FORM |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(Zip Code) | |||||||||||||||||
(Address of principal executive offices) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Exhibit Number | Description | |||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
NORTHERN TRUST CORPORATION | |||||||||||||||||
(Registrant) | |||||||||||||||||
Dated: | April 20, 2021 | By: | /s/ Jason J. Tyler | ||||||||||||||
Jason J. Tyler | |||||||||||||||||
Executive Vice President and Chief Financial Officer |
NEWS RELEASE | ||||||||
www.northerntrust.com | ||||||||
Trust, Investment and Other Servicing Fees up 6% YoY | Common Equity Tier 1 Capital 12.0% | Return on Average Common Equity 13.7% | ||||||||||||||||||||||||
MICHAEL O’GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER: | ||
“Northern Trust’s asset and fee growth performed well as we continued to navigate through the operational and low interest rate challenges posed by the COVID-19 global pandemic. Revenue was consistent with the prior year, as declines in net interest income and trading related revenue were offset by a 6% increase in trust, investment and other servicing fees, primarily driven by organic growth. In support of our growth, expense increased 5%. Our strong capital base and liquidity position enabled us to support the needs of our clients, and this was demonstrated further during the quarter as we saw continued growth in client activity. The quarter also benefited from an improved outlook in projected economic conditions driving a release of reserves for credit losses, all of which combined to achieve 4% growth in net income and 9% growth in diluted earnings per common share versus last year and a return on average common equity of 13.7%. Performance reflected continued excellent work by Northern Trust employees worldwide to serve the needs of our clients. We continued to focus on enhancing efficiency and investing for future profitable growth.” | ||
FINANCIAL SUMMARY & KEY METRICS | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions except per share data) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,063.7 | $ | 1,026.1 | $ | 1,003.6 | 4 | % | 6 | % | ||||||||||
Other Noninterest Income | 179.6 | 161.4 | 176.0 | 11 | 2 | |||||||||||||||
Net Interest Income (FTE*) | 346.7 | 345.1 | 416.2 | — | (17) | |||||||||||||||
Total Revenue (FTE*) | $ | 1,590.0 | $ | 1,532.6 | $ | 1,595.8 | 4 | % | — | % | ||||||||||
Noninterest Expense | $ | 1,117.5 | $ | 1,151.0 | $ | 1,065.6 | (3) | % | 5 | % | ||||||||||
Provision for Credit Losses | (30.0) | (2.5) | 61.0 | N/M | N/M | |||||||||||||||
Provision for Income Taxes | 120.8 | 132.5 | 100.5 | (9) | 20 | |||||||||||||||
FTE Adjustment* | 6.6 | 10.7 | 8.1 | (38) | (18) | |||||||||||||||
Net Income | $ | 375.1 | $ | 240.9 | $ | 360.6 | 56 | % | 4 | % | ||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 355.2 | $ | 234.7 | $ | 326.2 | 51 | % | 9 | % | ||||||||||
Diluted Earnings per Common Share | $ | 1.70 | $ | 1.12 | $ | 1.55 | 51 | % | 9 | % | ||||||||||
Return on Average Common Equity | 13.7 | % | 8.8 | % | 13.4 | % | ||||||||||||||
Return on Average Assets | 0.99 | % | 0.67 | % | 1.17 | % | ||||||||||||||
Average Assets | $ | 153,255.8 | $ | 143,262.0 | $ | 124,170.5 | 7 | % | 23 | % |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
CLIENT ASSETS | ||||||||||||||||||||
