NORTHERN TRUST CORPORATION REPORTS FIRST QUARTERNET INCOME OF $392.0 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $1.90 (Form 8-K)

NORTHERN TRUST CORPORATION REPORTS FIRST QUARTER
NET INCOME OF $392.0 MILLION, EARNINGS PER DILUTED COMMON SHARE OF $1.90

CHICAGO, APRIL 22, 2025 - Northern Trust Corporation today reported first quarter net income per diluted common share of $1.90, compared to $2.26 in the fourth quarter of 2024 and $0.96 in the first quarter of 2024. Net income was $392.0 million, compared to $455.4 million in the prior quarter and $214.7 million in the prior-year quarter.

MICHAEL O'GRADY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER:
"Northern Trust generated its third consecutive quarter of positive operating leverage in the first quarter of 2025 driven by mid-single digit growth in both trust fees and net interest income relative to the prior year, while effectively managing expenses. EPS excluding prior-year notables increased 13% and we generated a return on common equity of 13%, both while boosting capital levels meaningfully and returning $435 million to shareholders. These results demonstrate the strength of our One Northern Trust strategy and the resilience of our business model. As we enter the second quarter, we remain well-positioned to navigate a wide range of evolving macroeconomic and market scenarios, allowing us to act as a source of strength for clients, while pressing ahead with our strategic priorities."

FINANCIAL SUMMARY & KEY METRICS
															% Change Q1 2025 vs.
($ In Millions except per share data)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Trust, Investment and Other Servicing Fees			$	1,213.8		$	1,222.2		$	1,142.9					(1)		%	6		%
Other Noninterest Income (Loss)			158.1			173.6			(24.2)						(9)			N/M
Net Interest Income (FTE*)			573.7			574.3			535.4						-			7
Total Revenue (FTE*)			$	1,945.6		$	1,970.1		$	1,654.1					(1)		%	18		%
Noninterest Expense			$	1,417.6		$	1,375.9		$	1,364.7					3		%	4		%
Provision for Credit Losses			1.0			(10.5)			(8.5)						N/M			N/M
Provision for Income Taxes			129.4			138.8			75.9						(7)			71
FTE Adjustment*			5.6			10.5			7.3						(47)			(24)
Net Income			$	392.0		$	455.4		$	214.7					(14)		%	83		%
Earnings Allocated to Common and Potential Common Shares			$	372.2		$	447.0		$	196.1					(17)		%	90		%
Diluted Earnings per Common Share			$	1.90		$	2.26		$	0.96					(16)			99
Return on Average Common Equity			13.0		%	15.3		%	7.3		%
Average Assets			$	150,262.1		$	146,570.2		$	145,118.3					3		%	4		%

(*) Net interest income and total revenue presented on a fully taxable equivalent (FTE) basis are non-generally accepted accounting principles (non-GAAP) financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

N/M - Not meaningful

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 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, 2025 vs.
($ In Billions)			March 31, 2025*			December 31, 2024			March 31, 2024						December 31, 2024			March 31, 2024
Assets Under Custody/Administration
Asset Servicing			$	15,804.7		$	15,640.1		$	15,385.4					1		%	3		%
Wealth Management			1,119.3			1,147.9			1,087.1						(2)			3
Total Assets Under Custody/Administration			$	16,924.0		$	16,788.0		$	16,472.5					1		%	3		%
Assets Under Custody(1)
Asset Servicing			$	12,163.6		$	12,214.0		$	11,723.1					-		%	4		%
Wealth Management			1,105.9			1,135.2			1,081.0						(3)			2
Total Assets Under Custody			$	13,269.5		$	13,349.2		$	12,804.1					(1)		%	4		%
Assets Under Management
Asset Servicing			$	1,160.9		$	1,159.7		$	1,080.1					-		%	7		%
Wealth Management			446.9			450.7			420.6						(1)			6
Total Assets Under Management			$	1,607.8		$	1,610.4		$	1,500.7					-		%	7		%

(1) Assets Under Custody are a component of Assets Under Custody/Administration.

