Skip to content

NTRS · Northern Trust

33 filings

10-K

NTRS 10-K Annual Reports

Northern Trust - 33 annual reports

Filing record · 2016–202610-K1110-Q338-K118

2025
Northern Trust Annual Report, Year Ended Dec 31, 2025
Northern Trust Corporation's 2025 Annual Report on Form 10-K reports net income of $1.74 billion for 2025, down from $2.03 billion in 2024, on total revenue of $8.09 billion versus $8.29 billion a year earlier. Noninterest income fell to $5.68 billion from $6.11 billion, largely because 2024 included a $878.4 million net gain from a Visa Exchange Offer. Trust, Investment and Other Servicing Fees rose to $5.02 billion, driven by favorable markets, net new business and currency movements. Net interest income increased to $2.41 billion from $2.18 billion, primarily from higher deposits and lower funding costs. Noninterest expense rose to $5.75 billion from $5.63 billion. Diluted EPS was $8.74 versus $9.77. The balance sheet grew to $177.1 billion in total assets at December 31, 2025, from $155.5 billion, with total deposits of $142.8 billion. Stockholders' equity reached $13.0 billion. Common Equity Tier 1 ratio was 12.6% on the standardized approach and 15.0% on the advanced approach. Assets under custody/administration were $18.7 trillion and assets under management were $1.8 trillion. The Corporation returned $1.9 billion to common stockholders through dividends and repurchases in 2025, and raised the quarterly common dividend to $0.80 per share from $0.75. The filing also flags ongoing regulatory items, including the Federal Reserve's Basel III re-proposal expected in early 2026, a proposed Long-Term Debt requirement, and a Category II classification that the Corporation discloses as subject to enhanced prudential standards. The Corporation also holds Visa Class B-2 shares with a carryover basis of zero, which it estimates at approximately $1.1 billion in value, though the filing notes this does not represent fair value.
Feb 24, 2026
2024
Northern Trust Annual Report, Year Ended Dec 31, 2024
Northern Trust Corporation reported net income of $2.03 billion for 2024, up from $1.11 billion in 2023, on total revenue of $8.29 billion, up from $6.77 billion. The increase was driven primarily by Other Operating Income of $1.16 billion, which included a $896.7 million gain tied to the Visa exchange offer and a $68.1 million gain on the sale of an equity investment. Trust, Investment and Other Servicing Fees rose to $4.73 billion, primarily due to favorable markets and net new business. Net interest income increased to $2.18 billion, and the net interest margin on an FTE basis rose to 1.64% from 1.56%. Noninterest expense increased to $5.63 billion, reflecting higher compensation, equipment and software, and outside services costs. Assets under custody/administration reached $16.79 trillion and assets under management reached $1.61 trillion at December 31, 2024, both up from the prior year, reflecting favorable markets and asset inflows. Total assets were $155.5 billion and stockholders' equity was $12.8 billion. The Corporation returned capital through common dividends of $608.4 million and share repurchases of $937.8 million in 2024. Its Common Equity Tier 1 capital ratio under the standardized approach was 12.4%, and the Corporation was classified as a Category II institution. The filing also notes ongoing regulatory uncertainty, including the proposed Basel III Endgame rule and a proposed long-term debt requirement, both of which are not yet finalized. Management identifies the company's reliance on fee-based business, interest rate sensitivity, and cybersecurity and operational risks as key risk areas.
Feb 24, 2025
2023
Northern Trust Annual Report, Year Ended Dec 31, 2023
Northern Trust Corporation reported 2023 net income of $1.11 billion, or $5.08 per diluted common share, down from $1.34 billion and $6.14 in 2022, as noninterest income fell and noninterest expense rose. Total revenue was essentially flat at $6.77 billion. Net interest income increased to $1.98 billion, supported by a net interest margin of 1.56% on an FTE basis (up from 1.39%), while Trust, Investment and Other Servicing Fees declined 2% to $4.36 billion on net asset outflows and unfavorable markets. Noninterest expense rose 6% to $5.28 billion, including an $84.6 million FDIC special assessment, and Investment Security Gains (Losses) included a $176.4 million loss from a fourth-quarter securities repositioning. Client assets grew sharply on favorable markets: Asset Servicing AUC/A reached $14.36 trillion and total AUC/A rose 13% to $15.40 trillion, while consolidated AUM increased 15% to $1.43 trillion. Total assets were $150.8 billion at year-end, down from $155.0 billion, and stockholders' equity rose to $11.9 billion. Capital ratios remained above well-capitalized levels, with a standardized Common Equity Tier 1 ratio of 11.4% at the Corporation, and the company disclosed that the proposed Basel III Endgame rule could raise expanded risk-weighted assets by an estimated 5% to 15%. The filing also highlights ongoing regulatory exposure, including proposed long-term debt and clean holding company requirements, and a $200.0 million pension contribution made in January 2024. Subsequent to year-end, the company sold $2.2 billion of available-for-sale securities, recognizing a $189.4 million loss in the first quarter of 2024.
Feb 27, 2024
2022
Northern Trust Annual Report, Year Ended Dec 31, 2022
Northern Trust Corporation reported 2022 net income of $1.34 billion, or $6.14 per diluted common share, down from $1.55 billion, or $7.14 per diluted share, in 2021. Return on average common equity fell to 12.7% from 13.9%. Total revenue rose to $6.76 billion from $6.46 billion, driven by Net Interest Income of $1.89 billion (up from $1.38 billion), while Noninterest Income declined to $4.87 billion from $5.08 billion. Management attributes the decline in fee income to market volatility and client outflows, and notes that Noninterest Expense rose 10% to $4.98 billion. The filing also discloses a $213.0 million pre-tax loss on available-for-sale debt securities that the company intended to sell; those securities were sold in January 2023. Assets under custody/administration fell 16% to $13.60 trillion at December 31, 2022, and assets under management decreased 22% to $1.25 trillion, reflecting net outflows, unfavorable markets and currency translation. Total assets were $155.0 billion, down from $183.9 billion, largely because client deposits and Federal Reserve deposits declined. The Bank's capital ratios, including a Common Equity Tier 1 ratio of 10.8% on a standardized basis for the Corporation, remained above well-capitalized thresholds. The company returned $648.4 million to common stockholders through dividends and repurchases in 2022, and raised its quarterly common dividend to $0.75 per share. Management highlights the financing of the balance sheet with $1.0 billion of 4.00% senior notes and $1.0 billion of 6.125% subordinated notes issued in 2022, and notes exposure to Russian-related restrictions on certain client cash held with subcustodians.
