Q3 2021 Earnings Release - Northern Trust

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NEWS RELEASEwww.northerntrust.comINVESTOR CONTACT: Mark Bette 312-444-2301 Mark Bette@ntrs.comMEDIA CONTACT: Doug Holt 312-557-1571 Doug Holt@ntrs.comNORTHERN TRUST CORPORATION REPORTS THIRD QUARTERNET INCOME OF 395.7 MILLION, EARNINGS PER DILUTED COMMONSHARE OF 1.80Total Revenueup 10% YoYReturn on AverageCommon Equity 13.7%Common Equity Tier 1Capital 11.9%CHICAGO, OCTOBER 20, 2021 — Northern Trust Corporation today reported third quarter net income per diluted commonshare of 1.80, compared to 1.72 in the second quarter of 2021 and 1.32 in the third quarter of 2020. Net income was 395.7million, compared to 368.1 million in the prior quarter and 294.5 million in the prior-year quarter.MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:“Northern Trust’s performance in the third quarter reflected the continued strength of our company and growthacross each of our businesses. The results produced strong growth in earnings and a return on average commonequity of 13.7%. Revenue grew by 10% compared to last year, as new business continued to contribute to growthin our trust, investment and other servicing fees. Net interest income also increased on a year-over-year basis forthe first time since the end of 2019, driven by growth in our balance sheet in support of our clients’ liquidity needs.The quarter’s results compared to the prior year produced positive fee and total operating leverage, and solidimprovements in profitability and returns, despite the persistent low interest rate environment. We achieved theseresults while continuing to focus on delivering exceptional services and solutions to our clients, driving efficiency,and investing for future profitable growth.”FINANCIAL SUMMARY & KEY METRICS% ChangeQ3 2021 vs.( In Millions except per share data)Trust, Investment and Other Servicing FeesQ3 2021 1,111.0Q2 2021 1,075.4Q3 2020 1,003.8Q2 2021Q3 20203%11 %Other Noninterest Income176.4169.3152.7416Net Interest Income (FTE*)357.1343.9336.546Total Revenue (FTE*) 1,644.5 1,588.6 1,493.0Noninterest Expense 1,128.7 1,120.8 1,094.7Provision for Credit Losses(13.0)(27.0)0.5Provision for Income Taxes122.4118.410.78.3FTE Adjustment*4%1%10 %3%N/MN/M95.43287.92836Net Income 395.7 368.1 294.57%34 %Earnings Allocated to Common andPotential Common SharesDiluted Earnings per Common Share 376.5 360.2 275.05%37 % 1.80 1.72 1.325%37 %1%11 %Return on Average Common EquityReturn on Average AssetsAverage Assets13.7 %1.00 % 156,452.813.7 %0.96 % 154,300.110.5 %0.83 % 140,925.4N/M - Not meaningful(*)Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principle financial measuresthat facilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSCLIENT ASSETSAssets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investmentand other servicing fees, the largest component of noninterest income.As of( In Billions)Assets Under Custody/AdministrationCorporate & Institutional Services (C&IS)Wealth ManagementSeptember 30,2021*June 30, 2021% Change September 30, 2021 vs.September 30,2020September 30,2020June 30, 2021 14,799.8 976.014,754.1 973.012,263.2814.4—%—21 %20Total Assets Under Custody/AdministrationAssets Under Custody(1)Corporate & Institutional ServicesWealth Management 15,775.8 15,727.1 13,077.6—%21 % 11,283.6 962.911,260.8 967.89,312.2810.4—%—21 %19Total Assets Under CustodyAssets Under ManagementCorporate & Institutional ServicesWealth Management 12,246.5 12,228.6 10,122.6—%21 % 1,159.5 372.91,168.3 371.1993.2318.5(1)%—17 %17Total Assets Under Management 1,532.4 1,539.4 1,311.7—%17 %(1)(*)Assets Under Custody are a component of Assets Under Custody/Administration.Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.TRUST, INVESTMENT AND OTHER SERVICING FEES% Change Q3 2021 vs.( In Millions)C&IS Trust, Investment and Other Servicing FeesCustody and Fund AdministrationInvestment ManagementSecurities LendingOtherQ3 2021Q2 2021Q3 2020Q2 2021Q3 2020 460.2 113.620.236.2454.9 100.719.536.4395.0136.819.733.41%133—17 %(17)28 630.2 611.5 584.93%8% 178.8 130.297.074.8174.3 127.293.868.6151.1110.984.772.23%23918 %17154Total Wealth Management 480.8 463.9 418.94%15 %Total Consolidated Trust, Investment and Other Servicing Fees 1,111.0 1,075.4 1,003.83%11 %Total C&ISWealth Management Trust, Investment and Other Servicing FeesCentralEastWestGlobal Family Office (GFO)C&IS and Wealth Management trust, investment and other servicing fees are impacted by both one-month and one-quarterlagged asset values.Total C&IS trust, investment and other servicing fees increased sequentially and from the prior-year quarter. Custody and fund administration fees increased sequentially primarily due to favorable markets and new business,partially offset by unfavorable currency translation and lower transaction volumes. Custody and fund administration feesincreased from the prior-year quarter primarily due to favorable markets and new business. Investment management fees increased sequentially primarily due to new business and favorable markets. Investmentmanagement fees decreased from the prior-year quarter primarily due to higher money market mutual fund fee waivers,partially offset by favorable markets and new business.Total Wealth Management trust, investment and other servicing fees increased sequentially and from the prior-year quarter. Fees in the regions (Central, East and West) increased sequentially primarily due to favorable markets. Fees in theregions increased from the prior-year quarter primarily due to favorable markets and new business, partially offset byhigher money market mutual fund fee waivers. Fees in GFO increased sequentially primarily due to new business, favorable markets and lower money market mutualfund fee waivers. Fees in GFO increased from the prior-year quarter primarily due to favorable markets and newbusiness, partially offset by higher money market mutual fund fee waivers.2

