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NTRS · Northern Trust

50 filings

10-Q

NTRS 10-Q Quarterly Reports

Northern Trust - 50 quarterly reports

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

NTRS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 118 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’19Feb ’19
  2. FY2020 annual report10-K · Feb ’21Feb ’21
  3. Leadership change8-K · Sep ’25Sep ’25
  1. 2026-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2026

    Northern Trust Corporation reported third-quarter 2026 net income of $642.9 million, up from $457.6 million a year earlier, and diluted EPS of $3.40 versus $2.29. Total revenue rose to $2,294.4 million, with growth driven by favorable markets, net new business and currency movement in fee income, plus a $34.0 million gain on the guardianship business sale and a $14.7 million gain tied to the second Visa Exchange Offer. Noninterest expense increased to $1,492.5 million, and the quarter recorded a $5.4 million provision for credit losses, compared with a negative provision of $17.0 million in the prior-year quarter. For the nine months ended September 30, 2026, net income was $1,960.6 million, up from $1,270.9 million, driven largely by a $540.1 million gain from the second Visa Exchange Offer. Those results were partly offset by a $73.9 million loss on a securities repositioning, $61.5 million of software disposal charges, $51.0 million of severance-related charges and a $33.1 million Invested as One equity grant. Total assets declined to $167.3 billion from $177.1 billion, mainly reflecting lower Federal Reserve and central bank deposits and total deposits, which fell to $132.2 billion from $142.8 billion. Stockholders' equity rose to $13.4 billion, and the company's standardized Common Equity Tier 1 ratio was 12.4%. AUC/A reached $19.82 trillion and AUM reached $1.96 trillion at September 30, 2026, reflecting favorable markets and net client inflows. The Corporation repurchased $1.1 billion of common stock in the nine months and, on October 20, 2026, approved a new $3.5 billion repurchase authorization that takes effect after the existing $2.5 billion program is completed. The Series D preferred stock was redeemed on October 1, 2026.

    Oct 29, 2026
  2. 2026-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2026

    Northern Trust Corporation reported a strong second quarter of 2026, with net income of $792.2 million, up 88% from $421.3 million in the prior-year quarter, and diluted earnings per share of $4.23 versus $2.13. Total revenue rose 35% to $2.70 billion, driven primarily by Other Noninterest Income of $673.0 million, which included a $525.4 million pre-tax gain from Northern Trust's participation in the second Visa, Inc. Exchange Offer. Trust, Investment and Other Servicing Fees increased 10% to $1.35 billion on favorable markets, net client inflows and net new business, and net interest income rose 11% to $675.5 million. Results were partly offset by a $73.9 million pre-tax loss on available for sale securities sold in a portfolio repositioning, and by noninterest expense that rose 16% to $1.64 billion, including a $61.5 million software disposal charge, $51.0 million of severance and a $33.1 million Invested as One equity grant. Client assets continued to grow, with assets under custody/administration reaching $20.00 trillion at June 30, 2026, up 7% from December 31, 2025, and assets under management reaching $1.97 trillion, up 9%. Return on average common equity was 25.9% for the quarter compared with 14.2% a year earlier. Book value per common share increased to $68.41 and the Corporation repurchased $350.6 million of common stock during the quarter. Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 12.2% on the standardized approach for the Corporation. Credit quality remained stable, with a negative provision for credit losses of $5.3 million for the quarter, nonaccrual loans of $71.3 million, and a nonaccrual loan ratio of 0.16% of total loans. Operating cash flow was negative for the six months, at $384.9 million used, mainly due to higher net collateral deposited with derivative counterparties.

    Jul 30, 2026
  3. 2026-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2026

    Northern Trust Corporation reported first-quarter 2026 net income of $525.5 million, up from $392.0 million in the prior-year quarter, with diluted EPS of $2.71 versus $1.90. Total revenue rose 14% to $2.21 billion, driven by Trust, Investment and Other Servicing Fees, which increased 11% to $1.34 billion on favorable markets, net new business and favorable currency movement. Net interest income increased 15% to $654.0 million on higher deposit levels, partially offset by lower interest rates, and noninterest expense rose 6% to $1.51 billion, mainly from compensation and equipment and software costs. A negative provision for credit losses of $3.0 million was recorded, compared with a $1.0 million provision a year earlier. Client assets were modestly lower at quarter-end: AUC/A was $18.55 trillion, down 1% from December 31, 2025, and AUM was $1.78 trillion, also down 1%, as market performance and currency were negative in the quarter even though net AUM inflows were $13.7 billion. Total assets declined to $174.6 billion from $177.1 billion, and deposits fell to $139.7 billion from $142.8 billion. Capital ratios declined from year-end levels but remained above well-capitalized thresholds; for Northern Trust Corporation, the standardized CET1 ratio was 12.0% versus 12.6% at December 31, 2025. The company repurchased 2,488,148 common shares for $358.9 million during the quarter. Operating cash flow was negative $320.0 million, primarily due to higher net collateral deposited with derivative counterparties. Management noted that nonaccrual loans fell to $55.0 million from $76.7 million, and the company disclosed a $4.6 billion receivable for cash not received as expected on overnight repurchase agreements, which was received the following business day.

    Apr 30, 2026
  4. 2025-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2025

    Northern Trust Corporation reported third-quarter 2025 net income of $457.6 million, down 2% from $464.9 million in the prior-year quarter, with diluted EPS of $2.29 versus $2.22. For the nine months ended September 30, 2025, net income was $1.27 billion, down 19% from $1.58 billion, reflecting the absence of prior-year gains such as the $878.4 million net gain from the Visa Exchange Offer. Total revenue for the quarter rose 3% to $2.03 billion, driven by Trust, Investment and Other Servicing Fees of $1.27 billion (up 6%) and Net Interest Income of $590.8 million (up 5%), partly offset by lower Other Noninterest Income. Total assets grew 9% to $170.26 billion from December 31, 2024, while deposits rose 11% to $135.80 billion. Client assets under custody/administration reached $18.25 trillion, up 9% year-to-date, and assets under management were $1.77 trillion, up 10%. Noninterest expense was $1.42 billion for the quarter, up 5%, mainly from compensation and equipment and software. The quarter included a negative provision for credit losses of $17.0 million, and the company repurchased 2,148 thousand shares in the quarter; the Board replaced the prior authorization with a new $2.5 billion repurchase program on July 22, 2025. Capital ratios remained above well-capitalized thresholds, with the Corporation's Standardized CET1 ratio at 12.4%, unchanged from December 31, 2024. Nonaccrual loans rose to $78.8 million, or 0.18% of total loans, up from $56.0 million at year-end 2024, primarily due to downgrades across several loan segments.

    Oct 30, 2025
  5. 2025-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2025

    Northern Trust Corporation reported second-quarter 2025 net income of $421.3 million, down from $896.1 million in the prior-year quarter, which included an $878.4 million net gain from participation in the Visa Exchange Offer. Total revenue for the quarter was $1,997.9 million, down from $2,715.5 million, mainly because of that prior-year Visa gain. Trust, Investment and Other Servicing Fees rose to $1,231.1 million, and Net Interest Income increased to $610.5 million, driven by higher deposits, lower funding costs and foreign exchange swap activity. Noninterest Expense fell to $1,416.6 million from $1,533.9 million, which included prior-year severance charges and a $70.0 million charitable contribution. Total assets grew to $171.88 billion at June 30, 2025, from $155.51 billion at December 31, 2024, and deposits rose to $137.05 billion. Assets under custody/administration reached $18.07 trillion and assets under management reached $1.70 trillion, both up from December 31, 2024. The company repurchased $339.4 million of common stock in the quarter and declared $0.75 per share in common dividends. Common Equity Tier 1 ratio under the standardized approach was 12.2%, and the company stated that its capital ratios exceeded well-capitalized requirements. On July 22, 2025, the Board approved a new share repurchase authorization of up to $2.5 billion, replacing the prior program. Nonaccrual loans rose to $92.8 million from $56.0 million, which the filing attributes primarily to downgrades of a small number of loans across multiple segments.

    Jul 30, 2025
  6. 2025-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2025

    Northern Trust Corporation reported first-quarter 2025 net income of $392.0 million, or $1.90 diluted earnings per share, compared with $214.7 million, or $0.96 per diluted share, in the prior-year quarter. Total revenue rose to $1.94 billion from $1.65 billion, driven by Noninterest Income of $1,371.9 million (up 23%) and Net Interest Income of $568.1 million (up 8%). The prior-year quarter included a $189.4 million available-for-sale debt security loss from a portfolio repositioning, which did not recur. Trust, Investment and Other Servicing Fees increased 6% to $1.21 billion, primarily on favorable markets. Return on average common equity was 13.0%, versus 7.3% a year earlier. Noninterest expense rose 4% to $1.42 billion, led by higher Equipment and Software and Compensation expense. The provision for credit losses was $1.0 million, compared with a negative provision of $8.5 million a year earlier, reflecting increased collective reserves tied to macroeconomic uncertainty. Nonaccrual loans increased to $73.1 million from $56.0 million at year-end 2024, primarily from downgrades in residential real estate and commercial and institutional loans. Client assets remained large: assets under custody/administration reached $16.92 trillion at March 31, 2025, up 1% from year-end, while assets under management were $1.61 trillion, flat versus December 31, 2024. Total assets grew to $165.1 billion and deposits to $131.0 billion. Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 12.9% on the standardized approach. The company repurchased 2,616,238 common shares for $287.2 million during the quarter.

