NET INCOME OF $155.7 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $0.71
Fourth quarter 2022 results included the following: |
•$213.0 million of pre-tax available for sale security losses recognized in conjunction with an intent to sell (after-tax $159.4 million).
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•$32.0 million of pre-tax severance-related charges (after-tax $24.0 million).
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•$14.0 million of pre-tax occupancy charges (after-tax $10.5 million) related to early lease exits.
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•$6.8 million of pre-tax pension settlement charge (after-tax $5.1 million).
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MICHAEL O'GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER: |
"Northern Trust's fourth quarter results reflected strong year-over-year growth in net interest income, which more than offset lower trust fees. Expense levels remained elevated as we continued to invest in people and technology to enhance our resiliency and support growth in the business. Reported results included $266 million in charges related to a repositioning of our securities portfolio and, in part, steps we are taking to optimize our cost base and drive greater efficiencies throughout the company. These actions underscore our commitment to improving our profitability. As we look ahead, we are focused on driving organic growth, improving our productivity and further strengthening our foundation."
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FINANCIAL SUMMARY & KEY METRICS | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions except per share data) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Trust, Investment and Other Servicing Fees | $ | 1,042.1 | $ | 1,078.7 | $ | 1,111.0 | (3) | % | (6) | % |
Other Noninterest Income (Loss) | (57.6) | 163.1 | 195.4 | (135) | (129) | |||||
Net Interest Income (FTE*) | 550.0 | 525.3 | 370.6 | 5 | 48 | |||||
Total Revenue (FTE*) | $ | 1,534.5 | $ | 1,767.1 | $ | 1,677.0 | (13) | % | (8) | % |
Noninterest Expense | $ | 1,323.6 | $ | 1,229.8 | $ | 1,168.9 | 8 | % | 13 | % |
Provision for Credit Losses | 5.0 | 0.5 | (11.5) | N/M | N/M | |||||
Provision for Income Taxes | 34.7 | 129.7 | 103.2 | (73) | (66) | |||||
FTE Adjustment* | 15.5 | 12.3 | 10.0 | 26 | 55 | |||||
Net Income | $ | 155.7 | $ | 394.8 | $ | 406.4 | (61) | % | (62) | % |
Earnings Allocated to Common and Potential Common Shares | $ | 148.7 | $ | 375.4 | $ | 398.7 | (60) | % | (63) | % |
Diluted Earnings per Common Share | $ | 0.71 | $ | 1.80 | $ | 1.91 | (61) | % | (63) | % |
Return on Average Common Equity | 5.9 | % | 14.9 | % | 14.5 | % | ||||
Return on Average Assets | 0.42 | % | 1.07 | % | 1.00 | % | ||||
Average Assets | $ | 147,803.6 | $ | 146,402.2 | $ | 161,353.8 | 1 | % | (8) | % |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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ACCOUNTING RECLASSIFICATION |
Beginning in the first quarter of 2022, Trust, Investment and Other Servicing fees were impacted by the change in classification of certain fees that were previously recorded in Other Operating Income or as a reduction of Other Operating Expense but resulted in no impact to net income. The accounting reclassification increased Trust, Investment and Other Servicing fees in the fourth quarter of 2022 by $14.2 million, with a $5.6 million decrease in Other Operating Income and an $8.6 million increase in Other Operating Expense. The classification changes are deemed to be a better representation of the underlying nature of the business as they are directly tied to client asset levels and the related services are more akin to our core service offerings. Prior-year amounts have not been reclassified.
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CLIENT ASSETS | ||||||||||
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation's trust, investment and other servicing fees, the largest component of noninterest income.
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As of |
% Change December 31, 2022 vs.
