10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________

FORM 10-K

____________________________________________________________

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to                         

Commission File No. 001-36609

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NORTHERN TRUST CORPORATION

(Exact name of registrant as specified in its charter)

____________________________________________________________

Delaware	36-2723087
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

50 South La Salle Street
Chicago,	Illinois	60603
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (312) 630-6000

____________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, $1.66 2/3 Par Value	NTRS	The NASDAQ Stock Market LLC
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock	NTRSO	The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☒    No  ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes  ☐    No  ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Smaller reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).    Yes ☐    No  ☒

The aggregate market value of the registrant’s common stock as of June 30, 2021 (the last business day of the registrant’s most recently completed second quarter), based upon the last sale price of the common stock at June 30, 2021 as reported by The NASDAQ Stock Market LLC, held by non-affiliates was approximately $24.0 billion. Determination of stock ownership by non-affiliates was made solely for the purpose of responding to this requirement and the registrant is not bound by this determination for any other purpose.

At January 31, 2022, 207,898,329 shares of common stock, $1.66 2/3 par value, were outstanding.

Portions of the registrant’s Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.

NORTHERN TRUST CORPORATION

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		Page
PART I
Item 1	Business	1
Item 1A	Risk Factors	12
Item 1B	Unresolved Staff Comments	26
Item 2	Properties	26
Item 3	Legal Proceedings	26
Item 4	Mine Safety Disclosures	26
Supplemental Item	Information About Our Executive Officers	26
PART II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	28
Item 6	Reserved	29
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	86
Item 8	Financial Statements and Supplementary Data	86
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	167
Item 9A	Controls and Procedures	167
Item 9B	Other Information	169
Item 9C	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	169
PART III
Item 10	Directors, Executive Officers and Corporate Governance	169
Item 11	Executive Compensation	169
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	169
Item 13	Certain Relationships and Related Transactions, and Director Independence	169
Item 14	Principal Accountant Fees and Services	169
PART IV
Item 15	Exhibits and Financial Statement Schedules	170
Item 16	Form 10-K Summary	173
Signatures		174

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Glossary of Terms

When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:

AFS	Available for Sale
AIFMD	Alternative Investment Fund Managers Directive
ALCO	Asset and Liability Management Committee
AMA	Basel Advanced Measurement Approach
AML	Anti-Money Laundering
AOCI	Accumulated Other Comprehensive Income
ARRC	Alternative Reference Rate Committee
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
AUC/A	Assets Under Custody/Administration
Bank	The Northern Trust Company
Banking book	Northern Trust’s structural assets, liabilities, net investments, and off-balance sheet instruments subject to interest rate risk and/or foreign currency risk. It is distinct from the trading book.
Basel Committee	International Basel Committee on Banking Supervision
BMR	European Union Benchmarks Regulation
BRRD	Bank Recovery and Resolution Directive (EU)
C&IS	Corporate & Institutional Services
CARES	Coronavirus Aid, Relief, and Economic Security Act
CCAR	Comprehensive Capital Analysis and Review
CCPA	California Consumer Privacy Act
CDFIs	Community Development Financial Institutions
CEOC	Compliance & Ethics Oversight Committee
CFA	Criminal Finances Act (UK)
CFPB	Consumer Financial Protection Bureau
CFTC	U.S. Commodity Futures Trading Commission
Commission	European Commission
Corporation	Northern Trust Corporation
CPRA	California Privacy Rights Act of 2020
CRA	Community Reinvestment Act
CRC	Credit Risk Committee
CRD	Capital Requirements Directive of June 26, 2013 (EU)
CRD V	European Commission revisions to the CRD, effective December 29, 2020
CRO	Chief Risk Officer
CRR	Capital Requirements Regulation of June 26, 2013 (EU)
CRR II	European Commission revisions to the CRR, effective June 28, 2021
CSDR	Central Securities Depositories Regulation (EU)
CSSF	Commission de Surveillance du Secteur Financier (Luxembourg)
DE&I	Diversity, Equity, and Inclusion
DFAST	Dodd-Frank Act Stress Tests
DGS	Deposit Guarantee Schemes
DGSD	Deposit Guarantee Schemes Directive
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act
EBA	European Banking Authority
ECB	European Central Bank
Economic Aid Act	The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act
EEA	European Economic Area

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Glossary of Terms (continued)

EMIR	European Market Infrastructure Regulation 648/2012
EOP	End of Period
ESG	Environmental, Social and Governance
EU	European Union
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FCA	Financial Conduct Authority
FDIA	Federal Deposit Insurance Act
FDIC	Federal Deposit Insurance Corporation
Federal Reserve Board	The Board of Governors of the Federal Reserve System
FICC	Fixed Income Clearing Corporation
FINRA	Financial Industry Regulatory Authority
FRC	Fiduciary Risk Committee
FTE	Fully Taxable Equivalent
FTP	Funds Transfer Pricing
FX	Foreign Exchange
GAAP	Generally Accepted Accounting Principles
GDPR	General Data Protection Regulation
GERC	Global Enterprise Risk Committee
GFX	Global Foreign Exchange
GILTI	Global Intangible Low-Taxed Income
HTM	Held to Maturity
HQLAs	High-Quality Liquid Assets
IBA	ICE Benchmark Administration
IBOR	Interbank Offered Rates
IR	Interest Rate
ISTRC	Information Security and Technology Risk Committee
ITS	Implementing Technical Standards
LCR	Liquidity Coverage Ratio
LGD	Loss Given Default
LIBOR	London Interbank Offered Rate
MD&A	Management’s Discussion and Analysis
MIFID	Market in Financial Instruments Directive
MIFIR	Markets in Financial Instruments Regulation
MLD5	Fifth EU Money Laundering Directive
MLRC	Market & Liquidity Risk Committee
MREL	Minimum requirements for own funds and eligible liabilities (EU)
MROC	Model Risk Oversight Committee
MSDC	Macroeconomic Scenario Development Committee
MVE	Market Value of Equity
NAICS	North American Industry Classification System
NAV	Net Asset Value
NFA	National Futures Association
NFTS	Northern Trust Fiduciary Services (Guernsey) Limited
NII	Net Interest Income
N/M	Not Meaningful
NSFR	Net Stable Funding Ratio
ORC	Operational Risk Committee

iii 2021 Annual Report | Northern Trust Corporation

Glossary of Terms (continued)

OREO	Other Real Estate Owned
OTC	Over-the-Counter
OTTI	Other-Than-Temporary Impairment
PD	Probability of Default
PPP	Paycheck Protection Program
PRA	Prudential Regulation Authority
Regulatory Relief Act	Economic Growth, Regulatory Relief, and Consumer Protection Act
ROU	Right-of-use
RTS	Regulatory Technical Standards
RWA	Risk Weighted Assets
SBA	U.S. Small Business Administration
SEC	U.S. Securities and Exchange Commission
Series D Preferred Stock	Series D Non-Cumulative Perpetual Preferred Stock
Series E Preferred Stock	Series E Non-Cumulative Perpetual Preferred Stock
SOFR	Secured Overnight Finance Rate
SFDR	Sustainable Finance Disclosure Regulations (EU)
SRD II	Shareholder Rights Directive (EU)
SFTR	Securities Financing Transactions and Reuse of Collateral
Taxonomy Regulations	Regulation (EU) 2020/852
TDR	Troubled Debt Restructuring
Trading book	Foreign (non-U.S.) currency trading positions subject to foreign currency risk, as well as trading securities and interest rate derivative transactions, both subject to interest rate risk.
UCITS	Undertakings for the Collective Investment in Transferable Securities
UK	United Kingdom
USD LIBOR	U.S. Dollar LIBOR
VaR	Value-at-Risk
VIE	Variable Interest Entity
WM	Wealth Management

iv 2021 Annual Report | Northern Trust Corporation

PART I

ITEM 1 – BUSINESS

Northern Trust Corporation

Northern Trust Corporation (Corporation) is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation is a financial holding company conducting business through various U.S. and non-U.S. subsidiaries, including The Northern Trust Company (Bank).

The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. Founded in 1889, the Bank conducts its business through its U.S. operations and its various U.S. and non-U.S. branches and subsidiaries. At December 31, 2021, the Bank had consolidated assets of $183.7 billion and common bank equity capital of $11.1 billion.

The Corporation was formed as a holding company for the Bank in 1971. The Corporation has a global presence with offices in 23 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. At December 31, 2021, the Corporation had consolidated total assets of $183.9 billion and stockholders’ equity of $12.0 billion.

The Corporation expects that the Bank will continue in the foreseeable future to be the major source of the Corporation’s consolidated assets, revenues, and net income. Except where the context otherwise requires, references to “Northern Trust,” “we,” “us,” “our,” “its,” or similar terms mean Northern Trust Corporation and its subsidiaries on a consolidated basis.

Business Overview

Northern Trust focuses on managing and servicing client assets through its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management. Northern Trust reports certain income and expense items not allocated to C&IS and Wealth Management in a third reporting segment, Other.

CORPORATE & INSTITUTIONAL SERVICES

C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region. At December 31, 2021, total C&IS assets under custody/administration, assets under custody, and assets under management were $15.18 trillion, $11.55 trillion, and $1.19 trillion, respectively.

WEALTH MANAGEMENT

Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe.

Wealth Management is one of the largest providers of advisory services in the United States, with assets under custody/administration, assets under custody, and assets under management of $1.07 trillion, $1.06 trillion, and $416.1 billion, respectively, at December 31, 2021. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

ASSET MANAGEMENT

Asset Management, through the Corporation’s various subsidiaries, supports the C&IS and Wealth Management reporting segments by providing a broad range of asset management and related services and other products to clients around the world. Investment solutions are delivered through separately managed accounts, bank common and collective

2021 Annual Report | Northern Trust Corporation 1

funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. Asset Management’s capabilities include active and passive equity; active and passive fixed income; cash management; multi-asset and alternative asset classes (such as private equity and hedge funds of funds); and multi-manager advisory services and products. Asset Management’s activities also include overlay services and other risk management services. Asset Management operates internationally through subsidiaries and distribution arrangements and its revenue and expense are fully allocated to C&IS and Wealth Management. As discussed above, Northern Trust managed $1.61 trillion in assets as of December 31, 2021, including $1.19 trillion for C&IS clients and $416.1 billion for Wealth Management clients.

Competition

Northern Trust faces intense competition in all aspects and areas of its business. Competition comes from both regulated and unregulated financial services organizations, whose products and services span the local, national, and global markets in which Northern Trust conducts operations. Our competitors include a broad range of financial institutions and service companies, including other custodial banks, deposit-taking institutions, asset management firms, benefits consultants, trust companies, investment banking firms, insurance companies, investment counseling firms, and various financial technology companies, including software providers and data services firms. As our businesses grow and markets evolve, we may encounter increasing and new forms of competition around the world.

Northern Trust’s business strategy is to provide quality financial services to targeted market segments in which it believes it has a competitive advantage and favorable growth prospects. As part of this strategy, Northern Trust seeks to differentiate itself from its competitors with premier, holistic solutions and exceptional experiences tailored to meet clients’ needs. In addition, Northern Trust emphasizes the development and growth of recurring sources of fee-based income and continual productivity improvements. Northern Trust also seeks to maintain its foundational strength with a strong, conservative balance sheet and a globally respected brand.

Economic Conditions And Government Policies

The earnings of Northern Trust are affected by numerous external influences. Chief among these are general economic conditions, both domestic and international, and actions that governments and their central banks take in managing their economies. These general conditions affect all of Northern Trust’s businesses, as well as the quality, value, and profitability of its loan and investment portfolios.

The Board of Governors of the Federal Reserve System (Federal Reserve Board) implements monetary policy through its open market operations in United States Government securities, its setting of the discount rate at which member banks may borrow from Federal Reserve Banks, and its changes in the reserve requirements for deposits. The policies adopted by the Federal Reserve Board directly affect interest rates and therefore what banks earn on their loans and investments and what they pay on their savings and time deposits and other purchased funds.

Supervision and Regulation

Northern Trust is subject to extensive regulation under state and federal laws in the United States and in each of the jurisdictions in which it does business. The discussion below outlines significant elements of selected laws and regulations applicable to Northern Trust. Changes in laws or regulations applicable to Northern Trust may have a material effect on its businesses and results of operations.

FINANCIAL HOLDING COMPANY REGULATION

Under U.S. law, the Corporation is a bank holding company that has elected to be a financial holding company subject to the supervision, examination, and regulation of the Federal Reserve Board. A financial holding company is permitted to engage in a broader range of financial activities than a bank holding company. The Federal Reserve Board has authority to limit the activities that a financial holding company may conduct if any depository institution controlled by the financial holding company is found to no longer be “well-capitalized” and “well-managed” or has not received at least a “satisfactory” rating in its most recent Community Reinvestment Act (CRA) examination. Failure to meet one or more of these requirements may result in restrictions on the Corporation’s ability to exercise powers granted to financial holding companies, to engage in new activities, to continue current activities, or to make acquisitions.

SUBSIDIARY REGULATION

The Bank is a member of the Federal Reserve System, with deposits insured by the Federal Deposit Insurance Corporation (FDIC), and is subject to regulation by both agencies. As an Illinois banking corporation, the Bank is also subject to Illinois state laws and regulations and to examination and supervision by the Division of Banking of the Illinois Department of Financial and Professional Regulation. The Bank is also registered as a transfer agent with the Federal Reserve Board and is registered provisionally as a swap dealer with the U.S. Commodity Futures Trading Commission

2 2021 Annual Report | Northern Trust Corporation

(CFTC) under the Commodity Exchange Act. As a result, the Bank is subject to supervision, examination and enforcement by certain other regulatory bodies, including the CFTC and the National Futures Association (NFA).

The Corporation’s nonbanking affiliates are subject to examination by the Federal Reserve Board and, in certain circumstances, other functional regulators. The Corporation’s broker-dealer subsidiary is a member of the Financial Industry Regulatory Authority (FINRA), is registered with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer, investment adviser, and municipal securities dealer, and is subject to the rules and regulations of these bodies. Certain nonbanking affiliates are registered with the CFTC as commodity trading advisors and commodity pool operators and subject to supervision and regulation by the CFTC and NFA. Other subsidiaries of the Corporation are registered with the SEC as investment advisers and are subject to regulation by the SEC. Subsidiaries may also be regulated by state regulators in various states.

THE DODD-FRANK ACT, AS AMENDED

The following items provide a brief description of certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), as implemented through final rules promulgated by the Federal Reserve Board and other agencies and amended by the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Regulatory Relief Act), most relevant to the Corporation and its subsidiaries, including the Bank.

Enhanced Prudential Standards. The Dodd-Frank Act, as implemented by the Federal Reserve Board through various rulemakings and amended by the Regulatory Relief Act, generally imposes enhanced prudential requirements on U.S. bank holding companies with at least $100 billion in total consolidated assets, including the Corporation. The enhanced prudential standards include stringent risk-based capital, leverage, liquidity, risk management, and stress testing requirements and single counterparty credit limits for large bank holding companies, including the Corporation. The Federal Reserve Board also has the discretion to require these large U.S. bank holding companies to limit their short-term debt, to issue contingent capital instruments, and to provide enhanced public disclosures.

In October 2019, the Federal Reserve Board finalized a proposed rule implementing changes made by the Regulatory Relief Act. This rule introduced a new four-category framework to determine which enhanced prudential standards and other requirements are applicable to institutions with total consolidated assets of at least $100 billion, based on asset thresholds and other risk-based factors. Under the new rules, the Corporation is classified as a Category II institution.

The requirements under the new framework that apply to the Corporation are largely unchanged as a result of the Federal Reserve Board’s final tailoring rule for enhanced prudential standards. The Corporation must submit annual capital plans to the Federal Reserve Board, conduct supervisory and internal periodic stress tests to evaluate capital adequacy in adverse economic conditions, maintain enhanced risk management procedures, comply with a liquidity risk management framework (discussed below in “Liquidity Standards”) and aggregate credit exposure limits, conduct liquidity stress tests, and hold a buffer of liquid assets estimated to meet funding needs during a financial stress event. The Corporation is not subject to the total loss-absorbing capacity requirement, capital surcharge, enhanced supplementary leverage ratio, or aggregate credit exposure limit that apply to U.S. bank holding companies that are global systemically important bank holding companies.

Resolution Planning. As required by Section 165(d) of the Dodd-Frank Act, the Corporation is required to submit periodically to regulators a resolution plan for its rapid and orderly resolution in the event of material financial distress or failure. In addition, under an FDIC rule (the CIDI Resolution Plan Rule) the Bank must submit to the FDIC periodic plans for resolution in the event of its failure.

On March 29, 2019, the Federal Reserve Board and the FDIC provided joint written feedback to the Corporation regarding the resolution plan submitted by the Corporation in December 2017, pursuant to Section 165(d) of the Dodd-Frank Act (the 2017 165(d) Plan). The joint written feedback stated that the Federal Reserve Board and FDIC did not identify shortcomings or deficiencies in the 2017 165(d) Plan. On December 9, 2020, the Corporation received written guidance from the FDIC and Federal Reserve confirming that the 2021 resolution plan submission would be a targeted plan and include a targeted information request related to actions in response to events surrounding the COVID-19 pandemic. On December 17, 2021, the Corporation submitted its 2021 Section 165(d) resolution plan. In this submission, the Corporation addressed the requirements of a targeted resolution plan, as well as the targeted information request specified in the Federal Reserve Board and FDIC guidance letter.

In addition, on June 27, 2018, the Bank submitted its resolution plan (the 2018 CIDI Plan) to the FDIC under the CIDI Resolution Plan Rule. To date, no formal written feedback or guidance has been received regarding the 2018 CIDI Plan. On January 19, 2021, the FDIC announced that it will resume requiring resolution plan submissions for insured depository institutions with $100 billion or more in assets. The FDIC announcement indicated that no firm will be required to submit a resolution plan without at least 12 months advance notice provided to the firm. To date, the Bank has not received notice from the FDIC indicating its next resolution plan submission date.

Separately, the European Union Bank Recovery and Resolution Directive (BRRD) sets out the framework for the recovery and resolution of European Union (EU) credit institutions and investment firms, including certain of the Bank’s

2021 Annual Report | Northern Trust Corporation 3

subsidiaries and branches, effective January 1, 2015. The BRRD established a set of harmonized rules for early intervention measures, recovery and resolution planning, bail-in powers and requirements for total loss absorbing capital for EU institutions, collectively known as minimum requirements for own funds and eligible liabilities (MREL). The BRRD was materially amended, including with respect to the MREL requirements, with the amended directive coming into force in December 2020. Northern Trust Global Services SE, a Luxembourg-incorporated indirect subsidiary of the Bank, is authorized and supervised by the European Central Bank (ECB) and subject to the prudential supervision of the ECB and the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). As such, Northern Trust Global Services SE falls within the scope of the BRRD and its recovery and resolution planning is overseen by the CSSF and Single Resolution Board (the resolution authority for ECB-supervised institutions).

The United Kingdom (UK) has established a special resolution regime and a resolvability assessment framework overseen by the Bank of England (as the UK resolution authority) which has many similar features to the BRRD, which was substantially incorporated into UK law following the withdrawal of the UK from the EU. The special resolution regime applies to firms that are permitted to accept deposits under Part 4A of the Financial Services and Markets Act 2000. As such, the London branch of the Bank, as a UK branch of a third-country institution that accepts deposits, falls within the scope of the special resolution regime.

Orderly Liquidation Authority. Under the Dodd-Frank Act, certain financial companies, such as the Corporation and certain of its covered subsidiaries, can be subjected to an orderly liquidation authority if in default or danger of default and their resolution under the U.S. Bankruptcy Code would have serious adverse effects on financial stability in the United States, among other requirements set by statute. If the Corporation were subject to orderly liquidation authority, the FDIC would be appointed as its receiver, which would give the FDIC considerable powers to resolve the Corporation. Absent such actions, the Corporation, as a bank holding company, would remain subject to the U.S. Bankruptcy Code.

The Volcker Rule. The Volcker Rule bans proprietary trading subject to exceptions, such as for market-making, hedging, certain trading activities in U.S. and foreign sovereign debt, certain trading activities of non-U.S. banking entities trading outside the United States, and trading activities related to liquidity management. The Volcker Rule also imposes significant restrictions on sponsoring or investing in certain “covered funds,” such as hedge funds or private equity funds, again subject to exceptions. Northern Trust maintains an enterprise-wide compliance program to comply with the Volcker Rule.

Swaps and Other Derivatives. The Dodd-Frank Act imposed a regulatory structure on the over-the-counter derivatives market, including requirements for clearing, exchange trading, capital, margin, trade reporting, and recordkeeping. The Dodd-Frank Act also requires certain entities to register as a “major swap participant,” a “swap dealer,” a “major-security-based swap participant” or a “security-based swap dealer.” The Bank is required to register as a swap dealer and its swap dealer activities are subject to the CFTC’s rules and regulations, including rules regarding internal and external business conduct standards, reporting and recordkeeping, mandatory clearing for certain swaps, trade documentation and confirmation requirements, and cross-border swap activities. The Bank is also subject to Federal Reserve Board regulations regarding mandatory posting and collection of margin by certain swap counterparties. The Corporation has not registered and does not expect that it, or any of its affiliates, will be required to register as a security-based swap dealer with the SEC.

HOLDING COMPANY SUPPORT UNDER THE FEDERAL DEPOSIT INSURANCE ACT

The Dodd-Frank Act amended the Federal Deposit Insurance Act (FDIA) to obligate the Federal Reserve Board to require bank holding companies, such as the Corporation, to serve as a source of financial and managerial strength for any subsidiary depository institution. Under this requirement, the Corporation in the future could be required to provide financial assistance to the Bank should the Bank experience financial distress.

PAYMENT OF DIVIDENDS

The Corporation may pay dividends, repurchase stock, and make other capital distributions only in accordance with the capital plan rules and capital adequacy standards of the Federal Reserve Board, including the stress capital buffer requirement, discussed further in “—Capital Adequacy Requirements” below. Dividends from the Bank are a significant source of funds for the Corporation, and the Corporation’s ability to pay dividends on its common stock therefore depends on the ability of the Bank to pay sufficient dividends to the Corporation.

Various other federal and state laws and regulations limit the amount of dividends that may be paid by the Bank to the Corporation without regulatory consent. The Bank may not pay any dividends if it is undercapitalized, or if the payment of the dividend would cause it to become undercapitalized. In general, the amount of dividends that may be paid in a calendar year is limited to its “recent earnings” (the current year’s net income combined with the retained net income of the two preceding years), or its “undivided profits” (generally, accumulated net profits that have not been paid out as dividends or transferred to surplus), whichever is less. The ability of the Bank to pay dividends to the Corporation may also be affected by the capital adequacy standards applicable to the Bank (discussed further below), which include minimum requirements and buffers.

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CAPITAL PLANNING AND STRESS TESTING

The Corporation’s capital distributions are subject to the Federal Reserve Board’s capital plan rules, which require the Corporation to submit annual capital plans to the Federal Reserve Board for review.

The major components of that oversight are the Federal Reserve Board’s Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act stress tests (DFAST). These requirements involve both company-run and supervisory-run testing of capital under various scenarios, including baseline and severely adverse scenarios provided by the appropriate banking regulator. Results from the Corporation’s and the Bank’s annual company-run stress tests are reported to the appropriate regulators and made publicly available.

Under the DFAST regulations, the Corporation is required to undergo regulatory stress tests conducted by the Federal Reserve Board annually. The Bank also is required to conduct its own annual internal stress test (although it is permitted to combine certain reporting and disclosure of its stress test results with the results of the Corporation). Results from the Corporation’s and the Bank’s annual company-run stress tests are reported to the appropriate regulators and made publicly available. Northern Trust published the results of its most recent company-run stress tests on June 24, 2021.

CAPITAL ADEQUACY REQUIREMENTS

The Corporation, as a bank holding company, is subject to risk-based and leverage capital guidelines implemented by the Federal Reserve Board that are based on industry-standard guidelines published by the International Basel Committee on Banking Supervision (Basel Committee), known as Basel III. The Bank, as an FDIC-insured depository institution, is also required to meet risk-based and leverage capital guidelines established by regulators which are generally similar to those established by the Federal Reserve Board for bank holding companies.

Under the final Basel III rules, the Corporation, with the Bank, is a “core” banking organization that is required to use the advanced approaches methodologies to calculate and disclose publicly its risk-based capital ratios. The Corporation also is subject to a capital floor that is based on the Basel III standardized approach to calculating risk-based capital ratios. The Corporation is therefore required to calculate its risk-based capital ratios under both the standardized and advanced approaches, and is subject to the more stringent of the two in the assessment of its capital adequacy.

The Bank’s risk-based and leverage capital ratios at December 31, 2021, were well above the regulatory requirements established by U.S. banking regulators. The risk-based and leverage capital ratios for the Corporation and the Bank, together with the regulatory minimum ratios and the ratios required for classification as “well-capitalized,” are provided in the following chart.

TABLE 1: RISK-BASED AND LEVERAGE CAPITAL RATIOS AS OF DECEMBER 31, 2021

	COMMON EQUITY TIER 1 CAPITAL				TIER 1 CAPITAL				TOTAL CAPITAL				TIER 1 LEVERAGE				SUPPLEMENTARY LEVERAGE(1)
	STANDARDIZED APPROACH		ADVANCED APPROACH		STANDARDIZED APPROACH		ADVANCED APPROACH		STANDARDIZED APPROACH		ADVANCED APPROACH		STANDARDIZED APPROACH		ADVANCED APPROACH		ADVANCED APPROACH
Northern Trust Corporation	11.9	%	13.2	%	12.9	%	14.3	%	14.1	%	15.3	%	6.9	%	6.9	%	8.2	%
The Northern Trust Company	12.0	%	13.5	%	12.0	%	13.5	%	13.0	%	14.4	%	6.4	%	6.4	%	7.6	%
Minimum required ratio	4.5	%	4.5	%	6.0	%	6.0	%	8.0	%	8.0	%	4.0	%	4.0	%	3.0	%
“Well-capitalized” minimum ratios, as applicable
Northern Trust Corporation	N/A		N/A		6.0	%	6.0	%	10.0	%	10.0	%	N/A		N/A		N/A
The Northern Trust Company	6.5	%	6.5	%	8.0	%	8.0	%	10.0	%	10.0	%	5.0	%	5.0	%	3.0	%

(1) In November 2019, the Federal Reserve Board and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including the Corporation and the Bank, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020. The supplementary leverage ratios at December 31, 2021 for the Corporation and the Bank reflect the impact of this final rule.

Advanced approaches institutions, such as the Corporation and the Bank, are subject to a minimum supplementary leverage ratio of 3.0%. Advanced approaches institutions that are insured depository institutions, such as the Bank, also must maintain at least a 3.0% supplementary leverage ratio to be considered “well-capitalized.” The Corporation is also subject to a stress capital buffer, which integrates forward-looking stress test results with non-stress capital requirements, and the Bank is also subject to a capital conservation buffer, which respectively requires the Corporation and the Bank to hold a buffer of Common Equity Tier 1 capital above the minimum risk-based capital requirements in order to avoid constraints on dividends, equity repurchases and compensation. The minimum capital buffer requirement for advanced approaches banking organizations, such as the Corporation and the Bank, is 2.5%.

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A “countercyclical buffer” of 0% to 2.5% of a banking organization’s total risk-weighted assets for advanced approaches banking organizations, such as the Corporation, is also a component of the capital adequacy framework. In general, the amount of the countercyclical capital buffer is a weighted average of the countercyclical capital buffer established in the various jurisdictions in which the banking organization has credit exposures. The U.S. countercyclical buffer is currently set at 0%.

As a result of the stress test results published by the Federal Reserve Board on June 24, 2021, the Corporation’s stress capital buffer requirement for the 2021 capital plan cycle was set at 2.5%. The 2021 stress capital buffer became effective October 1, 2021, and results in an effective Common Equity Tier 1 capital ratio minimum requirement of 7.0% inclusive of this buffer.

LIQUIDITY STANDARDS

Northern Trust is subject to the U.S. liquidity coverage ratio (LCR) requirement, which is designed to ensure that covered banking organizations including the Corporation and the Bank maintain an adequate level of unencumbered high-quality liquid assets equal to their expected net cash outflow for a 30-day time horizon under a prescribed regulatory liquidity stress scenario. As of December 31, 2021, the Corporation and the Bank were in compliance with applicable LCR requirements.

Northern Trust also is subject to the U.S. net stable funding ratio (NSFR) requirement, designed to promote more medium- and long-term funding of the assets and activities of banking entities over a one-year time horizon. As of December 31, 2021, the Corporation and the Bank were in compliance with applicable NSFR requirements.

The enhanced prudential standards imposed by the Dodd-Frank Act, as amended by the Regulatory Relief Act, specify certain required liquidity risk management practices for large bank holding companies and banks. The Federal Reserve Board’s October 2019 final tailoring rule targets certain aspects of these requirements based on banking organizations’ business model and risk profile, as delineated into four risk-based categories. The Corporation, a Category II institution under the final tailoring rule, is subject to the liquidity risk management, monthly liquidity stress testing, liquidity buffer, and daily liquidity reporting requirements.

PROMPT CORRECTIVE ACTION

Federal banking regulators are required to take “prompt corrective action” with respect to a depository institution if that institution does not meet certain capital adequacy standards, and are also authorized to take appropriate action against a parent bank holding company of an under-capitalized banking subsidiary. In certain instances, the Corporation could be required to guarantee the performance of a capital restoration plan for the Bank if it were under-capitalized.

RESTRICTIONS ON TRANSACTIONS WITH AFFILIATES

The Bank is subject to restrictions governing transactions between it and affiliated entities, including the Corporation, its affiliates, and its subsidiaries. These transactions must be on terms and conditions that are, or in good faith would be, offered to nonaffiliated companies (i.e., on terms not less favorable to the Bank than market terms). Further, extensions of credit must be secured fully with qualifying collateral and are limited to 10% of the Bank’s capital and surplus for transactions with a single affiliate and to 20% of the Bank’s capital and surplus for transactions with all affiliates.

ANTI-MONEY LAUNDERING, ANTI-TERRORISM LEGISLATION, AND OFFICE OF FOREIGN ASSETS CONTROL

The Corporation and certain of its subsidiaries are subject to the Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001 and implemented in the regulation of the federal banking regulators and Financial Crimes Enforcement Network, which contain anti-money laundering (AML) and financial transparency requirements for conducting due diligence, verifying client and beneficial owner identification, and monitoring client transactions and detecting and reporting suspicious activities. AML laws outside the United States contain similar requirements.

Various legal requirements prohibit Northern Trust entities from engaging in business in or with certain jurisdictions and parties, such as organizations and countries suspected of aiding, harboring or engaging in terrorist acts or undermining the sovereignty and territorial integrity of democratic countries. The U.S. Department of the Treasury’s Office of Foreign Assets Control publishes lists of these prohibited parties. If the Corporation or the Bank finds a sanctioned name or jurisdiction on any transaction or account, the Corporation or the Bank must reject or block such account or transaction and notify the appropriate authorities.

Failure to comply with these requirements could result in fines, penalties, lawsuits, regulatory sanctions or difficulties in obtaining approvals, restrictions on their business activities or harm to reputation. Many other countries have imposed similar laws and regulations that apply to the Corporation’s non-U.S. offices. The Corporation has established policies and procedures to comply with these laws and the related regulations.

DEPOSIT INSURANCE AND ASSESSMENTS

The Bank accepts deposits, and eligible deposits have the benefit of FDIC insurance up to the applicable limit, which is currently $250,000 for each depositor account. Under the FDIA, insurance of deposits may be terminated by the FDIC

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upon a finding that the insured depository institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition, or has violated laws, regulations, or orders from a regulatory agency. Certain liquid assets are excluded from the deposit insurance assessment base of custody banks that satisfy certain institutional eligibility criteria. This has the effect of reducing the amount of deposit insurance fund insurance premiums payable by custody banks. The Bank qualifies as a custody bank for this purpose.

COMMUNITY REINVESTMENT ACT

The Bank is subject to the Community Reinvestment Act (CRA). The CRA and the regulations issued thereunder are intended to encourage banks to help meet the credit needs of their service areas, including low and moderate income neighborhoods, consistent with the safe and sound operations of the banks. The Bank fulfills its CRA obligations by making qualified investments for the purposes of community development. The Bank received an “outstanding” CRA rating from the Federal Reserve Board in its most recent CRA examination.

PRIVACY AND SECURITY

Federal law establishes a minimum federal standard of financial privacy by, among other provisions, requiring financial institutions to adopt, disclose, and enforce privacy policies with respect to consumer information, setting limitations on disclosure to third parties of consumer information, setting standards for protecting client information and preventing unlawful access to such information, and requiring notice of data breaches in certain circumstances.

Most states, the EU and other non-U.S. jurisdictions also have adopted their own statutes and/or regulations concerning data privacy and security and requiring notification of data breaches. For example, a European data protection framework—the General Data Protection Regulation (GDPR)—was adopted on April 8, 2016, and became effective in all European Economic Area (EEA) member states on May 25, 2018. GDPR also has been implemented into UK law as part of the arrangements following the UK’s withdrawal from the EU and operates in conjunction with other local data privacy requirements. GDPR is designed to harmonize data privacy laws across the EEA, to protect EEA citizens’ data privacy and to reshape the way organizations across the region approach data privacy. GDPR has extraterritorial effect as its scope includes all data controllers and processors outside the EEA whose processing activities relate to the offering of goods or services to, or monitoring the behavior of, EEA individuals. Organizations that violate certain provisions of GDPR could be fined up to €20 million or 4% of their annual worldwide revenue for the preceding fiscal year, whichever is greater.

In the United States, the California Consumer Privacy Act (CCPA) was adopted by the State of California and became effective January 1, 2020, and then enforceable on July 1, 2020. The CCPA substantially increased the rights of California residents to understand how their personal data is collected and used by commercial businesses. The CCPA includes a private right of action (permitting lawsuits to be brought by private individuals instead of the state Attorney General or other government actor for breaches), and contemplates civil penalties of up to $2,500 for each violation and up to $7,500 for each intentional violation. On November 3, 2020, the California Privacy Rights Act of 2020 (CPRA), which amends and supersedes portions of the CCPA, was approved by a majority of California voters. Among other changes, the CPRA establishes the California Privacy Protection Agency to administer, implement, and enforce the CCPA and CPRA. The CPRA is expected to be fully operative beginning in 2023, and will apply to personal information collected on or after January 1, 2022. However, the CCPA, including its implementing regulations, remains in effect until the CPRA is operative.

The Corporation has adopted and disseminated privacy policies and communicates required information relating to financial privacy and data security in accordance with applicable law.

CONSUMER LAWS AND REGULATIONS

The Corporation’s banking subsidiaries are subject to certain federal and state laws and regulations designed to protect consumers in transactions with banks. Failure to comply with these laws and regulations could lead to substantial penalties, operating restrictions and reputational damage to the financial institution. Consumer laws and regulations are enforced by the Consumer Financial Protection Bureau (CFPB) and other federal and state regulators.

NON-U.S. REGULATION

Northern Trust is subject to the laws and regulatory authorities of the jurisdictions in which its non-U.S. branches and subsidiaries operate. For example, branches and subsidiaries conducting banking and asset servicing businesses in the UK are authorized to do so pursuant to the UK Financial Services and Markets Act 2000. They are authorized by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA). The PRA and FCA exercise broad supervisory and disciplinary powers that include the power to revoke temporarily or permanently authorization to conduct a regulated business upon breach of the relevant regulations, impose capital requirements, suspend registered employees, and impose censures and fines on both regulated businesses and their regulated employees.

Northern Trust’s European branches and subsidiaries are subject to the laws and regulatory authorities of the EU and the member states in which they are domiciled. For example, Northern Trust Global Services SE as an EU-domiciled credit

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institution in Luxembourg, is subject to the prudential supervision of the ECB and the CSSF. Moreover, Northern Trust’s non-EU branches and subsidiaries conducting financial services activities in the EU may fall within the scope of the laws of the EU and, given the increasing extraterritorial effect of EU legislation, non-EU branches and subsidiaries may still fall within the scope of EU law if they transact outside of the EU with EU clients.

Since January 31, 2020, the UK has not been a member of the EU. EU legislation as it applied to the UK on December 31, 2020 is a part of UK domestic legislation, under the control of the UK’s parliament and assemblies. Most UK law relevant to the Corporation and its subsidiaries is still closely aligned with the EU legislative framework in place in December 2020.

The following items provide a brief description of certain key regulatory requirements in the EU and the UK relevant to the Corporation and its subsidiaries, in addition to the BRRD and GDPR discussed under “The Dodd-Frank Act, as Amended—Resolution Planning” and “Privacy and Security,” respectively, above.

EU and UK Prudential Regulatory Frameworks. The EU Capital Requirements Directive of June 26, 2013 (CRD) and the EU Capital Requirements Regulation of June 26, 2013 (CRR) set out the framework for prudential regulation of credit institutions in the EU, including, among other things, capital and liquidity requirements, leverage, and disclosure and reporting. CRR and CRD have been subject to extensive amendments by a new directive (CRD V) and the revised CRR (CRR II). CRD V and CRR II entered into force on June 27, 2019. CRD V has largely applied since December 29, 2020, and CRD II has largely applied since June 28, 2021. The key changes introduced by CRD V and CRR II include changes to the leverage ratio, the net stable funding ratio, large exposures, and market and counterparty credit risk. Since June 26, 2021, investment firms under the Markets in Financial Instruments Directive (MIFID) have been subject to a new prudential regime under the EU Investment Firm Directive and Investment Firm Regulation. In April 2021, the Financial Services Act came into force in the UK establishing among other things, (i) a framework for the new investment firm prudential framework to apply in the UK and (ii) the UK implementation of Basel III standards, including amendments to CRR implemented into the UK following the withdrawal from the EU. UK and EU branches and subsidiaries of the Corporation may also be subject to local rules on outsourcing and operational resilience.

Markets Regulation. MIFID (which came into force in 2018), the linked Markets in Financial Instruments Regulation (MIFIR), and the European Market Infrastructure Regulation 648/2012 (EMIR) are the primary pieces of EU legislation which regulate, among other things, trading in derivative and securities markets, transaction reporting, investor protection, clearing and risk mitigation. MIFID, MIFIR and EMIR, with applicable amendments, now form part of UK law under the legislation implemented when the UK left the EU.

Central Securities Depositories Regulation. On September 17, 2014, the EU Central Securities Depositories Regulation (CSDR) entered into force (subject to a number of transitional provisions). The CSDR aims principally to ensure that transactions between buyers and sellers of dematerialized securities are settled in a safe and timely manner by introducing common securities settlement standards across the EU. Key features of the CSDR include shorter settlement periods, settlement discipline measures (including mandatory cash penalties and ‘buy-ins’ for settlement fails and settlement fails reporting) and an obligation regarding dematerialization for most securities. In November 2021, EU legislators announced a delay to the implementation of the CSDR mandatory buy-in rules under the settlement discipline regime.

Securities Financing Transactions and Reuse of Collateral Regulation. On November 25, 2015, the EU adopted a regulation on securities financing transactions and reuse of collateral (SFTR) as part of its approach to addressing shadow banking. The regulation includes provisions for enhanced transparency and reporting of securities financing transactions. The SFTR entered into force on January 12, 2016. The reporting obligations under the SFTR have been phased in since April 11, 2020, with the final phase commencing on January 11, 2021.

UK Criminal Finances Act. On September 30, 2017, the UK Criminal Finances Act (CFA) entered into force. The CFA has extra-territorial effect, introducing certain new corporate criminal offenses in circumstances where a corporate entity or partnership (a relevant body) fails to prevent an “associated person” (broadly meaning an employee, agent or person who performs services for or on behalf of the relevant body) from criminally facilitating the evasion of tax, whether the tax evaded is owed (i) in the UK or (ii) in a foreign country if the relevant body has a nexus, or any conduct constituting part of the foreign tax evasion facilitation offense takes place, in the UK. These corporate offenses are strict liability offenses, such that in circumstances where an associated person of a relevant body criminally facilitates the evasion of tax and such relevant body has failed to prevent the associated person from committing such criminal facilitation of tax evasion, the relevant body will itself be guilty of a criminal offense carrying unlimited fines, unless it can show that it put in place reasonable prevention procedures (or by showing that it was not reasonable in all the circumstances to expect the relevant body to have any prevention procedures in place).

Benchmarks Regulation. On January 1, 2018, the EU Benchmarks Regulation (BMR) became applicable in all EU member states. The principal objectives of the BMR are to restore investor confidence in the accuracy, robustness and integrity of indices used as benchmarks in financial instruments and financial contracts or to measure the performance of

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investment funds, and the benchmark-setting process itself. The BMR aims to achieve these objectives by ensuring that benchmarks are not subject to conflicts of interest, are used appropriately, and reflect the actual market or economic reality they are intended to measure. BMR has been incorporated into UK law following the withdrawal from the EU, with applicable amendments. In 2017, the FCA and the Bank of England’s Financial Policy Committee raised questions about the future sustainability of the London Interbank Offered Rate (LIBOR) benchmarks and began planning the transition to alternative reference rates beginning December 31, 2021. The UK and EU legislators have each taken legislative steps to manage the transition from LIBOR. In the UK, the FCA has exercised powers under the BMR to effect the publication of a synthetic LIBOR rate for one-month, three-month and six-month sterling and yen LIBOR beyond 2021. In December 2021, the Critical Benchmarks (References and Administrators’ Liability) Act 2021 was passed in the UK. That legislation includes “safe harbor” provisions to mitigate certain litigation risks associated with contractual continuity following the transition to synthetic LIBOR.

Sustainable Finance Disclosure Regulations. On December 29, 2019, the EU Sustainable Finance Disclosure Regulations (SFDR) entered into force. SFDR aims to prevent “greenwashing” (conveying a misleading or false impression a product is more environmentally favorable than it actually is) by requiring disclosure of how sustainability risks and environmental, social and governance (ESG) factors are part of the investment and business processes of asset managers. Mandatory disclosures are required to be published at product and manager levels in a variety of ways, including on websites, in pre-contractual documents (e.g. prospectuses) and in annual reports. Certain significant provisions apply since March 10, 2021. In October 2021, the UK government announced that it will launch its own consultation with stakeholders on sustainable finance disclosures rules for certain UK market participants and certain investment products.

Taxonomy Regulation. On July 12, 2020, Regulation (EU) 2020/852 (Taxonomy Regulations) entered into force. The Taxonomy Regulations are part of the EU’s recent measures designed to encourage environmentally sustainable investment decision making and introduce a technical framework to ascertain how sustainable an economic activity is. The Taxonomy Regulations apply to financial market participants including MiFID firms, Undertakings for the Collective Investment in Transferable Securities (UCITS) management companies, and alternative investment fund managers, and will require them to make further entity, pre-contractual and periodic disclosures. In October 2021, the UK government announced that it will launch its own consultation with stakeholders on sustainable finance disclosures rules for certain UK market participants.

Deposit Guarantee Scheme. Eligible deposits held with EU credit institutions and certain other financial entities are subject to the recast Deposit Guarantee Schemes Directive (DGSD) implemented in 2014. It required EU member states to introduce legislation establishing at least one deposit guarantee scheme (DGS). A DGS which is established and recognized in one member state is obliged to cover the depositors (up to certain prescribed amounts) at branches of the same institution in other EU member states. In the UK, the Financial Services Compensation Scheme is the national DGS for the protection and reimbursement of depositors of failed financial institutions.

Fifth EU Money Laundering Directive. On July 9, 2018, the Fifth EU Money Laundering Directive (MLD5) entered into force. MLD5 was required to be transposed into local law by EU member states by January 10, 2020 and introduced the following key changes to the previous EU AML regime: (i) EU member states must ensure that registers of ultimate beneficial owners of companies and other legal entities are accessible to the general public; (ii) the previous AML regime was extended to additional service providers, such as electronic wallet providers, virtual currency exchange service providers, and art dealers, and further specifications regarding the scope of application of MLD5 with respect to tax advisors and estate agents were provided; (iii) the threshold for identifying holders of prepaid cards was lowered to €150; and (iv) EU member states were required to implement enhanced due diligence measures to monitor suspicious transactions involving high-risk countries more strictly. In May 2018, the UK’s Sanctions and Anti-Money Laundering Act came into force. The UK government transposed MLD5 into UK law and, therefore, the UK anti-money laundering regime is currently broadly aligned with the EU.

Shareholder Rights Directive. On May 17, 2017, the recast Shareholder Rights Directive (EU) 2017/828 was published (SRD II). Member states of the EU were required to bring into force the laws, regulations and administrative provisions necessary to comply with the Directive by June 10, 2019. SRD was designed to establish requirements in relation to the exercise of shareholder rights and, recognizing that shares are often held through complex chains of intermediaries, SRD II is designed to improve mechanisms for the identification of shareholders by companies, as well as improve the transmission of information along the chain of intermediaries to facilitate the exercise of shareholder rights. Non-EU intermediaries are required to comply with the requirements if they provide services with respect to shares of companies that have their registered office in the EU. The Commission Implementing Regulation (EU) 2018/1212 of September 3, 2018 set out minimum requirements for implementing SRD II, which have applied since September 3, 2020. SRD II has been incorporated into UK law and remains largely aligned with the EU.

Depositary Books & Records. Following the European Securities and Markets Authority’s opinion on asset segregation and application of depositary delegation rules to central securities depositories published on July 20, 2017, and entered into force on April 1, 2020, changes were introduced by two EU regulations modifying the existing Alternative

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Investment Fund Managers Directive (AIFMD) and UCITS Level 2 Regulations: Commission Delegated Regulation (EU) No 2018/1618 relating to the safe-keeping duties of depositaries of alternative investment funds and Commission Delegated Regulation (EU) No 2018/1619 relating to the safe-keeping duties of depositaries of UCITS. The changes aim to better define asset segregation requirements and to add additional safeguards, primarily focusing on information flow between the depositary and any third party to whom safe-keeping functions have been delegated. The key changes (i) impact the frequency of reconciliations between the depositary’s internal accounts and records and those of any third party in the custody chain, (ii) require the depositary to maintain an independent record separate from the record maintained by the third party, and (iii) increase due diligence obligations where custody of assets is delegated to third parties outside of the EU. AIFMD and the UCITS directive were incorporated into UK law and remain largely aligned with the EU. The changes impact Northern Trust’s subsidiaries providing depositary services to European-domiciled fund clients.

In addition to the above, the Bank’s and the Corporation’s subsidiary banks located outside the United States are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2021, each of our non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements.

Human Capital Management

At Northern Trust, our employees are our most important assets. Because the success of our company relies on the strength of the people we employ, our search for and retention of talent is critical. We invest in our employees holistically to continually develop a diverse pipeline of future leaders and to help employees advance their individual careers. The overview below outlines Northern Trust’s human capital objectives—talent management, total rewards, and diversity, equity and inclusion.

EMPLOYEES

Northern Trust employed approximately 21,100 full-time equivalent staff members as of December 31, 2021. The regional breakout of our workforce is 43% North America, 39% Asia-Pacific region, and 18% Europe, Middle East, and Africa.

TALENT ACQUISITION, DEVELOPMENT, AND MANAGEMENT

We pride ourselves in attracting strong talent and have identified the development of diverse talent as a strategic priority. Our focus on career development, work/life balance, diversity, and our unique culture of care and collaboration also contribute to our employer brand.

Sourcing and Recruitment. We target our talent identification, sourcing methods, and recruitment strategies to specific locations using various channels such as job boards, colleges, professional networks, associations and online social networks. We base hiring decisions on a variety of factors including relevant experience and accomplishments, educational background, professional licensing, and strong evidence of integrity and ethical behavior.

Onboarding. Northern Trust is committed to helping all new hires succeed from day one. New employees begin their onboarding journey with a comprehensive learning roadmap that orients them to our history, brand, businesses, and culture. Orientation programs also augment the onboarding experience by providing global, regional, and/or local information along with networking activities to help connect new hires to each other and other colleagues.

Learning and Development. An integrated partnership between our enterprise-wide and functional learning and development teams ensure we deliver holistic training solutions. Through our online learning portal, Northern Trust University, all employees can access a portfolio of professional and functional training solutions most helpful to their role. Our training content is dynamic as we regularly evaluate and offer courses and resources that will allow our employees to develop skills most critical to servicing our clients and developing their careers. An emerging area of focus is helping expand digital, analytical and financial acumen and skills across the enterprise. Many of our programs are interactive, include peer networking, and offer direct access to expert facilitators. Training is offered in both virtual and classroom instructor-led formats.

