Results
Northern Trust Corporation
07/17/2024 | Press release | Archived content
Second Quarter 2024 Earnings Trend Report (Excel)
Cover
| Financial Trends | |
| Second Quarter 2024 | |
| July 17, 2024 | |
| Please direct inquiries to: | |
| Jennifer Childe | |
| Senior Vice President, Director of Investor Relations | |
| (312) 444-3290 or [email protected] | |
| Grace Higgins | |
| Second Vice President, Investor Relations | |
| (847) 946-9113 or [email protected] | |
| The historical financial results and trends reflected in this report are not indicative of future financial results and trends for | |
| Northern Trust Corporation. This report should be read in conjunction with the Corporation's Second Quarter 2024 earnings | |
| press release, 2023 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
| 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) |
Financial Summary - P. 1
| Northern Trust Corporation | |||||||||||||
| FINANCIAL SUMMARY | |||||||||||||
| ($ in Millions except per share information) | |||||||||||||
| keep links | 2023 | 2024 | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| Profitability: | |||||||||||||
| $ 1,492.2 | $ 1,209.3 | $ 1,545.3 | $ 1,336.0 | $ 1,107.3 | $ 1,110.8 | Net Income | $ 334.6 | $ 331.8 | $ 327.8 | $ 113.1 | $ 214.7 | $ 896.1 | |
| 1,428.9 | 1,141.0 | 1,490.6 | 1,282.4 | $ 1,053.9 | 1,080.4 | Earnings Allocated to Common and Potential | 315.2 | 323.7 | 308.5 | 106.5 | 196.1 | 884.3 | |
| Common Shares | |||||||||||||
| $ 6.66 | $ 5.48 | $ 7.16 | $ 6.16 | $ 5.09 | $ 5.30 | Basic Earnings Per Share | $ 1.51 | $ 1.56 | $ 1.49 | $ 0.52 | $ 0.96 | $ 4.35 | |
| 6.63 | 5.46 | 7.14 | 6.14 | 5.08 | 5.28 | Diluted Earnings Per Share | 1.51 | 1.56 | 1.49 | 0.52 | 0.96 | 4.34 | |
| -% | (18%) | 31% | (14%) | (17%) | (26%) | Diluted EPS Growth over Previous Year | (15%) | (16%) | (17%) | (27%) | (37%) | 179% | |
| 14.9 % | 11.2 % | 13.9 % | 12.7 % | 10.0 % | 19.6 % | Return on Average Common Equity | 12.4 % | 12.4 % | 11.6 % | 4.0 % | 7.3 % | 31.2 % | |
| 1.27 % | 0.88 % | 0.99 % | 0.88 % | 0.78 % | 1.52 % | Return on Average Assets | 0.92 % | 0.91 % | 0.93 % | 0.33 % | 0.60 % | 2.44 % | |
| 32.4 % | 27.1 % | 31.5 % | 26.6 % | 22.3 % | 33.8 % | Profit Margin (pre-tax) (FTE)(1) | 26.0 % | 25.6 % | 25.7 % | 10.5 % | 18.0 % | 43.4 % | |
| 24.4 % | 19.7 % | 23.8 % | 19.6 % | 16.2 % | 25.4 % | Profit Margin (after-tax) (FTE)(1) | 19.0 % | 18.7 % | 18.8 % | 7.2 % | 13.0 % | 32.9 % | |
| 72.0 % | 75.9 % | 78.2 % | 71.6 % | 70.1 % | 75.7 % | Noninterest Income to Total Revenue (FTE)(1) | 69.0 % | 70.4 % | 73.0 % | 67.9 % | 67.6 % | 80.5 % | |
| 63.1 % | 65.1 % | 67.1 % | 65.1 % | 63.9 % | 52.8 % | Trust Fees to Total Revenue (FTE)(1) | 60.5 % | 61.9 % | 63.9 % | 69.7 % | 69.1 % | 42.8 % | |
| 23.2 % | 25.7 % | 23.1 % | 24.4 % | 24.4 % | 24.1 % | Effective Tax Rate (US GAAP) | 24.6 % | 24.7 % | 24.5 % | 22.4 % | 26.1 % | 23.6 % | |
| 24.5 % | 27.2 % | 24.5 % | 26.3 % | 27.3 % | 24.9 % | Effective Tax Rate (FTE)(1) | 26.8 % | 26.9 % | 26.8 % | 30.9 % | 27.9 % | 24.1 % | |
| Capital Ratios:(2) | |||||||||||||
| Standardized Approach | |||||||||||||
| 12.7 % | 12.8 % | 11.9 % | 10.8 % | 11.4 % | 12.6 % | Common Equity Tier 1 Capital | 11.3 % | 11.3 % | 11.4 % | 11.4 % | 11.4 % | 12.6 % | |
| 14.5 % | 13.9 % | 12.9 % | 11.8 % | 12.3 % | 13.6 % | Tier 1 Capital | 12.3 % | 12.3 % | 12.4 % | 12.3 % | 12.4 % | 13.6 % | |
| 16.3 % | 15.6 % | 14.1 % | 13.9 % | 14.2 % | 15.5 % | Total Capital | 14.4 % | 14.4 % | 14.5 % | 14.2 % | 14.2 % | 15.5 % | |
| 8.7 % | 7.6 % | 6.9 % | 7.1 % | 8.1 % | 8.0 % | Tier 1 Leverage | 7.3 % | 7.4 % | 7.9 % | 8.1 % | 7.8 % | 8.0 % | |
| Advanced Approach | |||||||||||||
| 13.2 % | 13.4 % | 13.2 % | 11.5 % | 13.4 % | 13.9 % | Common Equity Tier 1 Capital | 11.7 % | 13.0 % | 13.2 % | 13.4 % | 13.5 % | 13.9 % | |
| 15.0 % | 14.5 % | 14.3 % | 12.5 % | 14.5 % | 15.0 % | Tier 1 Capital | 12.7 % | 14.1 % | 14.3 % | 14.5 % | 14.6 % | 15.0 % | |
| 16.8 % | 15.9 % | 15.3 % | 14.5 % | 16.5 % | 16.9 % | Total Capital | 14.7 % | 16.3 % | 16.5 % | 16.5 % | 16.5 % | 16.9 % | |
| 8.7 % | 7.6 % | 6.9 % | 7.1 % | 8.1 % | 8.0 % | Tier 1 Leverage | 7.3 % | 7.4 % | 7.9 % | 8.1 % | 7.8 % | 8.0 % | |
| 7.6 % | 8.6 % | 8.2 % | 7.9 % | 8.6 % | 9.0 % | Supplementary Leverage (3) | 8.3 % | 8.3 % | 8.4 % | 8.6 % | 8.8 % | 9.0 % | |
| Per Share Information / Ratios: | |||||||||||||
| $ 2.60 | $ 2.80 | $ 2.80 | $ 2.90 | $ 3.00 | $ 1.50 | Cash Dividends Declared Per Common Share | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | |
| 39 % | 51 % | 39 % | 47 % | 59 % | 28 % | Dividend Payout Ratio | 50 % | 48 % | 50 % | 144 % | 78 % | 17 % | |
| $ 106.24 | $ 93.14 | $ 119.61 | $ 88.49 | $ 84.38 | $ - | Market Value Per Share (End of Period) | $ 88.13 | $ 74.14 | $ 69.48 | $ 84.38 | $ 88.92 | $ 83.98 | |
| 16.0 | 17.1 | 16.8 | 14.4 | 16.6 | - | Stock Price Multiple of Earnings | 15.0 | 13.3 | 13.2 | 16.6 | 19.6 | 11.5 | |
| (based on trailing 4 quarters of diluted EPS) | |||||||||||||
| $ 46.82 | $ 51.87 | $ 53.58 | $ 49.78 | $ 53.69 | $ - | Book Value Per Common Share (End of Period) | $ 51.37 | $ 51.94 | $ 52.95 | $ 53.69 | $ 54.83 | $ 58.38 | |
| (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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Income Statement - P. 2
| Northern Trust Corporation | ||||||||
| INCOME STATEMENT | ||||||||
| ($ in Millions except per share information) | ||||||||
| SIX MONTHS | CHANGE (2) | SECOND QUARTER | CHANGE (2) | |||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |
| $ 1,290.2 | $ 1,224.2 | $ 66.0 | 5 % | Asset Servicing Trust, Investment and Other Servicing Fees | $ 650.6 | $ 621.2 | $ 29.4 | 5 % |
| 1,018.8 | 935.7 | 83.1 | 9 % | WM Trust, Investment and Other Servicing Fees | 515.5 | 475.1 | 40.4 | 8 % |
| 2,309.0 | 2,159.9 | 149.1 | 7 % | Total Fees | 1,166.1 | 1,096.3 | 69.8 | 6 % |
| 115.4 | 103.1 | 12.3 | 12 % | Foreign Exchange Trading Income | 58.4 | 50.1 | 8.3 | 17 % |
| 18.3 | 16.3 | 2.0 | 12 % | Treasury Management Fees | 9.0 | 7.9 | 1.1 | 12 % |
