UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-K ____________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36609 ___________________ ...

Northern Trust Corporation (NASDAQ:NTRS) Q4 2022 Earnings Conference Call January 19, 2023 9:00 AM ET Company Participants Michael O???Grady - Chairman, Chief Executive Officer Jason Tyler - Executive Vice President, Chief Financial Officer Jennifer Childe - Senior Vice President, Director of Investor Relations Mark Bette - Investor Relations Conference Call Participants Glenn Schorr - Evercore Betsy Graseck - Morgan Stanley Brennan Hawken - UBS Alex Blostein - Goldman Sachs Ken Usdin - Jefferies Brian Bede ...

[Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights%20(unaudited)) Presents Northern Trust's financial performance and position for Q3 and 9M 2022, highlighting key metrics, balance sheet, client assets, and financial ratios Condensed Income Statements (Three Months Ended September 30) | Indicator | 2022 ($ In Millions) | 2021 ($ In Millions) | % Change | | :-------------------- | :------------------- | :------------------- | :------- | | Noninterest Income | 1,241.8 | 1,287.4 | (4)% | | Net Interest Income | 513.0 | 346.4 | 48 | | Total Revenue | 1,754.8 | 1,633.8 | 7 | | Provision for Credit Losses | 0.5 | (13.0) | N/M | | Noninterest Expense | 1,229.8 | 1,128.7 | 9 | | Income before Income Taxes | 524.5 | 518.1 | 1 | | Provision for Income Taxes | 129.7 | 122.4 | 6 | | Net Income | 394.8 | 395.7 | — % | | Net Income — Diluted (Per Common Share) | 1.80 | 1.80 | — | Condensed Income Statements (Nine Months Ended September 30) | Indicator | 2022 ($ In Millions) | 2021 ($ In Millions) | % Change | | :-------------------- | :------------------- | :------------------- | :------- | | Noninterest Income | 3,889.5 | 3,775.4 | 3 % | | Net Interest Income | 1,352.7 | 1,022.1 | 32 | | Total Revenue | 5,242.2 | 4,797.5 | 9 | | Provision for Credit Losses | 7.0 | (70.0) | N/M | | Noninterest Expense | 3,659.3 | 3,367.0 | 9 | | Income before Income Taxes | 1,575.9 | 1,500.5 | 5 | | Provision for Income Taxes | 395.6 | 361.6 | 9 | | Net Income | 1,180.3 | 1,138.9 | 4 % | | Net Income — Diluted (Per Common Share) | 5.43 | 5.22 | 4 | Selected Balance Sheet Data (End of Period) | Indicator | September 30, 2022 ($ In Millions) | December 31, 2021 ($ In Millions) | % Change | | :-------------------- | :--------------------------------- | :---------------------------------- | :------- | | Total Assets | 159,839.6 | 183,889.8 | (13)% | | Earning Assets | 142,738.5 | 172,276.0 | (17) | | Deposits | 128,547.4 | 159,928.4 | (20) | | Stockholders' Equity | 11,030.4 | 12,016.8 | (8) | Client Assets ($ In Billions) | Indicator | September 30, 2022 | December 31, 2021 | % Change | | :-------------------------- | :----------------- | :------------------ | :------- | | Assets Under Custody/Administration | 12,822.0 | 16,248.8 | (21)% | | Assets Under Custody | 9,986.3 | 12,612.3 | (21) | | Assets Under Management | 1,209.9 | 1,607.1 | (25) | Financial Ratios (Three Months Ended September 30) | Ratio | 2022 | 2021 | | :------------------------ | :---- | :---- | | Return on Average Common Equity | 14.9 %| 13.7 %| | Return on Average Assets | 1.07 | 1.00 | | Dividend Payout Ratio | 41.7 | 38.9 | | Net Interest Margin | 1.58 | 0.98 | Northern Trust Corporation Capital Ratios (Standardized Approach) | Ratio | September 30, 2022 | December 31, 2021 | | :------------------------ | :----------------- | :---------------- | | Common Equity Tier 1 Capital | 10.1 % | 11.9 % | | Tier 1 Capital | 11.1 | 12.9 | | Total Capital | 12.2 | 14.1 | | Tier 1 Leverage | 7.0 | 6.9 | [Part I – Financial Information](index=5&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk](index=5&type=section&id=Items%202.%20and%203.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20and%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Management analyzes Northern Trust's financial condition and operations for Q3 and 9M 2022, detailing revenue, expenses, balance sheet changes, capital, and market risk [Third Quarter Consolidated Results of Operations](index=5&type=section&id=THIRD%20QUARTER%20CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Q3 2022 consolidated results show a slight net income decrease, with 7% total revenue growth driven by net interest income, offset by lower noninterest income and higher expenses - Net Income decreased by **$0.9 million** to **$394.8 million** in Q3 2022 from $395.7 million in Q3 2021[15](index=15&type=chunk) - Total Revenue increased by **$121.0 million**, or **7%**, to **$1.75 billion** in Q3 2022 from $1.63 billion in Q3 2021[16](index=16&type=chunk) - Net Interest Income increased by **$166.6 million**, or **48%**, to **$513.0 million** in Q3 2022, primarily due to a higher net interest margin, partially offset by lower average earning assets[19](index=19&type=chunk) - Noninterest Expense increased by **$101.1 million**, or **9%**, to **$1.23 billion** in Q3 2022, primarily attributable to higher Compensation, Equipment and Software expense, Outside Services and Employee Benefits[21](index=21&type=chunk) - A **$0.5 million** Provision for Credit Losses was recorded in Q3 2022, compared to a **$13.0 million** release in Q3 2021, primarily due to an increase in the collective basis reserve driven by a weaker macroeconomic outlook[20](index=20&type=chunk) - Trust, Investment and Other Servicing Fees decreased by **$32.3 million**, or **3%**, from **$1.11 billion** in Q3 2021 to **$1.08 billion** in Q3 2022, primarily due to lagged unfavorable markets and unfavorable currency translation, partially offset by lower money market fund fee waivers[18](index=18&type=chunk) [Nine-Month Consolidated Results of Operations](index=14&type=section&id=NINE-MONTH%20CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Northern Trust reported a 4% net income increase and 9% total revenue growth