(*) Client assets for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

TRUST, INVESTMENT AND OTHER SERVICING FEES
															% Change Q1 2025 vs.
($ In Millions)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Asset Servicing
Custody and Fund Administration			$	453.3		$	456.9		$	436.7					(1)		%	4		%
Investment Management			152.5			156.9			140.0						(3)			9
Securities Lending			17.9			20.4			17.9						(12)			-
Other			48.2			41.3			45.0						17			7
Total Asset Servicing Trust, Investment and Other Servicing Fees			$	671.9		$	675.5		$	639.6					(1)		%	5		%
Wealth Management
Central			$	189.1		$	195.3		$	178.3					(3)		%	6		%
East			141.0			140.7			129.9						-			9
West			108.0			110.0			99.9						(2)			8
Global Family Office (GFO)			103.8			100.7			95.2						3			9
Total Wealth Management Trust, Investment and Other Servicing Fees			$	541.9		$	546.7		$	503.3					(1)		%	8		%
Total Consolidated Trust, Investment and Other Servicing Fees			$	1,213.8		$	1,222.2		$	1,142.9					(1)		%	6		%

Asset Servicing and Wealth Management Trust, Investment and Other Servicing Fees are impacted by both one-month and one-quarter lagged asset values.

Total Asset Servicing Trust, Investment and Other Servicing Fees decreased sequentially and increased from the prior-year quarter.

▪Investment management fees increased from the prior-year quarter primarily due to favorable markets and net new business.

▪Other trust, investment and other servicing fees increased sequentially primarily due to higher fees associated with seasonal benefit payment services.

Total Wealth Management Trust, Investment and Other Servicing Fees decreased sequentially and increased from the prior-year quarter.

▪Fees in the regions increased from the prior-year quarter primarily due to favorable markets.

▪Fees in GFO increased from the prior-year quarter primarily due to asset inflows and favorable markets.

2

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS

OTHER NONINTEREST INCOME
															% Change Q1 2025 vs.
($ In Millions)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Other Noninterest Income
Foreign Exchange Trading Income			$	58.7		$	61.7		$	57.0					(5)		%	3		%
Treasury Management Fees			9.6			9.2			9.3						4			3
Security Commissions and Trading Income			39.1			42.8			37.9						(8)			3
Other Operating Income			50.7			59.9			61.0						(16)			(17)
Investment Security Gains (Losses), net			-			-			(189.4)						N/M			N/M
Total Other Noninterest Income (Loss)			$	158.1		$	173.6		$	(24.2)					(9)		%	N/M

N/M - Not meaningful

Other Operating Income decreased sequentially primarily due to lower income associated with a market value decrease in supplemental compensation plans and higher expenses related to existing Visa Class B swap agreements. Other Operating Income decreased from the prior-year quarter primarily due to lower income associated with a market value decrease in supplemental compensation plans. Both the sequential and prior-year quarter market value decreases in supplemental compensation plans resulted in related decreases in supplemental compensation plan expense reported in Other Operating Expense.

Investment Security Gains (Losses), net reflects the $189.4 million available for sale debt security loss related to a repositioning of the portfolio in the prior-year quarter.

NET INTEREST INCOME
															% Change Q1 2025 vs.
($ In Millions)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Net Interest Income
Interest Income (FTE*)			$	2,146.5		$	2,290.5		$	2,452.9					(6)		%	(12)		%
Interest Expense			1,572.8			1,716.2			1,917.5						(8)			(18)
Net Interest Income (FTE*)			$	573.7		$	574.3		$	535.4					-		%	7		%
Average Earning Assets			$	138,007.9		$	133,684.0		$	133,816.8					3		%	3		%
Net Interest Margin (FTE*)			1.69		%	1.71		%	1.61		%				(2)		bps	8		bps

(*) Interest income, net interest income and net interest margin presented on an FTE basis are non-GAAP financial measures. Refer to the Reconciliation to Fully Taxable Equivalent section for further detail.

bps - basis points

Net Interest Income on an FTE basis increased compared to the prior-year quarter primarily driven by higher deposits and lower funding costs.

The Net Interest Margin on an FTE basis increased compared to the prior-year quarter primarily driven by lower funding costs.

Average Earning Assets increased sequentially and compared to the prior-year quarter primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits.