| 72.2 | 70.8 | 1.4 | 2 % | Security Commissions and Trading Income | 34.3 | 36.1 | (1.8) | (5)% |
| 985.7 | 102.0 | 883.7 | N/M | Other Operating Income | 924.7 | 55.2 | 869.5 | N/M |
| (189.3) | 6.9 | (196.2) | N/M | Investment Security Gains (Losses), net | 0.1 | - | 0.1 | N/M |
| 3,311.3 | 2,459.0 | 852.3 | 35 % | Total Noninterest Income | 2,192.6 | 1,245.6 | 947.0 | 76 % |
| 4,966.3 | 3,216.7 | 1,749.6 | 54 % | Interest Income (FTE)(1) | 2,513.4 | 1,748.1 | 765.3 | 44 % |
| 3,901.1 | 2,147.7 | 1,753.4 | 82 % | Interest Expense | 1,983.6 | 1,223.5 | 760.1 | 62 % |
| 1,065.2 | 1,069.0 | (3.8) | - % | Net Interest Income (FTE)(1) | 529.8 | 524.6 | 5.2 | 1 % |
| 4,376.5 | 3,528.0 | 848.5 | 24 % | Total Revenue (FTE)(1) | 2,722.4 | 1,770.2 | 952.2 | 54 % |
| (0.5) | (0.5) | - | N/M | Provision for Credit Losses | 8.0 | (15.5) | 23.5 | N/M |
| 1,292.3 | 1,199.7 | 92.6 | 8 % | Compensation | 665.2 | 604.5 | 60.7 | 10 % |
| 201.3 | 202.4 | (1.1) | (1)% | Employee Benefits | 100.2 | 101.4 | (1.2) | (1)% |
| 490.2 | 441.7 | 48.5 | 11 % | Outside Services | 260.9 | 230.9 | 30.0 | 13 % |
| 530.2 | 461.0 | 69.2 | 15 % | Equipment and Software | 277.5 | 229.3 | 48.2 | 21 % |
| 108.9 | 115.1 | (6.2) | (5)% | Occupancy | 54.8 | 53.8 | 1.0 | 2 % |
| 275.7 | 197.6 | 78.1 | 40 % | Other Operating Expense | 175.3 | 112.0 | 63.3 | 57 % |
| 2,898.6 | 2,617.5 | 281.1 | 11 % | Total Noninterest Expense | 1,533.9 | 1,331.9 | 202.0 | 15 % |
| 1,478.4 | 911.0 | 567.4 | 62 % | Income before Income Taxes (FTE)(1) | 1,180.5 | 453.8 | 726.7 | 160 % |
| 353.4 | 218.3 | 135.1 | 62 % | Provision for Income Taxes | 277.5 | 108.9 | 168.6 | 155 % |
| 14.2 | 26.3 | (12.1) | (46)% | Taxable Equivalent Adjustment | 6.9 | 13.1 | (6.2) | (47)% |
| 367.6 | 244.6 | 123.0 | 50 % | Total Taxes (FTE)(1) | 284.4 | 122.0 | 162.4 | 133 % |
| $ 1,110.8 | $ 666.4 | $ 444.4 | 67 % | Net Income | $ 896.1 | $ 331.8 | $ 564.3 | 170 % |
| $ 20.9 | $ 20.9 | $ - | - % | Dividends on Preferred Stock | $ 4.7 | $ 4.7 | $ - | - % |
| 9.5 | 6.6 | 2.9 | 43 % | Earnings Allocated to Participating Securities | 7.1 | 3.4 | 3.7 | 108 % |
| 1,080.4 | 638.9 | 441.5 | 69 % | Earnings Allocated to Common and Potential Common Shares | 884.3 | 323.7 | 560.6 | 173 % |
| $ 5.30 | $ 3.07 | $ 2.23 | 72 % | Earnings Per Share - Basic | $ 4.35 | $ 1.56 | $ 2.79 | 179 % |
| $ 5.28 | $ 3.07 | $ 2.21 | 72 % | Earnings Per Share - Diluted | $ 4.34 | $ 1.56 | $ 2.78 | 179 % |
| 203,968 | 207,911 | (3,943) | (2)% | Average Basic Shares (000s) | 203,306 | 207,639 | (4,333) | (2)% |
| 204,437 | 208,271 | (3,834) | (2)% | Average Diluted Shares (000s) | 203,739 | 207,816 | (4,077) | (2)% |
| 201,638 | 207,004 | (5,366) | (3)% | End of Period Shares Outstanding (000s) | 201,638 | 207,004 | (5,366) | (3)% |
| 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 Supplemental Consolidated Financial Information. |
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Net Income Trends - P. 3
| Northern Trust Corporation | |||||||||||||
| NET INCOME TRENDS | |||||||||||||
| ($ in Millions except per share information) | |||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 2,211.5 | $ 2,321.6 | $ 2,487.3 | $ 2,496.3 | $ 2,461.9 | $ 1,290.2 | Asset Servicing Trust, Investment and Other Servicing Fees | $ 603.0 | $ 621.2 | $ 626.0 | $ 611.7 | $ 639.6 | $ 650.6 | |
| 1,640.6 | 1,673.4 | 1,873.8 | 1,936.3 | 1,899.9 | 1,018.8 | WM Trust, Investment and Other Servicing Fees | 460.6 | 475.1 | 485.9 | 478.3 | 503.3 | 515.5 | |
| 3,852.1 | 3,995.0 | 4,361.1 | 4,432.6 | 4,361.8 | 2,309.0 | Total Fees | 1,063.6 | 1,096.3 | 1,111.9 | 1,090.0 | 1,142.9 | 1,166.1 | |
| 250.9 | 290.4 | 292.6 | 288.6 | 203.9 | 115.4 | Foreign Exchange Trading Income | 53.0 | 50.1 | 51.8 | 49.0 | 57.0 | 58.4 | |
| 44.5 | 45.4 | 44.3 | 39.3 | 31.6 | 18.3 | Treasury Management Fees | 8.4 | 7.9 | 7.5 | 7.8 | 9.3 | 9.0 | |
| 103.6 | 133.2 | 140.2 | 136.2 | 135.0 | 72.2 | Security Commissions and Trading Income | 34.7 | 36.1 | 30.9 | 33.3 | 37.9 | 34.3 | |
| 145.5 | 194.0 | 243.9 | 191.3 | 228.7 | 985.7 | Other Operating Income | 46.8 | 55.2 | 68.2 | 58.5 | 61.0 | 924.7 | |
| (1.4) | (0.4) | (0.3) | (214.0) | (169.5) | (189.3) | Investment Security Gains (Losses), net | 6.9 | - | - | (176.4) | (189.4) | 0.1 | |
| 4,395.2 | 4,657.6 | 5,081.8 | 4,874.0 | 4,791.5 | 3,311.3 | Total Noninterest Income | 1,213.4 | 1,245.6 | 1,270.3 | 1,062.2 | 1,118.7 | 2,192.6 | |
| 1,710.7 | 1,477.6 | 1,418.3 | 1,932.8 | 2,039.5 | 1,065.2 | Net Interest Income (FTE)(1) | 544.4 | 524.6 | 469.4 | 501.1 | 535.4 | 529.8 | |
| 6,105.9 | 6,135.2 | 6,500.1 | 6,806.8 | 6,831.0 | 4,376.5 | Total Revenue (FTE)(1) | 1,757.8 | 1,770.2 | 1,739.7 | 1,563.3 | 1,654.1 | 2,722.4 | |
| (14.5) | 125.0 | (81.5) | 12.0 | 24.5 | (0.5) | Provision for (Release of) Credit Losses | 15.0 | (15.5) | 14.0 | 11.0 | (8.5) | 8.0 | |
| 1,859.0 | 1,947.1 | 2,011.0 | 2,248.0 | 2,321.8 | 1,292.3 | Compensation | 595.2 | 604.5 | 558.1 | 564.0 | 627.1 | 665.2 | |
| 355.2 | 387.7 | 431.4 | 437.4 | 405.2 | 201.3 | Employee Benefits | 101.0 | 101.4 | 100.8 | 102.0 | 101.1 | 100.2 | |
| 774.5 | 763.1 | 849.4 | 880.3 | 906.5 | 490.2 | Outside Services | 210.8 | 230.9 | 229.6 | 235.2 | 229.3 | 260.9 | |
| 612.1 | 673.5 | 736.3 | 838.8 | 945.5 | 530.2 | Equipment and Software | 231.7 | 229.3 | 232.5 | 252.0 | 252.7 | 277.5 | |
| 212.9 | 230.1 | 208.7 | 219.1 | 232.3 | 108.9 | Occupancy | 61.3 | 53.8 | 58.7 | 58.5 | 54.1 | 54.8 | |
| 329.8 | 346.7 | 299.1 | 359.3 | 472.9 | 275.7 | Other Operating Expense | 85.6 | 112.0 | 98.5 | 176.8 | 100.4 | 175.3 | |
| 4,143.5 | 4,348.2 | 4,535.9 | 4,982.9 | 5,284.2 | 2,898.6 | Total Noninterest Expense | 1,285.6 | 1,331.9 | 1,278.2 | 1,388.5 | 1,364.7 | 1,533.9 | |
| 1,976.9 | 1,662.0 | 2,045.7 | 1,811.9 | 1,522.3 | 1,478.4 | Income before Income Taxes (FTE)(1) | 457.2 | 453.8 | 447.5 | 163.8 | 297.9 | 1,180.5 | |