Talent Cultivation and Review. Northern Trust is committed to identifying and developing a deep pipeline of diverse, future talent at all levels across the globe to meet our evolving business needs. Annually, managers conduct talent assessments, and business and regional leadership teams hold talent reviews focused on specific topics, such as workforce needs, diversity, top talent, development opportunities, readiness for promotion, internal movement, and succession plans. Robust talent discussions are held annually with our executive management team and Board of Directors.

Performance Management. Northern Trust’s annual performance management process includes goal setting, mid-year check-ins, multi-rater feedback, and year-end reviews. Priorities are set by our Chief Executive Officer and applied to each business, department, team and individual. Managers are encouraged to provide regular feedback and real-time coaching to enhance performance outcomes and continually develop our talent.

Engagement and Recognition. Building an inclusive, connected and engaged employee culture is essential to retaining our talent. We invite all employees to provide management with anonymous responses about their everyday experiences at work through an annual Employee Engagement Survey and periodically through pulse surveys and other

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interactive feedback channels. Results are thoroughly evaluated to identify strengths, progress, and opportunities to further strengthen employee engagement, and are transparently shared with both employees and the Board of Directors. We also foster an “attitude of gratitude” through our online recognition platform that allows employees to recognize one another for everyday contributions.

TOTAL REWARDS

Our compensation and benefit programs are designed to be market competitive and positioned around the median of the local market, enabling us to attract and retain talent needed to deliver on Northern Trust’s strategy.

Compensation Programs. Our compensation programs are intended to motivate our employees to deliver the highest-quality service to our clients and achieve the greatest collective business results. They are designed, implemented and communicated to promote behaviors that are consistent with Northern Trust’s desired culture, character and enduring values of service, expertise, and integrity. We also regularly review our compensation processes and programs and take appropriate measures to ensure we can attract and retain talent in relevant markets.

Northern Trust’s base salary programs provide a competitive level of fixed pay reflecting each employee’s position, experience, qualifications and tenure. Additionally, all employees are eligible for incentive compensation to reward performance that delivers superior team or individual results. Incentive compensation is linked to both financial and non-financial performance criteria, including risk considerations, as determined by our Board of Directors and senior management. Select senior leaders and individual contributors may receive a percentage of their incentive in Northern Trust stock to encourage retention of key talent and to align rewards with company performance.

Employee Benefits. While the exact composition of the employee benefit package varies by country, our benefit programs are designed to be locally competitive, to meet the needs of our employees and their families, and to reflect the cultural values of the organization. Typical benefit programs include retirement, health care, paid time off, income protection such as disability and life insurance, leaves of absence, and access to our Employee Assistance Program. We have expanded our focus on employee well-being by providing additional programs and resources to improve wellness. These programs focus on how to manage stress, build resiliency, and be attuned to mental health issues; access to flexible or voluntary benefits; and enhancements to various parental leave offerings.

DIVERSITY, EQUITY, AND INCLUSION (DE&I)

Northern Trust embraces the values of diversity, equity and inclusion and strives to create a work environment in which all individuals are welcomed, respected, supported, and valued so that they can fully participate in, and contribute to, our success and the success of our stakeholders.

Embedding DE&I. Our DE&I strategy is designed to develop a diverse, equitable, and inclusive workforce that represents all perspectives, attributes, experiences and backgrounds. Our Board, through its Corporate Governance Committee, engages in active oversight of our DE&I strategies, programs, and principles. Our Head of Corporate Sustainability, Inclusion and Impact serves as an Executive Vice President, and reports directly to our Chairman and Chief Executive Officer. The following table presents detail with respect to the gender and ethnic diversity of our Board of Directors and executive officers.

TABLE 2: BOARD OF DIRECTORS AND EXECUTIVE OFFICERS REPRESENTATION

	DECEMBER 31, 2021
	FEMALE	MALE	WHITE	BLACK	HISPANIC	ASIAN
Board of Directors	25%	75%	59%	25%	8%	8%
Executive Officers	36%	64%	82%	18%	—%	—%

As of December 31, 2021, our global workforce was 46% female and 54% male, and 37% of our U.S. workforce self-identified as ethnically diverse.

Progress and Accountability. We utilize a global DE&I dashboard to track the organization’s progress and integrate these metrics as part of our overall corporate strategy and goals. To drive accountability for increasing diverse representation across the organization, we measure representation in relation to our hiring, retention and promotion practices. Each business unit evaluates this data, and acts as needed, to improve overall diversity within their organization. Our executive leaders report their progress through the DE&I Executive Council co-chaired by our Chief Executive Officer and our Head of Corporate Sustainability, Inclusion and Impact. Our Global Executive DE&I Council is responsible for providing strategic oversight and defining and driving accountability on the global DE&I priorities.

For information on our response to the COVID-19 pandemic, including with respect to human capital measures to preserve the health and safety of our workforce, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—COVID-19 Pandemic and Recent Events.”

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Available Information

Through the Corporation’s website at www.northerntrust.com, the Corporation makes available free of charge its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all other reports and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), as soon as reasonably practicable after it files such material with, or furnishes such material to, the SEC. The contents of the Corporation’s website, the website of the SEC or any other website referenced herein are not a part of this Annual Report on Form 10-K.

ITEM 1A - RISK FACTORS

In the normal course of our business activities, we are exposed to a variety of risks. The following discussion sets forth the risk factors that we have identified as being most significant to Northern Trust. Although we discuss these risk factors primarily in the context of their potential effects on our business, financial condition or results of operations, you should understand that these effects can have further negative implications such as: reducing the price of our common stock and other securities; reducing our capital, which can have regulatory and other consequences; affecting the confidence that clients, counterparties and/or applicable regulators have in us, with a resulting negative effect on our ability to conduct and grow our businesses; and reducing the attractiveness of our securities to rating agencies and potential purchasers, which may affect adversely our ability to raise capital and secure other funding or the cost at which we are able to do so. Additional risks beyond those discussed below, elsewhere in this Annual Report on Form 10-K or in other of our reports filed with, or furnished to, the SEC also could affect us adversely. Further, we cannot assure you that the risk factors herein or elsewhere in our other reports address all potential risks that we may face and you should not interpret discussion of any risk to imply that such risk has not already materialized.

These risk factors also serve to describe factors which may cause our results to differ materially from those described in forward-looking statements included herein or in other documents or statements that make reference to this Annual Report on Form 10-K. Forward-looking statements and other factors that may affect future results are discussed under “Forward-Looking Statements” included in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

COVID-19 Pandemic-Related Risks

Our business and results of operations generally have been, and may continue to be, adversely affected by the ongoing COVID-19 pandemic.

The ongoing COVID-19 pandemic, and governmental and societal responses thereto, have had a severe impact on global economic and market conditions, including heightened volatility in financial markets; global supply chain disruptions; and the institution of social distancing and travel restrictions that resulted in temporary closures of many businesses, lost revenues, and lower levels of employment. Although certain economic conditions have improved since their worst levels during the pandemic, the pandemic continues to evolve, as recently experienced with the rapid spread of variants and continuing outbreaks, and certain of the impacts of the pandemic may continue to affect aspects of our business and results of operations in the future.

These conditions have impacted—or may in the future impact—our business, results of operations, and financial condition negatively, including through lower net interest income resulting from lower interest rates; increased provisions for credit losses; lower revenue from certain of our fee-based businesses; impairments on the securities we hold; and decreased demand for certain of our products and services. Additionally, our liquidity and regulatory capital could be adversely impacted by volatility and disruptions in the capital and credit markets; volatility in foreign exchange rates; deposit flows; and client draws on lines of credit. Our business operations may also be disrupted if significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions, or other restrictions in connection with the pandemic. In some cases, the COVID-19 pandemic has accelerated the transition from traditional to digital financial services and heightened customer expectations in this area, and this transition may require us to invest greater resources in technological advancements. Further, work-from-home and other modified business practices may introduce additional operational risks, including resiliency, cybersecurity, and execution risks, which may result in inefficiencies or delays, and may affect our ability to, or the manner in which we, conduct our business activities.

Governments have taken, and may in the future continue to take, measures to provide economic assistance to individual households and businesses, stabilize the markets, and support economic growth; the ultimate impact of these measures is unknown and they may not be sufficient to mitigate fully the negative impact of the ongoing pandemic and/or may result in consequences—intended or unintended—that negatively impact our business.

The extent to which the COVID-19 pandemic continues to impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration, spread and severity of COVID-19 and the rise of variants, the actions to contain the virus or treat its impact, including vaccine and testing mandates, the acceptance and efficacy of a global vaccine distribution plan, and

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the timing and extent that normal economic and operating conditions resume. The ongoing pandemic may also have the effect of heightening many of the other risks described in this section entitled “Risk Factors” and any subsequent filings with the SEC.

Market Risks

We are dependent on fee-based business for a majority of our revenues, which may be affected adversely by market volatility, a downturn in economic conditions, underperformance and/or negative trends in investment preferences.

Our principal operational focus is on fee-based business, which is distinct from commercial banking institutions that earn most of their revenues from loans and other traditional interest-generating products and services. Fees for many of our products and services are based on the market value of assets under management, custody or administration; the volume of transactions processed; securities lending volume and spreads; and fees for other services rendered, all of which may be impacted negatively by market volatility, a downturn in economic conditions, underperformance and/or negative trends in investment preferences. For example, downturns in equity markets and decreases in the value of debt-related investments resulting from market disruption, illiquidity or other factors historically have reduced the valuations of the assets we manage or service for others, which generally impacted our earnings negatively. Market volatility and/or weak economic conditions also may affect wealth creation, investment preferences, trading activities, and savings patterns, which impact demand for certain products and services that we provide.

Our earnings also may be affected by poor investment returns or changes in investment preferences driven by factors beyond market volatility or weak economic conditions. For example, poor absolute or relative investment performance in funds or client accounts that we manage or in investment products that we design or provide could result in declines in the market values of portfolios that we manage and/or administer and may affect our ability to retain existing assets and to attract new clients or additional assets from existing clients. Further, broader changes in investment preferences that lead to less investment in mutual funds or other collective funds, such as the shift in investor preference to lower fee products, could impact our earnings negatively.

Changes in interest rates can affect our earnings negatively.

The direction and level of interest rates are important factors in our earnings. In response to the COVID-19 pandemic, the Federal Reserve Board further reduced interest rates, which generally had already been low relative to historical levels. While current market expectations are that interest rates will rise in the future, to the extent rates remain historically low, we may continue to experience a compressed net interest margin, which is the difference between what we earn on our assets and the interest rates we pay for deposits and other sources of funding. Low-interest-rate environments also have a negative impact on our fees earned on certain of our products. For example, we have waived certain fees associated with money market mutual funds due to the low level of short-term interest rates and expect to continue to do so until interest rates rise sufficiently. Low net interest margins and fee waivers each negatively impact our earnings.

Conversely, in some circumstances, a rise in interest rates also may affect us negatively. For example, we may be impacted negatively if such an increase were to cause: market volatility and downturns in equity markets, resulting in a decrease in the valuations of the assets we manage or service for others, which generally impact our earnings negatively; our clients to transfer funds into investments with higher rates of return, resulting in decreased deposit levels and higher fund or account redemptions; our borrowers to experience difficulties in making higher interest payments, resulting in increased credit costs, provisions for loan and lease losses and charge-offs; reduced bond and fixed income fund liquidity, resulting in lower performance, yields and fees; a decline in the value of securities held in our portfolio of investment securities, resulting in decreased levels of capital and liquidity; or higher funding costs.

Further, although we have policies and procedures in place to assess and mitigate potential impacts of interest rate risks, if our assumptions about any number of variables are incorrect, these policies and procedures to mitigate risk may be ineffective, which could impact earnings negatively.

Please see “Market Risk” in the “Risk Management” section included in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for a more detailed discussion of interest rate and market risks we face.

Changes in the monetary, trade and other policies of various regulatory authorities, central banks, governments and international agencies may reduce our earnings and affect our growth prospects negatively.

The monetary, trade and other policies of U.S. and international governments, agencies and regulatory bodies have a significant impact on economic conditions and overall financial market performance. For example, the Federal Reserve Board regulates the supply of money and credit in the United States, and its policies determine in large part the level of interest rates and our cost of funds for lending and investing, and play a role in contributing to or moderating levels of inflation, all of which meaningfully impact our earnings. The actions of the Federal Reserve Board or other regulatory authorities also may reduce the value of financial instruments we hold. Further, their policies can affect our borrowers by

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increasing interest rates or making sources of funding less available, which may increase the risk that borrowers fail to repay their loans from us. Changes in monetary, trade and other governmental policies are beyond our control and can be difficult to predict, and we cannot determine the ultimate effect that any such changes would have upon our business, financial condition or results of operations.

Uncertainty about the financial stability of various regions or countries across the globe, including the risk of defaults on sovereign debt and related stresses on financial markets, could have a significant adverse effect on our earnings.

Risks and concerns about the financial stability of various regions or countries across the globe could have a detrimental impact on economic and market conditions in these or other markets across the world. Foreign market and economic disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels of incurrence of and default on consumer debt, and home prices. Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including current events involving Ukraine and Russia, terrorism or other geopolitical events. Economic challenges faced in various foreign markets, including negative interest rates in some jurisdictions, or lack of confidence in the financial markets may adversely affect certain portions of our business, financial condition, and results of operations.

Declines in the value of securities held in our investment portfolio can affect us negatively.

Our investment securities portfolio represents a greater proportion, and our loan and lease portfolios represent a smaller proportion, of our total consolidated assets in comparison to many other financial institutions. The value of securities available for sale and held to maturity within our investment portfolio, which is generally determined based upon market values available from third-party sources, may fluctuate as a result of market volatility and economic or financial market conditions. Declines in the value of securities held in our investment portfolio negatively impact our levels of capital and liquidity. Although we have policies and procedures in place to assess and mitigate potential impacts of market risks, including hedging-related strategies, those policies and procedures are inherently limited because they cannot anticipate the existence or future development of currently unanticipated or unknown risks. Accordingly, we could suffer adverse effects as a result of our failure to anticipate and manage these risks properly.

Volatility levels and fluctuations in foreign currency exchange rates may affect our earnings.

We provide foreign exchange services to our clients, primarily in connection with our global custody business. Foreign currency volatility influences our foreign exchange trading income as does the level of client activity. Foreign currency volatility and changes in client activity may result in reduced foreign exchange trading income. Fluctuations in exchange rates may raise the potential for losses resulting from foreign currency trading positions where aggregate obligations to purchase and sell a currency other than the U.S. dollar do not offset each other or offset each other in different time periods. We also are exposed to non-trading foreign currency risk as a result of our holdings of non-U.S. dollar denominated assets and liabilities, investments in non-U.S. subsidiaries, and future non-U.S. dollar denominated revenue and expense.

We have policies and procedures in place to assess and mitigate potential impacts of foreign exchange risks, including hedging-related strategies. Any failure or circumvention of our procedures to mitigate risk may impact earnings negatively. Please see “Market Risk” in the “Risk Management” section included in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for a more detailed discussion of market risks we face.

Changes in a number of particular market conditions can affect our earnings negatively.

In past periods, reductions in the volatility of currency-trading markets, the level of cross-border investing activity, and the demand for borrowing securities or willingness to lend such securities have affected our earnings from activities such as foreign exchange trading and securities lending negatively. If these conditions occur in the future, our earnings from these activities may be affected negatively. In a few of our businesses, such as securities lending, our fee is calculated as a percentage of our clients’ earnings, such that market and other factors that reduce our clients’ earnings from investments or trading activities also reduce our revenues.

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Operational Risks

Many types of operational risks can affect our earnings negatively.

We regularly assess and monitor operational risk in our businesses. Despite our efforts to assess and monitor operational risk, our risk management program may not be effective in all cases. Factors that can impact operations and expose us to risks varying in size, scale and scope, some or all of which may be exacerbated by the shift to work-from-home arrangements implemented in recent years, include:

•failures of technological systems or breaches of security measures, including, but not limited to, those resulting from computer viruses or cyber-attacks;

•human errors or omissions, including failures to comply with applicable laws or corporate policies and procedures;

•theft, fraud or misappropriation of assets, whether arising from the intentional actions of internal personnel or external third parties;

•defects or interruptions in computer or communications systems;

•breakdowns in processes, over-reliance on manual processes, which are inherently more prone to error than automated processes, breakdowns in internal controls or failures of the systems and facilities that support our operations;

•unsuccessful or difficult implementation of computer systems upgrades;

•defects in product design or delivery;

•difficulty in accurately pricing assets, which can be aggravated by market volatility and illiquidity and lack of reliable pricing from third-party vendors;

•negative developments in relationships with key counterparties, third-party vendors, employees or associates in our day-to-day operations; and

•external events that are wholly or partially beyond our control, such as pandemics, geopolitical events, political or social unrest, natural disasters or acts of terrorism.

While we have in place many controls and business continuity plans designed to address many of these factors, these plans may not operate successfully to mitigate these risks effectively. We also may fail to identify or fully understand the implications and risks associated with changes in the financial markets or our businesses—particularly as our geographic footprint, product pipeline and client types evolve—and consequently fail to enhance our controls and business continuity plans to address those changes in an adequate or timely fashion. If our controls and business continuity plans do not address the factors noted above and operate to mitigate the associated risks successfully, such factors may have a negative impact on our business (including operational resiliency), financial condition or results of operations. In addition, an important aspect of managing our operational risk is creating a risk culture in which all employees fully understand that there is risk in every aspect of our business and the importance of managing risk as it relates to their job functions. We continue to enhance our risk management program to support our risk culture, ensuring that it is sustainable and appropriate for our role as a major financial institution. Nonetheless, if we fail to provide the appropriate environment that sensitizes all of our employees to managing risk, our business could be impacted adversely.

Failures of, or disruptions to, our technological systems or breaches of our security measures, including, but not limited to, those resulting from cyber-attacks, may result in losses.

Any failure, interruption or breach in the security of our systems could severely disrupt our operations. Our systems involve the processing, storage and transmission of clients’ and our proprietary and confidential information, and security breaches, including cyber-attacks, could expose us to a risk of theft, loss or other misappropriation of this information. Our security measures may be breached due to the actions of outside parties, employee error, failure of our controls with respect to access to our systems, malfeasance or otherwise, and, as a result, an unauthorized party may obtain access to our or our clients’ proprietary and confidential information, resulting in the theft, loss, destruction, gathering, monitoring, or other misappropriation of this information. Additionally, we are subject to complex and evolving laws and regulations governing cybersecurity, data privacy and data protection, which may differ and potentially conflict, in various jurisdictions. Regulators globally are introducing the potential for greater monetary fines on institutions that suffer from breaches leading to the misappropriation of such information. Most states, the EU and other non-U.S. jurisdictions also have adopted their own statutes and/or regulations concerning data privacy and security and notification of data breaches. These and other changes in laws or regulations associated with the enhanced protection of personal and other types of information could greatly increase compliance costs and the size of potential fines related to the protection of such information.

Information security and data privacy risks for large financial institutions like us are significant in part because of the evolving proliferation of new technologies, the use of the internet, mobile devices, and cloud technologies to conduct financial transactions and the increased sophistication and activities of hackers, terrorists, organized crime and other external parties, including foreign state actors. If we fail to continue to upgrade our technology infrastructure to ensure effective information security and data privacy relative to the type, size and complexity of our operations, we could become more vulnerable to cyber-attack and, consequently, subject to significant regulatory penalties. Also, like many large

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enterprises, in response to the COVID-19 pandemic, we have shifted the majority of our professionals to remote work arrangements, and expect that many will continue to work remotely to some extent even as we begin to institute return-to-office plans. This change has enabled us successfully to continue business operations, but also introduces potential new vulnerabilities to cyber threats. Additionally, our computer, communications, data processing, networks, backup, business continuity or other operating, information or technology systems, including those that we outsource to other providers, may fail to operate properly or become disabled, overloaded or damaged as a result of a number of factors, including events that are wholly or partially beyond our control, which could have a negative effect on our ability to conduct our business activities.

The third parties with which we do business also are susceptible to the foregoing risks (including regarding the third parties with which they are similarly interconnected or on which they otherwise rely), and our or their business operations and activities may therefore be affected adversely, perhaps materially, by failures, terminations, errors or malfeasance by, or attacks or constraints on, one or more financial, technology, infrastructure or government institutions or intermediaries with whom we or they are interconnected or conduct business. While we conduct security assessments on third-party vendors, we cannot be certain that their information security protocols are sufficient to withstand a cyber-attack or other security breach. In addition, our clients often use their own devices, such as computers, smart phones and tablets, as well as third parties with whom they share information used for authentication, to manage their accounts, which may heighten the risk of system failures, interruptions or security breaches.

In recent years, several financial services firms suffered successful cyber-attacks launched both domestically and from abroad, resulting in the disruption of services to clients, loss or misappropriation of sensitive or private information, and reputational harm. We and our clients have been, and expect to continue to be, subject to a wide variety of cyber-attacks and threats, including computer viruses, ransomware and other malicious code, distributed denial of service attacks, and phishing attacks, and it is possible that we could suffer material losses resulting from a breach. Because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these techniques, to implement adequate preventative measures, or to address them until they are discovered. In addition, successful cyber-attacks may persist for an extended period of time before being detected. Because any investigation of an information security incident would be inherently unpredictable, the extent of a particular information security incident and the path of investigating the incident may not be immediately clear. It may take a significant amount of time before such an investigation can be completed and full and reliable information about the incident is known. While such an investigation is ongoing, we may not necessarily know the extent of the harm or how best to remediate it, certain errors or actions could be repeated or compounded before they are discovered and remediated, and communication to the public, regulators, clients and other stakeholders may be inaccurate, any or all of which could further increase the costs and consequences of an information security incident.

We could be the subject of legal claims or proceedings related to security incidents, including regulatory investigations and actions. Further, the market perception of the effectiveness of our security measures could be harmed, our reputation could suffer and we could lose clients in conjunction with security incidents, each of which could have a negative effect on our business, financial condition and results of operations. A breach of our security also may affect adversely our ability to effect transactions, service our clients, manage our exposure to risk or expand our business. An event that results in the loss of information also may require us to reconstruct lost data or reimburse clients for data and credit monitoring services, which could be costly and have a negative impact on our business and reputation. Although we maintain insurance covering information theft, damage, or destruction from cyber breach incidents, there can be no assurance that liabilities or losses we may incur will be covered under such policies or that the amount of insurance will be adequate.

Further, even if not directed at us, attacks on financial or other institutions important to the overall functioning of the financial system or on our counterparties could affect, directly or indirectly, aspects of our business.

Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or have a negative effect on our earnings in other ways.

In our asset servicing, investment management, fiduciary administration and other business activities, we effect or process transactions for clients and for ourselves that involve very large amounts of money. Failure to manage or mitigate operational risks properly can have adverse consequences, and increased volatility in the financial markets may increase the magnitude of resulting losses. Given the high volume of transactions we process, errors that affect earnings may be repeated or compounded before they are discovered and corrected.

Our dependence on technology, and the need to update frequently our technology infrastructure, exposes us to risks that also can result in losses.

Our businesses depend on information technology infrastructure, both internal and external, to record and process, among other things, a large volume of increasingly complex transactions and other data, in many currencies, on a daily basis, across numerous and diverse markets and jurisdictions. Due to our dependence on technology and the important role it

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plays in our business operations, we must constantly improve and update our information technology infrastructure. Upgrading, replacing, and modernizing these systems can require significant resources and often involves implementation, integration and security risks that could cause financial, reputational and operational harm. Failure to ensure adequate review and consideration of critical business and regulatory issues prior to and during the introduction and deployment of key technological systems or failure to align operational capabilities adequately with evolving client commitments and expectations may have a negative impact on our results of operations. The failure to respond properly to, and invest in, changes and advancements in technology and/or to compete for and retain employees with the necessary technical skills and expertise could limit our ability to attract and retain clients, prevent us from offering products and services comparable to those offered by our competitors, inhibit our ability to meet regulatory requirements or otherwise have a material adverse effect on our operations.

The systems and models we employ to analyze, monitor and mitigate risks, as well as for other business purposes, are inherently limited, may not be effective in all cases and, in any case, cannot eliminate all risks that we face.

We use various systems and models in analyzing and monitoring several risk categories, as well as for other business purposes. However, these systems and models are inherently limited because they involve techniques and judgments that cannot anticipate every economic and financial outcome in the markets in which we operate, nor can they anticipate the specifics and timing of such outcomes. Further, these systems and models may fail to quantify accurately the magnitude of the risks we face. Our measurement methodologies rely on many assumptions and historical analyses and correlations. These assumptions may be incorrect, and the historical correlations on which we rely may not continue to be relevant. Consequently, the measurements that we make may not adequately capture or express the true risk profiles of our businesses or provide accurate data for other business purposes, each of which ultimately could have a negative impact on our business, financial condition and results of operations. Errors in the underlying model or model assumptions, or inadequate model assumptions, could result in unanticipated and adverse consequences, including material loss or noncompliance with regulatory requirements or expectations.

A failure or circumvention of our controls and procedures could have a material adverse effect on our business, financial condition and results of operations.

We regularly review and update our internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system will be met. Any failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on our business, financial condition and results of operations. If we identify material weaknesses in our internal control over financial reporting or are otherwise required to restate our financial statements, we could be required to implement expensive and time-consuming remedial measures and could lose investor confidence in the accuracy and completeness of our financial reports. In addition, there are risks that individuals, either employees or contractors, consciously circumvent established control mechanisms by, for example, exceeding trading or investment management limitations, or committing fraud.

Failure of any of our third-party vendors (or their vendors) to perform can result in losses.

Third-party vendors provide key components of our business operations such as data processing, recording and monitoring transactions, online banking interfaces and services, and network access. Our use of third-party vendors exposes us to the risk that such vendors (or their vendors) may not comply with their servicing and other contractual obligations, including with respect to indemnification and information security, and to the risk that we may not satisfy applicable regulatory responsibilities regarding the management and oversight of third parties and outsourcing providers. While we have established risk management processes and continuity plans, any disruptions in service from a key vendor for any reason or poor performance of services could have a negative effect on our ability to deliver products and services to our clients and conduct our business. Replacing these third-party vendors or performing the tasks they perform for ourselves could create significant delay and expense.

We are subject to certain risks inherent in operating globally which may affect our business adversely.

In conducting our U.S. and non-U.S. business, we are subject to risks of loss from various unfavorable political, economic, legal, public health, or other developments, including social or political instability, changes in governmental policies or policies of central banks, expropriation, nationalization, confiscation of assets, price controls, capital controls, exchange controls, unfavorable tax rates and tax court rulings and changes in laws and regulations. Less mature and often less regulated business and investment environments heighten these risks in various emerging markets. Our non-U.S. operations accounted for 31% of our revenue in 2021. Our non-U.S. businesses are subject to extensive regulation by various non-U.S. regulators, including governments, securities exchanges, central banks and other regulatory bodies in the jurisdictions in

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which those businesses operate. In many countries, the laws and regulations applicable to the financial services industry are uncertain and evolving and may be applied with extra scrutiny to foreign companies. Moreover, the regulatory and supervisory standards and expectations in one jurisdiction may not conform with standards or expectations in other jurisdictions. Even within a particular jurisdiction, the standards and expectations of multiple supervisory agencies exercising authority over our affairs may not be harmonized fully. Accordingly, it may be difficult for us to determine the exact requirements of local laws in every market or manage our relationships with multiple regulators in various jurisdictions. Our inability to remain in compliance with local laws in a particular market and manage our relationships with regulators could have an adverse effect not only on our businesses in that market but also on our reputation generally. The failure to mitigate properly such risks or the failure of our operating infrastructure to support such international activities could result in operational failures and regulatory fines or sanctions, which could affect our business and results of operations adversely.

We actively strive to optimize our geographic footprint. This optimization may occur by establishing operations in lower-cost locations or by outsourcing to third-party vendors in various jurisdictions. These efforts expose us to the risk that we may not maintain service quality, control or effective management within these operations. In addition, we are exposed to the relevant macroeconomic, political, public health, and similar risks generally involved in doing business in those jurisdictions. The increased elements of risk that arise from conducting certain operating processes in some jurisdictions could lead to an increase in reputational risk. During periods of transition, greater operational risk and client concern exist with respect to maintaining a high level of service delivery.

In addition, we are subject in our global operations to rules and regulations relating to corrupt and illegal payments, money laundering, and laws relating to doing business with certain individuals, groups and countries, such as the U.S. Foreign Corrupt Practices Act, the USA PATRIOT Act, the UK Bribery Act, and economic sanctions and embargo programs administered by the U.S. Office of Foreign Assets Control and similar agencies worldwide. While we have invested and continue to invest significant resources in training and in compliance monitoring, the geographic diversity of our operations, employees, clients and customers, as well as the vendors and other third parties with whom we deal, presents the risk that we may be found in violation of such rules, regulations, laws or programs and any such violation could subject us to significant penalties or affect our reputation adversely.

Failure to control our costs and expenses adequately could affect our earnings negatively.

Our success in controlling the costs and expenses of our business operations also impacts operating results. Through various parts of our business strategy, we aim to produce efficiencies in operations that help reduce and control costs and expenses, including the costs of losses associated with operating risks attributable to servicing and managing financial assets. Failure to control these and other costs, as a result of our failure to execute on our strategies successfully, an overall inflationary environment, or otherwise, could affect our earnings negatively and reduce our competitive position.

Pandemics, natural disasters, global climate change, acts of terrorism and global conflicts may have a negative impact on our business and operations.

Pandemics, natural disasters, global climate change, acts of terrorism, global conflicts (including current events involving Ukraine and Russia) or other similar events have had in the past, or may in the future have, a negative impact on our business and operations. While we have in place business continuity plans, such events may still damage our facilities, disrupt or delay the normal operations of our business (including communications and technology), result in harm to or cause travel limitations on our employees, and have a similar impact on our clients, suppliers, third-party vendors and counterparties. These events also could impact us negatively to the extent that they result in reduced capital markets activity, lower asset price levels, or disruptions in general economic activity in the United States or abroad, or in financial market settlement functions. In addition, these or similar events may impact economic growth negatively, which could have an adverse effect on our business and operations, and may have other adverse effects on us in ways that we are unable to predict. Please see “Strategic Risks” and “COVID-19 Pandemic-Related Risks” in this “Risk Factors” section for further description of risks associated with climate change and the ongoing COVID-19 pandemic, respectively.

Credit Risks

Failure to evaluate accurately the prospects for repayment when we extend credit or maintain an adequate allowance for credit losses can result in losses or the need to make additional provisions for credit losses, both of which reduce our earnings.

We evaluate extensions of credit before we make them and then provide for credit risks based on our assessment of the credit losses inherent in our loan portfolio, including undrawn credit commitments. This process requires us to make difficult and complex judgments. Challenges associated with our credit risk assessments include identifying the proper factors to be used in assessments and accurately estimating the impacts of those factors. Allowances that prove to be

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inadequate may require us to realize increased provisions for credit losses or write down the value of certain assets on our balance sheet, which in turn would affect earnings negatively.

Market volatility and/or weak economic conditions can result in losses or the need for additional provisions for credit losses, both of which reduce our earnings.

Credit risk levels and our earnings also can be affected by market volatility and/or weakness in the economy in general and in the particular locales in which we extend credit, a deterioration in credit quality or a reduced demand for credit. Adverse changes in the financial performance or condition of our borrowers resulting from market volatility and/or weakened economic conditions could impact the borrowers’ abilities to repay outstanding loans, which could in turn impact our financial condition and results of operations negatively.

The failure or perceived weakness of any of our significant counterparties could expose us to loss.

The financial markets are characterized by extensive interconnections among financial institutions, including banks, broker/dealers, collective investment funds and insurance companies. As a result of these interconnections, we and many of our clients have counterparty exposure to other financial institutions. This counterparty exposure presents risks to us and to our clients because the failure or perceived weakness of any of our counterparties has the potential to expose us to risk of loss. Instability in the financial markets has resulted historically in some financial institutions becoming less creditworthy. During such periods of instability, we are exposed to increased counterparty risks, both as principal and in our capacity as agent for our clients. Changes in market perception of the financial strength of particular financial institutions can occur rapidly, are often based upon a variety of factors and can be difficult to predict. In addition, the criteria for and manner of governmental support of financial institutions and other economically important sectors remain uncertain. Further, the consolidation of financial services firms and the failures of other financial institutions has in the past increased, and may in the future increase, the concentration of our counterparty risk. These risks are heightened by the fact that our operating model relies on the use of unaffiliated sub-custodians to a greater degree than certain of our competitors that have banking operations in more jurisdictions than we do. We are not able to mitigate all of our and our clients’ counterparty credit risk. If a significant individual counterparty defaults on an obligation to us, we could incur financial losses that have a material and adverse effect on our business, financial condition and results of operations.

The transition away from LIBOR or changes in the method pursuant to which other interest rate benchmarks are determined could adversely impact our business and results of operations.

Many financial markets currently rely on interbank offered rates (each, an IBOR) as mutually agreed upon reference rates serving as the basis for the pricing and valuation of assets, trading positions, loans and other financial transactions. Global regulators have taken steps to discontinue the publication and use of IBOR rates, encourage the development and use of alternative reference rates, and examine the IBOR transition preparations of regulated entities such as Northern Trust. While there are multiple IBORs, LIBOR is the most widely used interest rate benchmark in the world and serves as the reference rate for our floating-rate funding, certain of the products that we own or offer, various lending and securities transactions in which we are involved, and many derivatives that we use to manage our or our clients’ risk. On March 5, 2021, ICE Benchmark Administration (IBA), the administrator of U.S. Dollar LIBOR (USD LIBOR) and other IBORs, announced that publication of 1-week and 2-month USD LIBOR would cease at the end of 2021. Publication of the remaining USD LIBOR tenors will continue until June 30, 2023 to provide additional time to wind down and negotiate existing contracts that reference these rates. Globally, financial market participants have begun to transition away from LIBOR and other IBORs to alternative reference rates, and in accordance with guidance from U.S. regulators, including the Federal Reserve Board, we stopped offering USD LIBOR in new contracts and began offering the Secured Overnight Finance Rate (SOFR) as an alternative to LIBOR in 2021.

While there is no consensus on what rate or rates may become accepted alternatives to LIBOR, a group of large banks and the Alternative Reference Rate Committee (ARRC) identified, and the Federal Reserve Bank of New York, in May 2018 started to publish, SOFR as its preferred alternative to LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. SOFR has different characteristics than LIBOR, and may demonstrate less predictable behavior over time and across different monetary, market, and economic environments; therefore, it is unclear whether and when markets will adopt SOFR as a widely accepted replacement for LIBOR. Various regulators, industry bodies and other market participants in the United States and other countries are engaged in initiatives to develop, introduce and encourage the use of other alternative rate benchmarks. The elimination of LIBOR or any other change in the availability or calculation of LIBOR or other interest rate benchmarks may affect adversely the cost or availability of floating-rate funding; the yield on loans or securities held by us; the amounts received and paid on derivative instruments we have entered into; the value of loans, securities, or derivative instruments held by us or our clients, which, in the case of assets held by our clients, could also negatively impact the amount of fees we earn in relation to such assets; the trading market for securities based on LIBOR or other benchmarks; the terms of new loans being made using different or modified

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reference rates; or our ability to use derivative instruments to manage risk effectively. While we are working to facilitate an orderly transition from LIBOR to alternative interest rate benchmarks for us and our clients and have begun offering SOFR as a LIBOR alternative, there continues to be uncertainty regarding the effect that these developments, any discontinuance, modification or other reforms to LIBOR or any other interest rate benchmarks, or the establishment of alternative reference rates may have on LIBOR or other interest rate benchmarks. Further, the transition away from the use of LIBOR and the adoption of alternative interest rate benchmarks, or uncertainty related to any such transition or adoption, has caused, and may in the future cause, us to recognize additional costs. It may also cause us to experience operational disruptions or result in client disputes or litigation, which may negatively impact our business, financial condition or results of operations.

Liquidity Risks

If we do not manage our liquidity effectively, our business could suffer.

Liquidity is essential for the operation of our business. Market conditions, unforeseen outflows of funds or other events could have a negative effect on our level or cost of funding, affecting our ongoing ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund new business transactions at a reasonable cost and in a timely manner. If our access to stable and low-cost sources of funding, such as customer deposits, is reduced, we may need to use alternative funding, which could be more expensive or of limited availability. Further evolution in the regulatory requirements relating to liquidity and risk management also may impact us negatively. Additional regulations may impose more stringent liquidity requirements for large financial institutions, including the Corporation and the Bank. Given the overlap and complex interactions of these regulations with other regulatory changes, the full impact of the adopted and proposed regulations remains uncertain until their full implementation.

In addition, a significant portion of our business involves providing certain services to large, complex clients, which, by their nature, require substantial liquidity. Our failure to manage successfully the liquidity and balance sheet issues attendant to this portion of our business may have a negative impact on our ability to meet client needs and grow.

For more information on regulations and other regulatory changes relating to liquidity, see “Supervision and Regulation—Liquidity Standards” in Item 1, “Business.” Any substantial, unexpected or prolonged changes in the level or cost of liquidity could affect our business adversely.

If the Bank is unable to supply the Corporation with funds over time, the Corporation could be unable to meet its various obligations.

The Corporation is a legal entity separate and distinct from the Bank and the Corporation’s other subsidiaries. The Corporation relies on dividends paid to it by the Bank to meet its obligations and to pay dividends to stockholders of the Corporation. There are various legal limitations on the extent to which the Bank and the Corporation’s other subsidiaries can supply funds to the Corporation by dividend or otherwise. Dividend payments by the Bank to the Corporation in the future will require continued generation of earnings by the Bank and could require regulatory approval under certain circumstances. For more information on dividend restrictions, see “Supervision and Regulation—Payment of Dividends” in Item 1, “Business.”

We may need to raise additional capital in the future, which may not be available to us or may only be available on unfavorable terms.

We may need to raise additional capital to provide sufficient resources to meet our business needs and commitments, to accommodate the transaction and cash management needs of our clients, to maintain our credit ratings in response to regulatory changes, including capital rules, or for other purposes. However, our ability to access the capital markets, if needed, will depend on a number of factors, including the state of the financial markets. Rising interest rates, disruptions in financial markets, negative perceptions of our business or our financial strength, or other factors may impact our ability to raise additional capital, if needed, on terms acceptable to us. Any diminished ability to raise additional capital, if needed, could subject us to liability, restrict our ability to grow, require us to take actions that would affect our earnings negatively or otherwise affect our business and our ability to implement our business plan, capital plan and strategic goals adversely.

Any downgrades in our credit ratings, or an actual or perceived reduction in our financial strength, could affect our borrowing costs, capital costs and liquidity adversely.

Rating agencies publish credit ratings and outlooks on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities. Our credit ratings are subject to ongoing review by the rating agencies and thus may change from time to time based on a number of factors, including our own financial strength, performance, prospects and operations as well as factors not under our control, such as rating-agency-specific criteria or frameworks for our industry or certain security types, which are subject to revision from time to time, and conditions affecting the financial services industry generally.

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Downgrades in our credit ratings may affect our borrowing costs, our capital costs and our ability to raise capital and, in turn, our liquidity adversely. A failure to maintain an acceptable credit rating also may preclude us from being competitive in certain products. Additionally, our counterparties, as well as our clients, rely on our financial strength and stability and evaluate the risks of doing business with us. If we experience diminished financial strength or stability, actual or perceived, a decline in our stock price or a reduced credit rating, our counterparties may be less willing to enter into transactions, secured or unsecured, with us, our clients may reduce or place limits on the level of services we provide them or seek other service providers, or our prospective clients may select other service providers, all of which may have other adverse effects on our business.

The risk that we may be perceived as less creditworthy relative to other market participants is higher in a market environment in which the consolidation, and in some instances failure, of financial institutions, including major global financial institutions, could result in a smaller number of larger counterparties and competitors. If our counterparties perceive us to be a less viable counterparty, our ability to enter into financial transactions on terms acceptable to us or our clients, on our or our clients’ behalf, will be compromised materially. If our clients reduce their deposits with us or select other service providers for all or a portion of the services we provide to them, our revenues will decrease accordingly.

Regulatory and Legal Risks

Failure to comply with regulations and/or supervisory expectations can result in penalties and regulatory constraints that restrict our ability to grow or even conduct our business, or that reduce earnings.

Virtually every aspect of our business around the world is regulated, generally by domestic and foreign governmental agencies that have broad supervisory powers and the ability to impose sanctions. These regulations cover a variety of matters, including prohibited activities, required capital levels, resolution planning, human trafficking and modern slavery, and privacy and data protection. Some of these requirements are directed specifically at protecting depositors of the Bank, the federal deposit insurance fund and the banking system as a whole, not our stockholders or other security holders. Regulatory violations or the failure to meet formal or informal commitments made to regulators could generate penalties, require corrective actions that increase costs of conducting business, result in limitations on our ability to conduct business, restrict our ability to expand or impact our reputation adversely. Failure to obtain necessary approvals from regulatory agencies, whether formal or based upon supervisory expectations, on a timely basis could affect proposed business opportunities and results of operations adversely. Similarly, changes in laws or failure to comply with new requirements or with future changes in laws or regulations may impact our results of operations and financial condition negatively.

Changes by the U.S. and other governments to laws, regulations and policies applicable to the financial services industry may heighten the challenges we face and make regulatory compliance more difficult and costly.

Various regulatory bodies have demonstrated heightened enforcement scrutiny of financial institutions through many regulatory initiatives. These initiatives have increased compliance costs and regulatory risks and may lead to financial and reputational damage in the event of a compliance violation. While we have programs in place, including policies, training and various forms of monitoring, designed to ensure compliance with legislative and regulatory requirements, these programs and policies may not always protect us from conduct by individual employees. Governments may take further actions to change significantly the way financial institutions are regulated, either through new legislation, new regulations, new applications of existing regulations or a combination of all of these methods. We cannot currently predict the impact, if any, of these changes to our business. Additionally, governments and regulators may take actions that increase intervention in the normal operation of our businesses and the businesses of our competitors in the financial services industry, and these likely would involve additional legislative and regulatory requirements imposed on banks and other financial services companies. Any such actions could increase compliance costs and regulatory risks, lead to financial and reputational damage in the event of a violation, affect our ability to compete successfully, and also may impact the nature and level of competition in the industry in unpredictable ways. The full scope and impact of possible legislative or regulatory changes and the extent of regulatory activity is uncertain and difficult to predict.

For example, we are unable to predict what, if any, changes to financial services laws and regulations applicable to the financial services industry may be enacted by the U.S. Congress and what the impact of any such changes will be upon our business, financial condition, and results of operations. Moreover, the current U.S. presidential administration has made, and is expected to make further, changes in the leadership and senior staffs of the federal banking agencies which are likely to impact the rulemaking, supervision, examination and enforcement priorities and policies of such agencies, the potential impacts of which, if any, we cannot predict with certainty at this time.

We may be impacted adversely by claims or litigation, including claims or litigation relating to our fiduciary responsibilities.

Our businesses involve the risk that clients or others may sue us, claiming that we have failed to perform under a contract or otherwise failed to carry out a duty perceived to be owed to them. Our trust, custody and investment management

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businesses are particularly subject to this risk. This risk is heightened when we act as a fiduciary for our clients and may be further heightened during periods when credit, equity or other financial markets are deteriorating in value or are particularly volatile, or when clients or investors are experiencing losses. In addition, regulators, tax authorities and courts have increasingly sought to hold financial institutions liable for the misconduct of their clients where such regulators and courts have determined that the financial institution should have detected that the client was engaged in wrongdoing, even though the financial institution had no direct knowledge of the wrongdoing.

Claims made or actions brought against us, whether founded or unfounded, may result in injunctions, settlements, damages, fines or penalties, which could have a material adverse effect on our financial condition or results of operations or require changes to our business. Even if we defend ourselves successfully, the cost of litigation is often substantial, and public reports regarding claims made against us may cause damage to our reputation among existing and prospective clients or negatively impact the confidence of counterparties, rating agencies and stockholders, consequently affecting our earnings negatively.

We may be impacted adversely by supervisory and/or regulatory enforcement matters.

In the ordinary course of our business, we are subject to various governmental enforcement inquiries, supervisory examinations, investigations and subpoenas. These may be directed generally to participants in the businesses in which we are involved or may be directed specifically at us. In conjunction with both supervisory and enforcement matters, we may face limits on our ability to conduct or expand our business, be required to implement corrective actions that increase the costs of conducting business, or become subject to civil or criminal penalties or other remedial sanctions, any of which could result in reputational damage or otherwise have an adverse impact on us. Regulatory enforcement activity and supervisory expectations may heighten relative to the recent past as personnel from the current U.S presidential administration assume positions of leadership in the agencies that regulate or supervise us.

We may fail to set aside adequate reserves for, or otherwise underestimate our liability relating to, pending and threatened claims, with a negative effect on our earnings.

We estimate our potential liability for pending and threatened claims and record reserves when appropriate pursuant to generally accepted accounting principles (GAAP). The process is inherently subject to risk, including the risks that a judge or jury could decide a case contrary to our evaluation of the law or the facts or that a court could change or modify existing law on a particular issue important to the case. Our earnings will be adversely affected if our reserves are not adequate.

The ultimate impact on us of the United Kingdom’s withdrawal from the European Union remains uncertain.

While the UK’s withdrawal from the EU, commonly referred to as “Brexit,” officially became effective on December 31, 2020, certain items remain to be negotiated; therefore, the final impact remains uncertain. In December 2020, the UK and the EU agreed on a trade and cooperation agreement that entered into force on May 1, 2021. While the trade and cooperation agreement covers the general objectives and framework of the relationship between the UK and the EU, it generally does not address the regulation of financial services. Instead, in March 2021, the UK and the EU agreed upon a framework for voluntary regulatory cooperation and dialogue on financial services issues between the parties in a Memorandum of Understanding, which is expected to be signed after certain formal steps are completed.

Consequently, the ultimate impact of Brexit on the Corporation and the Bank remains uncertain and will depend on the terms of the post-Brexit relationships that remain to be negotiated between the UK and other EU nations, particularly in the area of financial services. We have incurred, and may in the future continue to incur, additional costs associated with Brexit planning measures while unforeseen political, regulatory, or other developments related to Brexit, or operational issues associated with the organizational restructuring related thereto, also may result in additional costs and disruption to our UK and EU businesses.

If we fail to comply with legal standards, we could incur liability to our clients or lose clients, which could affect our earnings negatively.

Managing or servicing assets with reasonable prudence in accordance with the terms of governing documents and applicable laws is an important part of our business. Failure to comply with the terms of governing documents and applicable laws, manage adequately the risks or manage appropriately the differing interests often involved in the exercise of fiduciary responsibilities may subject us to liability or cause client dissatisfaction, which may impact negatively our earnings and growth.

Strategic Risks

If we are not able to attract, retain and motivate personnel, our business could be negatively affected.

Our success depends, in large part, on our ability to attract new employees, retain and motivate our existing employees, and continue to compensate our employees competitively. Competition for the best employees in most activities in which we

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engage can be intense, and there can be no assurance that we will be successful in our efforts to recruit and retain necessary personnel. Factors that affect our ability to attract and retain talented and diverse employees include our compensation and benefits programs, our profitability and our reputation for rewarding and promoting qualified employees. Our ability to attract and retain key executives and other employees may be hindered as a result of existing and potential regulations applicable to incentive compensation and other aspects of our compensation programs. These regulations may not apply to some of our competitors and to other institutions with which we compete for talent. In addition, our current or future approach to in-office and remote work arrangements may not meet the needs or expectations of our current or prospective employees, may not be perceived as favorable as compared to the arrangements offered by competitors and may not be conducive to a collaborative working environment, which could adversely affect our ability to attract, retain and motivate employees. The unexpected loss of services of necessary personnel, both in businesses and corporate functions, could have a material adverse impact on our business because of their skills, knowledge of our markets, operations and clients, years of industry experience and, in some cases, the difficulty of promptly finding qualified replacement personnel. Similarly, the loss of necessary employees, either individually or as a group, could affect our clients’ perception of our abilities adversely. The current competitive labor market may also have the effect of heightening many of these risks.

Our operations, businesses and clients could be materially adversely affected by the effects of climate change or concerns related thereto.

