☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-2723087 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
50 South La Salle Street | ||||||||
Chicago, | Illinois | 60603 | ||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
Common Stock, $1.66 2/3 Par Value | NTRS | The NASDAQ Stock Market LLC | ||||||
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock | NTRSO | The NASDAQ Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Emerging growth company | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Page | ||||||||
Item 1 | ||||||||
Item 1A | ||||||||
Item 1B | ||||||||
Item 2 | ||||||||
Item 3 | ||||||||
Item 4 | ||||||||
Supplemental Item | ||||||||
Item 5 | ||||||||
Item 6 | ||||||||
Item 7 | ||||||||
Item 7A | ||||||||
Item 8 | ||||||||
Item 9 | ||||||||
Item 9A | ||||||||
Item 9B | ||||||||
Item 9C | ||||||||
Item 10 | ||||||||
Item 11 | ||||||||
Item 12 | ||||||||
Item 13 | ||||||||
Item 14 | ||||||||
Item 15 | ||||||||
Item 16 | ||||||||
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION i |
AFS | Available for Sale | ||||
AIFMD | Alternative Investment Fund Managers Directive | ||||
ALCO | Asset and Liability Management Committee | ||||
AMA | Basel Advanced Measurement Approach | ||||
AML | Anti-Money Laundering | ||||
AOCI | Accumulated Other Comprehensive Income | ||||
ARRC | Alternative Reference Rate Committee | ||||
AS | Asset Servicing | ||||
ASC | Accounting Standards Codification | ||||
ASU | Accounting Standards Update | ||||
AUC/A | Assets Under Custody/Administration | ||||
Bank | The Northern Trust Company | ||||
Banking book | Northern Trust’s structural assets, liabilities, net investments, and off-balance sheet instruments subject to interest rate risk and/or foreign currency risk. It is distinct from the trading book. | ||||
Basel Committee | International Basel Committee on Banking Supervision | ||||
Basel III | Industry-standard guidelines published by the Basel Committee | ||||
BMR | European Union Benchmarks Regulation | ||||
BRRD | Bank Recovery and Resolution Directive (EU) | ||||
CCAR | Comprehensive Capital Analysis and Review | ||||
CCPA | California Consumer Privacy Act | ||||
CDFIs | Community Development Financial Institutions | ||||
CEOC | Compliance & Ethics Oversight Committee | ||||
CFA | Criminal Finances Act (UK) | ||||
CFPB | Consumer Financial Protection Bureau | ||||
CFTC | U.S. Commodity Futures Trading Commission | ||||
Commission | European Commission | ||||
Corporation | Northern Trust Corporation | ||||
CPRA | California Privacy Rights Act of 2020 | ||||
CRA | Community Reinvestment Act | ||||
CRC | Credit Risk Committee | ||||
CRD | Capital Requirements Directive of June 26, 2013 (EU) | ||||
CRD V | European Commission revisions to the CRD, effective December 29, 2020 | ||||
CRO | Chief Risk Officer | ||||
CRR | Capital Requirements Regulation of June 26, 2013 (EU) | ||||
CRR II | European Commission revisions to the CRR, effective June 28, 2021 | ||||
CSD | Central Securities Depositories | ||||
CSDR | Central Securities Depositories Regulation (EU) | ||||
CSSF | Commission de Surveillance du Secteur Financier (Luxembourg) | ||||
DE&I | Diversity, Equity, and Inclusion | ||||
DFAST | Dodd-Frank Act Stress Tests | ||||
DGS | Deposit Guarantee Schemes | ||||
DGSD | Deposit Guarantee Schemes Directive | ||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||
EBA | European Banking Authority | ||||
ECB | European Central Bank | ||||
EEA | European Economic Area |
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EMIR | European Market Infrastructure Regulation 648/2012 | ||||
EOP | End of Period | ||||
ESG | Environmental, Social and Governance | ||||
EU | European Union | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FCA | Financial Conduct Authority | ||||
FDIA | Federal Deposit Insurance Act | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
Federal Reserve Board | The Board of Governors of the Federal Reserve System | ||||
FICC | Fixed Income Clearing Corporation | ||||
FinCEN | Financial Crimes Enforcement Network | ||||
FINRA | Financial Industry Regulatory Authority | ||||
FRC | Fiduciary Risk Committee | ||||
FTE | Fully Taxable Equivalent | ||||
FTP | Funds Transfer Pricing | ||||
FX | Foreign Exchange | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GDPR | General Data Protection Regulation | ||||
GERC | Global Enterprise Risk Committee | ||||
GFX | Global Foreign Exchange | ||||
GILTI | Global Intangible Low-Taxed Income | ||||
GSIB | Global Systemically Important Banks | ||||
HTM | Held to Maturity | ||||
HQLAs | High-Quality Liquid Assets | ||||
IBA | ICE Benchmark Administration | ||||
IBOR | Interbank Offered Rates | ||||
IR | Interest Rate | ||||
ITRC | Information Technology Risk Committee | ||||
LCR | Liquidity Coverage Ratio | ||||
LCR Final Rule | Regulation promulgated by U.S. federal banking regulators to implement LCR requirements in the United States for certain banking organizations. | ||||
LGD | Loss Given Default | ||||
LIBOR | London Interbank Offered Rate | ||||
LIBOR Act | Adjustable Interest Rate (LIBOR) Act | ||||
MD&A | Management’s Discussion and Analysis | ||||
MIFID | Market in Financial Instruments Directive | ||||
MIFIR | Markets in Financial Instruments Regulation | ||||
MLD5 | Fifth EU Money Laundering Directive | ||||
MLRC | Market & Liquidity Risk Committee | ||||
MREL | Minimum requirements for own funds and eligible liabilities (EU) | ||||
MROC | Model Risk Oversight Committee | ||||
MSDC | Macroeconomic Scenario Development Committee | ||||
MVE | Market Value of Equity | ||||
NAICS | North American Industry Classification System | ||||
NAV | Net Asset Value | ||||
NFA | National Futures Association | ||||
NFTS | Northern Trust Fiduciary Services (Guernsey) Limited |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION iii |
NII | Net Interest Income | ||||
N/M | Not Meaningful | ||||
NSFR | Net Stable Funding Ratio requirement in the United States | ||||
NSFR Final Rule | Regulation promulgated by U.S. federal banking regulators to implement NSFR requirements in the United States for certain banking organizations. | ||||
ORC | Operational Risk Committee | ||||
OREO | Other Real Estate Owned | ||||
OTC | Over-the-Counter | ||||
OTTI | Other-Than-Temporary Impairment | ||||
PD | Probability of Default | ||||
PIPL | Personal Information Protection Law (China) | ||||
PPP | Paycheck Protection Program | ||||
PRA | Prudential Regulation Authority | ||||
Regulatory Relief Act | Economic Growth, Regulatory Relief, and Consumer Protection Act | ||||
ROU | Right-of-use | ||||
RWA | Risk-Weighted Assets | ||||
SBA | U.S. Small Business Administration | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Series D Preferred Stock | Series D Non-Cumulative Perpetual Preferred Stock | ||||
Series E Preferred Stock | Series E Non-Cumulative Perpetual Preferred Stock | ||||
SOFR | Secured Overnight Finance Rate | ||||
SFDR | Sustainable Finance Disclosure Regulations (EU) | ||||
SRD II | Shareholder Rights Directive (EU) | ||||
SFTR | Securities Financing Transactions and Reuse of Collateral | ||||
Taxonomy Regulations | Regulation (EU) 2020/852 | ||||
TDR | Troubled Debt Restructuring | ||||
Trading book | Foreign (non-U.S.) currency trading positions subject to foreign currency risk, as well as trading securities and interest rate derivative transactions, both subject to interest rate risk. | ||||
UCITS | Undertakings for the Collective Investment in Transferable Securities | ||||
UK | United Kingdom | ||||
USD LIBOR | U.S. Dollar LIBOR | ||||
VaR | Value-at-Risk | ||||
VIE | Variable Interest Entity | ||||
WM | Wealth Management | ||||
WRC | Workforce Risk Committee |
iv 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 1 |
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2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 3 |
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COMMON EQUITY TIER 1 CAPITAL | TIER 1 CAPITAL | TOTAL CAPITAL | TIER 1 LEVERAGE | SUPPLEMENTARY LEVERAGE | |||||||||||||||||||||||||
STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | ADVANCED APPROACH | |||||||||||||||||||||
Northern Trust Corporation | 10.8 | % | 11.5 | % | 11.8 | % | 12.5 | % | 13.9 | % | 14.5 | % | 7.1 | % | 7.1 | % | 7.9 | % | |||||||||||
The Northern Trust Company | 11.6 | % | 12.4 | % | 11.6 | % | 12.4 | % | 13.5 | % | 14.2 | % | 6.9 | % | 6.9 | % | 7.7 | % | |||||||||||
Minimum required ratio | 4.5 | % | 4.5 | % | 6.0 | % | 6.0 | % | 8.0 | % | 8.0 | % | 4.0 | % | 4.0 | % | 3.0 | % | |||||||||||
“Well-capitalized” minimum ratios, as applicable | |||||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 6.0 | % | 6.0 | % | 10.0 | % | 10.0 | % | N/A | N/A | N/A | ||||||||||||||||
The Northern Trust Company | 6.5 | % | 6.5 | % | 8.0 | % | 8.0 | % | 10.0 | % | 10.0 | % | 5.0 | % | 5.0 | % | 3.0 | % |
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DECEMBER 31, 2022 | ||||||||||||||||||||
FEMALE | MALE | WHITE | BLACK | HISPANIC | ASIAN | |||||||||||||||
Board of Directors | 25% | 75% | 59% | 25% | 8% | 8% | ||||||||||||||
Executive Officers | 40% | 60% | 90% | 10% | —% | —% |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 13 |
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2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 31 |
32 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE | TOTAL NUMBER OF SHARES PURCHASED AS PART OF A PUBLICLY ANNOUNCED PLAN | MAXIMUM NUMBER OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLAN | ||||||||||
October 1 - 31, 2022 | — | $ | — | — | 25,000,000 | |||||||||
November 1 - 30, 2022 | — | — | — | 25,000,000 | ||||||||||
December 1 - 31, 2022 | — | — | — | 25,000,000 | ||||||||||
Total (Fourth Quarter) | — | $ | — | — | 25,000,000 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 33 |
DECEMBER 31, | ||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||
Northern Trust | $ | 100 | $ | 85 | $ | 112 | $ | 101 | $ | 133 | $ | 102 | ||||||||
S&P 500 | 100 | 96 | 126 | 149 | 192 | 157 | ||||||||||||||
KBW Bank Index | 100 | 82 | 112 | 100 | 139 | 109 |
34 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | $ | 4,874.0 | $ | 5,081.8 | $ | 4,657.6 | |||||
Net Interest Income | 1,887.2 | 1,382.7 | 1,443.2 | ||||||||
Total Revenue | $ | 6,761.2 | $ | 6,464.5 | $ | 6,100.8 | |||||
Provision for Credit Losses | 12.0 | (81.5) | 125.0 | ||||||||
Noninterest Expense | 4,982.9 | 4,535.9 | 4,348.2 | ||||||||
Income before Income Taxes | $ | 1,766.3 | $ | 2,010.1 | $ | 1,627.6 | |||||
Provision for Income Taxes | 430.3 | 464.8 | 418.3 | ||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Preferred Stock Dividends | 41.8 | 41.8 | 56.2 | ||||||||
Net Income Applicable to Common Stock | $ | 1,294.2 | $ | 1,503.5 | $ | 1,153.1 | |||||
PER COMMON SHARE | |||||||||||
Net Income – Basic | $ | 6.16 | $ | 7.16 | $ | 5.48 | |||||
– Diluted | 6.14 | 7.14 | 5.46 | ||||||||
Cash Dividends Declared Per Common Share | 2.90 | 2.80 | 2.80 | ||||||||
Book Value – End of Period (EOP) | 49.78 | 53.58 | 51.87 | ||||||||
Market Price – EOP | 88.49 | 119.61 | 93.14 | ||||||||
SELECTED RATIOS AND METRICS | |||||||||||
Return on Average Common Equity | 12.7 | % | 13.9 | % | 11.2 | % | |||||
Return on Average Assets | 0.88 | 0.99 | 0.88 | ||||||||
Dividend Payout Ratio | 47.2 | 39.2 | 51.3 | ||||||||
Average Stockholders’ Equity to Average Assets | 7.3 | 7.5 | 8.2 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 35 |
36 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | |||||
Foreign Exchange Trading Income | 288.6 | 292.6 | 290.4 | ||||||||
Treasury Management Fees | 39.3 | 44.3 | 45.4 | ||||||||
Security Commissions and Trading Income | 136.2 | 140.2 | 133.2 | ||||||||
Other Operating Income | 191.3 | 243.9 | 194.0 | ||||||||
Investment Security Gains (Losses), net | (214.0) | (0.3) | (0.4) | ||||||||
Total Noninterest Income | $ | 4,874.0 | $ | 5,081.8 | $ | 4,657.6 | |||||
Net Interest Income(1) | 1,887.2 | 1,382.7 | 1,443.2 | ||||||||
Total Revenue | $ | 6,761.2 | $ | 6,464.5 | $ | 6,100.8 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 37 |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Asset Servicing Trust, Investment and Other Servicing Fees | |||||||||||||||||
Custody and Fund Administration | $ | 1,700.1 | $ | 1,818.8 | $ | 1,586.1 | (7) | % | 15 | % | |||||||
Investment Management | 555.1 | 443.5 | 511.1 | 25 | (13) | ||||||||||||
Securities Lending | 81.4 | 76.7 | 88.0 | 6 | (13) | ||||||||||||
Other | 159.7 | 148.3 | 136.4 | 8 | 9 | ||||||||||||
Total Asset Servicing Trust, Investment and Other Servicing Fees | $ | 2,496.3 | $ | 2,487.3 | $ | 2,321.6 | — | % | 7 | % | |||||||
Wealth Management Trust, Investment and Other Servicing Fees | |||||||||||||||||
Central | $ | 692.6 | $ | 698.7 | $ | 607.3 | (1) | % | 15 | % | |||||||
East | 504.0 | 509.3 | 442.1 | (1) | 15 | ||||||||||||
West | 382.1 | 380.2 | 337.7 | — | 13 | ||||||||||||
Global Family Office | 357.6 | 285.6 | 286.3 | 25 | — | ||||||||||||
Total Wealth Management Trust, Investment and Other Servicing Fees | $ | 1,936.3 | $ | 1,873.8 | $ | 1,673.4 | 3 | % | 12 | % | |||||||
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | 2 | % | 9 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
North America | $ | 5,703.1 | $ | 6,566.4 | $ | 5,746.4 | (13) | % | 14 | % | |||||||
Europe, Middle East, and Africa | 3,037.6 | 3,894.3 | 3,478.2 | (22) | 12 | ||||||||||||
Asia Pacific | 823.3 | 898.5 | 976.2 | (8) | (8) | ||||||||||||
Securities Lending | 148.3 | 195.6 | 186.9 | (24) | 5 | ||||||||||||
Total Assets Under Custody | $ | 9,712.3 | $ | 11,554.8 | $ | 10,387.7 | (16) | % | 11 | % |
38 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
North America | $ | 586.0 | $ | 789.2 | $ | 676.8 | (26) | % | 17 | % | |||||||
Europe, Middle East, and Africa | 121.3 | 148.5 | 143.5 | (18) | 4 | ||||||||||||
Asia Pacific | 42.5 | 57.7 | 50.3 | (26) | 15 | ||||||||||||
Securities Lending | 148.3 | 195.6 | 186.9 | (24) | 5 | ||||||||||||
Total Assets Under Management | $ | 898.1 | $ | 1,191.0 | $ | 1,057.5 | (25) | % | 13 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Global Family Office | $ | 614.9 | $ | 742.6 | $ | 600.7 | (17) | % | 24 | % | |||||||
Central | 124.2 | 139.1 | 120.0 | (11) | 16 | ||||||||||||
East | 92.0 | 105.0 | 89.1 | (12) | 18 | ||||||||||||
West | 61.2 | 70.8 | 65.3 | (13) | 8 | ||||||||||||
Total Assets Under Custody | $ | 892.3 | $ | 1,057.5 | $ | 875.1 | (16) | % | 21 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Global Family Office | $ | 119.9 | $ | 144.9 | $ | 114.0 | (17) | % | 27 | % | |||||||
Central | 110.2 | 128.7 | 109.3 | (14) | 18 | ||||||||||||
East | 71.4 | 84.5 | 73.3 | (16) | 15 | ||||||||||||
West | 49.9 | 58.0 | 51.2 | (14) | 13 | ||||||||||||
Total Assets Under Management | $ | 351.4 | $ | 416.1 | $ | 347.8 | (16) | % | 20 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 39 |
DAILY AVERAGES | YEAR-END | |||||||||||||||||||
2022 | 2021 | CHANGE | 2022 | 2021 | CHANGE | |||||||||||||||
S&P 500 | 4,101 | 4,271 | (4) | % | 3,840 | 4,766 | (19) | % | ||||||||||||
MSCI EAFE (U.S. dollars) | 1,976 | 2,289 | (14) | 1,944 | 2,336 | (17) | ||||||||||||||
MSCI EAFE (local currency) | 1,249 | 1,294 | (4) | 1,232 | 1,362 | (10) |
AS OF DECEMBER 31, | |||||||||||
2022 | 2021 | CHANGE | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 2,049 | 2,355 | (13) | % | |||||||
Barclays Capital Global Aggregate Bond Index | 446 | 532 | (16) |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 /2021 | 2021 /2020 | ||||||||||||
Asset Servicing | $ | 12,705.5 | $ | 15,183.2 | $ | 13,653.1 | (16) | % | 11 | % | |||||||
Wealth Management | 898.5 | 1,065.6 | 879.4 | (16) | 21 | ||||||||||||
Total Assets Under Custody/Administration | $ | 13,604.0 | $ | 16,248.8 | $ | 14,532.5 | (16) | % | 12 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 /2021 | 2021 / 2020 | ||||||||||||
Asset Servicing | $ | 9,712.3 | $ | 11,554.8 | $ | 10,387.7 | (16) | % | 11 | % | |||||||
Wealth Management | 892.3 | 1,057.5 | 875.1 | (16) | 21 | ||||||||||||
Total Assets Under Custody | $ | 10,604.6 | $ | 12,612.3 | $ | 11,262.8 | (16) | % | 12 | % |
40 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
AS | WM | TOTAL | AS | WM | TOTAL | AS | WM | TOTAL | |||||||||||||||||||||
Equities | 44 | % | 56 | % | 45 | % | 47 | % | 61 | % | 48 | % | 46 | % | 62 | % | 47 | % | |||||||||||
Fixed Income Securities | 33 | 15 | 32 | 35 | 13 | 33 | 36 | 15 | 34 | ||||||||||||||||||||
Cash and Other Assets | 21 | 29 | 22 | 16 | 26 | 17 | 16 | 23 | 17 | ||||||||||||||||||||
Securities Lending Collateral | 2 | — | 1 | 2 | — | 2 | 2 | — | 2 |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Equities | $ | 4,810.7 | $ | 6,049.1 | $ | 5,293.9 | (20) | % | 14 | % | |||||||
Fixed Income Securities | 3,386.1 | 4,139.6 | 3,870.9 | (18) | 7 | ||||||||||||
Cash and Other Assets | 2,259.5 | 2,228.0 | 1,911.1 | 1 | 17 | ||||||||||||
Securities Lending Collateral | 148.3 | 195.6 | 186.9 | (24) | 5 | ||||||||||||
Total Assets Under Custody | $ | 10,604.6 | $ | 12,612.3 | $ | 11,262.8 | (16) | % | 12 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Asset Servicing | $ | 898.1 | $ | 1,191.0 | $ | 1,057.5 | (25) | % | 13 | % | |||||||
Wealth Management | 351.4 | 416.1 | 347.8 | (16) | 20 | ||||||||||||
Total Assets Under Management | $ | 1,249.5 | $ | 1,607.1 | $ | 1,405.3 | (22) | % | 14 | % |
DECEMBER 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
AS | WM | TOTAL | AS | WM | TOTAL | AS | WM | TOTAL | |||||||||||||||||||||
Equities | 54 | % | 53 | % | 54 | % | 53 | % | 55 | % | 53 | % | 52 | % | 52 | % | 52 | % | |||||||||||
Fixed Income Securities | 12 | 23 | 15 | 11 | 20 | 13 | 11 | 25 | 15 | ||||||||||||||||||||
Cash and Other Assets | 17 | 24 | 19 | 20 | 25 | 22 | 19 | 23 | 20 | ||||||||||||||||||||
Securities Lending Collateral | 17 | — | 12 | 16 | — | 12 | 18 | — | 13 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 41 |
DECEMBER 31, | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
AS | WM | TOTAL | AS | WM | TOTAL | AS | WM | TOTAL | |||||||||||||||||||||
Index | 62 | % | 23 | % | 51 | % | 60 | % | 24 | % | 50 | % | 58 | % | 24 | % | 50 | % | |||||||||||
Active | 35 | 37 | 36 | 37 | 39 | 38 | 38 | 39 | 38 | ||||||||||||||||||||
Multi-Manager | 3 | 10 | 5 | 3 | 9 | 5 | 4 | 8 | 5 | ||||||||||||||||||||
Other | — | 30 | 8 | — | 28 | 7 | — | 29 | 7 |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Foreign Exchange Trading Income | $ | 288.6 | $ | 292.6 | $ | 290.4 | (1) | % | 1 | % | |||||||
Treasury Management Fees | 39.3 | 44.3 | 45.4 | (11) | (3) | ||||||||||||
Security Commissions and Trading Income | 136.2 | 140.2 | 133.2 | (3) | 5 | ||||||||||||
Other Operating Income | 191.3 | 243.9 | 194.0 | (22) | 26 | ||||||||||||
Investment Security Gains (Losses), net | (214.0) | (0.3) | (0.4) | N/M | N/M | ||||||||||||
Total Other Noninterest Income | $ | 441.4 | $ | 720.7 | $ | 662.6 | (39) | % | 9 | % |
42 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 43 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
($ In Millions) | INTEREST | AVERAGE BALANCE | AVERAGE RATE(7) | INTEREST | AVERAGE BALANCE | AVERAGE RATE(7) | INTEREST | AVERAGE BALANCE | AVERAGE RATE(7) | ||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 472.0 | $ | 36,248.8 | 1.30 | % | $ | 11.3 | $ | 39,028.2 | 0.03 | % | $ | 28.8 | $ | 27,904.2 | 0.10 | % | |||||||||||
Interest-Bearing Due from and Deposits with Banks(2) | 46.6 | 4,192.5 | 1.11 | 9.1 | 5,779.7 | 0.16 | 22.4 | 5,400.8 | 0.41 | ||||||||||||||||||||
Federal Funds Sold | 0.1 | 5.5 | 3.22 | — | 0.1 | 0.41 | — | 2.3 | 1.37 | ||||||||||||||||||||
Securities Purchased under Agreements to Resell(3) | 103.7 | 1,071.2 | 9.68 | 3.5 | 1,067.4 | 0.33 | 3.9 | 1,253.1 | 0.31 | ||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||
Available For Sale | 612.8 | 32,060.2 | 1.91 | 497.6 | 38,986.9 | 1.28 | 720.2 | 40,642.7 | 1.77 | ||||||||||||||||||||
Held To Maturity | 289.5 | 22,970.0 | 1.26 | 164.3 | 20,617.0 | 0.80 | 85.0 | 14,353.3 | 0.59 | ||||||||||||||||||||
Trading Account | 0.4 | 12.1 | 3.84 | — | 0.6 | 1.59 | — | 1.1 | 3.27 | ||||||||||||||||||||
Total Debt Securities | 902.7 | 55,042.3 | 1.64 | 661.9 | 59,604.5 | 1.11 | 805.2 | 54,997.1 | 1.46 | ||||||||||||||||||||
Loans and Leases(4) | 1,348.0 | 41,030.6 | 3.28 | 715.6 | 37,207.5 | 1.92 | 778.5 | 33,498.8 | 2.32 | ||||||||||||||||||||
Other Interest-Earning Assets(5) | 50.2 | 1,248.1 | 4.03 | 40.7 | 1,185.6 | 3.43 | 39.1 | 1,076.6 | 3.63 | ||||||||||||||||||||
Total Interest-Earning Assets | 2,923.3 | 138,839.0 | 2.11 | 1,442.1 | 143,873.0 | 1.00 | 1,677.9 | 124,132.9 | 1.35 | ||||||||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(6) | — | 2,069.5 | — | — | 2,285.9 | — | — | 2,603.0 | — | ||||||||||||||||||||
Other Noninterest-Earning Assets | — | 11,643.4 | — | — | 10,204.3 | — | — | 10,075.2 | — | ||||||||||||||||||||
Total Assets | $ | — | $ | 152,551.9 | — | % | $ | — | $ | 156,363.2 | — | % | $ | — | $ | 136,811.1 | — | % | |||||||||||
AVERAGE SOURCE OF FUNDS | |||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||
Savings, Money Market, and Other | $ | 222.3 | $ | 30,205.0 | 0.74 | % | $ | 12.8 | $ | 28,339.0 | 0.05 | % | $ | 47.6 | $ | 23,396.4 | 0.20 | % | |||||||||||
Savings Certificates and Other Time | 17.8 | 1,059.7 | 1.68 | 4.8 | 887.2 | 0.55 | 16.5 | 1,266.4 | 1.30 | ||||||||||||||||||||
Non-U.S. Offices – Interest-Bearing | 362.7 | 65,031.3 | 0.56 | (78.9) | 69,713.4 | (0.11) | (15.7) | 60,486.3 | (0.03) | ||||||||||||||||||||
Total Interest-Bearing Deposits | 602.8 | 96,296.0 | 0.63 | (61.3) | 98,939.6 | (0.06) | 48.4 | 85,149.1 | 0.06 | ||||||||||||||||||||
Federal Funds Purchased | 34.1 | 1,407.8 | 2.43 | (0.4) | 190.6 | (0.19) | 2.2 | 980.9 | 0.22 | ||||||||||||||||||||
Securities Sold under Agreements to Repurchase(3) | 90.7 | 433.6 | 20.94 | 0.2 | 232.0 | 0.07 | 1.0 | 218.3 | 0.47 | ||||||||||||||||||||
Other Borrowings | 126.2 | 5,463.5 | 2.31 | 14.2 | 5,049.8 | 0.28 | 45.3 | 6,401.1 | 0.71 | ||||||||||||||||||||
Senior Notes | 92.7 | 2,756.0 | 3.36 | 48.3 | 2,856.4 | 1.69 | 72.7 | 3,233.8 | 2.24 | ||||||||||||||||||||
