																																				Debt Securities:
						40,642.7						38,986.9						32,060.2						24,356.6						26,871.9									Available For Sale						24,049.6						26,591.4						27,462.6						29,350.4						30,168.3
						14,353.3						20,617.0						22,970.0						25,511.9						23,230.7									Held To Maturity						24,498.9						23,373.8						22,834.0						22,231.6						21,821.9
						1.1						0.6						12.1						0.5						—									Trading Account						—						—						—						—						—
						54,997.1						59,604.5						55,042.3						49,869.0						50,102.6									Total Debt Securities						48,548.5						49,965.2						50,296.6						51,582.0						51,990.2
						33,498.8						37,207.5						41,030.6						42,177.0						40,916.7						Loans and Leases									41,586.9						41,034.6						39,884.0						41,169.9						41,076.5
						1,076.6						1,185.6						1,248.1						2,259.0						2,688.4						Other Interest-Earning Assets(3)									2,847.7						2,745.3						2,714.4						2,448.5						2,508.1
						124,132.9						143,873.0						138,839.0						130,801.3						134,416.3									Total Earning Assets						133,816.8						135,401.1						134,767.8						133,684.0						138,007.9
						(178.0)						(173.0)						(154.1)						(172.8)						(185.2)						Allowance for Credit Losses									(191.8)						(175.8)						(180.5)						(192.9)						(175.6)
						2,603.0						2,285.9						2,069.5						1,771.6						1,698.8						Cash and Due From Banks and Other Central Bank Deposits(4)									1,799.5						1,802.0						1,742.3						1,453.4						1,041.2
						509.3						502.7						488.7						484.8						488.0						Buildings and Equipment									498.2						485.8						482.2						485.8						484.8
						695.4						707.3						692.2						696.2						699.8						Goodwill									699.4						697.1						702.9						699.7						696.4
						9,048.5						9,167.3						10,616.6						9,068.1						9,515.8						Other Assets									8,496.2						9,791.0						9,328.2						10,440.2						10,207.4
						$	136,811.1					$	156,363.2					$	152,551.9					$	142,649.2					$	146,633.5								Total Assets						$	145,118.3					$	148,001.2					$	146,842.9					$	146,570.2					$	150,262.1
																																	Liabilities and Stockholders' Equity
						$	23,396.4					$	28,339.0					$	30,205.0					$	24,172.4					$	26,236.3					Savings, Money Market and Other									$	27,349.0					$	27,554.9					$	25,233.0					$	24,834.8					$	27,720.5
						1,266.4						887.2						1,059.7						3,341.2						5,856.9						Savings Certificates and Other Time									4,554.3						6,027.4						6,639.6						6,193.9						6,874.0
						60,486.3						69,713.4						65,031.3						60,008.6						63,854.7						Non-U.S. Offices - Interest-Bearing									63,752.8						63,216.3						64,347.2						64,094.5						64,454.3
						85,149.1						98,939.6						96,296.0						87,522.2						95,947.9									Total Interest-Bearing Deposits						95,656.1						96,798.6						96,219.8						95,123.2						99,048.8
						980.9						190.6						1,407.8						5,144.3						2,616.4						Federal Funds Purchased									2,650.1						3,010.7						2,320.9						2,488.8						2,393.6
						218.3						232.0						433.6						401.5						518.5						Securities Sold under Agreements to Repurchase									490.1						574.6						504.3						505.4						442.4
						6,401.1						5,049.8						5,463.5						10,339.5						6,980.3						Other Borrowings(5)									6,852.1						7,053.5						7,085.9						6,928.9						7,024.4
						3,233.8						2,856.4						2,756.0						2,734.0						2,764.0						Senior Notes									2,748.7						2,728.7						2,795.6						2,782.4						2,781.6
						1,189.2						1,166.1						1,258.9						2,586.0						4,073.2						Long-Term Debt									4,067.0						4,071.1						4,075.1						4,079.4						4,083.5
						277.7						218.4						—						—						—						Floating Rate Capital Debt									—						—						—						—						—
						97,450.1						108,652.9						107,615.8						108,727.5						112,900.3									Total Interest-Bearing Liabilities						112,464.1						114,237.2						113,001.6						111,908.1						115,774.3
						23,362.0						31,143.5						29,296.4						17,723.3						16,752.4						Demand and Other Noninterest-Bearing Deposits									16,706.5						16,543.0						16,340.9						17,416.6						16,870.3
						4,806.4						4,869.8						4,558.3						4,701.6						4,681.0						Other Liabilities									4,164.0						4,862.2						5,026.3						4,668.0						5,013.5
						125,618.0						144,666.2						141,471.0						131,152.4						134,333.7									Total Liabilities						133,334.6						135,642.4						134,368.8						133,992.7						137,658.1
						10,306.7						10,812.1						10,196.5						10,611.9						11,414.9						Common Equity									10,898.8						11,473.9						11,589.2						11,692.6						11,719.1
						885.9						884.9						884.9						884.9						884.9						Preferred Equity									884.9						884.9						884.9						884.9						884.9
						11,193.0						11,697.0						11,081.4						11,496.8						12,299.8									Total Stockholders' Equity						11,783.7						12,358.8						12,474.1						12,577.5						12,604.0
						$	136,811.0					$	156,363.2					$	152,551.9					$	142,649.2					$	146,633.5								Total Liabilities and Stockholders' Equity						$	145,118.3					$	148,001.2					$	146,842.9					$	146,570.2					$	150,262.1
(1)						Summations may not equal due to rounding.
(2)						Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)						Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)						Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)						Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