There is increasing concern over the risks that climate change presents to our business, financial condition, and results of operations. The physical risks of climate change include rising average global temperatures, rising sea levels, and an increase in the frequency and severity of extreme weather events. Such developments could disrupt our operations, those of our clients, or third parties on which we rely. Further, the consequences of climate change could negatively impact our clients’ ability to pay outstanding loans, reduce the value of collateral, or result in insurance shortfalls.

Climate change could also result in transition risk. Changes in consumer and/or investor preferences, new legislation, and expanded regulatory requirements related to climate risk could adversely impact us or our clients. If we do not identify, quantify, and mitigate such risks successfully, we may experience financial losses, litigation, reputational harm, and losses of investor and stakeholder confidence.

If we do not develop and execute strategic plans successfully, our growth may be impacted negatively.

Our growth depends upon successful, consistent development and execution of our business strategies. A failure to develop and execute these strategies may impact growth negatively. A failure to grow organically or to integrate successfully an acquisition could have an adverse effect on our business. The challenges arising from generating organic growth or the integration of an acquired business may include preserving valuable relationships with employees, clients, suppliers and other business partners, delivering enhanced products and services, as well as combining accounting, data processing and internal control systems. To the extent we enter into transactions to acquire complementary businesses and/or technologies, we may not achieve the expected benefits of such transactions, which could result in increased costs, lowered revenues, ineffective deployment of capital, regulatory concerns, exit costs or diminished competitive position or reputation. These risks may be increased if the acquired company operates internationally or in a geographic location where we do not already have significant business operations.

Execution of our business strategies also may require certain regulatory approvals or consents, which may include approvals of the Federal Reserve Board and other domestic and non-U.S. regulatory authorities. These regulatory authorities have the ability to impose conditions on the activities or transactions contemplated by our business strategies which may impact negatively our ability to realize fully the expected benefits of certain opportunities. Further, acquisitions we announce may not be completed, or completed in the time frame anticipated, if we do not receive the required regulatory approvals, if regulatory approvals are significantly delayed or if other closing conditions are not satisfied.

We are subject to intense competition in all aspects of our businesses, which could have a negative effect on our ability to maintain satisfactory prices and grow our earnings.

We provide a broad range of financial products and services in highly competitive markets. We compete against large, well-capitalized, and geographically diverse companies that are capable of offering a wide array of financial products and services at competitive prices. In certain businesses, such as foreign exchange trading, electronic networks present a competitive challenge. Additionally, technological advances and the growth of internet-based commerce have made it possible for other types of institutions to offer a variety of products and services competitive with certain areas of our business. Many of these nontraditional service providers have fewer regulatory constraints and some have lower cost structures. The same may be said for competitors based in non-U.S. jurisdictions, where legal and regulatory environments may be more favorable than those applicable to the Corporation and the Bank as U.S.-domiciled financial institutions. These competitive pressures may have a negative effect on our earnings and ability to grow. Pricing pressures, as a result of the willingness of competitors to offer comparable or improved products or services at a lower price, also may result in a

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reduction in the price we can charge for our products and services, which could have, and in some cases has had, a negative effect on our ability to maintain or increase our profitability.

Damage to our reputation could have a direct and negative effect on our ability to compete, grow and generate revenue.

The failure or perceived failure to meet or appropriately address client expectations or fiduciary or other obligations, operational failures, legal and regulatory requirements, potential conflicts of interest, cybersecurity and privacy, social and sustainability concerns related to our business activities or any other of the risks discussed in this Item 1A could materially and adversely affect our reputation as well as our ability to attract and retain clients or employees. Additionally, the actual or alleged actions of our affiliates, vendors or other third parties with which we do business, the actual or alleged actions or statements of our employees or adverse publicity could negatively impact our reputation and significantly harm our business prospects. Damage to our reputation for delivery of a high level of service could undermine the confidence of clients and prospects in our ability to serve them and accordingly affect our earnings negatively. Damage to our reputation also could affect the confidence of rating agencies, regulators, stockholders and other parties in a wide range of transactions that are important to our business and the performance of our common stock. Failure to maintain our reputation ultimately could have an adverse effect on our ability to manage our balance sheet or grow our business. Actions by the financial services industry generally or by other members of or individuals in the financial services industry also could impact our reputation negatively or lead to a general loss of confidence in, or impact market perception of, financial institutions that could negatively affect us. Further, whereas negative public opinion once was driven primarily by adverse news coverage in traditional media, the proliferation of social media channels utilized by us and third parties, as well as the personal use of social media by our employees and others, may increase the risk of negative publicity, including through the rapid dissemination of inaccurate, misleading or false information, which could harm our reputation or have other negative consequences.

We need to invest in innovation constantly, and the inability or failure to do so may affect our businesses and earnings negatively.

Our success in the competitive environment in which we operate requires consistent investment of capital and human resources in innovation, particularly in light of the current “FinTech” environment, in which financial institutions are investing significantly in evaluating new technologies, such as artificial intelligence, machine learning, blockchain and other distributed ledger technologies, and developing potentially industry-changing new products, services and industry standards. Our investment is directed at generating new products and services, and adapting existing products and services to the evolving standards and demands of the marketplace. Among other things, investing in innovation helps us maintain a mix of products and services that keeps pace with our competitors and achieve acceptable margins. Our investment also focuses on enhancing the delivery of our products and services in order to compete successfully for new clients or gain additional business from existing clients, and includes investment in technological innovation as well. Effectively identifying gaps or weaknesses in our product offerings also is important to our success. Falling behind our competition in any of these areas could affect our business opportunities, growth and earnings adversely. There are substantial risks and uncertainties associated with innovation efforts, including an increased risk that new and emerging technologies may expose us to increased cybersecurity and other information technology threats. We must invest significant time and resources in developing and marketing new products and services, and expected timetables for the introduction and development of new products or services may not be achieved and price and profitability targets may not be met. Further, our revenues and costs may fluctuate because new products and services generally require start-up costs while corresponding revenues take time to develop or may not develop at all.

Failure to understand or appreciate fully the risks associated with development or delivery of new product and service offerings may affect our businesses and earnings negatively.

The success of our innovation efforts depends, in part, on the successful implementation of new product and service initiatives. Not only must we keep pace with competitors in the development of these new offerings, but we must accurately price them (as well as existing products) on a risk-adjusted basis and deliver them to clients effectively. Our identification of risks arising from new products and services, both in their design and implementation, and effective responses to those identified risks, including pricing, is key to the success of our efforts at innovation and investment in new product and service offerings.

Our success with large, complex clients requires an understanding of the market and legal, regulatory and accounting standards in various jurisdictions.

A significant portion of our business involves providing certain services to large, complex clients which require an understanding of the market and legal, regulatory and accounting standards in various jurisdictions. Any failure to understand, address or comply with those standards appropriately could affect our growth prospects or affect our reputation

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negatively. We identify and manage risk through our business strategies and plans and our risk management practices and controls. If we fail to identify and manage significant risks successfully, we could incur financial loss, suffer damage to our reputation that could restrict our ability to grow or conduct business profitably, or become subject to regulatory penalties or constraints that could limit some of our activities or make them significantly more expensive. In addition, our businesses and the markets in which we operate are continuously evolving. We may fail to understand fully the implications of changes in legal or regulatory requirements, our businesses or the financial markets or fail to enhance our risk framework to address those changes in a timely fashion. If our risk framework is ineffective, either because it fails to keep pace with changes in the financial markets, legal and regulatory requirements, our businesses, our counterparties, clients or service providers or for other reasons, we could incur losses, suffer reputational damage or find ourselves out of compliance with applicable regulatory or contractual mandates or expectations. These risks are magnified as client requirements become more complex and as our increasingly global business requires end-to-end management of operational and other processes across multiple time zones and many inter-related products and services.

We may take actions to maintain client satisfaction that result in losses or reduced earnings.

We may take action or incur expenses in order to maintain client satisfaction or preserve the usefulness of investments or investment vehicles we manage in light of changes in security ratings, liquidity or valuation issues or other developments, even though we are not required to do so by law or the terms of governing instruments. The risk that we will decide to take actions to maintain client satisfaction that result in losses or reduced earnings is greater in periods when credit or equity markets are deteriorating in value or are particularly volatile and liquidity in markets is disrupted.

Other Risks

Changes in tax laws and interpretations and tax challenges may affect our earnings negatively.

Both U.S. and non-U.S. governments and tax authorities, including states and municipalities, from time to time issue new, or modify existing, tax laws and regulations. These authorities may also issue new, or modify existing, interpretations of those laws and regulations. These new laws, regulations or interpretations, and our actions taken in response to, or reliance upon, such changes in the tax laws may impact our tax position in a manner that affects our earnings negatively.

In the course of our business, we are sometimes subject to challenges from U.S. and non-U.S. tax authorities, including states and municipalities, regarding the amount of taxes due. These challenges may result in adjustments to the timing or amount of taxable income, deductions, tax credits, or the allocation of income among tax jurisdictions, all of which may require a greater provision for taxes or otherwise affect earnings negatively.

Changes in accounting standards may be difficult to predict and could have a material impact on our consolidated financial statements.

New accounting standards, changes to existing accounting standards, or changes in the interpretation of existing accounting standards by the Financial Accounting Standards Board, the International Accounting Standards Board, the SEC or bank regulatory agencies, or otherwise reflected in GAAP, potentially could have a material impact on our financial condition and results of operations. These changes are difficult to predict and in some cases we could be required to apply a new or revised standard retroactively, resulting in the revised treatment of certain transactions or activities, or even the restatement of consolidated financial statements for prior periods.

Our ability to return capital to stockholders is subject to the discretion of our Board of Directors and may be limited by U.S. banking laws and regulations, applicable provisions of Delaware law, or our failure to pay full and timely dividends on our preferred stock and the terms of our outstanding debt.

Holders of our common stock are entitled to receive only such dividends and other distributions of capital as our Board of Directors may declare out of funds legally available for such payments under Delaware law. Although we have declared cash dividends on shares of our common stock historically, we are not required to do so. In addition to the approval of our Board of Directors, our ability to take certain actions, including our ability to pay dividends, repurchase stock, and make other capital distributions, is dependent upon, among other things, their payment being made in accordance with the capital plan rules and capital adequacy standards of the Federal Reserve Board.

A significant source of funds for the Corporation is dividends from the Bank. As a result, our ability to pay dividends on the Corporation’s common stock will depend in large part on the ability of the Bank to pay dividends to the Corporation. There are various legal limitations on the extent to which the Bank and the Corporation’s other subsidiaries can supply funds to the Corporation by dividend or otherwise. Dividend payments by the Bank to the Corporation in the future will require continued generation of earnings by the Bank and could require regulatory approval under certain circumstances. If the Bank is unable to pay dividends to the Corporation in the future, our ability to pay dividends on the Corporation’s common stock would be affected adversely.

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Our ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of our common stock or any of our shares that rank junior to our preferred stock as to the payment of dividends and/or the distribution of any assets on any liquidation, dissolution or winding-up of the Corporation also generally will be prohibited in the event that we do not declare and pay in full dividends on our Series D Non-Cumulative Perpetual Preferred Stock (Series D Preferred Stock) and Series E Non-Cumulative Perpetual Preferred Stock (Series E Preferred Stock). Further, in the future if we default on certain of our outstanding debt we will be prohibited from making dividend payments on our common stock until such payments have been brought current.

Any reduction or elimination of our common stock dividend, or even our failure to maintain the common stock dividend level in a manner comparable to our competitors, likely would have a negative effect on the market price of our common stock. For more information on dividend restrictions, see “Supervision and Regulation—Payment of Dividends” and “Supervision and Regulation—Capital Planning and Stress Testing” in Item 1, “Business.”

ITEM 1B – UNRESOLVED STAFF COMMENTS

None.

ITEM 2 – PROPERTIES

The executive offices of the Corporation and the Bank are located at 50 South La Salle Street in Chicago. This Bank-owned building is occupied by various divisions of Northern Trust’s businesses. Adjacent to this building is one office building in which the Bank leases space principally for corporate support functions. Financial services are provided by the Bank and other subsidiaries of the Corporation through a network of offices in 23 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. The majority of those offices are leased. The Bank’s other primary U.S. operations are located in five facilities: a leased facility at 333 South Wabash Avenue in Chicago; a leased facility in Tempe, Arizona; and one leased and two Bank-owned supplementary operations/data center buildings located in the western suburbs of Chicago. A majority of the Bank’s London-based staff is located at a leased facility at Canary Wharf in London. Additional support and operations activity originates from four facilities in India, two facilities in Ireland, and one facility in the Philippines, all of which are leased. The Bank and the Corporation’s other subsidiaries operate from various other facilities in North America, Europe, the Asia-Pacific region, and the Middle East, most of which are leased.

The Corporation believes that its owned and leased facilities are suitable and adequate for its business needs. The Corporation continues to evaluate its owned and leased facilities and may determine from time to time that certain of its facilities are no longer necessary for its operations. There is no assurance that the Corporation will be able to dispose of any excess facilities or that it will not incur costs in connection with such dispositions, which could be material to its operating results in a given period.

For additional information relating to properties and lease commitments, refer to Note 9, “Buildings and Equipment” and Note 10, “Lease Commitments,” included under Item 8, “Financial Statements and Supplementary Data,” and which information is incorporated herein by reference.

ITEM 3 – LEGAL PROCEEDINGS

The information presented under the caption “Legal Proceedings” in Note 26, “Commitments and Contingent Liabilities,” included under Item 8, “Financial Statements and Supplementary Data,” is incorporated herein by reference.

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable.

SUPPLEMENTAL ITEM – INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The following sets forth certain information with regard to each executive officer of the Corporation.

Michael G. O’Grady - Mr. O’Grady, age 56, joined Northern Trust in 2011 and has served as Chairman of the Board since January 2019, as Chief Executive Officer since 2018 and as President since 2017. Prior to that, Mr. O’Grady served as Executive Vice President and President of Corporate & Institutional Services from 2014 to 2016 and as Chief Financial

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Officer from 2011 to 2014. Before joining Northern Trust, Mr. O’Grady served as a Managing Director in Bank of America Merrill Lynch’s Investment Banking Group.

Lauren E. Allnutt - Ms. Allnutt, age 45, joined Northern Trust in 2008 and has served as an Executive Vice President since November 2020 and as Controller since May 2019. Prior to that, Ms. Allnutt served as manager of Global Financial Control from 2014 to April 2019 and led International Accounting Policy and Control from 2013 to 2014.

Peter B. Cherecwich - Mr. Cherecwich, age 57, joined Northern Trust in 2007 and has served as Executive Vice President and President of Corporate & Institutional Services since 2017. Prior to that, Mr. Cherecwich served as Executive Vice President and President of Global Fund Services from 2010 to 2017 and as Chief Operating Officer of Corporate & Institutional Services from 2008 to 2014. From 2007 to 2008, he served as Head of Institutional Strategy & Product Development. Before joining Northern Trust, Mr. Cherecwich served in several executive and operational roles at State Street Corporation.

Steven L. Fradkin - Mr. Fradkin, age 60, joined Northern Trust in 1985 and has served as Executive Vice President and President of Wealth Management since 2014. Prior to that, Mr. Fradkin served as President of Corporate & Institutional Services from 2009 to 2014. From 2004 to 2009, he served as Chief Financial Officer.

Mark C. Gossett - Mr. Gossett, age 60, joined Northern Trust in 1983 and has served as Executive Vice President and Chief Risk Officer since 2020. Prior to that, Mr. Gossett served as Chief Credit Officer and Head of Market and Liquidity Risk from 2014 to 2020 and as Co-Head of Global Foreign Exchange from 2012 to 2014. Mr. Gossett also previously served as the Chief Risk Officer of Asset Management from 2009 to 2012 and as the Chief Operating Officer of Asset Management from 2005 to 2009.

Susan C. Levy - Ms. Levy, age 64, joined Northern Trust in 2014 and has served as Executive Vice President and General Counsel since that time. Ms. Levy also previously served as Corporate Secretary from 2018 to April 2021. Before joining Northern Trust, Ms. Levy served as Managing Partner of the law firm Jenner & Block from 2008 to 2014, where she was a partner since 1990.

Teresa A. Parker - Ms. Parker, age 61, joined Northern Trust in 1982 and has served as Executive Vice President and President of Europe, Middle East and Africa since 2017. Prior to that, Ms. Parker served as Chief Operating Officer of Corporate & Institutional Services from 2014 to 2017. From 2009 to 2014, she served as Executive Vice President, Corporate & Institutional Services for the Asia-Pacific region.

Thomas A. South - Mr. South, age 52, joined Northern Trust in 1999 and has served as Executive Vice President and Chief Information Officer since 2018. Prior to that, Mr. South served as Chief Business Architect from 2014 to 2018 and as Chief Operating Officer of Operations & Technology from 2013 to 2014.

Joyce M. St. Clair - Ms. St. Clair, age 62, joined Northern Trust in 1992 and has served as Executive Vice President and Chief Human Resources Officer since 2018. Prior to that, Ms. St. Clair served as Executive Vice President and Chief Capital Management Officer from 2015 to 2018, as President of Enterprise Operations from 2014 to 2015, as President of Operations & Technology from 2011 to 2014, and as Chief Risk Officer from 2007 to 2011.

Shundrawn A. Thomas - Mr. Thomas, age 48, joined Northern Trust in 2004 and has served as Executive Vice President and President of Asset Management since 2017. Prior to that, Mr. Thomas served as Executive Vice President and Head of the Funds and Managed Accounts Group from 2014 to 2017 and as Head of the Exchange-Traded Funds Group from 2010 to 2014. Mr. Thomas also previously served as President and Chief Executive Officer of Northern Trust Securities, Inc. from 2009 to 2010 and as Head of Corporate Strategy from 2006 to 2009.

Jason J. Tyler - Mr. Tyler, age 50, joined Northern Trust in 2011 and has served as Executive Vice President and Chief Financial Officer since 2020. Prior to that, Mr. Tyler served as Chief Financial Officer of Wealth Management from 2018 to December 2019, as Global Head of Asset Management’s Institutional Group from 2014 to 2018, and as Global Head of Strategy from 2011 to 2014. Before joining Northern Trust, Mr. Tyler served in certain executive and operational roles at Ariel Investments and Bank One/American National Bank.

All officers are appointed annually by the Board of Directors. Officers continue to hold office until their successors are duly elected or until their death, resignation or removal by the Board.

2021 Annual Report | Northern Trust Corporation 27

PART II

ITEM 5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is listed on The NASDAQ Stock Market LLC under the symbol “NTRS.” There were 1,582 shareholders of record as of January 31, 2022.

The following table shows certain information relating to the Corporation’s purchases of common stock for the three months ended December 31, 2021.

TABLE 3: REPURCHASES OF COMMON STOCK IN THE FOURTH QUARTER OF 2021

PERIOD	TOTAL NUMBER OF SHARES PURCHASED	AVERAGE PRICE PAID PER SHARE		TOTAL NUMBER OF SHARES PURCHASED AS PART OF A PUBLICLY ANNOUNCED PLAN	MAXIMUM NUMBER OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLAN
October 1 - 31, 2021	—	$	—	—	25,000,000
November 1 - 30, 2021	—	—		—	25,000,000
December 1 - 31, 2021	—	—		—	25,000,000
Total (Fourth Quarter)	—	$	—	—	25,000,000

Repurchases prior to October 19, 2021 were made pursuant to the repurchase program announced by the Corporation on July 17, 2018, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. On October 19, 2021, this program was terminated and replaced with a new repurchase program, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. The repurchase authorization approved by the Board of Directors has no expiration date, thus the Corporation retains the ability to repurchase when circumstances warrant and applicable regulation permits. For more information, please refer to Note 15, “Stockholders’ Equity,” provided in Item 8, “Financial Statements and Supplementary Data.”

28 2021 Annual Report | Northern Trust Corporation

COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN

The following graph compares the cumulative total stockholder return on the Corporation’s common stock to the cumulative total return of the S&P 500 Index and the KBW Bank Index for the five fiscal years ended December 31, 2021. The cumulative total stockholder return assumes the investment of $100 in the Corporation’s common stock and in each index on December 31, 2016 and assumes reinvestment of dividends. The KBW Bank Index is a modified-capitalization-weighted index made up of 24 of the largest banking companies in the United States. The Corporation is included in the S&P 500 Index and the KBW Bank Index.

Total Return Assumes $100 Invested on

December 31, 2016 with Reinvestment of Dividends

	DECEMBER 31,
	2016		2017		2018		2019		2020		2021
Northern Trust	$	100	$	114	$	97	$	127	$	115	$	152
S&P 500	100		122		116		153		181		233
KBW Bank Index	100		119		98		133		119		165

ITEM 6 – [RESERVED]

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management’s discussion and analysis of the financial condition and results of operations (MD&A) of Northern Trust Corporation (Corporation) for the year ended December 31, 2021. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report. Investors also should read the section entitled “Forward-Looking Statements.”

BUSINESS OVERVIEW

The Corporation is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business.

The Corporation conducts business through various U.S. and non-U.S. subsidiaries, including The Northern Trust Company (the Bank). The Corporation was formed as a holding company for the Bank in 1971. The Corporation has a global presence with offices in 23 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. Except where the context requires otherwise, the terms “Northern Trust,” “we,” “us,” “our,” “its,” or similar terms refers to the Corporation and its subsidiaries on a consolidated basis.

COVID-19 PANDEMIC AND RECENT EVENTS

During the COVID-19 pandemic, Northern Trust has remained focused on the health and well-being of its workforce, meeting its clients’ needs and supporting its communities. The majority of Northern Trust’s workforce continues to work remotely and the Corporation continues to adjust its response to the pandemic as needed. The timing of any return to office for our workforce will be driven by the operational, business, and client needs of each location, and will be guided by health and safety guidelines and relevant government mandates. In addition, as the prolonged public health crisis has unfolded, Northern Trust has responded by providing additional health and well-being resources to its employees, including expanded virtual access to health care and well-being programs and diversity, equity, and inclusion resources; a well-being learning center with tools for working effectively in a virtual environment; and virtual focus groups allowing employees to provide feedback and build connections with colleagues. Northern Trust also provided additional paid-time-off for a COVID-19 diagnosis and supported all employees electing to receive the COVID-19 vaccine with additional paid-time-off to obtain and recover from the primary series vaccine or booster shot. To facilitate COVID-19 vaccinations in India and the Philippines, Northern Trust hosted on-site vaccine drives (in India) and participated in a program which provided access to vaccines for our employees (in the Philippines). Northern Trust also reimbursed vaccine costs for employees and their immediate family members in India.

During the pandemic, Northern Trust offered credit assistance to impacted clients under a government lending program and provided payment deferrals. In addition, there have been two forms of relief provided to lenders exempting certain loan modifications which would otherwise be classified as troubled debt restructuring from such classification. Northern Trust elected to apply each of these forms of relief, when applicable, in providing borrowers with qualifying loan modifications, including payment deferrals, in response to the COVID-19 pandemic. Both of these assistance measures have declined since the start of the pandemic. For further information, please refer to Note 6, “Loans and Leases,” provided in Item 8. “Financial Statements and Supplementary Data.”

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL OVERVIEW

TABLE 4: FINANCIAL HIGHLIGHTS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income	$	5,081.8		$	4,657.6		$	4,395.2
Net Interest Income	1,382.7			1,443.2			1,677.9
Total Revenue	$	6,464.5		$	6,100.8		$	6,073.1
Provision for Credit Losses	(81.5)			125.0			(14.5)
Noninterest Expense	4,535.9			4,348.2			4,143.5
Income before Income Taxes	$	2,010.1		$	1,627.6		$	1,944.1
Provision for Income Taxes	464.8			418.3			451.9
Net Income	$	1,545.3		$	1,209.3		$	1,492.2
Preferred Stock Dividends	41.8			56.2			46.4
Net Income Applicable to Common Stock	$	1,503.5		$	1,153.1		$	1,445.8
PER COMMON SHARE
Net Income – Basic	$	7.16		$	5.48		$	6.66
– Diluted	7.14			5.46			6.63
Cash Dividends Declared Per Common Share	2.80			2.80			2.60
Book Value – End of Period (EOP)	53.58			51.87			46.82
Market Price – EOP	119.61			93.14			106.24
SELECTED RATIOS AND METRICS
Return on Average Common Equity	13.9		%	11.2		%	14.9		%
Return on Average Assets	0.99			0.88			1.27
Dividend Payout Ratio	39.2			51.3			39.2
Average Stockholders’ Equity to Average Assets	7.5			8.2			9.1

Net Income increased $336.0 million, or 28%, to $1.55 billion in 2021 from $1.21 billion in 2020. Earnings per diluted common share was $7.14 in 2021 compared to $5.46 in 2020. Return on average common equity increased to 13.9% in 2021 from 11.2% in 2020.

Revenue increased $363.7 million to $6.46 billion in 2021 from $6.10 billion in the prior year, primarily driven by increases in Trust, Investment and Other Servicing Fees of 9% and Other Operating Income of 26%, partially offset by a decrease in Net Interest Income of 4%.

Client assets under custody/administration (AUC/A) increased 12% from $14.53 trillion as of December 31, 2020 to $16.25 trillion as of December 31, 2021, primarily reflecting favorable markets and net inflows, partially offset by unfavorable currency translation. Client assets under custody, a component of AUC/A, increased 12% from $11.26 trillion as of December 31, 2020 to $12.61 trillion as of December 31, 2021. Client assets under custody included $8.24 trillion of global custody assets as of December 31, 2021, which increased 11% from $7.42 trillion as of December 31, 2020. Client assets under management increased 14% to $1.61 trillion as of December 31, 2021 from $1.41 trillion at December 31, 2020 due to favorable markets and net inflows.

The Provision for Credit Losses in 2021 was a release of credit reserves of $81.5 million as compared to a provision of $125.0 million in 2020. The release of credit reserves during 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional portfolio. The prior-year provision primarily reflected an increase in the reserve evaluated on a collective basis. The increase in the collective basis reserve was primarily driven by current and projected economic conditions at the time and downgrades in the portfolio, both resulting from the COVID-19 pandemic and related market and economic impacts. Increases in the collective basis reserve were primarily in the commercial and institutional and commercial real estate portfolios. In addition, a $13.7 million increase in the allowance for credit losses, with a corresponding cumulative effect adjustment to decrease retained earnings by $10.1 million, net of income taxes, was recorded on January 1, 2020 upon adoption of the Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments.”

2021 Annual Report | Northern Trust Corporation 31

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Noninterest Expense of $4.54 billion in 2021 increased $187.7 million, or 4%, from $4.35 billion in 2020, primarily reflecting increased Outside Services, Compensation, Equipment and Software and Employee Benefits, partially offset by lower Other Operating Expense and Occupancy. Employee Benefits expense in 2021 included pension settlement charges of $27.9 million.

The Provision for Income Taxes in 2021 totaled $464.8 million, representing an effective tax rate of 23.1%. The Provision for Income Taxes in 2020 totaled $418.3 million, representing an effective tax rate of 25.7%. The decrease in the effective tax rate was primarily driven by the lower net tax impact from international operations and $26.8 million of prior-year tax expense related to the reversal of tax benefits previously recognized through earnings.

Northern Trust continued to maintain a strong capital position during 2021, with all capital ratios exceeding those required for classification as “well-capitalized” under federal bank regulatory capital requirements. For additional information, please refer to the “Capital Management” section.

CONSOLIDATED RESULTS OF OPERATIONS

The following information summarizes our consolidated results of operations for 2021 compared to 2020. For a discussion related to the consolidated results of operations for 2020 compared to 2019, refer to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K), which was filed with the United States Securities and Exchange Commission on February 23, 2021.

Revenue

Northern Trust generates the majority of its revenue from Noninterest Income that primarily consists of Trust, Investment and Other Servicing Fees. Net Interest Income comprises the remainder of revenue and consists of Interest Income generated by earning assets, net of Interest Expense on deposits and borrowed funds.

Revenue in 2021 of $6.46 billion increased $363.7 million, or 6%, from $6.10 billion in 2020. Noninterest Income represented 79% and 76% of total revenue in 2021 and 2020, respectively, and totaled $5.08 billion in 2021, which increased $424.2 million, or 9%, from $4.66 billion in 2020.

Noninterest Income in 2021 increased primarily reflecting higher Trust, Investment and Other Servicing Fees and Other Operating Income. Trust, Investment and Other Servicing Fees of $4.36 billion in 2021 increased $366.1 million, or 9%, from $4.00 billion in 2020, primarily due to favorable markets and new business, partially offset by higher money market mutual fund fee waivers. Other Operating Income of $243.9 million in 2021 increased $49.9 million, or 26%, from $194.0 million in the prior year, primarily due to higher banking and credit-related service charges, distributions from investments in community development projects and gains from property sales.

Net Interest Income on a fully taxable equivalent (FTE) basis in 2021 of $1.42 billion decreased $59.3 million, or 4%, from $1.48 billion in 2020, due to a decreased net interest margin, partially offset by higher levels of average earning assets. The net interest margin on an FTE basis decreased to 0.99% in 2021 from 1.19% in 2020, primarily due to lower average interest rates, partially offset by favorable balance sheet volume and mix shift. Average earning assets increased $19.7 billion, or 16%, from $124.1 billion in 2020 to $143.9 billion in 2021, primarily reflecting higher levels of short-term interest bearing deposits, Securities, and Loans and Leases.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Additional information regarding Northern Trust’s revenue by type is provided in the following table.

TABLE 5: REVENUE

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Foreign Exchange Trading Income	292.6		290.4		250.9
Treasury Management Fees	44.3		45.4		44.5
Security Commissions and Trading Income	140.2		133.2		103.6
Other Operating Income	243.9		194.0		145.5
Investment Security Losses, net	(0.3)		(0.4)		(1.4)
Total Noninterest Income	$	5,081.8	$	4,657.6	$	4,395.2
Net Interest Income (1)	1,382.7		1,443.2		1,677.9
Total Revenue	$	6,464.5	$	6,100.8	$	6,073.1

(1) Net Interest Income stated on a GAAP basis. Net Interest Income on an FTE basis includes FTE adjustments of $35.6 million, $34.4 million, and $32.8 million for 2021, 2020, and 2019, respectively. A reconciliation of total consolidated revenue, Net Interest Income and net interest margin on a GAAP basis to revenue, Net Interest Income and net interest margin on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided in “Supplemental Information—Reconciliation to Fully Taxable Equivalent” within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section.

Trust, Investment and Other Servicing Fees

Trust, Investment and Other Servicing Fees were $4.36 billion in 2021 compared with $4.00 billion in 2020, and are based primarily on the market value of assets held in custody, managed or serviced; the volume of transactions; securities lending volume and spreads; and fees for other services rendered. Certain market value calculations on which fees are based are performed on a monthly or quarterly basis in arrears. Low-interest-rate environments have historically had a negative impact on fees earned on certain products.

Beginning in the second quarter of 2020, the Corporation began to waive a portion of certain fees associated with money market mutual funds due to the low-interest-rate environment. Northern Trust voluntarily waived $287.8 million and $29.3 million of money market mutual fund fees for the years ended December 31, 2021 and 2020, respectively. These fee waivers are impacted by the level of yields earned and account balances in certain funds, as the yields in these funds remain insufficient to pay the stated fees associated with such funds. If the level of short-term interest rates were to increase as currently expected, fee waivers would likely decline.

The components of Trust, Investment and Other Servicing Fees are provided in the following table.

TABLE 6: TRUST, INVESTMENT AND OTHER SERVICING FEES

	FOR THE YEAR ENDED DECEMBER 31,						CHANGE
($ In Millions)	2021		2020		2019		2021 / 2020		2020 / 2019
C&IS Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	1,818.8	$	1,586.1	$	1,549.3	15	%	2	%
Investment Management	443.5		511.1		445.7		(13)		15
Securities Lending	76.7		88.0		87.2		(13)		1
Other	148.3		136.4		129.3		9		6
Total C&IS Trust, Investment and Other Servicing Fees	$	2,487.3	$	2,321.6	$	2,211.5	7	%	5	%
Wealth Management Trust, Investment and Other Servicing Fees
Central	$	698.7	$	607.3	$	619.3	15	%	(2)	%
East	509.3		442.1		422.2		15		5
West	380.2		337.7		330.9		13		2
Global Family Office	285.6		286.3		268.2		—		7
Total Wealth Management Trust, Investment and Other Servicing Fees	$	1,873.8	$	1,673.4	$	1,640.6	12	%	2	%
Total Consolidated Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1	9	%	4	%

Corporate & Institutional Services

C&IS Trust, Investment and Other Servicing Fees are primarily attributable to services related to custody, fund administration, investment management, and securities lending. Custody and Fund Administration fees, the largest component of C&IS fees, are driven primarily by values of client assets under custody/administration, transaction volumes and the number of accounts. The asset values used to calculate these fees vary depending on the individual fee

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

arrangements negotiated with each client. Custody fees related to asset values are client specific and are priced based on month-end market values, quarter-end market values, or the average of month-end market values for the quarter. The fund administration fees that are asset-value-related are priced using month-end, quarter-end, or average daily balances. Investment Management fees are based generally on market values of client assets under management throughout the period. Typically, the asset values used to calculate fee revenue are based on a one-month or one-quarter lag.

Securities Lending revenue is affected by market values; the demand for securities to be lent, which drives volumes; and the interest rate spread earned on the investment of cash deposited by investment firms as collateral for securities they have borrowed. The other services fee category in C&IS includes such products as investment risk and analytical services, benefit payments, and other services. Revenue from these products is based generally on the volume of services provided or a fixed fee.

Custody and Fund Administration fees increased from 2020 to 2021 primarily due to favorable markets, new business and favorable currency translation. Investment Management fees decreased from 2020 to 2021 primarily due to higher money market mutual fund fee waivers, partially offset by favorable markets and new business.

The following tables provide a breakdown of the C&IS assets under custody and under management.

TABLE 7: C&IS ASSETS UNDER CUSTODY

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
North America	$	6,566.4	$	5,746.4	$	4,516.0	14	%	27	%
Europe, Middle East, and Africa	3,894.3		3,478.2		2,998.5		12		16
Asia Pacific	898.5		976.2		820.3		(8)		19
Securities Lending	195.6		186.9		163.0		5		15
Total Assets Under Custody	$	11,554.8	$	10,387.7	$	8,497.8	11	%	22	%

TABLE 8: C&IS ASSETS UNDER MANAGEMENT

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
North America	$	789.2	$	676.8	$	588.4	17	%	15	%
Europe, Middle East, and Africa	148.5		143.5		125.2		4		15
Asia Pacific	57.7		50.3		40.9		15		23
Securities Lending	195.6		186.9		163.0		5		15
Total Assets Under Management	$	1,191.0	$	1,057.5	$	917.5	13	%	15	%

Cash and other assets deposited by investment firms as collateral for securities borrowed from custody clients are managed by Northern Trust and are included in assets under custody and under management. This securities lending collateral totaled $195.6 billion and $186.9 billion at December 31, 2021 and 2020, respectively.

Wealth Management

Wealth Management fee income is calculated primarily based on market values and is impacted by both one-month and one-quarter lagged asset values. Fee income in the regions (Central, East and West) increased from 2020 to 2021, primarily due to favorable markets and new business, partially offset by higher money market mutual fund fee waivers. Global Family Office fee income decreased slightly primarily due to higher money market mutual fund fee waivers, partially offset by favorable markets and new business. The following tables provide a summary of Wealth Management assets under custody and under management.

TABLE 9: WEALTH MANAGEMENT ASSETS UNDER CUSTODY

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
Global Family Office	$	742.6	$	600.7	$	474.1	24	%	27	%
Central	139.1		120.0		115.1		16		4
East	105.0		89.1		81.7		18		9
West	70.8		65.3		64.8		8		1
Total Assets Under Custody	$	1,057.5	$	875.1	$	735.7	21	%	19	%

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TABLE 10: WEALTH MANAGEMENT ASSETS UNDER MANAGEMENT

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
Global Family Office	$	144.9	$	114.0	$	94.2	27	%	21	%
Central	128.7		109.3		104.4		18		5
East	84.5		73.3		66.8		15		10
West	58.0		51.2		48.4		13		6
Total Assets Under Management	$	416.1	$	347.8	$	313.8	20	%	11	%

The Wealth Management regions shown are comprised of the following: Central includes Illinois, Michigan, Minnesota, Missouri, Ohio and Wisconsin; East includes Connecticut, Delaware, Florida, Georgia, Massachusetts, New York, Pennsylvania, and Washington, D.C.; West includes Arizona, California, Colorado, Nevada, Texas and Washington. Global Family Office provides customized services, including but not limited to investment consulting, global custody, fiduciary, and private banking, to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe.

Market Indices

The following tables present selected market indices and the percentage changes year over year to provide context regarding equity and fixed income market impacts on the Corporation’s results.

TABLE 11: EQUITY MARKET INDICES

	DAILY AVERAGES				YEAR-END
	2021	2020	CHANGE		2021	2020	CHANGE
S&P 500	4,271	3,218	33	%	4,766	3,756	27	%
MSCI EAFE (U.S. dollars)	2,289	1,853	24		2,336	2,148	9
MSCI EAFE (local currency)	1,294	1,074	21		1,362	1,174	16

TABLE 12: FIXED INCOME MARKET INDICES

	AS OF DECEMBER 31,
	2021	2020	CHANGE
Barclays Capital U.S. Aggregate Bond Index	2,355	2,392	(2)	%
Barclays Capital Global Aggregate Bond Index	532	559	(5)

Client Assets

Northern Trust, in the normal course of business, holds assets under custody/administration and management in a fiduciary or agency capacity for its clients. In accordance with GAAP, these assets are not assets of Northern Trust and are not included in its consolidated balance sheets. AUC/A and assets under management are a driver of our Trust, Investment and Other Servicing Fees. For the purposes of disclosing AUC/A, to the extent that both custody and administration services are provided, the value of the assets is included only once in this amount.

At December 31, 2021, AUC/A increased from December 31, 2020, primarily reflecting favorable markets and net inflows, partially offset by unfavorable currency translation. Assets under custody, a component of AUC/A, at December 31, 2021, increased from December 31, 2020, and included $8.24 trillion of global custody assets, compared to $7.42 trillion at December 31, 2020.

The following table presents AUC/A by reporting segment.

TABLE 13: ASSETS UNDER CUSTODY/ADMINISTRATION BY REPORTING SEGMENT

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 /2020		2020 /2019
Corporate & Institutional Services	$	15,183.2	$	13,653.1	$	11,311.6	11	%	21	%
Wealth Management	1,065.6		879.4		738.8		21		19
Total Assets Under Custody/Administration	$	16,248.8	$	14,532.5	$	12,050.4	12	%	21	%

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents assets under custody, a component of AUC/A, by reporting segment.

TABLE 14: ASSETS UNDER CUSTODY BY REPORTING SEGMENT

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 /2020		2020 / 2019
Corporate & Institutional Services	$	11,554.8	$	10,387.7	$	8,497.8	11	%	22	%
Wealth Management	1,057.5		875.1		735.7		21		19
Total Assets Under Custody	$	12,612.3	$	11,262.8	$	9,233.5	12	%	22	%

Consolidated assets under custody increased from the prior year, primarily reflecting favorable markets and net inflows, partially offset by unfavorable currency translation.

The following table presents the investment allocation of Northern Trust’s custodied assets by reporting segment.

TABLE 15: ALLOCATION OF ASSETS UNDER CUSTODY

	DECEMBER 31,
	2021						2020						2019
	C&IS		WM		TOTAL		C&IS		WM		TOTAL		C&IS		WM		TOTAL
Equities	47	%	61	%	48	%	46	%	62	%	47	%	45	%	59	%	46	%
Fixed Income Securities	35		13		33		36		15		34		37		18		35
Cash and Other Assets	16		26		17		16		23		17		16		23		17
Securities Lending Collateral	2		—		2		2		—		2		2		—		2

The following table presents Northern Trust’s assets under custody by investment type.

TABLE 16: ASSETS UNDER CUSTODY BY INVESTMENT TYPE

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
Equities	$	6,049.1	$	5,293.9	$	4,298.6	14	%	23	%
Fixed Income Securities	4,139.6		3,870.9		3,236.5		7		20
Cash and Other Assets	2,228.0		1,911.1		1,535.3		17		24
Securities Lending Collateral	195.6		186.9		163.1		5		15
Total Assets Under Custody	$	12,612.3	$	11,262.8	$	9,233.5	12	%	22	%

The following table presents Northern Trust’s assets under management by reporting segment.

TABLE 17: ASSETS UNDER MANAGEMENT BY REPORTING SEGMENT

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
Corporate & Institutional Services	$	1,191.0	$	1,057.5	$	917.5	13	%	15	%
Wealth Management	416.1		347.8		313.8		20		11
Total Assets Under Management	$	1,607.1	$	1,405.3	$	1,231.3	14	%	14	%

Assets under management at the end of 2021 increased from 2020. The increase primarily reflected favorable markets and net inflows.

36 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following tables present the investment allocation and management style of Northern Trust’s assets under management by reporting segment.

TABLE 18: ASSETS UNDER MANAGEMENT BY INVESTMENT TYPE

	DECEMBER 31,
	2021						2020						2019
	C&IS		WM		TOTAL		C&IS		WM		TOTAL		C&IS		WM		TOTAL
Equities	53	%	55	%	53	%	52	%	52	%	52	%	53	%	53	%	53	%
Fixed Income Securities	11		20		13		11		25		15		12		25		16
Cash and Other Assets	20		25		22		19		23		20		17		22		18
Securities Lending Collateral	16		—		12		18		—		13		18		—		13

TABLE 19: ASSETS UNDER MANAGEMENT BY MANAGEMENT STYLE

	DECEMBER 31,
	2021						2020						2019
	C&IS		WM		TOTAL		C&IS		WM		TOTAL		C&IS		WM		TOTAL
Index	60	%	24	%	50	%	58	%	24	%	50	%	59	%	27	%	51	%
Active	37		39		38		38		39		38		37		36		37
Multi-Manager	3		9		5		4		8		5		4		8		5
Other	—		28		7		—		29		7		—		29		7

Other Noninterest Income

The components of other noninterest income, and a discussion of significant changes during 2021 and 2020, are provided below.

TABLE 20: OTHER NONINTEREST INCOME

	FOR THE YEAR ENDED DECEMBER 31,						CHANGE
($ In Millions)	2021		2020		2019		2021 / 2020		2020 / 2019
Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9	1	%	16	%
Treasury Management Fees	44.3		45.4		44.5		(3)		2
Security Commissions and Trading Income	140.2		133.2		103.6		5		29
Other Operating Income	243.9		194.0		145.5		26		33
Investment Security Losses, net	(0.3)		(0.4)		(1.4)		N/M		N/M
Total Other Noninterest Income	$	720.7	$	662.6	$	543.1	9	%	22	%

Foreign Exchange Trading Income

Northern Trust provides foreign exchange services in the normal course of business as an integral part of its global custody services. Active management of currency positions, within conservative limits, also contributes to foreign exchange trading income. Foreign Exchange Trading Income in 2021 increased from 2020, primarily driven by higher client volumes, partially offset by lower foreign exchange swap activity in Treasury.

Treasury Management Fees

Treasury Management Fees, generated from cash and treasury management products and services provided to clients, in 2021 decreased from 2020.

Security Commissions and Trading Income

Security Commissions and Trading Income, generated primarily from securities brokerage services provided by Northern Trust Securities, Inc., in 2021 increased from 2020, primarily driven by higher revenue from core brokerage, partially offset by lower revenue from interest rate swaps.

Other Operating Income

Other Operating Income in 2021 increased from 2020 primarily due to higher banking and credit-related service charges, distributions from investments in community development projects and gains from property sales.

Please refer to Note 20, “Other Operating Income” included under Item 8, “Financial Statements and Supplementary Data,” for additional details related to other operating income.

2021 Annual Report | Northern Trust Corporation 37

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Investment Security Losses, Net

ASU 2016-13, adopted on January 1, 2020, replaced the legacy OTTI model with an estimated credit loss model. Refer to the caption "Investment Security Gains and Losses” in Note 4, “Securities,” and the caption “Allowance for Held to Maturity Debt Securities Portfolio” in Note 7, “Allowance for Credit Losses” included under Item 8, “Financial Statements and Supplementary Data.”

Net Interest Income

Net Interest Income is defined as the total of Interest Income and amortized fees on earning assets, less Interest Expense on deposits and borrowed funds, adjusted for the impact of interest-related hedging activity. Earning assets — including Federal Funds Sold, Securities Purchased under Agreements to Resell, Interest-Bearing Due From Banks, Federal Reserve and Other Central Bank Deposits and Other, Securities, and Loans and Leases — are financed by a large base of interest-bearing funds that include client deposits, short-term borrowings, Senior Notes and Long-Term Debt. Short-term borrowings include Federal Funds Purchased, Securities Sold Under Agreements to Repurchase, and Other Borrowings. Earning assets also are funded by noninterest-related funds, which include demand deposits and Stockholders’ Equity. Net Interest Income is subject to variations in the level and mix of earning assets and interest-bearing funds and their relative sensitivity to interest rates. In addition, the levels of nonaccruing assets and client compensating deposit balances used to pay for services impact Net Interest Income.

Net interest margin is the difference between what we earn on our assets and what we pay for deposits and other sources of funding. The direction and level of interest rates are important factors in our earnings. Net interest margin is calculated by dividing annualized Net Interest Income by average interest-earning assets.

Net Interest Income stated on an FTE basis is a non-GAAP financial measure that facilitates the analysis of asset yields. Management believes an FTE presentation provides a clearer indication of net interest margins 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. A reconciliation of Net Interest Income on a GAAP basis to Net Interest Income on an FTE basis is provided in “Supplemental Information—Reconciliation to Fully Taxable Equivalent” within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section.

38 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following tables present an analysis of average daily balances and interest rates affecting Net Interest Income and an analysis of Net Interest Income changes.

TABLE 21: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME (INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)(1)

	2021						2020						2019
($ In Millions)	INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)		INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)		INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)
INTEREST-EARNING ASSETS
Federal Reserve and Other Central Bank Deposits and Other(2)	$	11.3	$	39,040.8	0.03	%	$	28.8	$	27,921.4	0.10	%	$	181.7	$	18,527.7	0.98	%
Interest-Bearing Due from and Deposits with Banks(3)	9.1		5,779.7		0.16		22.4		5,400.8		0.41		72.4		5,996.7		1.21
Federal Funds Sold	—		0.1		0.41		—		2.3		1.37		0.4		12.8		2.73
Securities Purchased under Agreements to Resell	3.5		1,067.4		0.33		3.9		1,253.1		0.31		17.5		835.0		2.10
Securities
U.S. Government	29.5		2,685.4		1.10		63.0		4,256.7		1.48		110.4		5,296.5		2.09
Obligations of States and Political Subdivisions	69.9		3,532.0		1.98		48.2		2,194.3		2.20		24.4		980.5		2.49
Government Sponsored Agency	296.0		24,546.2		1.21		409.0		23,970.4		1.71		583.6		22,634.1		2.58
Other(4)	307.2		30,013.9		1.02		324.1		25,635.1		1.26		381.6		21,773.3		1.75
Total Securities	702.6		60,777.5		1.16		844.3		56,056.5		1.51		1,100.0		50,684.4		2.17
Loans and Leases(5)	715.6		37,207.5		1.92		778.5		33,498.8		2.32		1,160.7		31,052.8		3.74
Total Interest-Earning Assets	1,442.1		143,873.0		1.00		1,677.9		124,132.9		1.35		2,532.7		107,109.4		2.36
Cash and Due from Banks and Other Central Bank Deposits(6)	—		2,285.9		—		—		2,603.0		—		—		2,393.6		—
Other Noninterest-Earning Assets	—		10,204.3		—		—		10,075.2		—		—		8,048.4		—
Total Assets	$	—	$	156,363.2	—	%	$	—	$	136,811.1	—	%	$	—	$	117,551.4	—	%
AVERAGE SOURCE OF FUNDS
Deposits
Savings, Money Market, and Other	$	12.8	$	28,339.0	0.05	%	$	47.6	$	23,396.4	0.20	%	$	160.8	$	16,577.8	0.97	%
Savings Certificates and Other Time	4.8		887.2		0.55		16.5		1,266.4		1.30		16.2		867.5		1.86
Non-U.S. Offices – Interest-Bearing	(78.9)		69,713.4		(0.11)		(15.7)		60,486.3		(0.03)		311.9		54,885.2		0.57
Total Interest-Bearing Deposits	(61.3)		98,939.6		(0.06)		48.4		85,149.1		0.06		488.9		72,330.5		0.68
Federal Funds Purchased	(0.4)		190.6		(0.19)		2.2		980.9		0.22		25.9		1,267.4		2.05
Securities Sold under Agreements to Repurchase	0.2		232.0		0.07		1.0		218.3		0.47		6.4		339.0		1.89
Other Borrowings	14.2		5,049.8		0.28		45.3		6,401.1		0.71		181.7		7,752.5		2.34
Senior Notes	48.3		2,856.4		1.69		72.7		3,233.8		2.24		72.6		2,389.1		3.04
Long-Term Debt	21.1		1,166.1		1.81		26.5		1,189.2		2.24		38.3		1,139.0		3.36
Floating Rate Capital Debt	1.7		218.4		0.78		4.2		277.7		1.52		8.2		277.6		2.98
Total Interest-Related Funds	23.8		108,652.9		0.02		200.3		97,450.1		0.21		822.0		85,495.1		0.96
Interest Rate Spread	—		—		0.98		—		—		1.14		—		—		1.40
Demand and Other Noninterest-Bearing Deposits	—		31,143.5		—		—		23,362.0		—		—		17,455.5		—
Other Noninterest-Bearing Liabilities	—		4,869.8		—		—		4,806.4		—		—		3,952.4		—
Stockholders’ Equity	—		11,697.0		—		—		11,192.6		—		—		10,648.4		—
Total Liabilities and Stockholders’ Equity	$	—	$	156,363.2	—	%	$	—	$	136,811.1	—	%	$	—	$	117,551.4	—	%
Net Interest Income/Margin (FTE Adjusted)	$	1,418.3	$	—	0.99	%	$	1,477.6	$	—	1.19	%	$	1,710.7	$	—	1.60	%
Net Interest Income/Margin (Unadjusted)	$	1,382.7	$	—	0.96	%	$	1,443.2	$	—	1.16	%	$	1,677.9	$	—	1.57	%

(1) Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source income and assets. Non-U.S. source income and assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision revenues, expenses and assets between U.S. and non-U.S.-domiciled customers. On the basis of averages, the percentage of total assets attributable to foreign activities was 19%, 20% and 23% as of December 31, 2021, 2020 and 2019, respectively. On the basis of averages, the percentage of total liabilities attributable to foreign activities was 58%, 56% and 53% as of December 31, 2021, 2020 and 2019, respectively. For additional information, refer to the Geographic Area Information section of Note 32, “Reporting Segments and Related Information,” provided in Item 8, “Financial Statements and Supplementary Data.”