| 451.9 | 418.3 | 464.8 | 430.3 | 357.5 | 353.4 | Provision for Income Taxes | 109.4 | 108.9 | 106.5 | 32.7 | 75.9 | 277.5 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | Taxable Equivalent Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 484.7 | 452.7 | 500.4 | 475.9 | 415.0 | 367.6 | Total Taxes (FTE)(1) | 122.6 | 122.0 | 119.7 | 50.7 | 83.2 | 284.4 | |
| $ 1,492.2 | $ 1,209.3 | $ 1,545.3 | $ 1,336.0 | $ 1,107.3 | $ 1,110.8 | Net Income | $ 334.6 | $ 331.8 | $ 327.8 | $ 113.1 | $ 214.7 | $ 896.1 | |
| $ 6.66 | $ 5.48 | $ 7.16 | $ 6.16 | $ 5.09 | $ 5.30 | Earnings Per Share - Basic | $ 1.51 | $ 1.56 | $ 1.49 | $ 0.52 | $ 0.96 | $ 4.35 | |
| 6.63 | 5.46 | 7.14 | 6.14 | 5.08 | 5.28 | Earnings Per Share - Diluted | 1.51 | 1.56 | 1.49 | 0.52 | 0.96 | 4.34 | |
| 215,601 | 209,008 | 208,899 | 208,867 | 207,564 | 204,437 | Average Diluted Shares (000s) | 208,730 | 207,816 | 207,253 | 206,484 | 205,135 | 203,739 | |
| $ 46.4 | $ 56.2 | $ 41.8 | $ 41.8 | $ 41.8 | $ 20.9 | Preferred Dividends(2) | $ 16.2 | $ 4.7 | $ 16.2 | $ 4.7 | $ 16.2 | $ 4.7 | |
| (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 $11.5 million related to the difference between the redemption amount of the Corporation's Series C Non-Cumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value. |
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Fee Detail - P. 4
| Northern Trust Corporation | ||||||||||||||
| TRUST, INVESTMENT AND OTHER SERVICING FEES DETAIL | ||||||||||||||
| ($ in Millions) | ||||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | ||||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | Asset Servicing | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 1,549.3 | $ 1,586.1 | $ 1,818.8 | $ 1,700.1 | $ 1,689.5 | $ 882.6 | Custody & Fund Administration | $ 413.6 | $ 427.4 | $ 428.1 | $ 420.4 | $ 436.7 | $ 445.9 | ||
| 445.7 | 511.1 | 443.5 | 555.1 | 528.1 | 285.7 | Investment Management | 126.2 | 134.1 | 137.1 | 130.7 | 140.0 | 145.7 | ||
| 87.2 | 88.0 | 76.7 | 81.4 | 83.0 | 34.4 | Securities Lending | 19.1 | 21.5 | 20.4 | 22.0 | 17.9 | 16.5 | ||
| 129.3 | 136.4 | 148.3 | 159.7 | 161.3 | 87.5 | Other | 44.1 | 38.2 | 40.4 | 38.6 | 45.0 | 42.5 | ||
| $ 2,211.5 | $ 2,321.6 | $ 2,487.3 | $ 2,496.3 | $ 2,461.9 | $ 1,290.2 | Total Asset Servicing Trust, Investment and Other Servicing Fees | $ 603.0 | $ 621.2 | $ 626.0 | $ 611.7 | $ 639.6 | $ 650.6 | ||
| Wealth Management | ||||||||||||||
| $ 619.3 | $ 607.3 | $ 698.7 | $ 692.6 | $ 673.8 | $ 359.0 | Central | $ 163.6 | $ 166.0 | $ 172.3 | $ 171.9 | $ 178.3 | $ 180.7 | ||
| 422.2 | 442.1 | 509.3 | 504.0 | 491.5 | 262.6 | East | 119.8 | 124.1 | 126.1 | 121.5 | 129.9 | 132.7 | ||
| 330.9 | 337.7 | 380.2 | 382.1 | 378.0 | 203.2 | West | 91.2 | 93.7 | 95.8 | 97.3 | 99.9 | 103.3 | ||
| 268.2 | 286.3 | 285.6 | 357.6 | 356.6 | 194.0 | Global Family Office | 86.0 | 91.3 | 91.7 | 87.6 | 95.2 | 98.8 | ||
| $ 1,640.6 | $ 1,673.4 | $ 1,873.8 | $ 1,936.3 | $ 1,899.9 | $ 1,018.8 | Total WM Trust, Investment and Other Servicing Fees | $ 460.6 | $ 475.1 | $ 485.9 | $ 478.3 | $ 503.3 | $ 515.5 |
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Balance Sheet (EOP) - P. 5
| Northern Trust Corporation | ||||
| BALANCE SHEET | ||||
| END OF PERIOD | ||||
| ($ in Millions) | ||||
| CHANGE (5) | ||||
| Assets | 6/30/24 | 6/30/23 | $ | % |
| Federal Reserve and Other Central Bank Deposits | $ 43,206.1 | $ 42,675.1 | $ 531.0 | 1 % |
| Interest-Bearing Due from and Deposits with Banks(1) | 5,558.9 | 4,625.8 | 933.1 | 20 % |
| Federal Funds Sold | - | - | - | - % |
| Securities Purchased under Agreements to Resell | 859.6 | 1,228.9 | (369.3) | (30)% |
| Debt Securities: | ||||
| Available For Sale | 26,861.7 | 24,264.4 | 2,597.3 | 11 % |
| Held To Maturity | 22,798.6 | 26,006.3 | (3,207.7) | (12)% |
| Trading Account | - | 0.1 | (0.1) | (93)% |
| Total Debt Securities | 49,660.3 | 50,270.8 | (610.5) | (1)% |
| Loans | 42,135.2 | 43,546.7 | (1,411.5) | (3)% |
| Other Interest-Earning Assets(2) | 3,025.2 | 2,694.8 | 330.4 | 12 % |
| Total Earning Assets | 144,445.3 | 145,042.1 | (596.8) | - % |
| Allowance for Credit Losses | (179.5) | (170.2) | (9.3) | 5 % |
| Cash and Due From Banks and Other Central Bank Deposits(3) | 2,390.1 | 1,803.7 | 586.4 | 33 % |
| Buildings and Equipment | 481.0 | 473.6 | 7.4 | 2 % |
| Client Security Settlement Receivables | 193.4 | 431.3 | (237.9) | (55)% |
| Goodwill | 697.4 | 698.8 | (1.4) | - % |
| Other Assets | 8,769.4 | 8,473.2 | 296.2 | 3 % |
| Total Assets | $ 156,797.1 | $ 156,752.5 | $ 44.6 | - % |
| Liabilities and Stockholders' Equity | ||||
| Savings, Money Market and Other | $ 28,074.0 | $ 23,535.5 | $ 4,538.5 | 19 % |
| Savings Certificates and Other Time | 6,378.4 | 3,327.0 | 3,051.4 | 92 % |
| Non- U.S. Offices - Interest-Bearing | 67,612.3 | 65,014.7 | 2,597.6 | 4 % |
| Total Interest-Bearing Deposits | 102,064.7 | 91,877.2 | 10,187.5 | 11 % |
| Federal Funds Purchased | 2,406.4 | 9,344.5 | (6,938.1) | (74)% |
| Securities Sold under Agreements to Repurchase | 629.2 | 988.1 | (358.9) | (36)% |
| Other Borrowings(4) | 6,823.7 | 12,382.0 | (5,558.3) | (45)% |
| Senior Notes | 2,744.0 | 2,729.5 | 14.5 | 1 % |
| Long-Term Debt | 4,073.0 | 2,061.5 | 2,011.5 | 98 % |
| Floating Rate Capital Debt | - | - | - | #DIV/0! |
| Total Interest-Bearing Liabilities | 118,741.0 | 119,382.8 | (641.8) | (1)% |
| Demand and Other Noninterest-Bearing Deposits | 20,926.2 | 21,326.4 | (400.2) | (2)% |
| Other Liabilities | 4,474.1 | 4,407.6 | 66.5 | 2 % |
| Total Liabilities | 144,141.3 | 145,116.8 | (975.5) | (1)% |
| Common Equity | 11,770.9 | 10,750.8 | 1,020.1 | 9 % |
| Preferred Equity | 884.9 | 884.9 | - | - % |
| Total Stockholders' Equity | 12,655.8 | 11,635.7 | 1,020.1 | 9 % |
| Total Liabilities and Stockholders' Equity | $ 156,797.1 | $ 156,752.5 | $ 44.6 | - % |
| (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 Supplemental Consolidated Financial Information. |
Page &P
Balance Sheet Trends - P. 6
| Northern Trust Corporation | ||||||||||||||
| BALANCE SHEET TRENDS | ||||||||||||||
| PERIOD AVERAGES(1) | ||||||||||||||