6

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Northern Trust Corporation
BALANCE SHEET MIX TRENDS
PERIOD AVERAGES(1)
																																																2024																								2025
						2020						2021						2022						2023						2024			Assets															1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						20.4		%				25.0		%				23.8		%				21.9		%				24.0		%				Federal Reserve and Other Central Bank Deposits												24.7		%				24.3		%				24.6		%				22.4		%				24.7		%
						3.9						3.7						2.7						3.0						3.3						Interest-Bearing Due from and Deposits with Banks(2)												3.0						3.4						3.3						3.4						3.2
						0.9						0.7						0.7						0.7						0.5						Federal Funds Sold and Securities Purchased under Agreements to Resell												0.4						0.5						0.7						0.5						0.3
																																				Debt Securities:
						29.7						24.9						21.0						17.1						18.3									Available For Sale									16.6						18.0						18.7						20.0						20.1
						10.5						13.2						15.1						17.9						15.8									Held To Maturity									16.9						15.8						15.5						15.2						14.5
						40.2						38.1						36.1						35.0						34.2									Total Debt Securities									33.5						33.8						34.3						35.2						34.6
						24.5						23.8						26.9						29.6						27.9						Loans and Leases												28.7						27.7						27.2						28.1						27.3
						0.8						0.8						0.8						1.6						1.8						Other Interest-Earning Assets(3)												2.0						1.9						1.8						1.7						1.7
						90.7						92.0						91.0						91.7						91.7									Total Earning Assets									92.2						91.5						91.8						91.2						91.8
						(0.1)						(0.1)						(0.1)						(0.1)						(0.1)						Allowance for Credit Losses												(0.1)						(0.1)						(0.1)						(0.1)						(0.1)
						1.9						1.5						1.4						1.2						1.2						Cash and Due From Banks and Other Central Bank Deposits(4)												1.2						1.2						1.2						1.0						0.7
						0.4						0.3						0.3						0.3						0.3						Buildings and Equipment												0.3						0.3						0.3						0.3						0.3
						0.5						0.5						0.5						0.5						0.5						Goodwill												0.5						0.5						0.5						0.5						0.5
						6.6						5.9						7.0						6.4						6.5						Other Assets												5.9						6.6						6.4						7.1						6.8
						100.0		%				100.0		%				100.0		%				100.0		%				100.0		%							Total Assets									100.0		%				100.0		%				100.0		%				100.0		%				100.0		%
																																	Liabilities and Stockholders' Equity
						17.1		%				18.1		%				19.8		%				16.9		%				17.9		%				Savings, Money Market and Other												18.8		%				18.6		%				17.2		%				16.9		%				18.4		%
						0.9						0.6						0.7						2.3						4.0						Savings Certificates and Other Time												3.1						4.1						4.5						4.2						4.6
						44.2						44.6						42.6						42.1						43.5						Non-U.S. Offices - Interest-Bearing												43.9						42.7						43.8						43.7						42.9
						62.2						63.3						63.1						61.4						65.4									Total Interest-Bearing Deposits									65.9						65.4						65.5						64.9						65.9
						0.7						0.1						0.9						3.6						1.8						Federal Funds Purchased												1.8						2.0						1.6						1.7						1.6
						0.2						0.1						0.3						0.3						0.4						Securities Sold under Agreements to Repurchase												0.3						0.4						0.3						0.3						0.3
						4.7						3.2						3.6						7.2						4.8						Other Borrowings(5)												4.7						4.8						4.8						4.7						4.7
						2.4						1.8						1.8						1.9						1.9						Senior Notes												1.9						1.8						1.9						1.9						1.9
						0.9						0.7						0.8						1.8						2.8						Long-Term Debt												2.8						2.8						2.8						2.8						2.7
						0.2						0.1						—						—						—						Floating Rate Capital Debt												—						—						—						—						—
						71.2						69.5						70.5						76.2						77.0									Total Interest-Bearing Liabilities									77.5						77.2						77.0						76.4						77.0
						17.1						19.9						19.2						12.4						11.4						Demand and Other Noninterest-Bearing Deposits												11.5						11.2						11.1						11.9						11.2
						3.5						3.1						3.0						3.3						3.2						Other Liabilities												2.9						3.3						3.4						3.2						3.3
						91.8						92.5						92.7						91.9						91.6									Total Liabilities									91.9						91.6						91.5						91.4						91.6
						7.5						6.9						6.7						7.4						7.8						Common Equity												7.5						7.8						7.9						8.0						7.8
						0.6						0.6						0.6						0.6						0.6						Preferred Equity												0.6						0.6						0.6						0.6						0.6
						8.2						7.5						7.3						8.1						8.4									Total Stockholders' Equity									8.1						8.4						8.5						8.6						8.4
						100.0		%				100.0		%				100.0		%				100.0		%				100.0		%							Total Liabilities and Stockholders' Equity									100.0		%				100.0		%				100.0		%				100.0		%				100.0		%
(1)						Summations may not equal due to rounding.
(2)						Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC.
(3)						Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
(4)						Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets in our periodic filings with the SEC.
(5)						Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