Assets under custody/administration (AUC/A) and assets under management are a driver of the Corporation’s trust, investment and other servicing fees, the largest component of noninterest income. | ||||||||||||||||||||
As of | % Change March 31, 2021 vs. | |||||||||||||||||||
($ In Billions) | March 31, 2021* | December 31, 2020 | March 31, 2020 | December 31, 2020 | March 31, 2020 | |||||||||||||||
Assets Under Custody/Administration | ||||||||||||||||||||
Corporate & Institutional Services (C&IS) | $ | 13,876.3 | $ | 13,653.1 | $ | 10,236.5 | 2 | % | 36 | % | ||||||||||
Wealth Management | 918.8 | 879.4 | 640.1 | 4 | 44 | |||||||||||||||
Total Assets Under Custody/Administration | $ | 14,795.1 | $ | 14,532.5 | $ | 10,876.6 | 2 | % | 36 | % | ||||||||||
Assets Under Custody(1) | ||||||||||||||||||||
Corporate & Institutional Services | $ | 10,618.0 | $ | 10,387.7 | $ | 7,620.8 | 2 | % | 39 | % | ||||||||||
Wealth Management | 916.2 | 875.1 | 633.9 | 5 | 45 | |||||||||||||||
Total Assets Under Custody | $ | 11,534.2 | $ | 11,262.8 | $ | 8,254.7 | 2 | % | 40 | % | ||||||||||
Assets Under Management | ||||||||||||||||||||
Corporate & Institutional Services | $ | 1,093.7 | $ | 1,057.5 | $ | 842.6 | 3 | % | 30 | % | ||||||||||
Wealth Management | 355.4 | 347.8 | 276.7 | 2 | 28 | |||||||||||||||
Total Assets Under Management | $ | 1,449.1 | $ | 1,405.3 | $ | 1,119.3 | 3 | % | 29 | % |
TRUST, INVESTMENT AND OTHER SERVICING FEES | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
C&IS Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Custody and Fund Administration | $ | 446.0 | $ | 419.9 | $ | 394.9 | 6 | % | 13 | % | ||||||||||
Investment Management | 115.9 | 125.1 | 120.8 | (7) | (4) | |||||||||||||||
Securities Lending | 18.2 | 17.6 | 23.4 | 4 | (22) | |||||||||||||||
Other | 40.4 | 33.5 | 35.3 | 21 | 14 | |||||||||||||||
Total C&IS | $ | 620.5 | $ | 596.1 | $ | 574.4 | 4 | % | 8 | % | ||||||||||
Wealth Management Trust, Investment and Other Servicing Fees | ||||||||||||||||||||
Central | $ | 164.2 | $ | 154.7 | $ | 159.4 | 6 | % | 3 | % | ||||||||||
East | 119.0 | 115.5 | 111.5 | 3 | 7 | |||||||||||||||
West | 90.8 | 86.0 | 87.0 | 5 | 4 | |||||||||||||||
Global Family Office (GFO) | 69.2 | 73.8 | 71.3 | (6) | (3) | |||||||||||||||
Total Wealth Management | $ | 443.2 | $ | 430.0 | $ | 429.2 | 3 | % | 3 | % | ||||||||||
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 1,063.7 | $ | 1,026.1 | $ | 1,003.6 | 4 | % | 6 | % |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
OTHER NONINTEREST INCOME | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
Other Noninterest Income | ||||||||||||||||||||
Foreign Exchange Trading Income | $ | 78.7 | $ | 68.6 | $ | 88.9 | 15 | % | (12) | % | ||||||||||
Treasury Management Fees | 11.2 | 11.4 | 11.0 | (2) | 3 | |||||||||||||||
Security Commissions and Trading Income | 34.8 | 32.3 | 41.7 | 8 | (17) | |||||||||||||||
Other Operating Income | 54.9 | 49.6 | 34.4 | 11 | 60 | |||||||||||||||
Investment Security Gains (Losses), net | — | (0.5) | — | N/M | N/M | |||||||||||||||
Total Other Noninterest Income | $ | 179.6 | $ | 161.4 | $ | 176.0 | 11 | % | 2 | % |
NET INTEREST INCOME | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income (FTE*) | $ | 356.5 | $ | 363.3 | $ | 537.3 | (2) | % | (34) | % | ||||||||||
Interest Expense | 9.8 | 18.2 | 121.1 | (46) | (92) | |||||||||||||||