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSOTHER NONINTEREST INCOME% Change Q3 2021 vs.( In Millions)Other Noninterest IncomeForeign Exchange Trading IncomeTreasury Management FeesSecurity Commissions and Trading IncomeOther Operating IncomeInvestment Security Gains, netTotal Other Noninterest IncomeQ3 2021Q2 2021Q3 2020Q2 2021Q3 2020 66.4 11.236.562.3—70.6 (3)4017N/M 176.4 169.3 152.74%16 %N/M - Not meaningfulForeign exchange trading income decreased sequentially primarily due to lower client volumes and market volatility. Foreignexchange trading income increased from the prior-year quarter primarily due to higher client volumes.Security commissions and trading income increased sequentially primarily driven by higher revenue from interest rate swaps.Security commissions and trading income increased compared to the prior-year quarter primarily due to higher revenue frominterest rate swaps and core brokerage.Other operating income increased sequentially primarily due to lower expenses related to existing swap agreements related toVisa Inc. Class B common shares and distributions from investments in community development projects. Other operatingincome increased compared to the prior-year quarter primarily driven by distributions from investments in communitydevelopment projects and higher banking and credit-related service charges, partially offset by lower miscellaneous income. Thelower miscellaneous income was primarily associated with a market value decrease in the supplemental compensation plans,which also resulted in a related decrease in supplemental compensation plan expense reported in other operating expense.NET INTEREST INCOME% Change Q3 2021 vs.( In Millions)Q3 2021Net Interest IncomeInterest Income (FTE*)Interest Expense Net Interest Income (FTE*)Average Earning Assets Net Interest Margin (FTE*)362.04.9357.1143,9530.98 %Q2 2021 351.47.5343.9142,0240.97 %Q3 2020 363.326.8336.5129,3681.03 %Q2 20213 %(35)4 %1 %1 bpsQ3 2020— %(82)6 %11 %(5)bps(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-generally accepted accounting principle financial measures thatfacilitate the analysis of asset yields. Please refer to the Reconciliation to Fully Taxable Equivalent section for further detail.Net interest income on an FTE basis increased sequentially primarily due to higher average earning assets and a slightly highernet interest margin. Net interest income on an FTE basis increased from the prior-year quarter primarily due to higher averageearning assets, partially offset by a lower net interest margin.The net interest margin on an FTE basis increased sequentially primarily due to favorable balance sheet volume and mix shift,partially offset by lower average interest rates. The net interest margin on an FTE basis decreased from the prior-year quarterprimarily driven by lower average interest rates, partially offset by favorable balance sheet volume and mix shift.Average earning assets increased sequentially primarily due to higher levels of loans and short-term interest-bearing depositswith banks, partially offset by lower levels of securities. Average earning assets increased from the prior-year quarter primarilydue to higher levels of short-term interest-bearing deposits with banks and loans. Funding of the balance sheet reflected higherlevels of client deposits.3