(2) Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses, which are classified in Other Assets on the consolidated balance sheets.

(3) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(4) Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets.

(5) Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.

(6) Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits on the consolidated balance sheets.

(7) Rate calculations are based on actual balances rather than the rounded amounts presented in the Average Consolidated Balance Sheets with Analysis of Net Interest Income.

2021 Annual Report | Northern Trust Corporation 39

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TABLE 22: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE(1)

(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)	2021/2020 CHANGE DUE TO						2020/2019 CHANGE DUE TO
(In Millions)	AVERAGE BALANCE		AVERAGE RATE		NET (DECREASE) INCREASE		AVERAGE BALANCE		AVERAGE RATE		NET (DECREASE) INCREASE
Increase (Decrease) in Net Interest Income (FTE)
Federal Reserve and Other Central Bank Deposits and Other	$	7.8	$	(25.3)	$	(17.5)	$	62.5	$	(215.4)	$	(152.9)
Interest-Bearing Due from and Deposits with Banks	1.5		(14.8)		(13.3)		(6.5)		(43.5)		(50.0)
Federal Funds Sold	—		—		—		(0.2)		(0.2)		(0.4)
Securities Purchased under Agreements to Resell	(0.6)		0.2		(0.4)		6.1		(19.7)		(13.6)
Securities
U.S. Government	(19.8)		(13.7)		(33.5)		(19.0)		(28.4)		(47.4)
Obligations of States and Political Subdivisions	26.9		(5.2)		21.7		26.9		(3.1)		23.8
Government Sponsored Agency	9.6		(122.6)		(113.0)		32.7		(207.3)		(174.6)
Other	46.9		(63.8)		(16.9)		61.6		(119.1)		(57.5)
Total Securities	63.6		(205.3)		(141.7)		102.2		(357.9)		(255.7)
Loans and Leases	164.0		(226.9)		(62.9)		177.6		(559.8)		(382.2)
Total Interest Income	$	236.3	$	(472.1)	$	(235.8)	$	341.7	$	(1,196.5)	$	(854.8)
Interest-Bearing Deposits
Savings, Money Market and Other	$	7.8	$	(42.6)	$	(34.8)	$	48.5	$	(161.7)	$	(113.2)
Savings Certificates and Other Time	(4.0)		(7.7)		(11.7)		(9.3)		9.6		0.3
Non-U.S. Offices - Interest-Bearing	33.4		(96.6)		(63.2)		29.2		(356.8)		(327.6)
Total Interest-Bearing Deposits	37.2		(146.9)		(109.7)		68.4		(508.9)		(440.5)
Federal Funds Purchased	(0.8)		(1.8)		(2.6)		(4.8)		(18.9)		(23.7)
Securities Sold under Agreements to Repurchase	0.1		(0.9)		(0.8)		(1.7)		(3.7)		(5.4)
Other Borrowings	(8.1)		(23.0)		(31.1)		(27.3)		(109.1)		(136.4)
Senior Notes	(7.9)		(16.5)		(24.4)		22.0		(21.9)		0.1
Long-Term Debt	(0.5)		(4.9)		(5.4)		13.5		(25.3)		(11.8)
Floating Rate Capital Debt	(0.8)		(1.7)		(2.5)		—		(4.0)		(4.0)
Total Interest Expense	$	19.2	$	(195.7)	$	(176.5)	$	70.1	$	(691.8)	$	(621.7)
(Decrease) Increase in Net Interest Income (FTE)	$	217.1	$	(276.4)	$	(59.3)	$	271.6	$	(504.7)	$	(233.1)

(1) Changes not due solely to average balance changes or rate changes are allocated proportionately to average balance and rate based on their relative absolute magnitudes.

Notes:    Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. Total taxable equivalent interest adjustments amounted to $35.6 million in 2021, $34.4 million in 2020 and $32.8 million in 2019. A reconciliation of net interest income and net interest margin on a GAAP basis to net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Supplemental Information—Reconciliation to Fully Taxable Equivalent” within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

Interest revenue on cash collateral positions is reported above within Interest-Bearing Due from and Deposits with Banks and within Loans and Leases. Interest expense on cash collateral positions is reported above within Non-U.S. Offices Interest-Bearing Deposits. Related cash collateral received from and deposited with derivative counterparties is recorded net of the associated derivative contract in Other Assets and Other Liabilities, respectively.

Net Interest Income in 2021 decreased from 2020. Net Interest Income, stated on an FTE basis, decreased from 2020, due to a lower net interest margin, partially offset by higher levels of average earning assets. Average earning assets increased in 2021 from 2020, primarily reflecting higher levels of short-term interest bearing deposits, Securities, and Loans and Leases. Funding of the balance sheet reflected higher levels of client deposits.

The net interest margin in 2021 decreased from 2020. The net interest margin on an FTE basis in 2021 decreased from 2020, primarily due to lower average interest rates, partially offset by favorable balance sheet volume and mix shift.

Federal Reserve and Other Central Bank Deposits and Other averaged $39.0 billion in 2021, which increased $11.1 billion, or 40%, from $27.9 billion in 2020, which resulted from significant deposit inflows. The higher level of client deposits were primarily placed with the Federal Reserve and other central banks and in the securities portfolio and the loan portfolio. Average Securities were $60.8 billion and increased $4.7 billion, or 8%, from $56.1 billion in the prior-year period and include certain community development investments, Federal Home Loan Bank stock, and Federal Reserve stock of $925.5 million, $158.0 million and $70.0 million, respectively, which are recorded in Other Assets on the consolidated balance sheets. Average taxable Securities were $57.8 billion in 2021 and $50.9 billion in 2020. Average

40 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $3.0 billion in 2021 and $5.2 billion in 2020. Interest-Bearing Due From and Deposits with Banks averaged $5.8 billion in 2021 and $5.4 billion in 2020.

Loans and Leases averaged $37.2 billion, which increased $3.7 billion, or 11%, from $33.5 billion in 2020, primarily reflecting higher levels of private client, commercial real estate, non-U.S. loans, commercial and institutional, and residential real estate loans. Private client loans averaged $13.7 billion and increased $2.2 billion, or 20%, from $11.5 billion for the prior-year period. Commercial real estate loans averaged $4.0 billion and increased $723.3 million, or 22%, from $3.3 billion for the prior-year period. Non-U.S. loans averaged $2.5 billion and increased $557.6 million, or 28%, from $2.0 billion for the prior-year period. Commercial and institutional loans averaged $10.4 billion and increased $81.5 million, or 1%, from $10.3 billion for the prior-year period. Residential real estate loans averaged $6.2 billion and increased $74.3 million, or 1%, from $6.1 billion for the prior-year period.

Northern Trust utilizes a diverse mix of funding sources. Average Interest-Bearing Deposits increased $13.8 billion, or 16%, to $98.9 billion in 2021 from $85.1 billion in 2020. Average Interest-Related Funds increased $11.2 billion, or 11%, to $108.7 billion in 2021 from $97.5 billion in 2020. The balances within short-term borrowing classifications vary based on funding requirements and strategies, interest rate levels, changes in the volume of lower-cost deposit sources, and the availability of collateral to secure these borrowings. Average net noninterest-related funds increased $8.5 billion, or 32%, to $35.2 billion in 2021 from $26.7 billion in 2020, primarily resulting from higher levels of Demand and Other Noninterest-Bearing Deposits. Average Demand and Other Noninterest-Bearing Deposits increased $7.7 billion , or 33%, to $31.1 billion in 2021 from $23.4 billion in 2020. The average rate on total source of funds was 0.02% in 2021 and 0.16% in 2020.

Interest expense for Interest-Bearing Deposits in the current year was driven by low and negative interest rates for Non-U.S. Offices Interest-Bearing Deposits and low interest rates on domestic Interest-Bearing Deposits. Average Non-U.S. Offices Interest-Bearing Deposits comprised 70% of total average Interest-Bearing Deposits for the year ended December 31, 2021.

Stockholders’ Equity

Stockholders’ Equity averaged $11.7 billion in 2021, compared with $11.2 billion in 2020. The increase in average Stockholders’ Equity of $504.4 million, or 5%, was primarily attributable to Retained Earnings, partially offset by lower Accumulated Other Comprehensive Income since the prior year, repurchases of common stock pursuant to the Corporation’s share repurchase program and decreased Additional Paid-in Capital. During the year ended December 31, 2021, the Corporation maintained its quarterly common stock dividend at $0.70 per share and repurchased 2,527,544 shares of common stock, returning $861.5 million in capital to common stockholders, compared to $891.8 million in 2020.

The share repurchases were predominantly made pursuant to the repurchase program authorized by the Board of Directors in July 2018. In October 2021, this program was terminated and replaced with a new repurchase program, under which the Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other equity incentive plans. The repurchase authorization approved by the Board of Directors has no expiration date, thus the Corporation retains the ability to resume repurchases thereunder when circumstances warrant and applicable regulations permit. Please refer to Note 15, “Stockholders’ Equity,” provided in Item 8, “Financial Statements and Supplementary Data.”

Provision for Credit Losses

There was an $81.5 million release of credit reserves in 2021, as compared to a provision of $125.0 million in 2020. The release of credit reserves during 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional portfolio. The prior-year provision primarily reflected an increase in the reserve evaluated on a collective basis. The increase in the collective basis reserve was primarily driven by current and projected economic conditions at the time and downgrades in the portfolio, both resulting from the COVID-19 pandemic and related market and economic impacts. Increases in the collective basis reserve were primarily in the commercial and institutional and commercial real estate portfolios. In addition, a $13.7 million increase in the allowance for credit losses, with a corresponding cumulative effect adjustment to decrease retained earnings by $10.1 million, net of income taxes, was recorded on January 1, 2020 upon adoption of the Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments.”

2021 Annual Report | Northern Trust Corporation 41

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Net recoveries in 2021 totaled $6.3 million resulting from $0.7 million of charge-offs and $7.0 million of recoveries, compared to net charge-offs of $3.2 million in the prior-year resulting from $9.7 million of charge-offs and $6.5 million of recoveries.

Nonaccrual assets at December 31, 2021 decreased 5% from the prior year-end. Commercial real estate, residential real estate, and commercial and institutional accounted for 54%, 30%, and 16%, respectively, of total nonaccrual loans and leases at December 31, 2021. Residential real estate, commercial real estate, commercial and institutional, and private client loans accounted for 47%, 31%, 20%, and 2%, respectively, of total nonaccrual loans and leases at December 31, 2020. For additional discussion of the Allowance for Credit Losses, refer to the “Asset Quality” section.

Noninterest Expense

Noninterest Expense for 2021 increased from 2020, primarily reflecting increased Outside Services, Compensation, Equipment and Software and Employee Benefits, partially offset by lower Other Operating Expense and Occupancy. Employee Benefits expense in 2021 included pension settlement charges of $27.9 million.

The components of Noninterest Expense and a discussion of significant changes during 2021 and 2020 are provided below.

TABLE 23: NONINTEREST EXPENSE

	FOR THE YEAR ENDED DECEMBER 31,						CHANGE
($ In Millions)	2021		2020		2019		2021 / 2020		2020 / 2019
Compensation	$	2,011.0	$	1,947.1	$	1,859.0	3	%	5	%
Employee Benefits	431.4		387.7		355.2		11		9
Outside Services	849.4		763.1		774.5		11		(1)
Equipment and Software	736.3		673.5		612.1		9		10
Occupancy	208.7		230.1		212.9		(9)		8
Other Operating Expense	299.1		346.7		329.8		(14)		5
Total Noninterest Expense	$	4,535.9	$	4,348.2	$	4,143.5	4	%	5	%

Compensation

Compensation expense, the largest component of Noninterest Expense, increased in 2021 from 2020, primarily reflecting higher incentives and salary expense. The prior year reflects $52.5 million of severance-related charges. Staff on a full-time equivalent basis totaled approximately 21,100 at December 31, 2021, up 1% from approximately 20,900 at December 31, 2020.

Employee Benefits

Employee Benefits expense in 2021 increased from 2020, primarily reflecting higher retirement plan expenses, medical costs and payroll taxes. There were $27.9 million of pension settlement charges in 2021.

Outside Services

Outside Services expense in 2021 increased from 2020, primarily due to higher technical services costs, third-party advisory fees and sub-custodian expenses.

Equipment and Software

Equipment and Software expense in 2021 increased from 2020, primarily reflecting higher software support and rental costs and higher amortization.

Occupancy

Occupancy expense in 2021 decreased from 2020, primarily due to early lease exits arising from workplace real estate strategies in the prior year, which included $11.9 million of expense related to an early lease exit.

Other Operating Expense

Other Operating Expense in 2021 decreased from 2020 primarily due to lower charges associated with account servicing activities and a decline in other miscellaneous expenses. The account servicing activities in the prior year included a $43.4 million charge related to a corporate action processing error. Please refer to Note 21, “Other Operating Expense” included under Item 8, “Financial Statements and Supplementary Data,” for additional details related to other operating expenses.

42 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Provision for Income Taxes

The 2021 Provision for Income Taxes was $464.8 million, representing an effective rate of 23.1%. This compares with a Provision for Income Taxes of $418.3 million and an effective rate of 25.7% in 2020. The decrease in the effective tax rate was primarily driven by the lower net tax impact from international operations and $26.8 million of prior-year tax expense related to the reversal of tax benefits previously recognized through earnings.

See Note 22, “Income Taxes,” provided in Item 8, “Financial Statements and Supplementary Data,” for more information on income taxes.

REPORTING SEGMENTS AND RELATED INFORMATION

The following information summarizes our consolidated results of operations by reporting segment for 2021 compared to 2020. For a discussion related to the consolidated results of operations by reporting segment for 2020 compared to 2019, refer to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2020 Form 10-K, which was filed with the SEC on February 23, 2021.

    Northern Trust is organized around its two client-focused reporting segments: C&IS and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management.

Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.

Equity is allocated to the reporting segments based on a variety of factors including, but not limited to, risk, regulatory considerations, and internal metrics. Allocations of capital and certain corporate expense may not be representative of levels that would be required if the segments were independent entities. The accounting policies used for management reporting are consistent with those described in Note 1, “Summary of Significant Accounting Policies.” Transfers of income and expense items are recorded at cost; there is no consolidated profit or loss on sales or transfers between reporting segments. Northern Trust’s presentations are not necessarily consistent with similar information for other financial institutions.

Revenues, expenses and average assets are allocated to C&IS and Wealth Management, with the exception of non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment, which are reported within the Other segment.

Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis.

Effective January 1, 2021, Northern Trust implemented enhancements to its FTP methodology, including enhancements impacting the allocation of net interest income between C&IS and Wealth Management. These methodology enhancements affect the results of each of these reporting segments. Due to the lack of historical information, segment results for periods ended prior to January 1, 2021 have not been revised to reflect the methodology enhancements.

2021 Annual Report | Northern Trust Corporation 43

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents the earnings and average assets for the Corporation.

TABLE 24: CONSOLIDATED FINANCIAL INFORMATION

	FOR THE YEAR ENDED DECEMBER 31,						CHANGE
($ In Millions)	2021		2020		2019		2021 / 2020		2020 / 2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1	9	%	4	%
Foreign Exchange Trading Income	292.6		290.4		250.9		1		16
Other Noninterest Income	428.1		372.2		292.2		15		27
Total Noninterest Income	5,081.8		4,657.6		4,395.2		9		6
Net Interest Income(1)	1,418.3		1,477.6		1,710.7		(4)		(14)
Revenue(1)	6,500.1		6,135.2		6,105.9		6		—
Provision for Credit Losses	(81.5)		125.0		(14.5)		N/M		N/M
Noninterest Expense	4,535.9		4,348.2		4,143.5		4		5
Income before Income Taxes(1)	2,045.7		1,662.0		1,976.9		23		(16)
Provision for Income Taxes(1)	500.4		452.7		484.7		11		(7)
Net Income	$	1,545.3	$	1,209.3	$	1,492.2	28	%	(19)	%
Average Assets	$	156,363.2	$	136,811.1	$	117,551.4	14	%	16	%

(1) Non-GAAP financial measures stated on an FTE basis. The consolidated figures include $35.6 million, $34.4 million, and $32.8 million of FTE adjustments for 2021, 2020, and 2019, respectively. A reconciliation of total consolidated revenue, Net Interest Income and net interest margin on a GAAP basis to revenue, Net Interest Income and net interest margin on an FTE basis, respectively, (each of which is a non-GAAP financial measure) is provided in “Supplemental Information—Reconciliation to Fully Taxable Equivalent” within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section.

Corporate & Institutional Services

C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region. The following table summarizes the results of operations of C&IS for the years ended December 31, 2021, 2020, and 2019 on a management-reporting basis.

TABLE 25: C&IS RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,									CHANGE
($ In Millions)	2021			2020			2019			2021 / 2020		2020 / 2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,487.3		$	2,321.6		$	2,211.5		7	%	5	%
Foreign Exchange Trading Income	279.0			276.3			232.2			1		19
Other Noninterest Income	261.2			222.5			178.2			17		25
Total Noninterest Income	3,027.5			2,820.4			2,621.9			7		8
Net Interest Income(1)	637.2			665.5			918.7			(4)		(28)
Revenue(1)	3,664.7			3,485.9			3,540.6			5		(2)
Provision for Credit Losses	(33.8)			38.1			1.9			N/M		N/M
Noninterest Expense	2,863.0			2,752.7			2,605.5			4		6
Income before Income Taxes(1)	835.5			695.1			933.2			20		(26)
Provision for Income Taxes(1)	194.1			174.4			219.4			11		(21)
Net Income	$	641.4		$	520.7		$	713.8		23	%	(27)	%
Percentage of Consolidated Net Income	41		%	43		%	48		%
Average Assets	$	120,883.2		$	104,790.6		$	87,557.1		15	%	20	%

(1) Non-GAAP financial measures stated on an FTE basis.

C&IS Net Income

Net Income increased in 2021 compared to 2020, primarily reflecting higher Trust, Investment and Other Servicing Fees, a release of credit reserves in the current year as compared to a provision in the prior year and higher Other Noninterest

44 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Income, partially offset by higher Noninterest Expense, lower Net Interest Income and an increase in the Provision for Income Taxes.

C&IS Trust, Investment and Other Servicing Fees

For an explanation of C&IS Trust, Investment, and Other Servicing Fees, please see the “Trust, Investment, and Other Servicing Fees” section within the Consolidated Results of Operations section of the MD&A.

C&IS Foreign Exchange Trading Income

Foreign Exchange Trading Income in 2021 increased from 2020, primarily driven by higher client volumes, partially offset by lower foreign exchange swap activity in Treasury.

C&IS Other Noninterest Income

Other Noninterest Income for 2021 increased from 2020, primarily due to Other Operating Income and Security Commissions and Trading Income.

C&IS Net Interest Income

Net Interest Income on an FTE basis decreased in 2021 from 2020, due to a lower net interest margin, partially offset by an increase in average earning assets. Net interest margin on an FTE basis decreased to 0.60% from 0.75%. Average earning assets of $111.0 billion, increased $16.4 billion, or 17%, from $94.6 billion in the prior year. The earning assets in C&IS consisted primarily of intercompany assets and Loans and Leases. Funding sources were primarily comprised of non-U.S. custody-related interest-bearing deposits, which averaged $69.7 billion in 2021 as compared to $60.5 billion in 2020.

C&IS Provision for Credit Losses

There was a release of credit reserves of $33.8 million for 2021 compared to a provision of $38.1 million for 2020. The release of credit reserves during 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics. The decrease in the collective basis reserve was driven by improvements in projected economic conditions and portfolio credit quality. The 2020 provision reflected an increase in the reserve evaluated on a collective basis driven by current and projected economic conditions at the time and downgrades in the portfolio, both resulting from the ongoing COVID-19 pandemic and related market and economic impacts on the commercial and institutional portfolio.

C&IS Noninterest Expense

Total C&IS Noninterest Expense, which includes the direct expense of the reporting segment, indirect expense allocations for product and operating support, and indirect expense allocations for certain corporate support services, increased in 2021 from 2020. The increase primarily reflects higher expense allocations, Outside Services expense and Compensation expense including incentives.

Wealth Management

Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management is one of the largest providers of advisory services in the United States with assets under custody/administration, assets under custody, and assets under management of $1.07 trillion, $1.06 trillion, and $416.1 billion, respectively, at December 31, 2021. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

2021 Annual Report | Northern Trust Corporation 45

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table summarizes the results of operations of Wealth Management for the years ended December 31, 2021, 2020, and 2019 on a management-reporting basis.

TABLE 26: WEALTH MANAGEMENT RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,									CHANGE
($ In Millions)	2021			2020			2019			2021 / 2020		2020 / 2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,873.8		$	1,673.4		$	1,640.6		12	%	2	%
Foreign Exchange Trading Income	13.6			14.1			18.7			(4)		(25)
Other Noninterest Income	188.2			168.0			131.1			12		28
Total Noninterest Income	2,075.6			1,855.5			1,790.4			12		4
Net Interest Income(1)	781.1			812.1			792.0			(4)		3
Revenue(1)	2,856.7			2,667.6			2,582.4			7		3
Provision for Credit Losses	(47.7)			86.9			(16.4)			N/M		N/M
Noninterest Expense	1,651.1			1,559.7			1,531.6			6		2
Income before Income Taxes(1)	1,253.3			1,021.0			1,067.2			23		(4)
Provision for Income Taxes(1)	317.0			291.8			271.1			9		8
Net Income	$	936.3		$	729.2		$	796.1		28	%	(8)	%
Percentage of Consolidated Net Income	61		%	60		%	53		%
Average Assets	$	35,480.0		$	32,020.5		$	29,994.3		11	%	7	%

(1) Non-GAAP financial measures stated on an FTE basis.

Wealth Management Net Income

Wealth Management Net Income increased in 2021, primarily reflecting higher Trust, Investment and Other Servicing Fees, a release of credit reserves in the current year as compared to a provision in the prior year and higher Other Noninterest Income, partially offset by higher Noninterest Expense, lower Net Interest Income and an increase in the Provision for Income Taxes.

Wealth Management Trust, Investment and Other Servicing Fees

For an explanation of Wealth Management Trust, Investment, and Other Servicing Fees, please see the “Trust, Investment, and Other Servicing Fees” section within the Consolidated Results of Operations section of the MD&A.

Wealth Management Other Noninterest Income

Other Noninterest Income for 2021 increased from 2020, primarily due to higher Other Operating Income driven by gains on property sales.

Wealth Management Net Interest Income

Net Interest Income on an FTE basis for 2021 decreased from 2020, primarily attributable to a decrease in the net interest margin, partially offset by an increase in earning assets. Net interest margin on an FTE basis decreased to 2.47% from 2.94%. Average earning assets of $32.8 billion in 2021, increased $3.3 billion, or 11%, from $29.5 billion in 2020. Earning assets and funding sources for the year ended December 31, 2021 were primarily comprised of loans and domestic interest-bearing deposits, respectively.

Wealth Management Provision for Credit Losses

There was a release of credit reserves of $47.7 million for 2021 compared to a provision of $86.9 million in 2020. The release of credit reserves during 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics. The decrease in the collective basis reserve was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional and private client portfolios. The 2020 provision reflected an increase in the reserve evaluated on a collective basis driven by current and projected economic conditions at the time and downgrades in the portfolio, both resulting from the ongoing COVID-19 pandemic and related market and economic impacts, primarily impacting the commercial real estate and commercial and institutional portfolios.

Wealth Management Noninterest Expense

Noninterest Expense, which includes the direct expense of the reporting segment, indirect expense allocations for product and operating support, and indirect expense allocations for certain corporate support services, increased in 2021 from 2020.

46 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The increase primarily reflects higher expense allocations, Compensation expense including incentives and Employee Benefits.

Other

Income and expenses associated with non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments are included within Other. The following table summarizes the results of operations of the Other segment for the years ended December 31, 2021, 2020, and 2019 on a management-reporting basis.

TABLE 27: OTHER RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,									CHANGE
($ In Millions)	2021			2020			2019			2021 / 2020	2020 / 2019
Noninterest Income	$	(21.3)		$	(18.3)		$	(17.1)		N/M	N/M
Net Interest Income(1)	—			—			—			N/M	N/M
Revenue(1)	(21.3)			(18.3)			(17.1)			N/M	N/M
Noninterest Expense	21.8			35.8			6.4			(39)	N/M
Income (Loss) before Income Taxes(1)	(43.1)			(54.1)			(23.5)			N/M	N/M
Provision (Benefit) for Income Taxes(1)	(10.7)			(13.5)			(5.8)			N/M	N/M
Net Income	$	(32.4)		$	(40.6)		$	(17.7)		N/M	N/M
Percentage of Consolidated Net Income	(2)		%	(3)		%	(1)		%
Average Assets	$	—		$	—		$	—		N/M	N/M

(1) Non-GAAP financial measures stated on an FTE basis.

Other—Noninterest Income

Noninterest Income in 2021 decreased from 2020 due to higher expenses for existing swap agreements related to Visa Inc. Class B common shares.

Other—Noninterest Expense

Noninterest Expense in 2021 decreased from 2020, primarily due to lower costs arising from prior-year workplace real estate strategies and a one-time supplemental payment to employees in response to COVID-19 pandemic in the prior year, offset by pension settlement charges in 2021.

Asset Management

Asset Management, through the Corporation’s various subsidiaries, supports the C&IS and Wealth Management reporting segments by providing a broad range of asset management and related services and other products to clients around the world. Investment solutions are delivered through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. Asset Management’s capabilities include active and passive equity; active and passive fixed income; cash management; multi-asset and alternative asset classes (such as private equity and hedge funds of funds); and multi-manager advisory services and products. Asset Management’s activities also include overlay services and other risk management services. Asset Management operates internationally through subsidiaries and distribution arrangements and its revenue and expense are allocated fully to C&IS and Wealth Management.

2021 Annual Report | Northern Trust Corporation 47

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

At December 31, 2021, Northern Trust managed $1.61 trillion in assets for personal and institutional clients, including $1.19 trillion for C&IS clients and $416.1 billion for Wealth Management clients. The following table presents consolidated assets under management as of December 31, 2021, 2020 and 2019 by investment type.

TABLE 28: CONSOLIDATED ASSETS UNDER MANAGEMENT BY INVESTMENT TYPE

	DECEMBER 31,						CHANGE
($ In Billions)	2021		2020		2019		2021 / 2020		2020 / 2019
Equities	$	856.5	$	733.7	$	650.8	17	%	13	%
Fixed Income Securities	216.1		204.8		193.8		6		6
Cash and Other Assets	338.9		279.9		223.6		21		25
Securities Lending Collateral	195.6		186.9		163.1		5		15
Total Assets Under Management	$	1,607.1	$	1,405.3	$	1,231.3	14	%	14	%

Assets under management increased at year-end 2021 from year-end 2020. The increase primarily reflected favorable markets and net inflows. The following table presents activity in consolidated assets under management by product during the years ended December 31, 2021, 2020 and 2019.

TABLE 29: ACTIVITY IN CONSOLIDATED ASSETS UNDER MANAGEMENT BY PRODUCT

($ In Billions)		2021		2020		2019
Balance as of January 1		$	1,405.3	$	1,231.3	$	1,069.4
Inflows by Product
	Equities	292.9		193.0		193.6
	Fixed Income	63.7		65.0		48.1
	Cash and Other Assets	810.2		802.4		551.6
	Securities Lending Collateral	270.6		268.8		260.5
Total Inflows		1,437.4		1,329.2		1,053.8
Outflows by Product
	Equities	(321.0)		(212.6)		(205.5)
	Fixed Income	(56.2)		(68.5)		(49.7)
	Cash and Other Assets	(745.4)		(746.5)		(541.0)
	Securities Lending Collateral	(261.9)		(245.0)		(247.3)
Total Outflows		(1,384.5)		(1,272.6)		(1,043.5)
Net Inflows (Outflows)		52.9		56.6		10.3
Market Performance, Currency & Other
	Market Performance & Other	159.8		109.1		151.1
	Currency	(10.9)		8.3		0.5
Total Market Performance, Currency & Other		148.9		117.4		151.6
Balance as of December 31		$	1,607.1	$	1,405.3	$	1,231.3

48 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CONSOLIDATED BALANCE SHEET REVIEW

The following tables summarize selected consolidated balance sheet information.

TABLE 30: SELECT CONSOLIDATED BALANCE SHEET INFORMATION

($ In Billions)	DECEMBER 31, 2021		DECEMBER 31, 2020		CHANGE
Assets
Federal Reserve and Other Central Bank Deposits and Other(1)	$	64.5	$	55.4	$	9.1	16	%
Interest-Bearing Due from and Deposits with Banks(2)	3.9		6.6		(2.7)		(42)
Securities Purchased under Agreements to Resell	0.7		1.6		(0.9)		(57)
Total Securities(3)	62.7		61.1		1.6		3
Loans and Leases	40.5		33.8		6.7		20
Total Earning Assets	172.3		158.5		13.8		9
Total Assets	183.9		170.0		13.9		8
Liabilities and Stockholders' Equity
Total Interest-Bearing Deposits	111.6		100.8		10.8		11
Demand and Other Noninterest-Bearing Deposits	48.3		43.1		5.2		12
Federal Funds Purchased	—		0.3		(0.3)		N/M
Securities Sold under Agreements to Repurchase	0.5		—		0.5		N/M
Other Borrowings	3.6		4.0		(0.4)		(11)
Total Stockholders’ Equity	12.0		11.7		0.3		3

(1)    Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets.

(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(3)    Total Securities includes certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets.

TABLE 31: SELECT AVERAGE CONSOLIDATED BALANCE SHEET INFORMATION

	TWELVE MONTHS ENDED DECEMBER 31,
($ In Billions)	2021		2020		CHANGE
Assets
Federal Reserve and Other Central Bank Deposits and Other(1)	$	39.0	$	27.9	$	11.1	40	%
Interest-Bearing Due from and Deposits with Banks(2)	5.8		5.4		0.4		7
Securities Purchased under Agreements to Resell	1.1		1.2		(0.1)		(15)
Total Securities(3)	60.8		56.1		4.7		8
Loans and Leases	37.2		33.5		3.7		11
Total Earning Assets	143.9		124.1		19.8		16
Total Assets	156.4		136.8		19.6		14
Liabilities and Stockholders' Equity
Total Interest-Bearing Deposits	98.9		85.1		13.8		16
Demand and Other Noninterest-Bearing Deposits	31.1		23.4		7.7		33
Federal Funds Purchased	0.2		1.0		(0.8)		(81)
Securities Sold under Agreements to Repurchase	0.2		0.2		—		6
Other Borrowings	5.0		6.4		(1.4)		(21)
Total Stockholders’ Equity	11.7		11.2		0.5		5

(1)    Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets.

(2)    Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(3)    Total Securities includes certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets.

Average balances are considered to be a better measure of balance sheet trends, as period-end balances can be impacted by the timing of deposit and withdrawal activity involving large client balances. The current growth in both the period-end and average consolidated balance sheets was primarily driven by higher customer deposit balances.

2021 Annual Report | Northern Trust Corporation 49

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Short-Term Borrowings. Short-term borrowings includes Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Other Borrowings. Securities Sold under Agreements to Repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. Securities Sold under Agreements to Repurchase are held by the counterparty until the repurchase.

During the third quarter of 2021, Northern Trust became a Government Securities Division (GSD) netting and sponsoring member in the Fixed Income Clearing Corporation (FICC) sponsored member program. FICC, a wholly-owned subsidiary of The Depository Trust & Clearing Corporation, is a central counterparty and provides netting and settlement for the U.S. Government securities marketplace. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when FICC is the counterparty. See Note 5, “Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase,” Note 26, “Commitments and Contingent Liabilities” and Note 28, “Offsetting of Assets and Liabilities” to the consolidated financial statements provided in Item 8, “Financial Statements and Supplementary Data” for additional information on Northern Trust’s repurchase and reverse repurchase agreements.

Stockholders’ Equity. The increase in average Stockholders’ Equity was primarily attributable to Retained Earnings, partially offset by lower Accumulated Other Comprehensive Income since the prior year, repurchases of common stock pursuant to the Corporation’s share repurchase program and decreased Additional Paid-in Capital.

During the year ended December 31, 2021, the Corporation declared cash dividends totaling $593.9 million to common stockholders and repurchased 2,527,544 shares of common stock, including 394,326 shares withheld related to share-based compensation, at a total cost of $267.6 million ($105.90 average price per share).

During the year ended December 31, 2021, the Corporation declared cash dividends totaling $41.8 million to preferred stockholders.

50 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Asset Quality

Securities Portfolio

The following table presents the remaining maturity and average yield of Northern Trust's held to maturity (HTM) debt securities and available for sale (AFS) debt securities by security type as of December 31, 2021.

TABLE 32: REMAINING MATURITY AND AVERAGE YIELD OF HELD TO MATURITY AND AVAILABLE FOR SALE DEBT SECURITIES

	DECEMBER 31, 2021
	TOTAL			ONE YEAR OR LESS			ONE TO FIVE YEARS			FIVE TO TEN YEARS				OVER TEN YEARS			AVERAGE MATURITY
($ in Millions)	BOOK		YIELD	BOOK		YIELD	BOOK		YIELD	BOOK		YIELD		BOOK		YIELD
Held to Maturity Debt Securities
U.S. Government	$	47.0	0.03%	$	47.0	0.03%	$	—	—%	$	—	—	%	$	—	—%	2 mo.
Obligations of States and Political Subdivisions	0.8		5.64	0.8		5.64	—		—	—		—		—		—	0 mos.
Government Sponsored Agency	5,927.6		2.04	1,161.5		2.32	2,101.4		2.11	1,848.8		1.88		815.9		1.85	61 mos.
Other – Fixed	14,695.6		0.36	6,759.2		0.23	6,655.2		0.49	1,163.0		0.33		118.2		0.85	28 mos.
– Floating	2,893.5		0.96	629.0		0.68	1,984.0		1.03	280.5		1.14		—		—	42 mos.
Total Held to Maturity Debt Securities	$	23,564.5	0.86%	$	8,597.5	0.55%	$	10,740.6	0.90%	$	3,292.3	1.27	%	$	934.1	1.72%	38 mos.
Available for Sale Debt Securities
U.S. Government	$	2,426.1	1.64%	$	—	—%	$	2,187.1	1.74%	$	239.0	0.68	%	$	—	—%	31 mos.
Obligations of States and Political Subdivisions	3,876.1		2.07	23.0		2.31	462.1		2.24	3,262.6		2.04		128.4		1.93	85 mos.
Government Sponsored Agency	18,075.6		0.86	2,713.2		0.93	8,121.1		0.73	6,053.4		0.92		1,187.9		1.33	55 mos.
Asset-Backed – Fixed	4,403.0		1.72	876.1		1.86	2,775.9		1.53	702.3		2.30		48.7		2.73	31 mos.
Asset-Backed – Floating	2,963.3		1.17	28.1		1.15	1,747.6		1.15	1,019.2		1.25		168.4		0.88	61 mos.
Other – Fixed	5,410.5		1.75	995.9		2.18	4,062.1		0.13	347.9		1.17		4.6		1.21	32 mos.
– Floating	855.9		0.51	392.6		0.48	362.2		0.57	101.1		0.39		—		—	23 mos.
Total Available for Sale Debt Securities	$	38,010.5	1.28%	$	5,028.9	1.31%	$	19,718.1	1.22%	$	11,725.5	1.34	%	$	1,538.0	1.35%	50 mos.

Note: Yield is calculated on amortized cost and presented on a taxable equivalent basis giving effect to the applicable federal and state tax rates.

2021 Annual Report | Northern Trust Corporation 51

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Northern Trust maintains a high quality debt securities portfolio. Debt securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security. The following tables provide the fair value of AFS debt securities and amortized cost of HTM debt securities by credit rating.

TABLE 33: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES BY CREDIT RATING

	AS OF DECEMBER 31, 2021
($ In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	2,426.1		$	—		$	—		$	—		$	—		$	2,426.1
Obligations of States and Political Subdivisions	1,133.2			2,742.9			—			—			—			3,876.1
Government Sponsored Agency	18,075.6			—			—			—			—			18,075.6
Non-U.S. Government	374.0			—			—			—			—			374.0
Corporate Debt	442.0			466.2			1,206.6			29.4			197.5			2,341.7
Covered Bonds	364.1			—			23.5			—			118.0			505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,030.9			783.7			230.5			—			—			3,045.1
Other Asset-Backed	5,941.6			—			—			—			—			5,941.6
Commercial Mortgage-Backed	1,424.7			—			—			—			—			1,424.7
Total	$	32,212.2		$	3,992.8		$	1,460.6		$	29.4		$	315.5		$	38,010.5
Percent of Total	84		%	11		%	4		%	—		%	1		%	100		%

	AS OF DECEMBER 31, 2020
($ In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	2,799.9		$	—		$	—		$	—		$	—		$	2,799.9
Obligations of States and Political Subdivisions	918.1			2,165.5			—			—			—			3,083.6
Government Sponsored Agency	24,956.7			—			—			—			—			24,956.7
Non-U.S. Government	669.8			38.8			5.4			—			—			714.0
Corporate Debt	426.3			790.0			1,123.5			—			199.8			2,539.6
Covered Bonds	453.3			—			24.9			—			74.9			553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,622.0			566.0			157.8			—			—			2,345.8
Other Asset-Backed	3,947.5			—			—			—			50.0			3,997.5
Commercial Mortgage-Backed	1,031.8			—			—			—			—			1,031.8
Total	$	36,825.4		$	3,560.3		$	1,311.6		$	—		$	324.7		$	42,022.0
Percent of Total	88		%	8		%	3		%	—		%	1		%	100		%

As of December 31, 2021, the 1% of AFS debt securities not rated by Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P Global) or Fitch Ratings, Inc. (Fitch Ratings) consisted of corporate debt securities and covered bonds.

As of December 31, 2020, the 1% of AFS debt securities not rated by Moody’s, S&P Global or Fitch Ratings consisted of corporate debt, covered bonds, and other asset-backed securities.

52 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TABLE 34: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING

	AS OF DECEMBER 31, 2021
($ In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	47.0		$	—		$	—		$	—		$	—		$	47.0
Obligations of States and Political Subdivisions	—			0.8			—			—			—			0.8
Government Sponsored Agency	5,927.6			—			—			—			—			5,927.6
Non-U.S. Government	398.0			942.6			4,088.8			343.9			—			5,773.3
Corporate Debt	2.3			386.7			512.8			—			—			901.8
Covered Bonds	2,942.4			—			—			—			—			2,942.4
Certificates of Deposit	—			—			—			—			674.7			674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,207.6			1,858.0			31.3			1.1			—			6,098.0
Other Asset-Backed	682.6			—			—			—			—			682.6
Other	—			—			—			—			516.3			516.3
Total	$	14,207.5		$	3,188.1		$	4,632.9		$	345.0		$	1,191.0		$	23,564.5
Percent of Total	60		%	14		%	20		%	1		%	5		%	100		%

	AS OF DECEMBER 31, 2020
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	90.0		$	—		$	—		$	—		$	—		$	90.0
Obligations of States and Political Subdivisions	—			1.0			—			1.1			—			2.1
Government Sponsored Agency	3.0			—			—			—			—			3.0
Non-U.S. Government	319.8			1,337.4			6,630.6			48.8			—			8,336.6
Corporate Debt	3.8			279.1			305.1			—			—			588.0
Covered Bonds	3,184.6			—			—			—			—			3,184.6
Certificates of Deposit	—			—			—			—			807.2			807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,590.9			1,057.1			—			—			—			3,648.0
Other Asset-Backed	677.0			—			—			—			—			677.0
Other	—			—			—			—			454.6			454.6
Total	$	6,869.1		$	2,674.6		$	6,935.7		$	49.9		$	1,261.8		$	17,791.1
Percent of Total	39		%	15		%	39		%	—		%	7		%	100		%

As of December 31, 2021 and December 31, 2020, the 5% and 7%, respectively, of HTM debt securities not rated by Moody’s, S&P Global or Fitch Ratings consisted of certificates of deposit with a remaining life of less than six months, as well as investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area.

Net unrealized losses within the investment securities portfolio totaled $187.1 million at December 31, 2021, compared to net unrealized gains of $872.6 million as of December 31, 2020. Net unrealized losses as of December 31, 2021 were comprised of $345.1 million and $532.2 million of gross unrealized gains and losses, respectively. Net unrealized gains as of December 31, 2020 were comprised of $981.9 million and $109.3 million of gross unrealized gains and losses, respectively.

As of December 31, 2021, the $38.0 billion AFS debt securities portfolio had unrealized losses of $110.2 million related to government-sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase. As of December 31, 2020, the $42.0 billion AFS debt securities portfolio had unrealized losses of $26.9 million related to government-sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase. As of December 31, 2021 and December 31, 2020, 14% and 16%, respectively, of the AFS corporate debt securities portfolio was backed by guarantees provided by U.S. and non-U.S. government entities.

As of December 31, 2021, the $23.6 billion HTM debt securities portfolio had an unrealized loss of $106.1 million, $80.0 million and $71.6 million related to government sponsored agency, sub-sovereign, supranational and non-U.S. agency bonds, and other residential mortgage-backed securities, respectively, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase. As of December 31, 2020, the $17.8 billion HTM debt securities portfolio had an unrealized loss of $76.5 million related to other residential mortgage-backed securities, which is primarily attributable to changes in overall market interest rates and credit spreads since their purchase.

2021 Annual Report | Northern Trust Corporation 53

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

HTM debt securities consist of securities that management intends to, and Northern Trust has the ability to, hold until maturity. During the year ended December 31, 2021, $6.9 billion of government sponsored agency securities were transferred from AFS to HTM for capital management purposes, all of which were transferred in the second quarter of 2021. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into net interest income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value. During the year ended December 31, 2020, $301.5 million of securities reflected in U.S. government were transferred from AFS to HTM, all of which were transferred in the second quarter of 2020.

For additional information relating to the securities portfolio, refer to Note 4, “Securities,” provided in Item 8, “Financial Statements and Supplementary Data.”

Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

For additional information relating to the securities sold under agreements to repurchase, refer to Note 5, “Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase,” provided in Item 8, “Financial Statements and Supplementary Data.”

Loans and Leases

For additional information relating to the loan and leases portfolio, refer to Note 6, “Loans and Leases,” and Note 8, “Concentrations of Credit Risk” provided in Item 8, “Financial Statements and Supplementary Data.”

The following table presents the remaining maturity of loans and leases by segment and class as of December 31, 2021.

TABLE 35: REMAINING MATURITY OF LOANS AND LEASES

	DECEMBER 31, 2021
(In Millions)	TOTAL		ONE YEAR OR LESS		ONE TO FIVE YEARS		FIVE TO FIFTEEN YEARS		OVER FIFTEEN YEARS
U.S.:
Commercial
Commercial and Institutional	$	11,489.2	$	4,299.4	$	6,591.7	$	593.8	$	4.3
Commercial Real Estate	4,326.3		596.4		2,428.3		1,299.9		1.7
Lease Financing, net	11.0		—		—		11.0		—
Other	670.7		670.7		—		—		—
Personal
Private Client	15,256.3		10,186.0		4,697.4		371.3		1.6
Residential Real Estate	6,319.9		301.8		345.4		880.8		4,791.9
Other	35.2		35.2		—		—		—
Total U.S.	$	38,108.6	$	16,089.5	$	14,062.8	$	3,156.8	$	4,799.5
Non-U.S.:
Non-U.S. - Commercial	$	1,990.2	$	1,799.4	$	190.8	$	—	$	—
Non-U.S. - Personal	381.8		195.3		136.6		17.4		32.5
Total Non-U.S.	$	2,372.0	$	1,994.7	$	327.4	$	17.4	$	32.5
Total Loans and Leases	$	40,480.6	$	18,084.2	$	14,390.2	$	3,174.2	$	4,832.0

Note: Non-U.S. loans primarily include short duration exposures related to custodied client investments.

54 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TABLE 36: INTEREST RATE SENSITIVITY OF LOANS AND LEASES

	DECEMBER 31, 2021
(In Millions)	TOTAL		ONE YEAR OR LESS		ONE TO FIVE YEARS		FIVE TO FIFTEEN YEARS		OVER FIFTEEN YEARS
Fixed Rate:
Commercial
Commercial and Institutional	$	344.4	$	35.9	$	259.2	$	48.0	$	1.3
Commercial Real Estate	196.6		22.4		105.0		69.2		—
Non-U.S.	26.9		26.9		—		—		—
Total Commercial	$	567.9	$	85.2	$	364.2	$	117.2	$	1.3
Personal
Private Client	$	409.8	$	84.6	$	246.5	$	77.8	$	0.9
Residential Real Estate	789.9		1.4		30.6		589.8		168.1
Non-U.S.	10.7		2.5		7.8		—		0.4
Total Personal	$	1,210.4	$	88.5	$	284.9	$	667.6	$	169.4
Total Fixed Rate	$	1,778.3	$	173.7	$	649.1	$	784.8	$	170.7
Variable Rate:
Commercial
Commercial and Institutional	$	11,144.8	$	4,263.5	$	6,332.5	$	545.8	$	3.0
Commercial Real Estate	4,129.7		574.0		2,323.3		1,230.7		1.7
Non-U.S.	1,963.3		1,772.5		190.8		—		—
Lease Financing, net	11.0		—		—		11.0		—
Other	670.7		670.7		—		—		—
Total Commercial	$	17,919.5	$	7,280.7	$	8,846.6	$	1,787.5	$	4.7
Personal
Private Client	$	14,846.5	$	10,101.4	$	4,450.9	$	293.5	$	0.7
Residential Real Estate	5,530.0		300.4		314.8		291.0		4,623.8
Non-U.S.	371.1		192.8		128.8		17.4		32.1
Other	35.2		35.2		—		—		—
Total Personal	$	20,782.8	$	10,629.8	$	4,894.5	$	601.9	$	4,656.6
Total Variable Rate	$	38,702.3	$	17,910.5	$	13,741.1	$	2,389.4	$	4,661.3
Total Loans and Leases	$	40,480.6	$	18,084.2	$	14,390.2	$	3,174.2	$	4,832.0

Nonaccrual Assets and 90 Days Past Due Loans

Nonaccrual assets consist of nonaccrual loans and leases and other real estate owned (OREO). OREO is comprised of commercial and residential properties acquired in partial or total satisfaction of loans. Loans that are delinquent 90 days or more and still accruing interest can fluctuate widely at any reporting period based on the timing of cash collections, renegotiation and renewals. For additional information relating to nonaccrual loans, refer to Note 6, “Loans and Leases,” provided in Item 8, “Financial Statements and Supplementary Data.”