Feb 28, 2023
2021
Northern Trust Annual Report, Year Ended Dec 31, 2021
Northern Trust Corporation reported 2021 net income of $1.55 billion, or $7.14 per diluted common share, up from $1.21 billion and $5.46 in 2020. Net income increased $336.0 million, or 28%. Total revenue rose to $6.46 billion from $6.10 billion, driven by Trust, Investment and Other Servicing Fees of $4.36 billion (up 9%) and Other Operating Income of $243.9 million (up 26%), partially offset by Net Interest Income of $1.38 billion (down from $1.44 billion). Noninterest expense rose 4% to $4.54 billion, and the provision for credit losses was a release of $81.5 million versus a $125.0 million provision in 2020. Assets under custody/administration grew 12% to $16.25 trillion at December 31, 2021, and assets under management grew 14% to $1.61 trillion, reflecting favorable markets and net inflows. Total assets were $183.9 billion and stockholders' equity was $12.0 billion. The net interest margin on an FTE basis fell to 0.99% from 1.19%, primarily due to lower average interest rates. Money market mutual fund fee waivers totaled $287.8 million in 2021, versus $29.3 million in 2020. Capital remained strong, with the Corporation's Common Equity Tier 1 ratio at 11.9% (standardized) and 13.2% (advanced), and all capital ratios above well-capitalized thresholds. The Corporation returned $861.5 million to common stockholders through dividends and repurchases of 2,527,544 shares, and maintained its quarterly common dividend at $0.70 per share.
Feb 28, 2022
2020
Northern Trust Annual Report, Year Ended Dec 31, 2020
Northern Trust Corporation reported 2020 net income of $1.21 billion, or $5.46 per diluted common share, down from $1.49 billion ($6.63 per diluted share) in 2019. Return on average common equity fell to 11.2% from 14.9%. The decline was driven mainly by a 14% drop in net interest income to $1.44 billion, as the net interest margin fell to 1.19% (FTE basis) from 1.60%, and by a higher provision for credit losses of $125.0 million versus a credit provision of $14.5 million in 2019. Noninterest expense rose 5% to $4.35 billion, including $55.0 million of severance charges and a $43.4 million charge tied to a corporate action processing error. Total revenue was roughly flat at $6.10 billion, with noninterest income up 6% to $4.66 billion, led by Trust, Investment and Other Servicing Fees of $4.00 billion (up 4%). Assets under custody/administration rose 21% to $14.53 trillion and assets under management rose 14% to $1.41 trillion, reflecting net inflows and favorable markets. Total assets grew to $170.0 billion from $136.8 billion, largely from higher deposits, which rose to $143.9 billion, and from higher Federal Reserve and central bank deposits. Loans and leases grew to $33.8 billion, and nonaccrual assets increased to $132.4 million from $86.8 million. The company stated that all capital ratios exceeded well-capitalized levels, with a common equity tier 1 ratio of 12.8% (standardized approach). Share repurchases were suspended on March 16, 2020 under Federal Reserve capital distribution limits, and the company said it restarted repurchases in the first quarter of 2021 within those limits. The filing also describes a regulatory backdrop shaped by COVID-19. The Federal Reserve restricted dividends and share repurchases based on recent income for the first quarter of 2021, and the Corporation's stress capital buffer for the 2020 cycle was set at 2.5%. The company also reported exposure to LIBOR transition, Brexit effects, and an ongoing French legal matter involving its Guernsey trust subsidiary, where a re-trial was ordered in January 2021.
Feb 23, 2021
2019
Northern Trust Annual Report, Year Ended Dec 31, 2019
Northern Trust Corporation reported net income of $1.49 billion for 2019, down $64.2 million, or 4%, from $1.56 billion in 2018, with diluted earnings per share of $6.63 versus $6.64 a year earlier. Return on average common equity fell to 14.9% from 16.2%. Revenue rose 2% to $6.07 billion, led by trust, investment and other servicing fees of $3.85 billion (up 3%), while net interest income increased 3% and foreign exchange trading income fell 18% to $250.9 million. Noninterest expense rose 3% to $4.14 billion, mainly on higher compensation, outside services, and equipment and software costs. Client assets grew strongly during the year. Assets under custody/administration increased 19% to $12.05 trillion and assets under custody rose 22% to $9.23 trillion, both reflecting favorable markets and net client inflows. Assets under management reached $1.23 trillion, up 15%. The company repurchased 11.8 million common shares for $1.1 billion and, together with dividends, returned $1.7 billion to common stockholders. The quarterly common dividend was raised to $0.70 per share. Capital remained strong, with the standardized common equity Tier 1 ratio at 12.7% and all capital ratios above the well-capitalized thresholds. Nonperforming assets declined 26% to $86.8 million, and the company issued $391.4 million of Series E preferred stock, the proceeds of which were used to redeem the Series C preferred stock on January 2, 2020. The filing also flags ongoing risks from Brexit, LIBOR transition, cybersecurity, and regulatory change.
Feb 25, 2020
2018
Northern Trust Annual Report, Year Ended Dec 31, 2018
Northern Trust Corporation is a financial holding company providing wealth management, asset servicing, asset management and banking solutions. At December 31, 2018, it reported consolidated total assets of $132.2 billion and stockholders' equity of $10.5 billion. Net income for 2018 totaled $1.56 billion, up from $1.20 billion in 2017, and diluted earnings per common share were $6.64 versus $4.92. Return on average common equity improved to 16.2% from 12.6%. Total revenue rose 11% to $5.96 billion, driven by a 9% increase in trust, investment and other servicing fees, a 14% increase in net interest income and a 46% increase in foreign exchange trading income. Client asset levels declined during 2018. Assets under custody/administration fell 6% to $10.13 trillion and assets under management fell 8% to $1.07 trillion, which the company attributed to unfavorable markets and net outflows. Noninterest expense rose 7% to $4.02 billion, reflecting higher compensation, outside services, equipment and software costs, and expenses tied to the UBS fund administration acquisition. The provision for credit losses was a credit of $14.5 million, and nonperforming assets declined 24% to $117.7 million. Capital returns increased. The quarterly common dividend was raised to $0.55 per share, and the company repurchased 9.0 million shares, returning $1.36 billion to common stockholders compared with $895.6 million in 2017. All capital ratios exceeded the requirements for well-capitalized status. The filing also flags ongoing regulatory items, including resolution plan shortcomings identified in 2017, the pending outcome of the Federal Reserve's capital and stress test proposals, Brexit uncertainty and the Visa Class B share litigation.