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSPROVISION FOR CREDIT LOSSESAs of and for the three-months ended,( In Millions)Allowance for Credit LossesBeginning Allowance for Credit LossesProvision for Credit LossesNet Recoveries (Charge-Offs)Ending Allowance for Credit LossesAllowance assigned to:Loans and LeasesUndrawn Loan Commitments andStandby Letters of CreditDebt Securities and Other Financial AssetsEnding Allowance for Credit LossesSeptember 30,2021 June 30, 2021September 30,2020% Change September 30, 2021 vs.June 30, 2021 September 30, 2020 207.0 (13.0)1.1195.1 230.8 (27.0)3.2207.0 267.00.50.4267.9(10)%N/MN/M(6)%(22)%N/MN/M(27)% 143.9 148.8 215.4(3)%(33)% 39.811.4195.1 46.511.7207.0 44.97.6267.9(14)(1)(6)%(11)50(27)%N/M - Not meaningfulQ3 2021The release of credit reserves in the current quarter was primarily due to a decrease in the reserve evaluated on a collectivebasis, which relates to pooled financial assets sharing similar risk characteristics. The decrease in the collective basis reservewas driven by continued improvements in projected economic conditions and portfolio credit quality, partially offset by portfoliogrowth. Decreases in the collective basis reserve were primarily in the commercial and institutional and commercial real estateportfolios.Q2 2021The release of credit reserves in the prior quarter was primarily due to a decrease in the reserve evaluated on a collective basis,driven by continued improvements in projected economic conditions at the time, as well as improved industry-specific conditions,partially offset by credit deterioration associated with a limited number of commercial real estate loans and overall portfoliogrowth.Q3 2020The provision in the prior-year quarter was primarily due to an increase in the reserve evaluated on a collective basis driven byprojected economic conditions at the time, resulting from the ongoing COVID-19 pandemic and related market and economicimpacts, with increases in the private client, commercial real estate, and residential real estate portfolios, partially offset by adecrease in the commercial and institutional portfolio. The overall increase in the reserve on a collective basis was partially offsetby a decrease in the reserve associated with loans evaluated on an individual basis.4

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSNONINTEREST EXPENSE% Change Q3 2021 vs.( In Millions)Q3 2021Noninterest ExpenseCompensationEmployee BenefitsOutside ServicesEquipment and SoftwareOccupancyOther Operating ExpenseTotal Noninterest Expense Q2 2021Q3 2020Q2 2021Q3 2020496.0 101.7210.7185.253.981.21,128.7 486.3 118.4218.1178.352.267.51,120.8 7%41384(36)3%20,80020,60020,7001%—%End of Period Full-Time Equivalent StaffCompensation expense increased sequentially and compared to the prior-year quarter primarily due to higher incentives.Employee benefits expense decreased sequentially primarily due to a lower pension settlement charge and lower payroll taxes.A 6.9 million pension settlement charge was included in the current quarter compared to a 17.6 million charge in the priorquarter. Employee benefits expense increased compared to the prior-year quarter primarily due to a pension settlement chargein the current quarter.Outside services expense decreased sequentially primarily due to lower technical services costs, partially offset by higher subcustodian expenses. Outside services expense increased compared to the prior-year quarter primarily due to higher third-partyadvisory fees, technical services costs and sub-custodian expenses.Equipment and software expense increased sequentially and compared to the prior-year quarter primarily due to highersoftware support and rental costs and higher amortization.Other operating expense increased sequentially primarily due to costs associated with the Northern Trust-sponsored golftournament, partially offset by a decrease in other miscellaneous expenses. Other operating expense decreased compared tothe prior-year quarter primarily due to lower charges associated with account servicing activities and a decline in othermiscellaneous expenses, including lower supplemental compensation plan expense. The lower supplemental compensation planexpense resulted in a related decrease in miscellaneous income reported in noninterest income. The account servicing activitiesin the prior-year quarter included a 43.4 million charge related to a corporate action processing error.PROVISION FOR INCOME TAX% Change Q3 2021 vs.( In Millions)Net IncomeIncome before Income TaxesProvision for Income TaxesNet IncomeEffective Tax RateQ3 2021 518.1 122.4395.7 23.6 %Q2 2021486.5 118.4368.1 24.3 %Q3 2020389.995.4294.524.5 %Q2 20216 %37 %(71)bpsQ3 202033 %2834 %(84)bpsThe effective tax rate was higher in the previous quarter due to the deferred tax impact of the enacted increase in the UKstatutory tax rate. The effective tax rate decreased compared to the prior-year quarter primarily due to an increase in allocatedtax credits related to community development projects and a lower net tax impact from international operations.5