2021 Annual Report | Northern Trust Corporation 55

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents nonaccrual assets and loans that were delinquent 90 days or more and still accruing interest at December 31, 2021 and 2020.

TABLE 37: NONACCRUAL ASSETS

	DECEMBER 31,
($ In Millions)	2021			2020
Nonaccrual Loans and Leases
Commercial
Commercial and Institutional	$	19.5		$	26.4
Commercial Real Estate	66.6			40.2
Total Commercial	$	86.1		$	66.6
Personal
Residential Real Estate	$	36.2		$	62.2
Private Client	—			2.9
Total Personal	$	36.2		$	65.1
Total Nonaccrual Loans and Leases	122.3			131.7
Other Real Estate Owned	3.0			0.7
Total Nonaccrual Assets	$	125.3		$	132.4
90 Day Past Due Loans Still Accruing	$	28.3		$	8.9
Nonaccrual Loans and Leases to Total Loans and Leases	0.30		%	0.39		%
Allowance for Credit Losses Assigned to Loans and Leases to Nonaccrual Loans and Leases	1.1		x	1.4x

Nonaccrual assets as of December 31, 2021 decreased from December 31, 2020, primarily due to net payoffs in the residential real estate and commercial and institutional portfolios, partially offset by a net increase in the commercial real estate portfolio. In addition to the negative impact on net interest income and the risk of credit losses, nonaccrual assets also increase operating costs due to the expense associated with collection efforts. Changes in the level of nonaccrual assets may be indicative of changes in the credit quality of one or more loan classes. Changes in credit quality impact the allowance for credit losses through the resultant adjustment of the allowance evaluated on an individual basis and the quantitative and qualitative factors used in the determination of the allowance evaluated on a collective basis within the allowance for credit losses.

Allowance for Credit Losses

The allowance for credit losses—which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships—is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts.

The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Credit Risk Management, Treasury, Corporate Finance, the Economic Research group, and each of Northern Trust’s business units.

As of December 31, 2021, the allowance for credit losses related to loans and leases, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $138.4 million, $34.1 million, $11.2 million, and $1.0 million, respectively. As of December 31, 2020, the allowance for credit losses related to loans and leases, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $190.7 million, $61.1 million, $7.3 million, and $0.8 million, respectively. For additional information relating to the allowance for credit losses and the changes in the allowance for credit losses during the years ended December 31, 2021 and 2020 due to charge-offs, recoveries and provisions for credit losses, refer to Note 7, “Allowance for Credit Losses,” provided in Item 8, “Financial Statements and Supplementary Data.”

56 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table shows the net recoveries (charge-offs) to average loans and leases by segment and class at December 31, 2021, 2020, and 2019.

TABLE 38: NET RECOVERIES (CHARGE-OFFS) TO AVERAGE LOANS AND LEASES

($ in Millions)	2021			2020			2019
Net Recoveries (Charge-Offs) to Average Loans and Leases
Commercial
Commercial and Institutional	0.01		%	0.02		%	(0.03)		%
Commercial Real Estate	(0.01)			(0.18)			0.02
Total Commercial	—			(0.03)			(0.02)
Personal
Private Client	0.01			—			—
Residential Real Estate	0.07			0.02			0.04
Total Personal	0.03			—			0.02
Total Net Recoveries (Charge-Offs) to Select Average Loans and Leases	0.02		%	(0.01)		%	—		%
Net Recoveries (Charge-Offs)
Commercial
Commercial and Institutional	$	0.9		$	1.8		$	(2.6)
Commercial Real Estate	(0.3)			(5.7)			0.5
Total Commercial	0.6			(3.9)			(2.1)
Personal
Private Client	1.3			(0.5)			0.3
Residential Real Estate	4.4			1.2			2.5
Total Personal	5.7			0.7			2.8
Total Net Recoveries (Charge-Offs)	$	6.3		$	(3.2)		$	0.7
Average Loans and Leases
Commercial
Commercial and Institutional	$	10,428.6		$	10,347.1		$	8,979.9
Commercial Real Estate	3,977.0			3,253.8			2,918.1
Total Select Commercial	14,405.6			13,600.9			11,898.0
Personal
Private Client	13,686.7			11,452.9			10,746.0
Residential Real Estate	6,190.6			6,116.4			6,297.2
Total Select Personal	19,877.3			17,569.3			17,043.2
Total Select Average Loans and Leases	$	34,282.9		$	31,170.2		$	28,941.2

Net recoveries (charge-offs) for the following segments were zero and therefore excluded from the above table as the ratio of net recoveries (charge-offs) to average loans and leases is also zero: Lease Financing, net, Other, and Non-U.S. The average loans and leases balances were also not provided in the table for Lease Financing, net, Other, and Non-U.S.

Total average loans and leases for all loan portfolio categories were $37.2 billion, $33.5 billion, and $31.1 billion for the years ended December 31, 2021, 2020, and 2019, respectively.

The SEC requires the disclosure of the Allowance for Credit Losses that is applicable to international operations. The disclosure has been prepared in compliance with this disclosure requirement and is used in determining non-U.S. operating performance. The amounts disclosed should not be construed as being the only amounts that are available for non-U.S. loan charge-offs, since the entire Allowance for Credit Losses assigned to Loans and Leases is available to absorb losses on both U.S. and non-U.S. loans. In addition, these amounts are not intended to be indicative of future charge-off trends. Please refer to the following table for the non-U.S. allowance balances.

2021 Annual Report | Northern Trust Corporation 57

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table shows the allowance evaluated on an individual and collective basis for the loans and leases portfolio by segment and class at December 31, 2021 and 2020.

TABLE 39: ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

	DECEMBER 31,
	2021					2020
($ In Millions)	ALLOWANCE AMOUNT			PERCENT OF LOANS TO TOTAL LOANS		ALLOWANCE AMOUNT			PERCENT OF LOANS TO TOTAL LOANS
Evaluated on an Individual Basis	$	10.1		—	%	$	10.7		—	%
Evaluated on a Collective Basis
Commercial
Commercial and Institutional	50.6			27		100.6			30
Commercial Real Estate	68.2			11		70.7			10
Lease Financing, net	0.4			—		0.4			—
Non-U.S.	7.7			5		17.7			4
Other	—			2		—			1
Total Commercial	126.9			45		189.4			45
Personal
Residential Real Estate	23.3			16		28.9			18
Private Client	11.1			38		20.6			35
Non-U.S.	1.1			1		2.2			2
Other	—			—		—			—
Total Personal	35.5			55		51.7			55
Total Allowance Evaluated on a Collective Basis	$	162.4				$	241.1
Total Allowance for Credit Losses	$	172.5				$	251.8
Allowance Assigned to:
Loans and Leases	$	138.4				$	190.7
Undrawn Commitments and Standby Letters of Credit	34.1					61.1
Total Allowance for Credit Losses	$	172.5				$	251.8
Allowance Assigned to Loans and Leases to Total Loans and Leases	0.34		%			0.56		%

Allowance Related to Credit Exposure Evaluated on an Individual Basis: The allowance is determined through an individual evaluation of loans, leases, and lending-related commitments that have defaulted, generally those with Borrower Ratings of 8 and 9, that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay.

The allowance evaluated on an individual basis for Loans and Leases decreased $0.6 million from $10.7 million at December 31, 2020 to $10.1 million at December 31, 2021, primarily attributable to a decrease in outstanding loans in the commercial real estate and residential real estate portfolios, partially offset by an increase in outstanding loans in the commercial and institutional portfolio.

Allowance Related to Credit Exposure Evaluated on a Collective Basis: Expected credit losses are measured on a collective basis as long as the financial assets included in the respective pool share similar risk characteristics. If financial assets are deemed to not share similar risk characteristics, an individual assessment is warranted.

The allowance evaluated on a collective basis for Loans and Leases decreased $78.7 million to $162.4 million at December 31, 2021, compared with $241.1 million at December 31, 2020, primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional portfolio.

Overall Allowance: The evaluation of the reserve evaluated on an individual and collective basis resulted in a total allowance for credit losses of $184.7 million at December 31, 2021, compared with $259.9 million at the end of 2020. The allowance of $138.4 million assigned to Loans and Leases, as a percentage of total Loans and Leases, was 0.34% at December 31, 2021, which decreased from a $190.7 million allowance assigned to Loans and Leases, representing 0.56% of total Loans and Leases at December 31, 2020. Allowances assigned to undrawn loan commitments and standby letters of credit totaled $34.1 million and $61.1 million at December 31, 2021 and 2020, respectively, and are included in Other Liabilities on the consolidated balance sheets.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Expenditures

Capital expenditures in 2021 included continued investments to enhance Northern Trust’s software and hardware capabilities, the opening of new offices, and the renovation of several existing offices. Capital expenditures for 2021 totaled $515.1 million, of which $419.6 million was for software, $40.2 million was for building and leasehold improvements, $52.6 million was for computer hardware, and $2.7 million was for furnishings. These capital expenditures principally support, enhance, and protect Northern Trust’s investment management, asset servicing and wealth management systems and capabilities, with focus on delivering innovative solutions to better serve our clients. Additional capital expenditures committed for technology platforms will result in future expense for the depreciation of hardware and amortization of software. Software amortization and depreciation on computer hardware are charged to Equipment and Software expense. Depreciation on building and leasehold improvements and on furnishings is charged to Occupancy expense and equipment expense, respectively. Capital expenditures for 2020 totaled $560.4 million, of which $424.6 million was for software, $66.6 million was for building and leasehold improvements, $65.4 million was for computer hardware, and $3.8 million was for furnishings.

Deposits

The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2021. For additional information, refer to Note 12, “Deposits,” provided in Item 8, “Financial Statements and Supplementary Data.”

TABLE 40: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE

	DECEMBER 31, 2021
	U.S. OFFICE		NON-U.S. OFFICES
(In Millions)	CERTIFICATES OF DEPOSIT		OTHER TIME		TOTAL
3 Months or Less	$	223.5	$	261.3	$	484.8
Over 3 Months through 6 Months	81.2		27.0		108.2
Over 6 Months through 12 Months	320.6		95.2		415.8
Over 12 Months	16.4		—		16.4
Total	$	641.7	$	383.5	$	1,025.2

Deposits not insured by the FDIC as of December 31, 2021 and 2020 totaled $150.3 billion and $135.5 billion, respectively. These deposit amounts are derived by adding estimated domestic office uninsured deposits as allowed by Federal Financial Institutions Examination Council instructions to all foreign office deposits. Estimated uninsured domestic office deposits are determined by calculating and totaling the deposits in excess of the deposit insurance limit on an individual account basis.

Short-Term Borrowings

During the third quarter of 2021, Northern Trust became a Government Securities Division (GSD) netting and sponsoring member in the Fixed Income Clearing Corporation (FICC) sponsored member program. FICC, a wholly-owned subsidiary of The Depository Trust & Clearing Corporation, is a central counterparty and provides netting and settlement for the U.S. Government securities marketplace. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when FICC is the counterparty.

Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase. See Note 5, “Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase,” Note 26, “Commitments and Contingent Liabilities” and Note 28, “Offsetting of Assets and Liabilities” provided in Item 8, “Financial Statements and Supplementary Data” for additional information on our repurchase and reverse repurchase agreements.

2021 Annual Report | Northern Trust Corporation 59

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Geographic Area Information

Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source assets. Non-U.S. source assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision assets between U.S. and non-U.S.-domiciled customers. Therefore, certain subjective estimates and assumptions have been made to allocate assets between U.S. and non-U.S. operations.

The following tables present selected average assets and liabilities attributable to non-U.S. operations (based on the obligor’s domicile) and the percent of those balances to total consolidated average assets. For additional information refer to Note 32, “Reporting Segments and Related Information,” provided in Item 8, “Financial Statements and Supplementary Data.”

TABLE 41: SELECTED AVERAGE ASSETS AND LIABILITIES ATTRIBUTABLE TO NON-U.S. OPERATIONS

($ In Millions)	2021		2020
Total Assets	$	29,902.8	$	26,908.5
Time Deposits with Banks	3,619.3		3,258.5
Loans	1,496.1		1,742.5
Non-U.S. Investments	18,252.5		16,018.5
Total Liabilities	84,230.9		70,001.5
Deposits	83,001.7		68,828.9

Non-U.S. Outstandings

As used in this discussion, non-U.S. outstandings are cross-border outstandings as defined by the SEC. They consist of loans, securities, interest-bearing deposits with financial institutions, accrued interest and other monetary assets. Not included are letters of credit, loan commitments, and non-U.S. office local currency claims on residents. Non-U.S. outstandings related to a country are net of guarantees given by third parties resident outside the country and the value of tangible, liquid collateral realizable outside the country. However, transactions with branches of non-U.S. banks are included in these outstandings and are classified according to the country location of the non-U.S. bank’s head office.

Short-term interbank time deposits with non-U.S. banks represent the largest category of non-U.S. outstandings. Northern Trust actively participates in the interbank market with U.S. and non-U.S. banks.

Northern Trust places deposits with non-U.S. counterparties that have strong internal (Northern Trust) risk ratings and external credit ratings. These non-U.S. banks are approved and monitored by Northern Trust’s Capital Markets Credit Committee, which has credit authority for exposure to all non-U.S. banks and approves credit limits. This process includes financial analysis of the non-U.S. banks, use of an internal risk rating system and consideration of external market indicators. Each counterparty is reviewed at least annually and potentially more frequently based on credit fundamentals or general market conditions. Separate from the entity-specific review process, the average life to maturity of deposits with non-U.S. banks is deliberately maintained on a short-term basis in order to respond quickly to changing credit conditions. Northern Trust also utilizes certain risk mitigation tools and agreements that may reduce exposures through use of collateral and/or balance sheet netting. Additionally, the Capital Markets Credit Committee oversees country-risk analyses and imposes limits on country exposure. For additional information refer to Note 32, “Reporting Segments and Related Information,” provided in Item 8, “Financial Statements and Supplementary Data.”

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

STATEMENTS OF CASH FLOWS

The following discusses the statement of cash flow activities for the years ended December 31, 2021, 2020, and 2019.

TABLE 42: CASH FLOW ACTIVITY SUMMARY

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Net cash provided by (used in):
Operating activities	$	1,356.0	$	1,896.8	$	2,592.0
Investing activities	(18,602.6)		(29,923.0)		(3,405.0)
Financing activities	16,073.5		27,871.9		615.9
Effect of Foreign Currency Exchange Rates on Cash	(159.6)		84.6		74.7
Change in Cash and Due from Banks	$	(1,332.7)	$	(69.7)	$	(122.4)

Operating Activities

Net cash provided by operating activities of $1.4 billion for the year ended December 31, 2021 was primarily attributable to period earnings and the impact of higher non-cash charges such as depreciation and amortization, partially offset by higher net collateral deposited with derivative counterparties and in receivables.

For the year ended December 31, 2020, net cash provided by operating activities of $1.9 billion primarily reflected period earnings and the impact of higher non-cash charges such as depreciation and amortization and provision for credit losses.

Investing Activities

Net cash used in investing activities of $18.6 billion for the year ended December 31, 2021 was primarily attributable to increased levels of deposits with the Federal Reserve and other central banks, higher levels of loans and leases and net purchases of AFS debt securities, partially offset by lower levels of interest-bearing deposits with banks.

For the year ended December 31, 2020, net cash used in investing activities of $29.9 billion primarily reflected higher levels of deposits with the Federal Reserve and other central banks, net purchases of HTM debt securities, higher levels of loans and leases, and net purchases of AFS debt securities.

Financing Activities

Net cash provided by financing activities of $16.1 billion for the year ended December 31, 2021 was primarily attributable to higher levels of total deposits and securities sold under agreements to repurchase, partially offset by dividends paid on common stock, repayment of the 3.375% senior notes previously issued by the Corporation that matured in August 2021, lower short-term other borrowings, and the repayment of floating rate capital debt. The increase in total deposits was primarily attributable to higher levels of savings, money market and other interest-bearing deposits, non-U.S. interest-bearing deposits, and demand and other noninterest-bearing deposits.

For the year ended December 31, 2020, net cash provided by financing activities of $27.9 billion primarily reflected higher levels of total deposits and proceeds from the issuance by the Corporation of 1.95% senior notes, partially offset by lower short-term other borrowings, dividends paid on common stock, repayment of the 3.45% senior notes previously issued by the Corporation that matured in November 2020, lower securities sold under agreements to repurchase, and the redemption of the Series C Non-Cumulative Perpetual Preferred Stock. The increase in total deposits was primarily attributable to higher levels of non-U.S. office noninterest-bearing deposits, non-U.S. interest-bearing deposits, savings, money market and other interest-bearing deposits, and demand and other noninterest-bearing deposits.

2021 Annual Report | Northern Trust Corporation 61

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAPITAL MANAGEMENT

One of Northern Trust’s primary objectives is to maintain a strong capital position to merit the confidence of clients, counterparties, creditors, regulators and stockholders. A strong capital position helps Northern Trust execute its strategies and withstand unforeseen adverse developments.

Senior management, with oversight from the Capital Governance Committee and the full Board of Directors, is responsible for capital management and planning. Northern Trust manages its capital on both a total Corporation basis and a legal entity basis. The Capital Committee is responsible for measuring and managing capital metrics against levels set forth within the Capital Policy approved by the Capital Governance Committee of the Board of Directors. In establishing the metrics related to capital, a variety of factors are taken into consideration, including the unique risk profiles of Northern Trust’s businesses, regulatory requirements, capital levels relative to peers, and the impact on credit ratings.

Capital levels strengthened in 2021 as average stockholders’ equity increased $504.4 million, or 5%, reaching $11.7 billion. Total stockholders’ equity was $12.0 billion at December 31, 2021, as compared to $11.7 billion at December 31, 2020. Preferred dividends totaling $41.8 million were declared in 2021. During 2021, the Corporation maintained its quarterly common stock dividend of $0.70 per common share. Common dividends totaling $593.9 million were declared in 2021. During the year ended December 31, 2021, the Corporation repurchased 2,527,544 shares of common stock, including 394,326 shares withheld related to share-based compensation, at an average price per share of $105.90.

62 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In accordance with Basel III requirements, capital ratios are calculated using both the standardized and advanced approaches. For each ratio, the lower of the result calculated under the standardized approach and the advanced approach serves as the effective ratio for purposes of determining capital adequacy. The following table provides a reconciliation of the Corporation’s common stockholders’ equity to total risk-based capital and its risk-based capital ratios, under the applicable U.S. regulatory rules as of December 31, 2021 and 2020.

TABLE 43: CAPITAL ADEQUACY

($ In Millions)	DECEMBER 31, 2021						DECEMBER 31, 2020
	STANDARDIZED APPROACH			ADVANCED APPROACH			STANDARDIZED APPROACH			ADVANCED APPROACH
Common Equity Tier 1 Capital
Common Stockholders’ Equity	$	11,131.9		$	11,131.9		$	10,803.4		$	10,803.4
Goodwill and Other Intangible Assets, net of Deferred Tax Liability	(751.3)			(751.3)			(775.7)			(775.7)
Other	(103.5)			(103.5)			(65.5)			(65.5)
Total Common Equity Tier 1 Capital	10,277.1			10,277.1			9,962.2			9,962.2
Additional Tier 1 Capital
Preferred Stock	884.9			884.9			884.9			884.9
Other	(19.8)			(19.8)			(24.9)			(24.9)
Total Additional Tier 1 Capital	865.1			865.1			860.0			860.0
Total Tier 1 Capital	11,142.2			11,142.2			10,822.2			10,822.2
Tier 2 Capital
Qualifying Allowance for Credit Losses	184.8			—			259.9			—
Qualifying Subordinated Debt	799.8			799.8			949.7			949.7
Floating Rate Capital	—			—			53.9			53.9
Total Tier 2 Capital	984.6			799.8			1,263.5			1,003.6
Total Risk-Based Capital	$	12,126.8		$	11,942.0		$	12,085.7		$	11,825.8
Risk-Weighted Assets(1)	$	86,292.6		$	77,807.2		$	77,662.5		$	74,460.4
Total Assets – End of Period (EOP)	183,889.8			183,889.8			170,003.9			170,003.9
Adjusted Average Fourth Quarter Assets(2)	160,506.3			160,506.3			142,457.6			142,457.6
Total Loans and Leases – EOP	40,480.6			40,480.6			33,759.7			33,759.7
Common Stockholders’ Equity to:
Total Loans and Leases – EOP	27.50		%	27.50		%	32.00		%	32.00		%
Total Assets – EOP	6.05			6.05			6.35			6.35
Risk-Based Capital Ratios
Common Equity Tier 1 Capital	11.9		%	13.2		%	12.8		%	13.4		%
Tier 1 Capital	12.9			14.3			13.9			14.5
Total Capital (Tier 1 and Tier 2)	14.1			15.3			15.6			15.9
Tier 1 Leverage	6.9			6.9			7.6			7.6
Supplementary Leverage(3)	N/A			8.2			N/A			8.6

(1) Risk-weighted assets exclude, as applicable under each regulatory approach, amounts primarily related to goodwill, certain other intangible assets, and net unrealized gains or losses on securities and reflect adjustments for excess allowances for credit losses that have been excluded from Tier 1 and Tier 2 capital, if any.

(2) Adjusted average fourth quarter assets exclude amounts primarily related to goodwill, other intangible assets, and net unrealized gains or losses on securities.

(3) In November 2019, the Federal Reserve Board and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including the Corporation and the Bank, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020.

Further, on April 1, 2020, the Federal Reserve Board issued an interim final rule that requires bank holding companies, including the Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and expired on April 1, 2021.

On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The Bank did not elect to take this deduction.

The supplementary leverage ratios at December 31, 2021 and December 31, 2020 for the Corporation and the Bank reflect the impact of these final rules.

2021 Annual Report | Northern Trust Corporation 63

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As of December 31, 2021 and 2020, the Corporation’s capital ratios exceeded the requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements. As a result of the stress test results published by the Federal Reserve on June 25, 2020, Northern Trust’s stress capital buffer requirement for the 2020 Capital Plan cycle was set at 2.5%. The 2020 stress capital buffer became effective October 1, 2020, and resulted in an effective Common Equity Tier 1 capital ratio minimum requirement of 7.0% inclusive of this buffer. The results of the 2021 stress test, published by the Federal Reserve Board on June 24, 2021, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining in effect for the 2021 Capital Plan cycle, which began on October 1, 2021.

Further information regarding the Corporation’s and the Bank’s capital ratios and the minimum requirements for classification as “well-capitalized” is provided in the “Supervision and Regulation—Capital Adequacy Requirements” section of Item 1, “Business,” and Note 33, “Regulatory Capital Requirements,” provided in Item 8, “Financial Statements and Supplementary Data.”

CRITICAL ACCOUNTING ESTIMATES

Our significant accounting policies are described in Note 1, “Summary of Significant Accounting Policies,” provided in Item 8, “Financial Statements and Supplementary Data.” The use of estimates and assumptions is required in the preparation of financial statements in conformity with GAAP and actual results could differ from those estimates. The SEC has issued guidance relating to the disclosure of critical accounting estimates. Critical accounting estimates are those that require management to make subjective or complex judgments about the effect of matters that are inherently uncertain and may change in subsequent periods. Changes that may be required in the underlying assumptions or estimates in these areas could have a material impact on Northern Trust’s future financial condition and results of operations.

For Northern Trust, accounting estimates that are viewed as critical are those relating to the allowance for credit losses and pension plan accounting. Management has discussed the development and selection of each critical accounting estimate with the Audit Committee of the Board of Directors (Audit Committee).

Allowance for Credit Losses

The Corporation adopted Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13) on January 1, 2020, which significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. Upon adoption of ASU 2016-13, the Corporation recorded a $13.7 million increase in the allowance for credit losses with a corresponding cumulative effect adjustment to decrease retained earnings $10.1 million, net of income taxes. For more information on the adoption of ASU 2016-13, please refer to Note 2, “Recent Accounting Pronouncements,” provided in Item 8, “Financial Statements and Supplementary Data.”

The allowance for credit losses — which represents management’s estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships — is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Due to the inherent imprecision in accounting estimates, other estimates or assumptions could reasonably have been used in 2021 and changes in estimates are reasonably likely to occur from period to period.

The allowance for credit losses consists of the following components:

Evaluated on a Collective Basis. Expected credit losses are measured on a collective basis as long as the financial assets included in the respective pool share similar risk characteristics. If financial assets are deemed to not share similar risk characteristics, an individual assessment is warranted.

The allowance estimation methodology for the collective assessment is based on data representative of the Corporation’s financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into segments based on loan and obligor-specific factors, including loan type, borrower type, collateral type, loan size, and borrower credit quality. For each segment, the probability of default and loss given default are derived for each quarter of the remaining life of each instrument. For the first two years (the reasonable and supportable period), these

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

factors are derived by applying quarterly macroeconomic projections using models developed from historical data on macroeconomic factors and loans with similar factors. For periods beyond the reasonable and supportable period, Northern Trust reverts to its long-run historical loss experiences on a straight-line basis over four quarters. The projected exposure at default for every quarter is based on contractual balance projections as of each quarter-end, with adjustments made for potential draws on off-balance sheet commitments.

For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within the qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute adjustments to the quantitative allowance that may impact individual or multiple segments of the loan portfolio.

ASU 2016-13 requires the use of projected macroeconomic factors. The Corporation uses multiple forecasts approved by Northern Trust’s Macroeconomic Scenario Development Committee (MSDC). The baseline forecast aligns with the Corporation’s latest thinking on macroeconomic projections for the next eight quarters. The forecasts are weighted at each evaluation period and are management’s best estimate of future economic projections at that time.

The allowance estimate is sensitive to changes in portfolio composition, portfolio quality, and macroeconomic forecasts. Increases in the amount of borrowing and material downgrades to the quality of the lending portfolio will increase the reserve, all else equal. Similarly, deteriorating projections for macroeconomic conditions will increase the reserve. Macroeconomic factors that are particularly correlated to Northern Trust’s loan and lease portfolio are equity market values, market volatility, corporate profits, residential and commercial real estate price indices, unemployment, and disposable income. To demonstrate the sensitivity to changes in macroeconomic conditions, Northern Trust applied a 100% probability weighting to downturn conditions, resulting in an increase to the collective component of the allowance for the loan and lease portfolio of approximately $128.3 million. The investment security and other financial assets portfolios are less sensitive to macroeconomic factors in terms of overall reserve impact due to factors such as high credit quality, short duration, and low historical losses.

The commercial and institutional (C&I) portfolio utilizes Northern Trust’s internal borrower rating assessments to determine initial credit quality. A sensitivity analysis was performed to determine the impact of upgrades or downgrades by shifting the rating up or down by one rating class, assuming no changes to other factors, such as macroeconomic projections or qualitative adjustments. The analysis excludes defaulted loans and does not assume a default event; hence, borrowers at the lowest non-default rating were not downgraded. Similarly, those at the highest rating could not be upgraded. Assuming the final forecast probability weighting, the collective component of the allowance assigned to the C&I portfolio would increase by approximately $78.1 million if all C&I borrowers were downgraded by one performing rating class. The C&I collective allowance would decrease by approximately $21.3 million if borrower ratings were upgraded by one rating class (if possible).

The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Credit Risk Management, Treasury, Corporate Finance, the Economic Research group, and each of Northern Trust’s business units. The Credit Loss Reserve Committee determines the probability weights applied to each forecast approved by MSDC, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework.

Evaluated on an Individual Basis. The allowance is determined through an individual evaluation of financial assets that have defaulted that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Analysis and Controls. The quarterly analysis of the individual and collective allowance components and the control process maintained by Credit Risk Management and the lending staff are the principal methods relied upon by management for the timely identification and estimation of individual expected credit losses. In addition to Northern Trust’s own experience, management also considers regulatory guidance. Control processes and analyses employed to determine an appropriate level of allowance for credit losses are reviewed at least annually and modified as considered appropriate.

Management believes that the allowance for credit losses adequately considers these uncertainties and has been established at an appropriate level. Actual losses may vary from current estimates and the amount of the provision for credit losses may be greater or less than actual net charge-offs in any particular period.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Pension Plan Accounting

Northern Trust maintains a noncontributory defined benefit pension plan covering substantially all U.S. employees (U.S. Qualified Plan) and a U.S. noncontributory supplemental pension plan (U.S. Non-Qualified Plan). Certain European-based employees also retain benefits in local defined benefit pension plans, of which the majority are closed to new employees and to future benefit accruals. Measuring cost and reporting liabilities resulting from defined benefit pension plans requires the use of several assumptions regarding future interest rates, asset returns, compensation increases, mortality rates, and other actuarial-based projections relating to the plans. Due to the long-term nature of this obligation and the estimates that are required to be made, the assumptions used in determining the periodic pension expense and the projected benefit obligation are closely monitored and reviewed annually for adjustments that may be required. Pension accounting guidance requires that differences between estimates and actual experience be recognized as other comprehensive income in the period in which they occur. The differences are amortized into net periodic pension expense from accumulated other comprehensive income over the average remaining service period of eligible participants. As a result, differences between the estimates made in the calculation of periodic pension expense and the projected benefit obligation and actual experience affect stockholders’ equity in the period in which they occur but continue to be recognized as expense systematically and gradually over subsequent periods.

Northern Trust recognizes the significant impact that these pension-related assumptions have on the determination of the pension obligations and related expense and has established procedures for monitoring and setting these assumptions each year. These procedures include an annual review of actual demographic and investment experience with the pension plans’ actuaries. In addition to actual experience, adjustments to these assumptions consider observable yields on fixed income securities, known compensation trends and policies, as well as economic conditions and investment strategies that may impact the estimated long-term rate of return on plan assets.

In determining the pension expense for the U.S. Qualified Plan in 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, and 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021. The application of settlement accounting in 2021 required interim re-measurements of the U.S. Qualified Plan throughout 2021. The discount rate utilized for the U.S. Non-Qualified Plan as of December 31, 2020 was 2.45% . For both plans, the rate of increase in the compensation level is based on a graded schedule from 9.00% to 2.50% that averaged 4.97%. The expected long-term rate of return on U.S. Qualified Plan assets was 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 30, 2021.

In evaluating possible revisions to pension-related assumptions for the U.S. pension plans as of Northern Trust’s December 31, 2021 measurement date, the following were considered:

•Discount Rate: Northern Trust estimates the discount rate for its U.S. pension plans by applying the plan specific projected cash flows for future benefit payments for each plan to the Aon AA Above Median yield curve as of the measurement date. This yield curve is composed of individual zero-coupon interest rates for 198 different time periods over a 99-year time horizon. Zero-coupon rates utilized by the yield curve are mathematically derived from observable market yields for AA-rated corporate bonds. This yield curve model referenced by Northern Trust in establishing the discount rate resulted in a rate of 3.03% and 2.80% at December 31, 2021 for the U.S. Qualified and U.S. Non-Qualified Plans, respectively.

•Compensation Level: Based on a review of actual and anticipated salary experience, the compensation scale assumption is based on a graded schedule from 9.00% to 2.50% that averages 4.97%.

•Rate of Return on Plan Assets: The expected return on plan assets is based on an estimate of the long-term (30 years) rate of return on plan assets, which is determined using a building block approach that considers the current asset mix and estimates of return by asset class based on historical experience, giving proper consideration to diversification and rebalancing. Current market factors such as inflation and interest rates are also evaluated before long-term capital market assumptions are determined. Peer data and historical returns are reviewed to check for reasonability and appropriateness. As a result of these analyses, Northern Trust’s rate of return assumption for the U.S. Qualified Plan is 5.25% for 2022.

•Mortality Table: As of December 31, 2021, Northern Trust has adopted the aggregate Pri-2012 mortality table with a 2012 base year, which was released by the Society of Actuaries in October 2019. Northern Trust’s pension obligations reflect proposed future improvement under scale MP-2021, which was released by the Society of Actuaries in October 2021. This assumption was updated at December 31, 2021 from improvement scale MP-2020. The updated improvement scale applies to annuity payments only and results in slightly higher projected mortality improvement rates than estimated by the MP-2020 improvement scale. Mortality assumptions on lump sum payments remain static and continue to be in line with the IRS prescribed table for minimum lump sums in 2022.

Excluding pension settlement charges, net pension expense in 2022 is expected to decrease by approximately $10.1 million, primarily driven by lower loss amortization due to strong asset returns in previous years and the 2021 settlement recognition.

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In order to illustrate the sensitivity of these assumptions on the expected U.S pension plans’ periodic pension expense in 2022 and the projected benefit obligation as of December 31, 2021, the following table is presented to show the effect of increasing or decreasing each of these assumptions by 25 basis points.

TABLE 44: SENSITIVITY OF U.S. PENSION PLANS ASSUMPTIONS

($ In Millions)	25 BASIS POINT INCREASE		25 BASIS POINT DECREASE
Increase (Decrease) in 2022 Pension Expense
Discount Rate Change	$	(3.8)	$	4.0
Compensation Level Change	2.6		(2.5)
Rate of Return on Plan Assets Change	(3.8)		3.8
Increase (Decrease) in 2021 Projected Benefit Obligation
Discount Rate Change	(50.3)		53.2
Compensation Level Change	11.1		(10.7)

Pension Contributions. The deduction limits specified by the Internal Revenue Code for contributions made by sponsors of defined benefit pension plans are based on a “Target Liability” under the provisions of the Pension Protection Act of 2006. There were no contributions to the U.S. Qualified Plan for the 2021 plan year. The minimum required contribution to the U.S. Qualified Plan is expected to be zero in 2022. The maximum deductible contribution is estimated at $413.0 million for 2022.

FAIR VALUE MEASUREMENTS

The preparation of financial statements in conformity with GAAP requires certain assets and liabilities to be reported at fair value. As of December 31, 2021, approximately 21% of Northern Trust’s total assets and less than 1% of total liabilities were carried on the consolidated balance sheets at fair value. As of December 31, 2020, approximately 25% of Northern Trust’s total assets and approximately 1% of its total liabilities were carried on the consolidated balance sheets at fair value. As discussed more fully in Note 3, “Fair Value Measurements,” provided in Item 8, “Financial Statements and Supplementary Data,” GAAP requires entities to categorize financial assets and liabilities carried at fair value according to a three-level valuation hierarchy. The hierarchy gives the highest priority to quoted, active market prices for identical assets and liabilities (Level 1) and the lowest priority to valuation techniques that require significant management judgment because one or more of the significant inputs are unobservable in the market place (Level 3). Approximately 6% and 7% of Northern Trust’s assets carried at fair value are classified as Level 1 as of December 31, 2021 and 2020, respectively. Northern Trust typically does not hold equity securities or other instruments that are actively traded on an exchange.

As of December 31, 2021, approximately 94% of Northern Trust’s assets and 96% of its liabilities carried at fair value are categorized as Level 2, as they are valued using models in which all significant inputs are observable in active markets. Investment debt securities classified as AFS make up 98% of Level 2 assets with the remaining 2% primarily consisting of derivative financial instruments. Level 2 liabilities are comprised solely of derivative financial instruments.

As of December 31, 2020, approximately 93% of Northern Trust’s assets and 98% of its liabilities carried at fair value are categorized as Level 2, as they are valued using models in which all significant inputs are observable in active markets. Investment debt securities classified as AFS make up 97% of Level 2 assets with the remaining 3% primarily consisting of derivative financial instruments. Level 2 liabilities are comprised solely of derivative financial instruments.

Northern Trust’s Level 2 assets include AFS and trading account securities, the fair values of which are determined predominantly by external pricing vendors. Northern Trust has a well-established process to validate prices received from pricing vendors as discussed more fully in Note 3, “Fair Value Measurements,” provided in Item 8, “Financial Statements and Supplementary Data.”

As of December 31, 2021 and 2020, all derivative assets and liabilities, excluding the swap related to the sale of certain Visa Class B common shares described below, were classified as Level 2 and approximately 96% and 95%, respectively, were measured on a notional value basis, related to client-related and trading activities, predominantly consisting of foreign exchange contracts. Derivative instruments are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect contractual terms of contracts. Northern Trust evaluated the impact of counterparty credit risk and its own credit risk on the valuation of derivative instruments. Factors considered included the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments are not considered material.

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As of December 31, 2021 and 2020, Northern Trust’s Level 3 liabilities consisted of swaps that Northern Trust entered into with the purchaser of 1.1 million and 1.0 million shares of Visa Inc. Class B common stock (Visa Class B common shares) previously held by Northern Trust and sold in June 2016 and 2015, respectively. Pursuant to the swaps, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Inc. Class A common stock (Visa Class A common shares), such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swaps also require periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swaps are determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated growth rate of the Visa Class A common share price. See “Visa Class B Common Shares” under Note 26, “Commitments and Contingent Liabilities,” provided in Item 8, “Financial Statements and Supplementary Data,” for further information.

While Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate and consistent with other market participants, the use of different methodologies or assumptions, particularly as applied to Level 3 assets, could have a material effect on the computation of their estimated fair values.

RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS

In November 2021, the Financial Accounting Standards Board (FASB) issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (ASU 2021-10). The amendments in ASU 2021-10 require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance within Topic 958, Not-for-Profit Entities, or International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance. ASU 2021-10 is effective for interim and annual periods beginning after December 15, 2021, although early adoption is permitted. ASU 2020-10 is not expected to have a significant impact on Northern Trust’s consolidated financial condition or results of operations.

RISK MANAGEMENT

Risk Management Overview

Northern Trust employs an integrated risk management framework to support its business decisions and the execution of its corporate strategies. The framework provides a methodology to identify, manage, report and govern both internal and external risks to Northern Trust, and promotes a culture of risk awareness and good conduct across the organization. Northern Trust’s risk culture encompasses the general awareness, attitude and conduct of employees with respect to risk and the management of risk across all lines of defense within the organization. Northern Trust cultivates a culture of effective risk management by defining and embedding risk management accountabilities in all employee performance expectations and provides training, development and performance rewards to reinforce this culture.

Northern Trust’s risk management framework contains three inter-related elements, designed to support consistent enterprise risk identification, management and reporting: a comprehensive risk inventory, a static taxonomy of risk categories and a dynamic taxonomy of risk themes. The risk inventory is a detailed register of the risks inherently faced by Northern Trust. The risk categories and risk themes are classification systems used for classifying and managing the risk inventory and enabling different risk profile views. All identified risks inherent in Northern Trust’s business activities are cataloged into the following risk categories: credit, operational, fiduciary, compliance, market, liquidity, and strategic risk. All material risks are also dynamically cataloged into various risk themes which are defined groupings that share common characteristics, focus on business outcomes and span across risk categories.

Northern Trust implements its risk management framework through a “three lines of defense” operating model, embedding a robust risk management capability within its businesses. The model, used to communicate risk management expectations across the organization, contains three roles, each with a complementary level of risk management accountability. Within this operating model, Northern Trust’s businesses are the first line of defense for protecting it against the risks inherent in its businesses and are supported by dedicated business risk management teams. The Risk Management function, the second line of defense, sets the direction for Northern Trust’s risk management activities and provides aggregate risk oversight and reporting in support of risk governance. Audit Services, the third line of defense, provides independent assurance as to the effectiveness of the integrated risk framework.

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Risk Governance and Oversight Overview

Risk governance is an integral aspect of corporate governance at Northern Trust, and includes clearly defined accountabilities, expectations, internal controls and processes for risk-based decision-making and escalation of issues. The following diagram provides a high-level overview of Northern Trust’s risk governance structure, highlighting oversight by the Board of Directors and key risk-related committees.

TABLE 45: RISK GOVERNANCE STRUCTURE

Northern Trust Corporation Board of Directors
Audit Committee	Business Risk Committee	Capital Governance Committee	Compensation and Benefits Committee
	–Cybersecurity Risk Oversight Subcommittee

Global Enterprise Risk Committee (GERC)
Credit Risk Committee	Market & Liquidity Risk Committee	Operational Risk Committee	Fiduciary Risk Committee	Compliance & Ethics Oversight Committee	Information Technology Risk Committee	Model Risk Oversight Committee

The Board of Directors provides oversight of risk management directly and through certain of its committees: the Audit Committee, the Business Risk Committee, the Capital Governance Committee and the Compensation and Benefits Committee. The Board of Directors annually approves Northern Trust’s Risk Management Framework and Corporate Risk Appetite Statement.

The Audit Committee provides oversight with respect to financial reporting and legal risk.

The Business Risk Committee assumes primary responsibility and oversight with respect to the credit risk, operational risk, fiduciary risk, compliance risk, market risk, liquidity risk, strategic risk, and associated risk themes. The Cybersecurity Risk Oversight Subcommittee is a subcommittee of the Business Risk Committee and assists the Business Risk Committee in discharging its duties with respect to risks related to cybersecurity inherent in Northern Trust’s businesses.

The Compensation and Benefits Committee oversees the development and operation of Northern Trust’s incentive compensation program. The Committee annually reviews management’s assessment of the effectiveness of the design and performance of Northern Trust’s incentive compensation arrangements and practices in providing incentives that are consistent with Northern Trust’s safety, soundness, and culture. This assessment includes an evaluation of whether Northern Trust’s incentive compensation arrangements and practices discourage inappropriate risk-taking behavior by participants.

The Capital Governance Committee assists the Board of Directors in discharging its oversight duties with respect to capital management and resolution planning activities. Among other responsibilities, the Capital Governance Committee oversees Northern Trust’s capital management assessments, forecasting, and stress testing processes and activities, including the annual CCAR exercise, and challenges management, as appropriate, on various elements of such processes and activities. Accordingly, the Capital Governance Committee provides oversight with respect to Northern Trust’s linkage of material risks to the capital adequacy assessment process.

The Chief Risk Officer (CRO) oversees Northern Trust’s management of risk and compliance, promotes risk awareness and fosters a proactive risk management environment wherein risks inherent in the business strategy are identified, understood, appropriately monitored and mitigated. The CRO reports directly to the Business Risk Committee and the Corporation’s Chief Executive Officer. The CRO regularly advises the Business Risk Committee and reports to the Committee at least quarterly on risk exposures, risk management deficiencies and emerging risks. In accordance with the risk management framework, the CRO and the Risk Management executive leadership team of Northern Trust, together with the Chief Financial Officer, Head of Capital and Resolution Planning, General Counsel and Chief Human Resources Officer, meet as the Global Enterprise Risk Committee (GERC) to provide executive management oversight and guidance with respect to the management of the categories of risk and risk themes within Northern Trust. The Chief Audit Executive, or his or her designee, also attends GERC meetings as a non-voting member. Among other risk management responsibilities, GERC receives reports, escalations, or recommendations from senior risk committees that are responsible for the management of risk, and from time to time may delegate responsibility to such committees for risk issues. Senior risk committees include:

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The Credit Risk Committee (CRC) establishes and monitors credit-related policies and practices throughout Northern Trust and promotes their uniform application.

The Market & Liquidity Risk Committee (MLRC) oversees activities relating to the management of market and liquidity risks by facilitating a focused review of market and liquidity risk exposures and providing rigorous challenge of related policies, key assumptions, and practices.

The Operational Risk Committee (ORC) provides independent oversight and is responsible for setting the operational risk-related policies and developing and implementing the operational risk management framework and programs that support coordination of operational risk activities.

The Fiduciary Risk Committee (FRC) is responsible for establishing and reviewing the fiduciary risk policies and establishing the fiduciary risk framework, governance and programs that support the coordination of fiduciary risk activities.

The Compliance & Ethics Oversight Committee (CEOC) provides oversight and direction with respect to compliance policies, implementation of the compliance and ethics program, and the coordination of regulatory compliance initiatives across the Corporation.

The Information Technology Risk Committee (ITRC) provides oversight and direction with respect to information security, technology and cyber risk. The committee is responsible for recommending the policies related to, and overseeing development and implementation of the risk management framework, standards and processes supporting coordination and governance of, information security, technology and cyber risk management activities.

The Model Risk Oversight Committee (MROC) is responsible for providing management attention, direction, and oversight of the model risk management framework and model risk within Northern Trust.

In addition to the aforementioned committees, Northern Trust establishes business and regional risk committees that also report into GERC.

Risk Assessment, Appetite and Reporting Processes

As part of the integrated risk framework, Northern Trust has established key risk identification and risk management processes, embedded within its businesses to enable a risk-informed profile that supports its business decisions and the execution of its corporate strategies. Northern Trust’s risk assessment process consists of a series of programs across the first and second lines of defense that identify, measure, manage and report risks in line with risk appetite and guidelines.

Northern Trust defines its risk appetite as the aggregate level and types of risk the Board of Directors and senior management are willing to assume to achieve the Corporation’s strategic objectives and business plan, consistent with prudent management of risk and applicable capital, liquidity, and other regulatory requirements. It includes consideration of the likelihood and impact of risks, using both monetary loss and non-financial measures across risk themes to monitor against tolerance thresholds and guideline levels that trigger escalation to risk committees, senior management, and the Board of Directors or committees thereof, as appropriate.

Risk Control

Risk Control is an internal, independent review function within the Risk Management function. Risk Control is managed by the Head of Risk Control and is comprised of Model Risk Management, Credit Review, and Global Compliance Testing groups, each with its own risk focus and oversight. Model Risk Management is responsible for the implementation and management of the enterprise-wide model risk framework and independently validating new models and reviewing and re-validating existing models. Credit Review provides an independent, ongoing assessment of credit exposure and related credit risk management processes across Northern Trust. Lastly, Global Compliance Testing evaluates the effectiveness of procedures and controls designed to comply with relevant laws and regulations, as well as corresponding Northern Trust policies governing regulatory compliance activities. The Business Risk Committee has oversight responsibility with respect to Risk Control generally as well as each of these groups.

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Audit Services

Audit Services is an independent control function that assesses and validates controls within Northern Trust’s risk management framework. Audit Services is managed by the Chief Audit Executive with oversight from the Audit Committee. Audit Services tests the overall adequacy and effectiveness of the system of internal controls associated with the framework on an ongoing basis and reports the results of these audits directly to the Audit Committee. Audit Services includes professionals with a broad range of audit and industry experience, including risk management expertise. The Chief Audit Executive reports directly to the Audit Committee and administratively reports to the Corporation’s Chief Executive Officer and is a non-voting member of GERC.

Credit Risk

Credit risk is the risk to interest income or principal from the failure of a borrower, issuer, or counterparty to perform on an obligation.

Credit Risk Overview

Credit risk is inherent in many of Northern Trust’s activities. A significant component of credit risk relates to loans, leases, securities, and counterparty-related exposures. Northern Trust’s loan portfolio differs significantly from those of other large U.S. financial institutions in that Northern Trust is generally:

•not an originator of loan products to be sold into a secondary market or to be bundled into asset securitizations;

•not an agent bank or syndicator of loans, where risk management is achieved post-close through the sale of participations; and

•not a participant in leveraged financial transactions, such as project finance, private-equity-originated acquisition financing or hedge fund leveraging.

Credit Risk Framework and Governance

The Credit Risk Management function is the focal point of the credit risk framework and, while independent of the businesses, it works closely with them to achieve the goal of assuring proactive management of credit risk. To monitor and control credit risk, the Credit Risk Management function maintains a framework that consists of policies, standards, and programs designed to promote a prudent relationship-based credit culture. This function also monitors adherence to corporate policies, standards, programs, and external regulations.

The Credit Risk Management function provides a system of checks and balances for Northern Trust’s diverse credit-related activities by monitoring these activities and practices and promoting their uniform application throughout Northern Trust.

The credit risk framework provides authorities for approval of the extension of credit. Individual credit authority for commercial and personal loans is limited to specified amounts and maturities. Credit requests exceeding individual authority because of amount, rating, term or other conditions, are referred to the relevant Group Credit Approval Committee. Credit decisions involving exposure in excess of these limits require the approval of the Senior Credit Committee. The Capital Markets Credit Committee has sole credit authority for the approval, modification, or renewal of credit exposure to all wholesale market counterparties.

The Credit Risk Committee establishes and monitors credit-related policies and programs throughout Northern Trust and promotes their uniform application. The Chief Credit Officer reports directly to the CRO and chairs the CRC. Independent oversight and review of the credit risk framework also is provided by Risk Control.