Long-Term Debt | 44.0 | 1,258.9 | 3.49 | 21.1 | 1,166.1 | 1.81 | 26.5 | 1,189.2 | 2.24 | ||||||||||||||||||||
Floating Rate Capital Debt | — | — | — | 1.7 | 218.4 | 0.78 | 4.2 | 277.7 | 1.52 | ||||||||||||||||||||
Total Interest-Related Funds | 990.5 | 107,615.8 | 0.92 | 23.8 | 108,652.9 | 0.02 | 200.3 | 97,450.1 | 0.21 | ||||||||||||||||||||
Interest Rate Spread | — | — | 1.19 | — | — | 0.98 | — | — | 1.14 | ||||||||||||||||||||
Demand and Other Noninterest-Bearing Deposits | — | 29,296.4 | — | — | 31,143.5 | — | — | 23,362.0 | — | ||||||||||||||||||||
Other Noninterest-Bearing Liabilities | — | 4,558.3 | — | — | 4,869.8 | — | — | 4,806.4 | — | ||||||||||||||||||||
Stockholders’ Equity | — | 11,081.4 | — | — | 11,697.0 | — | — | 11,192.6 | — | ||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | — | $ | 152,551.9 | — | % | $ | — | $ | 156,363.2 | — | % | $ | — | $ | 136,811.1 | — | % | |||||||||||
Net Interest Income/Margin (FTE Adjusted) | $ | 1,932.8 | $ | — | 1.39 | % | $ | 1,418.3 | $ | — | 0.99 | % | $ | 1,477.6 | $ | — | 1.19 | % | |||||||||||
Net Interest Income/Margin (Unadjusted) | $ | 1,887.2 | $ | — | 1.36 | % | $ | 1,382.7 | $ | — | 0.96 | % | $ | 1,443.2 | $ | — | 1.16 | % |
44 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS) | 2022/2021 CHANGE DUE TO | 2021/2020 CHANGE DUE TO | ||||||||||||||||||
(In Millions) | AVERAGE BALANCE | AVERAGE RATE | NET (DECREASE) INCREASE | AVERAGE BALANCE | AVERAGE RATE | NET (DECREASE) INCREASE | ||||||||||||||
Increase (Decrease) in Net Interest Income (FTE) | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | (0.9) | $ | 461.6 | $ | 460.7 | $ | 7.8 | $ | (25.3) | $ | (17.5) | ||||||||
Interest-Bearing Due from and Deposits with Banks | (3.1) | 40.6 | 37.5 | 1.5 | (14.8) | (13.3) | ||||||||||||||
Federal Funds Sold | 0.1 | — | 0.1 | — | — | — | ||||||||||||||
Securities Purchased under Agreements to Resell | — | 100.2 | 100.2 | (0.6) | 0.2 | (0.4) | ||||||||||||||
Debt Securities | ||||||||||||||||||||
Available For Sale | (78.2) | 193.4 | 115.2 | (6.4) | (216.2) | (222.6) | ||||||||||||||
Held To Maturity | 20.6 | 104.6 | 125.2 | 66.1 | 13.2 | 79.3 | ||||||||||||||
Trading Account | 0.4 | — | 0.4 | — | — | — | ||||||||||||||
Total Debt Securities | (57.2) | 298.0 | 240.8 | 59.7 | (203.0) | (143.3) | ||||||||||||||
Loans and Leases | 80.1 | 552.3 | 632.4 | 164.0 | (226.9) | (62.9) | ||||||||||||||
Other Interest-Earning Assets | $ | 2.2 | $ | 7.3 | $ | 9.5 | $ | 3.9 | $ | (2.3) | $ | 1.6 | ||||||||
Total Interest Income | $ | 21.2 | $ | 1,460.0 | $ | 1,481.2 | $ | 236.3 | $ | (472.1) | $ | (235.8) | ||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 1.0 | $ | 208.5 | $ | 209.5 | $ | 7.8 | $ | (42.6) | $ | (34.8) | ||||||||
Savings Certificates and Other Time | 1.1 | 11.9 | 13.0 | (4.0) | (7.7) | (11.7) | ||||||||||||||
Non-U.S. Offices - Interest-Bearing | (3.6) | 445.2 | 441.6 | 33.4 | (96.6) | (63.2) | ||||||||||||||
Total Interest-Bearing Deposits | (1.5) | 665.6 | 664.1 | 37.2 | (146.9) | (109.7) | ||||||||||||||
Federal Funds Purchased | 7.7 | 26.8 | 34.5 | (0.8) | (1.8) | (2.6) | ||||||||||||||
Securities Sold under Agreements to Repurchase | 0.2 | 90.3 | 90.5 | 0.1 | (0.9) | (0.8) | ||||||||||||||
Other Borrowings | 1.3 | 110.7 | 112.0 | (8.1) | (23.0) | (31.1) | ||||||||||||||
Senior Notes | (1.8) | 46.2 | 44.4 | (7.9) | (16.5) | (24.4) | ||||||||||||||
Long-Term Debt | 1.8 | 21.1 | 22.9 | (0.5) | (4.9) | (5.4) | ||||||||||||||
Floating Rate Capital Debt | (1.7) | — | (1.7) | (0.8) | (1.7) | (2.5) | ||||||||||||||
Total Interest Expense | $ | 6.0 | $ | 960.7 | $ | 966.7 | $ | 19.2 | $ | (195.7) | $ | (176.5) | ||||||||
(Decrease) Increase in Net Interest Income (FTE) | $ | 15.2 | $ | 499.3 | $ | 514.5 | $ | 217.1 | $ | (276.4) | $ | (59.3) |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 45 |
46 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Compensation | $ | 2,248.0 | $ | 2,011.0 | $ | 1,947.1 | 12 | % | 3 | % | |||||||
Employee Benefits | 437.4 | 431.4 | 387.7 | 1 | 11 | ||||||||||||
Outside Services | 880.3 | 849.4 | 763.1 | 4 | 11 | ||||||||||||
Equipment and Software | 838.8 | 736.3 | 673.5 | 14 | 9 | ||||||||||||
Occupancy | 219.1 | 208.7 | 230.1 | 5 | (9) | ||||||||||||
Other Operating Expense | 359.3 | 299.1 | 346.7 | 20 | (14) | ||||||||||||
Total Noninterest Expense | $ | 4,982.9 | $ | 4,535.9 | $ | 4,348.2 | 10 | % | 4 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 47 |
48 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | 2 | % | 9 | % | |||||||
Foreign Exchange Trading Income | 288.6 | 292.6 | 290.4 | (1) | 1 | ||||||||||||
Other Noninterest Income | 152.8 | 428.1 | 372.2 | (64) | 15 | ||||||||||||
Total Noninterest Income | 4,874.0 | 5,081.8 | 4,657.6 | (4) | 9 | ||||||||||||
Net Interest Income | 1,887.2 | 1,382.7 | 1,443.2 | 36 | (4) | ||||||||||||
Revenue | 6,761.2 | 6,464.5 | 6,100.8 | 5 | 6 | ||||||||||||
Provision for Credit Losses | 12.0 | (81.5) | 125.0 | N/M | N/M | ||||||||||||
Noninterest Expense | 4,982.9 | 4,535.9 | 4,348.2 | 10 | 4 | ||||||||||||
Income before Income Taxes | 1,766.3 | 2,010.1 | 1,627.6 | (12) | 24 | ||||||||||||
Provision for Income Taxes | 430.3 | 464.8 | 418.3 | (7) | 11 | ||||||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | (14) | % | 28 | % | |||||||
Average Assets | $ | 152,551.9 | $ | 156,363.2 | $ | 136,811.1 | (2) | % | 14 | % |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,496.3 | $ | 2,487.3 | $ | 2,321.6 | — | % | 7 | % | |||||||
Foreign Exchange Trading Income | 281.0 | 279.0 | 276.3 | 1 | 1 | ||||||||||||
Other Noninterest Income | 250.7 | 261.2 | 222.5 | (4) | 17 | ||||||||||||
Total Noninterest Income | 3,028.0 | 3,027.5 | 2,820.4 | — | 7 | ||||||||||||
Net Interest Income(1) | 1,072.7 | 637.2 | 665.5 | 68 | (4) | ||||||||||||
Revenue(1) | 4,100.7 | 3,664.7 | 3,485.9 | 12 | 5 | ||||||||||||
Provision for Credit Losses | 2.4 | (33.8) | 38.1 | N/M | N/M | ||||||||||||
Noninterest Expense | 3,092.7 | 2,863.0 | 2,752.7 | 8 | 4 | ||||||||||||
Income before Income Taxes(1) | 1,005.6 | 835.5 | 695.1 | 20 | 20 | ||||||||||||
Provision for Income Taxes(1) | 243.2 | 194.1 | 174.4 | 25 | 11 | ||||||||||||
Net Income | $ | 762.4 | $ | 641.4 | $ | 520.7 | 19 | % | 23 | % | |||||||
Percentage of Consolidated Net Income | 57 | % | 41 | % | 43 | % | |||||||||||
Average Assets | $ | 115,646.4 | $ | 120,883.2 | $ | 104,790.6 | (4) | % | 15 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 49 |
50 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,936.3 | $ | 1,873.8 | $ | 1,673.4 | 3 | % | 12 | % | |||||||
Foreign Exchange Trading Income | 7.6 | 13.6 | 14.1 | (44) | (4) | ||||||||||||
Other Noninterest Income | 137.7 | 188.2 | 168.0 | (27) | 12 | ||||||||||||
Total Noninterest Income | 2,081.6 | 2,075.6 | 1,855.5 | — | 12 | ||||||||||||
Net Interest Income(1) | 860.1 | 781.1 | 812.1 | 10 | (4) | ||||||||||||
Revenue(1) | 2,941.7 | 2,856.7 | 2,667.6 | 3 | 7 | ||||||||||||
Provision for Credit Losses | 9.6 | (47.7) | 86.9 | N/M | N/M | ||||||||||||
Noninterest Expense | 1,815.5 | 1,651.1 | 1,559.7 | 10 | 6 | ||||||||||||
Income before Income Taxes(1) | 1,116.6 | 1,253.3 | 1,021.0 | (11) | 23 | ||||||||||||
Provision for Income Taxes(1) | 310.0 | 317.0 | 291.8 | (2) | 9 | ||||||||||||
Net Income | $ | 806.6 | $ | 936.3 | $ | 729.2 | (14) | % | 28 | % | |||||||
Percentage of Consolidated Net Income | 60 | % | 61 | % | 60 | % | |||||||||||
Average Assets | $ | 36,905.5 | $ | 35,480.0 | $ | 32,020.5 | 4 | % | 11 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 51 |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Noninterest Income | $ | (235.6) | $ | (21.3) | $ | (18.3) | N/M | N/M | |||||||||
Net Interest Income(1) | — | — | — | N/M | N/M | ||||||||||||
Revenue(1) | (235.6) | (21.3) | (18.3) | N/M | N/M | ||||||||||||
Noninterest Expense | 74.7 | 21.8 | 35.8 | N/M | (39) | ||||||||||||
Income (Loss) before Income Taxes(1) | (310.3) | (43.1) | (54.1) | N/M | N/M | ||||||||||||
Provision (Benefit) for Income Taxes(1) | (77.3) | (10.7) | (13.5) | N/M | N/M | ||||||||||||
Net Income | $ | (233.0) | $ | (32.4) | $ | (40.6) | N/M | N/M | |||||||||
Percentage of Consolidated Net Income | (17) | % | (2) | % | (3) | % | |||||||||||
Average Assets | $ | — | $ | — | $ | — | N/M | N/M |
52 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2022 | 2021 | 2020 | 2022 / 2021 | 2021 / 2020 | ||||||||||||
Equities | $ | 671.3 | $ | 856.5 | $ | 733.7 | (22) | % | 17 | % | |||||||
Fixed Income Securities | 186.5 | 216.1 | 204.8 | (14) | 6 | ||||||||||||
Cash and Other Assets | 243.4 | 338.9 | 279.9 | (28) | 21 | ||||||||||||
Securities Lending Collateral | 148.3 | 195.6 | 186.9 | (24) | 5 | ||||||||||||
Total Assets Under Management | $ | 1,249.5 | $ | 1,607.1 | $ | 1,405.3 | (22) | % | 14 | % |
($ In Billions) | 2022 | 2021 | 2020 | |||||||||||
Balance as of January 1 | $ | 1,607.1 | $ | 1,405.3 | $ | 1,231.3 | ||||||||
Inflows by Product | ||||||||||||||
Equities | 187.7 | 292.9 | 193.0 | |||||||||||
Fixed Income | 48.7 | 63.7 | 65.0 | |||||||||||
Cash and Other Assets | 643.2 | 810.2 | 802.4 | |||||||||||
Securities Lending Collateral | 235.3 | 270.6 | 268.8 | |||||||||||
Total Inflows | 1,114.9 | 1,437.4 | 1,329.2 | |||||||||||
Outflows by Product | ||||||||||||||
Equities | (231.9) | (321.0) | (212.6) | |||||||||||
Fixed Income | (55.5) | (56.2) | (68.5) | |||||||||||
Cash and Other Assets | (743.2) | (745.4) | (746.5) | |||||||||||
Securities Lending Collateral | (282.6) | (261.9) | (245.0) | |||||||||||
Total Outflows | (1,313.2) | (1,384.5) | (1,272.6) | |||||||||||
Net Inflows (Outflows) | (198.3) | 52.9 | 56.6 | |||||||||||
Market Performance, Currency & Other | ||||||||||||||
Market Performance & Other | (143.0) | 159.8 | 109.1 | |||||||||||
Currency | (16.3) | (10.9) | 8.3 | |||||||||||
Total Market Performance, Currency & Other | (159.3) | 148.9 | 117.4 | |||||||||||
Balance as of December 31 | $ | 1,249.5 | $ | 1,607.1 | $ | 1,405.3 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 53 |
($ In Billions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | CHANGE | |||||||||||
Assets | ||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 40.0 | $ | 64.5 | $ | (24.5) | (38) | % | ||||||
Interest-Bearing Due from and Deposits with Banks(1) | 4.9 | 3.9 | 1.0 | 28 | ||||||||||
Securities Purchased under Agreements to Resell | 1.1 | 0.7 | 0.4 | 56 | ||||||||||
Total Securities | 51.8 | 61.6 | (9.8) | (16) | ||||||||||
Loans and Leases | 42.9 | 40.5 | 2.4 | 6 | ||||||||||
Other Interest-Earning Assets(2) | 1.8 | 1.1 | 0.7 | 49 | ||||||||||
Total Earning Assets | 142.5 | 172.3 | (29.8) | (17) | ||||||||||
Total Assets | 155.0 | 183.9 | (28.9) | (16) | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Total Interest-Bearing Deposits | 98.6 | 111.6 | (13.0) | (12) | ||||||||||
Demand and Other Noninterest-Bearing Deposits | 25.3 | 48.3 | (23.0) | (48) | ||||||||||
Federal Funds Purchased | 1.9 | — | 1.9 | N/M | ||||||||||
Securities Sold under Agreements to Repurchase | 0.6 | 0.5 | 0.1 | 7 | ||||||||||
Other Borrowings | 7.6 | 3.6 | 4.0 | 112 | ||||||||||
Total Stockholders’ Equity | 11.3 | 12.0 | (0.7) | (6) |
TWELVE MONTHS ENDED DECEMBER 31, | ||||||||||||||
($ In Billions) | 2022 | 2021 | CHANGE | |||||||||||
Assets | ||||||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 36.2 | $ | 39.0 | $ | (2.8) | (7) | % | ||||||
Interest-Bearing Due from and Deposits with Banks(1) | 4.2 | 5.8 | (1.6) | (27) | ||||||||||
Securities Purchased under Agreements to Resell | 1.1 | 1.1 | — | — | ||||||||||
Total Securities | 55.0 | 59.6 | (4.6) | (8) | ||||||||||
Loans and Leases | 41.0 | 37.2 | 3.8 | 10 | ||||||||||
Other Interest-Earning Assets(2) | 1.3 | 1.2 | 0.1 | 5 | ||||||||||
Total Earning Assets | 138.8 | 143.9 | (5.1) | (3) | ||||||||||
Total Assets | 152.6 | 156.4 | (3.8) | (2) | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Total Interest-Bearing Deposits | 96.3 | 98.9 | (2.6) | (3) | ||||||||||
Demand and Other Noninterest-Bearing Deposits | 29.3 | 31.1 | (1.8) | (6) | ||||||||||
Federal Funds Purchased | 1.4 | 0.2 | 1.2 | N/M | ||||||||||
Securities Sold under Agreements to Repurchase | 0.4 | 0.2 | 0.2 | 87 | ||||||||||
Other Borrowings | 5.5 | 5.0 | 0.5 | 8 | ||||||||||
Total Stockholders’ Equity | 11.1 | 11.7 | (0.6) | (5) |
54 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 55 |
DECEMBER 31, 2022 | |||||||||||||||||||||||||||||||||||
TOTAL | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO TEN YEARS | OVER TEN YEARS | AVERAGE MATURITY | ||||||||||||||||||||||||||||||
($ in Millions) | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | |||||||||||||||||||||||||
Held to Maturity Debt Securities | |||||||||||||||||||||||||||||||||||
U.S. Government | $ | 50.0 | 3.32% | $ | 50.0 | 3.32% | $ | — | —% | $ | — | — | % | $ | — | —% | 2 mos. | ||||||||||||||||||
Obligations of States and Political Subdivisions | 2,565.3 | 2.76 | 36.4 | 3.28 | 753.0 | 3.42 | 1,325.5 | 3.32 | 450.4 | 3.92 | 81 mos. | ||||||||||||||||||||||||
Government Sponsored Agency | 9,407.7 | 1.90 | 879.8 | 1.99 | 2,957.6 | 2.02 | 3,629.7 | 1.80 | 1,940.6 | 1.88 | 81 mos. | ||||||||||||||||||||||||
Non-U.S. Government | 3,234.0 | 0.45 | 1,742.3 | 0.42 | 1,344.7 | 0.49 | 147.0 | 0.49 | — | — | 19 mos. | ||||||||||||||||||||||||
Corporate Debt | 713.3 | 0.36 | 91.8 | 0.12 | 606.4 | 0.41 | 15.1 | (0.20) | — | — | 28 mos. | ||||||||||||||||||||||||
Covered Bonds | 2,530.3 | 0.85 | 410.5 | 1.22 | 1,699.8 | 0.88 | 420.0 | 0.37 | — | — | 38 mos. | ||||||||||||||||||||||||
Certificates of Deposit | 35.9 | 11.88 | 35.9 | 11.88 | — | — | — | — | — | — | 0 mos. | ||||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 5,703.3 | 0.88 | 1,019.0 | 1.37 | 4,554.6 | 0.81 | 129.7 | (0.23) | — | — | 31 mos. | ||||||||||||||||||||||||
Other Asset-Backed | 263.7 | 1.76 | 88.6 | 1.55 | 102.9 | 2.08 | 72.2 | 1.58 | — | — | 69 mos. | ||||||||||||||||||||||||
Other | 532.6 | 1.17 | 46.5 | 1.51 | 301.2 | 1.22 | 34.5 | 2.55 | 150.4 | 0.66 | 104 mos. | ||||||||||||||||||||||||
Total Held to Maturity Debt Securities | $ | 25,036.1 | 1.42% | $ | 4,400.8 | 1.21% | $ | 12,320.2 | 1.24% | $ | 5,773.7 | 1.96 | % | $ | 2,541.4 | 1.47% | 56 mos. | ||||||||||||||||||
Available for Sale Debt Securities | |||||||||||||||||||||||||||||||||||
U.S. Government | $ | 2,747.4 | 1.87% | $ | 1,574.5 | 1.72% | $ | 1,172.9 | 2.08% | $ | — | — | % | $ | — | —% | 20 mos. | ||||||||||||||||||
Obligations of States and Political Subdivisions | 787.6 | 2.15 | — | — | 105.5 | 2.43 | 646.5 | 2.10 | 35.6 | 2.29 | 77 mos. | ||||||||||||||||||||||||
Government Sponsored Agency | 11,545.2 | 3.67 | 2,404.0 | 3.60 | 5,441.7 | 3.72 | 2,962.5 | 3.71 | 737.0 | 3.27 | 48 mos. | ||||||||||||||||||||||||
Non-U.S. Government | 360.0 | 1.16 | 101.1 | 2.61 | 258.9 | 0.59 | — | — | — | — | 31 mos. | ||||||||||||||||||||||||
Corporate Debt | 1,747.6 | 1.98 | 551.8 | 2.41 | 1,180.3 | 1.79 | 14.8 | 1.20 | 0.7 | 1.20 | 21 mos. | ||||||||||||||||||||||||
Covered Bonds | 388.7 | 2.89 | 159.2 | 3.36 | 229.5 | 2.56 | — | — | — | — | 22 mos. | ||||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,479.4 | 1.96 | 494.3 | 2.42 | 1,802.7 | 1.89 | 182.4 | 1.39 | — | — | 32 mos. | ||||||||||||||||||||||||
Other Asset-Backed | 5,256.2 | 3.40 | 848.6 | 1.71 | 3,035.5 | 3.04 | 1,219.7 | 5.24 | 152.4 | 5.27 | 41 mos. | ||||||||||||||||||||||||
Commercial Mortgage-Backed | 1,387.8 | 3.86 | 17.5 | 3.53 | 1,145.3 | 4.11 | 225.0 | 2.60 | — | — | 46 mos. | ||||||||||||||||||||||||
Total Available for Sale Debt Securities | $ | 26,699.9 | 3.08% | $ | 6,151.0 | 2.64% | $ | 14,372.3 | 3.00% | $ | 5,250.9 | 3.73 | % | $ | 925.7 | 3.56% | 41 mos. |
56 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
AS OF DECEMBER 31, 2022 | ||||||||||||||||||||
($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 2,747.4 | $ | — | $ | — | $ | — | $ | — | $ | 2,747.4 | ||||||||
Obligations of States and Political Subdivisions | 136.4 | 651.2 | — | — | — | 787.6 | ||||||||||||||
Government Sponsored Agency | 11,545.2 | — | — | — | — | 11,545.2 | ||||||||||||||
Non-U.S. Government | 360.0 | — | — | — | — | 360.0 | ||||||||||||||
Corporate Debt | 302.5 | 462.6 | 938.7 | 19.6 | 24.2 | 1,747.6 | ||||||||||||||
Covered Bonds | 367.0 | — | 21.7 | — | — | 388.7 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 1,816.3 | 451.5 | 211.6 | — | — | 2,479.4 | ||||||||||||||
Other Asset-Backed | 5,256.2 | — | — | — | — | 5,256.2 | ||||||||||||||
Commercial Mortgage-Backed | 1,387.8 | — | — | — | — | 1,387.8 | ||||||||||||||
Total | $ | 23,918.8 | $ | 1,565.3 | $ | 1,172.0 | $ | 19.6 | $ | 24.2 | $ | 26,699.9 | ||||||||
Percent of Total | 90 | % | 6 | % | 4 | % | — | % | — | % | 100 | % |
AS OF DECEMBER 31, 2021 | ||||||||||||||||||||
($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 2,426.1 | $ | — | $ | — | $ | — | $ | — | $ | 2,426.1 | ||||||||
Obligations of States and Political Subdivisions | 1,133.2 | 2,742.9 | — | — | — | 3,876.1 | ||||||||||||||
Government Sponsored Agency | 18,075.6 | — | — | — | — | 18,075.6 | ||||||||||||||
Non-U.S. Government | 374.0 | — | — | — | — | 374.0 | ||||||||||||||
Corporate Debt | 442.0 | 466.2 | 1,206.6 | 29.4 | 197.5 | 2,341.7 | ||||||||||||||
Covered Bonds | 364.1 | — | 23.5 | — | 118.0 | 505.6 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,030.9 | 783.7 | 230.5 | — | — | 3,045.1 | ||||||||||||||
Other Asset-Backed | 5,941.6 | — | — | — | — | 5,941.6 | ||||||||||||||
Commercial Mortgage-Backed | 1,424.7 | — | — | — | — | 1,424.7 | ||||||||||||||
Total | $ | 32,212.2 | $ | 3,992.8 | $ | 1,460.6 | $ | 29.4 | $ | 315.5 | $ | 38,010.5 | ||||||||
Percent of Total | 84 | % | 11 | % | 4 | % | — | % | 1 | % | 100 | % |
AS OF DECEMBER 31, 2022 | ||||||||||||||||||||
($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 50.0 | $ | — | $ | — | $ | — | $ | — | $ | 50.0 | ||||||||
Obligations of States and Political Subdivisions | 926.8 | 1,638.5 | — | — | — | 2,565.3 | ||||||||||||||
Government Sponsored Agency | 9,407.7 | — | — | — | — | 9,407.7 | ||||||||||||||
Non-U.S. Government | 762.2 | 926.5 | 1,223.0 | 322.3 | — | 3,234.0 | ||||||||||||||
Corporate Debt | 2.1 | 305.7 | 405.5 | — | — | 713.3 | ||||||||||||||
Covered Bonds | 2,530.3 | — | — | — | — | 2,530.3 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 35.9 | 35.9 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,171.3 | 1,502.0 | 28.9 | 1.1 | — | 5,703.3 | ||||||||||||||
Other Asset-Backed | 263.7 | — | — | — | — | 263.7 | ||||||||||||||
Other | 65.8 | — | — | — | 466.8 | 532.6 | ||||||||||||||
Total | $ | 18,179.9 | $ | 4,372.7 | $ | 1,657.4 | $ | 323.4 | $ | 502.7 | $ | 25,036.1 | ||||||||
Percent of Total | 73 | % | 17 | % | 7 | % | 1 | % | 2 | % | 100 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 57 |
AS OF DECEMBER 31, 2021 | ||||||||||||||||||||
(In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 47.0 | $ | — | $ | — | $ | — | $ | — | $ | 47.0 | ||||||||
Obligations of States and Political Subdivisions | — | 0.8 | — | — | — | 0.8 | ||||||||||||||
Government Sponsored Agency | 5,927.6 | — | — | — | — | 5,927.6 | ||||||||||||||
Non-U.S. Government | 398.0 | 942.6 | 4,088.8 | 343.9 | — | 5,773.3 | ||||||||||||||
Corporate Debt | 2.3 | 386.7 | 512.8 | — | — | 901.8 | ||||||||||||||
Covered Bonds | 2,942.4 | — | — | — | — | 2,942.4 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 674.7 | 674.7 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,207.6 | 1,858.0 | 31.3 | 1.1 | — | 6,098.0 | ||||||||||||||
Other Asset-Backed | 682.6 | — | — | — | — | 682.6 | ||||||||||||||
Other | — | — | — | — | 516.3 | 516.3 | ||||||||||||||
Total | $ | 14,207.5 | $ | 3,188.1 | $ | 4,632.9 | $ | 345.0 | $ | 1,191.0 | $ | 23,564.5 | ||||||||
Percent of Total | 60 | % | 14 | % | 20 | % | 1 | % | 5 | % | 100 | % |
58 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | |||||||||||||||||
(In Millions) | TOTAL | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO FIFTEEN YEARS | OVER FIFTEEN YEARS | ||||||||||||
U.S.: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 12,415.0 | $ | 5,535.5 | $ | 6,598.2 | $ | 280.9 | $ | 0.4 | |||||||
Commercial Real Estate | 4,773.0 | 1,410.9 | 2,711.1 | 651.0 | — | ||||||||||||
Other | 1,316.5 | 1,316.5 | — | — | — | ||||||||||||
Personal | |||||||||||||||||
Private Client | 14,119.0 | 9,594.8 | 4,366.8 | 156.9 | 0.5 | ||||||||||||
Residential Real Estate | 6,413.5 | 299.6 | 1,009.8 | 1,971.3 | 3,132.8 | ||||||||||||
Other | 215.2 | 215.2 | — | — | — | ||||||||||||
Total U.S. | $ | 39,252.2 | $ | 18,372.5 | $ | 14,685.9 | $ | 3,060.1 | $ | 3,133.7 | |||||||
Non-U.S.: | |||||||||||||||||
Non-U.S. - Commercial | $ | 3,131.1 | $ | 2,833.9 | $ | 277.2 | $ | 20.0 | $ | — | |||||||
Non-U.S. - Personal | 510.0 | 316.8 | 137.0 | 30.2 | 26.0 | ||||||||||||
Total Non-U.S. | $ | 3,641.1 | $ | 3,150.7 | $ | 414.2 | $ | 50.2 | $ | 26.0 | |||||||
Total Loans and Leases | $ | 42,893.3 | $ | 21,523.2 | $ | 15,100.1 | $ | 3,110.3 | $ | 3,159.7 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 59 |
DECEMBER 31, 2022 | |||||||||||||||||
(In Millions) | TOTAL | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO FIFTEEN YEARS | OVER FIFTEEN YEARS | ||||||||||||
Fixed Rate: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 317.1 | $ | 129.3 | $ | 155.7 | $ | 31.9 | $ | 0.2 | |||||||
Commercial Real Estate | 178.8 | 64.4 | 104.9 | 9.5 | — | ||||||||||||
Non-U.S. | 26.9 | 26.9 | — | — | |||||||||||||
Total Commercial | $ | 522.8 | $ | 220.6 | $ | 260.6 | $ | 41.4 | $ | 0.2 | |||||||
Personal | |||||||||||||||||
Private Client | $ | 395.0 | $ | 47.0 | $ | 342.5 | $ | 5.2 | $ | 0.3 | |||||||
Residential Real Estate | 783.9 | 76.0 | 264.2 | 414.6 | 29.1 | ||||||||||||
Non-U.S. | 10.0 | — | 10.0 | — | — | ||||||||||||
Total Personal | $ | 1,188.9 | $ | 123.0 | $ | 616.7 | $ | 419.8 | $ | 29.4 | |||||||
Total Fixed Rate | $ | 1,711.7 | $ | 343.6 | $ | 877.3 | $ | 461.2 | $ | 29.6 | |||||||
Variable Rate: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 12,097.9 | $ | 5,406.3 | $ | 6,442.4 | $ | 249.0 | $ | 0.2 | |||||||
Commercial Real Estate | 4,594.2 | 1,346.5 | 2,606.3 | 641.4 | — | ||||||||||||