for 9M 2022, driven by net interest income and lower fee waivers, despite higher expenses and credit loss provisions - Net Income increased by **$41.4 million**, or **4%**, to **$1.18 billion** in 9M 2022 from $1.14 billion in 9M 2021[76](index=76&type=chunk) - Total Revenue increased by **$444.7 million**, or **9%**, to **$5.24 billion** in 9M 2022 from $4.80 billion in 9M 2021[77](index=77&type=chunk) - Net Interest Income increased by **$330.6 million**, or **32%**, to **$1.35 billion** in 9M 2022, primarily due to a higher net interest margin and nonrecurring interest received from the sale of certain nonaccrual loans[80](index=80&type=chunk) - Noninterest Expense increased by **$292.3 million**, or **9%**, to **$3.66 billion** in 9M 2022, primarily attributable to higher Compensation and Equipment and Software expense[82](index=82&type=chunk) - A **$7.0 million** Provision for Credit Losses was recorded in 9M 2022, compared to a **$70.0 million** release in 9M 2021, primarily due to an increase in the collective basis reserve driven by a weaker macroeconomic outlook[81](index=81&type=chunk) - Trust, Investment and Other Servicing Fees increased by **$140.4 million**, or **4%**, to **$3.39 billion** in 9M 2022, primarily driven by lower money market fee waivers, new business, and accounting reclassification, partially offset by unfavorable currency translation and unfavorable markets[78](index=78&type=chunk) [Reporting Segments](index=20&type=section&id=REPORTING%20SEGMENTS) Northern Trust operates through Asset Servicing and Wealth Management segments, with results presented on an internal management reporting basis using FTP and FTE - Northern Trust is organized around its two client-focused reporting segments: Asset Servicing and Wealth Management[115](index=115&type=chunk) - Segment financial information is presented on an internal management reporting basis, utilizing a funds transfer pricing (FTP) methodology and an FTE basis[116](index=116&type=chunk) Consolidated Net Income by Segment (Three Months Ended September 30) | Segment | 2022 ($ In Millions) | 2021 ($ In Millions) | Percentage of Consolidated Net Income 2022 | Percentage of Consolidated Net Income 2021 | | :------------------ | :------------------- | :------------------- | :----------------------------------------- | :----------------------------------------- | | Asset Servicing | 209.7 | 158.2 | 53 % | 40 % | | Wealth Management | 201.3 | 241.1 | 51 % | 61 % | | Other | (16.2) | (3.6) | (4)% | (1)% | | **Total** | **394.8** | **395.7** | **100 %** | **100 %** | Consolidated Net Income by Segment (Nine Months Ended September 30) | Segment | 2022 ($ In Millions) | 2021 ($ In Millions) | Percentage of Consolidated Net Income 2022 | Percentage of Consolidated Net Income 2021 | | :------------------ | :------------------- | :------------------- | :----------------------------------------- | :----------------------------------------- | | Asset Servicing | 591.0 | 478.0 | 50 % | 42 % | | Wealth Management | 640.3 | 688.6 | 54 % | 60 % | | Other | (51.0) | (27.7) | (4)% | (2)% | | **Total** | **1,180.3** | **1,138.9** | **100 %** | **100 %** | [Consolidated Balance Sheets](index=25&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated balance sheet shows decreased total assets and deposits at September 30, 2022, primarily from lower central bank and noninterest-bearing deposits, with increased loans Select Consolidated Balance Sheet Information ($ In Billions) | Item | September 30, 2022 | December 31, 2021 | Change ($B) | Change (%) | | :------------------------------------ | :----------------- | :---------------- | :---------- | :--------- | | Federal Reserve and Other Central Bank Deposits and Other | 39.6 | 64.5 | (24.9) | (39)% | | Total Securities | 53.8 | 62.7 | (8.9) | (14) | | Loans and Leases | 44.0 | 40.5 | 3.5 | 9 | | Total Earning Assets | 142.7 | 172.3 | (29.6) | (17) | | Total Assets | 159.8 | 183.9 | (24.1) | (13) | | Total Interest-Bearing Deposits | 100.7 | 111.6 | (10.9) | (10) | | Demand and Other Noninterest-Bearing Deposits | 27.9 | 48.3 | (20.4) | (42) | | Total Stockholders' Equity | 11.0 | 12.0 | (1.0) | (8) | - Average total assets decreased **$10.1 billion** (**6%**) for the three months ended September 30, 2022, compared to the prior-year quarter[153](index=153&type=chunk) - Average total deposits decreased **$5.5 billion** (**5%**) for the three months ended September 30, 2022, compared to the prior-year quarter[153](index=153&type=chunk) [Asset Quality](index=26&type=section&id=ASSET%20QUALITY) Northern Trust maintains a high-quality debt securities portfolio, with increased net unrealized losses due to higher interest rates, while nonaccrual assets decreased - Net unrealized losses within the investment securities portfolio totaled **$3.5 billion** at September 30, 2022, compared to **$187.1 million** as of December 31, 2021, primarily due to higher interest rates[164](index=164&type=chunk) - **95%** of the Held to Maturity (HTM) portfolio at September 30, 2022, was comprised of securities rated A or higher[289](index=289&type=chunk) Nonaccrual Assets ($ In Millions) | Category | September 30, 2022 | December 31, 2021 | | :---------------------------- | :----------------- | :---------------- | | Commercial and Institutional | 18.4 | 19.5 | | Commercial Real Estate | 41.9 | 66.6 | | Residential Real Estate | 16.1 | 36.2 | | Other Real Estate Owned | — | 3.0 | | **Total Nonaccrual Assets** | **76.4** | **125.3** | - Nonaccrual assets decreased **$64.8 million**, or **46%**, to **$76.4 million** at September 30, 2022, from $141.2 million at the end of the prior-year quarter, primarily due to the payoff of two nonaccrual loans in the commercial real estate portfolio and payoffs in the residential real estate portfolio[174](index=174&type=chunk) [Statements of Cash Flows](index=31&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) For 