Credit Risk Measurement

An integral component of credit risk measurement is Northern Trust’s internal risk rating system. Northern Trust’s internal risk rating system enables identification, measurement, approval and monitoring of credit risk. Calculations include entity-specific information about the obligor’s or counterparty’s probability of default and exposure-specific information about loss given default, exposure at default and maturity.

The Credit Risk Management function is responsible for the ongoing oversight of each model that supports the internal risk-rating system. Independent model governance and oversight is further supported by the activities of Risk Control.

Loans and Other Extensions of Credit

A significant component of credit risk relates to the loan portfolio, including contractual obligations such as legally binding commitments to extend credit, commercial letters of credit, and standby letters of credit. These contractual obligations and arrangements are discussed in Note 26, “Commitments and Contingent Liabilities,” provided in Item 8, “Financial Statements and Supplementary Data.”

Undrawn commitments to extend credit generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount

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does not necessarily represent future loans or liquidity requirements. The following table provides information about the industry sector and expiration dates of undrawn commitments to extend credit as of December 31, 2021.

TABLE 46: UNDRAWN COMMITMENTS TO EXTEND CREDIT BY INDUSTRY SECTOR

AS OF DECEMBER 31, 2021	COMMITMENT EXPIRATION
($ In Millions)	TOTAL COMMITMENTS		ONE YEAR AND LESS		OVER ONE YEAR		OUTSTANDING LOANS
Commercial
Commercial and Institutional
Finance and Insurance	$	4,778.8	$	2,769.7	$	2,009.1	$	4,950.5
Holding Companies	—		—		—		34.6
Manufacturing	6,721.6		786.2		5,935.4		1,602.2
Mining	758.0		236.0		522.0		94.1
Public Administration	100.0		50.0		50.0		14.6
Retail Trade	812.7		207.3		605.4		235.5
Services	5,742.0		2,126.0		3,616.0		3,532.6
Transportation and Warehousing	279.6		1.5		278.1		262.8
Utilities	1,208.0		25.4		1,182.6		21.5
Wholesale Trade	797.7		171.5		626.2		396.4
Other Commercial	230.4		197.9		32.5		344.4
Commercial and Institutional(1)	21,428.8		6,571.5		14,857.3		11,489.2
Commercial Real Estate	357.9		61.8		296.1		4,326.3
Lease Financing, net	—		—		—		11.0
Non-U.S.	1,514.4		1,096.1		418.3		1,990.2
Other	97.2		97.2		—		670.7
Total Commercial	23,398.3		7,826.6		15,571.7		18,487.4
Personal
Residential Real Estate	665.9		118.4		547.5		6,319.9
Private Client	2,499.5		766.4		1,733.1		15,256.3
Non-U.S.	858.5		855.6		2.9		381.8
Other	—		—		—		35.2
Total Personal	4,023.9		1,740.4		2,283.5		21,993.2
Total	$	27,422.2	$	9,567.0	$	17,855.2	$	40,480.6

(1) Commercial and Institutional industry sector information is presented on the basis of the North American Industry Classification System (NAICS).

As part of Northern Trust’s credit processes, the Credit Risk Management function oversees a range of portfolio reviews that focus on significant and/or weaker-rated credits. This approach allows management to take remedial action in an effort to deal with potential problems. An integral part of the Credit Risk Management function is a formal review of past due and potential problem loans to determine which credits, if any, need to be placed on nonaccrual status or charged off. Northern Trust maintains a loan portfolio watch list for adversely classified credit exposures that includes all nonaccrual credits as well as other loans with elevated risk of default. Independent from the Credit Risk Management function, Credit Review undertakes both on-site and off-site file reviews that evaluate effectiveness of management’s implementation of the Credit Risk Management’s requirements.

Counterparty Credit Risk

Counterparty credit risk for Northern Trust primarily arises from a variety of funding, treasury, trading and custody-related activities, including over-the-counter (OTC) currency and interest rate derivatives, and from indemnified securities lending transactions. Credit exposure to counterparties is managed by use of a framework for setting limits by product type and exposure tenor.

To calculate exposure, Northern Trust treats repurchase agreements, reverse repurchase agreements and indemnified securities lending transactions as repo-style transactions. Foreign exchange exposures and interest rate derivatives are treated as OTC derivatives. The exposure at default measurement methodology for each eligible type of counterparty credit exposure, including the use of netting and collateral as risk mitigants, is determined based on operational requirements, the characteristics of the contract type and the portfolio size and complexity.

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Credit Risk Mitigation

Northern Trust considers cash flow to be the primary source of repayment for client-related credit exposures. However, Northern Trust employs several different types of credit risk mitigants to manage its overall credit risk in the event cash flow is not sufficient to repay a credit exposure. Northern Trust broadly groups its risk mitigation techniques into the following three primary categories.

Physical and Financial Collateral: Northern Trust’s primary risk mitigation approaches include the requirement of collateral. Residential and commercial real estate exposures are typically secured by properly margined mortgages on the property. In cases where loans to commercial or certain Wealth Management clients are secured by marketable securities, the daily values of the securities are monitored closely to ensure adherence to collateral coverage policies.

Netting: On-balance sheet netting is employed where applicable for counterparties with master netting agreements. Netting is primarily related to foreign exchange transactions with major banks and institutional clients subject to eligible master netting agreements. Northern Trust has elected to take the credit risk mitigation capital benefit of netting within its regulatory capital calculation at this time.

Guarantees: Personal and corporate guarantees are often taken to facilitate potential collection efforts and to protect Northern Trust’s claims relative to other creditors. Northern Trust has elected not to take the credit risk mitigation capital benefit of guarantors within its regulatory capital calculation at this time.

Another important risk management practice is the avoidance of undue concentrations of exposure, such as in any single (or small number of related) obligor/counterparty, loan type, industry, geography, country or risk mitigant. Processes are in place to establish limits on certain concentrations and the monitoring of adherence to the limits.

Operational Risk

Operational risk is the risk of loss from inadequate or failed internal processes, human factors and systems, or from external events.

Operational Risk Overview

Operational risk is inherent in each of Northern Trust’s businesses and corporate functions and reflects the potential for inadequate information systems, operating problems, challenges related to reliance on third parties, product design and delivery difficulties, potential legal actions or other catastrophes to result in losses. This includes the potential that continuity of service and resiliency may be impacted.

Operational risk includes information technology and cybersecurity, compliance, fiduciary and legal risks, which under the Corporation’s risk structure are governed and managed explicitly.

Operational Risk Framework and Governance

To monitor and control operational risk, Northern Trust maintains a framework consisting of risk management policies, programs and practices designed to promote a sound operational environment and maintain the Corporation’s operational risk profile and losses within approved risk appetites and guidelines. The framework is deployed consistently and globally across all businesses and its objective is to identify and measure the factors that influence risk and drive action to reduce future loss events. The Operational Risk Management function is responsible for defining the operational risk management framework and providing independent oversight of the framework implementation and application across Northern Trust. It is the responsibility of each business to implement the enterprise-wide operational risk framework and business-specific risk management programs to identify, monitor, measure, manage and report on operational risk and mitigate Northern Trust’s exposure to loss. Several key programs support the operational risk framework, including:

•Loss Event Data Program - a program that collects internal and external loss data for use in monitoring operational risk exposure, various business analyses and a Basel Advanced Measurement Approach (AMA) capital quantification.

•Risk and Control Self-Assessment - a comprehensive, structured risk management process used by Northern Trust’s businesses to identify, measure, monitor and mitigate operational risk exposures throughout the enterprise.

•Operational Risk Scenario Analysis - a systematic process of obtaining expert opinions from business managers and risk management experts to derive reasoned assessments of the likelihood of occurrence and the potential loss impact of plausible operational losses.

•Product and Process Risk Management Program - a program used for evaluating and managing risks associated with the introduction of new and modified noncredit products and services, significant changes to operating processes, and related significant loss events.

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•Outsourcing Risk Management Program - a program that provides processes for appropriate risk assessment, measurement, monitoring and management of outsourced technology and business process outsourcing.

•Global Fraud Risk - a program designed to prevent, detect and respond to attempted or actual fraud impacting the bank and its clients globally.

•Global Privacy Program - a program that sets forth a consistent, global approach to compliance with all applicable laws, rules, and regulations relating to privacy and establishes overarching principles for the responsible use and protection of confidential information. The Program is designed to guide Northern Trust to more effectively identify, assess, manage and mitigate privacy risks and privacy incidents.

•Information Security and Technology Risk Management - a framework that sets forth a consistent, global approach to communicate risk management processes and controls addressing information security, including cyber threats, technology and compliance risks to the organization.

•Operational Resiliency and Recovery Management Program - a program designed to protect life safety, minimize and manage the business impact and support the resumption of mission-critical and economic functions for clients following an incident.

•Physical Security - a program that provides for the life safety of Northern Trust partners, clients, and visitors worldwide.

•Insurance Management Program - a program designed to reduce the monetary impact of certain operational loss events through the securing of appropriate insurance policy protection.

As discussed in Risk Control, Model Risk Management also is part of the operational risk framework.

The ORC is responsible for overseeing the activities of Northern Trust related to the management of operational risk including establishing and maintaining the Corporate Operational Risk Policy and approving the operational risk framework and programs. This committee has the expanded role of coordinating operational risk issues related to information technology, cybersecurity, compliance and fiduciary risks. The purpose of this committee is to provide executive management’s insight and guidance to the management of existing and emerging operational risks. This includes identification and assessment of evolving risk trends across the operational risk framework and how these can be best managed.

Operational Risk Measurement

Northern Trust utilizes the AMA capital quantification process to estimate required capital for the Corporation and applicable U.S. banking subsidiaries. Northern Trust’s AMA capital quantification process incorporates outputs from the Loss Event Data, Risk and Control Self-Assessment and Operational Risk Scenario Analysis programs to derive required capital. Business environment factor information is used to estimate loss frequency. The AMA capital quantification process uses a Loss Distribution Approach methodology to combine frequency and severity distributions to arrive at an estimate of the potential aggregate loss at the 99.9th percentile of the aggregate loss distribution over a one-year time horizon.

Information Security and Technology Risk Management

Effective management of risks related to the confidentiality, integrity and availability of information is crucial in an environment of increasing cyber threat and requires a structured approach to establish and communicate expectations and required practices. Northern Trust’s information security, technology, and cyber risk management framework provides the overall structure for managing the respective risks in a sustainable manner. The framework is supported by the Information Security, Technology, and Cyber Risk Management Policy, which is the highest-level governing document and is approved by the Business Risk Committee. In addition, the framework is supported by an organizational structure that reflects support from executive management and includes risk committees comprised of members from across the business, including the Information Technology Risk Committee (ITRC). The ITRC is chaired by the Chief Information Risk Officer, who regularly reports to the Board of Directors and its subcommittees, as appropriate, on the status of the information security, technology, and cyber risk profile.

The governance process, internal controls and risk management practices are designed to keep risk at levels appropriate to Northern Trust’s overall risk appetite and the inherent risk in the markets in which Northern Trust operates. Northern Trust employees are responsible for promoting information security as well as adhering to applicable policies and standards and other means provided to them to safeguard electronic information and business systems within their care. In cases where Northern Trust relies on vendors to perform services, controls are routinely reviewed for alignment with industry standards and their ability to protect information. Any findings identified are remediated following a risk-based approach.

In addition to the many information security controls managed and monitored within the organization, Northern Trust uses external third-party security teams on a regular basis to assess effectiveness. These teams perform program maturity

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assessments, penetration tests, security assessments and reviews of Northern Trust’s vulnerability to cyber-attacks. Northern Trust operates a global security operations center for threat identification and response. This center aggregates security threat information from systems and platforms across the business, and alerts the organization in accordance with its documented Cyber Incident Response Plan.

The Cyber Incident Response Plan is used to respond to cybersecurity incidents. A cybersecurity incident is defined as an incident caused by damaging activity, which requires actions to prevent and respond to disruptions, denials, compromises or exfiltration that impact the confidentiality, integrity and availability of the assets of Northern Trust or its clients. The plan provides a streamlined approach that can be invoked rapidly to address matters that raise enterprise concern and to communicate impact, actions and status to senior management, including the Chief Information Security Officer and Chief Information Risk Officer, and appropriate stakeholders. The plan is designed to work with enterprise-level response plans, and is reviewed, tested, and updated regularly.

Northern Trust’s disclosure procedures and controls also address cybersecurity incidents and include elements to ensure that there is an analysis of potential disclosure obligations arising from any such incidents. Northern Trust maintains compliance programs to address the applicability of restrictions on securities trading while in possession of material, nonpublic information, including in instances in which such information may relate to cybersecurity incidents.

Northern Trust also maintains a comprehensive Information and Cyber Security Training and Awareness practice providing baseline and targeted education and awareness for employees and contractors. This program includes at least one required annual online training class for all employees, supplemental refresher training throughout the year, targeted training based on roles and risk levels, multiple simulated phishing and vishing attacks with associated training, the distribution of regular information security awareness materials, and the designation of individuals as Information Security and Privacy champions within the businesses.

Operational Resiliency and Recovery Management

Northern Trust’s operational resiliency approach encompasses operational resiliency and recovery processes enterprise-wide (including staff, technology and facilities) to anticipate and limit disruptions and to ensure that following a disaster or business interruption Northern Trust is able to resume mission-critical business and economic functions and fulfills all regulatory and legal requirements.

Northern Trust’s operational resiliency mitigation and preventative measures include sophisticated physical security, resilient designs and peer capacity for its corporate data centers, a highly redundant global network, robust network security, resiliency centers that offer alternative workstations and transfer of work and work-from-home programs that provide further capability.

All of Northern Trust’s businesses are required to risk-assess their critical functions regularly and develop business continuity plans covering resource requirements (people, systems, vendor relationships and other assets), arrangements for obtaining these resources and prioritizing the resumption of each function in compliance with corporate standards. The business continuity programs of all critical third-party vendors to Northern Trust are reviewed on a regular basis. All of Northern Trust’s businesses test their plans at least annually. The ORC annually reviews and presents the corporate business continuity plan to the Business Risk Committee. In 2020 and 2021, Northern Trust utilized these business continuity plans to respond to the COVID-19 pandemic.

Fiduciary Risk

Fiduciary risks are risks arising from the failure in administering or managing financial and other assets in clients’ fiduciary accounts: i) to adhere to a fiduciary standard of care if required under the terms of governing documents or applicable laws; or ii) to properly discharge fiduciary duties. Fiduciary status may hinge on the nature of a particular function being performed and fiduciary standards may vary by jurisdiction, type of relationship and governing document.

Fiduciary Risk Overview

The fiduciary risk management framework identifies, assesses, measures, monitors and reports on fiduciary risk matters deemed significant. Fiduciary risk is mitigated through internal controls and risk management practices that are designed to identify, understand and keep such risk at levels consistent with the organization’s overall risk appetite while also managing the inherent risk in each relationship for which Northern Trust serves in a fiduciary capacity. Each business is responsible for complying with all corporate policies and external regulations and for establishing specific procedures, standards and guidelines to manage fiduciary risk within the desired risk appetite.

Fiduciary Risk Framework and Governance

The FRC is responsible for overseeing activities related to the exercise of fiduciary powers throughout the organization and for establishing and reviewing the fiduciary risk policies and the fiduciary risk framework that supports the coordination of activities to identify, monitor, manage and report on fiduciary risk. In addition, the FRC serves as an escalation point for significant issues raised by its subcommittees or elsewhere in the organization.

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Compliance Risk

Compliance risk is the risk of legal or regulatory sanctions, financial loss, or damage to reputation resulting from failure to comply with laws, regulations, rules, other regulatory requirements, or codes of conduct and other standards of self-regulatory organizations applicable to Northern Trust. Compliance risk includes the following two subcategories:

•Regulatory Risk - risk arising from failure to comply with prudential and conduct of business or other regulatory requirements.

•Financial Crime Risk - risk arising from financial crime (e.g., money laundering, sanctions violations, fraud, insider dealing, theft, etc.) in relation to the products, services, or accounts of the institution, its clients, or others associated with the same.

Compliance Risk Framework and Governance

The compliance risk management framework identifies, assesses, controls, measures, monitors and reports on compliance risk. The framework is designed to minimize compliance risk and maintain an environment in which criminal or regulatory violations do not occur. The framework includes a comprehensive governance structure and a Compliance and Ethics Program approved by the Business Risk Committee.

Each business is responsible for the implementation and effectiveness of the Compliance and Ethics Program and specific compliance policies within their respective businesses. Each business is responsible for its respective employees’ compliance with corporate policies and external regulations and for establishing specific procedures, standards and guidelines to manage compliance risk in accordance with Northern Trust’s Compliance and Ethics Program.

The CEOC establishes and monitors adherence to Northern Trust’s Compliance and Ethics Program. The Chief Compliance and Ethics Officer reports to the Business Risk Committee, as appropriate, and chairs the CEOC.

Liquidity Risk Management

Liquidity Risk Overview

Liquidity risk is the risk of not being able to raise sufficient funds or maintain collateral to meet balance sheet and contingent liability cash flow obligations when due, because of firm-specific or market-wide stress events.

Northern Trust maintains a strong liquidity position and liquidity risk profile. Northern Trust’s balance sheet is primarily liability-driven. That is, the main driver of balance sheet changes comes from changing levels of client deposits, which are generally related to the level of custody assets serviced and commercial and personal deposits and can also be influenced by market conditions. This liability-driven business model differs from a typical asset-driven business model, where increased levels of deposits and wholesale borrowings are required to support, for example, increased levels of lending. Northern Trust’s balance sheet is generally comprised of high-quality assets that are managed to meet anticipated obligations under stress, resulting in low liquidity risk. In recent years, market conditions have driven elevated levels of client deposits, which have been actively managed and monitored.

Liquidity Risk Framework and Governance

Northern Trust maintains a liquidity risk framework consisting of risk management policies and practices to keep its risk profile within the Board-approved Corporate Risk Appetite Statement. All liquidity risk activities are overseen by the Risk Management function, which is independent of the businesses undertaking the activities.

The Liquidity Management Policy and exposure limits for liquidity risk are set by the Board of Directors, and committee structures have been established to implement and monitor adherence to corporate policies, external regulations and established procedures. Limits are monitored based on measures such as the liquidity coverage ratio (LCR), the net stable funding ratio (NSFR), and the liquidity stress-testing buffer across a range of time horizons. Treasury, in the first line of defense, proposes liquidity risk management strategies and is responsible for performing liquidity management activities. The Asset and Liability Management Committee (ALCO) provides first line management oversight and is responsible for approving strategies and activities within the risk appetite, monitoring risk metrics, overseeing balance sheet resources, and reviewing reporting such as cash flows, LCR, NSFR, and stress test results.

The Market and Liquidity Risk Management Committee (MLRC), in the second line of defense, provides challenge to the first line activities, evaluates compliance with regulatory requirements and process effectiveness, and escalates material items for corrective action. The MLRC provides second line oversight and is responsible for reviewing market and liquidity risk exposures, approving and monitoring risk metrics, and approving key methodologies and assumptions that drive liquidity risk measurement.

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Liquidity Risk Analysis, Monitoring, and Reporting

Liquidity risk is analyzed and monitored in order to ensure compliance with the approved risk appetite. Various liquidity analysis and monitoring activities are employed by Northern Trust to understand better the nature and sources of its liquidity risks, including: liquidity stress testing, liquidity metric monitoring, collateral management, intraday management, cash flow projections, operational deposit modeling, liquid asset buffer measurement, funds transfer pricing, and contingency funding planning.

The liquidity risk management process is supported through management and regulatory reporting. Both Northern Trust’s Treasury and Market and Liquidity Risk Management functions produce management reports that enable oversight bodies to make informed decisions and support management of liquidity risk within the approved risk appetite. Holistic liquidity metrics such as LCR, NSFR and internal liquidity stress testing are actively monitored, along with a suite of other metrics that provide early warning indicators of changes in the risk profile.

Regulatory Environment

Northern Trust actively follows regulatory developments and regularly evaluates its liquidity risk management framework against proposed rule-making and industry best practices in order to comply with applicable regulations and further enhance its liquidity policies. Please refer to “Supervision and Regulation—Liquidity Standards” in Item 1, “Business,” for a discussion of applicable liquidity standards.

Liquidity Coverage Ratio (LCR)

The LCR Final Rule requires covered banking organizations, which include the Corporation, to maintain an amount of high-quality liquid assets (HQLAs) equal to or greater than 100% of the banking organization’s total net cash outflows over a 30 calendar-day standardized supervisory liquid stress scenario. The requirements of the LCR Final Rule are intended to promote the short-term resilience of the liquidity risk profile of covered banking organizations, improve the banking industry’s ability to absorb shocks arising from financial and economic stress, and improve the measurement and management of liquidity risk. The Corporation and the Bank each satisfied the U.S. liquidity coverage ratio requirements during 2021.

Net Stable Funding Ratio (NSFR)

The NSFR Final Rule requires covered banking organizations, which include the Corporation, to maintain an amount of available stable funding (ASF) equal to or greater than the banking organization’s projected minimum funding needs, or required stable funding (RSF), over a one-year time horizon. The NSFR is designed to reduce the likelihood that disruptions to a banking organization’s regular sources of funding will compromise its liquidity position, promote effective liquidity risk management, and support the ability of banking organizations to provide financial intermediation to businesses and households across a range of market conditions. The NSFR supports financial stability by requiring banking organizations to fund their activities with stable sources of funding on an ongoing basis, reducing the possibility that funding shocks would substantially increase distress at individual banking organizations. Since the regulatory compliance date of July 1, 2021, both the Corporation and Bank each satisfied the U.S. net stable funding ratio requirements.

Funding

Northern Trust maintains a very liquid balance sheet, with cash and due from banks, deposits with the Federal Reserve and other central banks, short-term money market assets and investment securities in aggregate representing 71% and 73% of total assets as of December 31, 2021 and 2020, respectively. The market value of unencumbered securities at the Bank, which include those placed at the Federal Reserve discount window, totaled $59.0 billion and $56.8 billion at December 31, 2021 and 2020, respectively.

As the Corporation’s principal subsidiary encompassing all of Northern Trust’s banking activities, the Bank centrally manages liquidity for all U.S. and international banking operations. Liquidity is provided by a variety of sources, including client deposits (institutional and personal) from the C&IS and Wealth Management businesses, wholesale funding from the capital markets, maturities of short-term investments, interest earned on investment securities and money market assets, Federal Home Loan Bank advances, and unencumbered liquid assets that can be sold or pledged to secure additional funds. While management does not view central bank discount windows as primary sources of liquidity, at December 31, 2021 and 2020, the Bank had over $55.0 billion and $51.3 billion, respectively of securities and loans readily available as collateral to support discount window borrowings. The Bank also is active in the U.S. interbank funding market, providing an important source of additional liquidity and low-cost funds.

The liquidity of the Corporation is managed separately from that of the Bank. The primary sources of cash for the Corporation are issuances of debt or equity and dividend payments from the Bank. For further information on issuances or redemptions of debt or equity, please refer to Note 13, “Senior Notes and Long-Term Debt” and Note 14, “Floating Rate Capital Debt” provided in Item 8, “Financial Statements and Supplementary Data.” The Corporation received $751.1

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million and $900.0 million of dividends from the Bank in 2021 and 2020, respectively. Dividends from the Bank are subject to certain restrictions, as discussed in further detail in Note 31, “Restrictions on Subsidiary Dividends and Loans or Advances,” provided in Item 8, “Financial Statements and Supplementary Data.”

The Corporation’s liquidity, defined as the amount of cash and highly marketable assets, was $1.7 billion and $2.5 billion at December 31, 2021 and 2020, respectively. During, and at year-end, 2021 and 2020, these assets were comprised almost entirely of cash in a demand deposit account at the Bank or overnight money market placements, both of which were fully available to the Corporation to support its own cash flow requirements or those of its subsidiaries, as needed. Average liquidity during 2021 and 2020 was $1.8 billion and $2.7 billion, respectively. The cash flows of the Corporation are shown in Note 34, “Northern Trust Corporation (Corporation only),” provided in Item 8, “Financial Statements and Supplementary Data.”

Uses of Liquidity

Liquidity supports a variety of activities, including client withdrawals, purchases of securities, net loan growth, and draws on commitments to extend credit.

The Corporation’s uses of cash consist mainly of dividend payments to the Corporation’s stockholders; the payment of principal and interest to note holders; repurchases of its common stock; and investments in, or loans to, its subsidiaries. The most significant uses of cash by the Corporation during 2021 were $583.3 million of common stock dividends, repayments of senior notes and floating rate capital debt of $500.0 million and $278.8 million, respectively and $267.6 million of common stock repurchases.    

Credit Ratings

A significant source of liquidity for both the Corporation and the Bank is the ability to draw funding from capital markets globally. The credit ratings of the Corporation and the Bank as of December 31, 2021, provided in the following table, allow Northern Trust to access capital markets on favorable terms.

TABLE 47: NORTHERN TRUST CREDIT RATINGS AS OF DECEMBER 31, 2021

	CREDIT RATING
	STANDARD & POOR’S	MOODY’S	FITCH RATINGS
Northern Trust Corporation:
Senior Debt	A+	A2	A+
Subordinated Debt	A	A2	A+
Preferred Stock	BBB+	Baa1	BBB
Outlook	Stable	Stable	Stable
The Northern Trust Company:
Short-Term Deposit	A-1+	P-1	F1+
Long-Term Deposit/Debt	AA-	Aa2	AA
Subordinated Debt	A+	A2	A+
Outlook	Stable	Stable	Stable

A significant downgrade in one or more of these ratings could limit Northern Trust’s access to capital markets and/or increase the rates paid for short-term borrowings, including deposits, and future long-term debt issuances. The size of these rate increases would depend on multiple factors, including the extent of the downgrade, Northern Trust’s relative debt rating compared to other financial institutions, current market conditions, and other factors. In addition, as discussed in Note 28, “Offsetting of Assets and Liabilities,” provided in Item 8, “Financial Statements and Supplementary Data,” Northern Trust enters into certain master netting arrangements with derivative counterparties that contain credit-risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. At December 31, 2021, the net maximum amount of these termination payments that Northern Trust could have been required to pay was $27.3 million. Other than these credit-risk-related contingent derivative counterparty payments, Northern Trust had no long-term debt covenants or other credit-risk-related payments at December 31, 2021, that would be triggered by a significant downgrade in its debt ratings.

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Off-Balance Sheet Arrangements

Please refer to Note 26, “Commitments and Contingent Liabilities,” provided in Item 8, “Financial Statements and Supplementary Data” for information on off-balance sheet arrangements and the Credit Risk discussion in the “Risk Management” section for further detail on undrawn commitments.

Market Risk Management

There are two types of market risk, interest rate risk associated with the banking book and trading risk. Interest rate risk associated with the banking book is the potential for movements in interest rates to cause changes in net interest income and the market value of equity. Trading risk is the potential for movements in market variables such as foreign exchange and interest rates to cause changes in the value of trading positions.

Market Risk Framework and Governance

Northern Trust maintains a market risk framework consisting of risk management policies and practices to keep its risk profile within the Board-approved Corporate Risk Appetite Statement. All market risk activities are overseen by the Risk Management function, which is independent of the businesses undertaking the activities.

The Asset and Liability Management Policy, Policy on Dealer Trading Activities, and exposure limits for market risk are set by Board-level committees, and committee structures have been established to implement and monitor adherence to corporate policies, external regulations and established procedures. Limits are monitored based on measures such as sensitivity of net interest income (NII), sensitivity of market value of equity (MVE), and Value-at-Risk (VaR) across a range of time horizons.

Treasury, in the first line of defense, proposes market risk management strategies and is responsible for performing market risk management activities. The ALCO provides first line management oversight and is responsible for approving strategies and activities within the risk appetite, monitoring risk metrics, overseeing balance sheet resources, overseeing the execution of strategies, and reviewing reporting such as stress test results.

Market and Liquidity Risk Management, in the second line of defense, provides challenge to the first line activities, evaluates compliance with regulatory requirements and process effectiveness, and escalates material items for corrective action. The MLRC provides second line oversight and is responsible for reviewing market risk exposures, establishing and monitoring risk metrics, and approving key methodologies and assumptions that drive market risk measurement.

Interest Rate Risk Overview

Interest rate risk in the banking book is the potential for deterioration in Northern Trust's financial position (e.g. interest income, market value of equity, or capital) due to changes in interest rates. NII and MVE sensitivity are the primary metrics used for measurement and management of interest rate risk. Changes in interest rates can have a positive or negative impact on NII depending on the positioning of assets, liabilities and off-balance sheet instruments. Changes in interest rates also can impact the values of assets, liabilities and off-balance sheet positions, which directly impact the MVE. To mitigate interest rate risk, the balance sheet is managed so that movements of interest rates on assets and liabilities (adjusted for hedges) are sufficiently correlated, which allows Northern Trust to manage its interest rate risk within its risk appetite.

There are four commonly recognized types of structural interest rate risk in the banking book:

•repricing risk, which arises from differences in the maturity and repricing terms of assets and liabilities;

•yield curve risk, which arises from changes in the shape of the yield curve;

•basis risk, which arises from imperfect correlation in the adjustment of the rates earned and paid on different financial instruments with otherwise similar repricing characteristics; and

•embedded optionality risk, which arises from client or counterparty behavior in response to interest rate changes.

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Interest Rate Risk Analysis, Monitoring, and Reporting

Northern Trust uses two primary measurement techniques to manage interest rate risk: NII and MVE sensitivity. NII sensitivity provides management with a short-term view of the impact of interest rate changes on NII. MVE sensitivity provides management with a long-term view of interest rate changes on MVE based on the period-end balance sheet.

Northern Trust limits aggregate interest rate risk (as measured by the NII sensitivity and MVE sensitivity simulation techniques) to an acceptable level within the context of risk appetite. A variety of actions may be used to implement risk management strategies to modify interest rate risk including:

•purchase of investment securities;

•sale of investment securities that are classified as available for sale;

•issuance of senior notes and subordinated notes;

•collateralized borrowings from the Federal Home Loan Bank; and

•hedging with various types of derivative financial instruments.

NII Sensitivity

The modeling of NII sensitivity incorporates on-balance sheet positions, as well as derivative financial instruments (principally interest rate swaps) that are used to manage interest rate risk. Northern Trust uses market implied forward interest rates as the base case and measures the sensitivity (i.e., change) of a static balance sheet to changes in interest rates. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk).

The NII sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate NII sensitivity given uncertainty in the assumptions. The following key assumptions are incorporated into the NII simulation:

•the balance sheet size and mix remains constant over the simulation horizon with maturing assets and liabilities replaced with instruments with similar terms as those that are maturing, with the exception of certain nonmaturity deposits that are considered short-term in nature and therefore receive a more conservative interest-bearing treatment;

•prepayments on mortgage loans and securities collateralized by mortgages are projected under each rate scenario using a third-party mortgage analytics system that incorporates market prepayment assumptions;

•cash flows for structured securities are estimated using a third-party vendor in conjunction with the prepayments provided by the third-party mortgage analytics vendor;

•nonmaturity deposit pricing is projected based on Northern Trust’s actual historical patterns and management judgment, depending upon the availability of historical data and current pricing strategies/or judgment; and

•new business rates are based on current spreads to market indices.

The following table shows the estimated NII impact over the next twelve months of 100 and 200 basis point ramps upward and 100 basis point ramp downward movements in interest rates relative to forward rates. Each rate movement is assumed to occur gradually over a one-year period.

TABLE 48: NET INTEREST INCOME SENSITIVITY AS OF DECEMBER 31, 2021

($ In Millions)	INCREASE/(DECREASE)   ESTIMATED IMPACT ON NEXT TWELVE MONTHS OF NET INTEREST INCOME
INCREASE IN INTEREST RATES ABOVE MARKET IMPLIED FORWARD RATES
100 Basis Points	$	302
200 Basis Points	514
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES
100 Basis Points	$	(229)

The NII sensitivity analysis does not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movement. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. NII sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided.

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MVE Sensitivity

MVE is defined as the present value of assets minus the present value of liabilities, net of the value of financial derivatives that are used to manage the interest rate risk of balance sheet items. The potential effect of interest rate changes on MVE is derived from the impact of such changes on projected future cash flows and the present value of these cash flows and is then compared to the established limit. Northern Trust uses current market rates (and the future rates implied by these market rates) as the base case and measures MVE sensitivity under various rate scenarios. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk).

The MVE sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate MVE sensitivity given uncertainty in the assumptions. Many of the assumptions that apply to NII sensitivity also apply to MVE sensitivity simulations, with the following separate key assumptions incorporated into the MVE simulation:

•the present value of nonmaturity deposits are estimated using dynamic decay methodologies or estimated remaining lives, which are based on a combination of Northern Trust’s actual historical runoff patterns and management judgment—some balances are assumed to be core and have longer lives while other balances are assumed to be temporary and have comparatively shorter lives;

•the present values of most noninterest-related balances (such as receivables, equipment, and payables) are the same as their book values; and

•Monte Carlo simulation is used to generate forward interest rate paths.

The following table shows the estimated impact on MVE of 100 and 200 basis point shocks up and a 100 basis point shock down from current market implied forward rates.

TABLE 49: MARKET VALUE OF EQUITY SENSITIVITY AS OF DECEMBER 31, 2021

($ In Millions)	INCREASE/(DECREASE) ESTIMATED IMPACT ON MARKET VALUE OF EQUITY
INCREASE IN INTEREST RATES ABOVE MARKET IMPLIED FORWARD RATES
100 Basis Points	$	241
200 Basis Points	(60)
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES
100 Basis Points	$	(384)

The MVE simulations do not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movements. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. MVE sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided.

Foreign Currency Risk Overview

Northern Trust’s balance sheet is exposed to nontrading foreign currency risk as a result of its holdings of non-U.S. dollar denominated assets and liabilities, investment in non-U.S. subsidiaries, and future non-U.S. dollar denominated revenue and expense. To manage currency exposures on the balance sheet, Northern Trust attempts to match its assets and liabilities by currency. If those currency offsets do not exist on the balance sheet, Northern Trust will use foreign exchange derivative contracts to mitigate its currency exposure. Foreign exchange contracts are also used to reduce Northern Trust’s currency exposure to future non-U.S. dollar denominated revenue and expense.

In addition, Northern Trust provides global foreign exchange (GFX) services to clients. Most of these services are provided in connection with Northern Trust’s global custody business. In the normal course of business, Northern Trust also engages in trading of non-U.S. currencies for its own account. Both activities are considered trading activities.

Foreign currency trading positions exist when aggregate obligations to purchase and sell a currency other than the U.S. dollar do not offset each other in amount, or offset each other over different time periods. The GFX trading portfolio at Northern Trust is composed of spot, forward, and non-deliverable foreign currency transactions. For GFX, spot risk is driven primarily by foreign exchange rate (FX) risk, and forward risk is driven primarily by interest rate (IR) risk.

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Foreign Currency Risk Measurement

Northern Trust measures daily the risk of loss associated with all non-U.S. currency positions using a VaR model and applying the historical simulation methodology. This statistical model provides estimates, based on high confidence levels, of the potential loss in value that might be incurred if an adverse shift in non-U.S. currency exchange rates and interest rates were to occur over a small number of days. The model incorporates foreign currency and interest rate volatilities and correlations in price movements among the currencies. VaR is computed for each trading desk and for the global portfolio.

VaR measures are computed in a vendor software application which reads foreign exchange positions from Northern Trust’s trading systems each day. Data vendors provide foreign exchange rates and interest rates for all currencies. The Risk Management function monitors on a daily basis VaR model inputs and outputs for reasonableness.

Foreign Currency Risk Monitoring, Reporting and Analysis

Northern Trust monitors several variations of the GFX VaR measures to meet specific regulatory and internal management needs. Variations include different methodologies (historical simulation, Monte Carlo simulation and Taylor approximation), horizons of one day and ten days, confidence levels of 95% and 99%, subcomponent VaRs using only FX drivers and only IR drivers, and look-back periods of one year, two years, and four years. Those alternative measures provide management an array of corroborating metrics and alternative perspectives on Northern Trust’s market risks.

Automated daily reports are produced and distributed to business managers and risk managers. The Risk Management function also reviews and reports several variations of the VaR measures in historical time series format to provide management with a historical perspective on risk.

The following table presents the levels of total regulatory VaR and its subcomponents for GFX in the years indicated below, based on the historical simulation methodology, a 99% confidence level, a one-day horizon and equally-weighted volatility. The total VaR for GFX is typically less than the sum of its two subcomponents due to diversification benefits derived from the two subcomponents.

TABLE 50: GLOBAL FOREIGN CURRENCY VALUE-AT-RISK

($ In Millions)	TOTAL VaR (FX AND IR DRIVERS)				FX VaR (FX DRIVERS ONLY)				IR VaR (IR DRIVERS ONLY)
FOR THE YEAR ENDED DECEMBER 31,	2021		2020		2021		2020		2021		2020
High	$	0.9	$	1.8	$	0.4	$	1.9	$	0.7	$	1.0
Low	—		—		—		—		—		—
Average	0.2		0.3		0.1		0.1		0.2		0.2
As of December 31,	0.1		0.3		0.1		0.3		0.1		0.2

During 2021 and 2020, Northern Trust did not incur an actual GFX trading loss in excess of the daily GFX VaR estimate.

Other Nonmaterial Trading Activities

Market risk associated with other trading activities is negligible. Northern Trust’s broker-dealer subsidiary, Northern Trust Securities, Inc., maintains a small portfolio of trading securities held for customer accommodation purposes, which averaged $0.6 million and $1.1 million for the year ended December 31, 2021 and 2020, respectively.

Northern Trust is also party to interest rate derivative contracts consisting mostly of interest rate swaps and swaptions entered into to meet clients’ interest rate risk management needs, but also including a small number of caps and floors. All interest rate derivative transactions are executed by Northern Trust's Treasury department. When Northern Trust enters into client transactions, its practice is to mitigate the resulting market risk with offsetting interbank derivative transactions with matching terms and maturities.

Strategic Risk

Strategic risk is the vulnerability of the organization to internal or external developments that render corporate strategy ineffective or unachievable. The consequences of strategic risk can be diminished long-term earnings and capital, as well as reputational damage to the firm. Strategic risk encompasses two main areas:

•Macroeconomic and geopolitical risk centers on external events or developments that would have a detrimental impact on financial markets and/or financial services firms.

•Business risk arises from internal, secular, competitive, or regulatory trends that impact Northern Trust’s stated strategy or its achievability.

82 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Strategic Risk Framework and Governance

The Corporate Strategic Risk Framework has been developed in conjunction with the Corporation’s risk appetite and risk management policies, and defines the mission and expectations of the Strategic Risk Management function to identify and analyze the sources and consequences of strategic risk.

This is achieved through participation in the establishment and review of business line strategy, coordination of risk input to the evaluation of key strategic opportunities, and developing and maintaining a risk inventory and set of metrics which attempt to gauge the level of strategic risk within the organization.

In addition, the Strategic Risk Management function maintains the Global Event Response Program, which aims to anticipate and prepare for stress scenarios, and provide an outline for responding to them when they occur.

Both GERC and the Business Risk Committee are responsible for reviewing the general methods, guidelines and frameworks by which Northern Trust monitors and evaluates strategic risk.

Climate Risk

Climate risk has become a growing strategic risk for the Corporation. Various regulatory agencies, investors, and other stakeholders have increased expectations and scrutiny in this area. Accordingly, the Risk Management function has been taking increasing account of the impact that climate change has, or may in the future have, on operations, credit conditions, and regulatory compliance across the globe. The Corporation has also established a cross-disciplinary group to monitor and react to developments related to climate risk, with the goal of ensuring that the organization takes it into proper account.

FORWARD-LOOKING STATEMENTS

This report may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook; capital adequacy; dividend policy and share repurchase program; accounting estimates and assumptions; credit quality including allowance levels; future pension plan contributions; effective tax rate; anticipated expense levels; contingent liabilities; acquisitions; strategies; market and industry trends; and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including:

•the impact of the ongoing COVID-19 pandemic—and governmental and societal responses thereto—on Northern Trust’s business, financial condition, and results of operations;

•financial market disruptions or economic recession in the United States or other countries across the globe resulting from any of a number of factors;

•volatility or changes in financial markets, including debt and equity markets, that impact the value, liquidity, or credit ratings of financial assets in general, or financial assets held in particular investment funds or client portfolios, including those funds, portfolios, and other financial assets with respect to which Northern Trust has taken, or may in the future take, actions to provide asset value stability or additional liquidity;

•the impact of equity markets on fee revenue;

•the downgrade of U.S. government-issued and other securities;

•changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, changes in the valuation of the U.S. dollar relative to other currencies in which Northern Trust records revenue or accrues expenses, and Northern Trust’s success in assessing and mitigating the risks arising from all such changes and volatility;

•a decline in the value of securities held in Northern Trust’s investment portfolio, particularly asset-backed securities, the liquidity and pricing of which may be negatively impacted by periods of economic turmoil and financial market disruptions;

•Northern Trust’s ability to address operating risks, including those related to cybersecurity, data security, human errors or omissions, pricing or valuation of securities, fraud, operational resiliency (including systems performance), failure to maintain sustainable business practices, and breakdowns in processes or internal controls;

•Northern Trust's success in responding to and investing in changes and advancements in technology;

•a significant downgrade of any of Northern Trust’s debt ratings;

•the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business;

•uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor;

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

•the effectiveness of Northern Trust’s management of its human capital, including its success in recruiting and retaining necessary and diverse personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services;

•Northern Trust’s success in controlling the costs and expenses of its business operations and the impacts of any broader inflationary environment thereon;

•the transition away from LIBOR or changes in the calculation of alternative interest rate benchmarks;

•the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;

•changes in interest rates or in the monetary or other policies of various regulatory authorities or central banks;

•changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including Northern Trust;

•increased costs of compliance and other risks associated with changes in regulation, the current regulatory environment, and areas of increased regulatory emphasis and oversight in the United States and other countries, such as anti-money laundering, anti-bribery, and data privacy;

•failure to satisfy regulatory standards or to obtain regulatory approvals when required, including for the use and distribution of capital;

•changes in tax laws, accounting requirements or interpretations and other legislation in the United States or other countries that could affect Northern Trust or its clients;

•geopolitical risks, risks related to global climate change and the risks of extraordinary events such as pandemics, natural disasters, terrorist events and war (including current events involving Ukraine and Russia), and the responses of the United States and other countries to those events;

•the departure of the United Kingdom from the European Union, commonly referred to as “Brexit;”

•changes in the nature and activities of Northern Trust’s competition;

•Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;

•Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;

•Northern Trust’s ability to maintain a product mix that achieves acceptable margins;

•Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;

•uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;

•Northern Trust’s success in continuing to enhance its risk management practices and controls and managing risks inherent in its businesses, including credit risk, operational risk, market and liquidity risk, fiduciary risk, compliance risk and strategic risk;

•risks and uncertainties inherent in the litigation and regulatory process, including the possibility that losses may be in excess of Northern Trust’s recorded liability and estimated range of possible loss for litigation exposures;

•risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary;

•the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders; and

•other factors identified elsewhere in this Annual Report on Form 10-K, including those factors described in Item 1A, “Risk Factors,” and other filings with the SEC, all of which are available on Northern Trust’s website.

Actual results may differ materially from those expressed or implied by forward-looking statements. The information contained herein is current only as of the date of that information. All forward-looking statements included in this document are based upon information presently available, and Northern Trust assumes no obligation to update its forward-looking statements.

84 2021 Annual Report | Northern Trust Corporation

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SUPPLEMENTAL INFORMATION

Reconciliation to Fully Taxable Equivalent

The following table presents a reconciliation of interest income, net interest income, net interest margin, and total revenue prepared in accordance with GAAP to such measures on an FTE basis, which are non-GAAP financial measures. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. Management believes this presentation 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.

TABLE 51: RECONCILIATION TO FULLY TAXABLE EQUIVALENT

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Net Interest Income
Interest Income - GAAP	$	1,406.5		$	1,643.5		$	2,499.9
Add: FTE Adjustment	35.6			34.4			32.8
Interest Income (FTE) - Non-GAAP	$	1,442.1		$	1,677.9		$	2,532.7
Net Interest Income - GAAP	$	1,382.7		$	1,443.2		$	1,677.9
Add: FTE Adjustment	35.6			34.4			32.8
Net Interest Income (FTE) - Non-GAAP	$	1,418.3		$	1,477.6		$	1,710.7
Net Interest Margin - GAAP	0.96		%	1.16		%	1.57		%
Net Interest Margin (FTE) - Non-GAAP	0.99		%	1.19		%	1.60		%
Total Revenue
Total Revenue - GAAP	$	6,464.5		$	6,100.8		$	6,073.1
Add: FTE Adjustment	35.6			34.4			32.8
Total Revenue (FTE) - Non-GAAP	$	6,500.1		$	6,135.2		$	6,105.9

2021 Annual Report | Northern Trust Corporation 85

ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for by this item is incorporated herein by reference to the “Risk Management” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Northern Trust Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Northern Trust Corporation and subsidiaries (the Corporation) as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Corporation’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 28, 2022 expressed an unqualified opinion on the effectiveness of the Corporation’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Corporation has changed its method of accounting for the recognition and measurement of credit losses as of January 1, 2020 due to the adoption of ASC Topic 326, Financial Instruments – Credit Losses.

Basis for Opinion

These consolidated financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

86 2021 Annual Report | Northern Trust Corporation

Assessment of the allowance for credit losses for commercial loans and leases evaluated on a collective basis

As discussed in Notes 1 and 7 to the consolidated financial statements, the Corporation’s allowance for credit losses for commercial loans and leases evaluated on a collective basis (the collective ACL) was $95.5 million of a total allowance for credit losses assigned to loans and leases of $138.4 million as of December 31, 2021. Expected credit losses are measured on a collective basis as long as the financial assets included in the respective pool share similar risk characteristics. The allowance estimation methodology for the collective assessment is based on data representative of the Corporation’s financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into segments based on loan and obligor specific factors, including loan type, borrower type, collateral type, loan size, and borrower credit quality. The estimation methodology applies probability of default and loss given default assumptions to the projected exposure at default on a pool basis. For each segment, the probability of default (PD) and loss given default (LGD) are derived for each quarter of the remaining life of each instrument. For the first two years (the reasonable and supportable period), these factors are derived by applying quarterly macroeconomic projections using models developed from historical data on macroeconomic factors and loans with similar factors, including the borrower rating assigned to individual obligors, as applicable. For periods beyond the reasonable and supportable period, the Corporation reverts to its own long-run historical loss experience on a straight-line basis over four quarters. The projected exposure at default for every quarter is based on contractual balance projections as of each quarter-end. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. The Corporation employs multiple scenarios over a reasonable and supportable period to project future conditions. The Corporation determines the probability weights assigned to each scenario at each quarter-end. The quantitative allowance is then reviewed within the qualitative adjustment framework, through which the Corporation applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute adjustments to the quantitative allowance that may impact individual or multiple segments of the loan portfolio.

We identified the assessment of the quantitative component of the collective ACL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the quantitative component of the collective ACL due to significant measurement uncertainty. Specifically, the assessment encompassed the evaluation of the quantitative component of the collective ACL methodology, including the methods and models used to estimate the PD and LGD and their significant assumptions, the multiple economic forecast scenarios and macroeconomic factors and their respective weightings, and borrower ratings for certain commercial loans and leases. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and operating effectiveness of certain internal controls related to the critical audit matter. This included controls related to the Corporation’s measurement of the quantitative component of the collective ACL estimate, including controls over:

•development of the quantitative component of the collective ACL methodology

•performance monitoring of the PD and LGD models

•development and approval of the multiple economic forecast scenarios, macroeconomic factors and their respective weightings

•identification and determination of the significant assumptions used in the PD and LGD models

•analysis of the allowance for credit losses for loans and leases results.

We evaluated the Corporation’s process to develop the quantitative component of the collective ACL estimate by testing certain sources of data, factors, and assumptions that the Corporation used, and considered the relevance and reliability of such data, factors and assumptions. In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:

•evaluating the quantitative component of the Corporation’s collective ACL methodology for compliance with U.S. generally accepted accounting principles

•evaluating judgments made by the Corporation relative to the assessment and performance monitoring of the PD and LGD models

•assessing the conceptual soundness and performance testing of the PD and LGD models by inspecting model documentation to determine whether the models were suitable for their intended use

2021 Annual Report | Northern Trust Corporation 87

•assessing the economic forecast scenarios, the economic input variables and their respective weightings through comparison to publicly available forecasts and the Corporation’s business environment

•testing individual borrower ratings for a selection of commercial loan and lease relationships by evaluating the financial performance of the borrower, sources of repayment, and any relevant guarantees or underlying collateral.