3

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS

PROVISION FOR CREDIT LOSSES
			As of and for the three-months ended,												% Change March 31, 2025 vs.
($ In Millions)			March 31, 2025			December 31, 2024			March 31, 2024						December 31, 2024			March 31, 2024
Allowance for Credit Losses
Beginning Allowance for Credit Losses			$	206.1		$	220.0		$	220.4					(6)		%	(6)		%
Provision for Credit Losses			1.0			(10.5)			(8.5)						N/M			N/M
Net Recoveries (Charge-Offs)			0.2			(3.4)			(10.4)						N/M			N/M
Ending Allowance for Credit Losses			$	207.3		$	206.1		$	201.5					1		%	3		%
Allowance assigned to:
Loans			$	167.1		$	168.0		$	162.4					(1)		%	3		%
Undrawn Loan Commitments and Standby Letters of Credit			32.8			30.4			25.2						8			31
Debt Securities and Other Financial Assets			7.4			7.7			13.9						(3)			(47)
Ending Allowance for Credit Losses			$	207.3		$	206.1		$	201.5					1		%	3		%

N/M - Not meaningful

Q1 2025

The provision in the current quarter resulted from an increase in the collective reserve, primarily driven by increased projected macroeconomic uncertainty, partially offset by sector and portfolio-specific improvements within the Commercial Real Estate (CRE) portfolio.

Q4 2024

The negative provision resulted from decreases in both the collective and individual reserves. The decrease in collective reserve was primarily driven by an improvement in credit quality in the Commercial and Institutional (C&I) portfolio. The decrease in individual reserves was driven by the partial charge-off of a C&I loan.

Q1 2024

The negative provision resulted from decreases in both the individual and collective reserves. The decrease in individual reserves was driven by one C&I loan that was subsequently charged-off. The decrease in collective reserve was primarily in the C&I portfolio, driven by improvement in the quality of the portfolio, and in the CRE portfolio, driven by improved macroeconomic factors.

4

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS

NONINTEREST EXPENSE
															% Change Q1 2025 vs.
($ In Millions)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Noninterest Expense
Compensation			$	644.4		$	595.2		$	627.1					8		%	3		%
Employee Benefits			109.7			107.3			101.1						2			8
Outside Services			245.2			251.5			229.3						(3)			7
Equipment and Software			280.9			274.4			252.7						2			11
Occupancy			53.4			54.1			54.1						(1)			(1)
Other Operating Expense			84.0			93.4			100.4						(10)			(16)
Total Noninterest Expense			$	1,417.6		$	1,375.9		$	1,364.7					3		%	4		%
End of Period Full-Time Equivalent Employees			23,400			23,300			23,000						-		%	2		%

Compensation expense increased sequentially primarily due to the impact of equity incentive awards granted to retirement-eligible employees in the quarter.

Outside Services expense increased compared to the prior-year quarter primarily due to an increase in consulting services.

Equipment and Software expense increased compared to the prior-year quarter primarily due to higher software amortization and higher software support and rental expense.

Other Operating Expense decreased sequentially primarily due to lower supplemental compensation plan expense. Other Operating Expense decreased compared to the prior-year quarter primarily due to a $12.5 million FDIC special assessment recorded in the prior year and lower supplemental compensation plan expense in the current quarter. The lower supplemental compensation plan expense in both the sequential and prior-year quarters resulted from related market value decreases in supplemental compensation plans reported in Other Operating Income.

PROVISION FOR INCOME TAXES
															% Change Q1 2025 vs.
($ In Millions)			Q1 2025			Q4 2024			Q1 2024						Q4 2024			Q1 2024
Net Income
Income before Income Taxes			$	521.4		$	594.2		$	290.6					(12)%			79%
Provision for Income Taxes			129.4			138.8			75.9						(7)			71
Net Income			$	392.0		$	455.4		$	214.7					(14)%			83%
Effective Tax Rate			24.8		%	23.4		%	26.1		%				140		bps	(130)		bps

N/M - Not meaningful

bps - basis points

The effective tax rate increased sequentially primarily due to lower current year benefits. The effective tax rate decreased compared to the prior-year quarter primarily due to higher tax benefits associated with share-based compensation and a lower state effective tax rate.