| |||||||||
($ In Billions) | December 31, 2022* | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||
Assets Under Custody/Administration | ||||||||||
Asset Servicing | $ | 12,705.5 | $ | 11,954.0 | $ | 15,183.2 | 6 | % | (16) | % |
Wealth Management | 898.5 | 868.0 | 1,065.6 | 4 | (16) | |||||
Total Assets Under Custody/Administration | $ | 13,604.0 | $ | 12,822.0 | $ | 16,248.8 | 6 | % | (16) | % |
Assets Under Custody(1)
| ||||||||||
Asset Servicing | $ | 9,712.3 | $ | 9,125.5 | $ | 11,554.8 | 6 | % | (16) | % |
Wealth Management | 892.3 | 860.8 | 1,057.5 | 4 | (16) | |||||
Total Assets Under Custody | $ | 10,604.6 | $ | 9,986.3 | $ | 12,612.3 | 6 | % | (16) | % |
Assets Under Management | ||||||||||
Asset Servicing | $ | 898.1 | $ | 873.7 | $ | 1,191.0 | 3 | % | (25) | % |
Wealth Management | 351.4 | 336.2 | 416.1 | 5 | (16) | |||||
Total Assets Under Management | $ | 1,249.5 | $ | 1,209.9 | $ | 1,607.1 | 3 | % | (22) | % |
TRUST, INVESTMENT AND OTHER SERVICING FEES | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Asset Servicing Trust, Investment and Other Servicing Fees | ||||||||||
Custody and Fund Administration | $ | 406.3 | $ | 407.3 | $ | 457.7 | - | % | (11) | % |
Investment Management | 123.8 | 136.0 | 113.3 | (9) | 9 | |||||
Securities Lending | 19.3 | 21.7 | 18.8 | (11) | 2 | |||||
Other | 38.6 | 38.2 | 35.3 | 1 | 9 | |||||
Total Asset Servicing | $ | 588.0 | $ | 603.2 | $ | 625.1 | (3) | % | (6) | % |
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||
Central | $ | 162.2 | $ | 171.3 | $ | 181.4 | (5) | % | (11) | % |
East | 117.8 | 124.1 | 132.9 | (5) | (11) | |||||
West | 89.5 | 92.5 | 98.6 | (3) | (9) | |||||
Global Family Office (GFO) | 84.6 | 87.6 | 73.0 | (3) | 16 | |||||
Total Wealth Management | $ | 454.1 | $ | 475.5 | $ | 485.9 | (5) | % | (7) | % |
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 1,042.1 | $ | 1,078.7 | $ | 1,111.0 | (3) | % | (6) | % |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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OTHER NONINTEREST INCOME | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Other Noninterest Income | ||||||||||
Foreign Exchange Trading Income | $ | 65.4 | $ | 64.7 | $ | 76.9 | 1 | % | (15) | % |
Treasury Management Fees | 8.3 | 9.3 | 10.6 | (9) | (21) | |||||
Security Commissions and Trading Income | 35.1 | 32.1 | 35.9 | 9 | (2) | |||||
Other Operating Income | 47.3 | 57.3 | 72.3 | (18) | (35) | |||||
Investment Security Gains (Losses), net | (213.7) | (0.3) | (0.3) | N/M | N/M | |||||
Total Other Noninterest Income (Loss) | $ | (57.6) | $ | 163.1 | $ | 195.4 | (135) | % | (129) | % |
NET INTEREST INCOME | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Net Interest Income | ||||||||||
Interest Income (FTE*) | $ | 1,185.6 | $ | 811.6 | $ | 372.2 | 46 % | 219 % | ||
Interest Expense | 635.6 | 286.3 | 1.6 | 122 | N/M | |||||
Net Interest Income (FTE*) | $ | 550.0 | $ | 525.3 | $ | 370.6 | 5 % | 48 % | ||
Average Earning Assets | $ | 133,789 | $ | 132,147 | $ | 148,834 | 1% | (10 %) | ||
Net Interest Margin (FTE*) | 1.63 | % | 1.58 | % | 0.99 | % | 5 | bps | 64 | bps |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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PROVISION FOR CREDIT LOSSES | ||||||||||
As of and for the three-months ended, |
% Change December 31, 2022 vs.
| |||||||||
($ In Millions) | December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||
Allowance for Credit Losses | ||||||||||
Beginning Allowance for Credit Losses | $ | 195.9 | $ | 199.9 | $ | 195.1 | (2) | % | - | % |
Provision for Credit Losses | 5.0 | 0.5 | (11.5) | N/M | N/M | |||||
Net Recoveries (Charge-Offs) | - | (4.5) | 1.1 | N/M | N/M | |||||
Ending Allowance for Credit Losses | $ | 200.9 | $ | 195.9 | $ | 184.7 | 3 | % | 9 | % |
Allowance assigned to: | ||||||||||
Loans and Leases | $ | 144.3 | $ | 138.7 | $ | 138.4 | 4 | % | 4 | % |
Undrawn Loan Commitments and Standby Letters of Credit | 38.5 | 40.7 | 34.1 | (5) | 13 | |||||
Debt Securities and Other Financial Assets | 18.1 | 16.5 | 12.2 | 8 | 47 | |||||
Ending Allowance for Credit Losses | $ | 200.9 | $ | 195.9 | $ | 184.7 | 3 | % | 9 | % |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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NONINTEREST EXPENSE | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Noninterest Expense | ||||||||||
Compensation | $ | 584.3 | $ | 553.3 | $ | 510.2 | 6 | % | 15 | % |
Employee Benefits | 103.6 | 109.9 | 107.9 | (6) | (4) | |||||
Outside Services | 232.9 | 220.9 | 224.2 | 5 | 4 | |||||
Equipment and Software | 229.4 | 212.4 | 196.1 | 8 | 17 | |||||
Occupancy | 65.7 | 51.3 | 51.8 | 28 | 27 | |||||
Other Operating Expense | 107.7 | 82.0 | 78.7 | 31 | 37 | |||||
Total Noninterest Expense | $ | 1,323.6 | $ | 1,229.8 | $ | 1,168.9 | 8 | % | 13 | % |
End of Period Full-Time Equivalent Staff | 23,600 | 23,100 | 21,100 | 2 | % | 12 | % |
PROVISION FOR INCOME TAX | ||||||||||
% Change Q4 2022 vs.