We also assessed the sufficiency of the audit evidence obtained related to the quantitative component of the collective ACL by evaluating the:

•cumulative results of the procedures

•qualitative aspects of the Corporation’s accounting practices

•potential bias in the accounting estimate

We have served as the Corporation’s auditor since 2002.

Chicago, Illinois

February 28, 2022

88 2021 Annual Report | Northern Trust Corporation

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

	DECEMBER 31,
(In Millions Except Share Information)	2021		2020
ASSETS
Cash and Due from Banks	$	3,056.8	$	4,389.5
Federal Reserve and Other Central Bank Deposits	64,582.2		55,503.6
Interest-Bearing Deposits with Banks	1,949.4		4,372.6
Securities Purchased under Agreements to Resell	686.4		1,596.5
Debt Securities
Available for Sale (Amortized cost of $37,948.5 and $41,155.7)	38,010.5		42,022.0
Held to Maturity (Fair value of $23,315.4 and $17,797.4)	23,564.5		17,791.1
Trading Account	0.3		0.5
Total Debt Securities	61,575.3		59,813.6
Loans and Leases
Commercial	18,487.4		15,262.0
Personal	21,993.2		18,497.7
Total Loans and Leases (Net of unearned income of $10.4 and $9.8)	40,480.6		33,759.7
Allowance for Credit Losses	(150.6)		(198.8)
Buildings and Equipment	488.7		514.9
Client Security Settlement Receivables	1,941.2		1,160.2
Goodwill	706.2		707.2
Other Assets	8,573.6		8,384.9
Total Assets	$	183,889.8	$	170,003.9
LIABILITIES
Deposits
Demand and Other Noninterest-Bearing	$	22,028.2	$	17,728.5
Savings, Money Market and Other Interest-Bearing	35,003.1		28,631.8
Savings Certificates and Other Time	842.7		937.1
Non U.S. Offices — Noninterest-Bearing	26,287.3		25,382.2
— Interest-Bearing	75,767.1		71,198.4
Total Deposits	159,928.4		143,878.0
Federal Funds Purchased	0.2		260.2
Securities Sold Under Agreements to Repurchase	531.9		39.8
Other Borrowings	3,583.8		4,011.5
Senior Notes	2,505.5		3,122.4
Long-Term Debt	1,145.7		1,189.3
Floating Rate Capital Debt	—		277.8
Other Liabilities	4,177.5		5,536.6
Total Liabilities	171,873.0		158,315.6
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; Authorized 10,000,000 shares:
Series D, outstanding shares of 5,000	493.5		493.5
Series E, outstanding shares of 16,000	391.4		391.4
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares; Outstanding shares of 207,761,875 and 208,289,178	408.6		408.6
Additional Paid-In Capital	939.3		963.6
Retained Earnings	13,117.3		12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)		428.0
Treasury Stock (37,409,649 and 36,882,346 shares, at cost)	(3,297.7)		(3,204.5)
Total Stockholders’ Equity	12,016.8		11,688.3
Total Liabilities and Stockholders’ Equity	$	183,889.8	$	170,003.9

See accompanying notes to consolidated financial statements on pages 93-166.

2021 Annual Report | Northern Trust Corporation 89

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions Except Share Information)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Foreign Exchange Trading Income	292.6		290.4		250.9
Treasury Management Fees	44.3		45.4		44.5
Security Commissions and Trading Income	140.2		133.2		103.6
Other Operating Income	243.9		194.0		145.5
Investment Security Losses, net	(0.3)		(0.4)		(1.4)
Total Noninterest Income	5,081.8		4,657.6		4,395.2
Net Interest Income
Interest Income	1,406.5		1,643.5		2,499.9
Interest Expense	23.8		200.3		822.0
Net Interest Income	1,382.7		1,443.2		1,677.9
Provision for Credit Losses	(81.5)		125.0		(14.5)
Net Interest Income after Provision for Credit Losses	1,464.2		1,318.2		1,692.4
Noninterest Expense
Compensation	2,011.0		1,947.1		1,859.0
Employee Benefits	431.4		387.7		355.2
Outside Services	849.4		763.1		774.5
Equipment and Software	736.3		673.5		612.1
Occupancy	208.7		230.1		212.9
Other Operating Expense	299.1		346.7		329.8
Total Noninterest Expense	4,535.9		4,348.2		4,143.5
Income before Income Taxes	2,010.1		1,627.6		1,944.1
Provision for Income Taxes	464.8		418.3		451.9
NET INCOME	$	1,545.3	$	1,209.3	$	1,492.2
Preferred Stock Dividends	41.8		56.2		46.4
Net Income Applicable to Common Stock	$	1,503.5	$	1,153.1	$	1,445.8
PER COMMON SHARE
Net Income – Basic	$	7.16	$	5.48	$	6.66
– Diluted	7.14		5.46		6.63
Average Number of Common Shares Outstanding – Basic	208,075,522		208,319,412		214,525,547
– Diluted	208,899,230		209,007,986		215,601,149

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
Net Unrealized Gains (Losses) on Available for Sale Debt Securities	(534.7)		527.8		228.9
Net Unrealized Gains (Losses) on Cash Flow Hedges	0.8		0.5		(7.7)
Net Foreign Currency Adjustments	10.5		26.9		49.9
Net Pension and Other Postretirement Benefit Adjustments	59.8		67.5		(12.1)
Other Comprehensive Income (Loss)	(463.6)		622.7		259.0
Comprehensive Income	$	1,081.7	$	1,832.0	$	1,751.2

See accompanying notes to consolidated financial statements on pages 93-166.

90 2021 Annual Report | Northern Trust Corporation

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In Millions Except Per Share Information)	PREFERRED STOCK		COMMON STOCK		ADDITIONAL PAID-IN CAPITAL		RETAINED EARNINGS		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		TREASURY STOCK		TOTAL
Balance at January 1, 2019	$	882.0	$	408.6	$	1,068.5	$	10,776.8	$	(453.7)	$	(2,173.9)	$	10,508.3
Net Income	—		—		—		1,492.2		—		—		1,492.2
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	—		—		—		—		259.0		—		259.0
Dividends Declared:
Common Stock, $2.60 per share	—		—		—		(565.9)		—		—		(565.9)
Preferred Stock	—		—		—		(46.4)		—		—		(46.4)
Issuance of Preferred Stock, Series E	391.4		—		—		—		—		—		391.4
Stock Awards and Options Exercised	—		—		(55.4)		—		—		208.0		152.6
Stock Purchased	—		—		—		—		—		(1,100.2)		(1,100.2)
Balance at December 31, 2019	$	1,273.4	$	408.6	$	1,013.1	$	11,656.7	$	(194.7)	$	(3,066.1)	$	11,091.0
Cumulative Effect Adjustment related to the adoption of Accounting Standards Update 2016-13	—		—		—		(10.1)		—		—		(10.1)
Balance at January 1, 2020	1,273.4		408.6		1,013.1		11,646.6		(194.7)		(3,066.1)		11,080.9
Net Income	—		—		—		1,209.3		—		—		1,209.3
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	—		—		—		—		622.7		—		622.7
Dividends Declared:
Common Stock, $2.80 per share	—		—		—		(592.0)		—		—		(592.0)
Preferred Stock	—		—		—		(44.7)		—		—		(44.7)
Redemption of Preferred Stock, Series C	(388.5)		—		—		(11.5)		—		—		(400.0)
Stock Awards and Options Exercised	—		—		(49.5)		—		—		161.4		111.9
Stock Purchased	—		—		—		—		—		(299.8)		(299.8)
Balance at December 31, 2020	$	884.9	$	408.6	$	963.6	$	12,207.7	$	428.0	$	(3,204.5)	$	11,688.3
Net Income	—		—		—		1,545.3		—		—		1,545.3
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	—		—		—		—		(463.6)		—		(463.6)
Dividends Declared:
Common Stock, $2.80 per share	—		—		—		(593.9)		—		—		(593.9)
Preferred Stock	—		—		—		(41.8)		—		—		(41.8)
Stock Awards and Options Exercised	—		—		(24.3)		—		—		174.4		150.1
Stock Purchased	—		—		—		—		—		(267.6)		(267.6)
Balance at December 31, 2021	$	884.9	$	408.6	$	939.3	$	13,117.3	$	(35.6)	$	(3,297.7)	$	12,016.8

See accompanying notes to consolidated financial statements on pages 93-166.    

2021 Annual Report | Northern Trust Corporation 91

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Investment Security (Losses) Gains, net	0.3		0.4		1.4
Amortization and Accretion of Securities and Unearned Income, net	99.7		88.9		64.6
Provision for Credit Losses	(81.5)		125.0		(14.5)
Depreciation and Amortization	515.6		500.3		458.9
Change in Accrued Income Taxes	37.2		25.4		(70.7)
Pension Plan Contributions	(11.2)		(15.6)		(6.1)
Deferred Income Tax Provision	2.0		16.4		34.3
Change in Receivables	(460.9)		4.5		(50.3)
Change in Interest Payable	(7.8)		(23.6)		(23.6)
Change in Collateral With Derivative Counterparties, net	(466.5)		(17.8)		1,154.0
Other Operating Activities, net	183.8		(16.4)		(448.2)
Net Cash Provided by Operating Activities	1,356.0		1,896.8		2,592.0
CASH FLOWS FROM INVESTING ACTIVITIES
Change in Federal Funds Sold	—		5.0		129.0
Change in Securities Purchased under Agreements to Resell	897.7		(700.9)		357.3
Change in Interest-Bearing Deposits with Banks	2,344.5		712.6		(614.6)
Net Change in Federal Reserve and Other Central Bank Deposits	(9,970.4)		(19,845.2)		(3,683.2)
Purchases of Held to Maturity Debt Securities	(54,734.9)		(40,187.9)		(14,154.3)
Proceeds from Maturity and Redemption of Held to Maturity Debt Securities	54,902.6		35,658.6		16,290.9
Purchases of Available for Sale Debt Securities	(13,896.2)		(10,886.8)		(12,811.0)
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities	10,079.0		8,748.2		11,057.2
Change in Loans and Leases	(6,744.7)		(2,316.7)		1,087.9
Purchases of Buildings and Equipment	(95.5)		(135.8)		(158.0)
Purchases and Development of Computer Software	(419.6)		(424.6)		(441.8)
Change in Client Security Settlement Receivables	(801.4)		(226.8)		821.0
Acquisition of a Business, Net of Cash Received	—		—		(10.5)
Bank-Owned Life Insurance Policy Premiums	—		—		(1,500.0)
Other Investing Activities, net	(163.7)		(322.7)		225.1
Net Cash Used in Investing Activities	(18,602.6)		(29,923.0)		(3,405.0)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in Deposits	17,885.5		32,137.9		4,263.6
Change in Federal Funds Purchased	(260.0)		(292.7)		(2,041.3)
Change in Securities Sold under Agreements to Repurchase	492.1		(450.0)		320.9
Change in Short-Term Other Borrowings	(426.5)		(2,698.3)		(1,184.5)
Redemption of Preferred Stock - Series C	—		(400.0)		—
Proceeds from Senior Notes	—		993.2		498.0
Repayments of Senior Notes	(500.0)		(508.6)		—
Repayment of Floating Rate Capital Debt	(278.8)		—		—
Proceeds from Issuance of Preferred Stock - Series E	—		—		392.5
Treasury Stock Purchased	(267.6)		(299.8)		(1,100.2)
Net Proceeds from Stock Options	53.8		19.5		44.0
Cash Dividends Paid on Common Stock	(583.3)		(584.6)		(529.7)
Cash Dividends Paid on Preferred Stock	(41.8)		(45.9)		(46.4)
Other Financing Activities, net	0.1		1.2		(1.0)
Net Cash Provided by Financing Activities	16,073.5		27,871.9		615.9
Effect of Foreign Currency Exchange Rates on Cash	(159.6)		84.6		74.7
Change in Cash and Due from Banks	(1,332.7)		(69.7)		(122.4)
Cash and Due from Banks at Beginning of Period	4,389.5		4,459.2		4,581.6
Cash and Due from Banks at End of Period	$	3,056.8	$	4,389.5	$	4,459.2
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest Paid	$	30.8	$	226.8	$	845.5
Income Taxes Paid	371.0		327.7		437.0
Transfers from Loans to OREO	12.9		0.2		3.5
Transfers from Available for Sale Debt Securities to Held to Maturity Debt Securities	6,864.1		301.5		160.8
Transfers to Leases Held For Sale from Leases	—		—		53.6

See accompanying notes to consolidated financial statements on pages 93-166.

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Note 1 – Summary of Significant Accounting Policies

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. A description of the more significant accounting policies follows.

A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation.

B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank.

Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business.

C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.

Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.

D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange.

Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity.

E. Securities. Available for Sale (AFS) Securities are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on AFS securities are determined on a specific identification basis and are reported within Investment Security Losses, net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount.

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Held to Maturity (HTM) Securities consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount.

Held for Trading Securities are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income.

Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 29, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits.

F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

G. Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net.

Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges.

Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter.

Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities, foreign currency denominated investment securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of available for sale investment securities, to the extent all

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terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method.

Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary.

Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item.

H. Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, net, non-U.S. and other. The classes within the personal segment have been defined as residential real estate, private client and other.

Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value. Undrawn commitments relating to loans that are not held for sale are recorded in Other Liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated expected losses.

Nonaccrual Loans and Recognition of Income. Interest income on loans and leases is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms.

Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). All TDRs are reported starting in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported if the loan was modified at a market rate and has performed according to the modified terms for at least six payment periods. A loan that has been modified at a below market rate will return to accrual status if it satisfies the six-payment-period performance requirement.

The expected credit loss is measured based upon the present value of expected future cash flows, discounted at the effective interest rate based on the original contractual rate. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is calculated based on the factor as it changes over the life of the loan. Northern Trust elected not to project changes in the factor for purposes of estimating expected future cash flows. Further, Northern Trust elected not to adjust the effective interest rate for prepayments. If the loan is collateral dependent, the expected loss is measured based on the fair value of the collateral at the reporting date.

If the loan valuation is less than the recorded value of the loan, either an allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $1 million) homogeneous loans are collectively evaluated. Northern Trust’s accounting policies for material nonaccrual loans is consistent across all classes of loans and leases.

All loans and leases with TDR modifications are evaluated for additional expected credit losses. The nature and extent of further deterioration in credit quality, including a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses.

Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral.

Premium, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield.

I. Allowance for Credit Losses.

2021 and 2020 Allowance for Credit Losses after the Adoption of Accounting Standards Update No. 2016-13

As of December 31, 2021 and 2020, the allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships.

Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts.

Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period (currently two years) to project future conditions. Management determines the probability weights assigned to each scenario at each quarter-end. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, unemployment, and real estate price indices, as well as financial market factors such as equity prices, volatility, and credit spreads. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters.

Allowance for Loans and Leases. The allowance estimation methodology for the collective assessment is primarily based on internally developed loss data specific to the Northern Trust financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments based on similar risk characteristics or risk monitoring methods.

Northern Trust utilizes a quantitative probability of default/loss given default approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the

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exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment of the loan portfolio.

The allowance related to credit exposure evaluated on an individual basis is determined through an individual evaluation of loans, leases, and lending-related commitments that have defaulted, generally those with Borrower Ratings of 8 and 9, that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework.

As of December 31, 2021 and 2020, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses.

Allowance for HTM Securities. HTM debt securities classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero.

HTM debt securities classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support.

HTM debt securities classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance.

The allowance estimation methodology for all other HTM debt securities is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative component of the allowance.

Allowance for AFS Securities. AFS securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security.

Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for those other financial assets presented in Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for other financial assets primarily utilizes a similar approach as used for the HTM debt securities portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss.

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The portion of the allowance assigned to loans and leases, HTM debt securities, and other financial assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS securities on the consolidated balance sheets.

The Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates and the amount of the Provision for Credit Losses may be either greater than or less than actual net charge-offs.

Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are typically not considered since it is not Northern Trust’s practice to enter into arrangements where the borrower has the unconditional option to renew, or a conditional extension option whereby the conditions are beyond Northern Trust’s control.

Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the quarter the financial asset is moved from an accrual to a nonaccrual status.

2019 Allowance for Credit Losses prior to the Adoption of Accounting Standards Update No. 2016-13

Allowance for Loans and Leases under the Previous “Incurred Loss” Model. As of December 31, 2019, the Allowance for Credit Losses represented management’s estimate of probable losses which occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures were regularly reviewed to evaluate the level of the Allowance for Credit Losses. In determining an appropriate allowance level, Northern Trust evaluated the allowance necessary for impaired loans and lending-related commitments and also estimated losses inherent in other lending-related credit exposures. The allowance for credit losses consisted of the following components:

Specific Allowance. A loan was considered to be impaired when, based on existing information and events, management determined that it was probable that Northern Trust would be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans were identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status were critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, lease financing, net, non-U.S., and commercial-other classes related to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. The specific allowance was determined through an individual evaluation of loans and lending-related commitments considered impaired that was based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, was determined based on the value of the underlying real estate collateral, third-party appraisals were typically obtained and utilized by management. These appraisals were generally less than twelve months old and were subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Inherent Allowance. The inherent allowance estimation methodology was based on internally developed loss data specific to the Northern Trust loan and lease portfolio. The estimation methodology and the related qualitative adjustment framework segregated the loan and lease portfolio into homogeneous segments. For each segment, the probability of default and the loss given default were applied to the total exposure at default to determine a quantitative inherent allowance. The quantitative inherent allowance was then reviewed within the qualitative adjustment framework, where management applied judgment by assessing internal risk factors, potential limitations in the quantitative methodology and environmental factors that were not fully contemplated in the quantitative methodology to compute an adjustment to the quantitative inherent allowance for each segment of the loan portfolio.

The results of the inherent allowance estimation methodology were reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee, which included representatives from Credit Risk Management, reporting segment management, and Corporate Finance.

Loans, leases, and other extensions of credit deemed uncollectible were charged to the Allowance for Credit Losses. Subsequent recoveries, if any, were credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases were consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability was in question were charged-off or a specific reserve was established were based on

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management’s assessment as to the level of certainty regarding the amount of loss. The Provision for Credit Losses, which was charged to income, was the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above processes.

As of December 31, 2019, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default included an estimated drawdown of unused credit based on a credit conversion factor. The proportionate amount of the quantitative methodology calculation after any required adjustment in the qualitative framework resulted in the required allowance for undrawn loan commitments and standby letters of credit as of the reporting date.

The portion of the allowance assigned to loans and leases was reported as a contra asset, directly following loans and leases in the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit was reported in Other Liabilities on the consolidated balance sheets.

Other-Than-Temporary Impairment (OTTI) related to Securities. As of December 31, 2019, a security was considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected was less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security was less than the security’s amortized cost basis and the investor intended, or more-likely-than-not would have been required, to sell the security before recovery of the security’s amortized cost basis. If OTTI existed, the charge to earnings was limited to the amount of credit loss if the investor did not intend to sell the security, and it was more-likely-than-not that it would not have been required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost was recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost was charged to earnings.

J. Standby Letters of Credit. Fees on standby letters of credit are recognized in Other Operating Income on the consolidated statements of income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments.

K. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years.

L. Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in Other Assets on the consolidated balance sheets. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the Allowance for Credit Losses assigned to Loans and Leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within Other Operating Expense on the consolidated statements of income.

M. Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. Fees paid for the use of software services that do not convey a software license are expensed as incurred.

Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable.

N. Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on an accrual basis, over the period in which the service is provided. Fees are primarily a function of the market value of assets custodied, managed and serviced, transaction volumes, and securities lending volume and spreads, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes.

O. Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day as well as custody client security sales executed under contractual settlement date accounting that have not yet settled. Northern Trust advances cash to the client on the date of either client withdrawal or trade execution and awaits collection from either the short-term investment funds or via the settled trade.

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P. Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates.

Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded on the consolidated financial statements. A valuation allowance is established for deferred tax assets if it is more-likely-than-not that all or a portion will not be realized. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes on the consolidated statements of income.

Q. Cash Flow Statements. Cash and cash equivalents in the cash flow statements have been defined as “Cash and Due from Banks” on the consolidated balance sheets.

R. Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets. Funded pension and postretirement benefits are reported in Other Assets and unfunded pension and postretirement benefits are reported in Other Liabilities on the consolidated balance sheets. Plan assets and benefit obligations are measured annually at December 31, unless specific circumstances require an interim remeasurement. Plan assets are determined based on fair value generally representing observable market prices. The projected benefit obligations are determined based on the present value of projected benefit distributions at an assumed discount rate. Pension costs are recognized ratably over the estimated working lifetime of eligible participants.

S. Share-Based Compensation Plans. Northern Trust recognizes as expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees as Compensation on the consolidated statements of income. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the closing price of the Corporation’s stock on the date of grant adjusted for certain awards that do not accrue dividends while vesting. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted.

Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for performance stock unit awards are recognized on a straight-line basis over the requisite service period of the award based on expected achievement of the performance condition. Adjustments are made for employees that meet certain eligibility criteria at the grant date or during the requisite service period.

Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on a current basis for restricted stock units granted prior to February 21, 2017 that are not yet vested, and certain deferred stock unit awards that have vested but are not yet distributed. Dividend equivalents are accrued for performance stock unit awards, most restricted stock unit awards granted on or after February 21, 2017 and director awards not yet vested, and are paid upon vesting. Certain restricted stock units granted on or after February 20, 2018 are not entitled to dividend equivalents during the vesting period. Cash flows resulting from the realization of excess tax benefits are classified as operating cash flows on the consolidated statements of cash flows.

T. Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share.

Northern Trust has issued certain restricted stock unit awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These units are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities.

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Note 2 – Recent Accounting Pronouncements

On January 1, 2021, Northern Trust adopted Accounting Standards Update (ASU) No. 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (ASU 2020-01). ASU 2020-01 addresses two accounting issues: (1) application of the measurement alternative under Topic 321 in correlation with the transition into and out of the equity method under Topic 323 and (2) the measurement of certain forward contracts and purchased options to acquire equity securities. ASU 2020-01 clarifies that an entity applying the measurement alternative under Topic 321 that must transition to the equity method under Topic 323 because of an observable transaction will remeasure its investment immediately before transition, whereas an entity applying the equity method under Topic 323 that must transition to Topic 321 because of an observable transaction will remeasure its investment immediately after transition. ASU 2020-01 also clarifies that certain forward contracts or purchased call options to acquire equity securities generally will be measured using the fair value principles of Topic 321 before settlement or exercise. Upon adoption of ASU 2020-01, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 1, 2021, Northern Trust adopted ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs” (ASU 2020-08). ASU 2020-08 clarifies the Codification related to the standard issued in ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” ASU 2020-08 clarifies that an entity should amortize premiums on purchased callable debt securities to the first call date and related call amount and at that point reassess if there is a remaining premium to amortize to a subsequent call date. Upon adoption of ASU 2020-08, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 7, 2021, Northern Trust retrospectively adopted ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (ASU 2021-01). ASU 2021-01 clarifies the scope of Topic 848 to explicitly include those derivative instruments affected by changes in interest rates used for margining, discounting, or contract price alignment as eligible for certain optional expedients and exceptions in Topic 848. Upon adoption of ASU 2021-01, Northern Trust elected the expedients provided in Topic 848 with no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income.

Note 3 – Fair Value Measurements

Fair value under GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date.

Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers into or out of Level 3 occurred during the years ended December 31, 2021, or 2020.

Level 1 – Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised of AFS investments in U.S. Treasury securities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include AFS and trading account debt securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of December 31, 2021, Northern Trust’s AFS debt securities portfolio included 2,547 Level 2 securities with an aggregate market value of $35.6 billion. All 2,547 debt securities were valued by external pricing vendors. As of December 31, 2020, Northern Trust’s AFS debt securities portfolio included 2,260 Level 2 debt securities with an aggregate market value of $39.2 billion. All 2,260 debt securities were valued by external pricing vendors. Trading

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account debt securities, which totaled $0.3 million and $0.5 million as of December 31, 2021 and 2020, respectively were all valued using external pricing vendors.

Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio.

Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; credit spreads, default probabilities, and recovery rates for credit default swap contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material.

Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace.

Northern Trust’s Level 3 liabilities consist of swaps that Northern Trust entered into with the purchaser of 1.1 million and 1.0 million shares of Visa Inc. Class B common stock (Visa Class B common shares) previously held by Northern Trust and sold in June 2016 and 2015, respectively. Pursuant to the swaps, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Inc. Class A common stock (Visa Class A common shares), such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swaps also require periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swaps is determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated growth rate of the Visa Class A common share price. See “Visa Class B Common Shares” under Note 26, “Commitments and Contingent Liabilities,” for further information.

Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values.

Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Finance, C&IS and Wealth Management) reviews valuation methods and models for Level 3 assets and liabilities. Fair value measurements are performed upon acquisitions of an asset or liability. Management of the appropriate business or department reviews assumed inputs, especially when unobservable in the marketplace, in order to substantiate their use in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process in light of other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third party information is used to support the fair value measurements. If certain third party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to determine the appropriate fair value of the asset or liability.

The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2021 and 2020, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates.

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TABLE 52: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$37.5 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	10.10%			10.10%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$35.3 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	8.73%			8.73%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020, segregated by fair value hierarchy level.

TABLE 53: RECURRING BASIS HIERARCHY LEVELING

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,426.1	$	—	$	—	$	—	$	2,426.1
Obligations of States and Political Subdivisions	—		3,876.1		—		—		3,876.1
Government Sponsored Agency	—		18,075.6		—		—		18,075.6
Non-U.S. Government	—		374.0		—		—		374.0
Corporate Debt	—		2,341.7		—		—		2,341.7
Covered Bonds	—		505.6		—		—		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		3,045.1		—		—		3,045.1
Other Asset-Backed	—		5,941.6		—		—		5,941.6
Commercial Mortgage-Backed	—		1,424.7		—		—		1,424.7
Total Available for Sale	2,426.1		35,584.4		—		—		38,010.5
Trading Account	—		0.3		—		—		0.3
Total Available for Sale and Trading Debt Securities	2,426.1		35,584.7		—		—		38,010.8
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		2,207.4		—		(1,530.7)		676.7
Interest Rate Contracts	—		140.0		—		(3.1)		136.9
Total Derivative Assets	—		2,347.4		—		(1,533.8)		813.6
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		1,998.8		—		(1,234.5)		764.3
Interest Rate Contracts	—		98.9		—		(48.1)		50.8
Other Financial Derivatives(1)	—		—		37.5		(0.9)		36.6
Total Derivative Liabilities	$	—	$	2,097.7	$	37.5	$	(1,283.5)	$	851.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2021, derivative assets and liabilities shown above also include reductions of $389.4 million and $139.0 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,799.9	$	—	$	—	$	—	$	2,799.9
Obligations of States and Political Subdivisions	—		3,083.6		—		—		3,083.6
Government Sponsored Agency	—		24,956.7		—		—		24,956.7
Non-U.S. Government	—		714.0		—		—		714.0
Corporate Debt	—		2,539.6		—		—		2,539.6
Covered Bonds	—		553.1		—		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		2,345.8		—		—		2,345.8
Other Asset-Backed	—		3,997.5		—		—		3,997.5
Commercial Mortgage Backed	—		1,031.8		—		—		1,031.8
Total Available for Sale	2,799.9		39,222.1		—		—		42,022.0
Trading Account	—		0.5		—		—		0.5
Total Available for Sale and Trading Debt Securities	2,799.9		39,222.6		—		—		42,022.5
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		4,260.7		—		(3,505.3)		755.4
Interest Rate Contracts	—		297.5		—		(2.5)		295.0
Total Derivatives Assets	—		4,558.2		—		(3,507.8)		1,050.4
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		4,722.5		—		(2,718.6)		2,003.9
Interest Rate Contracts	—		125.0		—		(98.5)		26.5
Other Financial Derivative(1)	—		—		35.3		—		35.3
Total Derivative Liabilities	$	—	$	4,847.5	$	35.3	$	(2,817.1)	$	2,065.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2020, derivative assets and liabilities shown above also include reductions of $1,867.8 million and $1,177.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

The following table presents the changes in Level 3 liabilities for the years ended December 31, 2021 and 2020.

TABLE 54: CHANGES IN LEVEL 3 LIABILITIES

LEVEL 3 LIABILITIES	SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
(In Millions)	2021		2020
Fair Value at January 1	$	35.3	$	33.4
Total (Gains) Losses:
Included in Earnings(1)	21.3		18.3
Purchases, Issues, Sales, and Settlements
Settlements	(19.1)		(16.4)
Fair Value at December 31	$	37.5	$	35.3
Unrealized Losses (Gains) Included in Earnings Related to Financial Instruments Held at December 31(1)	$	22.0	$	18.6

(1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income.

Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Assets measured at fair value on a nonrecurring basis at December 31, 2021 and 2020, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of nonaccrual loans whose values were based on real estate and other available collateral, and of OREO properties.

Fair values of real estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes. The fair values of real estate loan collateral were subject to adjustments to reflect management’s judgment as to realizable value and consisted of discount factors ranging from 15.0% to 20.0% with a weighted average based on fair values of 15.4% and 16.8% as of December 31, 2021 and 2020, respectively. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset-specific characteristics and in limited instances third-party valuations are used. OREO assets are carried at the lower of cost or fair value less estimated costs to sell, with fair value typically based on third-party appraisals.

Collateral-based nonaccrual loans that have been adjusted to fair value totaled $15.0 million and $24.6 million at December 31, 2021 and 2020, respectively.

The following table presents the fair values of Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2021 and 2020, as well as the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for such assets as of such dates.

TABLE 55: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$15.0 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	15.4%

(1) Includes real estate collateral-based loans and other collateral-based loans.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$24.6 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	16.8%

(1) Includes real estate collateral-based loans and other collateral-based loans.

2021 Annual Report | Northern Trust Corporation 105

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables summarize the fair values of all financial instruments.

TABLE 56: FAIR VALUE OF FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	3,056.8	$	3,056.8	$	3,056.8	$	—	$	—
Federal Reserve and Other Central Bank Deposits	64,582.2		64,582.2		—		64,582.2		—
Interest-Bearing Deposits with Banks	1,949.4		1,949.4		—		1,949.4		—
Securities Purchased under Agreements to Resell	686.4		686.4		—		686.4		—
Debt Securities
Available for Sale(1)	38,010.5		38,010.5		2,426.1		35,584.4		—
Held to Maturity	23,564.5		23,315.4		47.0		23,268.4		—
Trading Account	0.3		0.3		—		0.3		—
Loans (excluding Leases)
Held for Investment	40,319.3		40,208.2		—		—		40,208.2
Held for Sale	12.3		24.5		—		24.5
Client Security Settlement Receivables	1,941.2		1,941.2		—		1,941.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140.1		140.1		—		140.1		—
Community Development Investments	959.6		959.6		—		959.6		—
Employee Benefit and Deferred Compensation	218.4		222.9		119.1		103.8		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	83,318.6	$	83,318.6	$	83,318.6	$	—	$	—
Savings Certificates and Other Time	842.7		843.8		—		843.8		—
Non U.S. Offices Interest-Bearing	75,767.1		75,767.1		—		75,767.1		—
Federal Funds Purchased	0.2		0.2		—		0.2		—
Securities Sold Under Agreements to Repurchase	531.9		531.9		—		531.9		—
Other Borrowings	3,583.8		3,583.9		—		3,583.9		—
Senior Notes	2,505.5		2,591.4		—		2,591.4		—
Long-Term Debt
Subordinated Debt	1,145.7		1,189.4		—		1,189.4		—
Other Liabilities
Standby Letters of Credit	15.7		15.7		—		—		15.7
Loan Commitments	59.8		59.8		—		—		59.8
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	245.3	$	245.3	$	—	$	245.3	$	—
Liabilities	25.5		25.5		—		25.5		—
Interest Rate Contracts
Assets	7.6		7.6		—		7.6		—
Liabilities	8.7		8.7		—		8.7		—
Other Financial Derivatives
Liabilities(2)	37.5		37.5		—		—		37.5
Client-Related and Trading
Foreign Exchange Contracts
Assets	1,962.1		1,962.1		—		1,962.1		—
Liabilities	1,973.3		1,973.3		—		1,973.3		—
Interest Rate Contracts
Assets	132.4		132.4		—		132.4		—
Liabilities	90.2		90.2		—		90.2		—

(1) Refer to the table located on page 103 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

106 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	DECEMBER 31, 2020
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	4,389.5	$	4,389.5	$	4,389.5	$	—	$	—
Federal Reserve and Other Central Bank Deposits	55,503.6		55,503.6		—		55,503.6		—
Interest-Bearing Deposits with Banks	4,372.6		4,372.6		—		4,372.6		—
Securities Purchased under Agreements to Resell	1,596.5		1,596.5		—		1,596.5		—
Debt Securities
Available for Sale(1)	42,022.0		42,022.0		2,799.9		39,222.1		—
Held to Maturity	17,791.1		17,797.4		90.0		17,707.4		—
Trading Account	0.5		0.5		—		0.5		—
Loans (excluding Leases)
Held for Investment	33,558.0		34,017.5		—		—		34,017.5
Client Security Settlement Receivables	1,160.2		1,160.2		—		1,160.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	275.0		275.0		—		275.0		—
Community Development Investments	919.6		919.6		—		919.6		—
Employee Benefit and Deferred Compensation	215.8		228.9		138.6		90.3		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	71,742.5	$	71,742.5	$	71,742.5	$	—	$	—
Savings Certificates and Other Time	937.1		943.0		—		943.0		—
Non U.S. Offices Interest-Bearing	71,198.4		71,198.4		—		71,198.4		—
Federal Funds Purchased	260.2		260.2		—		260.2		—
Securities Sold Under Agreements to Repurchase	39.8		39.8		—		39.8		—
Other Borrowings	4,011.5		4,012.7		—		4,012.7		—
Senior Notes	3,122.4		3,222.6		—		3,222.6		—
Long-Term Debt
Subordinated Debt	1,189.3		1,250.1		—		1,250.1		—
Floating Rate Capital Debt	277.8		264.6		—		264.6		—
Other Liabilities
Standby Letters of Credit	22.4		22.4		—		—		22.4
Loan Commitments	77.0		77.0		—		—		77.0
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	15.6	$	15.6	$	—	$	15.6	$	—
Liabilities	311.8		311.8		—		311.8		—
Interest Rate Contracts
Assets	8.3		8.3		—		8.3		—
Liabilities	10.2		10.2		—		10.2		—
Other Financial Derivatives
Liabilities(2)	35.3		35.3		—		—		35.3
Client-Related and Trading
Foreign Exchange Contracts
Assets	4,245.1		4,245.1		—		4,245.1		—
Liabilities	4,410.7		4,410.7		—		4,410.7		—
Interest Rate Contracts
Assets	289.2		289.2		—		289.2		—
Liabilities	114.8		114.8		—		114.8		—

(1) Refer to the table located on page 104 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

2021 Annual Report | Northern Trust Corporation 107

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Securities

Available for Sale Debt Securities. The following tables provide the amortized cost, fair values, and remaining maturities of AFS debt securities.

TABLE 57: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,406.2	$	29.3	$	9.4	$	2,426.1
Obligations of States and Political Subdivisions	3,841.0		73.7		38.6		3,876.1
Government Sponsored Agency	18,092.1		93.7		110.2		18,075.6
Non-U.S. Government	383.4		0.1		9.5		374.0
Corporate Debt	2,319.8		31.6		9.7		2,341.7
Covered Bonds	502.6		3.9		0.9		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,052.4		28.1		35.4		3,045.1
Other Asset-Backed	5,962.0		11.3		31.7		5,941.6
Commercial Mortgage-Backed	1,389.0		38.9		3.2		1,424.7
Total	$	37,948.5	$	310.6	$	248.6	$	38,010.5

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,728.8	$	71.1	$	—	$	2,799.9
Obligations of States and Political Subdivisions	2,927.8		155.9		0.1		3,083.6
Government Sponsored Agency	24,595.1		388.5		26.9		24,956.7
Non-U.S. Government	713.6		1.1		0.7		714.0
Corporate Debt	2,459.9		79.8		0.1		2,539.6
Covered Bonds	543.1		10.0		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,281.7		64.7		0.6		2,345.8
Other Asset-Backed	3,953.5		46.8		2.8		3,997.5
Commercial Mortgage-Backed	952.2		79.7		0.1		1,031.8
Total	$	41,155.7	$	897.6	$	31.3	$	42,022.0

TABLE 58: REMAINING MATURITY OF AVAILABLE FOR SALE DEBT SECURITIES

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	—	$	—	$	2,157.8	$	2,187.1	$	248.4	$	239.0	$	—	$	—	$	2,406.2	$	2,426.1
Obligations of States and Political Subdivisions	22.8		23.0		448.3		462.1		3,239.7		3,262.6		130.2		128.4		3,841.0		3,876.1
Government Sponsored Agency	2,706.1		2,713.2		8,112.2		8,121.1		6,084.0		6,053.4		1,189.8		1,187.9		18,092.1		18,075.6
Non-U.S. Government	72.7		72.7		228.4		223.1		82.3		78.2		—		—		383.4		374.0
Corporate Debt	404.4		408.0		1,892.6		1,911.6		18.1		17.5		4.7		4.6		2,319.8		2,341.7
Covered Bonds	141.5		142.1		361.1		363.5		—		—		—		—		502.6		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	760.6		765.7		1,926.8		1,926.1		365.0		353.3		—		—		3,052.4		3,045.1
Other Asset-Backed	894.0		896.8		3,559.0		3,541.4		1,291.6		1,286.3		217.4		217.1		5,962.0		5,941.6
Commercial Mortgage-Backed	7.5		7.4		962.3		982.1		419.2		435.2		—		—		1,389.0		1,424.7
Total	$	5,009.6	$	5,028.9	$	19,648.5	$	19,718.1	$	11,748.3	$	11,725.5	$	1,542.1	$	1,538.0	$	37,948.5	$	38,010.5

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

108 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Available for Sale Debt Securities with Unrealized Losses. The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2021 and 2020.

TABLE 59: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED

AS OF DECEMBER 31, 2021	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
U.S. Government	$	239.0	$	9.4	$	—	$	—	$	239.0	$	9.4
Obligations of States and Political Subdivisions	1,699.5		37.4		31.6		1.2		1,731.1		38.6
Government Sponsored Agency	8,207.3		90.2		1,821.4		20.0		10,028.7		110.2
Non-U.S. Government	230.0		9.5		—		—		230.0		9.5
Corporate Debt	693.7		9.7		—		—		693.7		9.7
Covered Bonds	92.1		0.9		—		—		92.1		0.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,116.8		31.9		172.3		3.5		1,289.1		35.4
Other Asset-Backed	3,815.5		31.4		11.7		0.3		3,827.2		31.7
Commercial Mortgage-Backed	566.8		3.2		—		—		566.8		3.2
Total	$	16,660.7	$	223.6	$	2,037.0	$	25.0	$	18,697.7	$	248.6

AS OF DECEMBER 31, 2020	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
Obligations of States and Political Subdivisions	$	52.3	$	0.1	$	—	$	—	$	52.3	$	0.1
Government Sponsored Agency	2,402.3		13.6		2,528.7		13.3		4,931.0		26.9
Non-U.S. Government	90.5		0.7		—		—		90.5		0.7
Corporate Debt	66.6		0.1		—		—		66.6		0.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	162.8		0.5		49.9		0.1		212.7		0.6
Other Asset-Backed	176.8		0.2		792.3		2.6		969.1		2.8
Commercial Mortgage-Backed	44.4		0.1		—		—		44.4		0.1
Total	$	2,995.7	$	15.3	$	3,370.9	$	16.0	$	6,366.6	$	31.3

As of December 31, 2021, 1,233 AFS debt securities with a combined fair value of $18.7 billion were in an unrealized loss position, with their unrealized losses totaling $248.6 million. As of December 31, 2021, unrealized losses in AFS debt securities of $110.2 million related to government sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase.

As of December 31, 2020, 412 AFS debt securities with a combined fair value of $6.4 billion were in an unrealized loss position, with their unrealized losses totaling $31.3 million. As of December 31, 2020, unrealized losses in AFS debt securities of $26.9 million related to government-sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase.

14% and 16% of the AFS corporate debt securities portfolio were backed by guarantees provided by U.S. and non-U.S. governmental entities as of December 31, 2021 and 2020, respectively. The remaining unrealized losses on Northern Trust’s AFS debt securities portfolio as of December 31, 2021 and 2020 are attributable to changes in overall market interest rates or credit spreads.

As of December 31, 2021, Northern Trust did not intend to sell any AFS debt securities in an unrealized loss position and it was more likely than not that Northern Trust would not be required to sell any such investment before the recovery of its amortized cost basis, which may be maturity.

AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit-related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred.

2021 Annual Report | Northern Trust Corporation 109

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

There was no provision for corporate debt AFS securities for the year ended December 31, 2021 and 2020, and no allowance for credit losses for corporate debt AFS securities as of December 31, 2021 and 2020.

Held to Maturity Debt Securities. The following tables provide the amortized cost, fair values and remaining maturities of held to maturity (HTM) debt securities.

TABLE 60: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF HELD TO MATURITY DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	47.0	$	—	$	—	$	47.0
Obligations of States and Political Subdivisions	0.8		—		—		0.8
Government Sponsored Agency	5,927.6		1.1		106.1		5,822.6
Non-U.S. Government	5,773.3		3.9		9.8		5,767.4
Corporate Debt	901.8		2.5		6.5		897.8
Covered Bonds	2,942.4		8.3		9.6		2,941.1
Certificates of Deposit	674.7		—		—		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	6,098.0		14.3		80.0		6,032.3
Other Asset-Backed	682.6		1.0		—		683.6
Other	516.3		3.4		71.6		448.1
Total	$	23,564.5	$	34.5	$	283.6	$	23,315.4

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	90.0	$	—	$	—	$	90.0
Obligations of States and Political Subdivisions	2.1		0.1		—		2.2
Government Sponsored Agency	3.0		0.3		—		3.3
Non-U.S. Government	8,336.6		7.3		0.2		8,343.7
Corporate Debt	588.0		6.5		0.1		594.4
Covered Bonds	3,184.6		24.6		0.3		3,208.9
Certificates of Deposit	807.2		—		—		807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,648.0		43.5		0.9		3,690.6
Other Asset-Backed	677.0		0.9		—		677.9
Other	454.6		1.1		76.5		379.2
Total	$	17,791.1	$	84.3	$	78.0	$	17,797.4

As of December 31, 2021, the $23.6 billion HTM debt securities portfolio had an unrealized loss of $106.1 million, $80 million and $71.6 million related to government sponsored agency, sub-sovereign, supranational and non-U.S. agency bonds, and other residential mortgage-backed securities, respectively, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase. As of December 31, 2020, the $17.8 billion HTM debt securities portfolio had an unrealized loss of $76.5 million related to other residential mortgage-backed securities, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase.

110 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 61: REMAINING MATURITY OF HELD TO MATURITY DEBT SECURITIES

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	47.0	$	47.0	$	—	$	—	$	—	$	—	$	—	$	—	$	47.0	$	47.0
Obligations of States and Political Subdivisions	0.8		0.8		—		—		—		—		—		—		0.8		0.8
Government Sponsored Agency	1,161.5		1,143.6		2,101.4		2,064.6		1,848.8		1,815.0		815.9		799.4		5,927.6		5,822.6
Non-U.S. Government	4,502.7		4,502.6		1,109.2		1,103.9		161.4		160.9		—		—		5,773.3		5,767.4
Corporate Debt	177.4		178.8		708.3		703.4		16.1		15.6		—		—		901.8		897.8
Covered Bonds	650.1		651.3		1,684.0		1,688.0		608.3		601.8		—		—		2,942.4		2,941.1
Certificates of Deposit	674.7		674.7		—		—		—		—		—		—		674.7		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,086.9		1,091.5		4,507.7		4,451.4		503.4		489.4		—		—		6,098.0		6,032.3
Other Asset-Backed	190.4		190.6		398.0		398.7		94.2		94.3		—		—		682.6		683.6
Other	106.0		104.1		232.0		221.8		60.1		58.4		118.2		63.8		516.3		448.1
Total	$	8,597.5	$	8,585.0	$	10,740.6	$	10,631.8	$	3,292.3	$	3,235.4	$	934.1	$	863.2	$	23,564.5	$	23,315.4

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

HTM debt securities consist of securities that management intends to, and Northern Trust has the ability to, hold until maturity. During the year ended December 31, 2021, $6.9 billion of government sponsored agency securities were transferred from AFS to HTM for capital management purposes, all of which were transferred in the second quarter of 2021. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into net interest income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value. During the year ended December 31, 2020, $301.5 million of securities reflected in U.S. government were transferred from AFS to HTM, all of which were transferred in the second quarter of 2020.

Credit Quality Indicators. The following table provides the amortized cost of HTM debt securities by credit rating.

TABLE 62: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING

	AS OF DECEMBER 31, 2021
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	47.0		$	—		$	—		$	—		$	—		$	47.0
Obligations of States and Political Subdivisions	—			0.8			—			—			—			0.8
Government Sponsored Agency	5,927.6			—			—			—			—			5,927.6
Non-U.S. Government	398.0			942.6			4,088.8			343.9			—			5,773.3
Corporate Debt	2.3			386.7			512.8			—			—			901.8
Covered Bonds	2,942.4			—			—			—			—			2,942.4
Certificates of Deposit	—			—			—			—			674.7			674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,207.6			1,858.0			31.3			1.1			—			6,098.0
Other Asset-Backed	682.6			—			—			—			—			682.6
Other	—			—			—			—			516.3			516.3
Total	$	14,207.5		$	3,188.1		$	4,632.9		$	345.0		$	1,191.0		$	23,564.5
Percent of Total	60		%	14		%	20		%	1		%	5		%	100		%

2021 Annual Report | Northern Trust Corporation 111

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	AS OF DECEMBER 31, 2020
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	90.0		$	—		$	—		$	—		$	—		$	90.0
Obligations of States and Political Subdivisions	—			1.0			—			1.1			—			2.1
Government Sponsored Agency	3.0			—			—			—			—			3.0
Non-U.S. Government	319.8			1,337.4			6,630.6			48.8			—			8,336.6
Corporate Debt	3.8			279.1			305.1			—			—			588.0
Covered Bonds	3,184.6			—			—			—			—			3,184.6
Certificates of Deposit	—			—			—			—			807.2			807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,590.9			1,057.1			—			—			—			3,648.0
Other Asset-Backed	677.0			—			—			—			—			677.0
Other	—			—			—			—			454.6			454.6
Total	$	6,869.1		$	2,674.6		$	6,935.7		$	49.9		$	1,261.8		$	17,791.1
Percent of Total	39		%	15		%	39		%	—		%	7		%	100		%

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 94% and 93% of the HTM portfolio comprised of securities rated A or higher as of December 31, 2021 and 2020, respectively. The remaining HTM debt securities portfolio was comprised of 1% rated BBB at December 31, 2021, and 5% and 7% not rated by Moody’s, S&P Global, or Fitch Ratings at December 31, 2021 and 2020, respectively. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.

Investment Security Gains and Losses. Proceeds of $116.7 million, $879.9 million, and $1.2 billion in 2021, 2020, and 2019, respectively, from the sale of debt securities resulted in the following gains and losses shown in the following table.

TABLE 63: INVESTMENT SECURITY GAINS AND LOSSES

	DECEMBER 31,
(In Millions)	2021		2020		2019
Gross Realized Debt Securities Gains	$	1.4	$	3.4	$	2.4
Gross Realized Debt Securities Losses	(1.7)		(3.8)		(3.5)
Changes in Other-Than-Temporary Impairment Losses(1)	—		—		(0.3)
Net Investment Security Losses	$	(0.3)	$	(0.4)	$	(1.4)

(1) Other-than-temporary impairment losses relate to certain Community Reinvestment Act (CRA) eligible HTM debt securities.

Note 5 – Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

During the third quarter of 2021, Northern Trust became a Government Securities Division (GSD) netting and sponsoring member in the Fixed Income Clearing Corporation (FICC) sponsored member program. FICC, a wholly-owned subsidiary of The Depository Trust & Clearing Corporation, is a central counterparty and provides netting and settlement for the U.S. Government securities marketplace. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when FICC is the counterparty.