| ($ in Millions) | ||||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | ||||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | Assets | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 18,511.0 | $ 27,904.2 | $ 39,028.2 | $ 36,248.8 | $ 31,205.4 | $ 31,205.4 | Federal Reserve and Other Central Bank Deposits | $ 36,641.8 | $ 34,380.4 | $ 28,000.8 | $ 25,951.3 | $ 35,897.3 | $ 35,924.1 | ||
| 5,996.7 | 5,400.8 | 5,779.7 | 4,192.5 | 4,333.9 | 4,333.9 | Interest-Bearing Due from and Deposits with Banks(2) | 4,198.7 | 4,573.4 | 4,301.4 | 4,261.6 | 4,418.0 | 4,999.7 | ||
| 12.8 | 2.3 | 0.1 | 5.5 | 6.1 | 6.1 | Federal Funds Sold | 19.7 | 2.9 | 1.2 | 1.0 | 0.5 | 0.3 | ||
| 835.0 | 1,253.1 | 1,067.4 | 1,071.2 | 950.9 | 950.9 | Securities Purchased under Agreements to Resell | 1,046.1 | 1,238.6 | 950.8 | 573.1 | 517.9 | 731.9 | ||
| Debt Securities: | ||||||||||||||
| 38,016.2 | 40,642.7 | 38,986.9 | 32,060.2 | 24,356.6 | 24,356.6 | Available For Sale | 25,030.4 | 24,511.8 | 24,430.7 | 23,469.9 | 24,049.6 | 26,591.4 | ||
| 11,650.0 | 14,353.3 | 20,617.0 | 22,970.0 | 25,511.9 | 25,511.9 | Held To Maturity | 25,382.2 | 25,053.3 | 25,919.2 | 25,685.2 | 24,498.9 | 23,373.8 | ||
| 1.2 | 1.1 | 0.6 | 12.1 | 0.5 | 0.5 | Trading Account | 1.3 | 0.2 | 0.4 | 0.2 | - | - | ||
| 49,667.4 | 54,997.1 | 59,604.5 | 55,042.3 | 49,869.0 | 49,869.0 | Total Debt Securities | 50,413.9 | 49,565.3 | 50,350.3 | 49,155.3 | 48,548.5 | 49,965.2 | ||
| 31,052.8 | 33,498.8 | 37,207.5 | 41,030.6 | 42,177.0 | 42,177.0 | Loans and Leases | 41,959.4 | 42,365.4 | 42,210.4 | 42,170.0 | 41,586.9 | 41,034.6 | ||
| 1,033.7 | 1,076.6 | 1,185.6 | 1,248.1 | 2,259.0 | 2,259.0 | Other Interest-Earning Assets(3) | 1,677.8 | 1,990.4 | 2,439.5 | 2,912.8 | 2,847.7 | 2,745.3 | ||
| 107,109.4 | 124,132.9 | 143,873.0 | 138,839.0 | 130,801.3 | 130,801.3 | Total Earning Assets | 135,957.4 | 134,116.4 | 128,254.4 | 125,025.1 | 133,816.8 | 135,401.1 | ||
| (111.4) | (178.0) | (173.0) | (154.1) | (172.8) | (172.8) | Allowance for Credit Losses | (161.5) | (176.6) | (170.4) | (182.5) | (191.8) | (175.8) | ||
| 2,393.6 | 2,603.0 | 2,285.9 | 2,069.5 | 1,771.6 | 1,771.6 | Cash and Due From Banks and Other Central Bank Deposits(4) | 1,795.9 | 1,842.5 | 1,694.6 | 1,754.6 | 1,799.5 | 1,802.0 | ||
| 425.6 | 509.3 | 502.7 | 488.7 | 484.8 | 484.8 | Buildings and Equipment | 497.3 | 481.8 | 474.1 | 486.4 | 498.2 | 485.8 | ||
| 1,070.4 | 1,357.5 | 1,530.1 | 1,722.3 | 558.8 | 558.8 | Client Security Settlement Receivables | 1,098.5 | 592.7 | 350.3 | 205.9 | 238.6 | 321.4 | ||
| 682.5 | 695.4 | 707.3 | 692.2 | 696.2 | 696.2 | Goodwill | 692.3 | 697.0 | 698.9 | 696.4 | 699.4 | 697.1 | ||
| 5,981.3 | 7,691.0 | 7,637.2 | 8,894.3 | 8,509.3 | 8,509.3 | Other Assets | 8,180.0 | 8,345.8 | 8,899.7 | 8,602.8 | 8,257.6 | 9,469.6 | ||
| $ 117,551.4 | $ 136,811.1 | $ 156,363.2 | $ 152,551.9 | $ 142,649.2 | $ 142,649.2 | Total Assets | $ 148,059.9 | $ 145,899.6 | $ 140,201.6 | $ 136,588.7 | $ 145,118.3 | $ 148,001.2 | ||
| Liabilities and Stockholders' Equity | ||||||||||||||
| $ 16,577.8 | $ 23,396.4 | $ 28,339.0 | $ 30,205.0 | $ 24,172.4 | $ 24,172.4 | Savings, Money Market and Other | $ 27,268.8 | $ 22,961.2 | $ 22,624.9 | $ 23,888.7 | $ 27,349.0 | $ 27,554.9 | ||
| 867.5 | 1,266.4 | 887.2 | 1,059.7 | 3,341.2 | 3,341.2 | Savings Certificates and Other Time | 2,360.1 | 3,036.1 | 3,665.2 | 4,279.0 | 4,554.3 | 6,027.4 | ||
| 54,885.2 | 60,486.3 | 69,713.4 | 65,031.3 | 60,008.6 | 60,008.6 | Non- U.S. Offices - Interest-Bearing | 62,411.1 | 62,046.3 | 58,680.5 | 56,970.9 | 63,752.8 | 63,216.3 | ||
| 72,330.5 | 85,149.1 | 98,939.6 | 96,296.0 | 87,522.2 | 87,522.2 | Total Interest-Bearing Deposits | 92,040.0 | 88,043.6 | 84,970.6 | 85,138.6 | 95,656.1 | 96,798.6 | ||
| 1,267.0 | 980.9 | 190.6 | 1,407.8 | 5,144.3 | 5,144.3 | Federal Funds Purchased | 3,653.9 | 7,070.0 | 5,935.9 | 3,906.0 | 2,650.1 | 3,010.7 | ||
| 339.0 | 218.3 | 232.0 | 433.6 | 401.5 | 401.5 | Securities Sold under Agreements to Repurchase | 347.1 | 467.8 | 426.0 | 364.5 | 490.1 | 574.6 | ||
| 7,753.0 | 6,401.1 | 5,049.8 | 5,463.5 | 10,339.5 | 10,339.5 | Other Borrowings(5) | 11,324.0 | 12,132.6 | 10,981.7 | 6,960.8 | 6,852.1 | 7,053.5 | ||
| 2,389.1 | 3,233.8 | 2,856.4 | 2,756.0 | 2,734.0 | 2,734.0 | Senior Notes | 2,748.1 | 2,761.1 | 2,713.2 | 2,714.2 | 2,748.7 | 2,728.7 | ||
| 1,139.0 | 1,189.2 | 1,166.1 | 1,258.9 | 2,586.0 | 2,586.0 | Long-Term Debt | 2,066.3 | 2,069.7 | 2,126.9 | 4,064.1 | 4,067.0 | 4,071.1 | ||
| 277.6 | 277.7 | 218.4 | - | - | - | Floating Rate Capital Debt | - | - | - | - | - | - | ||
| 85,495.1 | 97,450.1 | 108,652.9 | 107,615.8 | 108,727.5 | 108,727.5 | Total Interest-Bearing Liabilities | 112,179.4 | 112,544.8 | 107,154.3 | 103,148.2 | 112,464.1 | 114,237.2 | ||
| 17,455.5 | 23,362.0 | 31,143.5 | 29,296.4 | 17,723.3 | 17,723.3 | Demand and Other Noninterest-Bearing Deposits | 20,145.6 | 17,555.1 | 16,792.5 | 16,450.4 | 16,706.5 | 16,543.0 | ||
| 3,952.4 | 4,806.4 | 4,869.8 | 4,558.3 | 4,701.6 | 4,701.6 | Other Liabilities | 4,453.4 | 4,351.0 | 4,718.2 | 5,274.6 | 4,164.0 | 4,862.2 | ||
| 106,903.0 | 125,618.0 | 144,666.2 | 141,471.0 | 131,152.4 | 131,152.4 | Total Liabilities | 136,778.4 | 134,450.9 | 128,665.0 | 124,873.2 | 133,334.6 | 135,642.4 | ||
| 9,705.2 | 10,306.7 | 10,812.1 | 10,196.5 | 10,611.9 | 10,611.9 | Common Equity | 10,396.6 | 10,563.8 | 10,651.7 | 10,830.6 | 10,898.8 | 11,473.9 | ||
| 943.1 | 885.9 | 884.9 | 884.9 | 884.9 | 884.9 | Preferred Equity | 884.9 | 884.9 | 884.9 | 884.9 | 884.9 | 884.9 | ||
| 10,648.0 | 11,193.0 | 11,697.0 | 11,081.4 | 11,496.8 | 11,496.8 | Total Stockholders' Equity | 11,281.5 | 11,448.7 | 11,536.6 | 11,715.5 | 11,783.7 | 12,358.8 | ||
| $ 117,551.0 | $ 136,811.0 | $ 156,363.2 | $ 152,551.9 | $ 142,649.2 | $ 142,649.2 | Total Liabilities and Stockholders' Equity | $ 148,059.9 | $ 145,899.6 | $ 140,201.6 | $ 136,588.7 | $ 145,118.3 | $ 148,001.2 | ||
| (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. |
Page &P
Balance Sheet Mix Trends - P. 7