| ||||||||||
($ In Millions) | Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | |||||
Net Income | ||||||||||
Income before Income Taxes | $ | 190.4 | $ | 524.5 | $ | 509.6 | (64) | % | (63) | % |
Provision for Income Taxes | 34.7 | 129.7 | 103.2 | (73) | (66) | |||||
Net Income | $ | 155.7 | $ | 394.8 | $ | 406.4 | (61) | % | (62) | % |
Effective Tax Rate | 18.2 | % | 24.7 | % | 20.2 | % | (650) | bps | (200) | bps |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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CAPITAL ACTIONS |
CAPITAL RATIOS |
December 31, 2022* | September 30, 2022 | December 31, 2021 | |||||||||||||
Capital Ratios - Northern Trust Corporation | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | |||||||
Common Equity Tier 1 Capital | 10.8 | % | 11.5 | % | 10.1 | % | 11.4 | % | 11.9 | % | 13.2 | % | N/A | 4.5 | % |
Tier 1 Capital | 11.8 | 12.5 | 11.1 | 12.5 | 12.9 | 14.3 | 6.0 | 6.0 | |||||||
Total Capital | 13.9 | 14.5 | 12.2 | 13.5 | 14.1 | 15.3 | 10.0 | 8.0 | |||||||
Tier 1 Leverage | 7.1 | 7.1 | 7.0 | 7.0 | 6.9 | 6.9 | N/A | 4.0 | |||||||
Supplementary Leverage | N/A | 7.9 | N/A | 7.7 | N/A | 8.2 | N/A | 3.0 |
December 31, 2022* | September 30, 2022 | December 31, 2021 | ||||||||||||||
Capital Ratios - The Northern Trust Company | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | ||||||||
Common Equity Tier 1 Capital | 11.6 | % | 12.4 | % | 10.7 | % | 12.2 | % | 12.0 | % | 13.5 | % | 6.5 | % | 4.5 | % |
Tier 1 Capital | 11.6 | 12.4 | 10.7 | 12.2 | 12.0 | 13.5 | 8.0 | 6.0 | ||||||||
Total Capital | 13.5 | 14.2 | 11.6 | 13.0 | 13.0 | 14.4 | 10.0 | 8.0 | ||||||||
Tier 1 Leverage | 6.9 | 6.9 | 6.7 | 6.7 | 6.4 | 6.4 | 5.0 | 4.0 | ||||||||
Supplementary Leverage | N/A | 7.7 | N/A | 7.4 | N/A | 7.6 | 3.0 | 3.0 |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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RECONCILIATION TO FULLY TAXABLE EQUIVALENT |
QUARTERS | ||||||||||
2022 | 2021 | |||||||||
($ in Millions) | FOURTH | THIRD | SECOND | FIRST | FOURTH | |||||
Net Interest Income | ||||||||||
Interest Income - GAAP | $ | 1,170.1 | $ | 799.3 | $ | 524.8 | $ | 383.5 | $ | 362.2 |
Add: FTE Adjustment | 15.5 | 12.3 | 11.1 | 6.7 | 10.0 | |||||
Interest Income (FTE) - Non-GAAP | $ | 1,185.6 | $ | 811.6 | $ | 535.9 | $ | 390.2 | $ | 372.2 |
Net Interest Income - GAAP | $ | 534.5 | $ | 513.0 | $ | 458.7 | $ | 381.0 | $ | 360.6 |
Add: FTE Adjustment | 15.5 | 12.3 | 11.1 | 6.7 | 10.0 | |||||
Net Interest Income (FTE) - Non-GAAP | $ | 550.0 | $ | 525.3 | $ | 469.8 | $ | 387.7 | $ | 370.6 |
Net Interest Margin - GAAP | 1.58 | % | 1.54 | % | 1.31 | % | 1.03 | % | 0.96 | % |
Net Interest Margin (FTE) - Non-GAAP | 1.63 | % | 1.58 | % | 1.35 | % | 1.05 | % | 0.99 | % |
Total Revenue | ||||||||||
Total Revenue - GAAP | $ | 1,519.0 | $ | 1,754.8 | $ | 1,768.7 | $ | 1,718.7 | $ | 1,667.0 |
Add: FTE Adjustment | 15.5 | 12.3 | 11.1 | 6.7 | 10.0 | |||||
Total Revenue (FTE) - Non-GAAP | $ | 1,534.5 | $ | 1,767.1 | $ | 1,779.8 | $ | 1,725.4 | $ | 1,677.0 |
NORTHERN TRUST CORPORATION FOURTH QUARTER 2022 RESULTS
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FORWARD LOOKING STATEMENTS |
WEBCAST OF FOURTH QUARTER EARNINGS CONFERENCE CALL
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NORTHERN TRUST CORPORATION |
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA |
% Change(1)
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($ In Millions Except Per Share Data) |
Q4 2022 vs.