Feb 26, 2019
2017
Northern Trust Annual Report, Year Ended Dec 31, 2017
Northern Trust Corporation reported net income of $1.20 billion for 2017, up $166.5 million or 16% from $1.03 billion in 2016, with diluted earnings per common share of $4.92 compared with $4.32 in 2016. Return on average common equity improved to 12.6% from 11.9%. Revenue rose 8% to $5.38 billion, driven by a 10% increase in trust, investment and other servicing fees to $3.43 billion and a 16% increase in net interest income, partially offset by a 35% decline in other operating income, which reflected a prior-year gain on the sale of Visa Class B shares. Client assets grew strongly. Assets under custody/administration reached $10.72 trillion, up 26%, including $568.1 billion tied to the acquisition of UBS Asset Management's fund administration units in Luxembourg and Switzerland. Assets under management rose 23% to $1.16 trillion. Noninterest expense increased 9% to $3.77 billion, including severance charges and UBS acquisition costs. The effective tax rate fell to 26.6% from 31.9%, helped by a $53.1 million net benefit from the Tax Cuts and Jobs Act, which also created a $150.0 million repatriation tax payable over eight years. Capital returns and regulatory standing were key themes. Common stock repurchases totaled $523.1 million, and total common dividends were $372.5 million, with the quarterly dividend raised 11% to $0.42 per share. Stockholders' equity was $10.2 billion. All capital ratios exceeded the well-capitalized thresholds. The filing also notes that the Federal Reserve and FDIC identified "shortcomings" in the Corporation's 2015 resolution plan, which the Corporation resubmitted in December 2017.
Feb 27, 2018
2016
Northern Trust Annual Report, Year Ended Dec 31, 2016
Northern Trust Corporation is a financial holding company and a leading provider of asset servicing, fund administration, asset management, fiduciary and banking solutions. At December 31, 2016, it reported consolidated total assets of $123.9 billion and stockholders' equity of $9.8 billion, with assets under custody/administration of $8.54 trillion and assets under management of $942.4 billion. Its two client-focused segments are Corporate & Institutional Services (C&IS) and Wealth Management. Net income for 2016 was $1.03 billion, up 6% from $973.8 million in 2015, and diluted EPS was $4.32 versus $3.99. Results included a $118.2 million gain on the sale of Visa Class B shares (net of swap valuation adjustment) and several charges, including $46.5 million for securities lending litigation settlement and $18.6 million for contractual modifications with asset servicing clients. Total revenue rose 6% to $4.96 billion, driven by a 15% increase in net interest income, while trust, investment and other servicing fees grew 4% to $3.11 billion. Noninterest expense rose 6% to $3.47 billion. Capital and credit metrics were stable. The Corporation's Common Equity Tier 1 ratio under the advanced approach was 12.4%, and all capital ratios exceeded well-capitalized thresholds. Nonperforming assets fell 12% to $165.4 million, and the provision for credit losses was a $26.0 million credit. The company repurchased 6.1 million shares and returned $754.7 million to common stockholders, and it issued $493.5 million of Series D preferred stock in August 2016.
Feb 28, 2017
2015
Northern Trust Annual Report, Year Ended Dec 31, 2015
Northern Trust Corporation reported 2015 net income of $973.8 million, up 20% from $811.8 million in 2014, with diluted earnings per share of $3.99 compared with $3.32 in 2014. Return on average common equity improved to 11.5% from 10.0%. The filing states that 2015 results include a pre-tax gain of $99.9 million on the sale of 1.0 million Visa Class B common shares, voluntary cash contributions of $45.8 million to certain constant dollar NAV funds, and a $17.8 million impairment of aircraft residual values under leveraged leases. Excluding these items, net income was $951.4 million and diluted EPS was $3.90. Total revenue rose 9% to $4.70 billion, driven by a 5% increase in trust, investment and other servicing fees to $2.98 billion and a 6% increase in net interest income. Client assets remained the core driver of the business. Assets under custody were $6.07 trillion, up 2%, and assets under management were $875.3 billion, down 6% from $934.1 billion, reflecting net outflows including equity outflows from certain sovereign wealth fund clients. Noninterest expense rose 5% to $3.28 billion. Total assets were $116.7 billion and stockholders' equity was $8.7 billion at year-end. The Common Equity Tier 1 ratio under the advanced approach was 11.9%, and the Corporation stated that all its capital ratios exceeded the well-capitalized thresholds. The filing also highlights regulatory matters that investors should weigh. The Corporation and the Bank submitted resolution plans in December 2015, and the filing warns that a deficiency finding could lead to stricter capital, liquidity or growth restrictions. The 2016 capital plan is due to the Federal Reserve by April 5, 2016, and the company's dividend payout ratio was 35.3% in 2015. The provision for credit losses was a credit of $43.0 million, and nonperforming assets fell 19% to $188.3 million. The filing also discloses an SEC investigation related to securities lending activities and a French criminal charge against a subsidiary, NTFS, in connection with estate tax fraud.
Feb 29, 2016
2014
Northern Trust Annual Report, Year Ended Dec 31, 2014
Northern Trust Corporation, a financial holding company, reports that 2014 net income rose to $811.8 million, up 11% from $731.3 million in 2013, with diluted earnings per share of $3.32 versus $2.99. Revenue increased 6% to $4.33 billion, driven by a 9% increase in trust, investment and other servicing fees to $2.83 billion and an 8% rise in net interest income, partly offset by a 14% decline in foreign exchange trading income to $210.1 million. Noninterest expense rose 5% to $3.14 billion, reflecting business growth, technology investment and organizational realignment costs. Client assets grew, with assets under custody at $5.97 trillion (up from $5.58 trillion) and assets under management at $934.1 billion (up from $884.5 billion). Total assets reached $109.9 billion and stockholders' equity was $8.4 billion at year-end. The company issued $388.5 million of Series C preferred stock in August 2014, repurchased 7.5 million common shares for $480.7 million, and raised the quarterly common dividend to $0.33. Net interest margin declined to 1.08% from 1.13%, reflecting persistently low interest rates, and money market fund fee waivers rose to $129.8 million. The filing also details an extensive regulatory framework under Dodd-Frank and Basel III. Capital ratios exceeded well-capitalized thresholds, with the Corporation's advanced-approach common equity Tier 1 ratio at 12.4%. The company disclosed pending securities lending litigation, an SEC subpoena regarding securities lending, and a French prosecutor's recommendation to charge a subsidiary related to trust administration, with reasonably possible losses estimated at up to approximately $130 million in aggregate.