| Northern Trust Corporation | ||||||||||||||
| BALANCE SHEET MIX TRENDS | ||||||||||||||
| PERIOD AVERAGES(1) | ||||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | ||||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | Assets | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| 15.7 % | 20.4 % | 25.0 % | 23.8 % | 21.9 % | 21.9 % | Federal Reserve and Other Central Bank Deposits | 24.7 % | 23.6 % | 20.0 % | 19.0 % | 24.7 % | 24.3 % | ||
| 5.1 % | 3.9 % | 3.7 % | 2.7 % | 3.0 % | 3.0 % | Interest-Bearing Due from and Deposits with Banks(2) | 2.8 % | 3.1 % | 3.1 % | 3.1 % | 3.0 % | 3.4 % | ||
| - % | - % | - % | - % | - % | - % | Federal Funds Sold | - % | - % | - % | - % | - % | - % | ||
| 0.7 % | 0.9 % | 0.7 % | 0.7 % | 0.7 % | 0.7 % | Securities Purchased under Agreements to Resell | 0.7 % | 0.8 % | 0.7 % | 0.4 % | 0.4 % | 0.5 % | ||
| Debt Securities: | ||||||||||||||
| 32.3 % | 29.7 % | 24.9 % | 21.0 % | 17.1 % | 17.1 % | Available For Sale | 16.9 % | 16.8 % | 17.4 % | 17.2 % | 16.6 % | 18.0 % | ||
| 9.9 % | 10.5 % | 13.2 % | 15.1 % | 17.9 % | 17.9 % | Held To Maturity | 17.1 % | 17.2 % | 18.5 % | 18.8 % | 16.9 % | 15.8 % | ||
| - % | - % | - % | - % | - % | - % | Trading Account | - % | - % | - % | - % | - % | - % | ||
| 42.3 % | 40.2 % | 38.1 % | 36.1 % | 35.0 % | 35.0 % | Total Debt Securities | 34.0 % | 34.0 % | 35.9 % | 36.0 % | 33.5 % | 33.8 % | ||
| 26.4 % | 24.5 % | 23.8 % | 26.9 % | 29.6 % | 29.6 % | Loans and Leases | 28.3 % | 29.0 % | 30.1 % | 30.9 % | 28.7 % | 27.7 % | ||
| 0.9 % | 0.8 % | 0.8 % | 0.8 % | 1.6 % | 1.6 % | Other Interest-Earning Assets(3) | 1.1 % | 1.4 % | 1.7 % | 2.1 % | 2.0 % | 1.9 % | ||
| 91.1 % | 90.7 % | 92.0 % | 91.0 % | 91.7 % | 91.7 % | Total Earning Assets | 91.8 % | 91.9 % | 91.5 % | 91.5 % | 92.2 % | 91.5 % | ||
| (0.1)% | (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)% | ||
| 2.0 % | 1.9 % | 1.5 % | 1.4 % | 1.2 % | 1.2 % | Cash and Due From Banks and Other Central Bank Deposits(4) | 1.2 % | 1.3 % | 1.2 % | 1.3 % | 1.2 % | 1.2 % | ||
| 0.4 % | 0.4 % | 0.3 % | 0.3 % | 0.3 % | 0.3 % | Buildings and Equipment | 0.3 % | 0.3 % | 0.3 % | 0.4 % | 0.3 % | 0.3 % | ||
| 0.9 % | 1.0 % | 1.0 % | 1.1 % | 0.4 % | 0.4 % | Client Security Settlement Receivables | 0.7 % | 0.4 % | 0.2 % | 0.2 % | 0.2 % | 0.2 % | ||
| 0.6 % | 0.5 % | 0.5 % | 0.5 % | 0.5 % | 0.5 % | Goodwill | 0.5 % | 0.5 % | 0.5 % | 0.5 % | 0.5 % | 0.5 % | ||
| 5.1 % | 5.6 % | 4.9 % | 5.8 % | 6.0 % | 6.0 % | Other Assets | 5.5 % | 5.7 % | 6.3 % | 6.3 % | 5.7 % | 6.4 % | ||
| 100.0 % | 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 Stockholders' Equity | ||||||||||||||
| 14.1 % | 17.1 % | 18.1 % | 19.8 % | 16.9 % | 16.9 % | Savings, Money Market and Other | 18.4 % | 15.7 % | 16.1 % | 17.5 % | 18.8 % | 18.6 % | ||
| 0.7 % | 0.9 % | 0.6 % | 0.7 % | 2.3 % | 2.3 % | Savings Certificates and Other Time | 1.6 % | 2.1 % | 2.6 % | 3.1 % | 3.1 % | 4.1 % | ||
| 46.7 % | 44.2 % | 44.6 % | 42.6 % | 42.1 % | 42.1 % | Non- U.S. Offices - Interest-Bearing | 42.2 % | 42.5 % | 41.9 % | 41.7 % | 43.9 % | 42.7 % | ||
| 61.5 % | 62.2 % | 63.3 % | 63.1 % | 61.4 % | 61.4 % | Total Interest-Bearing Deposits | 62.2 % | 60.3 % | 60.6 % | 62.3 % | 65.9 % | 65.4 % | ||
| 1.1 % | 0.7 % | 0.1 % | 0.9 % | 3.6 % | 3.6 % | Federal Funds Purchased | 2.5 % | 4.8 % | 4.2 % | 2.9 % | 1.8 % | 2.0 % | ||
| 0.3 % | 0.2 % | 0.1 % | 0.3 % | 0.3 % | 0.3 % | Securities Sold under Agreements to Repurchase | 0.2 % | 0.3 % | 0.3 % | 0.3 % | 0.3 % | 0.4 % | ||
| 6.6 % | 4.7 % | 3.2 % | 3.6 % | 7.2 % | 7.2 % | Other Borrowings(5) | 7.6 % | 8.3 % | 7.8 % | 5.1 % | 4.7 % | 4.8 % | ||
| 2.0 % | 2.4 % | 1.8 % | 1.8 % | 1.9 % | 1.9 % | Senior Notes | 1.9 % | 1.9 % | 1.9 % | 2.0 % | 1.9 % | 1.8 % | ||
| 1.0 % | 0.9 % | 0.7 % | 0.8 % | 1.8 % | 1.8 % | Long-Term Debt | 1.4 % | 1.4 % | 1.5 % | 3.0 % | 2.8 % | 2.8 % | ||
| 0.2 % | 0.2 % | 0.1 % | - % | - % | - % | Floating Rate Capital Debt | - % | - % | - % | - % | - % | - % | ||
| 72.7 % | 71.2 % | 69.5 % | 70.5 % | 76.2 % | 76.2 % | Total Interest-Bearing Liabilities | 75.8 % | 77.1 % | 76.4 % | 75.5 % | 77.5 % | 77.2 % | ||
| 14.8 % | 17.1 % | 19.9 % | 19.2 % | 12.4 % | 12.4 % | Demand and Other Noninterest-Bearing Deposits | 13.6 % | 12.0 % | 12.0 % | 12.0 % | 11.5 % | 11.2 % | ||
| 3.4 % | 3.5 % | 3.1 % | 3.0 % | 3.3 % | 3.3 % | Other Liabilities | 3.0 % | 3.0 % | 3.4 % | 3.9 % | 2.9 % | 3.3 % | ||
| 90.9 % | 91.8 % | 92.5 % | 92.7 % | 91.9 % | 91.9 % | Total Liabilities | 92.4 % | 92.2 % | 91.8 % | 91.4 % | 91.9 % | 91.6 % | ||
| 8.3 % | 7.5 % | 6.9 % | 6.7 % | 7.4 % | 7.4 % | Common Equity | 7.0 % | 7.2 % | 7.6 % | 7.9 % | 7.5 % | 7.8 % | ||
| 0.8 % | 0.6 % | 0.6 % | 0.6 % | 0.6 % | 0.6 % | Preferred Equity | 0.6 % | 0.6 % | 0.6 % | 0.6 % | 0.6 % | 0.6 % | ||
| 9.1 % | 8.2 % | 7.5 % | 7.3 % | 8.1 % | 8.1 % | Total Stockholders' Equity | 7.6 % | 7.8 % | 8.2 % | 8.6 % | 8.1 % | 8.4 % | ||
| 100.0 % | 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) | 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. |
Page &P
Interest Rate Trends - P. 8
| 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). | ||||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | ||||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | Earnings Assets | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| 0.98 % | 0.10 % | 0.03 % | 1.30 % | 4.69 % | 4.69 % | Federal Reserve and Other Central Bank Deposits | 4.17 % | 4.65 % | 4.99 % | 5.11 % | 5.15 % | 5.12 % | ||
| 1.21 % | 0.41 % | 0.16 % | 1.11 % | 3.00 % | 3.00 % | Interest-Bearing Due from and Deposits with Banks(2) | 2.72 % | 2.82 % | 3.22 % | 3.25 % | 3.15 % | 2.53 % | ||
| 2.73 % | 1.37 % | 0.41 % | 3.22 % | 4.92 % | 4.92 % | Federal Funds Sold | 4.79 % | 5.25 % | 5.62 % | 5.63 % | 5.64 % | 5.64 % | ||
| 2.10 % | 0.31 % | 0.33 % | 9.68 % | 166.71 % | 166.71 % | Securities Purchased under Agreements to Resell(5) | 48.80 % | 92.09 % | 193.58 % | 492.23 % | 639.92 % | 474.48 % | ||
| Debt Securities: | ||||||||||||||