| |||||||||
Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | ||||||
Noninterest Income | ||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,042.1 | $ | 1,078.7 | $ | 1,111.0 | (3) | % | (6) | % |
Foreign Exchange Trading Income | 65.4 | 64.7 | 76.9 | 1 | (15) | |||||
Treasury Management Fees | 8.3 | 9.3 | 10.6 | (9) | (21) | |||||
Security Commissions and Trading Income | 35.1 | 32.1 | 35.9 | 9 | (2) | |||||
Other Operating Income | 47.3 | 57.3 | 72.3 | (18) | (35) | |||||
Investment Security Gains (Losses), net | (213.7) | (0.3) | (0.3) | N/M | N/M | |||||
Total Noninterest Income | 984.5 | 1,241.8 | 1,306.4 | (21) | (25) | |||||
Net Interest Income | ||||||||||
Interest Income | 1,170.1 | 799.3 | 362.2 | 46 | N/M | |||||
Interest Expense | 635.6 | 286.3 | 1.6 | 122 | N/M | |||||
Net Interest Income | 534.5 | 513.0 | 360.6 | 4 | 48 | |||||
Total Revenue | 1,519.0 | 1,754.8 | 1,667.0 | (13) | (9) | |||||
Provision for Credit Losses | 5.0 | 0.5 | (11.5) | N/M | N/M | |||||
Noninterest Expense | ||||||||||
Compensation | 584.3 | 553.3 | 510.2 | 6 | 15 | |||||
Employee Benefits | 103.6 | 109.9 | 107.9 | (6) | (4) | |||||
Outside Services | 232.9 | 220.9 | 224.2 | 5 | 4 | |||||
Equipment and Software | 229.4 | 212.4 | 196.1 | 8 | 17 | |||||
Occupancy | 65.7 | 51.3 | 51.8 | 28 | 27 | |||||
Other Operating Expense | 107.7 | 82.0 | 78.7 | 31 | 37 | |||||
Total Noninterest Expense | 1,323.6 | 1,229.8 | 1,168.9 | 8 | 13 | |||||
Income before Income Taxes | 190.4 | 524.5 | 509.6 | (64) | (63) | |||||
Provision for Income Taxes | 34.7 | 129.7 | 103.2 | (73) | (66) | |||||
NET INCOME | $ | 155.7 | $ | 394.8 | $ | 406.4 | (61) | % | (62) | % |
Preferred Stock Dividends | 4.7 | 16.2 | 4.7 | (71) | - | |||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 151.0 | $ | 378.6 | $ | 401.7 | (60) | % | (62) | % |
Earnings Allocated to Participating Securities | 2.3 | 3.2 | 3.0 | (29) | (26) | |||||
Earnings Allocated to Common and Potential Common Shares | $ | 148.7 | $ | 375.4 | $ | 398.7 | (60) | (63) | ||
Per Common Share | ||||||||||
Net Income | ||||||||||
Basic | $ | 0.71 | $ | 1.80 | $ | 1.92 | (61) | % | (63) | % |
Diluted | 0.71 | 1.80 | 1.91 | (61) | (63) | |||||
Average Common Equity | $ | 10,094.5 | $ | 10,050.7 | $ | 10,956.7 | - | % | (8) | % |
Return on Average Common Equity | 5.9 | % | 14.9 | % | 14.5 | % | ||||
Return on Average Assets | 0.42 | % | 1.07 | % | 1.00 | % | ||||
Cash Dividends Declared per Common Share | $ | 0.75 | $ | 0.75 | $ | 0.70 | - | % | 7 | % |
Average Common Shares Outstanding (000s) | ||||||||||