7

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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).
																																																2024																								2025
						2020						2021						2022						2023						2024						Earnings Assets												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						0.10		%				0.03		%				1.30		%				4.69		%				4.93		%							Federal Reserve and Other Central Bank Deposits									5.15		%				5.12		%				4.98		%				4.44		%				4.15		%
						0.41						0.16						1.11						3.00						2.55									Interest-Bearing Due from and Deposits with Banks(2)									3.15						2.53						2.35						2.26						1.95
						0.32						0.33						9.65						165.68						458.90									Federal Funds Sold and Securities Purchased under Agreements to Resell(3)									639.29						474.27						362.57						444.99						705.95
																																							Debt Securities:
						1.77						1.28						1.91						4.35						5.37												Available for Sale						5.41						5.52						5.50						5.09						4.73
						0.59						0.80						1.26						1.87						1.94												Held to Maturity						2.02						1.95						1.88						1.89						1.94
						3.27						1.59						3.84						13.50						—												Trading Account						—						—						—						—						—
						1.46						1.11						1.64						3.08						3.78												Total Debt Securities						3.70						3.85						3.86						3.71						3.56
						2.32						1.92						3.28						6.06						6.28									Loans and Leases									6.34						6.38						6.45						5.97						5.68
						3.63						3.43						4.03						4.87						4.85									Other Interest-Earning Assets(4)									4.51						4.68						4.71						5.57						3.88
						1.35		%				1.00		%				2.11		%				5.64		%				7.29		%										Total Earning Assets						7.37		%				7.47		%				7.49		%				6.82		%				6.31		%
																																				Interest-Bearing Funds
						0.20		%				0.05		%				0.74		%				2.85		%				3.66		%							Savings, Money Market and Other									3.72		%				3.75		%				3.76		%				3.39		%				3.11		%
						1.30						0.55						1.68						4.54						5.11									Savings Certificates and Other Time									5.19						5.23						5.19						4.84						4.48
						(0.03)						(0.11)						0.56						3.07						3.38									Non-U.S. Offices - Interest-Bearing									3.59						3.58						3.39						2.95						2.60
						0.06						(0.06)						0.63						3.07						3.56												Total Interest-Bearing Deposits						3.71						3.73						3.61						3.19						2.87
						0.22						(0.19)						2.43						4.99						4.94									Federal Funds Purchased									5.11						5.16						5.07						4.38						4.00
						0.47						0.07						20.94						383.84						632.65									Securities Sold under Agreements to Repurchase(3)									667.86						596.00						686.17						586.70						617.15
						0.71						0.28						2.31						5.25						5.20									Other Borrowings(5)									5.20						5.43						5.32						4.82						4.60
						2.24						1.69						3.36						6.22						6.28									Senior Notes									6.45						6.50						6.30						5.88						5.65
						2.24						1.81						3.49						5.69						5.49									Long-Term Debt									5.50						5.50						5.47						5.47						5.52
						1.52						0.78						—						—						—									Floating Rate Capital Debt									—						—						—						—						—
						0.21		%				0.02		%				0.92		%				4.91		%				6.72		%										Total Interest-Bearing Liabilities						6.86		%				6.98		%				6.93		%				6.10		%				5.51		%
						1.14		%				0.98		%				1.19		%				0.73		%				0.57		%							Net Interest Spread									0.51		%				0.49		%				0.56		%				0.72		%				0.80		%
						1.19		%				0.99		%				1.39		%				1.56		%				1.64		%							Net Interest Margin									1.61		%				1.57		%				1.68		%				1.71		%				1.69		%
			(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)			Includes the impact of balance sheet netting under master netting arrangements of approximately $62.0 billion for the three months ended March 31, 2025. Excluding the impact of netting, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.46% for the three months ended March 31, 2025. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.37% for the three months ended March 31, 2025. See previous filings for impact of netting on prior periods.
			(4)			Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.
			(5)			Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