9M 2022, net cash used in operating activities increased, investing activities provided more cash from decreased central bank deposits, and financing activities used more cash from lower deposits Cash Flow Activity Summary (Nine Months Ended September 30) | Activity | 2022 ($ In Millions) | 2021 ($ In Millions) | | :------------------------ | :------------------- | :------------------- | | Net cash used in Operating activities | (1,759.6) | (685.9) | | Net cash provided by Investing activities | 21,773.5 | 188.4 | | Net cash used in Financing activities | (18,156.8) | 430.0 | | Effect of Foreign Currency Exchange Rates on Cash | (421.1) | (127.3) | | **Change in Cash and Due from Banks** | **1,436.0** | **(194.8)** | - Net cash used in operating activities of **$1.8 billion** for 9M 2022 was primarily attributable to higher net collateral deposited with derivative counterparties[187](index=187&type=chunk) - Net cash provided by investing activities of **$21.8 billion** for 9M 2022 was primarily attributable to decreased levels of Federal Reserve and other central bank deposits and net proceeds from HTM debt securities[188](index=188&type=chunk) - Net cash used in financing activities of **$18.2 billion** for 9M 2022 was primarily attributable to the decreased levels of total deposits, particularly non-U.S. office noninterest-bearing and interest-bearing deposits[190](index=190&type=chunk) [Capital Ratios](index=32&type=section&id=CAPITAL%20RATIOS) Northern Trust maintained strong capital ratios exceeding "well-capitalized" requirements, though ratios decreased due to increased accumulated other comprehensive loss - The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at September 30, 2022, exceeding the requirements for classification as "well-capitalized" under applicable U.S. regulatory requirements[193](index=193&type=chunk) - An increase in accumulated other comprehensive loss, primarily due to an increase in net unrealized losses on the available for sale debt securities portfolio largely from higher interest rates, contributed to the current quarter's change in capital ratios from the prior quarter[195](index=195&type=chunk) Northern Trust Corporation Capital Ratios (Standardized Approach) | Ratio | September 30, 2022 | September 30, 2021 | Minimum Capital Ratios | | :------------------------ | :----------------- | :----------------- | :--------------------- | | Common Equity Tier 1 Capital | 10.1 % | 11.9 % | 4.5 % | | Tier 1 Capital | 11.1 | 12.9 | 6.0 | | Total Capital | 12.2 | 14.3 | 8.0 | | Tier 1 Leverage | 7.0 | 7.1 | 4.0 | [Recent Accounting Pronouncements and Developments](index=33&type=section&id=RECENT%20ACCOUNTING%20PRONOUNCEMENTS%20AND%20DEVELOPMENTS) Northern Trust adopted ASU 2020-06 and 2021-10 with no significant impact, and new ASUs effective in future periods are not expected to be significant - ASU No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method," is effective for interim and annual periods beginning after December 15, 2022, and is not expected to have a significant impact[197](index=197&type=chunk) - ASU No. 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures," is effective for interim and annual periods beginning after December 15, 2022, and is not expected to have a significant impact[198](index=198&type=chunk) - ASU No. 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions," is effective for interim and annual periods beginning after December 15, 2023, and is not expected to have a significant impact[199](index=199&type=chunk) [Market Risk Management](index=33&type=section&id=MARKET%20RISK%20MANAGEMENT) Northern Trust manages market risk, including interest rate and trading risk, using NII and MVE sensitivity models, and monitors foreign currency VaR daily - Northern Trust uses two primary measurement techniques to manage interest rate risk: Net Interest Income (NII) sensitivity and Market Value of Equity (MVE) sensitivity[201](index=201&type=chunk) Net Interest Income Sensitivity (Estimated Impact on Next Twelve Months of Net Interest Income, $ In Millions) | Scenario | September 30, 2022 | September 30, 2021 | | :---------------------------------------- | :----------------- | :----------------- | | Increase in Interest Rates (100 Basis Points) | 64 | 308 | | Increase in Interest Rates (200 Basis Points) | 128 | 534 | | Decrease in Interest Rates (100 Basis Points) | (70) | 36 | Market Value of Equity Sensitivity (Estimated Impact on Market Value of Equity, $ In Millions) | Scenario | September 30, 2022 | December 31, 2021 | | :---------------------------------------- | :----------------- | :---------------- | | Increase in Interest Rates (100 Basis Points) | (487) | 241 | | Increase in Interest Rates (200 Basis Points) | (1,019) | (60) | | Decrease in Interest Rates (100 Basis Points) | 503 | (384) | - Northern Trust measures daily the risk of loss associated with all non-U.S. currency positions using a Value-at-Risk (VaR) model and applying the historical simulation methodology[214](index=214&type=chunk) [Reconciliation to Fully Taxable Equivalent](index=36&type=section&id=RECONCILIATION%20TO%20FULLY%20TAXABLE%20EQUIVALENT) This section reconciles GAAP financial measures to non-GAAP fully taxable equivalent (FTE) counterparts, offering a clearer comparison of asset yields Reconciliation to Fully Taxable Equivalent (Three Months Ended September 30, $ In Millions) | Metric | GAAP 2022 | FTE 2022 | GAAP 2021 | FTE 2021 | | :-------------------- | :-------- | :------- | :-------- | :------- | | Interest Income | 799.3 | 811.6 | 351.3 | 362.0 | | Net Interest Income | 513.0 | 525.3 | 346.4 | 357.1 | | Net Interest Margin | 1.54 % | 1.58 % | 0.95 % | 0.98 % | | Total Revenue | 1,754.8 | 1,767.1 | 1,633.8 | 1,644.5 | Reconciliation to Fully Taxable Equivalent (Nine Months Ended September 30, $ In Millions) | Metric | GAAP 2022 | FTE 2022 | GAAP 2021 | FTE 2021 | | :-------------------- | :-------- | :------- | :-------- | :------- | | Interest Income | 1,707.6 | 1,737.7 | 1,044.3 | 1,069.9 | | Net Interest Income | 1,352.7 | 1,382.8 | 1,022.1 | 1,047.7 | | Net Interest Margin | 1.29 % | 1.32 % | 0.96 % | 0.99 % | | Total Revenue | 5,242.2 | 5,272.3 | 4,797.5 | 4,823.1 | [Forward-Looking Statements](index=37&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines forward-looking statements based on current beliefs and expectations, involving inherent risks and uncertainties from financial markets, geopolitical factors, and regulatory changes - Forward-looking statements are identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "project," "likely," "plan," "goal," "target," "strategy," and similar expressions or future or conditional verbs[223](index=223&type=chunk) - These statements are based on Northern Trust's current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change[223](index=223&type=chunk) - Key factors influencing actual results include financial market disruptions, volatility in financial markets, geopolitical risks, changes in foreign exchange rates, operational risks (e.g., cybersecurity, human errors), and regulatory changes[224](index=224&type=chunk) [Consolidated Financial Statements (unaudited)](index=39&type=section&id=Item%201%3A%20Consolidated%20Financial%20Statements%20(unaudited)) Presents Northern Trust Corporation's unaudited consolidated financial statements, including balance sheets, income, comprehensive income, equity changes, cash flows, and detailed notes [Consolidated Balance Sheets (Unaudited)](index=39&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) Presents Northern Trust Corporation's unaudited consolidated balance sheets as of September 30, 2022, and December 31, 2021 Consolidated Balance Sheets (In Millions) | ASSETS | September 30, 2022 | December 31, 2021 | | :------------------------------------ | :----------------- | :---------------- | | Cash and Due from Banks | 4,492.8 | 3,056.8 | | Federal Reserve and Other Central Bank Deposits | 39,644.9 | 64,582.2 | | Total Debt Securities | 52,229.2 | 61,575.3 | | Total Loans and Leases | 43,991.9 | 40,480.6 | | Total Assets | 159,839.6 | 183,889.8 | | LIABILITIES | | | | Total Deposits | 128,547.4 | 159,928.4 | | Federal Funds Purchased | 4,364.8 | 0.2 | | Total Liabilities | 148,809.2 | 171,873.0 | | STOCKHOLDERS' EQUITY | | | | Total Stockholders' Equity | 11,030.4 | 12,016.8 | | **Total Liabilities and Stockholders' Equity** | **159,839.6** | **183,889.8** | [Consolidated Statements of Income (Unaudited)](index=40&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)) Presents Northern Trust Corporation's unaudited consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 Consolidated Statements of Income (Three Months Ended September 30, In Millions) | Item | 2022 | 2021 | | :------------------------------------ | :---- | :---- | | Total Noninterest Income | 1,241.8 | 1,287.4 | | Net Interest Income | 513.0 | 346.4 | | Provision for Credit Losses | 0.5 | (13.0)| | Total Noninterest Expense | 1,229.8 | 1,128.7 | | Net Income | 394.8 | 395.7 | | Net Income Applicable to Common Stock | 378.6 | 379.5 | | Diluted Net Income Per Common Share | 1.80 | 1.80 | Consolidated Statements of Income (Nine Months Ended September 30, In Millions) | Item | 2022 | 2021 | | :------------------------------------ | :---- | :---- | | Total Noninterest Income | 3,889.5 | 3,775.4 | | Net Interest Income | 1,352.7 | 1,022.1 | | Provision for Credit Losses | 7.0 | (70.0)| | Total Noninterest Expense | 3,659.3 | 3,367.0 | | Net Income | 1,180.3 | 1,138.9 | | Net Income Applicable to Common Stock | 1,143.2 | 1,101.8 | | Diluted Net Income Per Common Share | 5.43 | 5.22 | [Consolidated Statements of Comprehensive Income (Unaudited)](index=40&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(UNAUDITED)) Presents Northern Trust Corporation's unaudited consolidated statements of comprehensive income for the three and nine months ended September 30, 2022 and 2021 Consolidated Statements of Comprehensive Income (Three Months Ended September 30, In Millions) | Item | 2022 | 2021 | | :------------------------------------ | :---- | :---- | | Net Income | 394.8 | 395.7 | | Other Comprehensive Income (Loss) | (274.4)| (80.7)| | Comprehensive Income (Loss) | 120.4 | 315.0 | Consolidated Statements of Comprehensive Income (Nine Months Ended September 30, In Millions) | Item | 2022 | 2021 | | :------------------------------------ | :---- | :---- | | Net Income | 1,180.3 | 1,138.9 | | Other Comprehensive Income (Loss) | (1,749.4)| (314.0)| | Comprehensive Income (Loss) | (569.1)| 824.9 | - Net Unrealized Gains (Losses) on Available for Sale Debt Securities (net of tax and reclassifications) were **$(1,674.0) million** for the nine months ended September 30, 2022, compared to **$(358.4) million** for the same period in 2021[233](index=233&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity (Unaudited)](index=41&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS%27%20EQUITY%20(UNAUDITED)) Presents Northern Trust Corporation's unaudited consolidated statements of changes in stockholders' equity for the nine months ended September 30, 2022 and 2021 Consolidated Statements of Changes in Stockholders' Equity (Nine Months Ended September 30, 2022, In Millions) | Item | Balance at December 31, 2021 | Net Income | Other Comprehensive Income (Loss) | Dividends Declared (Common Stock) | Dividends Declared (Preferred Stock) | Stock Purchased | Balance at September 30, 2022 | | :------------------------------------ | :--------------------------- | :--------- | :-------------------------------- | :-------------------------------- | :----------------------------------- | :-------------- | :---------------------------- | | Total Stockholders' Equity | 12,016.8 | 1,180.3 | (1,749.4) | (454.2) | (37.1) | (35.2) | 11,030.4 | - Accumulated Other