Net Interest Income (FTE*) | $ | 346.7 | $ | 345.1 | $ | 416.2 | — | % | (17) | % | ||||||||||
Average Earning Assets | $ | 140,589 | $ | 131,235 | $ | 110,611 | 7 | % | 27 | % | ||||||||||
Net Interest Margin (FTE*) | 1.00 | % | 1.05 | % | 1.51 | % |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
PROVISION FOR CREDIT LOSSES | ||||||||||||||||||||
As of and for the three-months ended, | % Change March 31, 2021 vs. | |||||||||||||||||||
($ In Millions) | March 31, 2021 | December 31, 2020 | March 31, 2020 | December 31, 2020 | March 31, 2020 | |||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Beginning Allowance for Credit Losses | $ | 259.9 | $ | 267.9 | $ | 124.4 | (3) | % | 109 | % | ||||||||||
Cumulative Effect Adjustment | — | — | 13.7 | — | (100) | |||||||||||||||
Provision for Credit Losses | (30.0) | (2.5) | 61.0 | N/M | N/M | |||||||||||||||
Net Recoveries (Charge-Offs) | 0.9 | (5.5) | (0.7) | N/M | N/M | |||||||||||||||
Ending Allowance for Credit Losses | $ | 230.8 | $ | 259.9 | $ | 198.4 | (11) | % | 16 | % | ||||||||||
Allowance assigned to: | ||||||||||||||||||||
Loans and Leases | $ | 165.4 | $ | 190.7 | $ | 147.2 | (13) | % | 12 | % | ||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 55.1 | 61.1 | 40.4 | (10) | 37 | |||||||||||||||
Debt Securities and Other Financial Assets | 10.3 | 8.1 | 10.8 | 28 | (4) | |||||||||||||||
Ending Allowance for Credit Losses | $ | 230.8 | $ | 259.9 | $ | 198.4 | (11) | % | 16 | % |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
NONINTEREST EXPENSE | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | $ | 518.5 | $ | 525.3 | $ | 499.8 | (1) | % | 4 | % | ||||||||||
Employee Benefits | 103.4 | 101.9 | 97.9 | 1 | 6 | |||||||||||||||
Outside Services | 196.4 | 208.1 | 192.8 | (6) | 2 | |||||||||||||||
Equipment and Software | 176.7 | 176.4 | 162.2 | — | 9 | |||||||||||||||
Occupancy | 50.8 | 67.2 | 51.1 | (24) | (1) | |||||||||||||||
Other Operating Expense | 71.7 | 72.1 | 61.8 | (1) | 16 | |||||||||||||||
Total Noninterest Expense | $ | 1,117.5 | $ | 1,151.0 | $ | 1,065.6 | (3) | % | 5 | % | ||||||||||
End of Period Full-Time Equivalent Staff | 20,600 | 20,900 | 20,000 | (1) | % | 3 | % |
PROVISION FOR INCOME TAX | ||||||||||||||||||||
% Change Q1 2021 vs. | ||||||||||||||||||||
($ In Millions) | Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | |||||||||||||||
Net Income | ||||||||||||||||||||
Income before Income Taxes | $ | 495.9 | $ | 373.4 | $ | 461.1 | 33 | % | 8 | % | ||||||||||
Provision for Income Taxes | 120.8 | 132.5 | 100.5 | (9) | 20 | |||||||||||||||
Net Income | $ | 375.1 | $ | 240.9 | $ | 360.6 | 56 | % | 4 | % | ||||||||||
Effective Tax Rate | 24.4 | % | 35.5 | % | 21.8 | % | (1,110) bps | 260 bps |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
CAPITAL ACTIONS |
CAPITAL RATIOS |
March 31, 2021* | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Capital Ratios - Northern Trust Corporation | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | |||||||||||||||||||||
Common Equity Tier 1 Capital | 12.0 | % | 12.8 | % | 12.8 | % | 13.4 | % | 11.7 | % | 12.9 | % | N/A | 4.5 | % | ||||||||||||||
Tier 1 Capital | 13.0 | 14.0 | 13.9 | 14.5 | 12.8 | 14.1 | 6.0 | 6.0 | |||||||||||||||||||||
Total Capital | 14.5 | 15.2 | 15.6 | 15.9 | 14.5 | 15.7 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 6.9 | 6.9 | 7.6 | 7.6 | 8.1 | 8.1 | N/A | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 8.1 | N/A | 8.6 | N/A | 7.2 | N/A | 3.0 |