Feb 26, 2015
2013
Northern Trust Annual Report, Year Ended Dec 31, 2013
Northern Trust Corporation, a financial holding company providing asset servicing, fund administration, asset management, fiduciary and banking solutions, reported consolidated total assets of $102.9 billion and stockholders' equity of $7.9 billion at December 31, 2013. Net income for 2013 was $731.3 million, or $2.99 per diluted share, compared with $687.3 million, or $2.81 per diluted share, in 2012. Revenue rose 5% to $4.09 billion, driven by an 8% increase in trust, investment and other servicing fees to $2.61 billion, while net interest income fell 6% to $933.1 million as the net interest margin declined to 1.13% from 1.22%. Noninterest expense increased 4% to $2.99 billion, including a $19.2 million pre-tax legal settlement charge tied to securities lending litigation, and the company recorded a $32.6 million pre-tax gain on the sale of an office building. Assets under custody reached $5.6 trillion and assets under management reached $884.5 billion at year-end, up 16% and 17% respectively. Credit quality improved, with the provision for credit losses falling to $20.0 million from $25.0 million, though net charge-offs rose to $39.7 million and nonperforming assets were essentially flat at $274.7 million. Capital remained strong, with a Tier 1 capital ratio of 13.4% and total capital ratio of 15.8%, and the Corporation returned $609.2 million to shareholders through dividends and buybacks. The Federal Reserve notified the company on February 21, 2014 that it could exit parallel run under Basel III advanced approaches, and the filing reports a common equity tier 1 ratio of 11.6% on that basis. The filing also highlights regulatory headwinds, including Dodd-Frank heightened prudential standards, the Volcker Rule, and Basel III implementation, along with Moody's downgrade of the Corporation's long-term rating from A1 to A2 in November 2013. Management states that it cannot yet determine the full impact of several pending rules on earnings or financial position.
Feb 26, 2014
2012
Northern Trust Annual Report, Year Ended Dec 31, 2012
Northern Trust Corporation reported net income of $687.3 million, or $2.81 per diluted common share, for 2012, compared with $603.6 million, or $2.47 per share, in 2011. Revenue reached $3.90 billion, up 3% from 2011, driven mainly by trust, investment and other servicing fees of $2.41 billion, which rose 11% on new business, revised fee structures and the full-year effect of 2011 acquisitions. Foreign exchange trading income fell 36% to $206.1 million on lower currency volatility and client volumes, and net interest income declined 2% to $990.3 million as the net interest margin fell to 1.22% from 1.27%. Assets under custody reached $4.8 trillion and assets under management reached $758.9 billion at year-end 2012. Noninterest expense rose 2% to $2.88 billion, and the provision for credit losses fell to $25.0 million from $55.0 million as credit quality improved in commercial and institutional loans, though residential and commercial real estate weakness persisted. The company reported total assets of $97.5 billion and stockholders' equity of $7.5 billion, with a Tier 1 capital ratio of 12.8% and a Tier 1 leverage ratio of 8.2%, both above the well-capitalized thresholds. Dividends declared totaled $286.9 million, and share repurchases were $162.9 million. The filing also details the regulatory environment under the Dodd-Frank Act, including SIFI heightened prudential standards, resolution planning, and the Volcker Rule, along with Basel III phase-in changes; U.S. regulators delayed initial Basel III requirements on November 9, 2012. The Corporation is not designated a global systemically important bank.
Feb 26, 2013
2011
Northern Trust Annual Report, Year Ended Dec 31, 2011
Northern Trust Corporation is a financial holding company and a leading provider of asset servicing, fund administration, asset management, fiduciary and banking solutions. At December 31, 2011, the Corporation had consolidated total assets of $100.2 billion and stockholders' equity of $7.1 billion. Its two principal business units are Corporate and Institutional Services (C&IS) and Personal Financial Services (PFS). During 2011 the company completed two acquisitions: the fund administration and custody business of the Bank of Ireland Securities Services (now Northern Trust Securities Services (Ireland) Limited) and Omnium LLC (now Northern Trust Hedge Fund Services LLC), together with a merger of its bank subsidiaries on October 1, 2011. For 2011, net income was $603.6 million, or $2.47 per diluted share, compared with $669.5 million, or $2.74, in 2010. Results include $91.6 million of restructuring, acquisition and integration charges ($59.8 million after tax, or $.25 per common share). Revenue was $3.77 billion, and total noninterest income was $2.76 billion. Trust, investment and other servicing fees rose to $2.17 billion from $2.08 billion, while foreign exchange trading income fell 15% to $324.5 million. Net interest margin declined to 1.27% from 1.41%. Noninterest expense rose 13% to $2.83 billion. The provision for credit losses fell to $55.0 million from $160.0 million, and nonperforming assets decreased $63.6 million. Assets under custody reached $4.3 trillion and assets under management reached $662.9 billion at year-end. The Corporation reported a tier 1 capital ratio of 12.5% and a total capital ratio of 14.2%, both above the well-capitalized minimums, and declared common dividends of $273.4 million in 2011. The filing also discusses Dodd-Frank Act and Basel III implications, which the company says it believes leave it well positioned.
Feb 24, 2012
2010
Northern Trust Annual Report, Year Ended Dec 31, 2010
Northern Trust Corporation, a financial holding company, reported net income of $669.5 million and earnings per common share of $2.74 for 2010, down from $864.2 million and $3.16 per diluted share in 2009. The company describes itself as a leading provider of asset servicing, fund administration, asset management, fiduciary and banking solutions, with total consolidated assets of $83.8 billion and stockholders' equity of $6.8 billion at December 31, 2010. Client assets under custody rose 12% to $4.1 trillion and assets under management rose 3% to $643.6 billion, while the net interest margin declined to 1.41% from 1.56% amid the persistently low interest rate environment. The filing states that revenue on a fully taxable equivalent basis was $3.69 billion, a 4% decline from 2009, with net interest income down 8% and foreign exchange trading income down 14% to $382.2 million on reduced currency volatility. Trust, investment and other servicing fees, the largest revenue component, held steady at $2.08 billion, as higher market valuations and new business offset lower securities lending revenue. Provisions for credit losses fell to $160.0 million from $215.0 million, though nonperforming loans rose to $333.0 million, or 1.18% of total loans. The company stated it did not achieve its four long-term strategic financial targets in 2010. The filing also discusses regulatory developments under the Dodd-Frank Act and Basel III, which the company says could lead to significantly higher capital requirements, though it believes it is well positioned. Tier 1 capital ratio stood at 13.6% and total capital ratio at 15.6% at year end, both above well-capitalized levels. Pending litigation includes a securities class action, an ERISA class action, a shareholder derivative suit, and lawsuits related to the securities lending program, which the company says it operated prudently.