| 2.51 % | 1.77 % | 1.28 % | 1.91 % | 4.35 % | 4.35 % | Available for Sale | 3.80 % | 4.17 % | 4.51 % | 4.94 % | 5.41 % | 5.52 % | ||
| 0.94 % | 0.59 % | 0.80 % | 1.26 % | 1.87 % | 1.87 % | Held to Maturity | 1.64 % | 1.80 % | 1.93 % | 2.13 % | 2.02 % | 1.95 % | ||
| 3.29 % | 3.27 % | 1.59 % | 3.84 % | 13.50 % | 13.50 % | Trading Account | 7.63 % | 42.53 % | 21.15 % | 5.19 % | - % | - % | ||
| 2.14 % | 1.46 % | 1.11 % | 1.64 % | 3.08 % | 3.08 % | Total Debt Securities | 2.72 % | 2.97 % | 3.18 % | 3.46 % | 3.70 % | 3.85 % | ||
| 3.74 % | 2.32 % | 1.92 % | 3.28 % | 6.06 % | 6.06 % | Loans and Leases | 5.60 % | 6.06 % | 6.26 % | 6.32 % | 6.34 % | 6.38 % | ||
| 3.56 % | 3.63 % | 3.43 % | 4.03 % | 4.87 % | 4.87 % | Other Interest-Earning Assets(3) | 4.67 % | 5.04 % | 4.65 % | 5.05 % | 4.51 % | 4.68 % | ||
| 2.36 % | 1.35 % | 1.00 % | 2.11 % | 5.64 % | 5.64 % | Total Earning Assets | 4.38 % | 5.23 % | 6.03 % | 7.04 % | 7.37 % | 7.47 % | ||
| Interest-Bearing Funds | ||||||||||||||
| 0.97 % | 0.20 % | 0.05 % | 0.74 % | 2.85 % | 2.85 % | Savings, Money Market and Other | 2.35 % | 2.67 % | 3.05 % | 3.40 % | 3.72 % | 3.75 % | ||
| 1.86 % | 1.30 % | 0.55 % | 1.68 % | 4.54 % | 4.54 % | Savings Certificates and Other Time | 3.70 % | 4.23 % | 4.69 % | 5.10 % | 5.19 % | 5.23 % | ||
| 0.57 % | (0.03)% | (0.11)% | 0.56 % | 3.07 % | 3.07 % | Non- U.S. Offices - Interest-Bearing | 2.50 % | 2.90 % | 3.38 % | 3.56 % | 3.59 % | 3.58 % | ||
| 0.68 % | 0.06 % | (0.06)% | 0.63 % | 3.07 % | 3.07 % | Total Interest-Bearing Deposits | 2.49 % | 2.89 % | 3.35 % | 3.59 % | 3.71 % | 3.73 % | ||
| 2.05 % | 0.22 % | (0.19)% | 2.43 % | 4.99 % | 4.99 % | Federal Funds Purchased | 4.45 % | 4.97 % | 5.18 % | 5.25 % | 5.11 % | 5.16 % | ||
| 1.89 % | 0.47 % | 0.07 % | 20.94 % | 383.84 % | 383.84 % | Securities Sold under Agreements to Repurchase(5) | 135.62 % | 234.39 % | 422.85 % | 759.25 % | 667.86 % | 596.00 % | ||
| 2.34 % | 0.71 % | 0.28 % | 2.31 % | 5.25 % | 5.25 % | Other Borrowings(4) | 4.83 % | 5.17 % | 5.59 % | 5.49 % | 5.20 % | 5.43 % | ||
| 3.04 % | 2.24 % | 1.69 % | 3.36 % | 6.22 % | 6.22 % | Senior Notes | 5.79 % | 6.14 % | 6.44 % | 6.50 % | 6.45 % | 6.50 % | ||
| 3.36 % | 2.24 % | 1.81 % | 3.49 % | 5.69 % | 5.69 % | Long-Term Debt | 5.73 % | 5.89 % | 5.94 % | 5.45 % | 5.50 % | 5.50 % | ||
| 2.98 % | 1.52 % | 0.78 % | - % | - % | - % | Floating Rate Capital Debt | - % | - % | - % | - % | - % | - % | ||
| 0.96 % | 0.21 % | 0.02 % | 0.92 % | 4.91 % | 4.91 % | Total Interest-Bearing Liabilities | 3.34 % | 4.36 % | 5.48 % | 6.60 % | 6.86 % | 6.98 % | ||
| 1.40 % | 1.14 % | 0.98 % | 1.19 % | 0.73 % | 0.73 % | Net Interest Spread | 1.04 % | 0.87 % | 0.55 % | 0.44 % | 0.51 % | 0.49 % | ||
| 1.60 % | 1.19 % | 0.99 % | 1.39 % | 1.56 % | 1.56 % | Net Interest Margin | 1.62 % | 1.57 % | 1.45 % | 1.59 % | 1.61 % | 1.57 % | ||
| (1) | Fully taxable equivalent. FTE adjustments are based on a federal income tax rate of 21%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. | |||||||||||||
| (2) | Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets in our periodic filings with the SEC. | |||||||||||||
| (3) | Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets in our periodic filings with the SEC. | |||||||||||||
| (4) | Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago. | |||||||||||||
| (5) | Includes the impact of balance sheet netting under master netting arrangements of approximately $62.9 billion for the three months ended June 30, 2024. Excluding the impact of netting, the average interest rate on Securities Purchased under Agreements to Resell would be approximately 5.46% for the three months ended June 30, 2024. Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 5.39% for the three months ended June 30, 2024. See previous filings for impact of netting on prior periods. |
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Asset Quality - P. 9
| Northern Trust Corporation | |||||||||||||
| ASSET QUALITY | |||||||||||||
| END OF PERIOD | |||||||||||||
| ($ in Millions) | |||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 138.2 | $ 124.4 | $ 259.9 | $ 184.7 | $ 200.9 | $ 184.7 | Beginning Allowance for Credit Losses | $ 200.9 | $ 213.0 | $ 197.5 | $ 211.8 | $ 220.4 | $ 201.5 | |
| - | 13.7 | - | - | - | - | Cumulative Effect Adjustment(1) | - | - | - | - | - | - | |
| (14.5) | 125.0 | (81.5) | 12.0 | 24.5 | 16.0 | Provision for (Release of) Credit Losses | 15.0 | (15.5) | 14.0 | 11.0 | (8.5) | 8.0 | |
| (Charge-offs) Recoveries | |||||||||||||
| (6.5) | (9.7) | (0.7) | (6.0) | (8.7) | (0.6) | Charge-offs | (4.0) | (0.8) | (0.8) | (3.1) | (11.1) | (0.3) | |
| 7.2 | 6.5 | 7.0 | 10.2 | 3.7 | 0.8 | Recoveries | 1.1 | 0.8 | 1.1 | 0.7 | 0.7 | 0.4 | |
| 0.7 | (3.2) | 6.3 | 4.2 | (5.0) | 0.2 | Net (Charge-offs) Recoveries | (2.9) | - | 0.3 | (2.4) | (10.4) | 0.1 | |
| - | - | - | - | - | Effect of Foreign Exchange Rates | ERROR:#VALUE! | - | - | - | ||||
| $ 124.4 | $ 259.9 | $ 184.7 | $ 200.9 | $ 220.4 | $ 200.9 | Ending Allowance for Credit Losses | $ 213.0 | $ 197.5 | $ 211.8 | $ 220.4 | $ 201.5 | $ 209.6 | |
| Allowance for Credit Losses Assigned to: | |||||||||||||
| $ 104.5 | $ 190.7 | $ 138.4 | $ 144.3 | $ 178.7 | $ - | Loans and Leases | $ 159.9 | $ 152.5 | $ 166.8 | $ 178.7 | $ 162.4 | $ 167.7 | |
| 19.9 | 61.1 | 34.1 | 38.5 | 26.9 | - | Undrawn Loan Commitments and Standby Letters of Credit | 34.3 | 26.0 | 28.3 | 26.9 | 25.2 | 29.5 | |
| - | 8.1 | 12.2 | 18.1 | 14.8 | - | Debt Securities and Other Financial Assets | 18.8 | 19.0 | 16.7 | 14.8 | 13.9 | 12.4 | |
| $ 124.4 | $ 259.9 | $ 184.7 | $ 200.9 | $ 220.4 | $ - | Total Allowance for Credit Losses | $ 213.0 | $ 197.5 | $ 211.8 | $ 220.4 | $ 201.5 | $ 209.6 | |
| $ 31,053 | $ 33,499 | $ 37,208 | $ 41,031 | $ 42,177 | $ 42,177 | Average Loans and Leases Outstanding | $ 41,959 | $ 42,365 | $ 42,210 | $ 42,170 | $ 41,587 | $ 41,035 | |
| - % | (0.01)% | 0.02 % | 0.01 % | (0.01)% | - % | Annualized Loan-Related Net (Charge-offs) Recoveries to | (0.03)% | - % | - % | (0.02)% | (0.10)% | - % | |