March 31, 2021* | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Capital Ratios - The Northern Trust Company | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Well-Capitalized Ratios | Minimum Capital Ratios | |||||||||||||||||||||
Common Equity Tier 1 Capital | 12.1 | % | 13.2 | % | 13.0 | % | 13.8 | % | 12.0 | % | 13.5 | % | 6.5 | % | 4.5 | % | |||||||||||||
Tier 1 Capital | 12.1 | 13.2 | 13.0 | 13.8 | 12.0 | 13.5 | 8.0 | 6.0 | |||||||||||||||||||||
Total Capital | 13.4 | 14.3 | 14.5 | 15.0 | 13.6 | 14.9 | 10.0 | 8.0 | |||||||||||||||||||||
Tier 1 Leverage | 6.4 | 6.4 | 7.0 | 7.0 | 7.6 | 7.6 | 5.0 | 4.0 | |||||||||||||||||||||
Supplementary Leverage | N/A | 7.4 | N/A | 7.7 | N/A | 6.8 | 3.0 | 3.0 |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
RECONCILIATION TO FULLY TAXABLE EQUIVALENT |
QUARTERS | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
($ in Millions) | FIRST | FOURTH | THIRD | SECOND | FIRST | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income - GAAP | $ | 349.9 | $ | 352.6 | $ | 355.4 | $ | 406.3 | $ | 529.2 | ||||||||||
Add: FTE Adjustment | 6.6 | 10.7 | 7.9 | 7.7 | 8.1 | |||||||||||||||
Interest Income (FTE) - Non-GAAP | $ | 356.5 | $ | 363.3 | $ | 363.3 | $ | 414.0 | $ | 537.3 | ||||||||||
Net Interest Income - GAAP | $ | 340.1 | $ | 334.4 | $ | 328.6 | $ | 372.1 | $ | 408.1 | ||||||||||
Add: FTE Adjustment | 6.6 | 10.7 | 7.9 | 7.7 | 8.1 | |||||||||||||||
Net Interest Income (FTE) - Non-GAAP | $ | 346.7 | $ | 345.1 | $ | 336.5 | $ | 379.8 | $ | 416.2 | ||||||||||
Net Interest Margin - GAAP | 0.98 | % | 1.01 | % | 1.01 | % | 1.20 | % | 1.48 | % | ||||||||||
Net Interest Margin (FTE) - Non-GAAP | 1.00 | % | 1.05 | % | 1.03 | % | 1.22 | % | 1.51 | % | ||||||||||
Total Revenue | ||||||||||||||||||||
Total Revenue - GAAP | $ | 1,583.4 | $ | 1,521.9 | $ | 1,485.1 | $ | 1,506.1 | $ | 1,587.7 | ||||||||||
Add: FTE Adjustment | 6.6 | 10.7 | 7.9 | 7.7 | 8.1 | |||||||||||||||
Total Revenue (FTE) - Non-GAAP | $ | 1,590.0 | $ | 1,532.6 | $ | 1,493.0 | $ | 1,513.8 | $ | 1,595.8 |
NORTHERN TRUST CORPORATION FIRST QUARTER 2021 RESULTS |
FORWARD LOOKING STATEMENTS |
WEBCAST OF FIRST QUARTER EARNINGS CONFERENCE CALL |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
STATEMENT OF INCOME DATA | % Change(1) | |||||||||||||||||||
($ In Millions Except Per Share Data) | Q1 2021 vs. | |||||||||||||||||||
Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,063.7 | $ | 1,026.1 | $ | 1,003.6 | 4 | % | 6 | % | ||||||||||
Foreign Exchange Trading Income | 78.7 | 68.6 | 88.9 | 15 | (12) | |||||||||||||||
Treasury Management Fees | 11.2 | 11.4 | 11.0 | (2) | 3 | |||||||||||||||
Security Commissions and Trading Income | 34.8 | 32.3 | 41.7 | 8 | (17) | |||||||||||||||
Other Operating Income | 54.9 | 49.6 | 34.4 | 11 | 60 | |||||||||||||||
Investment Security Gains (Losses), net | — | (0.5) | — | N/M | N/M | |||||||||||||||
Total Noninterest Income | 1,243.3 | 1,187.5 | 1,179.6 | 5 | 5 | |||||||||||||||
Net Interest Income | ||||||||||||||||||||
Interest Income | 349.9 | 352.6 | 529.2 | (1) | (34) | |||||||||||||||
Interest Expense | 9.8 | 18.2 | 121.1 | (46) | (92) | |||||||||||||||
Net Interest Income | 340.1 | 334.4 | 408.1 | 2 | (17) | |||||||||||||||
Total Revenue | 1,583.4 | 1,521.9 | 1,587.7 | 4 | — | |||||||||||||||