    Apr 30, 2025
  7. 2024-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2024

    Northern Trust Corporation reported net income of $464.9 million, or $2.22 per diluted share, for the third quarter of 2024, up from $327.8 million, or $1.49 per diluted share, in the prior-year quarter. Total revenue rose 14% to $1.97 billion, driven by a $68.1 million pre-tax gain on the sale of an equity investment, while Trust, Investment and Other Servicing Fees increased 8% to $1.20 billion, primarily due to favorable markets. Net interest income increased 23% to $562.3 million, and noninterest expense rose 6% to $1.36 billion. Return on average common equity was 15.4% for the quarter and 18.2% for the nine months. For the nine months ended September 30, 2024, net income was $1.58 billion, or $7.51 per diluted share, up 59%. Results were lifted by a $878.4 million net gain related to the Visa transactions in the second quarter, partly offset by a $189.4 million loss on the sale of available for sale debt securities in the first quarter. Noninterest expense increased 9% to $4.26 billion, reflecting higher severance-related charges, a $70.0 million charitable contribution and a $14.7 million FDIC special assessment accrual. Assets under custody/administration reached $17.42 trillion, up 13% from year-end 2023 and assets under management reached $1.62 trillion, up 13%. Total assets were $155.75 billion, and deposits were $121.18 billion. Regulatory capital ratios remained above well-capitalized thresholds at September 30, 2024, with the Corporation's Common Equity Tier 1 ratio at 12.6% on the standardized approach. The company repurchased 3,463,546 shares in the quarter at a total cost of $301.4 million.

    Oct 29, 2024
  8. 2024-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2024

    Northern Trust Corporation reported second-quarter 2024 net income of $896.1 million, or $4.34 per diluted common share, compared with $331.8 million, or $1.56 per diluted share, in the prior-year quarter. Total revenue rose $958.4 million, or 55%, to $2.72 billion, driven largely by an $878.4 million net gain related to the Visa transactions recorded in Other Operating Income. Excluding that gain, the filing shows Trust, Investment and Other Servicing Fees up $69.8 million, or 6%, to $1.17 billion on favorable markets and new business, and Net Interest Income up $11.4 million, or 2%, to $522.9 million on higher client deposits, partially offset by higher funding costs. Noninterest Expense increased $202.0 million, or 15%, to $1.53 billion, including $182.2 million of restructuring charges and other notable items such as $85.2 million of severance-related charges, a $70 million charitable commitment to the Northern Trust Foundation, and a legal settlement. Net interest margin on an FTE basis was 1.57% in both periods. For the six months ended June 30, 2024, net income was $1.11 billion, up $444.4 million, or 67%, and the company repurchased $382.8 million of common stock. Balance sheet growth was driven by deposits, which rose to $122.99 billion from $116.16 billion at December 31, 2023, while loans declined to $42.14 billion from $47.62 billion. Stockholders' equity reached $12.66 billion. Common Equity Tier 1 capital ratio under the standardized approach was 12.6% at June 30, 2024, and Assets Under Custody/Administration grew to $16.57 trillion, up 14% from June 30, 2023, while Assets Under Management reached $1.53 trillion.

    Aug 1, 2024
  9. 2024-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2024

    Northern Trust Corporation reported first-quarter 2024 net income of $214.7 million, or $0.96 per diluted common share, down from $334.6 million, or $1.51 per diluted share, in the first quarter of 2023. Total revenue was $1,646.8 million, down from $1,744.6 million, driven by a $189.4 million loss on the sale of available-for-sale debt securities recorded in Investment Security Gains (Losses), net. Trust, Investment and Other Servicing Fees rose 7% to $1,142.9 million on favorable markets and new business, while Noninterest Expense increased 6% to $1,364.7 million, including a $12.5 million FDIC special assessment. Return on average common equity was 7.3%, compared with 12.4% a year earlier. Client assets were a key growth driver. Assets under custody/administration rose 7% from December 31, 2023 to $16,472.5 billion, and assets under management rose 5% to $1,500.7 billion, reflecting favorable markets and client inflows. Total deposits increased 7% to $123.9 billion, and total assets grew 4% to $156.1 billion. Net interest income was $528.1 million, down 1%, primarily due to higher funding costs, and net interest margin on an FTE basis declined to 1.61% from 1.62%. Credit quality remained sound, with a negative provision for credit losses of $8.5 million, net charge-offs of $10.4 million, and nonaccrual loans falling 43% to $37.0 million. Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 11.4% on the standardized approach at both March 31, 2024 and December 31, 2023. The dividend payout ratio rose to 78.1% from 49.7%, and the company repurchased 1,647,526 common shares for $132.0 million.

    Apr 23, 2024
  10. 2023-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2023

    Northern Trust Corporation's third-quarter 2023 Form 10-Q shows net income of $327.8 million, or $1.49 per diluted share, versus $394.8 million, or $1.80 per diluted share, in the prior-year quarter. Net Income decreased $67.0 million. Revenue was $1.73 billion, down from $1.75 billion, as Net Interest Income fell $56.8 million to $456.2 million on lower average earning assets, while Trust, Investment and Other Servicing Fees rose $33.2 million to $1.11 billion. Noninterest Expense rose $48.4 million to $1.28 billion, driven by Equipment and Software and Other Operating Expense. The Provision for Credit Losses was $14.0 million, compared with $0.5 million a year earlier. For the nine months ended September 30, 2023, net income was $994.2 million, or $4.56 per diluted share, down 16% from $1.18 billion. Net interest income rose to $1.50 billion on higher average interest rates, while noninterest expense increased $236.4 million to $3.90 billion. Deposits fell to $110.2 billion from $123.9 billion at December 31, 2022, and total assets declined to $146.3 billion. Assets under custody/administration reached $14.16 trillion, up 4% from year-end 2022, and assets under management reached $1.33 trillion. The filing also flags an estimated approximately $80 million FDIC special assessment, which would be recognized in Other Operating Expense if the proposed rule is finalized as proposed. Capital ratios remained above well-capitalized thresholds, with a Northern Trust Corporation Common Equity Tier 1 ratio of 11.4% on the standardized approach at September 30, 2023. Nonaccrual assets rose to $69.1 million from $45.9 million.

    Oct 31, 2023
  11. 2023-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2023

    Northern Trust Corporation reported second-quarter 2023 net income of $331.8 million, or $1.56 per diluted common share, down from $396.2 million, or $1.86 per diluted share, in the prior-year quarter. Net income for the six months ended June 30, 2023 was $666.4 million, or $3.07 per diluted share, compared with $785.5 million, or $3.63, a year earlier. Return on average common equity was 12.4% for the quarter versus 15.7% in the prior-year quarter. Total revenue was roughly flat for the six months at $3.50 billion, as Net Interest Income rose 24% to $1.04 billion, offsetting a 7% decline in Trust, Investment and Other Servicing Fees to $2.16 billion, driven by unfavorable lagged markets, asset outflows and currency translation. Noninterest Expense rose 8% to $2.62 billion for the six months, primarily due to higher Compensation and Equipment and Software expense. Balance sheet and client metrics improved in the quarter. Assets under custody/administration reached $14.48 trillion at June 30, 2023, up 6% from December 31, 2022, and assets under management rose to $1.37 trillion, up 9%. Total deposits fell 9% to $113.2 billion, while Federal Funds Purchased and Other Borrowings increased, and average Non-U.S. offices interest-bearing deposits were a major funding source. Capital ratios remained above well-capitalized thresholds, with Northern Trust Corporation's Common Equity Tier 1 ratio at 11.3% on the standardized approach. The company repurchased 1,361,828 shares in the quarter, and declared quarterly common dividends of $0.75 per share. The filing also notes a $25.6 million charge tied to the write-off of an investment in a client capability and $36.7 million of severance-related charges in Compensation expense. Credit quality remained stable, with a $15.5 million release of credit reserves in the quarter and nonaccrual assets of $47.4 million, down $42.4 million from the prior-year quarter.

    Jul 25, 2023
  12. 2023-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2023

    Northern Trust Corporation reported first-quarter 2023 net income of $334.6 million, or $1.51 per diluted common share, down from $389.3 million, or $1.77 per diluted share, in the first quarter of 2022. Total revenue rose 2% to $1.74 billion, driven by a 39% increase in Net Interest Income to $531.2 million, which more than offset a 9% decline in Trust, Investment and Other Servicing Fees, which fell $104.8 million to $1.06 billion on lagged unfavorable markets, asset outflows and unfavorable currency translation. Noninterest Expense rose 7% to $1.29 billion, and the effective tax rate was 24.6% versus 23.8% a year earlier. Return on average common equity was 12.4% compared with 14.2% in the prior-year quarter. Balance sheet totals contracted, with total assets down 3% to $151.1 billion and deposits down 8% to $113.7 billion from December 31, 2022. Assets under custody/administration rose 4% to $14.17 trillion and assets under management rose 6% to $1.33 trillion from year-end, though both declined year over year on unfavorable markets, currency and net outflows. The provision for credit losses was $15.0 million, primarily reflecting growth in the commercial real estate portfolio, mainly multi-family properties. Regulatory capital remained above well-capitalized thresholds, with a standardized-approach Common Equity Tier 1 ratio of 11.3% for the Corporation at March 31, 2023, up from 10.8% at December 31, 2022. The company repurchased 1,050,227 common shares for $100.9 million and declared common dividends of $0.75 per share, up from $0.70 a year earlier.

    May 2, 2023
  13. 2022-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2022

    Northern Trust Corporation's third-quarter 2022 Form 10-Q reports net income of $394.8 million, or $1.80 per diluted share, essentially flat versus $395.7 million and $1.80 in the prior-year quarter. Total revenue rose $121.0 million, or 7%, to $1.75 billion, driven by net interest income of $513.0 million, up $166.6 million, or 48%, on a higher net interest margin. Noninterest expense increased $101.1 million, or 9%, to $1.23 billion, primarily from compensation, equipment and software, outside services and employee benefits. For the nine months, net income rose 4% to $1.18 billion and diluted EPS was $5.43 versus $5.22. Client asset levels fell sharply. Assets under custody/administration declined 21% from year-end 2021 to $12.82 trillion, and assets under management fell 25% to $1.21 trillion, reflecting unfavorable markets, net outflows and currency translation. Trust, investment and other servicing fees declined 3% in the quarter to $1.08 billion. Total assets decreased 13% to $159.84 billion and deposits fell 20% to $128.55 billion from December 31, 2021. Capital remained above well-capitalized thresholds, with a standardized Common Equity Tier 1 ratio of 10.1% at the Corporation level at September 30, 2022. Book value per share declined 8% to $48.68 and the company reported net unrealized securities losses of $3.5 billion, mainly reflecting higher interest rates. The filing also notes that $6.6 billion of available-for-sale securities were transferred to held-to-maturity during the third quarter for capital management purposes.