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSCAPITAL ACTIONSThe Corporation returned approximately 248.0 million to common shareholders in the current quarter through dividendsand the repurchase of shares. During the current quarter, the Corporation declared cash dividends totaling 148.0 million tocommon stockholders and repurchased 859,587 shares of common stock, including 11,169 shares withheld related to sharebased compensation, at a total cost of 100.0 million ( 116.34 average price per share). The Corporation also declared cashdividends totaling 16.2 million to preferred stockholders during the current quarter.CAPITAL RATIOSThe capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong atSeptember 30, 2021, exceeding the minimum requirements for classification as “well-capitalized” under applicable U.S.regulatory requirements.The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and TheNorthern Trust Company determined by Basel III phased-in requirements.September 30, 2021*Capital Ratios Northern Trust CorporationCommon Equity Tier 1 CapitalTier 1 CapitalTotal CapitalTier 1 LeverageSupplementary LeverageStandardizedApproach11.9 %12.914.37.1N/AAdvancedApproach13.0 %14.115.47.18.4September 30, 2021*Capital Ratios The Northern Trust CompanyCommon Equity Tier 1 CapitalTier 1 CapitalTotal CapitalTier 1 LeverageSupplementary LeverageStandardizedApproach12.5 %12.513.76.8N/AAdvancedApproach13.8 %13.814.96.88.1June 30, 2021StandardizedApproach12.0 %13.114.57.1N/AAdvancedApproach13.1 %14.215.57.18.2June 30, 2021StandardizedApproach12.3 %12.313.66.7N/AAdvancedApproach13.6 %13.614.76.77.7September 30, 2020StandardizedApproach13.4 os13.9 s4.5 %6.08.04.03.0September 30, 2020StandardizedApproach13.8 os14.6 %14.616.07.28.16.5 %8.010.05.03.0MinimumCapitalRatios4.5 %6.08.04.03.0(*) Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.6

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSRECONCILIATION TO FULLY TAXABLE EQUIVALENTThe following table presents a reconciliation of interest income, net interest income, net interest margin, and total revenueprepared in accordance with generally accepted accounting principles to such measures on an FTE basis, which are nongenerally accepted accounting financial measures. Net interest margin is calculated by dividing annualized net interest incomeby average interest-earning assets. Management believes this presentation provides a clearer indication of these financialmeasures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assetsare comparable; however, the adjustment to an FTE basis has no impact on net income.QUARTERS2021( in Millions)Net Interest IncomeInterest Income - GAAPAdd: FTE AdjustmentInterest Income (FTE) - Non-GAAPNet Interest Income - GAAPAdd: FTE AdjustmentNet Interest Income (FTE) - Non-GAAPNet Interest Margin - GAAPNet Interest Margin (FTE) - Non-GAAPTotal RevenueTotal Revenue - GAAPAdd: FTE AdjustmentTotal Revenue (FTE) - Non-GAAPTHIRD SECOND351.310.7362.0 346.410.7357.1 0.95 %0.98 % 1,633.810.7 1,644.52020 FIRST343.18.3351.4 335.68.3343.9 0.95 %0.97 % 1,580.38.3 1,588.6349.96.6356.5 340.16.6346.7 0.98 %1.00 % FOURTH1,583.46.61,590.0 THIRD352.610.7363.3 334.410.7345.1 1.01 %1.05 % 1,521.910.7 1,532.6 355.47.9363.3328.67.9336.51.01 %1.03 % 1,485.17.9 1,493.07