Provision for Credit Losses | (30.0) | (2.5) | 61.0 | N/M | N/M | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation | 518.5 | 525.3 | 499.8 | (1) | 4 | |||||||||||||||
Employee Benefits | 103.4 | 101.9 | 97.9 | 1 | 6 | |||||||||||||||
Outside Services | 196.4 | 208.1 | 192.8 | (6) | 2 | |||||||||||||||
Equipment and Software | 176.7 | 176.4 | 162.2 | — | 9 | |||||||||||||||
Occupancy | 50.8 | 67.2 | 51.1 | (24) | (1) | |||||||||||||||
Other Operating Expense | 71.7 | 72.1 | 61.8 | (1) | 16 | |||||||||||||||
Total Noninterest Expense | 1,117.5 | 1,151.0 | 1,065.6 | (3) | 5 | |||||||||||||||
Income before Income Taxes | 495.9 | 373.4 | 461.1 | 33 | 8 | |||||||||||||||
Provision for Income Taxes | 120.8 | 132.5 | 100.5 | (9) | 20 | |||||||||||||||
NET INCOME | $ | 375.1 | $ | 240.9 | $ | 360.6 | 56 | % | 4 | % | ||||||||||
Preferred Stock Dividends(2) | 16.2 | 4.7 | 30.5 | N/M | (47) | |||||||||||||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 358.9 | $ | 236.2 | $ | 330.1 | 52 | % | 9 | % | ||||||||||
Earnings Allocated to Participating Securities | 3.7 | 1.5 | 3.9 | 142 | (7) | |||||||||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 355.2 | $ | 234.7 | $ | 326.2 | 51 | % | 9 | % | ||||||||||
Per Common Share | ||||||||||||||||||||
Net Income | ||||||||||||||||||||
Basic | $ | 1.71 | $ | 1.13 | $ | 1.56 | 51 | % | 9 | % | ||||||||||
Diluted | 1.70 | 1.12 | 1.55 | 51 | 9 | |||||||||||||||
Average Common Equity | $ | 10,652.5 | $ | 10,648.2 | $ | 9,897.9 | — | % | 8 | % | ||||||||||
Return on Average Common Equity | 13.7 | % | 8.8 | % | 13.4 | % | ||||||||||||||
Return on Average Assets | 0.99 | % | 0.67 | % | 1.17 | % | ||||||||||||||
Cash Dividends Declared per Common Share | $ | 0.70 | $ | 0.70 | $ | 0.70 | — | % | — | % | ||||||||||
Average Common Shares Outstanding (000s) | ||||||||||||||||||||
Basic | 208,113 | 208,225 | 208,881 | |||||||||||||||||
Diluted | 208,946 | 208,962 | 209,817 | |||||||||||||||||
Common Shares Outstanding (EOP) (000s) | 208,140 | 208,289 | 208,052 |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
March 31, 2021 vs. | ||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | December 31, 2020 | March 31, 2020 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other(2) | $ | 46,850.8 | $ | 55,443.1 | $ | 44,636.6 | (15) | % | 5 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(3) | 7,349.9 | 6,654.8 | 8,282.8 | 10 | (11) | |||||||||||||||
Federal Funds Sold | 0.1 | — | — | N/M | N/M | |||||||||||||||
Securities Purchased under Agreements to Resell | 1,109.3 | 1,596.5 | 998.2 | (31) | 11 | |||||||||||||||
Securities | ||||||||||||||||||||
U.S. Government | 2,757.5 | 2,889.9 | 4,688.9 | (5) | (41) | |||||||||||||||
Obligations of States and Political Subdivisions | 3,280.7 | 3,085.7 | 1,783.1 | 6 | 84 | |||||||||||||||
Government Sponsored Agency | 24,704.3 | 24,959.6 | 23,873.9 | (1) | 3 | |||||||||||||||
Other(4) | 30,639.7 | 30,142.3 | 23,221.5 | 2 | 32 | |||||||||||||||
Total Securities | 61,382.2 | 61,077.5 | 53,567.4 | — | 15 | |||||||||||||||
Loans and Leases | 34,344.3 | 33,759.7 | 37,837.7 | 2 | (9) | |||||||||||||||
Total Earning Assets | 151,036.6 | 158,531.6 | 145,322.7 | (5) | 4 | |||||||||||||||
Allowance for Credit Losses | (175.7) | (198.8) | (157.8) | (12) | 11 | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(5) | 2,447.9 | 2,177.8 | 2,954.2 | 12 | (17) | |||||||||||||||