    Oct 25, 2022
  14. 2022-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2022

    Northern Trust Corporation reported second-quarter 2022 net income of $396.2 million, or $1.86 per diluted common share, up 8% from $368.1 million, or $1.72 per diluted share, in the prior-year quarter. Revenue rose 12% to $1.77 billion, driven by a 37% increase in net interest income to $458.7 million, reflecting a higher net interest margin, a favorable balance sheet mix shift and nonrecurring interest received from certain nonaccrual loans. Trust, Investment and Other Servicing Fees increased 6% to $1.14 billion, primarily due to lower money market fund fee waivers, a reclassification of certain fees, and new business, partially offset by unfavorable currency translation. Noninterest expense rose 9% to $1.22 billion. Balance sheet and client asset figures declined sharply during the period. Total assets fell 14% to $157.8 billion from December 31, 2021, and deposits fell 16% to $133.7 billion. Assets under custody/administration decreased 15% to $13.73 trillion and assets under management decreased 19% to $1.30 trillion, reflecting unfavorable markets, net outflows and currency translation. Book value per share fell 7% to $48.87 and the market price at period end fell 17% to $96.48 from the prior-year period. Capital ratios remained above well-capitalized thresholds at June 30, 2022, with the Corporation's standardized Common Equity Tier 1 ratio at 10.5%. Net unrealized losses in the investment securities portfolio reached $3.0 billion, up from $187.1 million at year-end 2021, largely from higher interest rates. The filing also discloses that in July 2022 the Corporation transferred securities with a fair value of $6.38 billion from available for sale to held to maturity for capital management purposes.

    Jul 26, 2022
  15. 2022-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2022

    Northern Trust Corporation's first-quarter 2022 Form 10-Q reports net income of $389.3 million, or $1.77 per diluted common share, up from $375.1 million and $1.70 a year earlier, with total revenue of $1.72 billion, up 9%. Trust, Investment and Other Servicing Fees rose 10% to $1.17 billion, driven by favorable markets, new business and a change in fee classification that added $18.5 million in the quarter. Net interest income grew 12% to $381.0 million on higher average earning assets and a net interest margin of 1.03% on a GAAP basis (1.05% fully taxable equivalent). Noninterest expense rose 8% to $1.21 billion, and the provision for credit losses was $2.0 million, compared with a $30.0 million release a year earlier. Balance sheet and client asset measures declined in the quarter. Total assets fell to $172.57 billion from $183.89 billion at December 31, 2021, and assets under custody/administration fell 4% to $15.54 trillion, while assets under management fell 7% to $1.49 trillion, reflecting unfavorable markets and net outflows. Stockholders' equity dropped to $11.41 billion, reflecting an accumulated other comprehensive loss of $907.0 million, mainly from unrealized losses on available-for-sale debt securities as interest rates rose. Book value per common share was $50.51 at quarter end, down from $50.80 a year earlier. Capital ratios remained above well-capitalized thresholds at both the Corporation and The Northern Trust Company, with the Corporation's standardized Common Equity Tier 1 ratio at 11.4%, compared with 11.9% at December 31, 2021. The company returned capital through $147.8 million of common dividends declared, $16.2 million of preferred dividends, and $33.8 million of share repurchases tied to share-based compensation; the filing shows no open-market repurchases under the 25.0 million share authorization during the quarter.

    May 3, 2022
  16. 2021-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2021

    Northern Trust Corporation reported third-quarter 2021 net income of $395.7 million, up 34% from $294.5 million a year earlier, with diluted EPS of $1.80 versus $1.32. Total revenue rose 10% to $1.63 billion, driven by Trust, Investment and Other Servicing Fees of $1.11 billion (up 11%) on favorable markets, new business and currency translation. Net interest income increased 5% to $346.4 million on higher average earning assets, though the net interest margin declined to 0.98% on an FTE basis from 1.03%. The quarter also included a $13.0 million release of credit reserves, compared with a $0.5 million provision a year earlier. For the nine months, net income was $1.14 billion, up 18%, and diluted EPS was $5.22 versus $4.34. Total assets were $169.09 billion at September 30, 2021, slightly below year-end 2020, while deposits fell 1% to $141.92 billion. Assets under custody/administration rose 9% year to date to $15.78 trillion, and assets under management rose 9% to $1.53 trillion. Management notes that money market mutual fund fee waivers were $76.7 million in the quarter and are expected to continue in the low-rate environment, which will adversely affect fee income. Capital remained strong, with the Corporation's Common Equity Tier 1 ratio at 11.9% (Standardized Approach) and the Northern Trust Company's at 12.5%, both above well-capitalized requirements. Common share repurchases totaled $100.0 million in the quarter, and the Corporation disclosed that its repurchase program was replaced on October 19, 2021 with a new 25.0 million share authorization.

    Oct 26, 2021
  17. 2021-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2021

    Northern Trust Corporation reported net income of $368.1 million for the second quarter of 2021, up 18% from $313.3 million a year earlier, with diluted earnings per share of $1.72 versus $1.46. For the six months ended June 30, 2021, net income was $743.2 million, up 10% from $673.9 million, and diluted EPS was $3.42 versus $3.02. Growth was driven by higher Trust, Investment and Other Servicing Fees, which rose 12% in the quarter to $1.08 billion, primarily on favorable markets, new business and currency translation. Those gains were partly offset by a 10% decline in net interest income to $335.6 million, reflecting lower interest rates, and by a $27.0 million credit reserve release in the quarter, compared with a $66.0 million provision a year earlier. Assets under custody/administration reached $15.73 trillion at June 30, 2021, up 8% from year-end 2020, and assets under management reached $1.54 trillion, up 10%. Total deposits grew to $146.2 billion and total assets to $172.29 billion. Money market mutual fund fee waivers totaled $79.2 million in the quarter, which the filing says are expected to continue in the current low-rate environment and to adversely affect fee revenue. Noninterest expense rose 8% to $1.12 billion, including a $17.6 million pension settlement charge. Capital ratios remained above well-capitalized thresholds, and the company repurchased 252,304 common shares in the quarter.

    Jul 27, 2021
  18. 2021-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2021

    Northern Trust Corporation reported first-quarter 2021 net income of $375.1 million, or $1.70 per diluted common share, up from $360.6 million, or $1.55 per diluted share, in the first quarter of 2020. Total revenue was essentially flat at $1.58 billion, as noninterest income rose 5% to $1.24 billion while net interest income fell 17% to $340.1 million on a lower net interest margin of 1.00% (FTE) versus 1.51% a year earlier. A $30.0 million release of credit reserves contrasted with a $61.0 million provision in the prior-year quarter, and noninterest expense rose 5% to $1.12 billion. Return on average common equity was 13.7%, compared with 13.4% a year earlier. Client-driven scale continued to grow. Assets under custody/administration reached $14.80 trillion at March 31, 2021, up 2% from year-end 2020 and up 36% year over year, while assets under management rose to $1.45 trillion. Average total assets grew 23% and average deposits grew 33%, reflecting significant deposit inflows that were largely placed with the Federal Reserve and in the securities portfolio. Trust, Investment and Other Servicing Fees increased 6% to $1.06 billion, although the company voluntarily waived $50.2 million of money market mutual fund fees, a drag the filing expects to continue in the low-rate environment. Capital remained above well-capitalized thresholds, with a Northern Trust Corporation standardized Common Equity Tier 1 ratio of 12.0%, versus 12.8% at December 31, 2020. The company restarted its share repurchases in the quarter under Federal Reserve limits, buying back 1,399,673 shares for $135.6 million, and declared $151.0 million in common dividends and $16.2 million in preferred dividends. Nonaccrual assets rose to $125.3 million from $132.4 million at year-end 2020 (the filing's own comparison is to the prior-year quarter, where it reports an increase of $19.8 million from $105.5 million).

    Apr 27, 2021
  19. 2020-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2020

    Northern Trust Corporation reported third-quarter 2020 net income of $294.5 million, down 23% from $384.6 million a year earlier, with diluted EPS of $1.32 versus $1.69. For the nine months, net income was $968.4 million, down 14%, and diluted EPS was $4.34 versus $4.92. Total revenue for the quarter fell 3% to $1.49 billion, as net interest income dropped 21% to $328.6 million on a lower net interest margin (1.03% FTE for the quarter versus 1.61% a year earlier). Noninterest income rose 3%, supported by trust, investment and other servicing fees of $1.00 billion, and noninterest expense rose 6% to $1.09 billion, including a $43.4 million charge related to a corporate action processing error. Balance sheet growth was substantial. Total assets reached $152.08 billion, up 11% from year-end 2019, and total deposits rose 12% to $122.59 billion, reflecting significant client deposit inflows. Assets under custody/administration grew 9% from year-end 2019 to $13.08 trillion, and assets under management rose 7% to $1.31 trillion. Provision for credit losses for the nine months was $127.5 million, driven by the economic effects of COVID-19, and nonaccrual assets stood at $98.9 million. The Corporation suspended share repurchases in March 2020, and under Federal Reserve measures no repurchases were permitted in the third quarter, with those restrictions extended into the fourth quarter. Capital ratios remained above well-capitalized thresholds. The filing also describes Northern Trust's participation in the Paycheck Protection Program, with $215.3 million of PPP loans funded as of September 30, 2020, and a $20.0 million, five-year philanthropic commitment. Management expects the vast majority of staff to continue working remotely for some time, with a phased return to offices beginning.