8

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Northern Trust Corporation
ASSET QUALITY
END OF PERIOD
($ in Millions)
																																																			2024																								2025
						2020						2021						2022						2023						2024																					1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	124.4					$	259.9					$	184.7					$	200.9					$	220.4					Beginning Allowance for Credit Losses															$	220.4					$	201.5					$	209.6					$	220.0					$	206.1
						13.7						—						—						—						—						Cumulative Effect Adjustment(1)															—						—						—						—						—
						125.0						(81.5)						12.0						24.5						(3.0)						Provision for (Release of) Credit Losses															(8.5)						8.0						8.0						(10.5)						1.0
																																				(Charge-offs) Recoveries
						(9.7)						(0.7)						(6.0)						(8.7)						(15.5)									Charge-offs												(11.1)						(0.3)						—						(4.1)						(0.3)
						6.5						7.0						10.2						3.7						4.2									Recoveries												0.7						0.4						2.4						0.7						0.5
						(3.2)						6.3						4.2						(5.0)						(11.3)												Net (Charge-offs) Recoveries									(10.4)						0.1						2.4						(3.4)						0.2
						$	259.9					$	184.7					$	200.9					$	220.4					$	206.1														Ending Allowance for Credit Losses						$	201.5					$	209.6					$	220.0					$	206.1					$	207.3
																																				Allowance for Credit Losses Assigned to:
						$	190.7					$	138.4					$	144.3					$	178.7					$	168.0								Loans and Leases												$	162.4					$	167.7					$	184.8					$	168.0					$	167.1
						61.1						34.1						38.5						26.9						30.4									Undrawn Loan Commitments and Standby Letters of Credit												25.2						29.5						26.5						30.4						32.8
						8.1						12.2						18.1						14.8						7.7									Debt Securities and Other Financial Assets												13.9						12.4						8.7						7.7						7.4
						$	259.9					$	184.7					$	200.9					$	220.4					$	206.1											Total Allowance for Credit Losses									$	201.5					$	209.6					$	220.0					$	206.1					$	207.3
						$	33,499					$	37,208					$	41,031					$	42,177					$	40,917					Average Loans and Leases Outstanding															$	41,587					$	41,035					$	39,884					$	41,170					$	41,077
																																				Annualized Loan-Related Net (Charge-offs) Recoveries to
						(0.01)		%				0.02		%				0.01		%				(0.01)		%				(0.03)		%							Average Loans and Leases												(0.10)		%				—		%				0.02		%				(0.03)		%				—		%
						$	33,760					$	40,481					$	42,893					$	47,617					$	43,391					End of Period Loans and Leases Outstanding															$	47,343					$	42,135					$	41,950					$	43,391					$	40,833
																																				Allowance for Credit Losses Assigned to Loans
						0.56		%				0.34		%				0.34		%				0.38		%				0.39		%							and Leases to Total Loans and Leases												0.34		%				0.40		%				0.44		%				0.39		%				0.41		%
																																				Nonaccrual Assets
						$	131.7					$	122.3					$	45.9					$	63.6					$	56.0								Nonaccrual Loans and Leases												$	37.0					$	38.5					$	39.3					$	56.0					$	73.1
						0.7						3.0						—						1.5						—									Other Real Estate Owned (OREO)												—						—						—						—						—
						$	132.4					$	125.3					$	45.9					$	65.1					$	56.0											Total Nonaccrual Assets									$	37.0					$	38.5					$	39.3					$	56.0					$	73.1
						0.39		%				0.31		%				0.11		%				0.14		%				0.13		%				Nonaccrual Assets to Loans and Leases and OREO															0.08		%				0.09		%				0.09		%				0.13		%				0.18		%
																																				Loans and Leases Allowance to Nonaccrual
						1.4x						1.1x						3.1x						2.8x						3.0x									Loans and Leases												4.4x						4.4x						4.7x						3.0x						2.3x
			(1)			Upon the January 1, 2020 adoption of ASU 2016-13, Northern Trust increased the allowance for credit losses by $13.7 million, with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of tax.