5

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS

CAPITAL ACTIONS

The Corporation returned $435.4 million to common shareholders in the current quarter through dividends and the repurchase of shares. During the current quarter, the Corporation declared cash dividends totaling $148.2 million to common stockholders. The Corporation repurchased 2,616,238 shares of common stock, including 411,132 withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $287.2 million ($109.79 average price per share).

The Corporation also declared cash dividends totaling $16.2 million to preferred stockholders during the current quarter.

CAPITAL RATIOS

The capital ratios of Northern Trust Corporation and its principal subsidiary, The Northern Trust Company, remained strong at March 31, 2025, exceeding the minimum requirements for classification as "well-capitalized" under applicable U.S. regulatory requirements.

The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and The Northern Trust Company determined by Basel III phased-in requirements.

			March 31, 2025*						December 31, 2024						March 31, 2024
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			12.9		%	15.3		%	12.4		%	14.5		%	11.4		%	13.5		%				N/A			4.5		%
Tier 1 Capital			13.9			16.5			13.3			15.6			12.4			14.6						6.0			6.0
Total Capital			15.7			18.3			15.1			17.4			14.2			16.5						10.0			8.0
Tier 1 Leverage			8.0			8.0			8.1			8.1			7.8			7.8						N/A			4.0
Supplementary Leverage			N/A			9.1			N/A			8.9			N/A			8.8						N/A			3.0

			March 31, 2025*						December 31, 2024						March 31, 2024
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			12.0		%	14.4		%	11.4		%	13.6		%	11.9		%	14.2		%				6.5		%	4.5		%
Tier 1 Capital			12.0			14.4			11.4			13.6			11.9			14.2						8.0			6.0
Total Capital			13.4			15.9			12.8			15.0			13.4			15.8						10.0			8.0
Tier 1 Leverage			6.8			6.8			6.9			6.9			7.4			7.4						5.0			4.0
Supplementary Leverage			N/A			7.8			N/A			7.5			N/A			8.5						3.0			3.0

(*) Capital ratios for the current quarter are considered preliminary until the Form 10-Q is filed with the Securities and Exchange Commission.

6

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS

RECONCILIATION TO FULLY TAXABLE EQUIVALENT

The following table presents a reconciliation of interest income, net interest income, net interest margin, total revenue, income before taxes, and profit margin (pre-tax) prepared in accordance with GAAP to such measures on an FTE non-GAAP basis. Management believes this presentation facilitates the analysis of asset yields and provides a clearer indication of these financial measures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income.

			QUARTERS
			2025						2024
($ in Millions)			FIRST						FOURTH			THIRD			SECOND			FIRST
Net Interest Income
Interest Income - GAAP			$	2,140.9					$	2,280.0		$	2,530.2		$	2,506.5		$	2,445.6
Add: FTE Adjustment			5.6						10.5			7.1			6.9			7.3
Interest Income (FTE) - Non-GAAP			$	2,146.5					$	2,290.5		$	2,537.3		$	2,513.4		$	2,452.9
Net Interest Income - GAAP			$	568.1					$	563.8		$	562.3		$	522.9		$	528.1
Add: FTE Adjustment			5.6						10.5			7.1			6.9			7.3
Net Interest Income (FTE) - Non-GAAP			$	573.7					$	574.3		$	569.4		$	529.8		$	535.4
Net Interest Margin - GAAP(1)			1.67		%				1.68		%	1.66		%	1.55		%	1.59		%
Net Interest Margin (FTE) - Non-GAAP(1)			1.69		%				1.71		%	1.68		%	1.57		%	1.61		%
Total Revenue
Total Revenue - GAAP			$	1,940.0					$	1,959.6		$	1,968.5		$	2,715.5		$	1,646.8
Add: FTE Adjustment			5.6						10.5			7.1			6.9			7.3
Total Revenue (FTE) - Non-GAAP			$	1,945.6					$	1,970.1		$	1,975.6		$	2,722.4		$	1,654.1

(1) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

7

NORTHERN TRUST CORPORATION FIRST QUARTER 2025 RESULTS