    Oct 27, 2020
  20. 2020-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2020

    Northern Trust Corporation reported net income of $313.3 million for the second quarter of 2020, down from $389.4 million a year earlier, with diluted earnings per share of $1.46 versus $1.75. Total revenue was essentially flat at $1.51 billion, as noninterest income rose to $1.13 billion while net interest income fell to $372.1 million, reflecting a lower net interest margin. The results were pressured by a $66.0 million provision for credit losses, driven by portfolio downgrades and a more severe projected economic outlook tied to the COVID-19 pandemic, and by noninterest expense that rose 3% to $1.04 billion. Balance sheet and client metrics grew strongly. Total assets reached $151.43 billion at June 30, 2020, up from $136.83 billion at December 31, 2019, and deposits rose to $122.05 billion. Assets under custody/administration were $12.10 trillion, and assets under management were $1.26 trillion, supported by favorable markets and net inflows. Nonaccrual assets were $99.4 million, and the company noted that the Federal Reserve will not permit share repurchases in the third quarter of 2020 and limits dividends to the second-quarter amount. The filing also describes the company's participation in the Paycheck Protection Program, with $213.8 million in PPP loans funded as of June 30, 2020, and the adoption of ASU 2016-13 (CECL) on January 1, 2020, which increased the allowance for credit losses by $13.7 million. Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 standardized ratio of 13.4% at June 30, 2020.

    Jul 28, 2020
  21. 2020-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2020

    Northern Trust Corporation reported first-quarter 2020 net income of $360.6 million, up from $347.1 million a year earlier, with diluted net income per common share of $1.55 compared with $1.48. Total revenue rose $106.8 million, or 7%, to $1.59 billion, driven by a $120.7 million, or 11%, increase in noninterest income that reflected higher trust, investment and other servicing fees, foreign exchange trading income, and security commissions and trading income. Net interest income fell $13.9 million, or 3%, to $408.1 million, primarily due to a lower net interest margin. The filing states that the COVID-19 pandemic drove a $61.0 million provision for credit losses, against no provision in the prior-year quarter, and that the Corporation adopted ASU 2016-13 on January 1, 2020. Assets under custody/administration fell 10% from December 31, 2019 to $10.88 trillion, and assets under management fell 9% to $1,119.3 billion, both attributed mainly to unfavorable markets and currency translation, partially offset by net inflows. Noninterest expense rose $36.9 million, or 4%, to $1.07 billion. The Corporation temporarily suspended its share repurchase program on March 16, 2020, after repurchasing 3,240,738 shares for $296.8 million during the quarter. The filing states that the Corporation expects recent declines in market interest rates to continue to pressure net interest income and net interest margin, and that future revenue and provisions could be affected further by recent market events. Capital ratios remained above well-capitalized requirements at March 31, 2020. The Corporation contributed $500 million of capital to The Northern Trust Company and redeemed its Series C Non-Cumulative Perpetual Preferred Stock for $400.0 million. Total assets were $161.7 billion at March 31, 2020, compared with $136.8 billion at December 31, 2019, and total deposits rose to $131.5 billion from $109.1 billion, primarily reflecting client response to economic conditions.

    Apr 27, 2020
  22. 2019-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2019

    Northern Trust Corporation reported net income of $384.6 million, or $1.69 per diluted common share, for the third quarter of 2019, compared with $374.5 million, or $1.58 per diluted share, in the prior-year quarter. For the nine months ended September 30, 2019, net income was $1.12 billion, down $25.4 million, or 2%, from $1.15 billion. Noninterest income rose 5% in the quarter to $1.12 billion, driven by higher trust, investment and other servicing fees and other operating income, partially offset by lower foreign exchange trading income. Net interest income increased 2% to $417.7 million, primarily from a higher net interest margin of 1.61% on an FTE basis, partly offset by a decline in average earning assets. Noninterest expense rose 3% to $1.04 billion, mainly on higher compensation, outside services, and equipment and software costs. Assets under custody/administration reached $11.57 trillion at September 30, 2019, up 7% year over year, and assets under management reached $1.20 trillion, up 3%, reflecting favorable markets and net inflows. Total assets declined to $124.4 billion from $132.2 billion at December 31, 2018, largely due to lower Federal Reserve and central bank deposits, while stockholders' equity rose to $10.8 billion. Capital remained strong, with the Corporation's Common Equity Tier 1 ratio at 12.9% on the standardized approach. During the nine months, the company repurchased 9,169,744 common shares for $835.8 million and declared common dividends of $0.70 per share in the third quarter, up from $0.55 a year earlier. Nonperforming assets fell to $116.3 million from $124.9 million a year earlier, and the provision for credit losses was a credit of $7.0 million in the quarter.

    Oct 28, 2019
  23. 2019-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2019

    Northern Trust Corporation reported second-quarter 2019 net income of $389.4 million, or $1.75 per diluted common share, compared with $390.4 million, or $1.68 per diluted share, in the prior-year quarter. Annualized return on average common equity was 15.9% versus 16.5% a year earlier. For the six months ended June 30, 2019, net income was $736.5 million, down $35.5 million, or 5%, from $772.0 million, with diluted EPS of $3.23 versus $3.26. Total revenue for the quarter was about $1.51 billion, essentially unchanged, as lower foreign exchange trading income offset higher trust, investment and other servicing fees. Net interest income rose $4.1 million, or 1%, to $417.4 million, primarily on a higher net interest margin of 1.58% (1.61% FTE-adjusted) versus 1.45% a year earlier, partly offset by lower average earning assets, which fell to $105.7 billion from $114.4 billion. Noninterest expense increased 1% to $1.01 billion, and the quarter included a $6.5 million credit to the provision for credit losses. Assets under custody/administration reached $11.32 trillion at June 30, 2019, up 6% from a year earlier, and assets under management reached $1.18 trillion, up 3%, though the company noted net outflows of $8.5 million in the quarter. Capital and shareholder returns remained strong. Book value per share was $46.18 versus $42.44, and the company declared cash dividends of $0.60 per common share versus $0.42 a year earlier. It repurchased 2,927,530 common shares in the quarter at a total cost of $271.2 million. Common Equity Tier 1 ratio under the advanced approach was 13.6%, and the company stated it exceeded well-capitalized requirements. Total assets declined to $126.55 billion from $132.21 billion at December 31, 2018.

    Jul 30, 2019
  24. 2019-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2019

    Northern Trust Corporation reported first-quarter 2019 net income of $347.1 million, or $1.48 per diluted common share, down from $1.58 in the first quarter of 2018 (net income of $381.6 million). Annualized return on average common equity was 14.0%, compared with 16.0% in the prior-year quarter. Net interest income rose 10% to $422.0 million, primarily from a higher net interest margin, partially offset by a decrease in earning assets. Noninterest income fell 3% to $1.06 billion, reflecting lower foreign exchange trading income, trust, investment and other servicing fees, and other operating income. Noninterest expense increased 3% to $1.03 billion, driven by higher outside services, compensation, and equipment and software expense. There was no provision for credit losses in the quarter, compared with a provision credit of $3.0 million a year earlier. Assets under custody/administration reached $10.93 trillion at March 31, 2019, up 1% from March 31, 2018, reflecting favorable markets partially offset by unfavorable foreign exchange movements and net outflows. Consolidated assets under management were $1.16 trillion, relatively unchanged year over year. Total assets were $121.9 billion at March 31, 2019, down from $132.2 billion at December 31, 2018, and total stockholders' equity was $10.6 billion. The company's regulatory capital ratios remained above well-capitalized requirements. Common Equity Tier 1 under the Advanced Approach was 13.5% at March 31, 2019, compared with 13.7% at December 31, 2018. During the quarter, Northern Trust repurchased 2,850,152 common shares at a total cost of $257.4 million, and declared common dividends of $133.7 million.

    Apr 29, 2019
  25. 2018-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2018

    Northern Trust Corporation's Form 10-Q for the quarter ended September 30, 2018 reports third-quarter net income of $374.5 million, or $1.58 per diluted share, up from $298.4 million, or $1.20 per diluted share, in the prior-year quarter. Annualized return on average common equity was 15.1%, compared with 12.2% a year earlier. Revenue was $1.47 billion, up $129.1 million, or 10%. Noninterest income rose 8% to $1.07 billion, driven by trust, investment and other servicing fees and foreign exchange trading income. Net interest income increased 15% to $408.2 million, primarily from a higher net interest margin, which rose to 1.44% on a GAAP basis from 1.25%. Noninterest expense increased 7% to $1.00 billion. For the nine months, net income was $1.15 billion, up 36%, and diluted EPS was $4.84 versus $3.41. Assets under custody/administration reached $10.83 trillion at September 30, 2018, up 12% year over year, and assets under management reached $1.17 trillion, up 4%. Period-end deposits declined 7% from December 31, 2017, and total assets fell 4% to $132.4 billion. The company repurchased 2,171,699 common shares in the quarter at a total cost of $235.9 million, and capital ratios remained above well-capitalized thresholds. The filing also notes a Visa Class B share-related swap expense, an $8.1 million impairment on a community development equity investment, and an income tax benefit from a 21% federal rate under the Tax Cuts and Jobs Act. Pending items include the Visa covered litigation, a French tax matter involving a subsidiary, and CFTC and NFA inquiries into the Bank's swap dealer activities.