Feb 25, 2011
2009
Northern Trust Annual Report, Year Ended Dec 31, 2009
Northern Trust Corporation reported record 2009 net income of $864.2 million, or $3.16 per diluted common share, compared with $794.8 million and $3.47 per share in 2008. The filing states that results were affected by Visa-related adjustments and by $111.1 million (or $.47 per share) of preferred stock dividends and discount accretion tied to the U.S. Treasury Capital Purchase Program, which the company fully repaid in June 2009. Excluding Visa items, operating earnings were $853.0 million, or $3.11 per diluted share. Total revenue on a fully taxable equivalent basis was $3.83 billion, down 12% from $4.33 billion in 2008, driven mainly by a 28% decline in foreign exchange trading income and an 8% decline in net interest income as the net interest margin fell to 1.56% from 1.76%. Credit costs rose sharply. The provision for credit losses was $215.0 million, up from $115.0 million, and nonaccrual loans increased to $278.5 million from $96.7 million. Net charge-offs totaled $125.8 million. Noninterest expenses fell to $2.32 billion from $2.89 billion, largely because 2008 included $536.3 million of client support charges, including $314.1 million for capital support agreements that expired in 2009. The balance sheet remained large and liquid at $82.1 billion in total assets, with client assets under custody of $3.66 trillion and assets under management of $627.2 billion, both up year over year. Tier 1 capital ratio was 13.4% and total capital ratio was 15.8%, both above well-capitalized minimums. The company raised $834.1 million of common equity in May 2009 and repurchased its TARP preferred stock and warrant.
Feb 26, 2010
2008
Northern Trust Annual Report, Year Ended Dec 31, 2008
Northern Trust Corporation's 10-K for fiscal 2008 describes it as a financial holding company providing investment management, asset and fund administration, fiduciary, and banking solutions, with 85 offices in 18 U.S. states and 15 international locations. At December 31, 2008, consolidated total assets were $82.1 billion and stockholders' equity was $6.4 billion. Reported net income was $794.8 million in 2008, versus $726.9 million in 2007, but operating earnings excluding Visa-related items fell to $641.3 million from $821.1 million, and operating diluted EPS declined to $2.79 from $3.66. The 2008 results absorbed significant client support charges: $314.1 million under capital support agreements with cash investment funds, $167.6 million for securities lending clients, and a $54.6 million auction rate securities program charge. Total revenue on an FTE basis was $4.33 billion, up 21%, led by record foreign exchange trading income of $616.2 million and net interest income that rose to $1.08 billion. Client assets under custody fell 27% to $3.01 trillion and assets under management fell 26% to $558.8 billion, reflecting market declines of roughly 38% in the S&P 500 during 2008. Credit quality metrics rose, with the provision for credit losses at $115.0 million versus $18.0 million, and nonperforming assets at $100.2 million. The company received $1.576 billion from the U.S. Treasury's Capital Purchase Program in November 2008 through Series B preferred stock and a warrant, which shapes future dividend and buyback constraints, including Treasury approval for common dividends above $0.28 per quarter. The filing also discloses an ongoing IRS challenge to structured leasing transactions, which led to a $61.3 million tax provision increase in 2008, and an ERISA class action filed in January 2009.
Feb 27, 2009
2007
Northern Trust Annual Report, Year Ended Dec 31, 2007
Northern Trust Corporation reported record 2007 results, with net income of $726.9 million and diluted earnings per share of $3.24, up 9% and 8% from 2006. Results were reduced by $150 million of pre-tax Visa indemnification charges, which reduced net income by $94.2 million, or $.42 per diluted share. Excluding those charges, operating earnings were $821.1 million, or $3.66 per diluted share. Revenue (FTE) rose to $3.57 billion, up 17% from $3.06 billion, driven by trust, investment and other servicing fees of $2.08 billion, up 16%, and record foreign exchange trading income of $351.3 million. Total assets were $67.6 billion and stockholders' equity was $4.5 billion at December 31, 2007. Assets under custody reached a record $4.14 trillion, up 17%, and assets under management reached $757.2 billion, up 9%. The net interest margin declined to 1.67% from 1.73%, reflecting the narrowing interest rate spread and growth in lower-yielding money market assets. Credit quality remained strong, with nonperforming assets of $29.3 million, or .12% of total loans and other real estate owned, down 21% from the prior year. Tier 1 capital was 9.7% of risk-weighted assets and total capital was 11.9%, both well above the well-capitalized minimums. The filing also discloses an ongoing IRS challenge to structured leasing transactions and a federal criminal investigation, which the company says it is cooperating with and is not a target of. Management believes Northern Trust's proportionate share of Visa's planned initial public offering will more than offset its Visa indemnification liabilities. Frederick H. Waddell became Chief Executive Officer effective January 1, 2008, succeeding William A. Osborn, who remains Chairman.
Feb 28, 2008
2006
Northern Trust Annual Report, Year Ended Dec 31, 2006
Northern Trust Corporation's 2006 annual report, filed February 28, 2007, describes a financial holding company that is a leading provider of investment management, asset and fund administration, fiduciary, and banking solutions to corporations, institutions, and affluent individuals. At December 31, 2006, the Corporation had consolidated total assets of $60.7 billion and stockholders' equity of $3.9 billion. Its two principal business units are Corporate and Institutional Services (C&IS), with $3.26 trillion in assets under custody and $562.5 billion under management, and Personal Financial Services (PFS), with $281.9 billion under custody and $134.7 billion under management. The Financial Annual Report reports record 2006 net income of $665.4 million and diluted earnings per share of $3.00, each up 14% from 2005. Revenues on a fully taxable equivalent basis reached $3.06 billion, up 14%, with trust, investment and other servicing fees of $1.79 billion, up 15%, as the largest contributor. Net interest margin declined to 1.73% from 1.79% as global custody deposits were invested in short-term money market assets and agency securities. Nonperforming loans were $35.7 million, or 0.16% of total loans. The filing also flags material risk items. The IRS has challenged the Corporation's structured leasing tax positions, and in February 2007 the Corporation was informed that the matter was referred to the U.S. Attorney's Office for the Northern District of Illinois for further investigation through the grand jury process; the Corporation says it is not a target. Adoption of FSP 13-2 on January 1, 2007 is expected to reduce stockholders' equity by approximately $75 million. Management stated that pending legal matters would not be expected to have a material adverse effect on consolidated financial position, although they could affect operating results in a given period.
Feb 28, 2007
2005
Northern Trust Annual Report, Year Ended Dec 31, 2005
Northern Trust Corporation reported record 2005 net income of $584.4 million, or $2.64 diluted earnings per share, up 16% from the prior year, with the company stating that its earnings growth exceeded its long-term EPS growth goal of 10% or greater. Total revenue reached record levels, increasing 15% to $2.69 billion on a fully taxable equivalent basis, driven by trust, investment and other servicing fees of $1.56 billion, up 17%. The March 2005 acquisition of Baring Asset Management's Financial Services Group (FSG), for a final adjusted purchase price of 261.5 million British pounds Sterling, contributed $130.8 million in 2005 revenues and was described as neutral to full-year earnings. Assets under custody rose 15% to $2.93 trillion and assets under management rose 8% to $617.9 billion, while total assets reached $53.4 billion at December 31, 2005. Credit quality and capital remained strong. Nonperforming loans totaled $31 million, or 0.15% of the $20.0 billion loan portfolio, and the provision for credit losses was $2.5 million. Stockholders' equity grew to $3.60 billion, and the Corporation's tier 1 capital ratio was 9.7% against a 6.0% well-capitalized minimum, with a total capital ratio of 12.3%. The company repurchased 3,534,859 shares for $169.8 million and raised its quarterly dividend 10% to $.23 per share in November 2005. The filing also notes that the return on average common equity of 17.01% fell short of the company's 18%-20% long-term goal, and that the productivity ratio of 155% remained below its 160% goal. The filing discloses several risks. The company is subject to an ongoing Enron-related ERISA class action in which trial is scheduled for fall 2006, and the IRS has challenged the tax treatment of thirteen structured leasing investments; the IRS Criminal Investigation Division has also opened an investigation into those transactions, which the company is cooperating with fully. Management believes these matters would not have a material adverse effect on consolidated financial position or liquidity, though they could affect operating results in a given period.