Basic | 208,423 | 208,400 | 207,708 | |||||||
Diluted | 208,894 | 208,889 | 208,593 | |||||||
Common Shares Outstanding (EOP) (000s) | 208,428 | 208,416 | 207,762 |
NORTHERN TRUST CORPORATION |
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | ||||||
($ In Millions Except Per Share Data) | TWELVE MONTHS | |||||
2022 | 2021 |
% Change(1)
| ||||
Noninterest Income | ||||||
Trust, Investment and Other Servicing Fees | $ | 4,432.6 | $ | 4,361.1 | 2 | % |
Foreign Exchange Trading Income | 288.6 | 292.6 | (1) | |||
Treasury Management Fees | 39.3 | 44.3 | (11) | |||
Security Commissions and Trading Income | 136.2 | 140.2 | (3) | |||
Other Operating Income | 191.3 | 243.9 | (22) | |||
Investment Security Gains (Losses), net | (214.0) | (0.3) | N/M | |||
Total Noninterest Income | 4,874.0 | 5,081.8 | (4) | |||
Net Interest Income | ||||||
Interest Income | 2,877.7 | 1,406.5 | 105 | |||
Interest Expense | 990.5 | 23.8 | N/M | |||
Net Interest Income | 1,887.2 | 1,382.7 | 36 | |||
Total Revenue | 6,761.2 | 6,464.5 | 5 | |||
Provision for Credit Losses | 12.0 | (81.5) | N/M | |||
Noninterest Expense | ||||||
Compensation | 2,248.0 | 2,011.0 | 12 | |||
Employee Benefits | 437.4 | 431.4 | 1 | |||
Outside Services | 880.3 | 849.4 | 4 | |||
Equipment and Software | 838.8 | 736.3 | 14 | |||
Occupancy | 219.1 | 208.7 | 5 | |||
Other Operating Expense | 359.3 | 299.1 | 20 | |||
Total Noninterest Expense | 4,982.9 | 4,535.9 | 10 | |||
Income before Income Taxes | 1,766.3 | 2,010.1 | (12) | |||
Provision for Income Taxes | 430.3 | 464.8 | (7) | |||
NET INCOME | $ | 1,336.0 | $ | 1,545.3 | (14) | % |
Preferred Stock Dividends
| 41.8 | 41.8 | - | |||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 1,294.2 | $ | 1,503.5 | (14) | % |
Earnings Allocated to Participating Securities | 11.8 | 12.9 | (9) | |||
Earnings Allocated to Common and Potential Common Shares | $ | 1,282.4 | $ | 1,490.6 | (14) | % |
Per Common Share | ||||||
Net Income | ||||||
Basic | $ | 6.16 | $ | 7.16 | (14) | % |
Diluted | 6.14 | 7.14 | (14) | |||
Average Common Equity | $ | 10,196.6 | $ | 10,812.1 | (6) | % |
Return on Average Common Equity | 12.7 | % | 13.9 | % | ||
Return on Average Assets | 0.88 | % | 0.99 | % | ||
Cash Dividends Declared per Common Share | $ | 2.90 | $ | 2.80 | 4 | % |
Average Common Shares Outstanding (000s) | ||||||
Basic | 208,309 | 208,076 | ||||
Diluted | 208,867 | 208,899 | ||||
Common Shares Outstanding (EOP) (000s) | 208,428 | 207,762 |
NORTHERN TRUST CORPORATION |
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||
($ In Millions) |
% Change(1)
| |||||||||
December 31, 2022 vs.