Buildings and Equipment | 496.7 | 514.9 | 490.2 | (4) | 1 | |||||||||||||||
Client Security Settlement Receivables | 1,970.2 | 1,160.2 | 2,116.9 | 70 | (7) | |||||||||||||||
Goodwill | 704.0 | 707.2 | 689.3 | — | 2 | |||||||||||||||
Other Assets | 7,444.4 | 7,111.0 | 10,293.7 | 5 | (28) | |||||||||||||||
Total Assets | $ | 163,924.1 | $ | 170,003.9 | $ | 161,709.2 | (4) | % | 1 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 27,322.9 | $ | 28,631.8 | $ | 27,241.0 | (5) | % | — | % | ||||||||||
Savings Certificates and Other Time | 909.7 | 937.1 | 918.7 | (3) | (1) | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 63,746.5 | 71,198.4 | 69,779.1 | (10) | (9) | |||||||||||||||
Total Interest-Bearing Deposits | 91,979.1 | 100,767.3 | 97,938.8 | (9) | (6) | |||||||||||||||
Federal Funds Purchased | 0.2 | 260.2 | 4,370.6 | (100) | (100) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 95.6 | 39.8 | 34.1 | 140 | 180 | |||||||||||||||
Other Borrowings | 5,428.4 | 4,011.5 | 5,955.9 | 35 | (9) | |||||||||||||||
Senior Notes | 2,991.2 | 3,122.4 | 2,668.5 | (4) | 12 | |||||||||||||||
Long-Term Debt | 1,165.9 | 1,189.3 | 1,196.0 | (2) | (3) | |||||||||||||||
Floating Rate Capital Debt | 277.8 | 277.8 | 277.7 | — | — | |||||||||||||||
Total Interest-Related Funds | 101,938.2 | 109,668.3 | 112,441.6 | (7) | (9) | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 45,478.3 | 43,110.7 | 33,552.4 | 5 | 36 | |||||||||||||||
Other Liabilities | 5,049.7 | 5,536.6 | 4,835.5 | (9) | 4 | |||||||||||||||
Total Liabilities | 152,466.2 | 158,315.6 | 150,829.5 | (4) | 1 | |||||||||||||||
Common Equity | 10,573.0 | 10,803.4 | 9,994.8 | (2) | 6 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 884.9 | — | — | |||||||||||||||
Total Equity | 11,457.9 | 11,688.3 | 10,879.7 | (2) | 5 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 163,924.1 | $ | 170,003.9 | $ | 161,709.2 | (4) | % | 1 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
AVERAGE BALANCE SHEET | ||||||||||||||||||||
($ In Millions) | % Change(1) | |||||||||||||||||||
Q1 2021 vs. | ||||||||||||||||||||
Q1 2021 | Q4 2020 | Q1 2020 | Q4 2020 | Q1 2020 | ||||||||||||||||
Assets | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other(2) | $ | 37,140.3 | $ | 29,896.2 | $ | 19,826.2 | 24 | % | 87 | % | ||||||||||
Interest-Bearing Due from and Deposits with Banks(3) | 6,464.3 | 5,449.0 | 5,838.1 | 19 | 11 | |||||||||||||||
Federal Funds Sold | 0.3 | 0.6 | 5.9 | (49) | (95) | |||||||||||||||
Securities Purchased under Agreements to Resell | 1,551.2 | 1,565.8 | 661.7 | (1) | 134 | |||||||||||||||
Securities | ||||||||||||||||||||
U.S. Government | 2,876.9 | 3,630.8 | 4,639.2 | (21) | (38) | |||||||||||||||
Obligations of States and Political Subdivisions | 3,199.1 | 2,890.6 | 1,723.4 | 11 | 86 | |||||||||||||||
Government Sponsored Agency | 24,845.9 | 25,076.9 | 23,365.9 | (1) | 6 | |||||||||||||||
Other(4) | 30,309.5 | 29,629.1 | 22,234.7 | 2 | 36 | |||||||||||||||
Total Securities | 61,231.4 | 61,227.4 | 51,963.2 | — | 18 | |||||||||||||||
Loans and Leases | 34,201.1 | 33,096.1 | 32,316.2 | 3 | 6 | |||||||||||||||
Total Earning Assets | 140,588.6 | 131,235.1 | 110,611.3 | 7 | 27 | |||||||||||||||
Allowance for Credit Losses | (198.7) | (222.7) | (109.9) | (11) | 81 | |||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(5) | 2,614.5 | 2,434.5 | 2,723.0 | 7 | (4) | |||||||||||||||