Mar 13, 2006
2004
Northern Trust Annual Report, Year Ended Dec 31, 2004
Northern Trust Corporation's 10-K for fiscal 2004, filed March 14, 2005, reports record net income of $505.6 million, up 25% from $404.8 million in 2003, with diluted earnings per share of $2.27 versus $1.80. Total assets were $45.28 billion at December 31, 2004 and stockholders' equity was $3.30 billion. Trust fees rose 12% to $1.33 billion, and total assets under administration reached a record $2.6 trillion, up 23%. Net interest income was $561.1 million, and the net interest margin declined to 1.66% from 1.73% as growth concentrated in lower-margin short-term money market assets. Noninterest expenses rose 5% to $1.53 billion, and the provision for credit losses was a negative $15.0 million, reflecting continued credit quality improvement and a 50%-plus reduction in nonperforming assets. The company agreed on November 22, 2004 to acquire the Financial Services Group from Baring Asset Management Holdings Limited and ING Bank NV for about 260 million British pounds (approximately $500 million), with closing expected around March 31, 2005. Management estimated the deal would be modestly dilutive to 2005 earnings and modestly accretive in 2006. Return on average common equity was 16.07%, below the company's stated 18%-20% long-term goal. The quarterly dividend was raised 11% to $.21 in November 2004. All of the company's capital ratios exceeded the levels required to be classified as well capitalized, with a tier 1 risk-based ratio of 11.0% and a total risk-based ratio of 13.3% at year-end. Much of the financial detail in this filing is incorporated by reference from the 2004 Annual Report to Shareholders (Exhibit 13).
Mar 14, 2005
2003
Northern Trust Annual Report, Year Ended Dec 31, 2003
Northern Trust Corporation's 2003 Form 10-K, filed March 12, 2004, reports a year of lower earnings driven by a low-rate environment and strategic restructuring. Net income for 2003 was $404.8 million, down 9% from $447.1 million in 2002, and diluted EPS was $1.80 versus $1.97. Net interest income fell 9% to $548.2 million as mortgage refinancing compressed yields, and the net interest margin declined to 1.73% from 1.93%. Trust fees rose 2% to $1.19 billion, and noninterest income represented 72% of total taxable equivalent revenue. Total assets were $41.5 billion and stockholders' equity was $3.06 billion at December 31, 2003. Management took strategic actions in 2003, including a restructuring with pre-tax charges of $56.3 million, a targeted reduction of $75 million in annualized operating costs by June 2004, and the sale of its retirement consulting and recordkeeping business (NTRC) to Hewitt Associates, which produced a $20.2 million pre-tax loss on sale and an $18.5 million net loss from discontinued operations. Growth came from acquisitions, including Deutsche Bank AG's passive equity and fixed income management businesses, which added approximately $75 billion in assets under management, and Legacy South in Atlanta. Trust assets under administration reached a record $2.2 trillion, up 43%, and managed trust assets were $478.6 billion, up 58%. Credit quality improved, with the provision for credit losses falling to $2.5 million from $37.5 million, and net charge-offs of $13.8 million. Nonaccrual loans were $80.0 million, or .45% of the loan portfolio. The company reported a Tier 1 capital ratio of 11.1% and a total capital ratio of 14.0%, both well above the well-capitalized thresholds. Common dividends were increased 12% to $.19 per quarter in November 2003, and the company redeemed all $120 million of its preferred stock during 2003.
Mar 12, 2004
2002
Northern Trust Annual Report, Year Ended Dec 31, 2002
Northern Trust Corporation's Form 10-K for fiscal year 2002, filed March 10, 2003, reports consolidated total assets of approximately $39.5 billion and stockholders' equity of approximately $3.0 billion at December 31, 2002. The company is a bank holding company whose principal subsidiary is The Northern Trust Company, and it operates through two principal business units: Corporate and Institutional Services (C&IS) and Personal Financial Services (PFS), with investment management provided by Northern Trust Global Investments (NTGI). Total trust assets under administration were $1.50 trillion at year-end, down 10% from the prior year, and net income for 2002 was $447.1 million, down 8% from $487.5 million in 2001. Diluted earnings per share were $1.97 versus $2.11 in 2001. The decline in profitability was attributed to weak equity markets, which fell for a third consecutive year, and lower securities lending fees and foreign exchange trading profits. Net interest income reached a record $601.8 million, and treasury management fees rose to $96.3 million. Provision for credit losses fell to $37.5 million from $66.5 million, and nonaccrual loans declined to $93.4 million. Capital ratios remained well above the well-capitalized thresholds, with Tier 1 capital at 11.1% and total capital at 14.1% of risk-weighted assets. During and after 2002 the company made several moves: it closed the acquisition of Deutsche Bank AG's global passive equity, enhanced equity and passive fixed income investment management businesses on January 31, 2003 for approximately $100 million, with assets under management of $44.1 billion, and it signed a definitive agreement to acquire Legacy South, an Atlanta-based private wealth firm with about $300 million in assets under management, expected to close in the first quarter of 2003. The quarterly dividend was maintained at $.17 per share.
Mar 10, 2003
2001
Northern Trust Annual Report, Year Ended Dec 31, 2001
Northern Trust Corporation (NTRS) reported a record 2001 net income of $487.5 million, up slightly from $485.1 million in 2000, with diluted earnings per share of $2.11 versus $2.08. Trust fees rose to $1.23 billion from $1.20 billion, net interest income reached a record $595.3 million, and noninterest income totaled $1.58 billion. Results were held back by a $66.5 million provision for credit losses, compared with $24.0 million in 2000, with $45.0 million of that provision recognized in the fourth quarter, largely tied to the Enron Corp. bankruptcy filing. Return on average common equity fell to 19.34% from 22.09%. At December 31, 2001, consolidated total assets were approximately $39.7 billion and stockholders' equity was approximately $2.8 billion. Trust assets under administration were $1.68 trillion, unchanged from the prior year, and managed trust assets declined 2% to $330.1 billion as equity markets weakened. The Board raised the quarterly dividend 9.7% to $.17 per share in November 2001, the fifteenth consecutive annual increase, and the Corporation repurchased 2,547,235 of its own shares during the year. The Corporation reported that its banking subsidiaries met or exceeded the ratios required to be considered well capitalized. Its Tangible Tier 1 Leverage Ratio was 7.9%, and Tier 1 and total risk-based capital ratios were 10.9% and 14.3%. The filing states that the Corporation has not used unconsolidated special purpose entities for financing, liquidity, asset transfers or credit risk management. Much of the financial detail is incorporated by reference from the 2001 Annual Report to Shareholders, which is included as Exhibit 13.