| ||||||||||
December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||
Assets | ||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 39,961.9 | $ | 39,582.4 | $ | 64,495.1 | 1 | % | (38) | % |
Interest-Bearing Due from and Deposits with Banks(2)
| 4,926.6 | 4,097.4 | 3,849.2 | 20 | 28 | |||||
Federal Funds Sold | 32.0 | 30.1 | - | 6 | N/M | |||||
Securities Purchased under Agreements to Resell | 1,070.3 | 1,166.2 | 686.4 | (8) | 56 | |||||
Debt Securities | ||||||||||
Available for Sale | 26,699.9 | 26,979.3 | 38,010.5 | (1) | (30) | |||||
Held to Maturity | 25,036.1 | 25,249.8 | 23,564.5 | (1) | 6 | |||||
Trading Account | 95.2 | 0.1 | 0.3 | N/M | N/M | |||||
Total Debt Securities | 51,831.2 | 52,229.2 | 61,575.3 | (1) | (16) | |||||
Loans and Leases | 42,893.3 | 43,991.9 | 40,480.6 | (2) | 6 | |||||
Other Interest-Earning Assets(3)
| 1,769.4 | 1,641.3 | 1,189.4 | 8 | 49 | |||||
Total Earning Assets | 142,484.7 | 142,738.5 | 172,276.0 | - | (17) | |||||
Allowance for Credit Losses | (161.1) | (154.4) | (150.6) | 4 | 7 | |||||
Cash and Due from Banks and Other Central Bank Deposits(4)
| 1,737.2 | 2,000.3 | 1,244.1 | (13) | 40 | |||||
Buildings and Equipment | 500.5 | 469.2 | 488.7 | 7 | 2 | |||||
Client Security Settlement Receivables | 1,698.3 | 3,077.3 | 1,941.2 | (45) | (13) | |||||
Goodwill | 691.3 | 679.0 | 706.2 | 2 | (2) | |||||
Other Assets | 8,085.8 | 11,029.7 | 7,384.2 | (27) | 10 | |||||
Total Assets | $ | 155,036.7 | $ | 159,839.6 | $ | 183,889.8 | (3) | % | (16) | % |
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings, Money Market and Other | $ | 31,128.6 | $ | 30,968.5 | $ | 35,003.1 | 1 | % | (11) | % |
Savings Certificates and Other Time | 1,981.3 | 1,217.1 | 842.7 | 63 | 135 | |||||
Non-U.S. Offices - Interest-Bearing | 65,481.9 | 68,503.7 | 75,767.1 | (4) | (14) | |||||
Total Interest-Bearing Deposits | 98,591.8 | 100,689.3 | 111,612.9 | (2) | (12) | |||||
Federal Funds Purchased | 1,896.9 | 4,364.8 | 0.2 | (57) | N/M | |||||
Securities Sold under Agreements to Repurchase | 567.2 | 561.4 | 531.9 | 1 | 7 | |||||
Other Borrowings | 7,592.3 | 7,153.6 | 3,583.8 | 6 | 112 | |||||
Senior Notes | 2,724.2 | 2,707.4 | 2,505.5 | 1 | 9 | |||||
Long-Term Debt | 2,066.2 | 1,068.3 | 1,145.7 | 93 | 80 | |||||
Total Interest-Related Funds | 113,438.6 | 116,544.8 | 119,380.0 | (3) | (5) | |||||
Demand and Other Noninterest-Bearing Deposits | 25,340.3 | 27,858.1 | 48,315.5 | (9) | (48) | |||||
Other Liabilities | 4,998.3 | 4,406.3 | 4,177.5 | 13 | 20 | |||||
Total Liabilities | 143,777.2 | 148,809.2 | 171,873.0 | (3) | (16) | |||||
Common Equity | 10,374.6 | 10,145.5 | 11,131.9 | 2 | (7) | |||||
Preferred Equity | 884.9 | 884.9 | 884.9 | - | - | |||||
Total Equity | 11,259.5 | 11,030.4 | 12,016.8 | 2 | (6) | |||||
Total Liabilities and Stockholders' Equity | $ | 155,036.7 | $ | 159,839.6 | $ | 183,889.8 | (3) | % | (16) | % |
NORTHERN TRUST CORPORATION |
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | ||||||||||
($ In Millions) |
% Change(1)
| |||||||||
Q4 2022 vs.