Non-U.S. | 3,104.2 | 2,807.0 | 277.2 | 20.0 | — | ||||||||||||
Other | 1,316.5 | 1,316.5 | — | — | — | ||||||||||||
Total Commercial | $ | 21,112.8 | $ | 10,876.3 | $ | 9,325.9 | $ | 910.4 | $ | 0.2 | |||||||
Personal | |||||||||||||||||
Private Client | $ | 13,724.0 | $ | 9,547.7 | $ | 4,024.4 | $ | 151.7 | $ | 0.2 | |||||||
Residential Real Estate | 5,629.6 | 223.8 | 745.3 | 1,556.8 | 3,103.7 | ||||||||||||
Non-U.S. | 500.0 | 316.6 | 127.2 | 30.2 | 26.0 | ||||||||||||
Other | 215.2 | 215.2 | — | — | — | ||||||||||||
Total Personal | $ | 20,068.8 | $ | 10,303.3 | $ | 4,896.9 | $ | 1,738.7 | $ | 3,129.9 | |||||||
Total Variable Rate | $ | 41,181.6 | $ | 21,179.6 | $ | 14,222.8 | $ | 2,649.1 | $ | 3,130.1 | |||||||
Total Loans and Leases | $ | 42,893.3 | $ | 21,523.2 | $ | 15,100.1 | $ | 3,110.3 | $ | 3,159.7 |
60 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
($ In Millions) | DECEMBER 31, 2022 | % OF 2022 NONACCRUAL LOANS AND LEASES TO TOTAL NONACCRUAL LOANS AND LEASES | DECEMBER 31, 2021 | % OF 2021 NONACCRUAL LOANS AND LEASES TO TOTAL NONACCRUAL LOANS AND LEASES | ||||||||||
Nonaccrual Loans and Leases | ||||||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | $ | 17.4 | 38 | % | $ | 19.5 | 16 | % | ||||||
Commercial Real Estate | 10.2 | 22 | % | 66.6 | 54 | % | ||||||||
Total Commercial | $ | 27.6 | 60 | % | $ | 86.1 | 70 | % | ||||||
Personal | ||||||||||||||
Residential Real Estate | $ | 18.3 | 40 | % | $ | 36.2 | 30 | % | ||||||
Private Client | — | — | % | — | — | |||||||||
Total Personal | $ | 18.3 | 40 | % | $ | 36.2 | 30 | % | ||||||
Total Nonaccrual Loans and Leases | 45.9 | 122.3 | ||||||||||||
Other Real Estate Owned | — | 3.0 | ||||||||||||
Total Nonaccrual Assets | $ | 45.9 | $ | 125.3 | ||||||||||
90 Day Past Due Loans Still Accruing | $ | 54.2 | $ | 28.3 | ||||||||||
Nonaccrual Loans and Leases to Total Loans and Leases | 0.11 | % | 0.30 | % | ||||||||||
Allowance for Credit Losses Assigned to Loans and Leases to Nonaccrual Loans and Leases | 3.1 | x | 1.1x |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 61 |
($ in Millions) | 2022 | 2021 | 2020 | ||||||||
Net Recoveries (Charge-Offs) to Average Loans and Leases | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | — | % | 0.01 | % | 0.02 | % | |||||
Commercial Real Estate | 0.05 | (0.01) | (0.18) | ||||||||
Lease Financing, net(1) | (61.3) | — | — | ||||||||
Total Commercial | (0.02) | — | (0.03) | ||||||||
Personal | |||||||||||
Private Client | — | 0.01 | — | ||||||||
Residential Real Estate | 0.11 | 0.07 | 0.02 | ||||||||
Total Personal | 0.03 | 0.03 | — | ||||||||
Total Net Recoveries (Charge-Offs) to Select Average Loans and Leases | 0.01 | % | 0.02 | % | (0.01) | % | |||||
Net Recoveries (Charge-Offs) | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | $ | 0.1 | $ | 0.9 | $ | 1.8 | |||||
Commercial Real Estate | 2.2 | (0.3) | (5.7) | ||||||||
Lease Financing, net | (4.9) | — | — | ||||||||
Total Commercial | (2.6) | 0.6 | (3.9) | ||||||||
Personal | |||||||||||
Private Client | — | 1.3 | (0.5) | ||||||||
Residential Real Estate | 6.8 | 4.4 | 1.2 | ||||||||
Total Personal | 6.8 | 5.7 | 0.7 | ||||||||
Total Net Recoveries (Charge-Offs) | $ | 4.2 | $ | 6.3 | $ | (3.2) | |||||
Average Loans and Leases | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | $ | 12,258.9 | $ | 10,428.6 | $ | 10,347.1 | |||||
Commercial Real Estate | 4,432.2 | 3,977.0 | 3,253.8 | ||||||||
Lease Financing, net | 8.0 | 11.2 | 48.9 | ||||||||
Total Select Commercial | 16,699.1 | 14,416.8 | 13,649.8 | ||||||||
Personal | |||||||||||
Private Client | 13,877.9 | 13,686.7 | 11,452.9 | ||||||||
Residential Real Estate | 6,352.5 | 6,190.6 | 6,116.4 | ||||||||
Total Select Personal | 20,230.4 | 19,877.3 | 17,569.3 | ||||||||
Total Select Average Loans and Leases | $ | 36,929.5 | $ | 34,294.1 | $ | 31,219.1 |
62 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
($ In Millions) | ALLOWANCE AMOUNT | PERCENT OF LOANS TO TOTAL LOANS | ALLOWANCE AMOUNT | PERCENT OF LOANS TO TOTAL LOANS | ||||||||||
Evaluated on an Individual Basis | $ | 10.4 | — | % | $ | 10.1 | — | % | ||||||
Evaluated on a Collective Basis | ||||||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | 57.0 | 29 | 50.6 | 27 | ||||||||||
Commercial Real Estate | 76.5 | 11 | 68.2 | 11 | ||||||||||
Non-U.S. | 8.3 | 7 | 7.7 | 5 | ||||||||||
Lease Financing, net | — | — | 0.4 | — | ||||||||||
Other | 0.3 | 3 | — | 2 | ||||||||||
Total Commercial | 142.1 | 50 | 126.9 | 45 | ||||||||||
Personal | ||||||||||||||
Private Client | 11.2 | 33 | 11.1 | 38 | ||||||||||
Residential Real Estate | 18.0 | 15 | 23.3 | 16 | ||||||||||
Non-U.S. | 1.1 | 1 | 1.1 | 1 | ||||||||||
Other | — | 1 | — | — | ||||||||||
Total Personal | 30.3 | 50 | 35.5 | 55 | ||||||||||
Total Allowance Evaluated on a Collective Basis | $ | 172.4 | $ | 162.4 | ||||||||||
Total Allowance for Credit Losses | $ | 182.8 | $ | 172.5 | ||||||||||
Allowance Assigned to: | ||||||||||||||
Loans and Leases | $ | 144.3 | $ | 138.4 | ||||||||||
Undrawn Commitments and Standby Letters of Credit | 38.5 | 34.1 | ||||||||||||
Total Allowance for Credit Losses | $ | 182.8 | $ | 172.5 | ||||||||||
Allowance Assigned to Loans and Leases to Total Loans and Leases | 0.34 | % | 0.34 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 63 |
DECEMBER 31, 2022 | |||||||||||
U.S. OFFICE | NON-U.S. OFFICES | ||||||||||
(In Millions) | CERTIFICATES OF DEPOSIT | OTHER TIME | TOTAL | ||||||||
3 Months or Less | $ | 572.8 | $ | 1,979.9 | $ | 2,552.7 | |||||
Over 3 Months through 6 Months | 363.8 | 5.9 | 369.7 | ||||||||
Over 6 Months through 12 Months | 664.0 | 38.4 | 702.4 | ||||||||
Over 12 Months | 97.0 | — | 97.0 | ||||||||
Total | $ | 1,697.6 | $ | 2,024.2 | $ | 3,721.8 |
64 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
($ In Millions) | 2022 | 2021 | ||||||
Total Assets | $ | 26,904.3 | $ | 29,902.8 | ||||
Time Deposits with Banks | 2,082.2 | 3,619.3 | ||||||
Loans | 2,562.7 | 1,496.1 | ||||||
Non-U.S. Investments | 16,002.1 | 18,252.5 | ||||||
Total Liabilities | 77,481.6 | 84,230.9 | ||||||
Deposits | 75,808.6 | 83,001.7 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 65 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 2,392.4 | $ | 1,356.0 | $ | 1,896.8 | |||||
Investing activities | 25,929.8 | (18,602.6) | (29,923.0) | ||||||||
Financing activities | (26,437.4) | 16,073.5 | 27,871.9 | ||||||||
Effect of Foreign Currency Exchange Rates on Cash | (287.4) | (159.6) | 84.6 | ||||||||
Change in Cash and Due from Banks | $ | 1,597.4 | $ | (1,332.7) | $ | (69.7) |
66 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
($ In Millions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||||||||
STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | |||||||||||
Common Equity Tier 1 Capital | ||||||||||||||
Common Stockholders’ Equity | $ | 10,374.6 | $ | 10,374.6 | $ | 11,131.9 | $ | 11,131.9 | ||||||
Goodwill and Other Intangible Assets, net of Deferred Tax Liability | (719.7) | (719.7) | (751.3) | (751.3) | ||||||||||
Other | (115.2) | (115.2) | (103.5) | (103.5) | ||||||||||
Total Common Equity Tier 1 Capital | 9,539.7 | 9,539.7 | 10,277.1 | 10,277.1 | ||||||||||
Additional Tier 1 Capital | ||||||||||||||
Preferred Stock | 884.9 | 884.9 | 884.9 | 884.9 | ||||||||||
Other | (27.2) | (27.2) | (19.8) | (19.8) | ||||||||||
Total Additional Tier 1 Capital | 857.7 | 857.7 | 865.1 | 865.1 | ||||||||||
Total Tier 1 Capital | 10,397.4 | 10,397.4 | 11,142.2 | 11,142.2 | ||||||||||
Tier 2 Capital | ||||||||||||||
Qualifying Allowance for Credit Losses | 199.6 | — | 184.8 | — | ||||||||||
Qualifying Subordinated Debt | 1,648.5 | 1,648.5 | 799.8 | 799.8 | ||||||||||
Total Tier 2 Capital | 1,848.1 | 1,648.5 | 984.6 | 799.8 | ||||||||||
Total Risk-Based Capital | $ | 12,245.5 | $ | 12,045.9 | $ | 12,126.8 | $ | 11,942.0 | ||||||
Risk-Weighted Assets(1) | $ | 88,107.7 | $ | 83,181.2 | $ | 86,292.6 | $ | 77,807.2 | ||||||
Total Assets – End of Period (EOP) | 155,036.7 | 155,036.7 | 183,889.8 | 183,889.8 | ||||||||||
Adjusted Average Fourth Quarter Assets(2) | 146,883.8 | 146,883.8 | 160,506.3 | 160,506.3 | ||||||||||
Total Loans and Leases – EOP | 42,893.3 | 42,893.3 | 40,480.6 | 40,480.6 | ||||||||||
Common Stockholders’ Equity to: | ||||||||||||||
Total Loans and Leases – EOP | 24.19 | % | 24.19 | % | 27.50 | % | 27.50 | % | ||||||
Total Assets – EOP | 6.69 | 6.69 | 6.05 | 6.05 | ||||||||||
Risk-Based Capital Ratios | ||||||||||||||
Common Equity Tier 1 Capital | 10.8 | % | 11.5 | % | 11.9 | % | 13.2 | % | ||||||
Tier 1 Capital | 11.8 | 12.5 | 12.9 | 14.3 | ||||||||||
Total Capital (Tier 1 and Tier 2) | 13.9 | 14.5 | 14.1 | 15.3 | ||||||||||
Tier 1 Leverage | 7.1 | 7.1 | 6.9 | 6.9 | ||||||||||
Supplementary Leverage | N/A | 7.9 | N/A | 8.2 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 67 |
68 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 69 |
($ In Millions) | 25 BASIS POINT INCREASE | 25 BASIS POINT DECREASE | ||||||
Increase (Decrease) in 2023 Pension Expense | ||||||||
Discount Rate Change | $ | (1.3) | $ | 2.8 | ||||
Compensation Level Change | 2.0 | (2.0) | ||||||
Rate of Return on Plan Assets Change | (3.5) | 3.5 | ||||||
Increase (Decrease) in 2022 Projected Benefit Obligation | ||||||||
Discount Rate Change | (30.4) | 31.9 | ||||||
Compensation Level Change | 7.7 | (7.6) |
70 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 71 |
72 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
Northern Trust Corporation Board of Directors | |||||||||||
Audit Committee | Business Risk Committee | Capital Governance Committee | Human Capital and Compensation Committee | ||||||||
–Cybersecurity Risk Oversight Subcommittee |
Global Enterprise Risk Committee (GERC) | |||||||||||||||||||||||
Credit Risk Committee | Market & Liquidity Risk Committee | Operational Risk Committee | Fiduciary Risk Committee | Compliance & Ethics Oversight Committee | Information Technology Risk Committee | Model Risk Oversight Committee | Workforce Risk Committee |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 73 |
74 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 75 |
76 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||||||||||||||||||||||||
COMMITMENTS | COMMITMENTS | ||||||||||||||||||||||||||||
($ In Millions) | TOTAL | ONE YEAR AND LESS | OVER ONE YEAR | OUTSTANDING LOANS | TOTAL | ONE YEAR AND LESS | OVER ONE YEAR | OUTSTANDING LOANS | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial and Institutional | |||||||||||||||||||||||||||||
Finance and Insurance | $ | 6,694.8 | $ | 3,981.3 | $ | 2,713.5 | $ | 5,044.9 | $ | 4,778.8 | $ | 2,769.7 | $ | 2,009.1 | $ | 4,950.5 | |||||||||||||
Holding Companies | — | — | — | 45.0 | — | — | — | 34.6 | |||||||||||||||||||||
Manufacturing | 6,063.3 | 764.2 | 5,299.1 | 1,855.0 | 6,721.6 | 786.2 | 5,935.4 | 1,602.2 | |||||||||||||||||||||
Mining | 499.0 | 36.8 | 462.2 | 60.7 | 758.0 | 236.0 | 522.0 | 94.1 | |||||||||||||||||||||
Public Administration | 50.0 | 50.0 | — | 13.3 | 100.0 | 50.0 | 50.0 | 14.6 | |||||||||||||||||||||
Retail Trade | 1,158.2 | 369.0 | 789.2 | 203.7 | 812.7 | 207.3 | 605.4 | 235.5 | |||||||||||||||||||||
Services | 5,860.6 | 2,357.7 | 3,502.9 | 4,099.0 | 5,742.0 | 2,126.0 | 3,616.0 | 3,532.6 | |||||||||||||||||||||
Transportation and Warehousing | 243.9 | — | 243.9 | 251.8 | 279.6 | 1.5 | 278.1 | 262.8 | |||||||||||||||||||||
Utilities | 1,220.7 | 67.7 | 1,153.0 | 8.6 | 1,208.0 | 25.4 | 1,182.6 | 21.5 | |||||||||||||||||||||
Wholesale Trade | 741.4 | 118.8 | 622.6 | 484.7 | 797.7 | 171.5 | 626.2 | 396.4 | |||||||||||||||||||||
Other Commercial | 147.5 | 89.4 | 58.1 | 348.3 | 230.4 | 197.9 | 32.5 | 344.4 | |||||||||||||||||||||
Commercial and Institutional(1) | 22,679.4 | 7,834.9 | 14,844.5 | 12,415.0 | 21,428.8 | 6,571.5 | 14,857.3 | 11,489.2 | |||||||||||||||||||||
Commercial Real Estate | 449.3 | 124.4 | 324.9 | 4,773.0 | 357.9 | 61.8 | 296.1 | 4,326.3 | |||||||||||||||||||||
Non-U.S. | 2,137.6 | 1,572.5 | 565.1 | 3,131.1 | 1,514.4 | 1,096.1 | 418.3 | 1,990.2 | |||||||||||||||||||||
Lease Financing, net | — | — | — | — | — | — | — | 11.0 | |||||||||||||||||||||
Other | 91.4 | 91.4 | — | 1,316.5 | 97.2 | 97.2 | — | 670.7 | |||||||||||||||||||||
Total Commercial | 25,357.7 | 9,623.2 | 15,734.5 | 21,635.6 | 23,398.3 | 7,826.6 | 15,571.7 | 18,487.4 | |||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||
Private Client | 3,970.0 | 3,090.4 | 879.6 | 14,119.0 | 2,499.5 | 766.4 | 1,733.1 | 15,256.3 | |||||||||||||||||||||
Residential Real Estate | 783.4 | 125.6 | 657.8 | 6,413.5 | 665.9 | 118.4 | 547.5 | 6,319.9 | |||||||||||||||||||||
Non-U.S. | 849.5 | 800.0 | 49.5 | 510.0 | 858.5 | 855.6 | 2.9 | 381.8 | |||||||||||||||||||||
Other | — | — | — | 215.2 | — | — | — | 35.2 | |||||||||||||||||||||
Total Personal | 5,602.9 | 4,016.0 | 1,586.9 | 21,257.7 | 4,023.9 | 1,740.4 | 2,283.5 | 21,993.2 | |||||||||||||||||||||
Total | $ | 30,960.6 | $ | 13,639.2 | $ | 17,321.4 | $ | 42,893.3 | $ | 27,422.2 | $ | 9,567.0 | $ | 17,855.2 | $ | 40,480.6 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 77 |
78 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 79 |
80 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 81 |
82 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
CREDIT RATING | |||||||||||
STANDARD & POOR’S | MOODY’S | FITCH RATINGS | |||||||||
Northern Trust Corporation: | |||||||||||
Senior Debt | A+ | A2 | A+ | ||||||||
Subordinated Debt | A | A2 | A+ | ||||||||
Preferred Stock | BBB+ | Baa1 | BBB | ||||||||
Outlook | Stable | Stable | Stable | ||||||||
The Northern Trust Company: | |||||||||||
Short-Term Deposit | A-1+ | P-1 | F1+ | ||||||||
Long-Term Deposit/Debt | AA- | Aa2 | AA | ||||||||
Subordinated Debt | A+ | A2 | A+ | ||||||||
Outlook | Stable | Stable | Stable |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 83 |
84 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
INCREASE/(DECREASE) ESTIMATED IMPACT ON NEXT TWELVE MONTHS OF NET INTEREST INCOME | ||||||||
($ In Millions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||
INCREASE IN INTEREST RATES ABOVE MARKET IMPLIED FORWARD RATES | ||||||||
100 Basis Points | $ | 41 | $ | 302 | ||||
200 Basis Points | 80 | 514 | ||||||
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES | ||||||||
100 Basis Points | $ | (31) | $ | (229) | ||||
200 Basis Points | (64) | N/M |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 85 |
INCREASE/(DECREASE) ESTIMATED IMPACT ON MARKET VALUE OF EQUITY | ||||||||
($ In Millions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||
INCREASE IN INTEREST RATES ABOVE MARKET IMPLIED FORWARD RATES | ||||||||
100 Basis Points | $ | (472) | $ | 241 | ||||
200 Basis Points | (965) | (60) | ||||||
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES | ||||||||
100 Basis Points | $ | 596 | $ | (384) | ||||
200 Basis Points | 842 | N/M |
86 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
($ In Millions) | TOTAL VaR (FX AND IR DRIVERS) | FX VaR (FX DRIVERS ONLY) | IR VaR (IR DRIVERS ONLY) | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
High | $ | 0.2 | $ | 0.9 | $ | 0.2 | $ | 0.4 | $ | 0.3 | $ | 0.7 | ||||||||
Low | 0.1 | — | — | — | — | — | ||||||||||||||
Average | 0.1 | 0.2 | 0.1 | 0.1 | 0.1 | 0.2 | ||||||||||||||
As of December 31, | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 87 |
88 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 89 |
90 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Net Interest Income | |||||||||||
Interest Income - GAAP | $ | 2,877.7 | $ | 1,406.5 | $ | 1,643.5 | |||||
Add: FTE Adjustment | 45.6 | 35.6 | 34.4 | ||||||||
Interest Income (FTE) - Non-GAAP | $ | 2,923.3 | $ | 1,442.1 | $ | 1,677.9 | |||||
Net Interest Income - GAAP | $ | 1,887.2 | $ | 1,382.7 | $ | 1,443.2 | |||||
Add: FTE Adjustment | 45.6 | 35.6 | 34.4 | ||||||||
Net Interest Income (FTE) - Non-GAAP | $ | 1,932.8 | $ | 1,418.3 | $ | 1,477.6 | |||||
Net Interest Margin - GAAP | 1.36 | % | 0.96 | % | 1.16 | % | |||||
Net Interest Margin (FTE) - Non-GAAP | 1.39 | % | 0.99 | % | 1.19 | % | |||||
Total Revenue | |||||||||||
Total Revenue - GAAP | $ | 6,761.2 | $ | 6,464.5 | $ | 6,100.8 | |||||
Add: FTE Adjustment | 45.6 | 35.6 | 34.4 | ||||||||
Total Revenue (FTE) - Non-GAAP | $ | 6,806.8 | $ | 6,500.1 | $ | 6,135.2 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 91 |
92 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 93 |
94 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | ||||||||
(In Millions Except Share Information) | 2022 | 2021 | ||||||
ASSETS | ||||||||
Cash and Due from Banks | $ | 4,654.2 | $ | 3,056.8 | ||||
Federal Reserve and Other Central Bank Deposits | 40,030.4 | 64,582.2 | ||||||
Interest-Bearing Deposits with Banks | 1,941.1 | 1,949.4 | ||||||
Federal Funds Sold | 32.0 | — | ||||||
Securities Purchased under Agreements to Resell | 1,070.3 | 686.4 | ||||||
Debt Securities | ||||||||
Available for Sale (Amortized cost of $27,760.0 and $37,948.5) | 26,699.9 | 38,010.5 | ||||||
Held to Maturity (Fair value of $22,879.3 and $23,315.4) | 25,036.1 | 23,564.5 | ||||||
Trading Account | 95.2 | 0.3 | ||||||
Total Debt Securities | 51,831.2 | 61,575.3 | ||||||
Loans and Leases | ||||||||
Commercial | 21,635.6 | 18,487.4 | ||||||
Personal | 21,257.7 | 21,993.2 | ||||||
Total Loans and Leases (Net of unearned income of $9.0 and $10.4) | 42,893.3 | 40,480.6 | ||||||
Allowance for Credit Losses | (161.1) | (150.6) | ||||||
Buildings and Equipment | 500.5 | 488.7 | ||||||
Client Security Settlement Receivables | 1,698.3 | 1,941.2 | ||||||
Goodwill | 691.3 | 706.2 | ||||||
Other Assets | 9,855.2 | 8,573.6 | ||||||
Total Assets | $ | 155,036.7 | $ | 183,889.8 | ||||
LIABILITIES | ||||||||
Deposits | ||||||||
Demand and Other Noninterest-Bearing | $ | 16,582.7 | $ | 22,028.2 | ||||
Savings, Money Market and Other Interest-Bearing | 31,128.6 | 35,003.1 | ||||||
Savings Certificates and Other Time | 1,981.3 | 842.7 | ||||||
Non U.S. Offices — Noninterest-Bearing | 8,757.6 | 26,287.3 | ||||||
— Interest-Bearing | 65,481.9 | 75,767.1 | ||||||
Total Deposits | 123,932.1 | 159,928.4 | ||||||
Federal Funds Purchased | 1,896.9 | 0.2 | ||||||
Securities Sold Under Agreements to Repurchase | 567.2 | 531.9 | ||||||
Other Borrowings | 7,592.3 | 3,583.8 | ||||||
Senior Notes | 2,724.2 | 2,505.5 | ||||||
Long-Term Debt | 2,066.2 | 1,145.7 | ||||||
Other Liabilities | 4,998.3 | 4,177.5 | ||||||
Total Liabilities | 143,777.2 | 171,873.0 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares: | ||||||||
Series D, outstanding shares of 5,000 | 493.5 | 493.5 | ||||||
Series E, outstanding shares of 16,000 | 391.4 | 391.4 | ||||||
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares; Outstanding shares of 208,428,309 and 207,761,875 | 408.6 | 408.6 | ||||||
Additional Paid-In Capital | 983.5 | 939.3 | ||||||
Retained Earnings | 13,798.5 | 13,117.3 | ||||||
Accumulated Other Comprehensive Loss | (1,569.2) | (35.6) | ||||||
Treasury Stock (36,743,215 and 37,409,649 shares, at cost) | (3,246.8) | (3,297.7) | ||||||
Total Stockholders’ Equity | 11,259.5 | 12,016.8 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 155,036.7 | $ | 183,889.8 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 95 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions Except Share Information) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | |||||
Foreign Exchange Trading Income | 288.6 | 292.6 | 290.4 | ||||||||
Treasury Management Fees | 39.3 | 44.3 | 45.4 | ||||||||
Security Commissions and Trading Income | 136.2 | 140.2 | 133.2 | ||||||||
Other Operating Income | 191.3 | 243.9 | 194.0 | ||||||||
Investment Security Gains (Losses), net | (214.0) | (0.3) | (0.4) | ||||||||
Total Noninterest Income | 4,874.0 | 5,081.8 | 4,657.6 | ||||||||
Net Interest Income | |||||||||||
Interest Income | 2,877.7 | 1,406.5 | 1,643.5 | ||||||||
Interest Expense | 990.5 | 23.8 | 200.3 | ||||||||
Net Interest Income | 1,887.2 | 1,382.7 | 1,443.2 | ||||||||
Provision for Credit Losses | 12.0 | (81.5) | 125.0 | ||||||||
Net Interest Income after Provision for Credit Losses | 1,875.2 | 1,464.2 | 1,318.2 | ||||||||
Noninterest Expense | |||||||||||
Compensation | 2,248.0 | 2,011.0 | 1,947.1 | ||||||||
Employee Benefits | 437.4 | 431.4 | 387.7 | ||||||||
Outside Services | 880.3 | 849.4 | 763.1 | ||||||||
Equipment and Software | 838.8 | 736.3 | 673.5 | ||||||||
Occupancy | 219.1 | 208.7 | 230.1 | ||||||||
Other Operating Expense | 359.3 | 299.1 | 346.7 | ||||||||
Total Noninterest Expense | 4,982.9 | 4,535.9 | 4,348.2 | ||||||||
Income before Income Taxes | 1,766.3 | 2,010.1 | 1,627.6 | ||||||||
Provision for Income Taxes | 430.3 | 464.8 | 418.3 | ||||||||
NET INCOME | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Preferred Stock Dividends | 41.8 | 41.8 | 56.2 | ||||||||
Net Income Applicable to Common Stock | $ | 1,294.2 | $ | 1,503.5 | $ | 1,153.1 | |||||
PER COMMON SHARE | |||||||||||
Net Income – Basic | $ | 6.16 | $ | 7.16 | $ | 5.48 | |||||
– Diluted | 6.14 | 7.14 | 5.46 | ||||||||
Average Number of Common Shares Outstanding – Basic | 208,309,331 | 208,075,522 | 208,319,412 | ||||||||
– Diluted | 208,867,264 | 208,899,230 | 209,007,986 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | |||||||||||
Net Unrealized Gains (Losses) on Available for Sale Debt Securities | (1,474.7) | (534.7) | 527.8 | ||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | 3.6 | 0.8 | 0.5 | ||||||||
Net Foreign Currency Adjustments | 9.4 | 10.5 | 26.9 | ||||||||
Net Pension and Other Postretirement Benefit Adjustments | (71.9) | 59.8 | 67.5 | ||||||||
Other Comprehensive Income (Loss) | (1,533.6) | (463.6) | 622.7 | ||||||||
Comprehensive Income (Loss) | $ | (197.6) | $ | 1,081.7 | $ | 1,832.0 |
96 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
(In Millions Except Per Share Information) | PREFERRED STOCK | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK | TOTAL | ||||||||||||||||
Balance at January 1, 2020 | $ | 1,273.4 | $ | 408.6 | $ | 1,013.1 | $ | 11,646.6 | $ | (194.7) | $ | (3,066.1) | $ | 11,080.9 | |||||||||