NORTHERN TRUST CORPORATION THIRD QUARTER 2021 RESULTSFORWARD LOOKING STATEMENTSThis release may include statements which constitute “forward-looking statements” within the meaning of the safe harborprovisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words orphrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” andsimilar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statementsinclude statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook, capitaladequacy, dividend policy and share repurchase program, accounting estimates and assumptions, credit quality includingallowance levels, future pension plan contributions, effective tax rate, anticipated expense levels, contingent liabilities,acquisitions, strategies, market and industry trends, and expectations regarding the impact of accounting pronouncements andlegislation. Forward-looking statements also include statements, other than those related to historical facts, that relate to theongoing COVID-19 pandemic and its impact on global economic and market conditions and Northern Trust's business, financialcondition, and results of operations. These statements are based on Northern Trust’s current beliefs and expectations of futureevents or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statementsare also based on assumptions about many important factors, including the factors discussed in Northern Trust’s most recentannual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available onNorthern Trust’s website. We caution you not to place undue reliance on any forward-looking statement as actual results maydiffer materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to updateits forward-looking statements.WEBCAST OF THIRD QUARTER EARNINGS CONFERENCE CALLNorthern Trust’s third quarter earnings conference call will be webcast on October 20, 2021.The live call will be conducted at 9:00 a.m. CT and is accessible on Northern Trust’s website -relationsA recording of the live call will be available on Northern Trust’s website from 1:00 p.m. CT on October 20, 2021, for approximatelyfour weeks. Participants will need Windows Media or Adobe Flash software. This earnings release can also be accessed atNorthern Trust’s website.About Northern TrustNorthern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset managementand banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has aglobal presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle Eastand the Asia-Pacific region. As of September 30, 2021, Northern Trust had assets under custody/administration of US 15.8trillion, and assets under management of US 1.5 trillion. For more than 130 years, Northern Trust has earned distinction as anindustry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter@NorthernTrust.Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limitedliability in the U.S. Global legal and regulatory information can be found at .8

NORTHERN TRUST CORPORATION(Supplemental Consolidated Financial Information)% Change(1)STATEMENT OF INCOME DATA( In Millions Except Per Share Data)Q3 2021Q2 2021Q3 2020Q3 2021 vs.Q2 2021Q3 2020Noninterest IncomeTrust, Investment and Other Servicing Fees 1,111.0 1,075.4 1,003.83%11 %Foreign Exchange Trading Income66.470.661.6(6)8Treasury Management Fees11.211.311.6—(3)Security Commissions and Trading Income36.533.026.01040Other Operating Income62.354.453.51517Investment Security Gains, netTotal Noninterest 343.1355.42(1)Net Interest IncomeInterest IncomeInterest ExpenseNet Interest IncomeTotal RevenueProvision for Credit ation496.0486.3Employee Benefits101.7118.497.5(14)4Outside Services210.7218.1186.0(3)13Equipment and Software185.2178.3170.74853.952.251.834Noninterest ExpenseOccupancyOther Operating ncome before Income Taxes518.1486.5389.9633Provision for Income Taxes122.4118.495.43287%34 %Total Noninterest ExpenseNET INCOME Preferred Stock Dividends 16.2NET INCOME APPLICABLE TO COMMON STOCK Earnings Allocated to Participating SecuritiesEarnings Allocated to Common and PotentialCommon Shares395.7379.5368.1 4.7 3.0363.4294.516.2 3.2278.33.3N/M4%(8)—36 %(9) 376.5 360.2 275.05%37 % 1.81 1.73 1.325%37 %537Per Common ShareNet IncomeBasicDilutedAverage Common Equity1.801.721.32 10,968.0 10,666.1 10,518.0Return on Average Common Equity13.7 %13.7 %10.5 %Return on Average Assets1.00 %0.96 %0.83 %Cash Dividends Declared per Common Share 0.70 0.70 0.703%4%—%—%Average Common Shares Outstanding 138208,688207,661208,395208,121Common Shares Outstanding (EOP) (000s)(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.N/M - Not meaningful9