Mar 12, 2002
2000
Northern Trust Annual Report, Year Ended Dec 31, 2000
Northern Trust Corporation, a Delaware bank holding company headquartered in Chicago, reported record 2000 results in this 10-K. At December 31, 2000, consolidated total assets were approximately $36.0 billion and stockholders' equity was approximately $2.5 billion. Net income for 2000 was a record $485.1 million, compared with $405.0 million in 1999 and $353.9 million in 1998, and diluted net income per common share rose to $2.08 from $1.74. Trust fees reached $1,201.2 million, and trust assets under administration totaled $1.68 trillion at year-end. The filing states that 2000 marked the thirteenth consecutive year of record earnings. The Corporation's business is organized around Corporate and Institutional Services (C&IS), Personal Financial Services (PFS), Northern Trust Global Investments (NTGI) and Worldwide Operations and Technology (WWOT). Net income was $249.4 million for C&IS and $268.4 million for PFS in 2000. Net interest income rose to $568.6 million, while noninterest expenses increased to $1,351.5 million, and the productivity ratio reached 160%, an all-time high stated in the filing. Net interest margin declined to 2.02% from 2.05%, which the filing attributes primarily to growth in low-spread federal agency securities. Credit quality and capital remained strong by the filing's measures. Nonaccrual loans were $76.3 million, or .42% of the $18.1 billion loan portfolio, and the reserve for credit losses was $162.9 million, or .90% of year-end loans. Tier 1 capital was 9.8% and total capital was 12.9% of risk-weighted assets, both well above regulatory minimums. The Board increased the quarterly dividend 14.8% to $.155 per share in November 2000. The filing also notes that the Corporation completed the adoption of SFAS No. 133 on January 1, 2001, with an immaterial effect on earnings.
Mar 16, 2001
1999
Northern Trust Annual Report, Year Ended Dec 31, 1999
Northern Trust Corporation (Delaware; Chicago, Illinois) reported record 1999 net income of $405.0 million, up 14.4% from $353.9 million in 1998, with diluted earnings per share of $1.74 (split-adjusted) versus $1.52 in 1998. Noninterest income rose to $1,235.2 million from $1,071.6 million, led by trust fees of $974.2 million, which increased 19% from $816.3 million. Total trust assets under administration reached $1.54 trillion at December 31, 1999, up from $1.26 trillion, and the company describes 1999 as the twelfth consecutive year of record earnings. At year-end the company had consolidated total assets of $28,708.2 million and total stockholders' equity of $2,174.7 million. Net interest income reached a record $518.8 million, up 9% from $477.2 million, although the net interest margin on a fully taxable equivalent basis declined to 2.05% from 2.08%. Noninterest expenses rose 13% to $1,125.0 million, and the productivity ratio was 159%. Credit quality remained sound: the provision for credit losses was $12.5 million, net charge-offs were $8.4 million, and nonaccrual loans were $59.3 million, or 0.39% of total loans, up from $30.5 million a year earlier. The Tier 1 risk-based capital ratio was 9.9% and the leverage ratio was 7.1%, both well above regulatory minimums. The filing also flags a forward-looking item: management expects that the SFAS No. 133 derivatives standard, effective January 1, 2001, could reduce net interest income by up to $1.0 million annualized if swap usage is reduced. The company's financial statements and MD&A are incorporated by reference from its 1999 Annual Report to Stockholders (Exhibit 13), which is included with this filing.
Mar 14, 2000
1998
Northern Trust Annual Report, Year Ended Dec 31, 1998
Northern Trust Corporation, a Chicago-based bank holding company, reported record 1998 net income of $353.9 million, up 14.4% from $309.4 million in 1997, with a return on average common stockholders' equity of 20.5% compared with 20.2% in 1997. Consolidated total assets were approximately $27.9 billion at December 31, 1998, and stockholders' equity was $1.94 billion. Management described 1998 as the eleventh consecutive year of record earnings. Trust fees rose 18% to $816.3 million, and trust assets under administration reached $1.26 trillion. Net interest income was a record $477.2 million, up 9%, although the net interest margin declined to 2.08% from 2.18%. The company's profile is driven by fee income: noninterest income was $1.1 billion in 1998 and represented 68% of total taxable equivalent revenue. Corporate and Institutional Services (C&IS) produced net income of $162.1 million, and Personal Financial Services (PFS) produced $191.8 million. Noninterest expenses rose 12% to $997.1 million, and the productivity ratio reached a record 159%. Credit quality remained strong, with nonperforming assets of $35.2 million and net charge-offs of $10.0 million against a provision of $9.0 million. The Tangible Tier 1 Leverage Ratio was 6.9%, and the Board increased the quarterly common dividend 14.3% to $.24 per share. The filing also addresses Year 2000 remediation, with an estimated total project cost of $35 million, of which $21.6 million had been incurred by year-end 1998. The company expected foreign exchange profits to fall by approximately 10% as a result of the euro conversion. Under the Interest Rate Risk simulation, a 100 basis point rise in rates would reduce 1999 pre-tax income by $9.0 million, while a 100 basis point decline would increase it by $6.9 million.
Mar 16, 1999
1997-A2
Northern Trust Annual Report (Amendment), Year Ended Dec 31, 1997
Northern Trust Corporation's Form 10-K/A (Amendment No. 2) for fiscal 1997 was filed to expand the discussion of its Reserve for Credit Losses methodology and how the reserve was determined in the periods reported. The filing describes Northern Trust as a bank holding company headquartered in Chicago, with consolidated total assets of approximately $25.3 billion and stockholders' equity of approximately $1.7 billion at December 31, 1997. Its principal subsidiary, The Northern Trust Company, had consolidated assets of approximately $21.2 billion, and the company emphasizes fee-based revenue, with total assets under administration of $974.1 billion in Corporate and Institutional Services at year-end 1997. Credit quality data in the filing show the reserve for credit losses at $147.6 million at year-end 1997 versus $148.3 million in 1996, with net charge-offs of $9.7 million in 1997 and $11.8 million in 1996. The reserve fell to 1.17% of year-end loans and leases from 1.36% in 1996. Non-performing loans rose to $41.4 million in 1997 from $19.5 million in 1996, which management attributed principally to one major non-performing commercial loan. Management also changed its reserve methodology in 1997 by using a five-year historical loss period and a 1% industry base reserve for commercial and commercial real estate loans, a change the filing says increased the allocated inherent reserve by $41.9 million. The Corporation's Tangible Tier 1 Leverage Ratio was 6.8% at December 31, 1997, and the filing states that the Bank and each of the other subsidiary banks met or exceeded the minimum ratios to be considered well capitalized. Northern Trust employed 7,553 full-time equivalent officers and staff at year-end 1997.