Net Income | — | — | — | 1,209.3 | — | — | 1,209.3 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | 622.7 | — | 622.7 | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $2.80 per share | — | — | — | (592.0) | — | — | (592.0) | ||||||||||||||||
Preferred Stock | — | — | — | (44.7) | — | — | (44.7) | ||||||||||||||||
Redemption of Preferred Stock, Series C | (388.5) | — | — | (11.5) | — | — | (400.0) | ||||||||||||||||
Stock Awards and Options Exercised | — | — | (49.5) | — | — | 161.4 | 111.9 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (299.8) | (299.8) | ||||||||||||||||
Balance at December 31, 2020 | $ | 884.9 | $ | 408.6 | $ | 963.6 | $ | 12,207.7 | $ | 428.0 | $ | (3,204.5) | $ | 11,688.3 | |||||||||
Net Income | — | — | — | 1,545.3 | — | — | 1,545.3 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | (463.6) | — | (463.6) | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $2.80 per share | — | — | — | (593.9) | — | — | (593.9) | ||||||||||||||||
Preferred Stock | — | — | — | (41.8) | — | — | (41.8) | ||||||||||||||||
Stock Awards and Options Exercised | — | — | (24.3) | — | — | 174.4 | 150.1 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (267.6) | (267.6) | ||||||||||||||||
Balance at December 31, 2021 | $ | 884.9 | $ | 408.6 | $ | 939.3 | $ | 13,117.3 | $ | (35.6) | $ | (3,297.7) | $ | 12,016.8 | |||||||||
Net Income | — | — | — | 1,336.0 | — | — | 1,336.0 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | (1,533.6) | — | (1,533.6) | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $2.90 per share | — | — | — | (613.0) | — | — | (613.0) | ||||||||||||||||
Preferred Stock | — | — | — | (41.8) | — | — | (41.8) | ||||||||||||||||
Stock Awards and Options Exercised | — | — | 44.2 | — | — | 86.3 | 130.5 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (35.4) | (35.4) | ||||||||||||||||
Balance at December 31, 2022 | $ | 884.9 | $ | 408.6 | $ | 983.5 | $ | 13,798.5 | $ | (1,569.2) | $ | (3,246.8) | $ | 11,259.5 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 97 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||
Investment Security Gains (Losses), net | 1.1 | 0.3 | 0.4 | ||||||||
Amortization and Accretion of Securities and Unearned Income, net | 59.2 | 99.7 | 88.9 | ||||||||
Provision for Credit Losses | 12.0 | (81.5) | 125.0 | ||||||||
Depreciation and Amortization | 553.6 | 515.6 | 500.3 | ||||||||
Change in Accrued Income Taxes | 61.3 | 37.2 | 25.4 | ||||||||
Pension Plan Contributions | (24.3) | (11.2) | (15.6) | ||||||||
Deferred Income Tax Provision | (142.7) | 2.0 | 16.4 | ||||||||
Change in Receivables | 57.9 | (460.9) | 4.5 | ||||||||
Change in Interest Payable | 172.6 | (7.8) | (23.6) | ||||||||
Change in Collateral With Derivative Counterparties, net | 639.4 | (466.5) | (17.8) | ||||||||
Other Operating Activities, net | (333.7) | 183.8 | (16.4) | ||||||||
Net Cash Provided by Operating Activities | 2,392.4 | 1,356.0 | 1,896.8 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Change in Federal Funds Sold | (32.0) | — | 5.0 | ||||||||
Change in Securities Purchased under Agreements to Resell | (419.0) | 897.7 | (700.9) | ||||||||
Change in Interest-Bearing Deposits with Banks | (158.9) | 2,344.5 | 712.6 | ||||||||
Net Change in Federal Reserve and Other Central Bank Deposits | 23,483.8 | (9,970.4) | (19,845.2) | ||||||||
Purchases of Held to Maturity Debt Securities | (32,830.8) | (54,734.9) | (40,187.9) | ||||||||
Proceeds from Maturity and Redemption of Held to Maturity Debt Securities | 37,667.8 | 54,902.6 | 35,658.6 | ||||||||
Purchases of Available for Sale Debt Securities | (4,567.7) | (13,896.2) | (10,886.8) | ||||||||
Proceeds from Maturity and Redemption of Available for Sale Debt Securities | 6,513.0 | 10,079.0 | 8,748.2 | ||||||||
Change in Loans and Leases | (2,441.6) | (6,744.7) | (2,316.7) | ||||||||
Purchases of Buildings and Equipment | (128.6) | (95.5) | (135.8) | ||||||||
Purchases and Development of Computer Software | (594.9) | (419.6) | (424.6) | ||||||||
Change in Client Security Settlement Receivables | 258.0 | (801.4) | (226.8) | ||||||||
Bank-Owned Life Insurance Policy Premiums | (500.0) | — | — | ||||||||
Other Investing Activities, net | (319.3) | (163.7) | (322.7) | ||||||||
Net Cash Provided by (Used in) Investing Activities | 25,929.8 | (18,602.6) | (29,923.0) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Change in Deposits | (32,996.9) | 17,885.5 | 32,137.9 | ||||||||
Change in Federal Funds Purchased | 1,896.7 | (260.0) | (292.7) | ||||||||
Change in Securities Sold under Agreements to Repurchase | 35.3 | 492.1 | (450.0) | ||||||||
Change in Short-Term Other Borrowings | 3,966.9 | (426.5) | (2,698.3) | ||||||||
Redemption of Preferred Stock - Series C | — | — | (400.0) | ||||||||
Proceeds from Senior Notes and Long-Term Debt | 1,988.8 | — | 993.2 | ||||||||
Repayments of Senior Notes | (500.0) | (500.0) | (508.6) | ||||||||
Repayment of Floating Rate Capital Debt | — | (278.8) | — | ||||||||
Treasury Stock Purchased | (35.4) | (267.6) | (299.8) | ||||||||
Net Proceeds from Stock Options | 3.9 | 53.8 | 19.5 | ||||||||
Cash Dividends Paid on Common Stock | (750.2) | (583.3) | (584.6) | ||||||||
Cash Dividends Paid on Preferred Stock | (46.5) | (41.8) | (45.9) | ||||||||
Other Financing Activities, net | — | 0.1 | 1.2 | ||||||||
Net Cash (Used in) Provided by Financing Activities | (26,437.4) | 16,073.5 | 27,871.9 | ||||||||
Effect of Foreign Currency Exchange Rates on Cash | (287.4) | (159.6) | 84.6 | ||||||||
Change in Cash and Due from Banks | 1,597.4 | (1,332.7) | (69.7) | ||||||||
Cash and Due from Banks at Beginning of Period | 3,056.8 | 4,389.5 | 4,459.2 | ||||||||
Cash and Due from Banks at End of Period | $ | 4,654.2 | $ | 3,056.8 | $ | 4,389.5 | |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||
Interest Paid | $ | 822.4 | $ | 30.8 | $ | 226.8 | |||||
Income Taxes Paid | 459.9 | 371.0 | 327.7 | ||||||||
Transfers from Loans to OREO | — | 12.9 | 0.2 | ||||||||
Transfers from Available for Sale Debt Securities to Held to Maturity Debt Securities | 6,623.3 | 6,864.1 | 301.5 | ||||||||
98 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 99 |
100 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 101 |
102 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 103 |
104 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 105 |
106 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 107 |
DECEMBER 31, 2022 | |||||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUTS | INPUT VALUES | WEIGHTED-AVERAGE INPUT VALUES(1) | ||||||||||||||||||
Swaps Related to Sale of Certain Visa Class B Common Shares | $34.8 million | Discounted Cash Flow | Conversion Rate | 1.60x | 1.60x | ||||||||||||||||||
Visa Class A Appreciation | 8.53% | 8.53% | |||||||||||||||||||||
Expected Duration | 12 | - | 33 months | 20 months |
DECEMBER 31, 2021 | |||||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE | VALUATION TECHNIQUE | UNOBSERVABLE INPUTS | INPUT VALUES | WEIGHTED-AVERAGE INPUT VALUES(1) | ||||||||||||||||||
Swaps Related to Sale of Certain Visa Class B Common Shares | $37.5 million | Discounted Cash Flow | Conversion Rate | 1.62x | 1.62x | ||||||||||||||||||
Visa Class A Appreciation | 10.10% | 10.10% | |||||||||||||||||||||
Expected Duration | 12 | - | 33 months | 20 months |
DECEMBER 31, 2022 | ||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ LIABILITIES AT FAIR VALUE | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. Government | $ | 2,747.4 | $ | — | $ | — | $ | — | $ | 2,747.4 | ||||||||||
Obligations of States and Political Subdivisions | — | 787.6 | — | — | 787.6 | |||||||||||||||
Government Sponsored Agency | — | 11,545.2 | — | — | 11,545.2 | |||||||||||||||
Non-U.S. Government | — | 360.0 | — | — | 360.0 | |||||||||||||||
Corporate Debt | — | 1,747.6 | — | — | 1,747.6 | |||||||||||||||
Covered Bonds | — | 388.7 | — | — | 388.7 | |||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | — | 2,479.4 | — | — | 2,479.4 | |||||||||||||||
Other Asset-Backed | — | 5,256.2 | — | — | 5,256.2 | |||||||||||||||
Commercial Mortgage-Backed | — | 1,387.8 | — | — | 1,387.8 | |||||||||||||||
Total Available for Sale | 2,747.4 | 23,952.5 | — | — | 26,699.9 | |||||||||||||||
Trading Account | 95.0 | 0.2 | — | — | 95.2 | |||||||||||||||
Total Available for Sale and Trading Debt Securities | 2,842.4 | 23,952.7 | — | — | 26,795.1 | |||||||||||||||
Other Assets | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
Foreign Exchange Contracts | — | 3,510.1 | — | (2,666.4) | 843.7 | |||||||||||||||
Interest Rate Contracts | — | 222.0 | — | (144.3) | 77.7 | |||||||||||||||
Other Financial Derivatives(1) | — | 0.3 | — | — | 0.3 | |||||||||||||||
— | 3,732.4 | — | (2,810.7) | 921.7 | ||||||||||||||||
Other Liabilities | ||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||
Foreign Exchange Contracts | — | 3,187.5 | — | (1,826.7) | 1,360.8 | |||||||||||||||
Interest Rate Contracts | — | 431.8 | — | (5.9) | 425.9 | |||||||||||||||
Other Financial Derivatives(2) | — | — | 34.8 | (33.3) | 1.5 | |||||||||||||||
$ | — | $ | 3,619.3 | $ | 34.8 | $ | (1,865.9) | $ | 1,788.2 |
108 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2021 | ||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING | ASSETS/ LIABILITIES AT FAIR VALUE | |||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. Government | $ | 2,426.1 | $ | — | $ | — | $ | — | $ | 2,426.1 | ||||||||||
Obligations of States and Political Subdivisions | — | 3,876.1 | — | — | 3,876.1 | |||||||||||||||
Government Sponsored Agency | — | 18,075.6 | — | — | 18,075.6 | |||||||||||||||
Non-U.S. Government | — | 374.0 | — | — | 374.0 | |||||||||||||||
Corporate Debt | — | 2,341.7 | — | — | 2,341.7 | |||||||||||||||
Covered Bonds | — | 505.6 | — | — | 505.6 | |||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | — | 3,045.1 | — | — | 3,045.1 | |||||||||||||||
Other Asset-Backed | — | 5,941.6 | — | — | 5,941.6 | |||||||||||||||
Commercial Mortgage Backed | — | 1,424.7 | — | — | 1,424.7 | |||||||||||||||
Total Available for Sale | 2,426.1 | 35,584.4 | — | — | 38,010.5 | |||||||||||||||
Trading Account | — | 0.3 | — | — | 0.3 | |||||||||||||||
Total Available for Sale and Trading Debt Securities | 2,426.1 | 35,584.7 | — | — | 38,010.8 | |||||||||||||||
Other Assets | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
Foreign Exchange Contracts | — | 2,207.4 | — | (1,530.7) | 676.7 | |||||||||||||||
Interest Rate Contracts | — | 140.0 | — | (3.1) | 136.9 | |||||||||||||||
— | 2,347.4 | — | (1,533.8) | 813.6 | ||||||||||||||||
Other Liabilities | ||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||
Foreign Exchange Contracts | — | 1,998.8 | — | (1,234.5) | 764.3 | |||||||||||||||
Interest Rate Contracts | — | 98.9 | — | (48.1) | 50.8 | |||||||||||||||
Other Financial Derivative(1) | — | — | 37.5 | (0.9) | 36.6 | |||||||||||||||
$ | — | $ | 2,097.7 | $ | 37.5 | $ | (1,283.5) | $ | 851.7 |
LEVEL 3 LIABILITIES | SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES | |||||||
(In Millions) | 2022 | 2021 | ||||||
Fair Value at January 1 | $ | 37.5 | $ | 35.3 | ||||
Total (Gains) Losses: | ||||||||
Included in Earnings(1) | 22.6 | 21.3 | ||||||
Purchases, Issues, Sales, and Settlements | ||||||||
Settlements | (25.3) | (19.1) | ||||||
Fair Value at December 31 | $ | 34.8 | $ | 37.5 | ||||
Unrealized Losses (Gains) Included in Earnings Related to Financial Instruments Held at December 31(1) | $ | 16.6 | $ | 22.0 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 109 |
DECEMBER 31, 2022 | |||||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE(1) | VALUATION TECHNIQUE | UNOBSERVABLE INPUTS | INPUT VALUES | WEIGHTED-AVERAGE INPUT VALUES | ||||||||||||||||||
Loans | $6.6 million | Market Approach | Discount factor applied to real estate collateral-dependent loans to reflect realizable value | 15.0% | – | 20.0% | 17.2% |
DECEMBER 31, 2021 | |||||||||||||||||||||||
FINANCIAL INSTRUMENT | FAIR VALUE(1) | VALUATION TECHNIQUE | UNOBSERVABLE INPUTS | INPUT VALUES | WEIGHTED-AVERAGE INPUT VALUES | ||||||||||||||||||
Loans | $15.0 million | Market Approach | Discount factor applied to real estate collateral-dependent loans to reflect realizable value | 15.0% | – | 20.0% | 15.4% |
110 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | |||||||||||||||||
ESTIMATED FAIR VALUE | |||||||||||||||||
(In Millions) | BOOK VALUE | TOTAL ESTIMATED FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
Cash and Due from Banks | $ | 4,654.2 | $ | 4,654.2 | $ | 4,654.2 | $ | — | $ | — | |||||||
Federal Reserve and Other Central Bank Deposits | 40,030.4 | 40,030.4 | — | 40,030.4 | — | ||||||||||||
Interest-Bearing Deposits with Banks | 1,941.1 | 1,941.1 | — | 1,941.1 | — | ||||||||||||
Federal Funds Sold | 32.0 | 32.0 | — | 32.0 | — | ||||||||||||
Securities Purchased under Agreements to Resell | 1,070.3 | 1,070.3 | — | 1,070.3 | — | ||||||||||||
Debt Securities - Held to Maturity | 25,036.1 | 22,879.3 | 50.0 | 22,829.3 | — | ||||||||||||
Loans (excluding Leases) | |||||||||||||||||
Held for Investment | 42,749.0 | 42,636.5 | — | — | 42,636.5 | ||||||||||||
Other Assets | 1,476.9 | 1,460.4 | 94.7 | 1,365.7 | — | ||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||
Deposits | |||||||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | $ | 56,468.9 | $ | 56,468.9 | $ | 56,468.9 | $ | — | $ | — | |||||||
Savings Certificates and Other Time | 1,981.3 | 1,976.1 | — | 1,976.1 | — | ||||||||||||
Non U.S. Offices Interest-Bearing | 65,481.9 | 65,481.9 | — | 65,481.9 | — | ||||||||||||
Federal Funds Purchased | 1,896.9 | 1,896.9 | — | 1,896.9 | — | ||||||||||||
Securities Sold Under Agreements to Repurchase | 567.2 | 567.2 | — | 567.2 | — | ||||||||||||
Other Borrowings | 7,592.3 | 7,592.8 | — | 7,592.8 | — | ||||||||||||
Senior Notes | 2,724.2 | 2,729.8 | — | 2,729.8 | — | ||||||||||||
Long-Term Debt | 2,066.2 | 2,110.7 | — | 2,110.7 | — | ||||||||||||
Unfunded Commitments | 218.9 | 218.9 | — | 218.9 | — | ||||||||||||
Other Liabilities | 73.2 | 73.2 | — | — | 73.2 |
DECEMBER 31, 2021 | |||||||||||||||||
ESTIMATED FAIR VALUE | |||||||||||||||||
(In Millions) | BOOK VALUE | TOTAL ESTIMATED FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
FINANCIAL ASSETS | |||||||||||||||||
Cash and Due from Banks | $ | 3,056.8 | $ | 3,056.8 | $ | 3,056.8 | $ | — | $ | — | |||||||
Federal Reserve and Other Central Bank Deposits | 64,582.2 | 64,582.2 | — | 64,582.2 | — | ||||||||||||
Interest-Bearing Deposits with Banks | 1,949.4 | 1,949.4 | — | 1,949.4 | — | ||||||||||||
Securities Purchased under Agreements to Resell | 686.4 | 686.4 | — | 686.4 | — | ||||||||||||
Debt Securities - Held to Maturity | 23,564.5 | 23,315.4 | 47.0 | 23,268.4 | — | ||||||||||||
Loans (excluding Leases) | |||||||||||||||||
Held for Investment | 40,319.3 | 40,208.2 | — | — | 40,208.2 | ||||||||||||
Held for Sale | 12.3 | 24.5 | — | 24.5 | — | ||||||||||||
Other Assets | 1,275.3 | 1,279.8 | 119.1 | 1,160.7 | — | ||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||
Deposits | |||||||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | $ | 83,318.6 | $ | 83,318.6 | $ | 83,318.6 | $ | — | $ | — | |||||||
Savings Certificates and Other Time | 842.7 | 843.8 | — | 843.8 | — | ||||||||||||
Non U.S. Offices Interest-Bearing | 75,767.1 | 75,767.1 | — | 75,767.1 | — | ||||||||||||
Federal Funds Purchased | 0.2 | 0.2 | — | 0.2 | — | ||||||||||||
Securities Sold Under Agreements to Repurchase | 531.9 | 531.9 | — | 531.9 | — | ||||||||||||
Other Borrowings | 3,583.8 | 3,583.9 | — | 3,583.9 | — | ||||||||||||
Senior Notes | 2,505.5 | 2,591.4 | — | 2,591.4 | — | ||||||||||||
Long-Term Debt | 1,145.7 | 1,189.4 | — | 1,189.4 | — | ||||||||||||
Unfunded Commitments | 289.3 | 289.3 | — | 289.3 | — | ||||||||||||
Other Liabilities | 75.5 | 75.5 | — | — | 75.5 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 111 |
DECEMBER 31, 2022 | ||||||||||||||
(In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | ||||||||||
U.S. Government | $ | 2,837.7 | $ | 2.5 | $ | 92.8 | $ | 2,747.4 | ||||||
Obligations of States and Political Subdivisions | 817.8 | — | 30.2 | 787.6 | ||||||||||
Government Sponsored Agency | 11,892.5 | 4.3 | 351.6 | 11,545.2 | ||||||||||
Non-U.S. Government | 387.6 | — | 27.6 | 360.0 | ||||||||||
Corporate Debt | 1,774.3 | 0.2 | 26.9 | 1,747.6 | ||||||||||
Covered Bonds | 403.1 | 0.3 | 14.7 | 388.7 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,645.8 | 0.3 | 166.7 | 2,479.4 | ||||||||||
Other Asset-Backed | 5,544.3 | — | 288.1 | 5,256.2 | ||||||||||
Commercial Mortgage-Backed | 1,456.9 | 0.1 | 69.2 | 1,387.8 | ||||||||||
Total | $ | 27,760.0 | $ | 7.7 | $ | 1,067.8 | $ | 26,699.9 |
DECEMBER 31, 2021 | ||||||||||||||
(In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | ||||||||||
U.S. Government | $ | 2,406.2 | $ | 29.3 | $ | 9.4 | $ | 2,426.1 | ||||||
Obligations of States and Political Subdivisions | 3,841.0 | 73.7 | 38.6 | 3,876.1 | ||||||||||
Government Sponsored Agency | 18,092.1 | 93.7 | 110.2 | 18,075.6 | ||||||||||
Non-U.S. Government | 383.4 | 0.1 | 9.5 | 374.0 | ||||||||||
Corporate Debt | 2,319.8 | 31.6 | 9.7 | 2,341.7 | ||||||||||
Covered Bonds | 502.6 | 3.9 | 0.9 | 505.6 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 3,052.4 | 28.1 | 35.4 | 3,045.1 | ||||||||||
Other Asset-Backed | 5,962.0 | 11.3 | 31.7 | 5,941.6 | ||||||||||
Commercial Mortgage-Backed | 1,389.0 | 38.9 | 3.2 | 1,424.7 | ||||||||||
Total | $ | 37,948.5 | $ | 310.6 | $ | 248.6 | $ | 38,010.5 |
DECEMBER 31, 2022 | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO TEN YEARS | OVER TEN YEARS | TOTAL | |||||||||||||||||||||||||||
(In Millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
U.S. Government | $ | 1,576.6 | $ | 1,574.5 | $ | 1,261.1 | $ | 1,172.9 | $ | — | $ | — | $ | — | $ | — | $ | 2,837.7 | $ | 2,747.4 | ||||||||||||
Obligations of States and Political Subdivisions | — | — | 105.5 | 105.5 | 675.4 | 646.5 | 36.9 | 35.6 | 817.8 | 787.6 | ||||||||||||||||||||||
Government Sponsored Agency | 2,452.0 | 2,404.0 | 5,602.6 | 5,441.7 | 3,060.2 | 2,962.5 | 777.7 | 737.0 | 11,892.5 | 11,545.2 | ||||||||||||||||||||||
Non-U.S. Government | 101.3 | 101.1 | 286.3 | 258.9 | — | — | — | — | 387.6 | 360.0 | ||||||||||||||||||||||
Corporate Debt | 555.8 | 551.8 | 1,199.3 | 1,180.3 | 18.3 | 14.8 | 0.9 | 0.7 | 1,774.3 | 1,747.6 | ||||||||||||||||||||||
Covered Bonds | 159.5 | 159.2 | 243.6 | 229.5 | — | — | — | — | 403.1 | 388.7 | ||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 498.9 | 494.3 | 1,923.7 | 1,802.7 | 223.2 | 182.4 | — | — | 2,645.8 | 2,479.4 | ||||||||||||||||||||||
Other Asset-Backed | 893.7 | 848.6 | 3,244.1 | 3,035.5 | 1,250.2 | 1,219.7 | 156.3 | 152.4 | 5,544.3 | 5,256.2 | ||||||||||||||||||||||
Commercial Mortgage-Backed | 17.3 | 17.5 | 1,188.1 | 1,145.3 | 251.5 | 225.0 | — | — | 1,456.9 | 1,387.8 | ||||||||||||||||||||||
Total | $ | 6,255.1 | $ | 6,151.0 | $ | 15,054.3 | $ | 14,372.3 | $ | 5,478.8 | $ | 5,250.9 | $ | 971.8 | $ | 925.7 | $ | 27,760.0 | $ | 26,699.9 |
112 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
AS OF DECEMBER 31, 2022 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | |||||||||||||||||
(In Millions) | FAIR VALUE | UNREALIZED LOSSES | FAIR VALUE | UNREALIZED LOSSES | FAIR VALUE | UNREALIZED LOSSES | ||||||||||||||
U.S. Government | $ | 1,123.6 | $ | 64.1 | $ | 343.1 | $ | 28.7 | $ | 1,466.7 | $ | 92.8 | ||||||||
Obligations of States and Political Subdivisions | 160.0 | 16.8 | 120.6 | 13.4 | 280.6 | 30.2 | ||||||||||||||
Government Sponsored Agency | 7,631.4 | 262.1 | 2,737.7 | 89.5 | 10,369.1 | 351.6 | ||||||||||||||
Non-U.S. Government | 235.4 | 17.3 | 124.6 | 10.3 | 360.0 | 27.6 | ||||||||||||||
Corporate Debt | 427.3 | 14.6 | 130.3 | 2.8 | 557.6 | 17.4 | ||||||||||||||
Covered Bonds | 238.0 | 13.5 | 42.8 | 1.2 | 280.8 | 14.7 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 1,305.4 | 74.4 | 807.1 | 83.2 | 2,112.5 | 157.6 | ||||||||||||||
Other Asset-Backed | 3,873.4 | 217.5 | 1,247.6 | 70.6 | 5,121.0 | 288.1 | ||||||||||||||
Commercial Mortgage-Backed | 670.9 | 47.4 | 215.6 | 21.8 | 886.5 | 69.2 | ||||||||||||||
Total | $ | 15,665.4 | $ | 727.7 | $ | 5,769.4 | $ | 321.5 | $ | 21,434.8 | $ | 1,049.2 |
AS OF DECEMBER 31, 2021 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | |||||||||||||||||
(In Millions) | FAIR VALUE | UNREALIZED LOSSES | FAIR VALUE | UNREALIZED LOSSES | FAIR VALUE | UNREALIZED LOSSES | ||||||||||||||
U.S. Government | $ | 239.0 | $ | 9.4 | $ | — | $ | — | $ | 239.0 | $ | 9.4 | ||||||||
Obligations of States and Political Subdivisions | 1,699.5 | 37.4 | 31.6 | 1.2 | 1,731.1 | 38.6 | ||||||||||||||
Government Sponsored Agency | 8,207.3 | 90.2 | 1,821.4 | 20.0 | 10,028.7 | 110.2 | ||||||||||||||
Non-U.S. Government | 230.0 | 9.5 | — | — | 230.0 | 9.5 | ||||||||||||||
Corporate Debt | 693.7 | 9.7 | — | — | 693.7 | 9.7 | ||||||||||||||
Covered Bonds | 92.1 | 0.9 | — | — | 92.1 | 0.9 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 1,116.8 | 31.9 | 172.3 | 3.5 | 1,289.1 | 35.4 | ||||||||||||||
Other Asset-Backed | 3,815.5 | 31.4 | 11.7 | 0.3 | 3,827.2 | 31.7 | ||||||||||||||
Commercial Mortgage-Backed | 566.8 | 3.2 | — | — | 566.8 | 3.2 | ||||||||||||||
Total | $ | 16,660.7 | $ | 223.6 | $ | 2,037.0 | $ | 25.0 | $ | 18,697.7 | $ | 248.6 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 113 |
DECEMBER 31, 2022 | ||||||||||||||
(In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | ||||||||||
U.S. Government | $ | 50.0 | $ | — | $ | — | $ | 50.0 | ||||||
Obligations of States and Political Subdivisions | 2,565.3 | — | 149.8 | 2,415.5 | ||||||||||
Government Sponsored Agency | 9,407.7 | — | 1,076.0 | 8,331.7 | ||||||||||
Non-U.S. Government | 3,234.0 | 0.1 | 133.8 | 3,100.3 | ||||||||||
Corporate Debt | 713.3 | — | 45.4 | 667.9 | ||||||||||
Covered Bonds | 2,530.3 | 0.3 | 158.7 | 2,371.9 | ||||||||||
Certificates of Deposit | 35.9 | — | — | 35.9 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 5,703.3 | 1.0 | 436.1 | 5,268.2 | ||||||||||
Other Asset-Backed | 263.7 | — | 1.0 | 262.7 | ||||||||||
Other | 532.6 | — | 157.4 | 375.2 | ||||||||||
Total | $ | 25,036.1 | $ | 1.4 | $ | 2,158.2 | $ | 22,879.3 |
DECEMBER 31, 2021 | ||||||||||||||
(In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | ||||||||||