    Oct 29, 2018
  26. 2018-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2018

    Northern Trust Corporation reported net income of $390.4 million for the second quarter of 2018, up from $267.9 million in the prior-year quarter, and diluted earnings per share of $1.68 versus $1.12. For the six months ended June 30, 2018, net income was $772.0 million, up from $544.0 million, and diluted EPS was $3.26 versus $2.21. Total noninterest income rose 12% to $1.09 billion in the quarter, while net interest income increased 21% to $413.3 million, primarily from a higher net interest margin and a larger earning asset base. Noninterest expense rose 6% to $997.4 million, largely from higher compensation, outside services, employee benefits, and equipment and software costs. The effective tax rate fell to 23.0% from 31.4%, reflecting the reduction in the U.S. corporate income tax rate under the Tax Cuts and Jobs Act. Assets under custody/administration were $10.71 trillion at June 30, 2018, essentially flat from December 31, 2017 but up 15% year over year, and assets under management were $1.15 trillion, up 12% from a year earlier. Total assets declined to $135.1 billion from $138.6 billion at year-end 2017, and deposits fell to $106.5 billion from $112.4 billion. Capital ratios remained above well-capitalized requirements, with Common Equity Tier 1 at 13.3% under the advanced approach and 12.4% under the standardized approach. Stockholders' equity was $10.36 billion, and the company repurchased 4,305,710 common shares for $453.8 million during the six months. Credit quality metrics improved: nonperforming assets were $132.2 million, down 21% from $166.7 million a year earlier, and the quarter recorded a provision for credit losses of $1.5 million compared with a provision credit of $7.0 million in the prior-year quarter. The filing also notes the company's exposure to market risk through sensitivity analyses, with a 100 basis point rate increase estimated to raise next-twelve-month net interest income by $31 million.

    Jul 30, 2018
  27. 2018-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2018

    Northern Trust Corporation reported first-quarter 2018 net income of $381.6 million, or $1.58 per diluted common share, compared with $276.1 million, or $1.09 per diluted share, in the first quarter of 2017. Annualized return on average common equity was 16.0%, versus 11.6% a year earlier. Revenue rose $191.6 million, or 15%, to $1.48 billion, driven by noninterest income up $161.1 million, or 17%, to $1.09 billion, mainly from higher trust, investment and other servicing fees and foreign exchange trading income. Net interest income grew $30.5 million, or 9%, to $384.0 million, and noninterest expense rose $100.8 million, or 11%, to $995.3 million, largely on higher compensation, outside services, employee benefits, and equipment and software costs. The filing also notes a $3.0 million credit to the provision for credit losses and an effective tax rate of 21.1%, reflecting the reduced U.S. federal corporate tax rate under the Tax Cuts and Jobs Act. Assets under custody/administration reached $10.79 trillion at March 31, 2018, up 21% from a year earlier, and assets under management reached $1.17 trillion, up 16%. Nonperforming assets fell 31% to $128.9 million from $186.8 million a year earlier. Total assets were $129.7 billion at quarter-end, down from $138.6 billion at December 31, 2017, largely reflecting lower Federal Reserve and other central bank deposits and client deposits. The company repurchased 2,518,409 common shares for $263.2 million during the quarter and declared common dividends of $96.4 million. The filing states that both Northern Trust and The Northern Trust Company remained well capitalized at March 31, 2018. Common Equity Tier 1 under the Advanced Approach was 13.0%, and the company disclosed that the Corporation's 2017 Capital Plan permits up to $191.4 million of common stock repurchases after March 31, 2018 through June 2018. Net interest income sensitivity over the next twelve months showed $71 million of benefit from a 100 basis point rate increase and a $64 million reduction from a 50 basis point decrease.

    May 4, 2018
  28. 2017-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2017

    Northern Trust Corporation reported third-quarter 2017 net income of $298.4 million, or $1.20 per diluted share, up from $257.6 million, or $1.08 per diluted share, in the prior-year quarter. Annualized return on average common equity was 12.2% versus 11.7% a year earlier. Revenue for the quarter was $1.35 billion, up $131.5 million, or 11%. Noninterest income rose 9% to $991.0 million, driven mainly by higher trust, investment and other servicing fees, while net interest income increased 17% to $354.2 million on a higher net interest margin and larger average earning assets. Noninterest expense rose 11% to $935.6 million, mainly from compensation, other operating expense, equipment and software, and outside services. Assets under custody/administration reached $9.70 trillion at September 30, 2017, up 14% from a year earlier, and assets under management reached $1.13 trillion, up 19%. Total assets were $131.4 billion and stockholders' equity was $10.2 billion at quarter end. The provision for credit losses was a credit of $7.0 million, and nonperforming assets fell 20% year over year to $145.5 million. Nine-month net income was $842.4 million, up 10%, and diluted EPS was $3.41. The company repurchased 1,367,825 common shares in the quarter, and the Board replaced the prior buyback program with a new authorization of up to 9.5 million shares. The filing also notes the completion, on October 1, 2017, of the acquisition of UBS Asset Management's fund administration servicing businesses in Luxembourg and Switzerland for $199.4 million.

    Oct 26, 2017
  29. 2017-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2017

    Northern Trust Corporation reported second-quarter 2017 net income of $267.9 million, or $1.12 per diluted common share, up from $263.0 million, or $1.10 per diluted share, in the prior-year quarter. For the six months ended June 30, 2017, net income was $544.0 million, up 7% from $508.4 million. The current quarter included $22.8 million of pre-tax severance and related expense charges, while the prior-year quarter included a $118.2 million pre-tax gain on the sale of Visa Class B shares offset by several charges. Excluding these items, revenue rose 8% and noninterest expense rose 9% in the quarter, reflecting growth in trust, investment and other servicing fees and net interest income. Growth in client assets and balance sheet funding drove results. Assets under custody/administration reached $9.29 trillion, up 15% year over year, and assets under management reached $1.03 trillion, up 14%. Net interest income increased 14% to $341.5 million, driven by a higher net interest margin of 1.25% (1.28% on an FTE basis) versus 1.13% a year earlier. Foreign exchange trading income fell 22% to $49.9 million on lower currency volatility. Credit quality remained stable, with a provision for credit losses that was a credit of $7.0 million and nonperforming assets of $166.7 million, relatively unchanged from a year earlier. Capital ratios remained above well-capitalized requirements, with a Common Equity Tier 1 ratio of 13.2% under the advanced approach at June 30, 2017. The company also disclosed a pending acquisition of UBS Asset Management's fund administration servicing businesses in Luxembourg and Switzerland for an initial price of approximately $175 million, and an expected one-time, non-cash Illinois tax charge following enacted tax legislation.

    Jul 27, 2017
  30. 2017-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2017

    Northern Trust Corporation reported first-quarter 2017 net income of $276.1 million, or $1.09 per diluted common share, up from $1.03 in the first quarter of 2016. Annualized return on average common equity was 11.6% in both periods. Revenue rose $94.4 million, or 8%, to $1.28 billion, driven by higher trust, investment and other servicing fees and net interest income, partly offset by lower foreign exchange trading income. Noninterest expense increased $65.7 million, or 8%, to $894.5 million, mainly on higher compensation, equipment and software, and employee benefits costs. Net interest income rose 15% to $353.5 million on a higher net interest margin and growth in earning assets. Assets under custody/administration reached $8.92 trillion at March 31, 2017, up 13% from a year earlier, and assets under management reached $1.00 trillion, up 11%. Both increases were attributed mainly to favorable markets and new business. The provision for credit losses was a credit of $1.0 million, compared with a $2.0 million provision a year earlier. Nonperforming assets rose 7% to $186.8 million. The Corporation also agreed on February 19, 2017 to acquire UBS Asset Management's fund administration servicing businesses in Luxembourg and Switzerland for an initial purchase price of approximately $175 million in cash, with closing expected in the second half of 2017. Capital ratios remained above the well-capitalized minimums, with a Common Equity Tier 1 ratio of 12.9% on the advanced approach at March 31, 2017.

    May 2, 2017
  31. 2016-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2016

    Northern Trust Corporation reported net income of $257.6 million, or $1.08 per diluted common share, for the third quarter of 2016, up from $234.6 million, or $0.96 per diluted share, in the prior-year quarter. Annualized return on average common equity was 11.7%, compared with 10.9% a year earlier. Revenue was $1.21 billion, up $58.2 million, or 5%, driven by higher trust, investment and other servicing fees and net interest income, partially offset by lower foreign exchange trading income. Net interest income rose 13% to $303.1 million on a higher net interest margin and growth in earning assets, while noninterest expense increased 4% to $843.0 million. For the nine months, net income was $766.0 million, or $3.21 per diluted share, and the filing notes that the early adoption of ASU No. 2016-09 favorably impacted nine-month diluted EPS by $0.06. Assets under custody/administration reached $8.50 trillion at September 30, 2016, up 9% from $7.80 trillion at December 31, 2015, and assets under management reached $945.8 billion, up 8% from $875.3 billion at year-end 2015. Total assets were $120.1 billion at September 30, 2016, compared with $116.7 billion at December 31, 2015. The company issued $500 million of Series D non-cumulative perpetual preferred stock in August 2016, with aggregate net proceeds of $493.5 million, and repurchased 5,231,246 common shares for $346.1 million during the nine months. Credit quality improved: the provision for credit losses was a credit of $3.0 million in the quarter, and nonperforming assets of $181.0 million decreased 13% from the prior-year quarter. Capital ratios remained above well-capitalized thresholds, with a common equity Tier 1 ratio of 11.8% under the advanced approach at September 30, 2016.

    Oct 26, 2016
  32. 2016-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2016

    Northern Trust Corporation reported second-quarter 2016 net income of $260.7 million, or $1.09 per diluted common share, down from $269.2 million, or $1.10, in the second quarter of 2015. Net income was affected by several items: a $118.2 million gain on the sale of 1.1 million Visa Class B common shares (net of swap valuation adjustments), offset by a $46.5 million charge to settle securities lending litigation (subject to court approval), $18.6 million of charges related to contractual modifications with C&IS clients, $17.5 million of severance and related charges, and $14.1 million of impairment and loss-on-sale charges tied to exiting a non-strategic loan and lease portfolio. Excluding these items, net income per diluted share was $1.06 and annualized return on average common equity was 11.7%. Reported annualized return on average common equity was 12.2%, versus 12.8% a year earlier. Revenue rose 5% to $1.32 billion, driven by net interest income, which increased 19% to $299.7 million on earning asset growth and a higher net interest margin of 1.13% (1.16% on a fully taxable equivalent basis). Noninterest income rose 1% to $1.02 billion, with trust, investment and other servicing fees up 3% to $777.2 million, partially offset by a 14% decline in foreign exchange trading income to $64.4 million. Noninterest expense increased 8% to $925.0 million. Assets under custody/administration reached $8.12 trillion, up 2% from March 31, 2016, while assets under management were $906.2 billion, down 4% from a year earlier, reflecting outflows from certain sovereign wealth fund clients and unfavorable equity markets. At June 30, 2016, total assets were $121.5 billion and stockholders' equity was $8.95 billion, with book value per share of $37.79. The company repurchased 1,966,989 common shares in the quarter at an average price of $71.53. Capital ratios remained above the 'well capitalized' thresholds, with a Common Equity Tier 1 advanced-approach ratio of 11.5%. The filing also discloses that the Second Circuit reversed approval of the Visa interchange litigation settlement on June 30, 2016, which leaves the timing of removal of selling restrictions on the remaining Visa Class B shares uncertain.