Buildings and Equipment | 509.0 | 516.5 | 501.4 | (1) | 2 | |||||||||||||||
Client Security Settlement Receivables | 1,668.7 | 1,447.6 | 1,531.0 | 15 | 9 | |||||||||||||||
Goodwill | 706.6 | 701.6 | 692.6 | 1 | 2 | |||||||||||||||
Other Assets | 7,367.1 | 7,149.4 | 8,221.1 | 3 | (10) | |||||||||||||||
Total Assets | $ | 153,255.8 | $ | 143,262.0 | $ | 124,170.5 | 7 | % | 23 | % | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 26,735.9 | $ | 24,984.3 | $ | 20,251.2 | 7 | % | 32 | % | ||||||||||
Savings Certificates and Other Time | 923.6 | 1,198.3 | 959.8 | (23) | (4) | |||||||||||||||
Non-U.S. Offices - Interest-Bearing | 68,305.6 | 61,943.6 | 54,543.3 | 10 | 25 | |||||||||||||||
Total Interest-Bearing Deposits | 95,965.1 | 88,126.2 | 75,754.3 | 9 | 27 | |||||||||||||||
Federal Funds Purchased | 405.8 | 562.7 | 1,916.5 | (28) | (79) | |||||||||||||||
Securities Sold under Agreements to Repurchase | 89.8 | 183.6 | 334.3 | (51) | (73) | |||||||||||||||
Other Borrowings | 4,681.4 | 5,984.4 | 7,450.6 | (22) | (37) | |||||||||||||||
Senior Notes | 3,057.8 | 3,315.4 | 2,615.1 | (8) | 17 | |||||||||||||||
Long-Term Debt | 1,178.7 | 1,190.9 | 1,168.7 | (1) | 1 | |||||||||||||||
Floating Rate Capital Debt | 277.8 | 277.8 | 277.7 | — | — | |||||||||||||||
Total Interest-Related Funds | 105,656.4 | 99,641.0 | 89,517.2 | 6 | 18 | |||||||||||||||
Demand and Other Noninterest-Bearing Deposits | 30,451.3 | 26,997.5 | 19,331.5 | 13 | 58 | |||||||||||||||
Other Liabilities | 5,610.7 | 5,090.4 | 4,534.8 | 10 | 24 | |||||||||||||||
Total Liabilities | 141,718.4 | 131,728.9 | 113,383.5 | 8 | 25 | |||||||||||||||
Common Equity | 10,652.5 | 10,648.2 | 9,897.9 | — | 8 | |||||||||||||||
Preferred Equity | 884.9 | 884.9 | 889.1 | — | — | |||||||||||||||
Total Equity | 11,537.4 | 11,533.1 | 10,787.0 | — | 7 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 153,255.8 | $ | 143,262.0 | $ | 124,170.5 | 7 | % | 23 | % |
NORTHERN TRUST CORPORATION | ||
(Supplemental Consolidated Financial Information) |
QUARTERLY TREND DATA | QUARTERS | ||||||||||||||||||||||||||||
($ In Millions Except Per Share Data) | 2021 | 2020 | |||||||||||||||||||||||||||
FIRST | FOURTH | THIRD | SECOND | FIRST | |||||||||||||||||||||||||
Net Income Summary | |||||||||||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,063.7 | $ | 1,026.1 | $ | 1,003.8 | $ | 961.5 | $ | 1,003.6 | |||||||||||||||||||
Other Noninterest Income | 179.6 | 161.4 | 152.7 | 172.5 | 176.0 | ||||||||||||||||||||||||
Net Interest Income | 340.1 | 334.4 | 328.6 | 372.1 | 408.1 | ||||||||||||||||||||||||
Total Revenue | 1,583.4 | 1,521.9 | 1,485.1 | 1,506.1 | 1,587.7 | ||||||||||||||||||||||||
Provision for Credit Losses | (30.0) | (2.5) | 0.5 | 66.0 | 61.0 | ||||||||||||||||||||||||
Noninterest Expense | 1,117.5 | 1,151.0 | 1,094.7 | 1,036.9 | 1,065.6 | ||||||||||||||||||||||||
Income before Income Taxes | 495.9 | 373.4 | 389.9 | 403.2 | 461.1 | ||||||||||||||||||||||||
Provision for Income Taxes | 120.8 | 132.5 | 95.4 | 89.9 | 100.5 | ||||||||||||||||||||||||
Net Income | $ | 375.1 | $ | 240.9 | $ | 294.5 | $ | 313.3 | $ | 360.6 | |||||||||||||||||||
Per Common Share | |||||||||||||||||||||||||||||
Net Income - Basic | $ | 1.71 | $ | 1.13 | $ | 1.32 | $ | 1.47 | $ | 1.56 | |||||||||||||||||||
- Diluted | 1.70 | 1.12 | 1.32 | 1.46 | 1.55 | ||||||||||||||||||||||||