U.S. Government | $ | 47.0 | $ | — | $ | — | $ | 47.0 | ||||||
Obligations of States and Political Subdivisions | 0.8 | — | — | 0.8 | ||||||||||
Government Sponsored Agency | 5,927.6 | 1.1 | 106.1 | 5,822.6 | ||||||||||
Non-U.S. Government | 5,773.3 | 3.9 | 9.8 | 5,767.4 | ||||||||||
Corporate Debt | 901.8 | 2.5 | 6.5 | 897.8 | ||||||||||
Covered Bonds | 2,942.4 | 8.3 | 9.6 | 2,941.1 | ||||||||||
Certificates of Deposit | 674.7 | — | — | 674.7 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 6,098.0 | 14.3 | 80.0 | 6,032.3 | ||||||||||
Other Asset-Backed | 682.6 | 1.0 | — | 683.6 | ||||||||||
Other | 516.3 | 3.4 | 71.6 | 448.1 | ||||||||||
Total | $ | 23,564.5 | $ | 34.5 | $ | 283.6 | $ | 23,315.4 |
114 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO TEN YEARS | OVER TEN YEARS | TOTAL | |||||||||||||||||||||||||||
(In Millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
U.S. Government | $ | 50.0 | $ | 50.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50.0 | $ | 50.0 | ||||||||||||
Obligations of States and Political Subdivisions | 36.4 | 36.0 | 753.0 | 725.8 | 1,325.5 | 1,242.3 | 450.4 | 411.4 | 2,565.3 | 2,415.5 | ||||||||||||||||||||||
Government Sponsored Agency | 879.8 | 775.0 | 2,957.6 | 2,624.9 | 3,629.7 | 3,232.7 | 1,940.6 | 1,699.1 | 9,407.7 | 8,331.7 | ||||||||||||||||||||||
Non-U.S. Government | 1,742.3 | 1,741.8 | 1,344.7 | 1,233.0 | 147.0 | 125.5 | — | — | 3,234.0 | 3,100.3 | ||||||||||||||||||||||
Corporate Debt | 91.8 | 90.9 | 606.4 | 565.0 | 15.1 | 12.0 | — | — | 713.3 | 667.9 | ||||||||||||||||||||||
Covered Bonds | 410.5 | 408.6 | 1,699.8 | 1,607.6 | 420.0 | 355.7 | — | — | 2,530.3 | 2,371.9 | ||||||||||||||||||||||
Certificates of Deposit | 35.9 | 35.9 | — | — | — | — | — | — | 35.9 | 35.9 | ||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 1,019.0 | 1,006.8 | 4,554.6 | 4,154.1 | 129.7 | 107.3 | — | — | 5,703.3 | 5,268.2 | ||||||||||||||||||||||
Other Asset-Backed | 88.6 | 88.4 | 102.9 | 102.4 | 72.2 | 71.9 | — | — | 263.7 | 262.7 | ||||||||||||||||||||||
Other | 46.5 | 44.6 | 301.2 | 261.7 | 34.5 | 24.8 | 150.4 | 44.1 | 532.6 | 375.2 | ||||||||||||||||||||||
Total | $ | 4,400.8 | $ | 4,278.0 | $ | 12,320.2 | $ | 11,274.5 | $ | 5,773.7 | $ | 5,172.2 | $ | 2,541.4 | $ | 2,154.6 | $ | 25,036.1 | $ | 22,879.3 |
AS OF DECEMBER 31, 2022 | ||||||||||||||||||||
(In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 50.0 | $ | — | $ | — | $ | — | $ | — | $ | 50.0 | ||||||||
Obligations of States and Political Subdivisions | 926.8 | 1,638.5 | — | — | — | 2,565.3 | ||||||||||||||
Government Sponsored Agency | 9,407.7 | — | — | — | — | 9,407.7 | ||||||||||||||
Non-U.S. Government | 762.2 | 926.5 | 1,223.0 | 322.3 | — | 3,234.0 | ||||||||||||||
Corporate Debt | 2.1 | 305.7 | 405.5 | — | — | 713.3 | ||||||||||||||
Covered Bonds | 2,530.3 | — | — | — | — | 2,530.3 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 35.9 | 35.9 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,171.3 | 1,502.0 | 28.9 | 1.1 | — | 5,703.3 | ||||||||||||||
Other Asset-Backed | 263.7 | — | — | — | — | 263.7 | ||||||||||||||
Other | 65.8 | — | — | — | 466.8 | 532.6 | ||||||||||||||
Total | $ | 18,179.9 | $ | 4,372.7 | $ | 1,657.4 | $ | 323.4 | $ | 502.7 | $ | 25,036.1 | ||||||||
Percent of Total | 73 | % | 17 | % | 7 | % | 1 | % | 2 | % | 100 | % |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 115 |
AS OF DECEMBER 31, 2021 | ||||||||||||||||||||
(In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 47.0 | $ | — | $ | — | $ | — | $ | — | $ | 47.0 | ||||||||
Obligations of States and Political Subdivisions | — | 0.8 | — | — | — | 0.8 | ||||||||||||||
Government Sponsored Agency | 5,927.6 | — | — | — | — | 5,927.6 | ||||||||||||||
Non-U.S. Government | 398.0 | 942.6 | 4,088.8 | 343.9 | — | 5,773.3 | ||||||||||||||
Corporate Debt | 2.3 | 386.7 | 512.8 | — | — | 901.8 | ||||||||||||||
Covered Bonds | 2,942.4 | — | — | — | — | 2,942.4 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 674.7 | 674.7 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,207.6 | 1,858.0 | 31.3 | 1.1 | — | 6,098.0 | ||||||||||||||
Other Asset-Backed | 682.6 | — | — | — | — | 682.6 | ||||||||||||||
Other | — | — | — | — | 516.3 | 516.3 | ||||||||||||||
Total | $ | 14,207.5 | $ | 3,188.1 | $ | 4,632.9 | $ | 345.0 | $ | 1,191.0 | $ | 23,564.5 | ||||||||
Percent of Total | 60 | % | 14 | % | 20 | % | 1 | % | 5 | % | 100 | % |
DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Gross Realized Debt Securities Gains | $ | — | $ | 1.4 | $ | 3.4 | |||||
Gross Realized Debt Securities Losses | (214.0) | (1.7) | (3.8) | ||||||||
Investment Security Gains (Losses), net(1) | $ | (214.0) | $ | (0.3) | $ | (0.4) |
DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Obligations of States and Political Subdivisions | $ | (95.8) | $ | — | $ | — | |||||
Government Sponsored Agency | — | — | (1.8) | ||||||||
Corporate Debt(1) | (67.3) | (0.3) | (0.4) | ||||||||
Other Asset-Backed | (17.1) | — | (0.7) | ||||||||
Commercial Mortgage-Backed | (33.8) | — | 2.5 | ||||||||
Investment Security Gains (Losses), net(2) | $ | (214.0) | $ | (0.3) | $ | (0.4) |
116 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
($ In Millions) | 2022 | 2021 | ||||||
Balance at December 31 | $ | 1,070.3 | $ | 686.4 | ||||
Average Balance During the Year | 1,071.2 | 1,067.4 | ||||||
Average Interest Rate Earned During the Year | 9.68 | % | 0.33 | % | ||||
Maximum Month-End Balance During the Year | $ | 1,320.8 | $ | 1,819.1 |
($ In Millions) | 2022 | 2021 | ||||||
Balance at December 31 | $ | 567.2 | $ | 531.9 | ||||
Average Balance During the Year | 433.6 | 232.0 | ||||||
Average Interest Rate Paid During the Year | 20.94 | % | 0.07 | % | ||||
Maximum Month-End Balance During the Year | $ | 869.0 | $ | 892.6 |
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS | ||||||||||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||||||||||
($ In Millions) | OVERNIGHT AND CONTINUOUS | UP TO 30 DAYS | TOTAL | OVERNIGHT AND CONTINUOUS | UP TO 30 DAYS | TOTAL | ||||||||||||||
U.S. Treasury and Agency Securities | $ | 567.2 | $ | — | $ | 567.2 | $ | 32.4 | $ | 499.5 | $ | 531.9 | ||||||||
Total Borrowings | 567.2 | — | 567.2 | 32.4 | 499.5 | 531.9 | ||||||||||||||
Net Amount of Recognized Liabilities for Repurchase Agreements in Note 27 | 567.2 | — | 567.2 | 32.4 | 499.5 | 531.9 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 117 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Commercial | ||||||||
Commercial and Institutional(1) | $ | 12,415.0 | $ | 11,489.2 | ||||
Commercial Real Estate | 4,773.0 | 4,326.3 | ||||||
Non-U.S.(1) | 3,131.1 | 1,990.2 | ||||||
Lease Financing, net | — | 11.0 | ||||||
Other | 1,316.5 | 670.7 | ||||||
Total Commercial | 21,635.6 | 18,487.4 | ||||||
Personal | ||||||||
Private Client | 14,119.0 | 15,256.3 | ||||||
Residential Real Estate | 6,413.5 | 6,319.9 | ||||||
Non-U.S. | 510.0 | 381.8 | ||||||
Other | 215.2 | 35.2 | ||||||
Total Personal | 21,257.7 | 21,993.2 | ||||||
Total Loans and Leases | $ | 42,893.3 | $ | 40,480.6 |
118 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 119 |
DECEMBER 31, 2022 | TERM LOANS AND LEASES | REVOLVING LOANS | REVOLVING LOANS CONVERTED TO TERM LOANS | ||||||||||||||||||||||||||
(In Millions) | 2022 | 2021 | 2020 | 2019 | 2018 | PRIOR | TOTAL | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial and Institutional | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | $ | 753.3 | $ | 1,087.5 | $ | 209.8 | $ | 159.3 | $ | 45.9 | $ | 511.3 | $ | 6,032.8 | $ | 17.7 | $ | 8,817.6 | |||||||||||
4 to 5 Category | 744.1 | 740.6 | 300.8 | 191.1 | 151.4 | 174.7 | 1,102.3 | 32.9 | 3,437.9 | ||||||||||||||||||||
6 to 9 Category | 50.8 | 30.5 | — | 13.7 | — | — | 64.5 | — | 159.5 | ||||||||||||||||||||
Total Commercial and Institutional | 1,548.2 | 1,858.6 | 510.6 | 364.1 | 197.3 | 686.0 | 7,199.6 | 50.6 | 12,415.0 | ||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 318.7 | 227.4 | 123.6 | 123.5 | 39.8 | 39.1 | 113.4 | 3.0 | 988.5 | ||||||||||||||||||||
4 to 5 Category | 968.5 | 1,040.0 | 637.8 | 447.3 | 153.0 | 256.9 | 181.5 | 17.5 | 3,702.5 | ||||||||||||||||||||
6 to 9 Category | 7.7 | 22.7 | — | 49.1 | — | — | 2.5 | — | 82.0 | ||||||||||||||||||||
Total Commercial Real Estate | 1,294.9 | 1,290.1 | 761.4 | 619.9 | 192.8 | 296.0 | 297.4 | 20.5 | 4,773.0 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 991.9 | 46.2 | 109.6 | 14.8 | — | 6.5 | 1,158.3 | — | 2,327.3 | ||||||||||||||||||||
4 to 5 Category | 459.0 | — | — | — | — | 214.9 | 89.5 | 1.8 | 765.2 | ||||||||||||||||||||
6 to 9 Category | 0.1 | — | — | 23.1 | — | — | 15.4 | — | 38.6 | ||||||||||||||||||||
Total Non-U.S. | 1,451.0 | 46.2 | 109.6 | 37.9 | — | 221.4 | 1,263.2 | 1.8 | 3,131.1 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 993.9 | — | — | — | — | — | — | — | 993.9 | ||||||||||||||||||||
4 to 5 Category | 322.6 | — | — | — | — | — | — | — | 322.6 | ||||||||||||||||||||
Total Other | 1,316.5 | — | — | — | — | — | — | — | 1,316.5 | ||||||||||||||||||||
Total Commercial | 5,610.6 | 3,194.9 | 1,381.6 | 1,021.9 | 390.1 | 1,203.4 | 8,760.2 | 72.9 | 21,635.6 | ||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||
Private Client | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 395.5 | 159.9 | 50.5 | 313.6 | 13.4 | 18.5 | 5,352.5 | 28.2 | 6,332.1 | ||||||||||||||||||||
4 to 5 Category | 430.3 | 755.1 | 192.4 | 191.3 | 38.7 | 160.0 | 5,728.6 | 267.2 | 7,763.6 | ||||||||||||||||||||
6 to 9 Category | 0.9 | — | 0.1 | — | 18.6 | — | 3.7 | — | 23.3 | ||||||||||||||||||||
Total Private Client | 826.7 | 915.0 | 243.0 | 504.9 | 70.7 | 178.5 | 11,084.8 | 295.4 | 14,119.0 | ||||||||||||||||||||
Residential Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 871.6 | 666.7 | 567.7 | 168.1 | 102.9 | 750.8 | 128.4 | 7.9 | 3,264.1 | ||||||||||||||||||||
4 to 5 Category | 354.3 | 656.7 | 597.6 | 290.0 | 170.9 | 838.2 | 180.4 | 1.0 | 3,089.1 | ||||||||||||||||||||
6 to 9 Category | — | 6.8 | 1.5 | 1.1 | 3.7 | 35.9 | 11.3 | — | 60.3 | ||||||||||||||||||||
Total Residential Real Estate | 1,225.9 | 1,330.2 | 1,166.8 | 459.2 | 277.5 | 1,624.9 | 320.1 | 8.9 | 6,413.5 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 3.0 | 3.7 | — | — | 4.6 | 2.3 | 124.6 | — | 138.2 | ||||||||||||||||||||
4 to 5 Category | 24.2 | 40.3 | — | 21.3 | 3.2 | 2.9 | 272.0 | 7.8 | 371.7 | ||||||||||||||||||||
6 to 9 Category | — | — | — | — | — | 0.1 | — | — | 0.1 | ||||||||||||||||||||
Total Non-U.S. | 27.2 | 44.0 | — | 21.3 | 7.8 | 5.3 | 396.6 | 7.8 | 510.0 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 190.8 | — | — | — | — | — | — | — | 190.8 | ||||||||||||||||||||
4 to 5 Category | 24.4 | — | — | — | — | — | — | — | 24.4 | ||||||||||||||||||||
Total Other | 215.2 | — | — | — | — | — | — | — | 215.2 | ||||||||||||||||||||
Total Personal | 2,295.0 | 2,289.2 | 1,409.8 | 985.4 | 356.0 | 1,808.7 | 11,801.5 | 312.1 | 21,257.7 | ||||||||||||||||||||
Total Loans and Leases | $ | 7,905.6 | $ | 5,484.1 | $ | 2,791.4 | $ | 2,007.3 | $ | 746.1 | $ | 3,012.1 | $ | 20,561.7 | $ | 385.0 | $ | 42,893.3 |
120 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
December 31, 2021 | TERM LOANS AND LEASES | REVOLVING LOANS | REVOLVING LOANS CONVERTED TO TERM LOANS | ||||||||||||||||||||||||||
(In Millions) | 2021 | 2020 | 2019 | 2018 | 2017 | PRIOR | TOTAL | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial and Institutional | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | $ | 1,042.0 | $ | 310.2 | $ | 468.9 | $ | 163.9 | $ | 55.4 | $ | 541.6 | $ | 4,946.0 | $ | 0.1 | $ | 7,528.1 | |||||||||||
4 to 5 Category | 993.4 | 441.7 | 406.7 | 193.6 | 243.3 | 230.2 | 1,217.8 | 33.1 | 3,759.8 | ||||||||||||||||||||
6 to 9 Category | 44.0 | 6.0 | 47.1 | 30.2 | 9.9 | 1.9 | 62.2 | — | 201.3 | ||||||||||||||||||||
Total Commercial and Institutional | 2,079.4 | 757.9 | 922.7 | 387.7 | 308.6 | 773.7 | 6,226.0 | 33.2 | 11,489.2 | ||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 472.0 | 298.7 | 279.8 | 65.8 | 16.6 | 79.5 | 67.5 | 2.9 | 1,282.8 | ||||||||||||||||||||
4 to 5 Category | 912.7 | 644.8 | 491.5 | 205.4 | 89.6 | 390.6 | 182.3 | 20.5 | 2,937.4 | ||||||||||||||||||||
6 to 9 Category | 50.1 | — | 50.6 | — | — | 2.9 | 2.5 | — | 106.1 | ||||||||||||||||||||
Total Commercial Real Estate | 1,434.8 | 943.5 | 821.9 | 271.2 | 106.2 | 473.0 | 252.3 | 23.4 | 4,326.3 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 816.5 | 68.9 | 38.4 | — | 9.1 | — | 582.0 | — | 1,514.9 | ||||||||||||||||||||
4 to 5 Category | 167.0 | — | — | 1.9 | — | 191.9 | 73.3 | 1.8 | 435.9 | ||||||||||||||||||||
6 to 9 Category | 2.9 | — | 23.1 | — | — | — | 13.4 | — | 39.4 | ||||||||||||||||||||
Total Non-U.S. | 986.4 | 68.9 | 61.5 | 1.9 | 9.1 | 191.9 | 668.7 | 1.8 | 1,990.2 | ||||||||||||||||||||
Lease Financing, net | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
6 to 9 Category | — | — | — | — | — | 11.0 | — | — | 11.0 | ||||||||||||||||||||
Total Lease Financing, net | — | — | — | — | — | 11.0 | — | — | 11.0 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 551.5 | — | — | — | — | — | — | — | 551.5 | ||||||||||||||||||||
4 to 5 Category | 119.2 | — | — | — | — | — | — | — | 119.2 | ||||||||||||||||||||
Total Other | 670.7 | — | — | — | — | — | — | — | 670.7 | ||||||||||||||||||||
Total Commercial | 5,171.3 | 1,770.3 | 1,806.1 | 660.8 | 423.9 | 1,449.6 | 7,147.0 | 58.4 | 18,487.4 | ||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||
Private Client | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 432.5 | 116.6 | 90.3 | 14.9 | 39.3 | 129.8 | 7,592.8 | 44.7 | 8,460.9 | ||||||||||||||||||||
4 to 5 Category | 567.8 | 335.2 | 396.9 | 213.3 | 55.0 | 39.9 | 4,979.8 | 178.3 | 6,766.2 | ||||||||||||||||||||
6 to 9 Category | 1.9 | 2.4 | 3.0 | 20.4 | — | — | 1.5 | — | 29.2 | ||||||||||||||||||||
Total Private Client | 1,002.2 | 454.2 | 490.2 | 248.6 | 94.3 | 169.7 | 12,574.1 | 223.0 | 15,256.3 | ||||||||||||||||||||
Residential Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 1,018.1 | 660.3 | 213.0 | 110.4 | 139.8 | 763.1 | 161.5 | — | 3,066.2 | ||||||||||||||||||||
4 to 5 Category | 434.0 | 676.6 | 325.5 | 190.9 | 172.1 | 1,145.9 | 218.1 | 2.2 | 3,165.3 | ||||||||||||||||||||
6 to 9 Category | 0.3 | 9.9 | 6.5 | 5.3 | 6.3 | 55.1 | 5.0 | — | 88.4 | ||||||||||||||||||||
Total Residential Real Estate | 1,452.4 | 1,346.8 | 545.0 | 306.6 | 318.2 | 1,964.1 | 384.6 | 2.2 | 6,319.9 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 27.5 | — | 1.2 | — | — | 1.0 | 44.1 | — | 73.8 | ||||||||||||||||||||
4 to 5 Category | 36.1 | — | 20.6 | 10.4 | — | 3.8 | 229.1 | 7.8 | 307.8 | ||||||||||||||||||||
6 to 9 Category | — | — | — | — | — | 0.2 | — | — | 0.2 | ||||||||||||||||||||
Total Non-U.S. | 63.6 | — | 21.8 | 10.4 | — | 5.0 | 273.2 | 7.8 | 381.8 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 13.4 | — | — | — | — | — | — | — | 13.4 | ||||||||||||||||||||
4 to 5 Category | 21.8 | — | — | — | — | — | — | — | 21.8 | ||||||||||||||||||||
Total Other | 35.2 | — | — | — | — | — | — | — | 35.2 | ||||||||||||||||||||
Total Personal | 2,553.4 | 1,801.0 | 1,057.0 | 565.6 | 412.5 | 2,138.8 | 13,231.9 | 233.0 | 21,993.2 | ||||||||||||||||||||
Total Loans and Leases | $ | 7,724.7 | $ | 3,571.3 | $ | 2,863.1 | $ | 1,226.4 | $ | 836.4 | $ | 3,588.4 | $ | 20,378.9 | $ | 291.4 | $ | 40,480.6 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 121 |
ACCRUAL | NONACCRUAL WITH NO ALLOWANCE | |||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS PAST DUE | 60 – 89 DAYS PAST DUE | 90 DAYS OR MORE PAST DUE | TOTAL ACCRUAL | NONACCRUAL | TOTAL LOANS AND LEASES | |||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Commercial and Institutional | $ | 12,353.7 | $ | 40.2 | $ | 3.0 | $ | 0.7 | $ | 12,397.6 | $ | 17.4 | $ | 12,415.0 | $ | 4.4 | ||||||||||
Commercial Real Estate | 4,761.5 | 1.3 | — | — | 4,762.8 | 10.2 | 4,773.0 | 6.2 | ||||||||||||||||||
Non-U.S. | 3,131.1 | — | — | — | 3,131.1 | — | 3,131.1 | — | ||||||||||||||||||
Other | 1,316.5 | — | — | — | 1,316.5 | — | 1,316.5 | — | ||||||||||||||||||
Total Commercial | 21,562.8 | 41.5 | 3.0 | 0.7 | 21,608.0 | 27.6 | 21,635.6 | 10.6 | ||||||||||||||||||
Personal | ||||||||||||||||||||||||||
Private Client | 13,843.5 | 192.3 | 29.9 | 53.3 | 14,119.0 | — | 14,119.0 | — | ||||||||||||||||||
Residential Real Estate | 6,373.2 | 9.6 | 12.3 | 0.1 | 6,395.2 | 18.3 | 6,413.5 | 18.3 | ||||||||||||||||||
Non-U.S. | 509.9 | — | — | 0.1 | 510.0 | — | 510.0 | — | ||||||||||||||||||
Other | 215.2 | — | — | — | 215.2 | — | 215.2 | — | ||||||||||||||||||
Total Personal | 20,941.8 | 201.9 | 42.2 | 53.5 | 21,239.4 | 18.3 | 21,257.7 | 18.3 | ||||||||||||||||||
Total Loans and Leases | $ | 42,504.6 | $ | 243.4 | $ | 45.2 | $ | 54.2 | $ | 42,847.4 | $ | 45.9 | $ | 42,893.3 | $ | 28.9 | ||||||||||
Other Real Estate Owned | $ | — | ||||||||||||||||||||||||
Total Nonaccrual Assets | $ | 45.9 |
122 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
ACCRUAL | NONACCRUAL WITH NO ALLOWANCE | |||||||||||||||||||||||||
(In Millions) | CURRENT | 30 – 59 DAYS PAST DUE | 60 – 89 DAYS PAST DUE | 90 DAYS OR MORE PAST DUE | TOTAL ACCRUAL | NONACCRUAL | TOTAL LOANS AND LEASES | |||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Commercial and Institutional | $ | 11,434.7 | $ | 32.5 | $ | 2.1 | $ | 0.4 | $ | 11,469.7 | $ | 19.5 | $ | 11,489.2 | $ | 8.8 | ||||||||||
Commercial Real Estate | 4,256.6 | 3.1 | — | — | 4,259.7 | 66.6 | 4,326.3 | 52.3 | ||||||||||||||||||
Non-U.S. | 1,990.2 | — | — | — | 1,990.2 | — | 1,990.2 | — | ||||||||||||||||||
Lease Financing, net | 11.0 | — | — | — | 11.0 | — | 11.0 | — | ||||||||||||||||||
Other | 670.7 | — | — | — | 670.7 | — | 670.7 | — | ||||||||||||||||||
Total Commercial | 18,363.2 | 35.6 | 2.1 | 0.4 | 18,401.3 | 86.1 | 18,487.4 | 61.1 | ||||||||||||||||||
Personal | ||||||||||||||||||||||||||
Private Client | 14,927.3 | 229.5 | 71.8 | 27.7 | 15,256.3 | — | 15,256.3 | — | ||||||||||||||||||
Residential Real Estate | 6,273.2 | 7.0 | 3.3 | 0.2 | 6,283.7 | 36.2 | 6,319.9 | 36.2 | ||||||||||||||||||
Non-U.S | 381.6 | 0.2 | — | — | 381.8 | — | 381.8 | — | ||||||||||||||||||
Other | 35.2 | — | — | — | 35.2 | — | 35.2 | — | ||||||||||||||||||
Total Personal | 21,617.3 | 236.7 | 75.1 | 27.9 | 21,957.0 | 36.2 | 21,993.2 | 36.2 | ||||||||||||||||||
Total Loans and Leases | $ | 39,980.5 | $ | 272.3 | $ | 77.2 | $ | 28.3 | $ | 40,358.3 | $ | 122.3 | $ | 40,480.6 | $ | 97.3 | ||||||||||
Other Real Estate Owned | $ | 3.0 | ||||||||||||||||||||||||
Total Nonaccrual Assets | $ | 125.3 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 123 |
($ In Millions) | LOAN MODIFICATION DETAIL | NUMBER OF LOANS AND LEASES | RECORDED INVESTMENT | UNPAID PRINCIPAL BALANCE | ||||||||||
December 31, 2022 | ||||||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | Interest rate concession, extension of term, and other modification | 2 | $ | 0.6 | $ | 0.6 | ||||||||
Commercial Real Estate | Interest rate concession and other modification | 1 | 31.6 | 32.5 | ||||||||||
Total Commercial | 3 | 32.2 | 33.1 | |||||||||||
Personal | ||||||||||||||
Residential Real Estate | Interest rate concession, deferrals of principal, extension of term, and other modification | 3 | 0.2 | 0.2 | ||||||||||
Private Client | Interest rate concession and extension of term | 1 | 0.4 | 0.4 | ||||||||||
Total Personal | 4 | 0.6 | 0.6 | |||||||||||
Total Loans and Leases | 7 | $ | 32.8 | $ | 33.7 |
($ In Millions) | LOAN MODIFICATION DETAIL | NUMBER OF LOANS AND LEASES | RECORDED INVESTMENT | UNPAID PRINCIPAL BALANCE | ||||||||||
December 31, 2021 | ||||||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | Deferrals of principal | 6 | $ | 19.6 | $ | 19.6 | ||||||||
Commercial Real Estate | Deferrals of principal, interest rate concessions, other modifications, and extension of term | 3 | 36.0 | 42.4 | ||||||||||
Total Commercial | 9 | 55.6 | 62.0 | |||||||||||
Personal | ||||||||||||||
Residential Real Estate | Deferrals of principal, extension of term, and other modifications | 10 | 1.3 | 1.5 | ||||||||||
Total Personal | 10 | 1.3 | 1.5 | |||||||||||
Total Loans and Leases | 19 | $ | 56.9 | $ | 63.5 |
124 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 | |||||||||||||||||
(In Millions) | LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | HELD TO MATURITY DEBT SECURITIES | OTHER FINANCIAL ASSETS | TOTAL | ||||||||||||
Balance at Beginning of Period | $ | 138.4 | $ | 34.1 | $ | 11.2 | $ | 1.0 | $ | 184.7 | |||||||
Charge-Offs | (6.0) | — | — | — | (6.0) | ||||||||||||
Recoveries | 10.2 | — | — | — | 10.2 | ||||||||||||
Net Recoveries (Charge-Offs) | 4.2 | — | — | — | 4.2 | ||||||||||||
Provision for Credit Losses(1) | 1.7 | 4.4 | 4.8 | (0.2) | 10.7 | ||||||||||||
Balance at End of Period | $ | 144.3 | $ | 38.5 | $ | 16.0 | $ | 0.8 | $ | 199.6 |
2021 | |||||||||||||||||
(In Millions) | LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | HELD TO MATURITY DEBT SECURITIES | OTHER FINANCIAL ASSETS | TOTAL | ||||||||||||
Balance at Beginning of Period | $ | 190.7 | $ | 61.1 | $ | 7.3 | $ | 0.8 | $ | 259.9 | |||||||
Charge-Offs | (0.7) | — | — | — | (0.7) | ||||||||||||
Recoveries | 7.0 | — | — | — | 7.0 | ||||||||||||
Net Recoveries (Charge-Offs) | 6.3 | — | — | — | 6.3 | ||||||||||||
Provision for Credit Losses | (58.6) | (27.0) | 3.9 | 0.2 | (81.5) | ||||||||||||
Balance at End of Period | $ | 138.4 | $ | 34.1 | $ | 11.2 | $ | 1.0 | $ | 184.7 |
2020 | |||||||||||||||||
(In Millions) | LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | HELD TO MATURITY DEBT SECURITIES | OTHER FINANCIAL ASSETS | TOTAL | ||||||||||||
Balance at End of Prior Period | $ | 104.5 | $ | 19.9 | $ | — | $ | — | $ | 124.4 | |||||||
Cumulative Effect Adjustment | (2.2) | 8.9 | 6.6 | 0.4 | 13.7 | ||||||||||||
Balance at Beginning of Period | 102.3 | 28.8 | 6.6 | 0.4 | 138.1 | ||||||||||||
Charge-Offs | (9.7) | — | — | — | (9.7) | ||||||||||||
Recoveries | 6.5 | — | — | — | 6.5 | ||||||||||||
Net Recoveries (Charge-Offs) | (3.2) | — | — | — | (3.2) | ||||||||||||
Provision for Credit Losses | 91.6 | 32.3 | 0.7 | 0.4 | 125.0 | ||||||||||||
Balance at End of Period | $ | 190.7 | $ | 61.1 | $ | 7.3 | $ | 0.8 | $ | 259.9 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 125 |