9

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Northern Trust Corporation
ASSETS UNDER MANAGEMENT AND CUSTODY
END OF PERIOD
($ in Billions)
																																																2024																								2025
						2020						2021						2022						2023						2024						Assets Under Management												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						$	1,057.5					$	1,191.0					$	898.1					$	1,032.0					$	1,159.7					Asset Servicing												$	1,080.1					$	1,107.3					$	1,177.9					$	1,159.7					$	1,160.9
																																							Asset allocation:
						551.7						626.6						485.0						563.9						644.6												Equities						602.5						613.7						650.0						644.6						625.8
						120.1						132.6						107.1						116.2						127.2												Fixed Income Securities						116.3						125.8						131.0						127.2						130.2
						198.8						236.2						157.7						184.5						211.7												Cash and Other Assets						198.2						207.2						220.9						211.7						214.2
						186.9						195.6						148.3						167.4						176.2												Securities Lending Collateral						163.1						160.6						176.0						176.2						190.7
						$	347.8					$	416.1					$	351.4					$	402.5					$	450.7					Wealth Management												$	420.6					$	419.4					$	443.9					$	450.7					$	446.9
																																							Asset allocation:
						182.0						229.9						186.3						221.6						258.5												Equities						238.6						243.2						258.8						258.5						254.2
						84.7						83.5						79.4						87.2						90.3												Fixed Income Securities						87.2						85.8						88.7						90.3						91.2
						81.1						102.7						85.7						93.7						101.6												Cash and Other Assets						94.7						90.3						96.3						101.6						101.1
						—						—						—						—						0.3												Securities Lending Collateral						0.1						0.1						0.1						0.3						0.4
						$	1,405.3					$	1,607.1					$	1,249.5					$	1,434.5					$	1,610.4					Total Assets Under Management												$	1,500.7					$	1,526.7					$	1,621.8					$	1,610.4					$	1,607.8
																																							Asset allocation:
						$	733.7					$	856.5					$	671.3					$	785.5					$	903.1											Equities						$	841.1					$	856.9					$	908.8					$	903.1					$	880.0
						204.8						216.1						186.5						203.4						217.5												Fixed Income Securities						203.5						211.6						219.7						217.5						221.4
						279.9						338.9						243.4						278.2						313.3												Cash and Other Assets						292.9						297.5						317.2						313.3						315.3
						186.9						195.6						148.3						167.4						176.5												Securities Lending Collateral						163.2						160.7						176.1						176.5						191.1
																																				Assets Under Custody / Administration
						$	13,653.1					$	15,183.2					$	12,705.5					$	14,362.6					$	15,640.1								Asset Servicing									$	15,385.4					$	15,470.8					$	16,278.0					$	15,640.1					$	15,804.7
						879.4						1,065.6						898.5						1,042.3						1,147.9									Wealth Management									1,087.1						1,096.6						1,145.0						1,147.9						1,119.3
						$	14,532.5					$	16,248.8					$	13,604.0					$	15,404.9					$	16,788.0					Total Assets Under Custody / Administration												$	16,472.5					$	16,567.4					$	17,423.0					$	16,788.0					$	16,924.0
																																				Assets Under Custody
						$	10,387.7					$	11,554.8					$	9,712.3					$	10,882.0					$	12,214.0					Asset Servicing												$	11,723.1					$	11,955.5					$	12,662.1					$	12,214.0					$	12,163.6
																																							Asset allocation:
						4,751.0						5,404.3						4,312.8						5,028.9						5,938.6												Equities						5,511.4						5,711.7						6,098.1						5,938.6						5,832.8
						3,742.6						3,997.5						3,252.1						3,600.4						3,742.1												Fixed Income Securities						3,665.8						3,662.0						3,887.3						3,742.1						3,868.6
						1,707.2						1,957.4						1,999.1						2,085.3						2,357.1												Cash and Other Assets						2,382.8						2,421.2						2,500.7						2,357.1						2,271.5
						186.9						195.6						148.3						167.4						176.2												Securities Lending Collateral						163.1						160.6						176.0						176.2						190.7
						$	875.1					$	1,057.5					$	892.3					$	1,034.5					$	1,135.2					Wealth Management												$	1,081.0					$	1,085.9					$	1,132.7					$	1,135.2					$	1,105.9
																																							Asset allocation:
						542.9						644.8						497.9						623.6						700.4												Equities						661.1						669.3						701.4						700.4						669.0
						128.3						142.1						134.0						136.7						142.8												Fixed Income Securities						138.4						139.2						144.4						142.8						147.1
						203.9						270.6						260.4						274.2						291.7												Cash and Other Assets						281.4						277.3						286.8						291.7						289.4
						—						—						—						—						0.3												Securities Lending Collateral						0.1						0.1						0.1						0.3						0.4
						$	11,262.8					$	12,612.3					$	10,604.6					$	11,916.5					$	13,349.2					Total Assets Under Custody												$	12,804.1					$	13,041.4					$	13,794.8					$	13,349.2					$	13,269.5
																																							Asset allocation:
						$	5,293.9					$	6,049.1					$	4,810.7					$	5,652.5					$	6,639.0											Equities						$	6,172.5					$	6,381.0					$	6,799.5					$	6,639.0					$	6,501.8
						3,870.9						4,139.6						3,386.1						3,737.1						3,884.9												Fixed Income Securities						3,804.2						3,801.2						4,031.7						3,884.9						4,015.7
						1,911.1						2,228.0						2,259.5						2,359.5						2,648.8												Cash and Other Assets						2,664.2						2,698.5						2,787.5						2,648.8						2,560.9
						186.9						195.6						148.3						167.4						176.5												Securities Lending Collateral						163.2						160.7						176.1						176.5						191.1
																																				Memo
						$	114.0					$	144.9					$	119.9					$	144.3					$	170.2								WM Global Family Office AUM									$	152.4					$	152.7					$	161.8					$	170.2					$	169.7
						600.7						742.6						614.9						728.0						802.4									WM Global Family Office AUC									762.1						768.1						798.0						802.4						779.2