Mar 2, 1999
1997-A
Northern Trust Annual Report (Amendment), Year Ended Dec 31, 1997
Northern Trust Corporation's Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 1997 was filed to add financial data schedules (Exhibit 27) containing restated earnings per share figures reflecting the adoption of Statement of Financial Accounting Standards No. 128, "Earnings Per Share." The amendment does not contain new operating results, financial statements, or narrative business discussion of its own; its purpose is limited to the supplemental exhibits. The filing reports 111,518,024 shares of Common Stock, $1.66 2/3 par value, outstanding at February 11, 1998, and an aggregate market value held by non-affiliates of approximately $7.05 billion, based on the Nasdaq Stock Market last sale price on that date. The Annual Report to Stockholders for 1997 (Parts I and II) and the 1998 Notice and Proxy Statement (Part III) are incorporated by reference, so the substantive financial and governance disclosures reside in those documents. The exhibit index shows restated financial data schedules for 1995 and 1996 and for interim periods of 1996 and 1997, as well as the 1997 financial data schedule and the 1997 Annual Report exhibit. The index also lists material contracts, including employee benefit and ESOP arrangements, leases, rights agreement amendments, and trust agreements for NTC Capital I and NTC Capital II, indicating the company's trust-preferred financing structure.
Jun 3, 1998
1997
Northern Trust Annual Report, Year Ended Dec 31, 1997
Northern Trust Corporation, a bank holding company headquartered in Chicago, reported in its 10-K for fiscal 1997 that consolidated total assets were approximately $25.3 billion and stockholders' equity approximately $1.7 billion at December 31, 1997. The Corporation's principal subsidiary, The Northern Trust Company, had total assets of approximately $21.2 billion. Net income for 1997 was $309.4 million, compared with $258.8 million in 1996 and $220.0 million in 1995, and diluted net income per common share was $2.66, versus $2.21 in 1996. Total noninterest income rose to $934.5 million from $780.0 million, led by trust fees of $689.2 million, while net interest income increased to $438.2 million from $388.3 million. The company's strategy centers on two business units: Corporate and Institutional Services (C&IS) and Personal Financial Services (PFS). Trust assets under administration reached $1.08 trillion at December 31, 1997, up from $778.9 billion a year earlier, and the Bank reported total assets under administration of $974.1 billion for C&IS. Credit quality remained sound, with total nonperforming assets of $43.3 million and a reserve for credit losses of $147.6 million at year-end. Capital strengthened, with Tier 1 risk-based capital at 9.6% and total risk-based capital at 12.8%, supported by $150 million and $120 million of Floating Rate Capital Securities issued in 1997. The filing incorporates most financial detail by reference to the 1997 Annual Report to Stockholders, and the Annual Report excerpts included in the filing supply the consolidated financial statements, MD&A and statistical data summarized here. The company reported 7,553 full-time equivalent staff at December 31, 1997, and noted Year 2000 renovation expenses of an estimated approximately $25 million, with $10.1 million incurred as of year-end 1997.
Mar 17, 1998
1996
Northern Trust Annual Report, Year Ended Dec 31, 1996
Northern Trust Corporation, a Delaware bank holding company headquartered in Chicago, reported record 1996 results in this 10-K. Net income reached $258.8 million, up from $220.0 million in 1995 (the filing states an increase of 17.6%). Fully diluted net income per common share rose 19% to $2.20, reflecting the two-for-one stock split effected in December 1996. Total assets were $21.6 billion at December 31, 1996, and stockholders' equity was $1.54 billion. Trust assets under administration reached $778.9 billion, up from $613.9 billion a year earlier. The company's revenue base is weighted toward fee income. Noninterest income was $777.9 million in 1996, versus net interest income of $388.3 million, and trust fees rose 17% to $592.3 million. Net interest margin narrowed to 2.25% from 2.30%, and nonperforming assets declined to $21.4 million, the lowest level in over fifteen years according to the filing. Noninterest expenses increased 8% to $766.8 million. Capital and balance sheet positions remained strong, with tier 1 capital at 8.2% and total risk-based capital at 11.9% of risk-adjusted assets, both above stated minimums. In January 1997 the company issued $150 million of floating rate capital securities, which qualify as Tier 1 capital. The filing also reports a dividend increase of 16.1% to $.18 per quarter in November 1996 and an expanded share buyback authorization.
Mar 14, 1997
1993
Northern Trust Annual Report, Year Ended Dec 31, 1993
Northern Trust Corporation, a Delaware bank holding company headquartered in Chicago, reported record 1993 net income of $167.9 million, up 12% from $149.5 million in 1992, with fully diluted earnings per common share of $2.95 versus $2.64. Total consolidated assets were approximately $16.9 billion at December 31, 1993, and stockholders' equity was $1.2 billion. Trust fees exceeded $400 million for the first time, reaching $404.8 million, and trust assets under administration grew 16% to $476.5 billion. The company describes itself as one of only eight major U.S. bank holding companies generating more revenue from fee-based services than from net interest income. Net interest income was a record $329.3 million, up 6%, though the net interest margin declined to 2.65% from 2.96% as the interest rate spread narrowed amid falling rates and growth in lower-yielding short-term U.S. Government securities. The provision for credit losses fell to $19.5 million from $29.5 million, and nonperforming loans were $27.3 million, or .36% of total loans. Noninterest expenses rose 7% to $628.2 million. Pending acquisitions of Hazlehurst & Associates ($22.5 million in stock) and Beach One Financial Services ($56.2 million in stock), both expected to be accounted for as poolings of interests, are expected to close in 1994. The company also agreed in March 1994 to sell its 21% interest in Banque Scandinave en Suisse, which would produce a pretax gain of approximately $33 million. The filing also discloses that the U.S. Department of Justice is investigating the mortgage lending practices of the Bank and three other Illinois banking subsidiaries under fair lending laws, and the company intends to cooperate fully. Capital ratios remained well above regulatory minimums, with a Tier 1 risk-based ratio of 9.3% and a total risk-based ratio of 13.4%.
Mar 15, 1994