Comprehensive Loss increased from **$(35.6) million** at December 31, 2021, to **$(1,785.0) million** at September 30, 2022[235](index=235&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=43&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Presents Northern Trust Corporation's unaudited consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 Consolidated Statements of Cash Flows (Nine Months Ended September 30, In Millions) | Item | 2022 | 2021 | | :------------------------------------ | :---- | :---- | | Net cash used in Operating activities | (1,759.6)| (685.9)| | Net cash provided by Investing activities | 21,773.5| 188.4 | | Net cash used in Financing activities | (18,156.8)| 430.0 | | Effect of Foreign Currency Exchange Rates on Cash | (421.1)| (127.3)| | Change in Cash and Due from Banks | 1,436.0 | (194.8)| | Cash and Due from Banks at End of Period | 4,492.8 | 4,194.7 | - Transfers from Available for Sale Debt Securities to Held to Maturity Debt Securities totaled **$6,623.3 million** for the nine months ended September 30, 2022[240](index=240&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=44&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) These notes provide detailed disclosures supporting the consolidated financial statements, covering accounting policies, fair value, securities, loans, credit losses, capital, and financial instruments - The consolidated financial statements and notes conform to U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry[241](index=241&type=chunk) - During the first quarter of 2022, the Corporation changed the name of its Corporate & Institutional Services (C&IS) segment to "Asset Servicing"[241](index=241&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management evaluated the effectiveness of the Corporation's disclosure controls and procedures as of September 30, 2022, concluding effectiveness with no material changes in internal control - The Corporation's management, with the participation of the Corporation's Chief Executive Officer and Chief Financial Officer, concluded that the Corporation's disclosure controls and procedures are effective as of September 30, 2022[477](index=477&type=chunk) - There have been no changes in the Corporation's internal control over financial reporting identified during the last fiscal quarter that have materially affected, or that are reasonably likely to materially affect, the Corporation's internal control over financial reporting[478](index=478&type=chunk) [Part II – Other Information](index=89&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=89&type=section&id=Item%201%3A%20Legal%20Proceedings) Incorporates legal proceedings from Note 21, with management believing potential losses will not materially affect the Corporation's financial position or liquidity - The information presented under the caption "Legal Proceedings" in Note 21 – Commitments and Contingent Liabilities is incorporated by reference[481](index=481&type=chunk) - Management does not believe that losses, fines or penalties, if any, arising from pending litigation or threatened legal actions or regulatory matters either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage will have a material adverse effect on the consolidated financial position or liquidity of the Corporation[436](index=436&type=chunk) - A re-trial in a French appellate court regarding complicity in estate tax fraud is scheduled to commence in September 2023[441](index=441&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases for Q3 2022, noting no shares were purchased under the publicly announced plan, but the 25.0 million share authorization remains active - No shares were purchased as part of a publicly announced plan during the three months ended September 30, 2022[483](index=483&type=chunk) - The Board of Directors authorized the Corporation to repurchase up to **25.0 million** shares of the Corporation's common stock, with no expiration date[483](index=483&type=chunk) - For the three months ended September 30, 2022, the Corporation repurchased **11,080 shares** of common stock at a total cost of **$1.2 million**, all related to share-based compensation to satisfy tax withholding obligations[387](index=387&type=chunk) [Exhibits](index=89&type=section&id=Item%206%3A%20Exhibits) Lists exhibits filed with the Form 10-Q, including certifications, financial instruments, and XBRL-formatted financial data - Exhibit 31.1 and 31.2 include Rule 13a-14(a)/15d-14(a) Certifications of CEO and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002[486](index=486&type=chunk) - Exhibit 32 includes Certifications of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002[486](index=486&type=chunk) - Exhibit 101 includes financial and related information from Northern Trust's Quarterly Report on Form 10-Q, formatted in Inline Extensible Business Reporting Language (iXBRL)[486](index=486&type=chunk) [Signatures](index=90&type=section&id=Signatures) Contains signatures of authorized officers, including the EVP and CFO, and EVP and Controller, certifying the report's submission - The report was signed by Jason J. Tyler, Executive Vice President and Chief Financial Officer[489](index=489&type=chunk) - The report was signed by Lauren Allnutt, Executive Vice President and Controller[489](index=489&type=chunk) - The date of signing for the report was October 25, 2022[489](index=489&type=chunk)

Northern Trust Corporation (NASDAQ:NTRS) Q3 2022 Earnings Conference Call October 19, 2022 10:00 AM ET Company Participants Jennifer Childe - Senior Vice President, Director of Investor Relations Michael O'Grady - Chairman and Chief Executive Officer Jason Tyler - Executive Vice President and Chief Financial Officer Lauren Allnutt - Executive Vice President and Controller Mark Bette - Senior Vice President and Director of Investor Relations Briar Rose - Vice President, Investor Relations Conference Call Par ...

[Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) [Summary of Financial Highlights](index=3&type=section&id=Summary%20of%20Financial%20Highlights) Q2 2022 net income increased 8% YoY to $396.2 million, driven by 12% revenue growth, while client assets declined due to unfavorable market conditions Q2 & Six Months 2022 Condensed Income Statement (YoY) | Indicator ($ in Millions) | Q2 2022 | Q2 2021 | % Change | 6M 2022 | 6M 2021 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | 1,768.7 | 1,580.3 | 12% | 3,487.4 | 3,163.7 | 10% | | Noninterest Income | 1,310.0 | 1,244.7 | 5% | 2,647.7 | 2,488.0 | 6% | | Net Interest Income | 458.7 | 335.6 | 37% | 839.7 | 675.7 | 24% | | **Net Income** | 396.2 | 368.1 | 8% | 785.5 | 743.2 | 6% | | **Diluted EPS** | $1.86 | $1.72 | 8% | $3.63 | $3.42 | 6% | Selected Balance Sheet and Client Asset Data (vs. YE 2021) | Indicator ($ in Billions, except per share) | June 30, 2022 | Dec 31, 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | 157.8 | 183.9 | (14)% | | Deposits | 133.7 | 159.9 | (16)% | | Stockholders' Equity | 11.1 | 12.0 | (8)% | | Assets Under Custody/Administration | 13,733.7 | 16,248.8 | (15)% | | Assets Under Management | 1,302.8 | 1,607.1 | (19)% | | Book Value Per Share | $48.87 | $52.49 (Q2'21) | (7)% | Key Ratios | Ratio | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Return on Average Common Equity | 15.7% | 13.7% | | Return on Average Assets | 1.03% | 0.96% | | Net Interest Margin (FTE) | 1.35% | 0.97% | Capital Ratios (Standardized Approach) | Ratio | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 10.5% | 11.9% | | Tier 1 Capital | 11.5% | 12.9% | | Total Capital | 12.6% | 14.1% | | Tier 1 Leverage | 6.7% | 6.9% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=5&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Second Quarter Consolidated Results of Operations](index=5&type=section&id=SECOND%20QUARTER%20CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) In Q2 2022, net income rose 8% YoY to $396.2 million, driven by a 37% increase in Net Interest Income, partially offset by higher expenses and credit provisions Q2 2022 vs Q2 2021 Performance Summary | Metric ($ in Millions) | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,768.7 | 1,580.3 | 12% | | Net Interest Income | 458.7 | 335.6 | 37% | | Noninterest Expense | 1,223.6 | 1,120.8 | 9% | | Net Income | 396.2 | 368.1 | 8% | | Diluted EPS | $1.86 | $1.72 | 8% | - An accounting reclassification increased Trust, Investment and Other Servicing fees by **$17.3 million** in Q2 2022, with corresponding impacts on Other Operating Income and Expense, but **no impact on Net Income**[16](index=16&type=chunk) - The company recorded a **$4.5 million provision for credit losses**, compared to a **$27.0 million release** of reserves in Q2 2021, driven by a higher risk of recession[19](index=19&type=chunk)[65](index=65&type=chunk) [Trust, Investment and Other Servicing Fees](index=6&type=section&id=Trust%2C%20Investment%20and%20Other%20Servicing%20Fees) Total Trust, Investment and Other Servicing Fees increased 6% YoY to $1.14 billion, primarily driven by significantly lower money market fund fee waivers and new business Trust, Investment and Other Servicing Fees by Segment (Q2 2022 vs Q2 2021) | Segment ($ in Millions) | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | **Asset Servicing** | **642.7** | **611.5** | **5%** | | Custody and Fund Administration | 433.8 | 454.9 | (5)% | | Investment Management | 148.4 | 100.7 | 47% | | **Wealth Management** | **500.7** | **463.9** | **8%** | | **Total Fees** | **1,143.4** | **1,075.4** | **6%** | - Money market fund fee waivers decreased significantly to **$8.6 million** in Q2 2022 from **$79.8 million** in Q2 2021, contributing to higher fee income[24](index=24&type=chunk) Client Assets Trend | Client Assets ($ in Billions) | June 30, 2022 | June 30, 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Assets Under Custody / Administration | 13,733.7 | 15,727.1 | (13)% | | Assets Under Management | 1,302.8 | 1,539.4 | (15)% | [Other Noninterest Income](index=9&type=section&id=Other%20Noninterest%20Income) Total Other Noninterest Income decreased by 2% YoY to $166.6 million, driven by a drop in Other Operating Income partially offset by higher foreign exchange trading income Other Noninterest Income Components (Q2 2022 vs Q2 2021) | Component ($ in Millions) | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Foreign Exchange Trading Income | 77.6 | 70.6 | 10% | | Other Operating Income | 45.6 | 54.4 | (16)% | | **Total Other Noninterest Income** | **166.6** | **169.3** | **(2)%** | [Net Interest Income](index=10&type=section&id=Net%20Interest%20Income) Net Interest Income on a fully taxable equivalent basis increased 37% YoY to $469.8 million, driven by a significant expansion in net interest margin Net Interest Income Analysis (FTE Basis) | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Net Interest Income ($M) | $469.8 | $343.9 | | Net Interest Margin | 1.35% | 0.97% | | Average Earning Assets ($B) | $139.9 | $142.0 | - The increase in NII was primarily due to a **higher net interest margin**, a favorable balance sheet mix shift, and nonrecurring interest received from certain nonaccrual loans[59](index=59&type=chunk) [Noninterest Expense](index=14&type=section&id=Noninterest%20Expense) Noninterest expense rose 9% YoY to $1.22 billion, driven by higher compensation and technology investments Noninterest Expense Components (Q2 2022 vs Q2 2021) | Component ($ in Millions) | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Compensation | 546.5 | 486.3 | 12% | | Employee Benefits | 119.6 | 118.4 | 1% | | Outside Services | 213.1 | 218.1 | (2)% | | Equipment and Software | 203.5 | 178.3 | 14% | | Other Operating Expense | 89.9 | 67.5 | 33% | | **Total Noninterest Expense** | **1,223.6** | **1,120.8** | **9%** | [Six-Month Consolidated Results of Operations](index=14&type=section&id=SIX-MONTH%20CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) For the first six months of 2022, net income increased 6% YoY to $785.5 million, supported by a 24% increase in Net Interest Income