| Average Loans and Leases | |||||||||||||
| $ 31,410 | $ 33,760 | $ 40,481 | $ 42,893 | $ 47,617 | $ - | End of Period Loans and Leases Outstanding | $ 42,370 | $ 43,547 | $ 43,577 | $ 47,617 | $ 47,343 | $ 42,135 | |
| 0.33 % | 0.56 % | 0.34 % | 0.34 % | 0.38 % | - % | Allowance for Credit Losses Assigned to Loans | 0.38 % | 0.35 % | 0.38 % | 0.38 % | 0.34 % | 0.40 % | |
| and Leases to Total Loans and Leases | |||||||||||||
| Nonaccrual Assets | |||||||||||||
| $ 83.6 | $ 131.7 | $ 122.3 | $ 45.9 | $ 63.6 | $ - | Nonaccrual Loans and Leases | $ 48.9 | $ 47.1 | $ 68.8 | $ 63.6 | $ 37.0 | $ 38.5 | |
| 3.2 | 0.7 | 3.0 | - | 1.5 | - | Other Real Estate Owned (OREO) | - | 0.3 | 0.3 | 1.5 | - | - | |
| $ 86.8 | $ 132.4 | $ 125.3 | $ 45.9 | $ 65.1 | $ - | Total Nonaccrual Assets | $ 48.9 | $ 47.4 | $ 69.1 | $ 65.1 | $ 37.0 | $ 38.5 | |
| 0.28 % | 0.39 % | 0.31 % | 0.11 % | 0.14 % | - % | Nonaccrual Assets to Loans and Leases and OREO | 0.12 % | 0.11 % | 0.16 % | 0.14 % | 0.08 % | 0.09 % | |
| Loans and Leases Allowance to Nonaccrual | |||||||||||||
| 1.3x | 1.4x | 1.1x | 3.1x | 2.8x | 1.1x | Loans and Leases | 3.3x | 3.2x | 2.4x | 2.8x | 4.4x | 4.4x | |
| (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 $10.1 million, net of tax. |
Page &P
Trust Assets - P. 10
| Northern Trust Corporation | ||||||||||||||
| ASSETS UNDER MANAGEMENT AND CUSTODY | ||||||||||||||
| END OF PERIOD | ||||||||||||||
| ($ in Billions) | ||||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | ||||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | Assets Under Management | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 917.5 | $ 1,057.5 | $ 1,191.0 | $ 898.1 | $ 1,032.0 | $ 1,107.7 | Asset Servicing | $ 962.1 | $ 989.8 | $ 963.4 | $ 1,032.0 | $ 1,080.1 | $ 1,107.7 | ||
| Asset allocation: | ||||||||||||||
| 483.8 | 551.7 | 626.6 | 485.0 | 563.9 | 613.7 | Equities | 515.1 | 535.4 | 508.7 | 563.9 | 602.5 | 613.7 | ||
| 114.6 | 120.1 | 132.6 | 107.1 | 116.2 | 125.8 | Fixed Income Securities | 107.3 | 108.8 | 109.7 | 116.2 | 116.3 | 125.8 | ||
| 156.1 | 198.8 | 236.2 | 157.7 | 184.5 | 207.6 | Cash and Other Assets | 171.8 | 176.8 | 183.0 | 184.5 | 198.2 | 207.6 | ||
| 163.0 | 186.9 | 195.6 | 148.3 | 167.4 | 160.6 | Securities Lending Collateral | 167.9 | 168.8 | 162.0 | 167.4 | 163.1 | 160.6 | ||
| $ 313.8 | $ 347.8 | $ 416.1 | $ 351.4 | $ 402.5 | $ 419.4 | Wealth Management | $ 368.3 | $ 376.0 | $ 369.9 | $ 402.5 | $ 420.6 | $ 419.4 | ||
| Asset allocation: | ||||||||||||||
| 167.0 | 182.0 | 229.9 | 186.3 | 221.6 | 243.2 | Equities | 197.0 | 205.1 | 197.8 | 221.6 | 238.6 | 243.2 | ||
| 79.2 | 84.7 | 83.5 | 79.4 | 87.2 | 85.8 | Fixed Income Securities | 80.3 | 79.9 | 80.5 | 87.2 | 87.2 | 85.8 | ||
| 67.5 | 81.1 | 102.7 | 85.7 | 93.7 | 90.3 | Cash and Other Assets | 91.0 | 91.0 | 91.6 | 93.7 | 94.7 | 90.3 | ||
| 0.1 | - | - | - | - | 0.1 | Securities Lending Collateral | - | - | - | - | 0.1 | 0.1 | ||
| $ 1,231.3 | $ 1,405.3 | $ 1,607.1 | $ 1,249.5 | $ 1,434.5 | $ 1,527.1 | Total Assets Under Management | $ 1,330.4 | $ 1,365.8 | $ 1,333.3 | $ 1,434.5 | $ 1,500.7 | $ 1,527.1 | ||
| Asset allocation: | ||||||||||||||
| $ 650.8 | $ 733.7 | $ 856.5 | $ 671.3 | $ 785.5 | $ 856.9 | Equities | $ 712.1 | $ 740.5 | $ 706.5 | $ 785.5 | $ 841.1 | $ 856.9 | ||
| 193.8 | 204.8 | 216.1 | 186.5 | 203.4 | 211.6 | Fixed Income Securities | 187.6 | 188.7 | 190.2 | 203.4 | 203.5 | 211.6 | ||
| 223.6 | 279.9 | 338.9 | 243.4 | 278.2 | 297.9 | Cash and Other Assets | 262.8 | 267.8 | 274.6 | 278.2 | 292.9 | 297.9 | ||
| 163.1 | 186.9 | 195.6 | 148.3 | 167.4 | 160.7 | Securities Lending Collateral | 167.9 | 168.8 | 162.0 | 167.4 | 163.2 | 160.7 | ||
| Assets Under Custody / Administration | ||||||||||||||
| $ 11,311.6 | $ 13,653.1 | $ 15,183.2 | $ 12,705.5 | $ 14,362.6 | $ 15,470.8 | Asset Servicing | $ 13,221.5 | $ 13,483.5 | $ 13,206.2 | $ 14,362.6 | $ 15,385.4 | $ 15,470.8 | ||
| 738.8 | 879.4 | 1,065.6 | 898.5 | 1,042.3 | 1,096.6 | Wealth Management | 953.3 | 995.4 | 958.5 | 1,042.3 | 1,087.1 | 1,096.6 | ||
| $ 12,050.4 | $ 14,532.5 | $ 16,248.8 | $ 13,604.0 | $ 15,404.9 | $ 16,567.4 | Total Assets Under Custody / Administration | $ 14,174.8 | $ 14,478.9 | $ 14,164.7 | $ 15,404.9 | $ 16,472.5 | $ 16,567.4 | ||
| Assets Under Custody | ||||||||||||||
| $ 8,497.8 | $ 10,387.7 | $ 11,554.8 | $ 9,712.3 | $ 10,882.0 | $ 11,955.5 | Asset Servicing | $ 10,065.6 | $ 10,295.7 | $ 10,064.4 | $ 10,882.0 | $ 11,723.1 | $ 11,955.5 | ||
| Asset allocation: | ||||||||||||||
| 3,866.6 | 4,751.0 | 5,404.3 | 4,312.8 | 5,028.9 | 5,711.7 | Equities | 4,546.1 | 4,739.3 | 4,590.7 | 5,028.9 | 5,511.4 | 5,711.7 | ||
| 3,102.3 | 3,742.6 | 3,997.5 | 3,252.1 | 3,600.4 | 3,662.0 | Fixed Income Securities | 3,366.8 | 3,394.2 | 3,316.7 | 3,600.4 | 3,665.8 | 3,662.0 | ||
| 1,365.9 | 1,707.2 | 1,957.4 | 1,999.1 | 2,085.3 | 2,421.2 | Cash and Other Assets | 1,984.8 | 1,993.4 | 1,995.0 | 2,085.3 | 2,382.8 | 2,421.2 | ||
| 163.0 | 186.9 | 195.6 | 148.3 | 167.4 | 160.6 | Securities Lending Collateral | 167.9 | 168.8 | 162.0 | 167.4 | 163.1 | 160.6 | ||
| $ 735.7 | $ 875.1 | $ 1,057.5 | $ 892.3 | $ 1,034.5 | $ 1,085.9 | Wealth Management | $ 947.6 | $ 989.1 | $ 951.0 | $ 1,034.5 | $ 1,081.0 | $ 1,085.9 | ||
| Asset allocation: | ||||||||||||||
| 432.0 | 542.9 | 644.8 | 497.9 | 623.6 | 669.3 | Equities | 545.0 | 589.4 | 550.7 | 623.6 | 661.1 | 669.3 | ||
| 134.3 | 128.3 | 142.1 | 134.0 | 136.7 | 139.2 | Fixed Income Securities | 134.6 | 130.5 | 128.3 | 136.7 | 138.4 | 139.2 | ||
| 169.3 | 203.9 | 270.6 | 260.4 | 274.2 | 277.3 | Cash and Other Assets | 268.0 | 269.2 | 272.0 | 274.2 | 281.4 | 277.3 | ||
| 0.1 | - | - | - | - | 0.1 | Securities Lending Collateral | - | - | - | - | 0.1 | 0.1 | ||
| $ 9,233.5 | $ 11,262.8 | $ 12,612.3 | $ 10,604.6 | $ 11,916.5 | $ 13,041.4 | Total Assets Under Custody | $ 11,013.2 | $ 11,284.8 | $ 11,015.4 | $ 11,916.5 | $ 12,804.1 | $ 13,041.4 | ||
| Asset allocation: | ||||||||||||||
| $ 4,298.6 | $ 5,293.9 | $ 6,049.1 | $ 4,810.7 | $ 5,652.5 | $ 6,381.0 | Equities | $ 5,091.1 | $ 5,328.7 | $ 5,141.4 | $ 5,652.5 | $ 6,172.5 | $ 6,381.0 | ||