10

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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.
																																																						2024																								2025
			2020						2021						2022						2023						2024																											1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
			$	1,643.5					$	1,406.5					$	2,877.7					$	7,325.0					$	9,762.3																	Interest Income - GAAP									$	2,445.6					$	2,506.5					$	2,530.2					$	2,280.0					$	2,140.9
			34.4						35.6						45.6						57.5						31.8																		Add: FTE Adjustment									7.3						6.9						7.1						10.5						5.6
			1,677.9						1,442.1						2,923.3						7,382.5						9,794.1																					Interest Income (FTE) - Non-GAAP						2,452.9						2,513.4						2,537.3						2,290.5						2,146.5
			1,443.2						1,382.7						1,887.2						1,982.0						2,177.1																		Net Interest Income - GAAP									528.1						522.9						562.3						563.8						568.1
			34.4						35.6						45.6						57.5						31.8																		Add: FTE Adjustment									7.3						6.9						7.1						10.5						5.6
			1,477.6						1,418.3						1,932.8						2,039.5						2,208.9																					Net Interest Income (FTE) - Non-GAAP						535.4						529.8						569.4						574.3						573.7
			6,100.8						6,464.5						6,761.2						6,773.5						8,290.4																		Total Revenue - GAAP									1,646.8						2,715.5						1,968.5						1,959.6						1,940.0
			34.4						35.6						45.6						57.5						31.8																		Add: FTE Adjustment									7.3						6.9						7.1						10.5						5.6
			6,135.2						6,500.1						6,806.8						6,831.0						8,322.2																					Total Revenue (FTE) - Non-GAAP						1,654.1						2,722.4						1,975.6						1,970.1						1,945.6
			1,627.6						2,010.1						1,766.3						1,464.8						2,659.5																		Income before Income Taxes - GAAP									290.6						1,173.6						601.1						594.2						521.4
			34.4						35.6						45.6						57.5						31.8																		Add: FTE Adjustment									7.3						6.9						7.1						10.5						5.6
			1,662.0						2,045.7						1,811.9						1,522.3						2,691.3																					Income before Income Taxes (FTE) - Non-GAAP						297.9						1,180.5						608.2						604.7						527.0
			418.3						464.8						430.3						357.5						628.4																		Provision for Income Taxes - GAAP									75.9						277.5						136.2						138.8						129.4
			34.4						35.6						45.6						57.5						31.8																		Add: FTE Adjustment									7.3						6.9						7.1						10.5						5.6
			452.7						500.4						475.9						415.0						660.2																					Provision for Income Taxes (FTE) - Non-GAAP						83.2						284.4						143.3						149.3						135.0