Six-Month 2022 vs 2021 Performance Summary | Metric ($ in Millions) | 6M 2022 | 6M 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | 3,487.4 | 3,163.7 | 10% | | Net Interest Income | 839.7 | 675.7 | 24% | | Noninterest Expense | 2,429.5 | 2,238.3 | 9% | | Net Income | 785.5 | 743.2 | 6% | | Diluted EPS | $3.63 | $3.42 | 6% | - Money market fund fee waivers for the six-month period were **$59.3 million**, a significant reduction from **$130.0 million** in the same period of 2021, boosting fee income[85](index=85&type=chunk) [Reporting Segments](index=20&type=section&id=REPORTING%20SEGMENTS) Asset Servicing net income grew 29% YoY, while Wealth Management net income decreased 4% YoY in Q2 2022 Net Income by Reporting Segment (Q2 2022 vs Q2 2021) | Segment ($ in Millions) | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Asset Servicing | 208.4 | 161.6 | 29% | | Wealth Management | 217.1 | 226.9 | (4)% | | Other | (29.3) | (20.4) | N/M | | **Total Consolidated** | **396.2** | **368.1** | **8%** | [Asset Servicing](index=22&type=section&id=Asset%20Servicing) The Asset Servicing segment's net income increased 29% YoY in Q2 2022, driven by a 67% rise in Net Interest Income - Q2 Net Income increased by **$46.8 million, or 29%**, from the prior-year quarter, driven by higher Net Interest Income and Trust Fees[120](index=120&type=chunk) - Q2 Net Interest Income (FTE basis) increased by **$102.0 million, or 67%**, from the prior-year quarter, mainly due to a higher net interest margin[126](index=126&type=chunk) [Wealth Management](index=23&type=section&id=Wealth%20Management) The Wealth Management segment's net income decreased by 4% YoY in Q2 2022, impacted by higher expenses and a provision for credit losses - Q2 Net Income decreased by **$9.8 million, or 4%**, from the prior-year quarter, mainly due to higher Noninterest Expense and a provision for credit losses[133](index=133&type=chunk) - Q2 Net Interest Income (FTE basis) increased by **$23.9 million, or 13%**, from the prior-year quarter, reflecting higher average loan and deposit balances[138](index=138&type=chunk)[139](index=139&type=chunk) [Consolidated Balance Sheets](index=25&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2022, total assets stood at $157.8 billion, a 14% decrease from year-end 2021, driven by a decline in deposits Select Consolidated Balance Sheet Data | ($ in Billions) | June 30, 2022 | Dec 31, 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | 157.8 | 183.9 | (14)% | | Total Securities | 56.5 | 62.7 | (10)% | | Loans and Leases | 41.2 | 40.5 | 2% | | Total Deposits | 133.7 | 159.9 | (16)% | | Total Stockholders' Equity | 11.1 | 12.0 | (8)% | [Asset Quality](index=26&type=section&id=ASSET%20QUALITY) Asset quality remained strong with a high-quality debt securities portfolio and a 28% decrease in nonaccrual assets from year-end 2021 - The debt securities portfolio is high quality, with **86% of AFS securities rated AAA** and **94% of HTM securities rated A or higher** as of June 30, 2022[156](index=156&type=chunk)[281](index=281&type=chunk) - Net unrealized losses within the investment securities portfolio increased to **$3.0 billion** at June 30, 2022, from **$187.1 million** at year-end 2021, largely due to higher interest rates[159](index=159&type=chunk) Nonaccrual Assets | ($ in Millions) | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Nonaccrual Loans and Leases | 89.7 | 122.3 | | Other Real Estate Owned | 0.1 | 3.0 | | **Total Nonaccrual Assets** | **89.8** | **125.3** | [Statements of Cash Flows](index=31&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of 2022, a net cash outflow from financing activities was largely offset by a net cash inflow from investing activities Six-Month Cash Flow Summary | Activity ($ in Millions) | 6M 2022 | 6M 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) Operating activities | (863.9) | (1,167.7) | | Net cash provided by (used in) Investing activities | 25,225.8 | (2,231.6) | | Net cash (used in) provided by Financing activities | (22,060.4) | 3,895.1 | | **Change in Cash and Due from Banks** | **2,063.0** | **409.8** | [Capital Ratios](index=32&type=section&id=CAPITAL%20RATIOS) Capital ratios remained strong and well above regulatory minimums, though the CET1 ratio decreased to 10.5% from 12.0% in the prior year Northern Trust Corporation Capital Ratios (Standardized Approach) | Ratio | June 30, 2022 | June 30, 2021 | Minimum Requirement | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 10.5% | 12.0% | 4.5% | | Tier 1 Capital | 11.5% | 13.1% | 6.0% | | Total Capital | 12.6% | 14.5% | 8.0% | | Tier 1 Leverage | 6.7% | 7.1% | 4.0% | - The 2022 Dodd-Frank Act Stress Test results kept Northern Trust's stress capital buffer at **2.5%** and the effective CET1 minimum at **7.0%**, effective October 1, 2022[190](index=190&type=chunk) [Consolidated Financial Statements (unaudited)](index=39&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) [Financial Statements](index=39&type=section&id=Financial%20Statements) This section contains the unaudited consolidated financial statements for the periods ended June 30, 2022 and 2021 [Notes to Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial data, including securities, loans, and commitments - **Securities (Note 4):** As of June 30, 2022, the Available for Sale (AFS) portfolio had gross unrealized losses of **$1.86 billion**, a significant increase from **$248.6 million** at year-end 2021, primarily due to rising interest rates[264](index=264&type=chunk)[276](index=276&type=chunk) - **Loans and Leases (Note 6):** The total loan and lease portfolio was **$41.2 billion**, with no active COVID-19 related loan modifications as of June 30, 2022[287](index=287&type=chunk)[291](index=291&type=chunk)[323](index=323&type=chunk) - **Allowance for Credit Losses (Note 7):** The total allowance for credit losses was **$198.2 million** as of June 30, 2022, up from **$184.7 million** at year-end 2021[331](index=331&type=chunk) - **Commitments and Contingencies (Note 22):** Total off-balance sheet financial instruments were **$187.6 billion**, and the company estimates a range of reasonably possible loss for certain legal matters from zero to approximately **$25 million**[425](index=425&type=chunk)[430](index=430&type=chunk)[440](index=440&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%204.