126 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 | ||||||||||||||||||||
LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Balance at Beginning of Period | $ | 105.6 | $ | 32.8 | $ | 138.4 | $ | 31.4 | $ | 2.7 | $ | 34.1 | ||||||||
Charge-Offs | (5.3) | (0.7) | (6.0) | — | — | — | ||||||||||||||
Recoveries | 2.7 | 7.5 | 10.2 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | (2.6) | 6.8 | 4.2 | — | — | — | ||||||||||||||
Provision for Credit Losses | 13.2 | (11.5) | 1.7 | 4.9 | (0.5) | 4.4 | ||||||||||||||
Balance at End of Period | $ | 116.2 | $ | 28.1 | $ | 144.3 | $ | 36.3 | $ | 2.2 | $ | 38.5 |
2021 | ||||||||||||||||||||
LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Balance at Beginning of Period | $ | 142.2 | $ | 48.5 | $ | 190.7 | $ | 57.6 | $ | 3.5 | $ | 61.1 | ||||||||
Charge-Offs | (0.3) | (0.4) | (0.7) | — | — | — | ||||||||||||||
Recoveries | 0.9 | 6.1 | 7.0 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | 0.6 | 5.7 | 6.3 | — | — | — | ||||||||||||||
Provision for Credit Losses | (37.2) | (21.4) | (58.6) | (26.2) | (0.8) | (27.0) | ||||||||||||||
Balance at End of Period | $ | 105.6 | $ | 32.8 | $ | 138.4 | $ | 31.4 | $ | 2.7 | $ | 34.1 |
2020 | ||||||||||||||||||||
LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Balance at End of Prior Period | $ | 58.1 | $ | 46.4 | $ | 104.5 | $ | 15.8 | $ | 4.1 | $ | 19.9 | ||||||||
Cumulative Effect Adjustment | (5.9) | 3.7 | (2.2) | 11.9 | (3.0) | 8.9 | ||||||||||||||
Balance at Beginning of Period | $ | 52.2 | $ | 50.1 | $ | 102.3 | $ | 27.7 | $ | 1.1 | $ | 28.8 | ||||||||
Charge-Offs | (6.3) | (3.4) | (9.7) | — | — | — | ||||||||||||||
Recoveries | 2.4 | 4.1 | 6.5 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | (3.9) | 0.7 | (3.2) | — | — | — | ||||||||||||||
Provision for Credit Losses | 93.9 | (2.3) | 91.6 | 29.9 | 2.4 | 32.3 | ||||||||||||||
Balance at End of Period | $ | 142.2 | $ | 48.5 | $ | 190.7 | $ | 57.6 | $ | 3.5 | $ | 61.1 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 127 |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Loans and Leases | ||||||||||||||||||||
Evaluated on an Individual Basis | $ | 63.0 | $ | 46.1 | $ | 109.1 | $ | 92.1 | $ | 74.5 | $ | 166.6 | ||||||||
Evaluated on a Collective Basis | 21,572.6 | 21,211.6 | 42,784.2 | 18,395.3 | 21,918.7 | 40,314.0 | ||||||||||||||
Total Loans and Leases | 21,635.6 | 21,257.7 | 42,893.3 | 18,487.4 | 21,993.2 | 40,480.6 | ||||||||||||||
Allowance for Credit Losses on Loans and Leases | ||||||||||||||||||||
Evaluated on an Individual Basis | 10.4 | — | 10.4 | 10.1 | — | 10.1 | ||||||||||||||
Evaluated on a Collective Basis | 105.8 | 28.1 | 133.9 | 95.5 | 32.8 | 128.3 | ||||||||||||||
Allowance Assigned to Loans and Leases | 116.2 | 28.1 | 144.3 | 105.6 | 32.8 | 138.4 | ||||||||||||||
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||||||||||||||||||
Evaluated on an Individual Basis | — | — | — | — | — | — | ||||||||||||||
Evaluated on a Collective Basis | 36.3 | 2.2 | 38.5 | 31.4 | 2.7 | 34.1 | ||||||||||||||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 36.3 | 2.2 | 38.5 | 31.4 | 2.7 | 34.1 | ||||||||||||||
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit | $ | 152.5 | $ | 30.3 | $ | 182.8 | $ | 137.0 | $ | 35.5 | $ | 172.5 |
2022 | |||||||||||||||||||||||
(In Millions) | CORPORATE DEBT | NON-U.S. GOVERNMENT | SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS | OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS (1) | COVERED BONDS | OTHER | TOTAL | ||||||||||||||||
Balance at Beginning of Period | $ | 1.4 | $ | 1.9 | $ | 3.0 | $ | — | $ | 0.1 | $ | 4.8 | $ | 11.2 | |||||||||
Provision for Credit Losses | 0.5 | 1.7 | 1.0 | 1.5 | — | 0.1 | 4.8 | ||||||||||||||||
Balance at End of Period | $ | 1.9 | $ | 3.6 | $ | 4.0 | $ | 1.5 | $ | 0.1 | $ | 4.9 | $ | 16.0 |
2021 | |||||||||||||||||||||||
(In Millions) | CORPORATE DEBT | NON-U.S. GOVERNMENT | SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS | OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS | COVERED BONDS | OTHER | TOTAL | ||||||||||||||||
Balance at Beginning of Period | $ | 0.8 | $ | 0.2 | $ | 1.2 | $ | — | $ | 0.1 | $ | 5.0 | $ | 7.3 | |||||||||
Provision for Credit Losses | 0.6 | 1.7 | 1.8 | — | — | (0.2) | 3.9 | ||||||||||||||||
Balance at End of Period | $ | 1.4 | $ | 1.9 | $ | 3.0 | $ | — | $ | 0.1 | $ | 4.8 | $ | 11.2 |
128 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
(In Millions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||
$ | 203.1 | $ | 62.6 | |||||
Debt Securities | ||||||||
63.2 | 30.4 | |||||||
147.1 | 129.7 | |||||||
Other Financial Assets | 43.8 | 2.3 | ||||||
Total | $ | 457.2 | $ | 225.0 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Residential Real Estate by geographic region: | ||||||||
Florida | $ | 1,603.2 | $ | 1,554.8 | ||||
California | 1,508.1 | 1,449.0 | ||||||
Illinois | 686.9 | 738.8 | ||||||
New York | 498.7 | 449.4 | ||||||
Colorado | 364.2 | 309.0 | ||||||
Texas | 312.4 | 320.3 | ||||||
All other(1) | 1,440.0 | 1,498.6 | ||||||
Total Residential Real Estate | $ | 6,413.5 | $ | 6,319.9 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 129 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Commercial Mortgages | ||||||||
Office | $ | 1,054.0 | $ | 1,011.4 | ||||
Apartment/ Multi-family | 1,392.7 | 1,288.8 | ||||||
Retail | 572.2 | 601.8 | ||||||
Industrial/ Warehouse | 596.2 | 442.9 | ||||||
Other | 548.0 | 516.8 | ||||||
Total Commercial Mortgages | 4,163.1 | 3,861.7 | ||||||
Construction, Acquisition and Development Loans | 609.9 | 464.6 | ||||||
Total Commercial Real Estate Loans | $ | 4,773.0 | $ | 4,326.3 |
DECEMBER 31, 2022 | |||||||||||
(In Millions) | ORIGINAL COST | ACCUMULATED DEPRECIATION | NET BOOK VALUE | ||||||||
Land and Improvements | $ | 11.5 | $ | 0.3 | $ | 11.2 | |||||
Buildings | 224.7 | 137.7 | 87.0 | ||||||||
Equipment | 499.7 | 281.9 | 217.8 | ||||||||
Leasehold Improvements | 514.1 | 329.6 | 184.5 | ||||||||
Total Buildings and Equipment | $ | 1,250.0 | $ | 749.5 | $ | 500.5 |
DECEMBER 31, 2021 | |||||||||||
(In Millions) | ORIGINAL COST | ACCUMULATED DEPRECIATION | NET BOOK VALUE | ||||||||
Land and Improvements | $ | 11.5 | $ | 0.3 | $ | 11.2 | |||||
Buildings | 217.6 | 136.5 | 81.1 | ||||||||
Equipment | 478.4 | 275.4 | 203.0 | ||||||||
Leasehold Improvements | 513.6 | 320.2 | 193.4 | ||||||||
Total Buildings and Equipment | $ | 1,221.1 | $ | 732.4 | $ | 488.7 |
130 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Operating Lease Cost | $ | 104.5 | $ | 96.2 | ||||
Variable Lease Cost (1) | 82.2 | 76.9 | ||||||
Sublease Income | (2.9) | (4.5) | ||||||
Total Lease Cost | $ | 183.8 | $ | 168.6 |
(In Millions) | MATURITY OF LEASE LIABILITIES | ||||
2023 | $ | 88.3 | |||
2024 | 86.3 | ||||
2025 | 88.5 | ||||
2026 | 71.9 | ||||
2027 | 71.4 | ||||
Later Years | 319.2 | ||||
Total Lease Payments | 725.6 | ||||
Less: Imputed Interest | (99.4) | ||||
Present Value of Lease Liabilities | $ | 626.2 |
(In Millions) | LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||||
Assets | |||||||||||
Operating Lease Right-of-Use Asset | $ | 484.8 | $ | 531.2 | |||||||
Liabilities | |||||||||||
Operating Lease Liability | $ | 626.2 | $ | 663.1 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 131 |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||
Operating Leases | ||||||||
Weighted-Average Remaining Lease Term | 9.3 years | 9.6 years | ||||||
Weighted-Average Discount Rate | 3.0 | % | 2.4 | % |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Supplemental cash flow information | ||||||||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ | 70.3 | $ | 69.5 | ||||
Supplemental non-cash information | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 61.0 | $ | 58.5 |
(In Millions) | ASSET SERVICING | WEALTH MANAGEMENT | TOTAL | ||||||||
Balance at December 31, 2020 | $ | 626.7 | $ | 80.5 | $ | 707.2 | |||||
Goodwill Acquired | 4.2 | — | 4.2 | ||||||||
Foreign Exchange Rates | (5.2) | — | (5.2) | ||||||||
Balance at December 31, 2021 | $ | 625.7 | $ | 80.5 | $ | 706.2 | |||||
Foreign Exchange Rates | (14.7) | (0.2) | (14.9) | ||||||||
Balance at December 31, 2022 | $ | 611.0 | $ | 80.3 | $ | 691.3 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Gross Carrying Amount | $ | 197.9 | $ | 206.4 | ||||
Less: Accumulated Amortization | 120.3 | 114.8 | ||||||
Net Book Value | $ | 77.6 | $ | 91.6 |
132 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Gross Carrying Amount | $ | 3,479.3 | $ | 2,982.1 | ||||
Less: Accumulated Amortization | 1,517.4 | 1,299.5 | ||||||
Net Book Value | $ | 1,961.9 | $ | 1,682.6 |
DECEMBER 31, 2022 | |||||||||||
U.S. OFFICE | NON-U.S. OFFICES | ||||||||||
(In Millions) | CERTIFICATES OF DEPOSIT | OTHER TIME | TOTAL | ||||||||
1 Year or Less | $ | 1,600.6 | $ | 2,024.2 | $ | 3,624.8 | |||||
Over 1 Year to 2 Years | 91.4 | — | 91.4 | ||||||||
Over 2 Years to 3 Years | 2.3 | — | 2.3 | ||||||||
Over 3 Years to 4 Years | 1.3 | — | 1.3 | ||||||||
Over 4 Years to 5 Years | 2.0 | — | 2.0 | ||||||||
Over 5 Years | — | — | — | ||||||||
Total | $ | 1,697.6 | $ | 2,024.2 | $ | 3,721.8 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 133 |
DECEMBER 31, | |||||||||||
($ In Millions) | RATE | 2022 | 2021 | ||||||||
Corporation-Senior Notes | |||||||||||
Fixed Rate Due Aug. 2022(1) | 2.375 | % | $ | — | $ | 499.8 | |||||
Fixed Rate Due May 2027(2) | 4.00 | 995.0 | — | ||||||||
Fixed Rate Due Aug. 2028(3)(4) | 3.65 | 476.6 | 548.5 | ||||||||
Fixed Rate Due May 2029(3)(4) | 3.15 | 460.3 | 533.9 | ||||||||
Fixed Rate Due May 2030(3)(4) | 1.95 | 792.3 | 923.3 | ||||||||
Total Senior Notes | $ | 2,724.2 | $ | 2,505.5 |
DECEMBER 31, | |||||||||||
($ In Millions) | RATE | 2022 | 2021 | ||||||||
Corporation-Subordinated Debt | |||||||||||
Fixed Rate Notes due October 2025(1)(2) | 3.95 | % | $ | 720.1 | $ | 796.2 | |||||
Fixed-to-Floating Rate Notes due May 2032(3) | 3.375 | 349.7 | 349.5 | ||||||||
Fixed Rate Notes due November 2032(4) | 6.125 | 996.4 | — | ||||||||
Total Long-Term Debt | $ | 2,066.2 | $ | 1,145.7 | |||||||
Long-Term Debt Qualifying as Risk-Based Capital | $ | 1,648.5 | $ | 799.8 |
134 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 | 2021 | 2020 | |||||||||
Balance at January 1 | 207,761,875 | 208,289,178 | 209,709,046 | ||||||||
Incentive Plan and Awards | 914,404 | 1,162,484 | 1,512,035 | ||||||||
Stock Options Exercised | 63,566 | 837,757 | 344,686 | ||||||||
Treasury Stock Purchased | (311,536) | (2,527,544) | (3,276,589) | ||||||||
Balance at December 31 | 208,428,309 | 207,761,875 | 208,289,178 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 135 |
(In Millions) | NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES(1) | NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES | NET FOREIGN CURRENCY ADJUSTMENT | NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS | TOTAL | ||||||||||||
Balance at December 31, 2019 | $ | 114.0 | $ | (3.7) | $ | 117.8 | $ | (422.8) | $ | (194.7) | |||||||
Net Change | 527.8 | 0.5 | 26.9 | 67.5 | 622.7 | ||||||||||||
Balance at December 31, 2020 | $ | 641.8 | $ | (3.2) | $ | 144.7 | $ | (355.3) | $ | 428.0 | |||||||
Net Change | (534.7) | 0.8 | 10.5 | 59.8 | (463.6) | ||||||||||||
Balance at December 31, 2021 | $ | 107.1 | $ | (2.4) | $ | 155.2 | $ | (295.5) | $ | (35.6) | |||||||
Net Change | (1,474.7) | 3.6 | 9.4 | (71.9) | (1,533.6) | ||||||||||||
Balance at December 31, 2022 | $ | (1,367.6) | $ | 1.2 | $ | 164.6 | $ | (367.4) | $ | (1,569.2) |
FOR THE YEAR ENDED DECEMBER 31, | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
(In Millions) | PRE-TAX | TAX | AFTER TAX | PRE-TAX | TAX | AFTER TAX | PRE-TAX | TAX | AFTER TAX | ||||||||||||||||||||
Unrealized Gains (Losses) on Available for Sale Debt Securities | |||||||||||||||||||||||||||||
Unrealized Gains (Losses) on Available for Sale Debt Securities | $ | (2,263.8) | $ | 580.2 | $ | (1,683.6) | $ | (685.0) | $ | 177.5 | $ | (507.5) | $ | 706.8 | $ | (179.3) | $ | 527.5 | |||||||||||
Reclassification Adjustments for Losses (Gains) Included in Net Income: | |||||||||||||||||||||||||||||
Interest Income on Debt Securities(1) | 65.1 | (16.4) | 48.7 | (36.6) | 9.2 | (27.4) | — | — | — | ||||||||||||||||||||
Net Losses on Debt Securities(2) | 214.0 | (53.8) | 160.2 | 0.3 | (0.1) | 0.2 | 0.4 | (0.1) | 0.3 | ||||||||||||||||||||
Net Change | $ | (1,984.7) | $ | 510.0 | $ | (1,474.7) | $ | (721.3) | $ | 186.6 | $ | (534.7) | $ | 707.2 | $ | (179.4) | $ | 527.8 | |||||||||||
Unrealized (Losses) Gains on Cash Flow Hedges | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 1.0 | $ | (0.3) | $ | 0.7 | $ | 5.6 | $ | (1.4) | $ | 4.2 | $ | 28.9 | $ | (7.3) | $ | 21.6 | |||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income(3) | 3.7 | (0.8) | 2.9 | (4.5) | 1.1 | (3.4) | (28.1) | 7.0 | (21.1) | ||||||||||||||||||||
Net Change | $ | 4.7 | $ | (1.1) | $ | 3.6 | $ | 1.1 | $ | (0.3) | $ | 0.8 | $ | 0.8 | $ | (0.3) | $ | 0.5 | |||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | $ | (200.1) | $ | 3.0 | $ | (197.1) | $ | (133.8) | $ | 4.1 | $ | (129.7) | $ | 169.1 | $ | (8.3) | $ | 160.8 | |||||||||||
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains | (2.6) | 0.7 | (1.9) | 0.6 | (0.1) | 0.5 | 2.1 | (0.5) | 1.6 | ||||||||||||||||||||
Net Investment Hedge Gains (Losses) | 278.7 | (70.3) | 208.4 | 186.6 | (46.9) | 139.7 | (178.7) | 43.2 | (135.5) | ||||||||||||||||||||
Net Change | $ | 76.0 | $ | (66.6) | $ | 9.4 | $ | 53.4 | $ | (42.9) | $ | 10.5 | $ | (7.5) | $ | 34.4 | $ | 26.9 | |||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||
Net Actuarial (Losses) Gains | $ | (163.9) | $ | 44.7 | $ | (119.2) | $ | 7.9 | $ | 0.2 | $ | 8.1 | $ | 47.4 | $ | (12.3) | $ | 35.1 | |||||||||||
Reclassification Adjustment for Losses (Gains) Included in Net Income(4) | |||||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | 19.1 | (4.7) | 14.4 | 41.4 | (10.3) | 31.1 | 42.2 | (10.4) | 31.8 | ||||||||||||||||||||
Amortization of Prior Service Cost (Credit) | (1.0) | 0.3 | (0.7) | (1.0) | 0.3 | (0.7) | (0.1) | — | (0.1) | ||||||||||||||||||||
Settlement Loss | 44.9 | (11.3) | 33.6 | 28.3 | (7.0) | 21.3 | 0.8 | (0.1) | 0.7 | ||||||||||||||||||||
Net Change | $ | (100.9) | $ | 29.0 | $ | (71.9) | $ | 76.6 | $ | (16.8) | $ | 59.8 | $ | 90.3 | $ | (22.8) | $ | 67.5 | |||||||||||
Total Net Change | $ | (2,004.9) | $ | 471.3 | $ | (1,533.6) | $ | (590.2) | $ | 126.6 | $ | (463.6) | $ | 790.8 | $ | (168.1) | $ | 622.7 |
136 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions Except Per Common Share Information) | 2022 | 2021 | 2020 | ||||||||
BASIC NET INCOME PER COMMON SHARE | |||||||||||
Average Number of Common Shares Outstanding | 208,309,331 | 208,075,522 | 208,319,412 | ||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Less: Dividends on Preferred Stock | 41.8 | 41.8 | 56.2 | ||||||||
Net Income Applicable to Common Stock | 1,294.2 | 1,503.5 | 1,153.1 | ||||||||
Less: Earnings Allocated to Participating Securities | 11.8 | 12.9 | 12.1 | ||||||||
Earnings Allocated to Common Shares Outstanding | $ | 1,282.4 | $ | 1,490.6 | $ | 1,141.0 | |||||
Basic Net Income Per Common Share | 6.16 | 7.16 | 5.48 | ||||||||
DILUTED NET INCOME PER COMMON SHARE | |||||||||||
Average Number of Common Shares Outstanding | 208,309,331 | 208,075,522 | 208,319,412 | ||||||||
Plus Dilutive Effect of Share-based Compensation | 557,933 | 823,708 | 688,574 | ||||||||
Average Common and Potential Common Shares | 208,867,264 | 208,899,230 | 209,007,986 | ||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 1,282.4 | $ | 1,490.6 | $ | 1,141.1 | |||||
Diluted Net Income Per Common Share | 6.14 | 7.14 | 5.46 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 137 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | |||||||||||
Custody and Fund Administration | $ | 1,816.0 | $ | 1,917.5 | $ | 1,674.3 | |||||
Investment Management and Advisory | 2,299.1 | 2,140 | 2,029.3 | ||||||||
Securities Lending | 81.6 | 76.9 | 88.3 | ||||||||
Other | 235.9 | 226.7 | 203.1 | ||||||||
Total Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | |||||
Other Noninterest Income | |||||||||||
Foreign Exchange Trading Income | $ | 288.6 | $ | 292.6 | $ | 290.4 | |||||
Treasury Management Fees | 39.3 | 44.3 | 45.4 | ||||||||
Security Commissions and Trading Income | 136.2 | 140.2 | 133.2 | ||||||||
Other Operating Income | 191.3 | 243.9 | 194.0 | ||||||||
Investment Security Gains (Losses), net | (214.0) | (0.3) | (0.4) | ||||||||
Total Other Noninterest Income | $ | 441.4 | $ | 720.7 | $ | 662.6 | |||||
Total Noninterest Income | $ | 4,874.0 | $ | 5,081.8 | $ | 4,657.6 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Trust Fees Receivable, net(1) | $ | 882.5 | $ | 925.2 | ||||
Other | 55.4 | 126.9 | ||||||
Total Client Receivables | $ | 937.9 | $ | 1,052.1 |
138 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Interest Income | |||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 472.1 | $ | 11.3 | $ | 28.8 | |||||
Interest-Bearing Due from and Deposits with Banks(1) | 46.6 | 9.1 | 22.4 | ||||||||
Securities Purchased under Agreements to Resell | 103.7 | 3.5 | 3.9 | ||||||||
Securities – Taxable | 899.9 | 658.8 | 801.2 | ||||||||
– Non-Taxable(2) | 1.3 | 1.5 | 1.4 | ||||||||
Loans and Leases | 1,344.3 | 713.5 | 774.6 | ||||||||
Other Interest-Earning Assets(3) | 9.8 | 8.8 | 11.2 | ||||||||
Total Interest Income | $ | 2,877.7 | $ | 1,406.5 | $ | 1,643.5 | |||||
Interest Expense | |||||||||||
Deposits | $ | 602.8 | $ | (61.3) | $ | 48.4 | |||||
Federal Funds Purchased | 34.1 | (0.4) | 2.2 | ||||||||
Securities Sold under Agreements to Repurchase | 90.7 | 0.2 | 1.0 | ||||||||
Other Borrowings | 126.2 | 14.2 | 45.3 | ||||||||
Senior Notes | 92.7 | 48.3 | 72.7 | ||||||||
Long-Term Debt | 44.0 | 21.1 | 26.5 | ||||||||
Floating Rate Capital Debt | — | 1.7 | 4.2 | ||||||||
Total Interest Expense | $ | 990.5 | $ | 23.8 | $ | 200.3 | |||||
Net Interest Income | $ | 1,887.2 | $ | 1,382.7 | $ | 1,443.2 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Loan Service Fees | $ | 71.5 | $ | 66.6 | $ | 52.5 | |||||
Banking Service Fees | 49.8 | 50.9 | 46.1 | ||||||||
Other Income | 70.0 | 126.4 | 95.4 | ||||||||
Total Other Operating Income | $ | 191.3 | $ | 243.9 | $ | 194.0 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Business Promotion | $ | 76.7 | $ | 65.5 | $ | 59.2 | |||||
Staff Related | 34.6 | 33.9 | 29.4 | ||||||||
FDIC Insurance Premiums | 17.8 | 14.6 | 11.8 | ||||||||
Other Intangibles Amortization | 9.3 | 14.8 | 16.9 | ||||||||
Other Expenses | 220.9 | 170.3 | 229.4 | ||||||||
Total Other Operating Expense | $ | 359.3 | $ | 299.1 | $ | 346.7 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 139 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
2022 | 2021 | 2020 | |||||||||
Statutory Federal Tax Rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
Tax Exempt Income | (0.9) | (0.6) | (0.9) | ||||||||
Foreign Tax Rate Differential | 0.1 | 0.1 | 0.7 | ||||||||
Excess Tax Benefit Related to Share-Based Compensation | (0.2) | (0.4) | (0.6) | ||||||||
Tax Credits | (2.0) | (1.6) | (1.7) | ||||||||
Reversal of Tax Benefits Previously Recognized through Earnings | — | — | 1.6 | ||||||||
State Taxes, net | 3.3 | 3.4 | 3.2 | ||||||||
Valuation Allowance | 1.5 | 0.6 | 1.6 | ||||||||
Other | 1.6 | 0.6 | 0.8 | ||||||||
Effective Tax Rate | 24.4 | % | 23.1 | % | 25.7 | % |
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Balance at January 1 | $ | 25.3 | $ | 22.4 | $ | 25.3 | |||||
Additions for Tax Positions Taken in the Current Year | 1.7 | 1.2 | 0.9 | ||||||||
Additions for Tax Positions Taken in Prior Years | 13.7 | 4.2 | 0.4 | ||||||||
Reductions for Tax Positions Taken in Prior Years | — | (2.5) | (4.2) | ||||||||
Reductions Resulting from Expiration of Statutes | — | — | — | ||||||||
Balance at December 31 | $ | 40.7 | $ | 25.3 | $ | 22.4 |
140 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Current Tax Provision: | |||||||||||
Federal | $ | 357.7 | $ | 241.5 | $ | 203.0 | |||||
State | 84.7 | 74.0 | 57.2 | ||||||||
Non-U.S. | 130.6 | 147.3 | 141.7 | ||||||||
Total | $ | 573.0 | $ | 462.8 | $ | 401.9 | |||||
Deferred Tax Provision: | |||||||||||
Federal | $ | (126.0) | $ | (11.7) | $ | 8.8 | |||||
State | (10.7) | 12.0 | 5.4 | ||||||||
Non-U.S. | (6.0) | 1.7 | 2.2 | ||||||||
Total | $ | (142.7) | $ | 2.0 | $ | 16.4 | |||||
Provision for Income Taxes | $ | 430.3 | $ | 464.8 | $ | 418.3 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Tax Effect of Other Comprehensive Income | $ | (471.3) | $ | (126.6) | $ | 168.1 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Deferred Tax Liabilities: | ||||||||
Lease Financing | $ | — | $ | 7.0 | ||||
Software Development | 354.7 | 271.8 | ||||||
Depreciation and Amortization | 122.6 | 181.3 | ||||||
Unrealized Gains on Securities, net | — | 82.8 | ||||||
Compensation and Benefits | 5.2 | 65.6 | ||||||
State Taxes, net | 58.3 | 76.3 | ||||||
Other Liabilities | 42.1 | 23.3 | ||||||
Gross Deferred Tax Liabilities | 582.9 | 708.1 | ||||||
Deferred Tax Assets: | ||||||||
Allowance for Credit Losses | 41.8 | 38.6 | ||||||
Unrealized Losses on Securities, net | 427.3 | — | ||||||
Tax Credit and Loss Carryforwards | 95.3 | 68.2 | ||||||
Other Assets | 143.7 | 85.4 | ||||||
Gross Deferred Tax Assets | 708.1 | 192.2 | ||||||
Valuation Reserve | (95.3) | (68.2) | ||||||
Deferred Tax Assets, net of Valuation Reserve | 612.8 | 124.0 | ||||||
Net Deferred Tax Assets (Liabilities) | $ | 29.9 | $ | (584.1) |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 141 |
U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||||||||||||
($ In Millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
Accumulated Benefit Obligation | $ | 963.3 | $ | 1,246.6 | $ | 126.2 | $ | 204.5 | $ | 97.4 | $ | 125.5 | ||||||||
Projected Benefit Obligation | $ | 1,077.7 | $ | 1,401.3 | $ | 129.0 | $ | 210.1 | $ | 113.6 | $ | 147.7 | ||||||||
Plan Assets at Fair Value | 1,176.8 | 1,708.9 | 134.5 | 198.7 | — | — | ||||||||||||||
Funded Status at December 31 | $ | 99.1 | $ | 307.6 | $ | 5.5 | $ | (11.4) | $ | (113.6) | $ | (147.7) | ||||||||
Weighted-Average Assumptions: | ||||||||||||||||||||