Cash Dividends Declared per Common Share | 0.70 | 0.70 | 0.70 | 0.70 | 0.70 | ||||||||||||||||||||||||
Book Value (EOP) | 50.80 | 51.87 | 51.38 | 50.45 | 48.04 | ||||||||||||||||||||||||
Market Value (EOP) | 105.11 | 93.14 | 77.97 | 79.34 | 75.46 | ||||||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||
Return on Average Common Equity | 13.7 | % | 8.8 | % | 10.5 | % | 12.2 | % | 13.4 | % | |||||||||||||||||||
Return on Average Assets | 0.99 | 0.67 | 0.83 | 0.91 | 1.17 | ||||||||||||||||||||||||
Net Interest Margin (GAAP) | 0.98 | 1.01 | 1.01 | 1.20 | 1.48 | ||||||||||||||||||||||||
Net Interest Margin (FTE*) | 1.00 | 1.05 | 1.03 | 1.22 | 1.51 | ||||||||||||||||||||||||
Assets Under Custody / Administration ($ in Billions) - EOP | |||||||||||||||||||||||||||||
Corporate & Institutional Services | $ | 13,876.3 | $ | 13,653.1 | $ | 12,263.2 | $ | 11,347.1 | $ | 10,236.5 | |||||||||||||||||||
Wealth Management | 918.8 | 879.4 | 814.4 | 751.2 | 640.1 | ||||||||||||||||||||||||
Total Assets Under Custody / Administration | $ | 14,795.1 | $ | 14,532.5 | $ | 13,077.6 | $ | 12,098.3 | $ | 10,876.6 | |||||||||||||||||||
Assets Under Custody ($ In Billions) - EOP | |||||||||||||||||||||||||||||
Corporate & Institutional Services | $ | 10,618.0 | $ | 10,387.7 | $ | 9,312.2 | $ | 8,542.7 | $ | 7,620.8 | |||||||||||||||||||
Wealth Management | 916.2 | 875.1 | 810.4 | 747.9 | 633.9 | ||||||||||||||||||||||||
Total Assets Under Custody | $ | 11,534.2 | $ | 11,262.8 | $ | 10,122.6 | $ | 9,290.6 | $ | 8,254.7 | |||||||||||||||||||
Assets Under Management ($ In Billions) - EOP | |||||||||||||||||||||||||||||
Corporate & Institutional Services | $ | 1,093.7 | $ | 1,057.5 | $ | 993.2 | $ | 954.0 | $ | 842.6 | |||||||||||||||||||
Wealth Management | 355.4 | 347.8 | 318.5 | 303.8 | 276.7 | ||||||||||||||||||||||||
Total Assets Under Management | $ | 1,449.1 | $ | 1,405.3 | $ | 1,311.7 | $ | 1,257.8 | $ | 1,119.3 | |||||||||||||||||||
Asset Quality ($ In Millions) - EOP | |||||||||||||||||||||||||||||
Nonaccrual Loans and Leases | $ | 123.8 | $ | 131.7 | $ | 98.0 | $ | 98.5 | $ | 103.9 | |||||||||||||||||||
Other Real Estate Owned (OREO) | 1.5 | 0.7 | 0.9 | 0.9 | 1.6 | ||||||||||||||||||||||||
Total Nonaccrual Assets | $ | 125.3 | $ | 132.4 | $ | 98.9 | $ | 99.4 | $ | 105.5 | |||||||||||||||||||
Nonaccrual Assets / Loans and Leases and OREO | 0.36 | % | 0.39 | % | 0.30 | % | 0.29 | % | 0.28 | % | |||||||||||||||||||
Gross Charge-offs | $ | (0.4) | $ | (6.7) | $ | (0.8) | $ | (0.4) | $ | (1.8) | |||||||||||||||||||
Gross Recoveries | 1.3 | 1.2 | 1.2 | 3.0 | 1.1 | ||||||||||||||||||||||||
Net Recoveries (Charge-offs) | $ | 0.9 | $ | (5.5) | $ | 0.4 | $ | 2.6 | $ | (0.7) | |||||||||||||||||||
Annualized Net Recoveries (Charge-offs) to Avg Loans and Leases | 0.01 | % | (0.07) | % | — | % | 0.03 | % | (0.01) | % | |||||||||||||||||||
Allowance for Credit Losses Assigned to: | |||||||||||||||||||||||||||||
Loans and Leases | $ | 165.4 | $ | 190.7 | $ | 215.4 | $ | 210.2 | $ | 147.2 | |||||||||||||||||||
Undrawn Loan Commitments and Standby Letters of Credit | 55.1 | 61.1 | 44.9 | 49.0 | 40.4 | ||||||||||||||||||||||||
Debt Securities and Other Financial Assets | 10.3 | 8.1 | 7.6 | 7.8 | 10.8 | ||||||||||||||||||||||||
Loans and Leases Allowance / Nonaccrual Loans and Leases | 1.3 | x | 1.4 | x | 2.2 | x | 2.1 | x | 1.4 | x |
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