%20Controls%20and%20Procedures) [Summary of Controls and Procedures](index=88&type=section&id=Summary%20of%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls - The CEO and CFO concluded that the Corporation's **disclosure controls and procedures are effective** as of June 30, 2022[481](index=481&type=chunk) - **No changes** in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, such controls were identified during the last fiscal quarter[482](index=482&type=chunk) [Part II – Other Information](index=89&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect pending legal or regulatory matters to have a material adverse effect on its financial position or liquidity - Information regarding legal proceedings is detailed in **Note 22 — Commitments and Contingent Liabilities**[485](index=485&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation did not repurchase any shares of its common stock during the second quarter of 2022 Common Stock Repurchases (Q2 2022) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | April 2022 | — | — | — | | May 2022 | — | — | — | | June 2022 | — | — | — | | **Total Q2** | **—** | **—** | **—** |

Northern Trust Corporation (NASDAQ:NTRS) Q2 2022 Earnings Conference Call July 20, 2022 10:00 AM ET Company Participants Jennifer Childe - Senior Vice President, Director of Investor Relations Michael O'Grady - Chairman and Chief Executive Officer Jason Tyler - Executive Vice President and Chief Financial Officer Mark Bette - Senior Vice President and Director of Investor Relations Conference Call Participants Alex Blostein - Goldman Sachs Steven Chubak - Wolfe Research Glenn Schorr - Evercore ISI Mike Mayo ...

Northern Trust Corporation .Second Quarter 2022 Quarterly Earnings Review July 20, 2022 northerntrust.com | © 2022 NorthernTrust 1 EXECUTIVE SUMMARY 1 month Libor (Avg) 91 bps 79 bps 3 month Libor (Avg) 138 bps 102 bps EUR / USD 13.4% 6.4% GBP / USD 13.8% 8.4% Net income of $396.2 million, earnings per diluted common share of $1.86. Return on average common equity of 15.7%. The current quarter included: Pre-tax pension settlement charge of $20.3 million in the current year, compared to $17.6 million in the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36609 NORTHERN TRUST CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-2 ...

Financial Data and Key Metrics Changes - The company reported a first quarter net income of $389.3 million, with earnings per share at $1.77 and a return on average common equity of 14.2% [17] - Year-over-year revenue increased by 9%, while expenses rose by 8%, resulting in a 4% increase in net income [18] - The provision for credit losses was $2 million for the quarter, with a return on average common equity up from 13.7% a year ago [18] Business Line Data and Key Metrics Changes - In the Wealth Management business, trust, investment, and other servicing fees totaled $506 million, up 14% year-over-year and 4% sequentially [24] - The Asset Servicing business generated fees of $662 million, reflecting a 7% year-over-year increase and a 6% sequential increase [21] - Assets under custody and administration for asset servicing clients reached $14.5 trillion, up 5% year-over-year but down 4% sequentially [22] Market Data and Key Metrics Changes - The company experienced strong organic growth in its FlexShares' ETFs, surpassing $22 billion in assets, up 13% for the quarter [12] - The Global Family Office business saw significant engagement and new business, contributing to the overall growth in Wealth Management [10] Company Strategy and Development Direction - The company is focused on enhancing foundational strength through advancements in data and digital efforts while executing growth strategies across all business lines [9] - The integration of the Corporate & Institutional Services team with the Global Services operational team aims to improve client service and operational efficiency [13][92] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing geopolitical crisis in Ukraine and its impact on market volatility and inflation [7][8] - The company anticipates that negative market conditions in the first quarter will have a more significant impact in the second quarter [33] Other Important Information - The company declared cash dividends of $0.70 per share, totaling $147.8 million to common stockholders [32] - The capital ratios remained strong, with a Common Equity Tier ratio of 11.4% [32] Q&A Session Summary Question: Outlook on 2022 expenses - Management discussed the increase in compensation expenses due to retirement-eligible equity incentives and projected hiring adjustments, indicating a potential $20 million increase in annual base pay adjustments [37][39] Question: Buybacks and AOCI impact - Management confirmed that they are monitoring AOCI impacts closely and will be prudent regarding buybacks in light of capital ratios [40][41] Question: Balance sheet and deposit mix - Management noted that they have not seen significant movement in operational deposits but anticipate potential shifts due to rising interest rates [46][48] Question: NII trajectory and deposit betas - Management provided insights on the expected impact of interest rate hikes on net interest income and deposit betas, emphasizing the importance of maintaining client relationships [54][110] Question: Asset Servicing and Wealth Management organic growth - Management indicated positive new business in Asset Servicing and strong performance in the Global Family Office segment, with expectations for continued growth [99][101]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ NORTHERN TRUST CORPORATION (Exact name of registrant as specified in its charter) ____________________________________________________________ Delaware 36-2723087 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) For the transition period from to Commission File No. 001-36609 ____________________________________________________ ...