Discount Rates | 5.22 | % | 3.03 | % | 3.76 | % | 1.34 | % | 5.15 | % | 2.80 | % | ||||||||
Rate of Increase in Compensation Level | 5.56 | 4.97 | 1.75 | 1.50 | 5.56 | 4.97 | ||||||||||||||
Expected Long-Term Rate of Return on Assets | 7.25 | 5.25 | 3.99 | 1.79 | N/A | N/A |
U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||||||||||||
(In Millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
Net Actuarial Loss | $ | 418.3 | $ | 273.8 | $ | 24.3 | $ | 40.4 | $ | 59.2 | $ | 86.6 | ||||||||
Prior Service (Credit) Cost | — | (0.1) | 0.2 | 0.6 | — | — | ||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | 418.3 | 273.7 | 24.5 | 41.0 | 59.2 | 86.6 | ||||||||||||||
Income Tax Effect | 105.1 | 68.7 | 4.9 | 5.2 | 14.8 | 21.7 | ||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | 313.2 | $ | 205.0 | $ | 19.6 | $ | 35.8 | $ | 44.4 | $ | 64.9 |
142 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
U.S. QUALIFIED PLAN(1) | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | |||||||||||||||||||||||||||||||||
($ In Millions) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
Service Cost | $ | 48.0 | $ | 52.3 | $ | 47.4 | $ | 1.7 | $ | 2.2 | $ | 1.9 | $ | 5.6 | $ | 5.3 | $ | 4.6 | |||||||||||||||||
Interest Cost | 46.3 | 40.4 | 43.3 | 2.5 | 2.2 | 2.9 | 3.9 | 3.7 | 4.8 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (85.7) | (79.0) | (76.8) | (3.2) | (3.2) | (3.1) | — | — | — | ||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||
Net Actuarial Loss | 11.4 | 32.4 | 35.0 | 0.6 | 1.0 | 0.8 | 7.4 | 8.2 | 7.0 | ||||||||||||||||||||||||||
Prior Service (Credit) Cost | (0.1) | (0.4) | (0.4) | — | 0.2 | 0.4 | — | 0.1 | 0.2 | ||||||||||||||||||||||||||
Net Periodic Pension Expense | $ | 19.9 | $ | 45.7 | $ | 48.5 | $ | 1.6 | $ | 2.4 | $ | 2.9 | $ | 16.9 | $ | 17.3 | $ | 16.6 | |||||||||||||||||
Settlement Expense | 44.1 | 27.9 | — | 0.8 | 0.4 | 0.8 | — | — | — | ||||||||||||||||||||||||||
Total Pension Expense | $ | 64.0 | $ | 73.6 | $ | 48.5 | $ | 2.4 | $ | 2.8 | $ | 3.7 | $ | 16.9 | $ | 17.3 | $ | 16.6 | |||||||||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||||||||
Discount Rates | 3.03 | % | 4.81 | % | 2.75 | % | 3.05 | % | 3.37 | % | 1.34 | % | 0.93 | % | 1.40 | % | 2.80 | % | 2.45 | % | 3.37 | % | |||||||||||||
5.49 | % | 5.22 | % | 3.06 | % | 3.03 | % | ||||||||||||||||||||||||||||
Rate of Increase in Compensation Level | 4.97 | 4.97 | 4.97 | 1.50 | 1.50 | 1.50 | 4.97 | 4.97 | 4.97 | ||||||||||||||||||||||||||
Expected Long-Term Rate of Return on Assets | 5.25 | 6.00 | 5.25 | 5.00 | 5.25 | 1.79 | 1.28 | 1.72 | N/A | N/A | N/A | ||||||||||||||||||||||||
6.50 |
U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||||||||||||
(In Millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
Beginning Balance | $ | 1,401.3 | $ | 1,470.6 | $ | 210.1 | $ | 236.1 | $ | 147.7 | $ | 162.3 | ||||||||
Service Cost | 48.0 | 52.3 | 1.7 | 2.2 | 5.6 | 5.3 | ||||||||||||||
Interest Cost | 46.3 | 40.4 | 2.5 | 2.2 | 3.9 | 3.7 | ||||||||||||||
Employee Contributions | — | — | 0.7 | 0.6 | — | — | ||||||||||||||
Plan Amendment | — | — | (0.3) | (1.4) | — | — | ||||||||||||||
Actuarial Loss (Gain) | (281.2) | (19.1) | (64.3) | (10.4) | (20.0) | (2.0) | ||||||||||||||
Settlements | (125.0) | (132.1) | (0.9) | (9.4) | — | — | ||||||||||||||
Benefits Paid | (11.7) | (10.8) | (4.6) | (5.5) | (23.6) | (21.6) | ||||||||||||||
Foreign Exchange Rate Changes | — | — | (15.9) | (4.3) | — | — | ||||||||||||||
Ending Balance | $ | 1,077.7 | $ | 1,401.3 | $ | 129.0 | $ | 210.1 | $ | 113.6 | $ | 147.7 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 143 |
(In Millions) | U.S. QUALIFIED PLAN | NON-U.S.PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||
2023 | $ | 90.7 | $ | 4.2 | $ | 20.2 | |||||
2024 | 90.7 | 4.4 | 13.6 | ||||||||
2025 | 93.9 | 4.3 | 14.1 | ||||||||
2026 | 93.5 | 5.2 | 11.6 | ||||||||
2027 | 95.3 | 6.4 | 12.2 | ||||||||
2028-2032 | 464.7 | 33.6 | 54.4 |
U.S. QUALIFIED PLAN | NON-U.S PENSION PLANS | |||||||||||||
(In Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Fair Value of Assets at Beginning of Period | $ | 1,708.9 | $ | 1,793.7 | $ | 198.7 | $ | 211.5 | ||||||
Actual Return on Assets(1) | (395.4) | 58.1 | (46.9) | (0.8) | ||||||||||
Employer Contributions | — | — | 3.6 | 4.5 | ||||||||||
Employee Contributions | — | — | 0.7 | 0.6 | ||||||||||
Settlements | (125.0) | (132.1) | (0.9) | (9.4) | ||||||||||
Benefits Paid | (11.7) | (10.8) | (4.6) | (5.5) | ||||||||||
Foreign Exchange Rate Changes | — | — | (16.1) | (2.2) | ||||||||||
Fair Value of Assets at End of Period | $ | 1,176.8 | $ | 1,708.9 | $ | 134.5 | $ | 198.7 |
144 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 145 |
DECEMBER 31, 2022 | ||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | ||||||||||
Domestic Common Stock | $ | 14.7 | $ | — | $ | — | $ | 14.7 | ||||||
Foreign Common Stock | 0.5 | — | — | 0.5 | ||||||||||
Domestic Corporate Bonds | — | 263.6 | — | 263.6 | ||||||||||
Foreign Corporate Bonds | — | 39.6 | — | 39.6 | ||||||||||
U.S. Government Obligations | — | 77.5 | — | 77.5 | ||||||||||
Non-U.S. Government Obligations | — | 13.8 | — | 13.8 | ||||||||||
Domestic Municipal and Provincial Bonds | — | 16.8 | — | 16.8 | ||||||||||
Foreign Municipal and Provincial Bonds | — | 0.2 | — | 0.2 | ||||||||||
Collective Trust Funds | — | 522.3 | — | 522.3 | ||||||||||
Mutual Funds | 61.4 | — | — | 61.4 | ||||||||||
Cash and Other(1) | (1.1) | — | — | (1.1) | ||||||||||
Total Assets at Fair Value in the Fair Value Hierarchy | $ | 75.5 | $ | 933.8 | $ | — | $ | 1,009.3 | ||||||
Assets Valued at NAV per share | ||||||||||||||
33.2 | ||||||||||||||
35.2 | ||||||||||||||
99.1 | ||||||||||||||
Total Assets at Fair Value | $ | 1,176.8 |
DECEMBER 31, 2021 | ||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | ||||||||||
Domestic Common Stock | $ | 17.5 | $ | — | $ | — | $ | 17.5 | ||||||
Foreign Common Stock | 0.3 | — | — | 0.3 | ||||||||||
Domestic Corporate Bonds | — | 341.7 | — | 341.7 | ||||||||||
Foreign Corporate Bonds | — | 60.9 | — | 60.9 | ||||||||||
U.S. Government Obligations | — | 103.9 | — | 103.9 | ||||||||||
Non-U.S. Government Obligations | — | 20.0 | — | 20.0 | ||||||||||
Domestic Municipal and Provincial Bonds | — | 21.0 | — | 21.0 | ||||||||||
Foreign Municipal and Provincial Bonds | — | 0.3 | — | 0.3 | ||||||||||
Collective Trust Funds | — | 875.3 | — | 875.3 | ||||||||||
Mutual Funds | 108.9 | — | — | 108.9 | ||||||||||
Cash and Other | 8.6 | — | — | 8.6 | ||||||||||
Total Assets at Fair Value in the Fair Value Hierarchy | $ | 135.3 | $ | 1,423.1 | $ | — | $ | 1,558.4 | ||||||
Assets Valued at NAV per share | ||||||||||||||
34.5 | ||||||||||||||
36.7 | ||||||||||||||
79.3 | ||||||||||||||
Total Assets at Fair Value | $ | 1,708.9 |
146 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Accumulated Postretirement Benefit Obligation at Measurement Date: | ||||||||
Retirees and Dependents | $ | 8.1 | $ | 8.7 | ||||
Actives Eligible for Benefits | 0.7 | 1.5 | ||||||
Net Postretirement Benefit Obligation | $ | 8.8 | $ | 10.2 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Net Actuarial (Gain) Loss | $ | (5.6) | $ | (5.3) | ||||
Prior Service (Credit) Cost | (10.6) | (11.5) | ||||||
Gross Amount in Accumulated Other Comprehensive Income | (16.2) | (16.8) | ||||||
Income Tax Effect | (4.1) | (4.2) | ||||||
Net Amount in Accumulated Other Comprehensive Income | $ | (12.1) | $ | (12.6) |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Service Cost | $ | — | $ | — | $ | — | |||||
Interest Cost | 0.3 | 0.3 | 0.7 | ||||||||
Expected Return on Plan Assets | — | — | — | ||||||||
Amortization | |||||||||||
Net Actuarial (Gain) Loss | (0.3) | (0.2) | (0.6) | ||||||||
Prior Service (Credit) Cost | (0.9) | (0.9) | (0.3) | ||||||||
Net Periodic Postretirement Expense | $ | (0.9) | $ | (0.8) | $ | (0.2) |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Beginning Balance | $ | 10.2 | $ | 15.7 | ||||
Service Cost | — | — | ||||||
Interest Cost | 0.3 | 0.3 | ||||||
Plan Amendment | — | — | ||||||
Actuarial (Gain) Loss | 1.6 | (3.3) | ||||||
Net Claims Paid | (3.3) | (2.5) | ||||||
Ending Balance | $ | 8.8 | $ | 10.2 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 147 |
(In Millions) | TOTAL POSTRETIREMENT MEDICAL BENEFITS | ||||
2023 | $ | 1.2 | |||
2024 | 1.1 | ||||
2025 | 1.1 | ||||
2026 | 1.0 | ||||
2027 | 0.9 | ||||
2028-2032 | 3.8 |
148 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions, Except Per Share Information) | 2022 | 2021 | 2020 | ||||||||
Grant-Date Fair Value of Stock Options Vested | $ | — | $ | 2.2 | $ | 4.5 | |||||
Stock Options Exercised | |||||||||||
Intrinsic Value as of Exercise Date | 3.6 | 41.3 | 13.6 | ||||||||
Cash Received | 3.9 | 53.8 | 19.5 | ||||||||
Tax Deduction Benefits Realized | 3.5 | 41.3 | 13.4 |
($ In Millions Except Per Share Information) | SHARES | WEIGHTED AVERAGE EXERCISE PRICE PER SHARE | WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS) | AGGREGATE INTRINSIC VALUE | ||||||||||
Options Outstanding, December 31, 2021 | 509,888 | $ | 71.39 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (63,566) | 61.93 | ||||||||||||
Forfeited, Expired or Cancelled | (4,775) | 88.06 | ||||||||||||
Options Outstanding, December 31, 2022 | 441,547 | $ | 72.58 | 2.7 | $ | 7.0 | ||||||||
Options Exercisable, December 31, 2022 | 441,547 | $ | 72.58 | 2.7 | $ | 7.0 |
($ In Millions) | NUMBER | AGGREGATE INTRINSIC VALUE | ||||||
Restricted Stock Unit Awards Outstanding, December 31, 2021 | 2,001,516 | $ | 239.4 | |||||
Granted | 1,061,573 | |||||||
Distributed | (767,775) | |||||||
Forfeited | (52,131) | |||||||
Restricted Stock Unit Awards Outstanding, December 31, 2022 | 2,243,183 | $ | 198.5 | |||||
Units Convertible, December 31, 2022 | 19,526 | $ | 1.7 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 149 |
NONVESTED RESTRICTED STOCK UNITS | NUMBER | WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT | WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS) | ||||||||
Nonvested at December 31, 2021 | 1,981,990 | $ | 97.56 | 2.3 | |||||||
Granted | 1,061,573 | 110.99 | |||||||||
Vested | (767,775) | 98.51 | |||||||||
Forfeited | (52,131) | 107.70 | |||||||||
Nonvested at December 31, 2022 | 2,223,657 | $ | 103.41 | 2.4 |
150 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
($ In Millions) | ONE YEAR AND LESS | OVER ONE YEAR | TOTAL | ONE YEAR AND LESS | OVER ONE YEAR | TOTAL | ||||||||||||||
Undrawn Commitments(1) | $ | 13,639.2 | $ | 17,321.4 | $ | 30,960.6 | $ | 9,567.0 | $ | 17,855.2 | $ | 27,422.2 | ||||||||
Standby Letters of Credit and Financial Guarantees(2)(3) | 17,553.0 | 409.9 | 17,962.9 | 3,485.6 | 553.9 | 4,039.5 | ||||||||||||||
Commercial Letters of Credit | 25.4 | 1.3 | 26.7 | 68.5 | 1.1 | 69.6 | ||||||||||||||
Securities Lent with Indemnification | 130,311.0 | — | 130,311.0 | 170,445.3 | — | 170,445.3 | ||||||||||||||
Unsettled Reverse Repurchase Agreements | 496.8 | — | 496.8 | — | — | — | ||||||||||||||
Total Off-Balance Sheet Financial Instruments | $ | 162,025.4 | $ | 17,732.6 | $ | 179,758.0 | $ | 183,566.4 | $ | 18,410.2 | $ | 201,976.6 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 151 |
152 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 153 |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||||||||||||||
FAIR VALUE | FAIR VALUE | |||||||||||||||||||
(In Millions) | NOTIONAL VALUE | ASSET(1) | LIABILITY(2) | NOTIONAL VALUE | ASSET(1) | LIABILITY(2) | ||||||||||||||
Derivatives Designated as Hedging under GAAP | ||||||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||
Fair Value Hedges | $ | 4,622.0 | $ | 58.5 | $ | 32.7 | $ | 4,430.5 | $ | 7.6 | $ | 8.7 | ||||||||
Foreign Exchange Contracts | ||||||||||||||||||||
Cash Flow Hedges | 150.9 | 7.4 | 5.7 | 3,697.9 | 61.8 | 12.6 | ||||||||||||||
Net Investment Hedges | 3,765.0 | 283.5 | 12.7 | 4,161.8 | 183.3 | 12.3 | ||||||||||||||
Total Derivatives Designated as Hedging under GAAP | $ | 8,537.9 | $ | 349.4 | $ | 51.1 | $ | 12,290.2 | $ | 252.7 | $ | 33.6 | ||||||||
Derivatives Not Designated as Hedging under GAAP | ||||||||||||||||||||
Non-Designated Risk Management Derivatives | ||||||||||||||||||||
Foreign Exchange Contracts | $ | 55.9 | $ | 0.1 | $ | 0.1 | $ | 109.9 | $ | 0.2 | $ | 0.6 | ||||||||
Other Financial Derivatives(3) | 717.7 | 0.3 | 34.8 | 738.5 | — | 37.5 | ||||||||||||||
Total Non-Designated Risk Management Derivatives | $ | 773.6 | $ | 0.4 | $ | 34.9 | $ | 848.4 | $ | 0.2 | $ | 38.1 | ||||||||
Client-Related and Trading Derivatives | ||||||||||||||||||||
Foreign Exchange Contracts | $ | 288,994.6 | $ | 3,219.1 | $ | 3,169.0 | $ | 315,532.3 | $ | 1,962.1 | $ | 1,973.3 | ||||||||
Interest Rate Contracts | 12,378.2 | 163.5 | 399.1 | 11,570.1 | 132.4 | 90.2 | ||||||||||||||
Total Client-Related and Trading Derivatives | $ | 301,372.8 | $ | 3,382.6 | $ | 3,568.1 | $ | 327,102.4 | $ | 2,094.5 | $ | 2,063.5 | ||||||||
Total Derivatives Not Designated as Hedging under GAAP | $ | 302,146.4 | $ | 3,383.0 | $ | 3,603.0 | $ | 327,950.8 | $ | 2,094.7 | $ | 2,101.6 | ||||||||
Total Gross Derivatives | $ | 310,684.3 | $ | 3,732.4 | $ | 3,654.1 | $ | 340,241.0 | $ | 2,347.4 | $ | 2,135.2 | ||||||||
Less: Netting(4) | 2,810.7 | 1,865.9 | 1,533.8 | 1,283.5 | ||||||||||||||||
Total Derivative Financial Instruments | $ | 921.7 | $ | 1,788.2 | $ | 813.6 | $ | 851.7 |
154 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
(in Millions) | INTEREST INCOME | INTEREST EXPENSE | OTHER OPERATING INCOME | ||||||||||||||||||||||||||
For the Year Ended December 31, | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||
Total amounts on the consolidated statements of income | $ | 2,877.7 | $ | 1,406.5 | $ | 1,643.5 | $ | 990.5 | $ | 23.8 | $ | 200.3 | $ | 191.3 | $ | 243.9 | $ | 194.0 | |||||||||||
Gains (Losses) on fair value hedges recognized on | |||||||||||||||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||||||||||
Recognized on derivatives | 82.8 | 39.1 | (66.3) | (373.4) | (161.6) | 100.2 | — | — | — | ||||||||||||||||||||
Recognized on hedged items | (82.8) | (39.1) | 66.3 | 373.4 | 161.6 | (100.2) | — | — | — | ||||||||||||||||||||
Amounts related to interest settlements on derivatives | (4.4) | (16.2) | (13.2) | 24.1 | 57.1 | 29.9 | — | — | — | ||||||||||||||||||||
Total gains (losses) recognized on fair value hedges | $ | (4.4) | $ | (16.2) | $ | (13.2) | $ | 24.1 | $ | 57.1 | $ | 29.9 | $ | — | $ | — | $ | — | |||||||||||
Gains (Losses) on cash flow hedges recognized on | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||
Net gains (losses) reclassified from AOCI to net income | $ | 0.6 | $ | 10.5 | $ | 27.4 | $ | — | $ | — | $ | — | $ | (4.3) | $ | (6.0) | $ | 0.2 | |||||||||||
Interest Rate Contracts | |||||||||||||||||||||||||||||
Net gains (losses) reclassified from AOCI to net income | — | — | 0.5 | — | — | — | — | — | — | ||||||||||||||||||||
Total gains (losses) reclassified from AOCI to net income on cash flow hedges | $ | 0.6 | $ | 10.5 | $ | 27.9 | $ | — | $ | — | $ | — | $ | (4.3) | $ | (6.0) | $ | 0.2 |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||||||||
(In Millions) | CARRYING VALUE OF THE HEDGED ITEMS | CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(1)(3) | CARRYING VALUE OF THE HEDGED ITEMS | CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(2)(3) | ||||||||||
Available for Sale Debt Securities(4) | $ | 1,820.8 | $ | (60.2) | $ | 1,677.4 | $ | 11.1 | ||||||
Senior Notes and Long-Term Subordinated Debt | 2,746.2 | (294.0) | 2,745.6 | 59.5 | ||||||||||
Total | $ | 4,567.0 | $ | (354.2) | $ | 4,423.0 | $ | 70.6 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 155 |
(In Millions) | DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME | AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME | ||||||||||||
2022 | 2021 | 2020 | ||||||||||||
Non-designated risk management derivatives | ||||||||||||||
Foreign Exchange Contracts | $ | (3.1) | $ | 1.2 | $ | 6.4 | ||||||||
Other Financial Derivatives(1) | (22.2) | (21.3) | (18.3) | |||||||||||
Gains (Losses) from non-designated risk management derivatives | $ | (25.3) | $ | (20.1) | $ | (11.9) | ||||||||
Client-related and trading derivatives | ||||||||||||||
Foreign Exchange Contracts | $ | 288.6 | $ | 292.6 | $ | 290.4 | ||||||||
Interest Rate Contracts | 9.6 | 15.7 | 22.4 | |||||||||||
Gains (Losses) from client-related and trading derivatives | $ | 298.2 | $ | 308.3 | $ | 312.8 | ||||||||
Total gains (losses) from derivatives not designated as hedging under GAAP | $ | 272.9 | $ | 288.2 | $ | 300.9 |
156 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | |||||||||||||||||
(In Millions) | GROSS RECOGNIZED ASSETS | GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3) | NET AMOUNTS PRESENTED IN THE BALANCE SHEET | GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4) | NET AMOUNT(5) | ||||||||||||
Derivative Assets(1) | |||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 2,928.9 | $ | 2,666.4 | $ | 262.5 | $ | 5.0 | $ | 257.5 | |||||||
Interest Rate Swaps OTC | 217.6 | 144.3 | 73.3 | — | 73.3 | ||||||||||||
Interest Rate Swaps Exchange Cleared | 4.4 | — | 4.4 | — | 4.4 | ||||||||||||
Other Financial Derivative | 0.3 | — | 0.3 | — | 0.3 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,151.2 | 2,810.7 | 340.5 | 5.0 | 335.5 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 581.2 | — | 581.2 | — | 581.2 | ||||||||||||
Total Derivatives | 3,732.4 | 2,810.7 | 921.7 | 5.0 | 916.7 | ||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 12,494.2 | $ | 11,423.9 | $ | 1,070.3 | $ | 1,070.3 | $ | — |
DECEMBER 31, 2021 | |||||||||||||||||
(In Millions) | GROSS RECOGNIZED ASSETS | GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3) | NET AMOUNTS PRESENTED IN THE BALANCE SHEET | GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4) | NET AMOUNT(5) | ||||||||||||
Derivative Assets(1) | |||||||||||||||||
Foreign Exchange Contracts OTC | $ | 1,762.7 | $ | 1,530.7 | $ | 232.0 | $ | 2.8 | $ | 229.2 | |||||||
Interest Rate Swaps OTC | 140.0 | 3.1 | 136.9 | — | 136.9 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,902.7 | 1,533.8 | 368.9 | 2.8 | 366.1 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 444.7 | — | 444.7 | — | 444.7 | ||||||||||||
Total Derivatives | 2,347.4 | 1,533.8 | 813.6 | 2.8 | 810.8 | ||||||||||||
Securities Purchased under Agreements to Resell(2) | $ | 2,078.9 | $ | 1,392.5 | $ | 686.4 | $ | 686.4 | $ | — |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 157 |
DECEMBER 31, 2022 | |||||||||||||||||
(In Millions) | GROSS RECOGNIZED LIABILITIES | GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3) | NET AMOUNTS PRESENTED IN THE BALANCE SHEET | GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4) | NET AMOUNT(5) | ||||||||||||
Derivative Liabilities(1) | |||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,082.3 | $ | 1,826.7 | $ | 255.6 | $ | — | $ | 255.6 | |||||||
Interest Rate Swaps OTC | 426.5 | 5.9 | 420.6 | — | 420.6 | ||||||||||||
Interest Rate Swaps Exchange Cleared | 5.3 | — | 5.3 | — | 5.3 | ||||||||||||
Other Financial Derivatives | 34.8 | 33.3 | 1.5 | — | 1.5 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,548.9 | 1,865.9 | 683.0 | — | 683.0 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 1,105.2 | — | 1,105.2 | — | 1,105.2 | ||||||||||||
Total Derivatives | 3,654.1 | 1,865.9 | 1,788.2 | — | 1,788.2 | ||||||||||||
Securities Sold under Agreements to Repurchase(2) | $ | 11,991.1 | $ | 11,423.9 | $ | 567.2 | $ | 567.2 | $ | — |
DECEMBER 31, 2021 | |||||||||||||||||
(In Millions) | GROSS RECOGNIZED LIABILITIES | GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3) | NET AMOUNTS PRESENTED IN THE BALANCE SHEET | GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4) | NET AMOUNT(5) | ||||||||||||
Derivative Liabilities(1) | |||||||||||||||||
Foreign Exchange Contracts OTC | $ | 1,430.1 | $ | 1,234.5 | $ | 195.6 | $ | — | $ | 195.6 | |||||||
Interest Rate Swaps OTC | 98.7 | 48.1 | 50.6 | — | 50.6 | ||||||||||||
Interest Rate Swaps Exchange Cleared | 0.2 | — | 0.2 | — | 0.2 | ||||||||||||
Other Financial Derivatives | 37.5 | 0.9 | 36.6 | — | 36.6 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,566.5 | 1,283.5 | 283.0 | — | 283.0 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 568.7 | — | 568.7 | — | 568.7 | ||||||||||||
Total Derivatives | 2,135.2 | 1,283.5 | 851.7 | — | 851.7 | ||||||||||||
Securities Sold under Agreements to Repurchase(2) | $ | 1,924.4 | $ | 1,392.5 | $ | 531.9 | $ | 531.9 | $ | — |
158 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 159 |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Billions) | 2022 | 2021 | ||||||
Securities | ||||||||
Obligations of States and Political Subdivisions | $ | 3.2 | $ | 3.7 | ||||
Government Sponsored Agency and Other Securities | 28.2 | 35.6 | ||||||
Loans | 11.8 | 15.3 | ||||||
Total Pledged Assets | $ | 43.2 | $ | 54.6 |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | DERIVATIVE CONTRACTS | |||||||||||||
(In Millions) | DECEMBER 31, 2022 | DECEMBER 31, 2021 | DECEMBER 31, 2022 | DECEMBER 31, 2021 | ||||||||||
Debt Securities | ||||||||||||||
Available for Sale | $ | 464.7 | $ | 524.1 | $ | 34.7 | $ | 17.6 |
160 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
Collateral that may be repledged or sold | ||||||||
Reverse repurchase agreements(1) | $ | 12,119.4 | $ | 1,457.0 | ||||
Derivative contracts | 5.0 | 2.8 | ||||||
Collateral that may not be repledged or sold | ||||||||
Reverse repurchase agreements | 450.0 | 650.0 | ||||||
Total Collateral Accepted(2) | $ | 12,574.4 | $ | 2,109.8 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 161 |
162 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,496.3 | $ | 2,487.3 | $ | 2,321.6 | |||||
Foreign Exchange Trading Income | 281.0 | 279.0 | 276.3 | ||||||||
Other Noninterest Income | 250.7 | 261.2 | 222.5 | ||||||||
Total Noninterest Income | 3,028.0 | 3,027.5 | 2,820.4 | ||||||||
Net Interest Income(1) | 1,072.7 | 637.2 | 665.5 | ||||||||
Revenue(1) | 4,100.7 | 3,664.7 | 3,485.9 | ||||||||
Provision for Credit Losses | 2.4 | (33.8) | 38.1 | ||||||||
Noninterest Expense | 3,092.7 | 2,863.0 | 2,752.7 | ||||||||