    Jul 27, 2016
  33. 2016-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2016

    Northern Trust Corporation reported first-quarter 2016 net income of $241.8 million, or $1.01 per diluted common share, compared with $230.7 million, or $0.94 per diluted share, in the prior-year quarter. Annualized return on average common equity was 11.4%, up from 11.3%. Revenue rose $55.5 million, or 5%, to $1.19 billion, driven by higher net interest income and trust, investment and other servicing fees, partially offset by lower foreign exchange trading income. Net interest income increased 18% to $307.8 million on growth in earning assets and a higher net interest margin, while noninterest expense rose $39.8 million, or 5%, to $828.8 million, mainly on higher compensation and outside services. Assets under custody/administration reached $7.93 trillion at March 31, 2016, up 2% from December 31, 2015. Assets under management were $900.0 billion, down 6% from $960.1 billion a year earlier, reflecting outflows from certain sovereign wealth fund clients, unfavorable global equity markets and the loss of one passive mandate from a non-U.S. institutional client. Nonperforming assets fell 24% year over year to $174.4 million, and the provision for credit losses was an expense of $2.0 million versus a credit of $4.5 million a year earlier. Capital ratios remained strong, with all 'well capitalized' thresholds exceeded. During the quarter the company repurchased 2,310,617 common shares at a total cost of $140.3 million, and it declared common dividends of $83.9 million and preferred dividends of $5.9 million. Operating cash flow was negative at $299.1 million, largely due to incentive payments and higher net collateral deposited with counterparties.

    Apr 28, 2016
  34. 2015-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2015

    Northern Trust Corporation reported net income of $234.6 million for the third quarter of 2015, up from $204.5 million a year earlier, with diluted earnings per common share of $0.96 compared to $0.84. For the nine months ended September 30, 2015, net income totaled $734.5 million, up $166.7 million, or 29%, and diluted EPS was $3.00 versus $2.34. The filing notes that the nine-month results include a net pre-tax gain of $99.9 million on the sale of 1.0 million Visa Inc. Class B shares, $45.8 million of voluntary cash contributions to constant dollar NAV funds, and a $17.8 million impairment of aircraft residual values under leveraged leases. Excluding these items, nine-month net income was $712.1 million and diluted EPS was $2.91. Quarterly revenue of $1.16 billion rose $76.6 million, or 7%, driven by higher trust, investment and other servicing fees, foreign exchange trading income and security commissions and trading income. Noninterest expense rose 5% to $812.3 million, and the Corporation recorded a provision for credit losses credit of $10.0 million, reflecting improved credit quality. Assets under custody were $5.96 trillion at September 30, 2015, roughly flat versus December 31, 2014, while assets under management declined 5% year to date to $886.8 billion, reflecting lower equity markets. Balance sheet growth was substantial, with total assets of $120.0 billion at September 30, 2015, up from $109.9 billion at December 31, 2014, and deposits rising to $99.9 billion. Capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 12.4% under the advanced approach at the Corporation level. The company repurchased 1,914,950 common shares for $140.5 million in the third quarter.

    Oct 28, 2015
  35. 2015-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2015

    Northern Trust Corporation reported second-quarter 2015 net income of $269.2 million, or $1.10 per diluted common share, up from $181.9 million, or $0.75, in the prior-year quarter. The current quarter includes a net pre-tax gain of $99.9 million on the sale of 1.0 million Visa Inc. Class B common shares, offset by voluntary cash contributions of $45.8 million to certain constant dollar NAV funds and a $17.8 million impairment of the residual value of certain aircraft under leveraged lease agreements. Excluding these items, net income was $246.7 million, or $1.01 per diluted share. Noninterest income rose 20% to $1.00 billion, driven by trust, investment and other servicing fees, foreign exchange trading income and the Visa gain, while net interest income increased 2% to $251.2 million and noninterest expense rose 5% to $854.5 million. The quarter also included a $10.0 million credit to the provision for credit losses, reflecting improved credit quality. Balance sheet and client metrics grew over the period. Total assets were $119.9 billion at June 30, 2015, up from $109.9 billion at December 31, 2014. Assets under custody reached $6.18 trillion, up 3% from a year earlier, and assets under management reached $945.6 billion, up 2%. Deposits rose to $100.7 billion from $90.8 billion at year-end 2014. The return on average common equity was 12.8% for the quarter, and the common equity Tier 1 ratio under the advanced approach was 12.0% for the Corporation. Net interest margin on a fully taxable equivalent basis declined to 1.00% from 1.06% in the prior-year quarter, reflecting the aircraft impairment and lower loan and short-term deposit yields. Nonperforming assets were $218.8 million at June 30, 2015, and the Corporation repurchased 1,295,263 common shares during the quarter at an average price of $74.64.

    Jul 29, 2015
  36. 2015-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2015

    Northern Trust Corporation reported first-quarter 2015 net income of $230.7 million, or $0.94 per diluted share, up from $181.4 million, or $0.75 per diluted share, in the first quarter of 2014. Annualized return on average common equity was 11.3%, versus 9.3% a year earlier. Total revenue was $1.13 billion, up $94.0 million, or 9%, driven by noninterest income of $873.9 million (up 10%), mainly from higher trust, investment and other servicing fees and foreign exchange trading income. Net interest income rose 6% to $260.6 million on earning asset growth, although the net interest margin declined to 1.10% from 1.12%. A provision for credit losses was a credit of $4.5 million, reflecting improved credit quality, compared with a $3.0 million provision a year earlier. Noninterest expense rose 3% to $789.0 million, mainly on higher compensation, equipment and software, and employee benefits costs. Assets under custody reached $6.09 trillion and assets under management reached $960.1 billion at March 31, 2015. Total assets declined to $106.95 billion from $109.95 billion at year-end 2014, largely because Federal Reserve deposits fell, while average assets grew 7%. Capital remained strong. The Basel III Advanced Approach Common Equity Tier 1 ratio for the Corporation was 11.8%, and the Standardized Approach ratio was 10.5%. During the quarter the company repurchased 1,555,870 shares for $107.2 million, and it declared $78.5 million in common dividends and $5.9 million in preferred dividends. Management also reported a $19.2 million pre-tax securities lending settlement charge recorded in 2013 and an SEC investigation related to securities lending that remains ongoing.

    Apr 28, 2015
  37. 2014-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2014

    Northern Trust Corporation reported net income of $204.5 million for the third quarter of 2014, compared with $206.5 million in the prior year quarter, and diluted earnings per share of $0.84, flat year over year. The prior year quarter included a $32.6 million pre-tax gain on the sale of an office building. Excluding that gain, the prior year quarter's diluted EPS was $0.76 and net income was $186.2 million. For the nine months ended September 30, 2014, net income rose to $567.8 million from $561.6 million, and diluted EPS was $2.34 versus $2.29. The current nine-month period includes pre-tax charges and write-offs totaling $42.3 million. Revenue for the quarter was $1.08 billion, up 3%, driven by noninterest income of $829.6 million (up 2%) and net interest income of $249.3 million (up 5%). Trust, investment and other servicing fees rose 11% to $718.2 million, while foreign exchange trading income fell 26% to $46.4 million. Noninterest expense increased 5% to $774.7 million, mainly reflecting higher compensation, employee benefits and equipment and software costs. The net interest margin declined to 1.05% from 1.14%. The provision for credit losses was zero in the quarter, compared with $5.0 million a year earlier. Assets under custody reached $5.91 trillion at September 30, 2014, up 13% from the prior year quarter's $5.24 trillion, and assets under management reached $923.3 billion, up 9%. On August 5, 2014, the company issued Series C Non-Cumulative Perpetual Preferred Stock for proceeds of approximately $390 million. Capital ratios remained strong, with the Common Equity Tier 1 ratio at 12.7% under the Advanced Approach at September 30, 2014.

    Oct 31, 2014
  38. 2014-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2014

    Northern Trust Corporation reported net income of $181.9 million for the second quarter of 2014, down $9.2 million, or 5%, from $191.1 million in the prior year quarter, with diluted earnings per share of $0.75 versus $0.78. The current quarter includes pre-tax charges and write-offs totaling $42.3 million; excluding these, net income would have been $209.8 million and diluted EPS $0.87. Revenue of $1.08 billion rose $61.2 million, or 6%, led by trust, investment and other servicing fees of $706.9 million, up 8%, while foreign exchange trading income fell 26% to $52.9 million. Noninterest expense rose 11% to $811.0 million, driven by compensation, equipment and software, and severance-related charges. For the six months, net income was $363.3 million, up 2%. Balance sheet growth was steady. Total assets reached $105.8 billion at June 30, 2014, up 3% from December 31, 2013, and deposits rose 6% to $88.9 billion. Assets under custody grew 8% to $6.0 trillion and assets under management grew 5% to $924.4 billion. Net interest income increased 12% to $246.6 million, although the net interest margin declined to 1.06% (FTE basis) from 1.10%. The company recorded no provision for credit losses in the quarter, versus $5.0 million a year earlier, and nonperforming assets decreased 14% from the prior-year quarter. Capital ratios remained strong. Northern Trust Corporation's Common Equity Tier 1 ratio under the Advanced Approach was 12.7% at June 30, 2014. The company repurchased 1,235,417 shares for $74.9 million in the quarter and reported that it exited its Basel III parallel run effective with the second quarter of 2014. The filing also notes an SEC subpoena regarding securities lending activities and an estimated upper-end reasonably possible loss of approximately $130 million across matters where a range can be estimated.