| 3,236.6 | 3,870.9 | 4,139.6 | 3,386.1 | 3,737.1 | 3,801.2 | Fixed Income Securities | 3,501.4 | 3,524.7 | 3,445.0 | 3,737.1 | 3,804.2 | 3,801.2 | ||
| 1,535.2 | 1,911.1 | 2,228.0 | 2,259.5 | 2,359.5 | 2,698.5 | Cash and Other Assets | 2,252.8 | 2,262.6 | 2,267.0 | 2,359.5 | 2,664.2 | 2,698.5 | ||
| 163.1 | 186.9 | 195.6 | 148.3 | 167.4 | 160.7 | Securities Lending Collateral | 167.9 | 168.8 | 162.0 | 167.4 | 163.2 | 160.7 | ||
| Memo | ||||||||||||||
| $ 94.2 | $ 114.0 | $ 144.9 | $ 119.9 | $ 144.3 | 152.7 | WM Global Family Office AUM | $ 126.2 | $ 128.5 | $ 128.9 | $ 144.3 | $ 152.4 | $ 152.7 | ||
| 474.1 | 600.7 | 742.6 | 614.9 | 728.0 | 768.1 | WM Global Family Office AUC | 660.0 | 694.0 | 663.5 | 728.0 | 762.1 | 768.1 |
Page &P
Reconciliation to FTE - P. 11
| 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. | |||||||||||||||
| Keep links for Q1 rollforward | SIX MONTHS | SIX MONTHS | 2023 | 2024 | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | 2023 | 2024 | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| $ 2,499.9 | $ 1,643.5 | $ 1,406.5 | $ 2,877.7 | $ 7,325.0 | $ 4,952.1 | $ 1,290.9 | $ 4,952.1 | Interest Income - GAAP | $ 1,455.4 | $ 1,735.0 | $ 1,935.0 | $ 2,199.6 | $ 2,445.6 | $ 2,506.5 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | 23.7 | 14.2 | Add: FTE Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 2,532.7 | 1,677.9 | 1,442.1 | 2,923.3 | 7,382.5 | 4,966.3 | 1,314.6 | 4,966.3 | Interest Income (FTE) - Non-GAAP | 1,468.6 | 1,748.1 | 1,948.2 | 2,217.6 | 2,452.9 | 2,513.4 | |
| 1,677.9 | 1,443.2 | 1,382.7 | 1,887.2 | 1,982.0 | 1,051.0 | 1,108.8 | 1,051.0 | Net Interest Income - GAAP | 531.2 | 511.5 | 456.2 | 483.1 | 528.1 | 522.9 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | 23.7 | 14.2 | Add: FTE Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 1,710.7 | 1,477.6 | 1,418.3 | 1,932.8 | 2,039.5 | 1,065.2 | 1,132.5 | 1,065.2 | Net Interest Income (FTE) - Non-GAAP | 544.4 | 524.6 | 469.4 | 501.1 | 535.4 | 529.8 | |
| 6,073.1 | 6,100.8 | 6,464.5 | 6,761.2 | 6,773.5 | 4,362.3 | 4,578.9 | 4,362.3 | Total Revenue - GAAP | 1,744.6 | 1,757.1 | 1,726.5 | 1,545.3 | 1,646.8 | 2,715.5 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | 23.7 | 14.2 | Add: FTE Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 6,105.9 | 6,135.2 | 6,500.1 | 6,806.8 | 6,831.0 | 4,376.5 | 4,602.6 | 4,376.5 | Total Revenue (FTE) - Non-GAAP | 1,757.8 | 1,770.2 | 1,739.7 | 1,563.3 | 1,654.1 | 2,722.4 | |
| 1,944.1 | 1,627.6 | 2,010.1 | 1,766.3 | 1,464.8 | 1,464.2 | 1,254.2 | 1,464.2 | Income before Income Taxes - GAAP | 444.0 | 440.7 | 434.3 | 145.8 | 290.6 | 1,173.6 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | 23.7 | 14.2 | Add: FTE Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 1,976.9 | 1,662.0 | 2,045.7 | 1,811.9 | 1,522.3 | 1,478.4 | 1,277.9 | 1,478.4 | Income before Income Taxes (FTE) - Non-GAAP | 457.2 | 453.8 | 447.5 | 163.8 | 297.9 | 1,180.5 | |
| 451.9 | 418.3 | 464.8 | 430.3 | 357.5 | 353.4 | 285.8 | 353.4 | Provision for Income Taxes - GAAP | 109.4 | 108.9 | 106.5 | 32.7 | 75.9 | 277.5 | |
| 32.8 | 34.4 | 35.6 | 45.6 | 57.5 | 14.2 | 23.7 | 14.2 | Add: FTE Adjustment | 13.2 | 13.1 | 13.2 | 18.0 | 7.3 | 6.9 | |
| 484.7 | 452.7 | 500.4 | 475.9 | 415.0 | 367.6 | 309.5 | 367.6 | Provision for Income Taxes (FTE) - Non-GAAP | 122.6 | 122.0 | 119.7 | 50.7 | 83.2 | 284.4 |
Page &P
Reconciliation to FTE (Ratios)
| 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. | |||||||||||||
| Keep links for Q1 rollforward | 2023 | 2024 | |||||||||||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2023 | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr |
| 32.0 % | 26.7 % | 31.1 % | 26.1 % | 21.6 % | 33.6 % | Profit Margin (pre-tax) - GAAP (1) | 25.4 % | 25.1 % | 25.2 % | 9.4 % | 17.6 % | 43.2 % | |
| 32.4 % | 27.1 % | 31.5 % | 26.6 % | 22.3 % | 33.8 % | Profit Margin (pre-tax) (FTE) - Non-GAAP (1) | 26.0 % | 25.6 % | 25.7 % | 10.5 % | 18.0 % | 43.4 % | |
| 24.6 % | 19.8 % | 23.9 % | 19.8 % | 16.3 % | 25.5 % | Profit Margin (after-tax) - GAAP (2) | 19.2 % | 18.9 % | 19.0 % | 7.3 % | 13.0 % | 33.0 % | |
| 24.4 % | 19.7 % | 23.8 % | 19.6 % | 16.2 % | 25.4 % | Profit Margin (after-tax) (FTE) - Non-GAAP (2) | 19.0 % | 18.7 % | 18.8 % | 7.2 % | 13.0 % | 32.9 % | |
| 23.2 % | 25.7 % | 23.1 % | 24.4 % | 24.4 % | 24.1 % | Effective Tax Rate - GAAP (3) | 24.6 % | 24.7 % | 24.5 % | 22.4 % | 26.1 % | 23.6 % | |
| 24.5 % | 27.2 % | 24.5 % | 26.3 % | 27.3 % | 24.9 % | Effective Tax Rate (FTE) - Non-GAAP (3) | 26.8 % | 26.9 % | 26.8 % | 30.9 % | 27.9 % | 24.1 % | |
| 72.4 % | 76.3 % | 78.6 % | 72.1 % | 70.7 % | 75.9 % | Noninterest Income to Total Revenue - GAAP (4) | 69.5 % | 70.9 % | 73.6 % | 68.7 % | 67.9 % | 80.7 % | |
| 72.0 % | 75.9 % | 78.2 % | 71.6 % | 70.1 % | 75.7 % | Noninterest Income to Total Revenue (FTE) - Non-GAAP (4) | 69.0 % | 70.4 % | 73.0 % | 67.9 % | 67.6 % | 80.5 % | |
| 63.4 % | 65.5 % | 67.5 % | 65.6 % | 64.4 % | 52.9 % | Trust Fees to Total Revenue - GAAP (5) | 61.0 % | 62.4 % | 64.4 % | 70.5 % | 69.4 % | 42.9 % | |
| 63.1 % | 65.1 % | 67.1 % | 65.1 % | 63.9 % | 52.8 % | Trust Fees to Total Revenue (FTE) - Non-GAAP (5) | 60.5 % | 61.9 % | 63.9 % | 69.7 % | 69.1 % | 42.8 % | |
| 1.37 % | 1.11 % | 0.96 % | 1.15 % | 0.69 % | (3.24)% | Net Interest Spread - GAAP (6) | 1.00 % | 0.83 % | 0.51 % | 0.38 % | 0.49 % | 0.47 % | |
| 1.40 % | 1.14 % | 0.98 % | 1.19 % | 0.73 % | 0.73 % | Net Interest Spread (FTE) - Non-GAAP (6) | 1.04 % | 0.87 % | 0.55 % | 0.44 % | 0.51 % | 0.49 % | |
| 1.57 % | 1.16 % | 0.96 % | 1.36 % | 1.52 % | 1.57 % | Net Interest Margin - GAAP (7) | 1.58 % | 1.53 % | 1.41 % | 1.53 % | 1.59 % | 1.55 % | |
| 1.60 % | 1.19 % | 0.99 % | 1.39 % | 1.56 % | 1.59 % | Net Interest Margin (FTE) - Non-GAAP (7) | 1.62 % | 1.57 % | 1.45 % | 1.59 % | 1.61 % | 1.57 % | |
| (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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