Income before Income Taxes(1) | 1,005.6 | 835.5 | 695.1 | ||||||||
Provision for Income Taxes(1) | 243.2 | 194.1 | 174.4 | ||||||||
Net Income | $ | 762.4 | $ | 641.4 | $ | 520.7 | |||||
Percentage of Consolidated Net Income | 57 | % | 41 | % | 43 | % | |||||
Average Assets | $ | 115,646.4 | $ | 120,883.2 | $ | 104,790.6 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,936.3 | $ | 1,873.8 | $ | 1,673.4 | |||||
Foreign Exchange Trading Income | 7.6 | 13.6 | 14.1 | ||||||||
Other Noninterest Income | 137.7 | 188.2 | 168.0 | ||||||||
Total Noninterest Income | 2,081.6 | 2,075.6 | 1,855.5 | ||||||||
Net Interest Income(1) | 860.1 | 781.1 | 812.1 | ||||||||
Revenue(1) | 2,941.7 | 2,856.7 | 2,667.6 | ||||||||
Provision for Credit Losses | 9.6 | (47.7) | 86.9 | ||||||||
Noninterest Expense | 1,815.5 | 1,651.1 | 1,559.7 | ||||||||
Income before Income Taxes(1) | 1,116.6 | 1,253.3 | 1,021.0 | ||||||||
Provision for Income Taxes(1) | 310.0 | 317.0 | 291.8 | ||||||||
Net Income | $ | 806.6 | $ | 936.3 | $ | 729.2 | |||||
Percentage of Consolidated Net Income | 60 | % | 61 | % | 60 | % | |||||
Average Assets | $ | 36,905.5 | $ | 35,480.0 | $ | 32,020.5 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | $ | (235.6) | $ | (21.3) | $ | (18.3) | |||||
Net Interest Income(1) | — | — | — | ||||||||
Revenue(1) | (235.6) | (21.3) | (18.3) | ||||||||
Noninterest Expense | 74.7 | 21.8 | 35.8 | ||||||||
Income (Loss) before Income Taxes(1) | (310.3) | (43.1) | (54.1) | ||||||||
Provision (Benefit) for Income Taxes(1) | (77.3) | (10.7) | (13.5) | ||||||||
Net Income | $ | (233.0) | $ | (32.4) | $ | (40.6) | |||||
Percentage of Consolidated Net Income | (17) | % | (2) | % | (3) | % | |||||
Average Assets | $ | — | $ | — | $ | — |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 163 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | $ | 3,995.0 | |||||
Foreign Exchange Trading Income | 288.6 | 292.6 | 290.4 | ||||||||
Other Noninterest Income | 152.8 | 428.1 | 372.2 | ||||||||
Total Noninterest Income | 4,874.0 | 5,081.8 | 4,657.6 | ||||||||
Net Interest Income | 1,887.2 | 1,382.7 | 1,443.2 | ||||||||
Revenue | 6,761.2 | 6,464.5 | 6,100.8 | ||||||||
Provision for Credit Losses | 12.0 | (81.5) | 125.0 | ||||||||
Noninterest Expense | 4,982.9 | 4,535.9 | 4,348.2 | ||||||||
Income before Income Taxes | 1,766.3 | 2,010.1 | 1,627.6 | ||||||||
Provision for Income Taxes | 430.3 | 464.8 | 418.3 | ||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Average Assets | $ | 152,551.9 | $ | 156,363.2 | $ | 136,811.1 |
(In Millions) | TOTAL ASSETS | % OF TOTAL | TOTAL REVENUE(1) | % OF TOTAL | INCOME BEFORE INCOME TAXES | % OF TOTAL | NET INCOME | % OF TOTAL | ||||||||||||||||||
2022 | ||||||||||||||||||||||||||
Non-U.S. | $ | 35,991.3 | 23 | % | $ | 2,273.3 | 34 | % | $ | 560.9 | 32 | % | $ | 420.2 | 31 | % | ||||||||||
U.S. | 119,045.4 | 77 | % | 4,487.9 | 66 | % | 1,205.4 | 68 | % | 915.8 | 69 | % | ||||||||||||||
Total | $ | 155,036.7 | 100 | % | $ | 6,761.2 | 100 | % | $ | 1,766.3 | 100 | % | $ | 1,336.0 | 100 | % | ||||||||||
2021 | ||||||||||||||||||||||||||
Non-U.S. | $ | 38,555.3 | 21 | % | $ | 2,017.5 | 31 | % | $ | 569.4 | 28 | % | $ | 426.7 | 28 | % | ||||||||||
U.S. | 145,334.5 | 79 | % | 4,447.0 | 69 | % | 1,440.7 | 72 | % | 1,118.6 | 72 | % | ||||||||||||||
Total | $ | 183,889.8 | 100 | % | $ | 6,464.5 | 100 | % | $ | 2,010.1 | 100 | % | $ | 1,545.3 | 100 | % | ||||||||||
2020 | ||||||||||||||||||||||||||
Non-U.S. | $ | 38,393.8 | 23 | % | $ | 1,737.6 | 28 | % | $ | 404.0 | 25 | % | $ | 302.6 | 25 | % | ||||||||||
U.S. | 131,610.1 | 77 | % | 4,363.2 | 72 | % | 1,223.6 | 75 | % | 906.7 | 75 | % | ||||||||||||||
Total | $ | 170,003.9 | 100 | % | $ | 6,100.8 | 100 | % | $ | 1,627.6 | 100 | % | $ | 1,209.3 | 100 | % |
164 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||||||||||||||||||||
($ In Millions) | STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | ||||||||||||||||||||||
BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | |||||||||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | $ | 9,539.7 | 10.8 | % | $ | 9,539.7 | 11.5 | % | $ | 10,277.1 | 11.9 | % | $ | 10,277.1 | 13.2 | % | ||||||||||
The Northern Trust Company | 10,111.2 | 11.6 | 10,111.2 | 12.4 | 10,315.7 | 12.0 | 10,315.7 | 13.5 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | 5,684.4 | 6.5 | 5,286.2 | 6.5 | 5,578.7 | 6.5 | 4,964.5 | 6.5 | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | 10,397.4 | 11.8 | 10,397.4 | 12.5 | 11,142.2 | 12.9 | 11,142.2 | 14.3 | ||||||||||||||||||
The Northern Trust Company | 10,111.2 | 11.6 | 10,111.2 | 12.4 | 10,315.7 | 12.0 | 10,315.7 | 13.5 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | 5,286.5 | 6.0 | 4,990.9 | 6.0 | 5,177.6 | 6.0 | 4,668.4 | 6.0 | ||||||||||||||||||
The Northern Trust Company | 6,996.2 | 8.0 | 6,506.1 | 8.0 | 6,866.1 | 8.0 | 6,110.2 | 8.0 | ||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | 12,245.5 | 13.9 | 12,045.9 | 14.5 | 12,126.8 | 14.1 | 11,942.0 | 15.3 | ||||||||||||||||||
The Northern Trust Company | 11,766.8 | 13.5 | 11,567.2 | 14.2 | 11,158.4 | 13.0 | 10,973.7 | 14.4 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | 8,810.8 | 10.0 | 8,318.1 | 10.0 | 8,629.3 | 10.0 | 7,780.7 | 10.0 | ||||||||||||||||||
The Northern Trust Company | 8,745.3 | 10.0 | 8,132.6 | 10.0 | 8,582.6 | 10.0 | 7,637.8 | 10.0 | ||||||||||||||||||
Tier 1 Leverage | ||||||||||||||||||||||||||
Northern Trust Corporation | 10,397.4 | 7.1 | 10,397.4 | 7.1 | 11,142.2 | 6.9 | 11,142.2 | 6.9 | ||||||||||||||||||
The Northern Trust Company | 10,111.2 | 6.9 | 10,111.2 | 6.9 | 10,315.7 | 6.4 | 10,315.7 | 6.4 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | 7,323.8 | 5.0 | 7,323.8 | 5.0 | 8,019.5 | 5.0 | 8,019.5 | 5.0 | ||||||||||||||||||
Supplementary Leverage(1) | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 10,397.4 | 7.9 | N/A | N/A | 11,142.2 | 8.2 | ||||||||||||||||||
The Northern Trust Company | N/A | N/A | 10,111.2 | 7.7 | N/A | N/A | 10,315.7 | 7.6 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | N/A | N/A | 3,931.5 | 3.0 | N/A | N/A | 4,081.7 | 3.0 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 165 |
DECEMBER 31, | ||||||||
(In Millions) | 2022 | 2021 | ||||||
ASSETS | ||||||||
Cash on Deposit with Subsidiary Bank | $ | 601.4 | $ | 1,731.7 | ||||
Advances to Wholly-Owned Subsidiaries – Banks | 4,010.0 | 2,810.0 | ||||||
Investments in Wholly-Owned Subsidiaries – Banks | 10,897.1 | 11,120.9 | ||||||
– Nonbank | 194.7 | 185.3 | ||||||
Other Assets | 1,226.3 | 890.2 | ||||||
Total Assets | $ | 16,929.5 | $ | 16,738.1 | ||||
LIABILITIES | ||||||||
Senior Notes | $ | 2,724.2 | $ | 2,505.5 | ||||
Long-Term Debt | 2,066.2 | 1,145.7 | ||||||
Other Liabilities | 879.6 | 1,070.1 | ||||||
Total Liabilities | 5,670.0 | 4,721.3 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred Stock | 884.9 | 884.9 | ||||||
Common Stock | 408.6 | 408.6 | ||||||
Additional Paid-in Capital | 983.5 | 939.3 | ||||||
Retained Earnings | 13,798.5 | 13,117.3 | ||||||
Accumulated Other Comprehensive Income (Loss) | (1,569.2) | (35.6) | ||||||
Treasury Stock | (3,246.8) | (3,297.7) | ||||||
Total Stockholders’ Equity | 11,259.5 | 12,016.8 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 16,929.5 | $ | 16,738.1 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
OPERATING INCOME | |||||||||||
Dividends – Bank Subsidiaries | $ | — | $ | 751.1 | $ | 900.0 | |||||
– Nonbank Subsidiaries | — | 8.3 | — | ||||||||
Intercompany Interest and Other Charges | 112.8 | 20.1 | 46.5 | ||||||||
Interest and Other Income | (5.7) | 32.3 | 19.1 | ||||||||
Total Operating Income | 107.1 | 811.8 | 965.6 | ||||||||
OPERATING EXPENSES | |||||||||||
Interest Expense | 132.3 | 71.3 | 104.2 | ||||||||
Other Operating Expenses | 11.9 | 36.7 | 26.2 | ||||||||
Total Operating Expenses | 144.2 | 108.0 | 130.4 | ||||||||
Income (Loss) before Income Taxes and Equity in Undistributed Net Income of Subsidiaries | (37.1) | 703.8 | 835.2 | ||||||||
Benefit for Income Taxes | 16.9 | 25.7 | 28.2 | ||||||||
Income (Loss) before Equity in Undistributed Net Income of Subsidiaries | (20.2) | 729.5 | 863.4 | ||||||||
Equity in Undistributed Net Income of Subsidiaries – Banks | 1,338.5 | 803.3 | 326.0 | ||||||||
– Nonbank | 17.7 | 12.5 | 19.9 | ||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Preferred Stock Dividends | 41.8 | 41.8 | 56.2 | ||||||||
Net Income Applicable to Common Stock | $ | 1,294.2 | $ | 1,503.5 | $ | 1,153.1 |
166 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2022 | 2021 | 2020 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | $ | 1,336.0 | $ | 1,545.3 | $ | 1,209.3 | |||||
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities | |||||||||||
Equity in Undistributed Net Income of Subsidiaries | (1,356.2) | (815.8) | (345.9) | ||||||||
Change in Prepaid Expenses | (3.8) | 0.1 | 398.5 | ||||||||
Change in Accrued Income Taxes | 36.6 | 2.2 | 3.7 | ||||||||
Other Operating Activities, net | (608.2) | 236.6 | 300.3 | ||||||||
Net Cash (Used in) Provided by Operating Activities | (595.6) | 968.4 | 1,565.9 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Investments in and Advances to Subsidiaries, net | (1,200.1) | (140.0) | (800.0) | ||||||||
Other Investing Activities, net | (0.1) | 5.1 | 1.8 | ||||||||
Net Cash Used in Investing Activities | (1,200.2) | (134.9) | (798.2) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from Senior Notes and Long-Term Debt | 1,988.8 | — | 993.2 | ||||||||
Repayments of Senior Notes | (500.0) | (500.0) | (508.6) | ||||||||
Repayment of Floating Rate Capital Debt | — | (278.8) | — | ||||||||
Redemption of Preferred Stock - Series C | — | — | (400.0) | ||||||||
Treasury Stock Purchased | (35.4) | (267.6) | (299.8) | ||||||||
Net Proceeds from Stock Options | 3.9 | 53.8 | 19.5 | ||||||||
Cash Dividends Paid on Common Stock | (750.2) | (583.3) | (584.6) | ||||||||
Cash Dividends Paid on Preferred Stock | (46.5) | (41.8) | (45.9) | ||||||||
Other Financing Activities, net | 4.9 | (0.1) | 15.4 | ||||||||
Net Cash Provided by (Used in) Financing Activities | 665.5 | (1,617.8) | (810.8) | ||||||||
Net Change in Cash on Deposit with Subsidiary Bank | (1,130.3) | (784.3) | (43.1) | ||||||||
Cash on Deposit with Subsidiary Bank at Beginning of Year | 1,731.7 | 2,516.0 | 2,559.1 | ||||||||
Cash on Deposit with Subsidiary Bank at End of Year | $ | 601.4 | $ | 1,731.7 | $ | 2,516.0 |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 167 |
168 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 169 |
170 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
For Northern Trust Corporation and Subsidiaries: | ||
Consolidated Balance Sheets - December 31, 2022 and 2021 | ||
Consolidated Statements of Income - Years Ended December 31, 2022, 2021, and 2020 | ||
Consolidated Statements of Comprehensive Income - Years Ended December 31, 2022, 2021, and 2020 | ||
Consolidated Statements of Changes in Stockholders’ Equity - Years Ended December 31, 2022, 2021, and 2020 | ||
Consolidated Statements of Cash Flows - Years Ended December 31, 2022, 2021, and 2020 | ||
Notes to Consolidated Financial Statements | ||
Report of Independent Registered Public Accounting Firm (KPMG LLP, Chicago, IL, Auditor Firm ID: 185) |
Exhibit Number | Description | ||||
4.4 | Certain instruments defining the rights of the holders of long-term debt of the Corporation and certain of its subsidiaries, none of which authorize a total amount of indebtedness in excess of 10% of the total assets of the Corporation and its subsidiaries on a consolidated basis, have not been filed as exhibits. The Corporation hereby agrees to furnish a copy of any of these agreements to the SEC upon request. | ||||
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 171 |
Exhibit Number | Description | ||||
172 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
Exhibit Number | Description | ||||
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 173 |
Exhibit Number | Description | ||||
101 | Includes the following financial and related information from the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | ||||
104 | The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL. |
174 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
Northern Trust Corporation | |||||
(Registrant) | |||||
By: | /s/ Michael G. O’Grady | ||||
Michael G. O’Grady | |||||
Chairman and Chief Executive Officer |
2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION 175 |
Signature | Capacity | |||||||
/s/ Michael G. O'Grady | Chairman and Chief Executive Officer (Principal Executive Officer) | |||||||
Michael G. O’Grady | ||||||||
/s/ Jason J. Tyler | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||
Jason J. Tyler | ||||||||
/s/ Lauren Allnutt | Executive Vice President and Controller (Principal Accounting Officer) | |||||||
Lauren Allnutt | ||||||||
/s/ Linda Walker Bynoe | Director | |||||||
Linda Walker Bynoe | ||||||||
/s/ Susan Crown | Director | |||||||
Susan Crown | ||||||||
/s/ Dean M. Harrison | Director | |||||||
Dean M. Harrison | ||||||||
/s/ Jay L. Henderson | Director | |||||||
Jay L. Henderson | ||||||||
/s/ Marcy S. Klevorn | Director | |||||||
Marcy S. Klevorn | ||||||||
/s/ Siddharth N. (Bobby) Mehta | Director | |||||||
Siddharth N. (Bobby) Mehta | ||||||||
/s/ Jose Luis Prado | Director | |||||||
Jose Luis Prado | ||||||||
/s/ Martin P. Slark | Director | |||||||
Martin P. Slark | ||||||||
/s/ David H.B. Smith, Jr. | Director | |||||||
David H.B. Smith, Jr. | ||||||||
/s/ Donald Thompson | Director | |||||||
Donald Thompson | ||||||||
/s/ Charles A. Tribbett, III | Director | |||||||
Charles A. Tribbett, III |
176 2022 ANNUAL REPORT | NORTHERN TRUST CORPORATION |
NTAC:3NS-20 |
NORTHERN TRUST CORPORATION | ||||||||
By: | /s/ Kristie Marshiano | |||||||
Name: | Kristie Marshiano | |||||||
Title: | Senior Vice President, Head of Total Rewards | |||||||
NTAC:3NS-20 |
NTAC:3NS-20 |
NORTHERN TRUST CORPORATION | ||||||||
By: | /s/ Kristie Marshiano | |||||||
Name: | Kristie Marshiano | |||||||
Title: | Senior Vice President, Head of Total Rewards | |||||||
NTAC:3NS-20 |
NTAC:3NS-20 |
NTAC:3NS-20 |
NORTHERN TRUST CORPORATION | ||||||||
By: | /s/ Kristie Marshiano | |||||||
Name: | Kristie Marshiano | |||||||
Title: | Senior Vice President, Head of Total Rewards | |||||||
NTAC:3NS-20 |
NTAC:3NS-20 |
THE NORTHERN TRUST COMPANY | ||||||||
By: | /s/ Michael G. O'Grady | |||||||
Name: | Michael G. O'Grady | |||||||
Title: | Chief Executive Officer | |||||||
(Principal Executive Officer) |
NTAC:3NS-20 |
Percent Owned | Jurisdiction of Incorporation | |||||||
The Northern Trust Company | 100% | Illinois | ||||||
Equity Data Science, Inc. | 18.2% | Delaware | ||||||
Equity Data Science India Private Limited | 99.9% | India | ||||||
MFC Company, Inc. | 100% | Delaware | ||||||
Norlease, Inc. | 100% | Delaware | ||||||
Northern CDE Corporation | 100% | Illinois | ||||||
Northern Community Investments, LLC | 100% | Illinois | ||||||
TNT-APF NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Beacon Point NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-BH NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 10, LLC | 100% | Illinois | ||||||
TNT-CASFV NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 7, LLC | 100% | Illinois | ||||||
TNT-Clinica Tepeyac NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Colorado Coalition NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-DHA Joli NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-DHA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 2, LLC | 100% | Illinois | ||||||
TNT-Eastside NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 1, LLC | 100% | Illinois | ||||||
TNT-GLCAC NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-GNG NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Guadalupe NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-HCCH NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-HHO NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 5, LLC | 100% | Illinois | ||||||
TNT-HopeWorks NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 6, LLC | 100% | Illinois | ||||||
TNT-HW 1 NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-IndieDwell Brawley NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-IndieDwell NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 8, LLC | 100% | Illinois | ||||||
TNT-Indigo NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Jewel NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-JT NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Live6 NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Marygrove NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-MG Immaculata NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-ML NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-New Legacy NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Overtown NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-PBSA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 3, LLC | 100% | Illinois | ||||||
TNT-RWA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 9, LLC | 100% | Illinois | ||||||
TNT-Student U NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 4, LLC | 100% | Illinois |
Percent Owned | Jurisdiction of Incorporation | |||||||
TNT-WBP NMTC Fund, LLC | 100% | Illinois | ||||||
Northern Operating Solutions Private Limited | 100% | India | ||||||
Northern Trust Company of California | 100% | California | ||||||
Northern Trust Guernsey Holdings Limited | 100% | Guernsey | ||||||
Northern Trust (Guernsey) Limited | 100% | Guernsey | ||||||
Northern Trust Hedge Fund Services LLC | 100% | Delaware | ||||||
Northern Trust Holdings Limited | 100% | England | ||||||
Northern Trust Global Services SE | 100% | Luxembourg | ||||||
Northern Trust Investments, Inc. | 100% | Illinois | ||||||
Belvedere Advisors LLC | 100% | California | ||||||
Northern Trust Global Investments Japan, K.K. | 100% | Japan | ||||||
Northern Trust Investor Services Limited | 100% | England | ||||||
NT Property Nominees 1A Limited | 100% | England | ||||||
NT Property Nominees 1B Limited | 100% | England | ||||||
NT Property Nominees 2A Limited | 100% | England | ||||||
NT Property Nominees 2B Limited | 100% | England | ||||||
Northern Trust Pension Plan (Guernsey) Limited | 100% | Guernsey | ||||||
Nortrust Nominees Limited | 100% | England | ||||||
NT Partnership Rep, LLC | 100% | Illinois | ||||||
NTC-Dormae NMTC Fund, LLC | 100% | Delaware | ||||||
The Northern Trust Company of Delaware | 100% | Delaware | ||||||
The Northern Trust Company of Nevada | 100% | Nevada | ||||||
The Northern Trust Company UK Pension Plan Limited | 100% | England | ||||||
The Northern Trust Company, Canada | 100% | Ontario, Canada | ||||||
The Northern Trust International Banking Corporation | 100% | Edge Act | ||||||
Northern Operating Services Private Limited | 100% | India | ||||||
Northern Trust Asset Management Australia Pty Ltd | 100% | Australia | ||||||
Northern Trust Cayman International, Ltd. | 100% | Cayman Islands, BWI | ||||||
Northern Trust Equities Limited | 100% | England | ||||||
Northern Trust Fund Managers (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Global Fund Services Cayman Limited | 100% | Cayman Islands, BWI | ||||||
Northern Trust Management Services Asia Pte. Ltd. | 100% | Singapore | ||||||
Northern Operating Services Asia Inc. | 99.99% | Philippines | ||||||
The Northern Trust Company of Hong Kong Limited | 100% | Hong Kong | ||||||
Northern Trust Management Services Limited | 100% | England | ||||||
Northern Trust Global Investments Limited | 100% | England | ||||||
Northern Trust Partners Scotland Limited | 100% | Scotland | ||||||
Northern Trust Securities Australia Pty Ltd | 100% | Australia | ||||||
Northern Trust Securities LLP | 100% | England | ||||||
NT Global Advisors, Inc. | 100% | Ontario, Canada | ||||||
NT Secretarial Services Limited | 100% | England | ||||||
The Northern Trust Scottish Limited Partnership | 100% | Scotland | ||||||
Northern Trust (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Fiduciary Services (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Fund Services (Ireland) Limited | 100% | Ireland |
Percent Owned | Jurisdiction of Incorporation | |||||||
Northern Trust International Fund Administration Services (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Management Services (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Nominees (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust Pension Trustees (Ireland) Limited | 100% | Ireland | ||||||
Northern Trust GFS Holdings Limited | 100% | Guernsey | ||||||
Northern Trust Fiduciary Services (Guernsey) Limited | 100% | Guernsey | ||||||
Arnold Limited | 100% | Guernsey | ||||||
Doyle Administration Limited | 100% | Guernsey | ||||||
Barfield Nominees Limited | 100% | Guernsey | ||||||
Truchot Limited | 100% | Guernsey | ||||||
Vivian Limited | 100% | Guernsey | ||||||
Northern Trust International Fund Administration Services (Guernsey) Limited | 100% | Guernsey | ||||||
Admiral Nominees Limited | 100% | Guernsey | ||||||
Nelson Representatives Limited | 100% | Guernsey | ||||||
NT EBT Limited | 100% | England | ||||||
The Northern Trust Company of Saudi Arabia (a closed joint stock company) | 100% | Kingdom of Saudi Arabia | ||||||
50 South Capital Advisors, LLC | 100% | Delaware | ||||||
Equilend Holdings LLC | 10% | Delaware | ||||||
Northern Trust European Holdings Limited | 100% | England | ||||||
Northern Trust Securities, Inc. | 100% | Delaware | ||||||
Northern Trust Services, Inc. | 100% | Illinois | ||||||
Nortrust Realty Management, Inc. | 100% | Illinois |
Date: | February 28, 2023 | /s/ Michael G. O’Grady | ||||||
Michael G. O’Grady | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | February 28, 2023 | /s/ Jason J. Tyler | ||||||
Jason J. Tyler | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
/s/ Michael G. O’Grady | ||
Michael G. O’Grady | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
February 28, 2023 |
/s/ Jason J. Tyler | ||
Jason J. Tyler | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
February 28, 2023 |