    Jul 28, 2014
  39. 2014-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2014

    Northern Trust Corporation reported first-quarter 2014 net income of $181.4 million, or $0.75 per diluted share, up 11% from $164.0 million in the first quarter of 2013. Revenue was $1.04 billion, up 7%, with noninterest income of $794.8 million (76% of revenue) rising 6%, led by trust, investment and other servicing fees of $679.5 million, up 8%. Net interest income rose 9% to $245.7 million, although the net interest margin declined to 1.12% on a fully taxable equivalent basis from 1.15%. Noninterest expense increased 5% to $768.0 million, driven by compensation, outside services and equipment and software costs. Assets under custody reached $5,753.5 billion, up 3% from year-end 2013 and 15% from a year earlier, while assets under management reached $915.4 billion, up 3% sequentially and 13% year over year. Total assets were $103.8 billion at March 31, 2014, and deposits rose to $86.3 billion. The company repurchased 2,624,715 shares for $163.0 million during the quarter. Credit quality was stable, with a provision for credit losses of $3.0 million and nonperforming assets of $269.7 million. Tier 1 capital to risk-weighted assets was 13.0%, and common equity tier 1 was 12.8% under the new Basel III guidelines. The filing also discloses a $3.9 million other-than-temporary impairment charge on CRA eligible securities, and an April 2014 SEC subpoena related to securities lending activities.

    Apr 28, 2014
  40. 2013-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2013

    Northern Trust Corporation reported net income of $206.5 million, or $0.84 per diluted share, for the quarter ended September 30, 2013, up 15% from $178.8 million a year earlier. The results include a $32.6 million pre-tax gain on the sale of an office building, worth $0.08 per common share; excluding it, net income would have been $186.2 million and diluted EPS $0.76. For the nine months, net income was $561.6 million, up 8%, and diluted EPS was $2.29. Total noninterest income rose 11% to $810.2 million in the quarter, driven by trust, investment and other servicing fees of $648.0 million (up 8%) and foreign exchange trading income of $62.8 million (up 43%). The quarter's gains were offset by weaker net interest income, which fell 4% to $237.0 million as the net interest margin declined, and noninterest expense rose 6% to $740.7 million, mainly on outside services, equipment and software, and compensation. Assets under custody reached $5,237.0 billion (up 9% from December 31, 2012) and assets under management reached $846.2 billion (up 12%). Total assets were $95,969.5 million at September 30, 2013, and deposits declined to $78,161.7 million from $81,407.8 million at year-end 2012. Capital remained above well-capitalized levels, with a Tier 1 capital ratio of 13.6% and a Tier 1 leverage ratio of 8.3%. The company repurchased 1,715,921 shares in the quarter for $97.3 million, and 10.0 million additional shares remained authorized. Nonperforming loans and leases were $270.1 million, or 0.93% of total loans, and the provision for credit losses fell to $5.0 million from $10.0 million.

    Oct 25, 2013
  41. 2013-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2013

    Northern Trust Corporation reported net income of $191.1 million, or $0.78 per diluted share, for the quarter ended June 30, 2013, compared with $179.6 million, or $0.73 per share, in the prior-year quarter. Consolidated revenue was $1.02 billion, up $32.0 million, or 3%, driven by noninterest income of $800.4 million, up 9%, led by trust, investment and other servicing fees of $657.3 million (up 8%) and foreign exchange trading income of $71.3 million (up 20%). Net interest income fell 14% to $228.0 million on a fully taxable equivalent basis, as the net interest margin declined to 1.10% from 1.28%. Noninterest expense rose 2% to $729.7 million. For the six months ended June 30, 2013, net income was $355.1 million, or $1.45 per diluted share, versus $340.8 million, or $1.39, a year earlier. Assets under custody reached $4,991.5 billion and assets under management $803.0 billion at June 30, 2013. Total assets were $97.2 billion, and deposits declined to $76.5 billion from $81.4 billion at December 31, 2012. Capital ratios remained above well-capitalized levels, with a Tier 1 capital ratio of 13.1%. Nonperforming assets rose to $281.2 million from $275.1 million at year-end 2012. The filing also discloses a $12.4 million write-off of certain fee receivables in the six-month period, a subsequent event in which the company sold an office building interest for $64.1 million with an expected pre-tax gain of approximately $30 million in the third quarter, and ongoing securities lending and Visa-related litigation disclosures in which the company stated it could not reasonably estimate the eventual outcome of pending matters.

    Aug 2, 2013
  42. 2013-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2013

    Northern Trust Corporation reported net income of $164.0 million, or $0.67 per diluted common share, for the quarter ended March 31, 2013, compared with $161.2 million, or $0.66 per diluted share, in the prior-year quarter. Total noninterest income rose to $750.3 million from $709.0 million, led by trust, investment and other servicing fees of $630.7 million, up from $575.2 million. Net interest income fell to $226.1 million from $256.4 million, primarily due to a continued decline in the net interest margin to 1.15% on a fully taxable equivalent basis from 1.24%, and lower average earning assets. The current quarter includes a $12.4 million write-off of certain fee receivables tied to a correction of an accrual methodology used in prior years, plus restructuring and integration charges of $1.8 million, which together totaled $14.2 million ($0.04 per common share after tax). Assets under custody rose to $5.02 trillion and assets under management to $810.2 billion at March 31, 2013, up 5% and 7% from December 31, 2012. Total assets declined to $93.2 billion from $97.5 billion, largely reflecting a $5.8 billion... deposit decline, with total deposits falling to $75.8 billion from $81.4 billion. Capital ratios strengthened, with the Tier 1 capital ratio at 13.3% and the Tier 1 leverage ratio at 8.4%, versus 12.8% and 8.2% at year-end 2012. The company repurchased 1,403,366 shares for $74.5 million during the quarter, and the Board authorized a new buyback program of up to 12.0 million shares on April 16, 2013. Credit metrics were stable. The provision for credit losses was $5.0 million in both periods, net charge-offs were $8.7 million, and nonperforming loans and leases were $251.7 million, or 0.87% of total loans. The filing also discloses a $25.5 million unrealized loss in the securities portfolio and exposure of approximately $885 million to obligors in Ireland, with no exposure to Portugal, Italy, Greece, Spain or Cyprus. Management also disclosed that the Corporation estimated the upper end of the range of reasonably possible losses in pending matters at approximately $126 million in aggregate.

    Apr 30, 2013
  43. 2012-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2012

    Northern Trust Corporation reported net income of $178.8 million, or $0.73 per diluted share, for the third quarter of 2012, compared with $170.4 million, or $0.70 per diluted share, in the prior-year quarter. Consolidated revenue was $972.5 million, roughly flat versus $971.5 million a year earlier. Noninterest income rose 2% to $726.9 million, driven by trust, investment and other servicing fees of $601.9 million (up 8%), partially offset by a 49% decline in foreign exchange trading income to $44.0 million. Net interest income fell 4% to $245.6 million as the net interest margin declined to 1.21% on an FTE basis from 1.25%. Noninterest expense decreased 1% to $696.4 million, mainly on lower outside services. For the nine months ended September 30, 2012, net income was $519.6 million, or $2.12 per diluted share, up from $473.4 million, or $1.93 per diluted share. Assets under custody reached $4.76 trillion, up 14% from a year earlier, and assets under management reached $749.7 billion, up 16%. Total assets were $93.6 billion at September 30, 2012, down from $100.2 billion at December 31, 2011, and deposits declined to $76.9 billion from $82.7 billion. Capital and credit metrics remained solid. The Tier 1 capital ratio was 12.8% and the Tier 1 leverage ratio was 8.1%, both above regulatory requirements. Provision for credit losses fell to $10.0 million from $17.5 million, and nonperforming loans and leases were $269.0 million, or 0.91% of total loans and leases. The company repurchased 2,196,327 shares for $100.0 million in the first nine months of 2012.

    Oct 26, 2012
  44. 2012-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2012

    Northern Trust Corporation reported net income of $179.6 million, or $0.73 per diluted share, for the quarter ended June 30, 2012, compared with $152.0 million, or $0.62 per diluted share, in the second quarter of 2011. Revenue was $988.5 million, up $43.7 million, or 5%, driven by trust, investment and other servicing fees of $605.8 million (up 9%), partly offset by a 27% decline in foreign exchange trading income to $59.4 million. Net interest income rose 3% to $254.1 million, and the net interest margin (FTE basis) widened to 1.28% from 1.23%. Noninterest expense increased 2% to $717.3 million, reflecting 2011 acquisitions and higher equipment and software expense. Assets under custody reached $4.56 trillion, up 7% from December 31, 2011, and assets under management were $704.3 billion. Credit quality improved: the provision for credit losses fell to $5.0 million from $10.0 million, and nonperforming loans and leases decreased $88.2 million, or 27%, from the prior year quarter to $239.8 million at June 30, 2012. Residential real estate loans still represented 68% of total nonperforming loans. Capital ratios remained strong, with the Tier 1 capital ratio at 12.9% and the Tier 1 leverage ratio at 8.0%. Total assets declined to $94.5 billion at June 30, 2012 from $100.2 billion at year-end 2011, largely due to lower deposits. The filing also discloses ongoing litigation, including securities lending participant suits, a securities class action and a shareholder derivative suit, for which management cannot estimate a probable loss. Visa indemnification exposure is expected to be offset by the value of remaining Visa shares, following a July 13, 2012 settlement memorandum of understanding. The company repurchased 1,127,933 shares for $50.4 million in the first half of 2012, and may buy up to 9.2 million additional shares after June 30, 2012.