11

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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.
																																										2024																								2025
						2020						2021						2022						2023						2024												1st Qtr						2nd Qtr						3rd Qtr						4th Qtr						1st Qtr						2nd Qtr						3rd Qtr						4th Qtr
						26.7		%				31.1		%				26.1		%				21.6		%				32.1		%				Profit Margin (pre-tax) - GAAP (1)						17.6		%				43.2		%				30.5		%				30.3		%				26.9		%
						27.1		%				31.5		%				26.6		%				22.3		%				32.3		%				Profit Margin (pre-tax) (FTE) - Non-GAAP (1)						18.0		%				43.4		%				30.8		%				30.7		%				27.1		%
						19.8		%				23.9		%				19.8		%				16.3		%				24.5		%				Profit Margin (after-tax) - GAAP (2)						13.0		%				33.0		%				23.6		%				23.2		%				20.2		%
						19.7		%				23.8		%				19.6		%				16.2		%				24.4		%				Profit Margin (after-tax) (FTE) - Non-GAAP (2)						13.0		%				32.9		%				23.5		%				23.1		%				20.1		%
						25.7		%				23.1		%				24.4		%				24.4		%				23.6		%				Effective Tax Rate - GAAP (3)						26.1		%				23.6		%				22.7		%				23.4		%				24.8		%
						27.2		%				24.5		%				26.3		%				27.3		%				24.5		%				Effective Tax Rate (FTE) - Non-GAAP (3)						27.9		%				24.1		%				23.5		%				24.7		%				25.6		%
						76.3		%				78.6		%				72.1		%				70.7		%				73.7		%				Noninterest Income to Total Revenue - GAAP (4)						67.9		%				80.7		%				71.4		%				71.2		%				70.7		%
						75.9		%				78.2		%				71.6		%				70.1		%				73.5		%				Noninterest Income to Total Revenue (FTE) - Non-GAAP (4)						67.6		%				80.5		%				71.2		%				70.8		%				70.5		%
						65.5		%				67.5		%				65.6		%				64.4		%				57.0		%				Trust Fees to Total Revenue - GAAP (5)						69.4		%				42.9		%				60.8		%				62.4		%				62.6		%
						65.1		%				67.1		%				65.1		%				63.9		%				56.8		%				Trust Fees to Total Revenue (FTE) - Non-GAAP (5)						69.1		%				42.8		%				60.6		%				62.0		%				62.4		%
						1.11		%				0.96		%				1.15		%				0.69		%				0.54		%				Net Interest Spread - GAAP (6)						0.49		%				0.47		%				0.54		%				0.69		%				0.78		%
						1.14		%				0.98		%				1.19		%				0.73		%				0.57		%				Net Interest Spread (FTE) - Non-GAAP (6)						0.51		%				0.49		%				0.56		%				0.72		%				0.80		%
						1.16		%				0.96		%				1.36		%				1.52		%				1.62		%				Net Interest Margin - GAAP (7)						1.59		%				1.55		%				1.66		%				1.68		%				1.67		%
						1.19		%				0.99		%				1.39		%				1.56		%				1.64		%				Net Interest Margin (FTE) - Non-GAAP (7)						1.61		%				1.57		%				1.68		%				1.71		%				1.69		%
			(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.

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