| ||||||||||
Q4 2022 | Q3 2022 | Q4 2021 | Q3 2022 | Q4 2021 | ||||||
Assets | ||||||||||
Federal Reserve and Other Central Bank Deposits | $ | 32,755.2 | $ | 30,548.7 | $ | 40,986.0 | 7 | % | (20) | % |
Interest-Bearing Due from and Deposits with Banks(2)
| 4,186.1 | 3,976.8 | 4,777.6 | 5 | (12) | |||||
Federal Funds Sold | 14.0 | 5.1 | 0.1 | 175 | N/M | |||||
Securities Purchased under Agreements to Resell | 1,165.5 | 1,270.9 | 876.0 | (8) | 33 | |||||
Debt Securities | ||||||||||
Available for Sale | 26,742.4 | 28,482.8 | 38,216.1 | (6) | (30) | |||||
Held to Maturity | 25,135.3 | 25,126.6 | 22,960.0 | - | 9 | |||||
Trading Account | 46.4 | 0.4 | 0.5 | N/M | N/M | |||||
Total Debt Securities | 51,924.1 | 53,609.8 | 61,176.6 | (3) | (15) | |||||
Loans and Leases | 42,329.4 | 41,466.4 | 39,860.4 | 2 | 6 | |||||
Other Interest-Earning Assets(3)
| 1,414.2 | 1,268.8 | 1,157.3 | 11 | 22 | % | ||||
Total Earning Assets | 133,788.5 | 132,146.5 | 148,834.0 | 1 | (10) | |||||
Allowance for Credit Losses | (154.6) | (154.1) | (155.8) | - | (1) | |||||
Cash and Due from Banks and Other Central Bank Deposits(4)
| 1,773.7 | 1,903.1 | 2,123.6 | (7) | (16) | |||||
Buildings and Equipment | 491.0 | 481.2 | 497.1 | 2 | (1) | |||||
Client Security Settlement Receivables | 1,809.9 | 1,667.1 | 1,638.5 | 9 | 10 | |||||
Goodwill | 685.8 | 685.5 | 705.4 | - | (3) | |||||
Other Assets | 9,409.3 | 9,672.9 | 7,711.0 | (3) | 22 | |||||
Total Assets | $ | 147,803.6 | $ | 146,402.2 | $ | 161,353.8 | 1 | % | (8) | % |
Liabilities and Stockholders' Equity | ||||||||||
Interest-Bearing Deposits | ||||||||||
Savings, Money Market and Other | $ | 28,488.7 | $ | 29,089.3 | $ | 30,676.1 | (2) | % | (7) | % |
Savings Certificates and Other Time | 1,610.5 | 986.0 | 856.5 | 63 | 88 | |||||
Non-U.S. Offices - Interest-Bearing | 64,024.0 | 64,057.3 | 71,098.6 | - | (10) | |||||
Total Interest-Bearing Deposits | 94,123.2 | 94,132.6 | 102,631.2 | - | (8) | |||||
Federal Funds Purchased | 2,704.7 | 1,967.5 | 0.2 | 37 | N/M | |||||
Securities Sold under Agreements to Repurchase | 392.4 | 489.6 | 313.5 | (20) | 25 | |||||
Other Borrowings | 7,933.2 | 5,991.1 | 4,788.9 | 32 | 66 | |||||
Senior Notes | 2,721.5 | 2,969.6 | 2,510.3 | (8) | 8 | |||||
Long-Term Debt | 1,718.6 | 1,087.6 | 1,150.8 | 58 | 49 | |||||
Floating Rate Capital Debt | - | - | 42.3 | N/M | (100) | |||||
Total Interest-Related Funds | 109,593.6 | 106,638.0 | 111,437.2 | 3 | (2) | |||||
Demand and Other Noninterest-Bearing Deposits | 22,186.3 | 24,355.5 | 33,389.6 | (9) | (34) | |||||
Other Liabilities | 5,044.3 | 4,473.1 | 4,685.4 | 13 | 8 | |||||
Total Liabilities | 136,824.2 | 135,466.6 | 149,512.2 | 1 | (8) | |||||
Common Equity | 10,094.5 | 10,050.7 | 10,956.7 | - | (8) | |||||
Preferred Equity | 884.9 | 884.9 | 884.9 | - | - | |||||
Total Equity | 10,979.4 | 10,935.6 | 11,841.6 | - | (7) | |||||
Total Liabilities and Stockholders' Equity | $ | 147,803.6 | $ | 146,402.2 | $ | 161,353.8 | 1 | % | (8) | % |
NORTHERN TRUST CORPORATION |
(Supplemental Consolidated Financial Information) |
QUARTERLY TREND DATA | QUARTERS | |||||||||
($ In Millions Except Per Share Data) | 2022 | 2021 | ||||||||
FOURTH | THIRD | SECOND | FIRST | FOURTH | ||||||
Net Income Summary | ||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,042.1 | $ | 1,078.7 | $ | 1,143.4 | $ | 1,168.4 | $ | 1,111.0 |
Other Noninterest Income | (57.6) | 163.1 | 166.6 | 169.3 | 195.4 | |||||
Net Interest Income | 534.5 | 513.0 | 458.7 | 381.0 | 360.6 | |||||