    Jul 27, 2012
  45. 2012-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2012

    Northern Trust Corporation reported net income of $161.2 million for the quarter ended March 31, 2012, up from $151.0 million a year earlier, with diluted earnings per share of $0.66 versus $0.61. Consolidated revenue rose 8% to $965.4 million, driven by a 12% increase in trust, investment and other servicing fees to $575.2 million, partly reflecting acquisitions completed in June and July of 2011. Foreign exchange trading income fell 27% to $61.9 million on reduced market volatility and client trading volumes. Noninterest expense rose 11% to $723.6 million, reflecting the 2011 acquisitions, higher equipment and software costs, and restructuring and integration charges of $3.9 million. Net interest income increased 9% to $256.4 million, although the net interest margin declined to 1.24% on a fully taxable equivalent basis from 1.32%. Average total assets grew 14% to $95.1 billion, while period-end total assets were $91.6 billion. Capital and credit metrics remained solid: the Tier 1 capital ratio was 12.4%, the total capital ratio 14.0%, and the Tier 1 leverage ratio 7.6%, all above the prior year-end levels except the Tier 1 ratio. The provision for credit losses fell to $5.0 million from $15.0 million, and nonperforming loans declined $63.0 million year over year. The company repurchased 328,687 shares for $14.5 million and disclosed that it is pursuing a securities lending-related litigation and a Securities Class Action with unassessed outcomes; the SEC staff informed the company in April 2012 that it does not intend to recommend enforcement action related to its securities lending program.

    Apr 30, 2012
  46. 2011-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2011

    Northern Trust Corporation's Form 10-Q for the quarter ended September 30, 2011 reports net income of $170.4 million for the third quarter of 2011, compared with $155.6 million a year earlier, and diluted earnings per share of $.70 versus $.64. For the nine months, net income was $473.4 million ($1.93 diluted per share) versus $512.4 million ($2.10) in the prior-year period. Total noninterest income rose to $714.7 million in the quarter, led by trust, investment and other servicing fees of $555.3 million, while noninterest expense increased to $701.2 million, up from $622.1 million, driven mainly by compensation and outside services. Net interest income grew to $256.8 million, although the filing states the net interest margin on an FTE basis declined to 1.25% from 1.44%. Balance sheet growth was substantial. Total assets reached $96.1 billion at September 30, 2011, up from $83.8 billion at December 31, 2010, with total deposits of $78.5 billion, compared with $64.2 billion at year-end 2010. Securities available for sale rose to $28.4 billion. Nonperforming assets declined to $337.9 million from $378.5 million at December 31, 2010, and the provision for credit losses fell to $17.5 million from $30.0 million in the prior-year quarter. The company also completed two acquisitions in 2011, Bank of Ireland Securities Services' fund administration and custody business and Omnium LLC, and issued $500 million of 3.375% senior notes due 2021. The filing notes that the company is cooperating with an SEC investigation related to its securities lending program and faces related lawsuits, and that it cannot reasonably estimate the outcome of these pending matters. It also reports that a 2010 securities class action and shareholder derivative suit remain pending. Tier 1 capital ratio for the consolidated company was 12.2% at September 30, 2011, versus 13.6% at December 31, 2010.

    Oct 28, 2011
  47. 2011-Q2

    Northern Trust Quarterly Report for Q2 Ended Jun 30, 2011

    Northern Trust Corporation reported net income of $152.0 million for the second quarter of 2011, compared with $199.6 million in the second quarter of 2010, and diluted earnings per share of $.62 versus $.82. Results were adversely affected by restructuring, acquisition, and integration related expenses of $22.6 million ($18.8 million after tax, or $.08 per share). Noninterest income fell to $698.7 million from $731.4 million, mainly because foreign exchange trading income dropped to $80.8 million from $115.4 million, while trust, investment and other servicing fees rose to $557.8 million from $543.5 million. Noninterest expense rose 15% to $705.3 million, and the provision for credit losses fell to $10.0 million from $50.0 million. Net interest income on a fully taxable equivalent basis increased to $256.6 million from $242.4 million, but the net interest margin compressed to 1.23% from 1.47%, which the filing attributes to balance sheet growth concentrated in lower-yielding Federal Reserve deposits and investment securities. Total assets grew to $97.4 billion at June 30, 2011 from $83.8 billion at December 31, 2010, and total deposits rose to $77.5 billion from $64.2 billion. Credit quality showed mixed trends: nonperforming assets declined to $359.1 million, but the filing recorded $22.0 million of credit-related other-than-temporary impairment on residential mortgage-backed securities for the six months ended June 30, 2011. Capital ratios remained above regulatory minimums, with Tier 1 capital at 12.8% and Tier 1 common equity at 12.3%. During the quarter the company repurchased 833,840 shares at a cost of $40.2 million. The company also completed the acquisition of the fund administration, investment operations outsourcing and custody business of Bank of Ireland Securities Services on June 1, 2011, for $84.4 million, and disclosed that it completed the acquisition of Omnium LLC, a hedge fund administrator, on July 29, 2011. The filing also discloses ongoing litigation, including securities lending-related lawsuits, an ERISA class action, and a securities class action, for which management states it cannot reasonably estimate potential losses.

    Jul 29, 2011
  48. 2011-Q1

    Northern Trust Quarterly Report for Q1 Ended Mar 31, 2011

    Northern Trust Corporation's Form 10-Q for the quarter ended March 31, 2011 reports net income of $151.0 million, or $.61 per diluted share, compared with $157.2 million, or $.64 per diluted share, in the first quarter of 2010. Excluding a Visa-related after-tax benefit of $6.4 million, operating earnings were $144.6 million, or $.59 per common share. Annualized return on average common equity was 8.94% and return on average assets was .74%, versus 9.88% and .85% a year earlier. Consolidated revenue was $897.9 million in both quarters, with noninterest income of $663.5 million and net interest income of $234.4 million. Noninterest expense rose $33.2 million, or 5%, to $652.9 million. Balance sheet growth was substantial. Total assets reached $92.7 billion at March 31, 2011, up from $83.8 billion at December 31, 2010, with total deposits rising to $71.1 billion from $64.2 billion. Total stockholders' equity was $6.9 billion. Credit quality was mixed: the provision for credit losses fell to $15.0 million from $40.0 million, but nonperforming assets increased to $381.4 million from $378.5 million at year-end 2010. The company recorded $5.1 million of credit-related other-than-temporary impairment on residential mortgage-backed securities. The net interest margin, on a fully taxable equivalent basis, declined to 1.32% from 1.44%. Business unit results were uneven. Corporate and Institutional Services net income fell 26% to $82.2 million, largely due to a 69% decline in securities lending revenue, while Personal Financial Services net income rose 30% to $63.1 million. The filing also notes pending litigation, including a securities class action, an ERISA class action, and a shareholder derivative suit, for which management states it cannot reasonably estimate potential losses. It also discloses an ongoing IRS dispute over structured leasing transactions and an agreement to acquire Bank of Ireland Securities Services.

    Apr 29, 2011
  49. 2010-Q3

    Northern Trust Quarterly Report for Q3 Ended Sep 30, 2010

    Northern Trust Corporation's Form 10-Q for the quarter ended September 30, 2010 reports net income of $155.6 million for the third quarter of 2010, down from $187.9 million a year earlier, with diluted earnings per share of $.64 versus $.77. For the nine months, net income was $512.4 million compared with $663.9 million in the prior-year period, and diluted EPS was $2.10 versus $2.34. The company describes the decline as reflecting a low interest rate environment that compressed net interest margin (1.44% for the quarter versus 1.54%), lower securities lending revenue, and lower foreign exchange trading income, partly offset by higher custody and fund administration fees. Provision for credit losses fell to $30.0 million from $60.0 million in the third quarter, while total noninterest expenses rose 4% to $622.1 million. Balance sheet and capital metrics remained strong. Total assets were $80.72 billion at September 30, 2010, and total stockholders' equity was $6.77 billion. The company reported a tier 1 capital ratio of 13.2% and a tier 1 common equity ratio of 12.7%, both above regulatory minimums. Nonperforming loans and leases were $327.3 million, or 1.17% of total loans and leases. Assets under custody reached $3.91 trillion and assets under management $657.2 billion, both up about 10% from June 30, 2010. The filing also discloses ongoing litigation, including a securities class action filed August 24, 2010, a shareholder derivative lawsuit filed September 7, 2010, and an ERISA class action, along with an SEC investigation related to the securities lending program. Management states that no material accruals have been recorded for pending litigation and that these matters are not expected to have a material adverse effect on financial position or liquidity, though they could affect results for a particular period.

    Oct 27, 2010
  50. 2010-Q2-A

    Northern Trust Quarterly Report (Amendment) for Q2 Ended Jun 30, 2010

    Northern Trust Corporation filed Amendment No. 1 to its Form 10-Q for the quarter ended June 30, 2010, originally filed July 30, 2010. The filing's stated sole purpose is to furnish Exhibit 101, the Interactive Data File in Extensible Business Reporting Language (XBRL), as required by Rule 405 of Regulation S-T. The XBRL exhibit covers the Consolidated Balance Sheet, Consolidated Statement of Income, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Stockholders' Equity, Consolidated Statement of Cash Flows, and Notes to Consolidated Financial Statements. The amendment states that no other changes were made to the Form 10-Q and that it does not reflect subsequent events or update any disclosures in the original report. This filing therefore contains no new operating results, financial statement amounts, or management commentary beyond the cover page, explanatory note, exhibit index, and signatures. The registrant reported 242,090,858 shares of $1.66 2/3 par value common stock outstanding as of June 30, 2010, and checked the large accelerated filer box. The filing is signed on August 26, 2010 by William L. Morrison, Executive Vice President and Chief Financial Officer, and Aileen B. Blake, Executive Vice President and Controller (Chief Accounting Officer).

    Aug 26, 2010