NORTHERN TRUST CORPORATION(Supplemental Consolidated Financial Information)STATEMENT OF INCOME DATA( In Millions Except Per Share Data)NINE MONTHS20212020% Change(1)Noninterest IncomeTrust, Investment and Other Servicing Fees Foreign Exchange Trading Income3,250.1 215.7Treasury Management Fees2,968.99%221.8(3)33.734.0(1)Security Commissions and Trading Income104.3100.93Other Operating 9(19)Investment Security Gains, netTotal Noninterest Income19N/MNet Interest IncomeInterest Income22.2182.1(88)Net Interest IncomeInterest Expense1,022.11,108.8(8)Total Revenue4,797.54,578.95Provision for Credit Losses(70.0)127.5N/MNoninterest ExpenseCompensation1,500.81,421.86Employee Benefits323.5285.813Outside Services625.2555.013Equipment and Software540.2497.19Occupancy156.9162.9(4)Other Operating Expense220.4274.6(20)Total Noninterest Expense3,367.03,197.25Income before Income Taxes1,500.51,254.220Provision for Income TaxesNET INCOME361.6285.827 968.418 % 916.91,091.9 906.320 %5.24 4.3521 %5.224.3420 10,763.4 10,192.0 1,138.9 1,101.8 (2)Preferred Stock DividendsNET INCOME APPLICABLE TO COMMON STOCK37.1Earnings Allocated to Participating SecuritiesEarnings Allocated to Common and Potential Common Shares51.59.910.6(28)20 %(7)Per Common ShareNet IncomeBasicDilutedAverage Common EquityReturn on Average Common Equity13.7 %12.0 %Return on Average Assets0.98 %0.96 %Cash Dividends Declared per Common Share 2.10 2.106%—%Average Common Shares Outstanding 661208,121Common Shares Outstanding (EOP) (000s)(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.(2)Dividends on Preferred Stock in 2020 includes 11.5 million related to the difference between the redemption amount of the Corporation's Series C NonCumulative Perpetual Preferred Stock, which was redeemed in the first quarter of 2020, and its carrying value.N/M - Not meaningful10

NORTHERN TRUST CORPORATION(Supplemental Consolidated Financial Information)BALANCE SHEET( In Millions)% Change(1)September 30, 2021 vs.September30, 2021June 30, 2021September30, 2020June 30, 2021September30, 2020AssetsFederal Reserve and Other Central Bank Deposits and Other(2) 49,960.3 54,159.5 39,205.9(3)Interest-Bearing Due from and Deposits with BanksFederal Funds Sold(8)%27 ies Purchased under Agreements to ResellSecuritiesU.S. GovernmentObligations of States and Political SubdivisionsGovernment Sponsored l Securities60,269.159,844.060,596.51(1)Loans and LeasesTotal Earning AssetsAllowance for Credit 8138,952.7(2)12(3)(30)Cash and Due from Banks and Other Central Bank Deposits(5)1,875.21,683.32,690.111(30)Buildings and EquipmentClient Security Settlement ReceivablesGoodwillOther tal AssetsLiabilities and Stockholders’ EquityInterest-Bearing DepositsSavings, Money Market and OtherSavings Certificates and Other TimeNon-U.S. Offices - Interest-BearingTotal Interest-Bearing DepositsFederal Funds PurchasedSecurities Sold under Agreements to Repurchase(155.3)(160.5)(223.0) 169,085.7 172,291.1 152,082.0(2)%11 % 30,580.4 31,604.7 3)%—(5)20 —N/M573.6529.1269.8Other Borrowings5,617.45,140.65,771.89(3)Senior Notes2,527.73,036.03,655.6(17)(31)Long-Term 4,377.71232412(2)12Floating Rate Capital DebtTotal Interest-Related FundsDemand and Other Noninterest-Bearing DepositsOther 68.1140,502.9Common Equity11,013.910,938.110,694.213Preferred 1Total LiabilitiesTotal EquityTotal Liabilities and Stockholders’ Equity 169,085.7 172,291.1 152,082.01(2)%311 %(1)Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.(2)Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for thepurpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets in our periodic filings with the SEC.(3)Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits withBanks as presented on the consolidated balance sheets in our periodic filings with the SEC.(4)Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in OtherAssets on the consolidated balance sheets in our periodic filings with the SEC.(5)Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central BankDeposits as presented on the consolidated balance sheets in our periodic filings with the SEC.11

NORTHERN TRUST CORPORATION(Supplemental Consolidated Financial Information)AVERAGE BALANCE SHEET( In Millions)% Change(1)Q3 2021Q2 2021Q3 2020Q3 2021 vs.Q2 2021Q3 2020AssetsFederal Reserve and Other

PROVISION FOR CREDIT LOSSES As of and for the three-months ended, % Change September 30, 2021 vs. ( In Millions) September 30, 2021 June 30, 2021