Total Revenue | 1,519.0 | 1,754.8 | 1,768.7 | 1,718.7 | 1,667.0 | |||||
Provision for Credit Losses | 5.0 | 0.5 | 4.5 | 2.0 | (11.5) | |||||
Noninterest Expense | 1,323.6 | 1,229.8 | 1,223.6 | 1,205.9 | 1,168.9 | |||||
Income before Income Taxes | 190.4 | 524.5 | 540.6 | 510.8 | 509.6 | |||||
Provision for Income Taxes | 34.7 | 129.7 | 144.4 | 121.5 | 103.2 | |||||
Net Income | $ | 155.7 | $ | 394.8 | $ | 396.2 | $ | 389.3 | $ | 406.4 |
Per Common Share | ||||||||||
Net Income - Basic | $ | 0.71 | $ | 1.80 | $ | 1.86 | $ | 1.78 | $ | 1.92 |
- Diluted | 0.71 | 1.80 | 1.86 | 1.77 | 1.91 | |||||
Cash Dividends Declared per Common Share | 0.75 | 0.75 | 0.70 | 0.70 | 0.70 | |||||
Book Value (EOP) | 49.78 | 48.68 | 48.87 | 50.51 | 53.58 | |||||
Market Value (EOP) | 88.49 | 85.56 | 96.48 | 116.45 | 119.61 | |||||
Financial Ratios | ||||||||||
Return on Average Common Equity | 5.9 | % | 14.9 | % | 15.7 | % | 14.2 | % | 14.5 | % |
Return on Average Assets | 0.42 | 1.07 | 1.03 | 0.97 | 1.00 | |||||
Net Interest Margin (GAAP) | 1.58 | 1.54 | 1.31 | 1.03 | 0.96 | |||||
Net Interest Margin (FTE*) | 1.63 | 1.58 | 1.35 | 1.05 | 0.99 | |||||
Assets Under Custody / Administration ($ in Billions) - End Of Period | ||||||||||
Asset Servicing | $ | 12,705.5 | $ | 11,954.0 | $ | 12,812.2 | $ | 14,513.0 | $ | 15,183.2 |
Wealth Management | 898.5 | 868.0 | 921.5 | 1,031.1 | 1,065.6 | |||||
Total Assets Under Custody / Administration | $ | 13,604.0 | $ | 12,822.0 | $ | 13,733.7 | $ | 15,544.1 | $ | 16,248.8 |
Assets Under Custody ($ In Billions) - End Of Period | ||||||||||
Asset Servicing | $ | 9,712.3 | $ | 9,125.5 | $ | 9,771.2 | $ | 10,987.5 | $ | 11,554.8 |
Wealth Management | 892.3 | 860.8 | 913.0 | 1,022.9 | 1,057.5 | |||||
Total Assets Under Custody | $ | 10,604.6 | $ | 9,986.3 | $ | 10,684.2 | $ | 12,010.4 | $ | 12,612.3 |
Assets Under Management ($ In Billions) - End Of Period | ||||||||||
Asset Servicing | $ | 898.1 | $ | 873.7 | $ | 950.0 | $ | 1,091.6 | $ | 1,191.0 |
Wealth Management | 351.4 | 336.2 | 352.8 | 396.2 | 416.1 | |||||
Total Assets Under Management | $ | 1,249.5 | $ | 1,209.9 | $ | 1,302.8 | $ | 1,487.8 | $ | 1,607.1 |
Asset Quality ($ In Millions) - End Of Period | ||||||||||
Nonaccrual Loans and Leases | $ | 45.9 | $ | 76.4 | $ | 89.7 | $ | 100.8 | $ | 122.3 |
Other Real Estate Owned (OREO) | - | - | 0.1 | 0.2 | 3.0 | |||||
Total Nonaccrual Assets | $ | 45.9 | $ | 76.4 | $ | 89.8 | $ | 101.0 | $ | 125.3 |
Nonaccrual Assets / Loans and Leases and OREO | 0.11 | % | 0.17 | % | 0.22 | % | 0.26 | % | 0.31 | % |
Gross Charge-offs | $ | (0.5) | $ | (5.4) | $ | - | $ | (0.1) | $ | (0.3) |
Gross Recoveries | 0.5 | 0.9 | 5.5 | 3.3 | 1.4 | |||||
Net Recoveries (Charge-offs) | $ | - | $ | (4.5) | $ | 5.5 | $ | 3.2 | $ | 1.1 |
Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases | - | % | (0.04) | % | 0.05 | % | 0.03 | % | 0.01 | % |
Allowance for Credit Losses Assigned to: | ||||||||||
Loans and Leases | $ | 144.3 | $ | 138.7 | $ | 138.2 | $ | 136.3 | $ | 138.4 |
Undrawn Loan Commitments and Standby Letters of Credit | 38.5 | 40.7 | 43.5 | 37.5 | 34.1 | |||||
Debt Securities and Other Financial Assets | 18.1 | 16.5 | 18.2 | 16.1 | 12.2 | |||||
Loans and Leases Allowance / Nonaccrual Loans and Leases | 3.1 | x | 1.8 | x | 1.5 | x | 1.4 | x | 1.1 | x |
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Northern Trust Corporation published this content on 19 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2023 12:20:06 UTC.