The following tables summarize information related to Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase.

112 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 64: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

($ In Millions)	2021			2020
Balance at December 31	$	686.4		$	1,596.5
Average Balance During the Year	1,067.4			1,253.1
Average Interest Rate Earned During the Year	0.33		%	0.31		%
Maximum Month-End Balance During the Year	$	1,819.1		$	2,055.6

TABLE 65: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

($ In Millions)	2021			2020
Balance at December 31	$	531.9		$	39.8
Average Balance During the Year	232.0			218.3
Average Interest Rate Paid During the Year	0.07		%	0.47		%
Maximum Month-End Balance During the Year	$	892.6		$	269.8

TABLE 66: REPURCHASE AGREEMENTS ACCOUNTED FOR AS SECURED BORROWINGS

	REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
	December 31, 2021						December 31, 2020
($ In Millions)	OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL		OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL
U.S. Treasury and Agency Securities	$	32.4	$	499.5	$	531.9	$	39.8	$	—	$	39.8
Total Borrowings	32.4		499.5		531.9		39.8		—		39.8
Net Amount of Recognized Liabilities for Repurchase Agreements in Note 28	32.4		499.5		531.9		39.8		—		39.8
Amounts related to agreements not included in Note 28	—		—		—		—		—		—

Note 6 – Loans and Leases

Amounts outstanding for Loans and Leases, by segment and class, are shown in the following table.

TABLE 67: LOANS AND LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Commercial
Commercial and Institutional	$	11,489.2	$	10,058.3
Commercial Real Estate	4,326.3		3,558.4
Non-U.S.	1,990.2		1,345.7
Lease Financing, net	11.0		11.4
Other	670.7		288.2
Total Commercial	18,487.4		15,262.0
Personal
Private Client	15,256.3		11,815.1
Residential Real Estate	6,319.9		6,035.7
Non-U.S.	381.8		597.9
Other	35.2		49.0
Total Personal	21,993.2		18,497.7
Total Loans and Leases	$	40,480.6	$	33,759.7

Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest-only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2021 and 2020, equity credit lines totaled $258.2 million and $304.4 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 97% of the total equity credit lines as of both of those dates.

2021 Annual Report | Northern Trust Corporation 113

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Included within the non-U.S., commercial-other, and personal-other classes are short duration advances, primarily related to the processing of custodied client investments, totaling $1.6 billion at December 31, 2021 and $1.1 billion at December 31, 2020. Demand deposit overdrafts reclassified as loan balances totaled $8.0 million and $26.4 million at December 31, 2021 and 2020, respectively. Loans classified as held for sale totaled $12.3 million at December 31, 2021 related to the decision to exit a non-strategic loan portfolio. There were no loans classified as held for sale at December 31, 2020. Loans classified as held for sale are recorded at the lower of cost or fair value.

As of December 31, 2021 and 2020, there were no leases classified as held for sale.

The components of the net investment in leveraged leases is as follows:

TABLE 68: LEVERAGED LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Leveraged Leases
Net Rental Receivable	$	11.4	$	11.8
Residual Value	—		—
Unearned Income	(0.4)		(0.4)
Investment in Leveraged Leases	11.0		11.4
Lease Financing, net	$	11.0	$	11.4

Paycheck Protection Program. In response to the COVID-19 pandemic, Northern Trust became a lender under the Paycheck Protection Program, as amended (PPP), which was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is administered by the U.S. Small Business Administration (SBA). Loans issued under the PPP are funded by Northern Trust directly to participating borrowers. The PPP loans are guaranteed by the SBA and borrowers are eligible to apply for PPP loan forgiveness for up to the full principal amount and accrued interest of the PPP loan.

To the extent a borrower uses PPP loan proceeds to cover eligible costs and has met all other SBA loan forgiveness requirements, the SBA will determine loan forgiveness under the CARES Act and will pay to Northern Trust the eligible PPP loan forgiven amount, which will be credited to the borrower’s loan to repay or pay down the PPP loan. The SBA forgiveness portal opened on August 10, 2020 and Northern Trust’s vendor portal opened on September 11, 2020 to begin processing the PPP loan forgiveness applications. When Northern Trust submits forgiveness applications to the SBA, the SBA has at least 90 days to respond as to the approval or denial of such application. 1,301 and 36 loans were forgiven through the PPP loan forgiveness process which resulted in $231.5 million and $6.7 million of loan principal and interest being forgiven during the year ended December 31, 2021 and 2020, respectively.

As of December 31, 2021, Northern Trust had 213 outstanding loans totaling $56.9 million under the PPP in its commercial and institutional portfolio with an average loan balance of $0.3 million. For its origination efforts, Northern Trust received approximately $0.1 million and $2.6 million in SBA fees, net of service charges, during the year ended December 31, 2021 and 2020, respectively.

Northern Trust accounts for loans originated under the PPP as loan receivables in accordance with Accounting Standards Codification (ASC) 310 and recognizes such loans at the principal amount less the net amount of loan origination fees. PPP loans are reported in Total Loans and Leases on the consolidated balance sheets.

The SBA provides a 100% guarantee on PPP loans covering principal and interest. Northern Trust considers the risk mitigating effects of these guarantees, and accounts for them as a credit enhancement embedded in the contract. As a result, no allowance for credit losses is measured for Northern Trust’s exposure under the PPP.

Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans and leases. Northern Trust utilizes a variety of credit quality indicators to assess the credit risk of loans and leases at the segment, class, and individual credit exposure levels.

114 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting and management reporting. Risk ratings are used for ranking the credit risk of borrowers and the probability of their default. Each borrower is rated using one of a number of ratings models, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans and leases in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan and lease class.

•Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels;

•Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support;

•Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels;

•Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels;

•Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio;

•Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and

•Personal-Other: cash-flow-to-debt and net worth ratios.

While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually.

Loan and lease segment and class balances as of December 31, 2021 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.

2021 Annual Report | Northern Trust Corporation 115

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 69: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR

DECEMBER 31, 2021	TERM LOANS AND LEASES												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2021		2020		2019		2018		2017		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	1,057.9	$	469.7	$	313.7	$	156.6	$	48.2	$	535.8	$	4,944.9	$	0.1	$	7,526.9
4 to 5 Category	1,043.6		432.2		377.3		231.6		234.1		190.1		1,219.0		33.1		3,761.0
6 to 9 Category	50.0		20.3		26.8		30.2		9.9		1.9		62.2		—		201.3
Total Commercial and Institutional	2,151.5		922.2		717.8		418.4		292.2		727.8		6,226.1		33.2		11,489.2
Commercial Real Estate
Risk Rating:
1 to 3 Category	485.3		310.2		260.6		60.2		16.8		79.3		67.5		2.9		1,282.8
4 to 5 Category	967.9		638.1		460.1		223.0		81.4		364.1		182.3		20.5		2,937.4
6 to 9 Category	24.5		—		50.6		—		20.0		8.5		2.5		—		106.1
Total Commercial Real Estate	1,477.7		948.3		771.3		283.2		118.2		451.9		252.3		23.4		4,326.3
Non-U.S.
Risk Rating:
1 to 3 Category	824.1		68.9		38.4		—		9.1		—		582.0		—		1,522.5
4 to 5 Category	160.2		—		—		1.9		—		191.1		73.3		1.8		428.3
6 to 9 Category	2.9		—		23.1		—		—		—		13.4		—		39.4
Total Non-U.S.	987.2		68.9		61.5		1.9		9.1		191.1		668.7		1.8		1,990.2
Lease Financing, net
Risk Rating:
4 to 5 Category	—		—		—		—		—		11.0		—		—		11.0
Total Lease Financing, net	—		—		—		—		—		11.0		—		—		11.0
Other
Risk Rating:
1 to 3 Category	551.5		—		—		—		—		—		—		—		551.5
4 to 5 Category	119.2		—		—		—		—		—		—		—		119.2
Total Other	670.7		—		—		—		—		—		—		—		670.7
Total Commercial	5,287.1		1,939.4		1,550.6		703.5		419.5		1,381.8		7,147.1		58.4		18,487.4
Personal
Private Client
Risk Rating:
1 to 3 Category	455.5		97.9		87.0		14.9		38.3		129.8		7,592.8		44.7		8,460.9
4 to 5 Category	579.2		333.9		519.3		81.0		54.8		39.9		4,979.8		178.3		6,766.2
6 to 9 Category	7.1		0.2		—		20.4		—		—		1.5		—		29.2
Total Private Client	1,041.8		432.0		606.3		116.3		93.1		169.7		12,574.1		223.0		15,256.3
Residential Real Estate
Risk Rating:
1 to 3 Category	1,137.8		996.4		201.8		13.5		49.3		505.8		161.5		—		3,066.1
4 to 5 Category	1,137.3		1,002.5		242.7		79.5		113.3		369.8		218.1		2.2		3,165.4
6 to 9 Category	0.4		10.5		5.4		8.4		0.5		58.2		5.0		—		88.4
Total Residential Real Estate	2,275.5		2,009.4		449.9		101.4		163.1		933.8		384.6		2.2		6,319.9
Non-U.S.
Risk Rating:
1 to 3 Category	27.6		—		1.2		—		—		1.0		44.1		—		73.9
4 to 5 Category	36.1		1.9		18.7		10.4		—		3.8		229.0		7.8		307.7
6 to 9 Category	—		—		—		—		—		0.2		—		—		0.2
Total Non-U.S.	63.7		1.9		19.9		10.4		—		5.0		273.1		7.8		381.8
Other
Risk Rating:
1 to 3 Category	13.4		—		—		—		—		—		—		—		13.4
4 to 5 Category	21.8		—		—		—		—		—		—		—		21.8
Total Other	35.2		—		—		—		—		—		—		—		35.2
Total Personal	3,416.2		2,443.3		1,076.1		228.1		256.2		1,108.5		13,231.8		233.0		21,993.2
Total Loans and Leases	$	8,703.3	$	4,382.7	$	2,626.7	$	931.6	$	675.7	$	2,490.3	$	20,378.9	$	291.4	$	40,480.6

116 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020	TERM LOANS AND LEASES												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2020		2019		2018		2017		2016		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	663.8	$	546.0	$	204.6	$	96.0	$	396.0	$	448.8	$	3,742.4	$	5.5	$	6,103.1
4 to 5 Category	793.4		505.1		354.1		405.4		134.6		167.3		1,238.7		32.3		3,630.9
6 to 9 Category	34.3		119.8		37.3		42.8		23.0		6.0		61.1		—		324.3
Total Commercial and Institutional	1,491.5		1,170.9		596.0		544.2		553.6		622.1		5,042.2		37.8		10,058.3
Commercial Real Estate
Risk Rating:
1 to 3 Category	406.3		109.2		27.6		36.5		11.8		99.4		124.3		8.7		823.8
4 to 5 Category	703.1		811.8		332.7		107.4		184.5		382.8		60.4		11.4		2,594.1
6 to 9 Category	15.3		55.2		32.0		25.8		—		12.2		—		—		140.5
Total Commercial Real Estate	1,124.7		976.2		392.3		169.7		196.3		494.4		184.7		20.1		3,558.4
Non-U.S.
Risk Rating:
1 to 3 Category	555.2		16.8		—		11.1		—		—		78.5		—		661.6
4 to 5 Category	313.1		0.7		2.0		—		—		157.9		39.2		1.8		514.7
6 to 9 Category	—		23.1		—		—		—		—		146.3		—		169.4
Total Non-U.S.	868.3		40.6		2.0		11.1		—		157.9		264.0		1.8		1,345.7
Lease Financing, net
Risk Rating:
4 to 5 Category	—		—		—		—		—		11.4		—		—		11.4
Total Lease Financing, net	—		—		—		—		—		11.4		—		—		11.4
Other
Risk Rating:
1 to 3 Category	81.7		—		—		—		—		—		—		—		81.7
4 to 5 Category	206.5		—		—		—		—		—		—		—		206.5
Total Other	288.2		—		—		—		—		—		—		—		288.2
Total Commercial	3,772.7		2,187.7		990.3		725.0		749.9		1,285.8		5,490.9		59.7		15,262.0
Personal
Private Client
Risk Rating:
1 to 3 Category	668.6		273.7		51.7		60.4		10.2		136.1		5,392.8		47.9		6,641.4
4 to 5 Category	492.1		479.9		117.3		60.4		77.5		77.5		3,564.7		207.3		5,076.7
6 to 9 Category	6.0		0.5		22.1		3.2		—		—		63.7		1.5		97.0
Total Private Client	1,166.7		754.1		191.1		124.0		87.7		213.6		9,021.2		256.7		11,815.1
Residential Real Estate
Risk Rating:
1 to 3 Category	1,554.3		317.4		42.9		109.9		205.1		627.8		152.8		1.7		3,011.9
4 to 5 Category	854.6		359.5		115.8		163.2		209.7		896.5		273.1		7.4		2,879.8
6 to 9 Category	15.3		8.3		0.7		0.5		1.9		94.8		22.5		—		144.0
Total Residential Real Estate	2,424.2		685.2		159.4		273.6		416.7		1,619.1		448.4		9.1		6,035.7
Non-U.S.
Risk Rating:
1 to 3 Category	23.3		14.9		—		—		—		1.8		275.6		—		315.6
4 to 5 Category	12.7		26.0		11.8		0.5		0.5		7.9		217.5		5.1		282.0
6 to 9 Category	—		—		—		—		—		0.3		—		—		0.3
Total Non-U.S.	36.0		40.9		11.8		0.5		0.5		10.0		493.1		5.1		597.9
Other
Risk Rating:
1 to 3 Category	34.6		—		—		—		—		—		—		—		34.6
4 to 5 Category	14.4		—		—		—		—		—		—		—		14.4
Total Other	49.0		—		—		—		—		—		—		—		49.0
Total Personal	3,675.9		1,480.2		362.3		398.1		504.9		1,842.7		9,962.7		270.9		18,497.7
Total Loans and Leases	$	7,448.6	$	3,667.9	$	1,352.6	$	1,123.1	$	1,254.8	$	3,128.5	$	15,453.6	$	330.6	$	33,759.7

2021 Annual Report | Northern Trust Corporation 117

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Loans and leases in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down-cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss.

Loans and leases in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have fewer financial resources to manage through economic downturns. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss.

Loans and leases in the watch list category have elevated credit risk profiles that are monitored through internal watch lists, and consist of credits with borrower ratings of “6 to 9.” These credits, which include all nonaccrual credits, are expected to exhibit minimally acceptable probabilities of default, elevated risk of default, or are currently in default. Borrowers associated with these risk profiles that are not currently in default have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse down cycle scenarios. As a result of these characteristics, borrowers in this category exhibit an elevated to probable likelihood of loss.

Past Due Status. Past due status is based on the length of time from the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans and leases that are 29 days past due or less are reported as current.

The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of December 31, 2021 and 2020.

TABLE 70: DELINQUENCY STATUS

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2021
Commercial
Commercial and Institutional	$	11,434.7	$	32.5	$	2.1	$	0.4	$	11,469.7	$	19.5	$	11,489.2	$	8.8
Commercial Real Estate	4,256.6		3.1		—		—		4,259.7		66.6		4,326.3		52.3
Non-U.S.	1,990.2		—		—		—		1,990.2		—		1,990.2		—
Lease Financing, net	11.0		—		—		—		11.0		—		11.0		—
Other	670.7		—		—		—		670.7		—		670.7		—
Total Commercial	18,363.2		35.6		2.1		0.4		18,401.3		86.1		18,487.4		61.1
Personal
Private Client	14,927.3		229.5		71.8		27.7		15,256.3		—		15,256.3		—
Residential Real Estate	6,273.2		7.0		3.3		0.2		6,283.7		36.2		6,319.9		36.2
Non-U.S.	381.6		0.2		—		—		381.8		—		381.8		—
Other	35.2		—		—		—		35.2		—		35.2		—
Total Personal	21,617.3		236.7		75.1		27.9		21,957.0		36.2		21,993.2		36.2
Total Loans and Leases	$	39,980.5	$	272.3	$	77.2	$	28.3	$	40,358.3	$	122.3	$	40,480.6	$	97.3
					Other Real Estate Owned						$	3.0
					Total Nonaccrual Assets						$	125.3

118 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2020
Commercial
Commercial and Institutional	$	9,877.0	$	153.7	$	1.2	$	—	$	10,031.9	$	26.4	$	10,058.3	$	9.1
Commercial Real Estate	3,516.2		2.0		—		—		3,518.2		40.2		3,558.4		32.3
Non-U.S.	1,345.7		—		—		—		1,345.7		—		1,345.7		—
Lease Financing, net	11.4		—		—		—		11.4		—		11.4		—
Other	288.2		—		—		—		288.2		—		288.2		—
Total Commercial	15,038.5		155.7		1.2		—		15,195.4		66.6		15,262.0		41.4
Personal
Private Client	11,765.4		29.1		9.9		7.8		11,812.2		2.9		11,815.1		2.9
Residential Real Estate	5,946.0		23.5		2.9		1.1		5,973.5		62.2		6,035.7		53.8
Non-U.S	596.7		1.2		—		—		597.9		—		597.9		—
Other	49.0		—		—		—		49.0		—		49.0		—
Total Personal	18,357.1		53.8		12.8		8.9		18,432.6		65.1		18,497.7		56.7
Total Loans and Leases	$	33,395.6	$	209.5	$	14.0	$	8.9	$	33,628.0	$	131.7	$	33,759.7	$	98.1
					Other Real Estate Owned						$	0.7
					Total Nonaccrual Assets						$	132.4

Interest income that would have been recorded for nonaccrual loans and leases in accordance with their original terms was $4.6 million in 2021, $4.6 million in 2020, and $7.3 million in 2019.

Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral. The collateral dependent financial asset balance as of December 31, 2021 was immaterial to Northern Trust’s financial statements.

Nonaccrual Loans and Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring. There were $76.7 million and $38.9 million of nonaccrual TDRs included within nonaccrual loans as of December 31, 2021 and 2020, respectively. There were $16.5 million and $29.3 million of accrual TDRs included within nonaccrual loans as of December 31, 2021 and 2020, respectively. There were $0.2 million and $10.4 million of aggregate undrawn loan commitments and standby letters of credit at December 31, 2021 and 2020, respectively, issued to borrowers with TDR modifications of loans.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides, by segment and class, the number of TDR modifications of loans and leases during the years ended December 31, 2021, and 2020, and the recorded investments and unpaid principal balances as of December 31, 2021 and 2020.

TABLE 71: TROUBLED DEBT RESTRUCTURINGS

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2021
Commercial
Commercial and Institutional	6	$	19.6	$	19.6
Commercial Real Estate	3	36.0		42.4
Total Commercial	9	55.6		62.0
Personal
Residential Real Estate	10	1.3		1.5
Total Personal	10	1.3		1.5
Total Loans and Leases	19	$	56.9	$	63.5

Note: Period-end balances reflect all paydowns and charge-offs during the year.

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2020
Commercial
Commercial and Institutional	3	$	24.3	$	24.5
Total Commercial	3	24.3		24.5
Personal
Residential Real Estate	22	16.2		16.7
Total Personal	22	16.2		16.7
Total Loans and Leases	25	$	40.5	$	41.2

Note: Period-end balances reflect all paydowns and charge-offs during the year.

TDR modifications involve extensions of term, deferrals of principal, interest rate concessions, and other modifications. Other modifications typically reflect other nonstandard terms which Northern Trust would not offer in non-troubled situations.

During the year ended December 31, 2021, the TDR modifications of loans within residential real estate were primarily deferrals of principal, extension of term, and other modifications. During the year ended December 31, 2021, TDR modifications of loans within commercial and institutional were deferrals of principal. During the year ended December 31, 2021, TDR modifications of loans within commercial real estate were primarily deferrals of principal, interest rate concessions, other modifications, and extension of term.

During the year ended December 31, 2020, the TDR modifications of loans within residential real estate were primarily extensions of term, other modifications, deferrals of principal, and interest rate concessions. During the year ended December 31, 2020, TDR modifications of loans within commercial and institutional were other modifications and extensions of term.

There were two loan or lease TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2021. The total recorded investment for these loans was approximately $5.6 million and the unpaid principal balance for these loans was approximately $5.6 million.

There were no loan or lease TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2020.

Northern Trust may obtain physical possession of real estate via foreclosure on an in-substance repossession. As of December 31, 2021 and 2020, Northern Trust held foreclosed real estate properties with a carrying value of $3.0 million and $0.7 million, respectively, as a result of obtaining physical possession. In addition, as of December 31, 2021 and 2020, Northern Trust had loans with a carrying value of $2.6 million and $7.9 million, respectively, for which formal foreclosure proceedings were in process.

TDR Relief — COVID-19. Due to the economic environment arising from the COVID-19 pandemic, there have been two forms of relief provided for classifying loans as TDRs: the Interagency Guidance (as defined below) and the CARES Act.

120 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Various banking regulators, including the Board of Governors of the Federal Reserve (Federal Reserve Board), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau, issued guidance in the April 7, 2020 Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (revised) on loan modification treatment (Interagency Guidance) pursuant to which financial institutions can apply ASC 310-40 Receivables – Troubled Debt Restructurings by Creditors. In accordance with the Interagency Guidance, a loan modification is not considered a TDR if: (a) the modification is related to COVID-19; (b) the borrower had been current (not more than 29 days past due) when the modification program was implemented; and (c) the modification includes payment deferrals for not more than 6 months.

Under section 4013 of the CARES Act, relief provided to lenders exempting certain loan modifications which would otherwise be classified as TDRs from such classification applies for loans that were not more than 30 days past due as of December 31, 2019. The TDR relief under the CARES Act applies to COVID-19-related modifications that were made from March 1, 2020 until the earlier of (a) January 1, 2022 or (b) 60 days from the date the COVID-19 national emergency officially ends.

Financial institutions may account for eligible loan modifications under the Interagency Guidance and/or the CARES Act. Northern Trust elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the COVID-19 pandemic. All other types of modifications which do not meet the CARES Act or Interagency Guidance requirements continue to be governed by existing regulations and accounting policies.

The following provides the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of December 31, 2021, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule). As of December 31, 2021, there were three residential real estate COVID-19-related loan modifications in active deferral status which totaled $2.0 million, with immaterial deferred principal and interest.

TABLE 72: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL

	DECEMBER 31, 2021
($ In Millions)	NUMBER OF COVID-19 RELATED MODIFICATIONS	LOAN VOLUME		DEFERRED PRINCIPAL AMOUNT		DEFERRED INTEREST AMOUNT
Commercial
Commercial and Institutional	73	$	199.8	$	0.1	$	1.6
Commercial Real Estate	80	390.7		—		2.4
Total Commercial	153	$	590.5	$	0.1	$	4.0
Personal
Private Client	29	$	143.1	$	—	$	1.0
Residential Real Estate	208	102.0		1.1		1.3
Total Personal	237	$	245.1	$	1.1	$	2.3
Total Loans	390	$	835.6	$	1.2	$	6.3

Northern Trust continues to accrue and recognize interest income during the loan deferral period, and hence has not moved these loans to nonaccrual or reported them as past due. Further, these loan balances continue to be assessed on a collective basis for purposes of measuring an allowance for expected credit losses. While these loans are under the COVID-19 loan modification program, this may delay the recognition of nonaccruals and charge-offs. Loans which have exited the COVID-19 loan modification program may be placed on nonaccrual status or charged-off if borrowers were unable to resume their regular payment schedule.

During the year ended December 31, 2021, 148 loans with an aggregate principal amount of $209.4 million that had been granted payment deferrals were paid off. As of December 31, 2021, less than 10% of loans that had been granted payment deferrals were either past due or in nonaccrual status.

Note 7 – Allowance for Credit Losses

Allowance and Provision for Credit Losses. The allowance for credit losses—which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposures, and specific borrower relationships—is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Northern Trust employs multiple scenarios over a reasonable and supportable period of currently two years to project future conditions. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters. The primary forecast, consistent with Northern Trust’s economic outlook publications, assumes continued economic recovery from the challenges of COVID-19, with steady growth and a falling unemployment rate over the forecast horizon. An alternative scenario is also considered, which reflects a gradual and prolonged recession that incorporates the experiences of a wider set of historical economic cycles.

The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Credit Risk Management, Treasury, Corporate Finance, the Economic Research group, and each of Northern Trust’s business units. The Credit Loss Reserve Committee determines the probability weights applied to each forecast approved by Northern Trust’s Macroeconomic Scenario Development Committee, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework.

The following table provides information regarding changes in the total allowance for credit losses.

TABLE 73: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES.

	2021
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at Beginning of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9
Charge-Offs	(0.7)		—		—		—		(0.7)
Recoveries	7.0		—		—		—		7.0
Net Recoveries (Charge-Offs)	6.3		—		—		—		6.3
Provision for Credit Losses	(58.6)		(27.0)		3.9		0.2		(81.5)
Balance at End of Period	$	138.4	$	34.1	$	11.2	$	1.0	$	184.7

	2020
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at End of Prior Period	$	104.5	$	19.9	$	—	$	—	$	124.4
Cumulative Effect Adjustment	(2.2)		8.9		6.6		0.4		13.7
Balance at Beginning of Period	102.3		28.8		6.6		0.4		138.1
Charge-Offs	(9.7)		—		—		—		(9.7)
Recoveries	6.5		—		—		—		6.5
Net Recoveries (Charge-Offs)	(3.2)		—		—		—		(3.2)
Provision for Credit Losses	91.6		32.3		0.7		0.4		125.0
Balance at End of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9

	2019
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		TOTAL
Balance at Beginning of Period	$	112.6	$	25.6	$	138.2
Charge-Offs	(6.5)		—		(6.5)
Recoveries	7.2		—		7.2
Net Recoveries (Charge-Offs)	0.7		—		0.7
Provision for Credit Losses	(8.8)		(5.7)		(14.5)
Balance at End of Period	$	104.5	$	19.9	$	124.4

122 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

There was a $81.5 million release of credit reserves for the year ended December 31, 2021, as compared to a $125.0 million provision for the year ended December 31, 2020. There were net recoveries of $6.3 million for the year ended December 31, 2021, as compared to net charge-offs of $3.2 million for the year ended December 31, 2020. The release of credit reserves during 2021 mostly related to loans and leases and undrawn loan commitments and standby letters of credit. For further detail, please see the following Allowance for the Loan and Lease Portfolio section.

For credit exposure and the associated allowance related to fee receivables, please refer to Note 18, “Revenue from Contracts with Clients.” For information related to the allowance for AFS debt securities, please refer to Note 4, “Securities.” For the allowance pertaining to all other financial assets recognized at amortized cost, which include Cash and Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, and Other Assets, please refer to the Allowance for Other Financial Assets section within this footnote.

Allowance for the Loan and Lease Portfolio. The following table provides information regarding changes in the total allowance for credit losses, including undrawn loan commitments and standby letters of credit, by segment.

TABLE 74: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES

	2021
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1
Charge-Offs	(0.3)		(0.4)		(0.7)		—		—		—
Recoveries	0.9		6.1		7.0		—		—		—
Net Recoveries (Charge-Offs)	0.6		5.7		6.3		—		—		—
Provision for Credit Losses	(37.2)		(21.4)		(58.6)		(26.2)		(0.8)		(27.0)
Balance at End of Period	$	105.6	$	32.8	$	138.4	$	31.4	$	2.7	$	34.1

	2020
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at End of Prior Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9
Cumulative Effect Adjustment	(5.9)		3.7		(2.2)		11.9		(3.0)		8.9
Balance at Beginning of Period	$	52.2	$	50.1	$	102.3	$	27.7	$	1.1	$	28.8
Charge-Offs	(6.3)		(3.4)		(9.7)		—		—		—
Recoveries	2.4		4.1		6.5		—		—		—
Net Recoveries (Charge-Offs)	(3.9)		0.7		(3.2)		—		—		—
Provision for Credit Losses	93.9		(2.3)		91.6		29.9		2.4		32.3
Balance at End of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1

	2019
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	57.6	$	55.0	$	112.6	$	21.1	$	4.5	$	25.6
Charge-Offs	(3.0)		(3.5)		(6.5)		—		—		—
Recoveries	0.9		6.3		7.2		—		—		—
Net Recoveries (Charge-Offs)	(2.1)		2.8		0.7		—		—		—
Provision for Credit Losses	2.6		(11.4)		(8.8)		(5.3)		(0.4)		(5.7)
Balance at End of Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9

The decrease to the allowance for both loans and leases and undrawn loan commitments and standby letters of credit for 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional portfolio.

2021 Annual Report | Northern Trust Corporation 123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information regarding the recorded investments in loans and leases and the allowance for credit losses for loans and leases and undrawn loan commitments and standby letters of credit by segment as of December 31, 2021 and 2020.

TABLE 75: RECORDED INVESTMENTS IN LOANS AND LEASES

	DECEMBER 31, 2021						DECEMBER 31, 2020
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Loans and Leases
Evaluated on an Individual Basis	$	92.1	$	74.5	$	166.6	$	66.6	$	65.1	$	131.7
Evaluated on a Collective Basis	18,395.3		21,918.7		40,314.0		15,195.4		18,432.6		33,628.0
Total Loans and Leases	18,487.4		21,993.2		40,480.6		15,262.0		18,497.7		33,759.7
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	10.1		—		10.1		8.8		0.3		9.1
Evaluated on a Collective Basis	95.5		32.8		128.3		133.4		48.2		181.6
Allowance Assigned to Loans and Leases	105.6		32.8		138.4		142.2		48.5		190.7
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	—		—		—		1.6		—		1.6
Evaluated on a Collective Basis	31.4		2.7		34.1		56.0		3.5		59.5
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	31.4		2.7		34.1		57.6		3.5		61.1
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	$	137.0	$	35.5	$	172.5	$	199.8	$	52.0	$	251.8

Allowance for Held to Maturity Debt Securities Portfolio. The following table provides information regarding changes in the total allowance for credit losses for HTM debt securities during 2021 and 2020.

TABLE 76: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES

	2021
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at Beginning of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3
Provision for Credit Losses	0.6		1.7		1.8		—		(0.2)		3.9
Balance at End of Period	$	1.4	$	1.9	$	3.0	$	0.1	$	4.8	$	11.2

	2020
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at End of Prior Period	$	—	$	—	$	—	$	—	$	—	$	—
Cumulative Effect Adjustment	0.8		0.3		0.9		—		4.6		6.6
Balance at Beginning of Period	0.8		0.3		0.9		—		4.6		6.6
Provision for Credit Losses	—		(0.1)		0.3		0.1		0.4		0.7
Balance at End of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3

Prior to the adoption of ASU 2016-13 on January 1, 2020, Northern Trust recognized $4.4 million of cumulative Other-Than-Temporary-Impairment (OTTI) losses on the debt securities classified as other as of December 31, 2019. For debt securities with previous OTTI losses recorded, Northern Trust applied ASU 2016-13 on a prospective basis whereby the amortized cost basis of the impaired security remains unchanged immediately before and after adopting ASU 2016-13. The allowance recorded at January 1, 2020 for HTM debt securities equals the difference between the calculated expected loss and the amount of OTTI loss previously recorded and represents the cumulative effect adjustment required upon the adoption of ASU 2016-13.

124 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The increase in the allowance attributable to HTM debt securities for 2021 was due to an increase in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by an increase in exposure.

Allowance for Other Financial Assets. The allowance for Other Financial Assets consists of the allowance for Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, and Other Assets. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and is expected to exhibit minimal to modest likelihood of loss. The allowance for credit losses related to Other Financial Assets was $1.0 million and $0.8 million as of December 31, 2021 and 2020, respectively.

Accrued Interest. Accrued interest balances are reported within Other Assets on the consolidated balance sheets. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the period the financial asset is moved from an accrual to a nonaccrual status.

The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.

TABLE 77: ACCRUED INTEREST

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Loans and Leases	$	62.6	$	55.3
Debt Securities
Held to Maturity	30.4		26.5
Available for Sale	129.7		153.6
Other Financial Assets	2.3		1.4
Total	$	225.0	$	236.8

The amount of accrued interest reversed through interest income for loans and leases was immaterial and there was no accrued interest reversed through interest income related to any other financial assets during the years ended 2021 and 2020.

Note 8 – Concentrations of Credit Risk

Concentrations of credit risk exist if a number of borrowers or other counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The fact that a credit exposure falls into one of these groups does not necessarily indicate that the credit has a higher than normal degree of credit risk. These groups are: banks and bank holding companies, residential real estate, and commercial real estate.

Banks and Bank Holding Companies. At December 31, 2021, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $1.9 billion, demand balances maintained at correspondent banks of $3.0 billion, and Securities Purchased under Agreements to Resell of $686.4 million. At December 31, 2020, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $4.4 billion, demand balances maintained at correspondent banks of $4.3 billion, and Securities Purchased under Agreements to Resell of $1.6 billion. Credit risk associated with U.S. and non-U.S. banks and bank holding companies deemed to be counterparties by Credit Risk Management is managed by the Capital Markets Credit Committee. Credit limits are established through a review process that includes an internally-prepared financial analysis, use of an internal risk rating system and consideration of external ratings from rating agencies. Northern Trust places deposits with banks that have strong internal and external credit ratings and the average life to maturity of deposits with banks is maintained on a short-term basis in order to respond quickly to changing credit conditions.

Residential Real Estate. Residential real estate loans totaled $6.3 billion at December 31, 2021 and $6.0 billion at December 31, 2020, representing 17% and 19%, respectively, of total U.S. loans and leases. Residential real estate loans consist of traditional first lien mortgages and equity credit lines, which generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Revaluations of supporting collateral are obtained upon refinancing or default or when otherwise considered warranted. Collateral revaluations for mortgages are performed by independent third parties. Of

2021 Annual Report | Northern Trust Corporation 125

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the $6.3 billion residential real estate loans at December 31, 2021, $1.6 billion were in Florida, $1.4 billion were in California, and $0.7 billion were in the greater Chicago area, with the remainder distributed throughout the other geographic regions within the U.S. served by Northern Trust. Legally binding undrawn commitments to extend residential real estate credit, which are primarily equity credit lines, totaled $665.9 million and $676.1 million at December 31, 2021 and 2020, respectively.

Commercial Real Estate. In managing its credit exposure, management has defined a commercial real estate loan as one where: (1) the borrower’s principal business activity is the acquisition or the development of real estate for commercial purposes; (2) the principal collateral is real estate held for commercial purposes, and loan repayment is expected to flow from the operation of the property; or (3) the loan repayment is expected to flow from the sale or refinance of real estate as a normal and ongoing part of the business. Unsecured lines of credit to firms or individuals engaged in commercial real estate endeavors are included without regard to the use of loan proceeds. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust. Underwriting standards generally reflect conservative loan-to-value ratios and debt service coverage requirements. Recourse to borrowers through guarantees is also commonly required. Commercial mortgage financing is provided for the acquisition or refinancing of income-producing properties. Cash flows from the properties generally are sufficient to amortize the loan. These loans are primarily located in the California, Illinois, Florida, Texas, and New York markets. Construction, acquisition and development loans provide financing for commercial real estate prior to rental income stabilization. The intent is generally that the borrower will sell the project or refinance the loan through a commercial mortgage with Northern Trust or another financial institution upon completion. At December 31, 2021, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $357.9 million and $30.0 million, respectively. At December 31, 2020, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $252.3 million and $4.5 million, respectively.

The table below provides additional detail regarding commercial real estate loan types.

TABLE 78: COMMERCIAL REAL ESTATE LOANS

	DECEMBER 31,
(In Millions)	2021		2020
Commercial Mortgages
Office	$	1,011.4	$	831.3
Apartment/ Multi-family	1,288.8		906.8
Retail	601.8		561.3
Industrial/ Warehouse	442.9		344.2
Other	516.8		409.9
Total Commercial Mortgages	3,861.7		3,053.5
Construction, Acquisition and Development Loans	464.6		504.9
Total Commercial Real Estate Loans	$	4,326.3	$	3,558.4

126 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 9 – Buildings and Equipment

A summary of Buildings and Equipment is presented in the following table.

TABLE 79: BUILDINGS AND EQUIPMENT

	DECEMBER 31, 2021
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	11.5	$	0.3	$	11.2
Buildings	217.6		136.5		81.1
Equipment	478.4		275.4		203.0
Leasehold Improvements	513.6		320.2		193.4
Total Buildings and Equipment	$	1,221.1	$	732.4	$	488.7

	DECEMBER 31, 2020
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	14.5	$	0.5	$	14.0
Buildings	257.8		163.0		94.8
Equipment	816.4		596.8		219.6
Leasehold Improvements	523.9		337.4		186.5
Total Buildings and Equipment	$	1,612.6	$	1,097.7	$	514.9

The charge for depreciation amounted to $110.8 million in 2021, $116.5 million in 2020, and $103.2 million in 2019 on the consolidated statements of income.

Note 10 – Lease Commitments

At December 31, 2021, Northern Trust was obligated under a number of non-cancelable operating leases, primarily for real estate. Certain leases contain rent escalation clauses based on market indices, renewal option clauses calling for increased rentals, and rental payments based on usage. There are no restrictions imposed by any lease agreement regarding the payment of dividends, debt financing or Northern Trust entering into further lease agreements.

The components of lease costs for the years ended December 31, 2021 and 2020 were as follows.

TABLE 80: LEASE COST COMPONENTS

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Lease Cost	$	96.2	$	119.4
Variable Lease Cost	37.3		32.7
Sublease Income	(4.5)		(4.8)
Total Lease Cost	$	129.0	$	147.3

2021 Annual Report | Northern Trust Corporation 127

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents a maturity analysis of lease liabilities as of December 31, 2021.

TABLE 81: MATURITY OF LEASE LIABILITIES

(In Millions)	MATURITY OF LEASE LIABILITIES
2022	$	93.2
2023	88.9
2024	80.3
2025	82.6
2026	61.7
Later Years	346.5
Total Lease Payments	753.2
Less: Imputed Interest	(90.1)
Present Value of Lease Liabilities	$	663.1

As of December 31, 2021, Northern Trust had commitments for operating leases in addition to the above that have not yet commenced for approximately $22 million. These operating leases are for the use of office space with lease terms of between 10 and 12 years and are expected to commence between the first half of 2022 and mid-year 2023.

Northern Trust uses its incremental borrowing rate to determine the present value of lease payments for operating leases. Operating lease right-of-use (ROU) assets and lease liabilities may include options to extend or terminate the lease only when it is reasonably certain that Northern Trust will exercise that option. Northern Trust elects not to separate lease and non-lease components of a contract for its real estate leases. The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2021 and 2020 are presented in the following table.

TABLE 82: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES

(In Millions)	LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET	DECEMBER 31, 2021		DECEMBER 31, 2020
Assets
Operating Lease Right-of-Use Asset	Other Assets	$	531.2	$	560.5
Liabilities
Operating Lease Liability	Other Liabilities	$	663.1	$	700.6

The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2021 and 2020 were as follows:

TABLE 83: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE

	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Leases
Weighted-Average Remaining Lease Term	9.6 years		10.0 years
Weighted-Average Discount Rate	2.4	%	2.5	%

The following table provides supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020.

TABLE 84: SUPPLEMENTAL CASH FLOW INFORMATION

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows	$	69.5	$	107.9
Supplemental non-cash information
Right-of-use assets obtained in exchange for new operating lease liabilities	$	58.5	$	164.8

128 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 11 – Goodwill and Other Intangibles

Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2021 and 2020, including the effect of foreign exchange rates on non-U.S.-dollar denominated balances, were as follows.

TABLE 85: GOODWILL

(In Millions)	CORPORATE & INSTITUTIONAL SERVICES		WEALTH MANAGEMENT		TOTAL
Balance at December 31, 2019(1)	$	616.4	$	80.4	$	696.8
Foreign Exchange Rates	10.3		0.1		10.4
Balance at December 31, 2020	$	626.7	$	80.5	$	707.2
Goodwill Acquired	4.2		—		4.2
Foreign Exchange Rates	(5.2)		—		(5.2)
Balance at December 31, 2021	$	625.7	$	80.5	$	706.2

(1) $9.3 million of goodwill was moved from Corporate & Institutional Services to Wealth Management for reporting purposes, to better reflect the nature of the client base.

In the second quarter of 2021, Northern Trust finalized the acquisition of Parilux Investment Technology, LLC, a provider of middle office software solutions for multi-manager investors, completing the investment in the firm that was initiated in 2018. The purchase price recorded in connection with the closing of the acquisition totaled $17.6 million. Goodwill and developed technology associated with the acquisition totaled $4.2 million and $13.4 million, respectively.

The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Corporate & Institutional Services and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2021 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2021.

Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2021 and 2020 were as follows.

TABLE 86: OTHER INTANGIBLE ASSETS

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	206.4	$	221.3
Less: Accumulated Amortization	114.8		108.7
Net Book Value	$	91.6	$	112.6

Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets. Amortization expense related to other intangible assets was $14.8 million, $16.9 million, and $16.6 million for the years ended December 31, 2021, 2020, and 2019, respectively. Amortization for the years 2022, 2023, 2024, 2025, and 2026 is estimated to be $9.9 million, $9.6 million, $9.5 million, $8.9 million, and $8.6 million respectively.

Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2021 and 2020 were as follows.

TABLE 87: CAPITALIZED SOFTWARE

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	2,982.1	$	4,337.4
Less: Accumulated Amortization	1,299.5		2,744.5
Net Book Value	$	1,682.6	$	1,592.9

Capitalized software, which is included in Other Assets on the consolidated balance sheets, consists primarily of purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use. Fees paid for the use of software licenses that are not hosted by Northern Trust are expensed as incurred.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Amortization expense, which is included in Equipment and Software on the consolidated statements of income, totaled $390.1 million in 2021, $366.9 million in 2020, and $339.1 million in 2019.

Note 12 – Deposits

The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2021.

TABLE 88: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE

	DECEMBER 31, 2021
	U.S. OFFICE		NON-U.S. OFFICES
(In Millions)	CERTIFICATES OF DEPOSIT		OTHER TIME		TOTAL
1 Year or Less	$	625.3	$	383.5	$	1,008.8
Over 1 Year to 2 Years	13.8		—		13.8
Over 2 Years to 3 Years	1.5		—		1.5
Over 3 Years to 4 Years	0.3		—		0.3
Over 4 Years to 5 Years	0.8		—		0.8
Over 5 Years	—		—		—
Total	$	641.7	$	383.5	$	1,025.2

As of December 31, 2020, there were $906.8 million of time deposits in denominations of $250,000 or greater, of which $701.4 million were Certificates of Deposit and $205.4 million were non-U.S.

Note 13 – Senior Notes and Long-Term Debt

Senior Notes. A summary of Senior Notes outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 89: SENIOR NOTES

	DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Senior Notes(1)
Fixed Rate Due Aug. 2021(2)	3.375	%	$	—	$	499.8
Fixed Rate Due Aug. 2022(2)	2.375		499.8		499.6
Fixed Rate Due Aug. 2028(3)(4)	3.65		548.5		584.4
Fixed Rate Due May 2029(3)(4)	3.15		533.9		567.9
Fixed Rate Due May 2030(3)(4)	1.95		923.3		970.7
Total Senior Notes			$	2,505.5	$	3,122.4

(1) As of December 31, 2021, debt issuance costs of $2.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Redeemable within three months of maturity.

(4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $12.5 million and $130.7 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

130 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Long-Term Debt. A summary of Long-Term Debt outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 90: LONG-TERM DEBT

			DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Subordinated Debt(1)
Fixed Rate Notes due Oct. 2025(2)(3)	3.95	%	$	796.2	$	839.8
Fixed-to-Floating Rate Notes due May 2032(4)	3.375		349.5		349.5
Total Long-Term Debt			$	1,145.7	$	1,189.3
Long-Term Debt Qualifying as Risk-Based Capital			$	799.8	$	949.7

(1) As of December 31, 2021, debt issuance costs of $0.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $46.9 million and $90.8 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

(4) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of 3.375%, payable semi-annually in arrears. From, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month LIBOR plus 1.131%, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.

Note 14 – Floating Rate Capital Debt

In January 1997, the Corporation issued $150 million of Floating Rate Capital Securities, Series A, through a statutory business trust wholly owned by the Corporation (NTC Capital I) due in January 2027. In April 1997, the Corporation also issued, through a separate wholly owned statutory business trust (NTC Capital II), $120 million of Floating Rate Capital Securities, Series B due in April 2027. The sole assets of the trusts were subordinated debentures of the Corporation that had the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. The Series A securities were issued at a discount to yield 60.5 basis points above the three-month LIBOR and the Series B securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR. The holders of the Series A and B securities were entitled to receive preferential cumulative cash distributions quarterly in arrears (based on the liquidation amount of $1,000 per security) at an interest rate equal to three-month LIBOR plus 52.0 basis points and 59.0 basis points, respectively.

On October 15, 2021, the Floating Rate Capital Securities Series A and Series B were redeemed at the principal amount plus accrued and unpaid interest and, concurrently with the redemption of the Floating Rate Capital Securities Series A and B, the corresponding subordinated debentures were fully redeemed for $278.8 million principal amount plus accrued and unpaid interest, with $154.9 million attributable to the Series A subordinated debentures and $123.9 million attributable to the Series B subordinated debentures.

The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2021 and 2020.

TABLE 91: SUBORDINATED DEBENTURES

	DECEMBER 31,
(In Millions)	2021		2020
NTC Capital I Subordinated Debentures	$	—	$	154.3
NTC Capital II Subordinated Debentures	—		123.5
Total Subordinated Debentures	$	—	$	277.8

Note 15 – Stockholders’ Equity

Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board of Directors is authorized to fix the particular designations, preferences and relative, participating, optional and other special rights and qualifications, limitations or restrictions for each series of preferred stock issued.

As of December 31, 2021, 5,000 shares of Series D Non-Cumulative Perpetual Preferred Stock (the “Series D Preferred Stock”) and 16,000 shares of Series E Non-Cumulative Perpetual Preferred Stock (the “Series E Preferred Stock”) were outstanding.

Series D Preferred Stock. As of December 31, 2021, the Corporation had issued and outstanding 500,000 depositary shares, each representing a 1/100th ownership interest in a share of Series D Preferred Stock, issued in August 2016. Equity related to Series D Preferred Stock as of December 31, 2021 and 2020 was $493.5 million. Shares of the Series D

2021 Annual Report | Northern Trust Corporation 131

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Preferred Stock have no par value and a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share).

Dividends on the Series D Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, at a rate per annum equal to (i) 4.60% from the original issue date of the Series D Preferred Stock to but excluding October 1, 2026; and (ii) a floating rate equal to three-month LIBOR plus 3.202% from and including October 1, 2026. Fixed rate dividends are payable in arrears on the first day of April and October of each year, through and including October 1, 2026, and floating rate dividends will be payable in arrears on the first day of January, April, July and October of each year, commencing on January 1, 2027.

The Series D Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after October 1, 2026. The Series D Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to October 1, 2026, within 90 days of a regulatory capital treatment event, as described in the Series D Preferred Stock Certificate of Designation.

Shares of the Series D Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series D Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.

Series E Preferred Stock. As of December 31, 2021, the Corporation had issued and outstanding 16 million depositary shares, each representing 1/1,000th ownership interest in a share of Series E Preferred Stock, issued in November 2019. Equity related to Series E Preferred Stock as of December 31, 2021 and 2020 was $391.4 million. Shares of the Series E Preferred Stock have no par value and a liquidation preference of $25,000 per share (equivalent to $25 per depositary share).

Dividends on the Series E Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, at a rate per annum equal to 4.70%. On October 19, 2021, the Corporation declared a cash dividend of $293.75 per share of Series E Preferred Stock payable on January 1, 2022, to stockholders of record as of December 15, 2021.

The Series E Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after January 1, 2025. The Series E Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to January 1, 2025, within 90 days of a regulatory capital treatment event, as described in the Series E Preferred Stock Certificate of Designation.

Shares of the Series E Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series E Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.

Common Stock. During the year ended December 31, 2021, the Corporation repurchased 2,527,544 shares of common stock, including 394,326 shares withheld related to share-based compensation, at a total cost of $267.6 million. These repurchases were made pursuant to the repurchase program authorized by the Board of Directors in July 2018. In October 2021, this program was terminated and replaced with a new repurchase program, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other incentive plans. The repurchase authorization approved by the Board of Directors has no expiration date, thus the Corporation retains the ability to repurchase when circumstances warrant and applicable regulation permits.

The average price paid per share for common stock repurchased in 2021, 2020, and 2019 was $105.90, $91.49, and $93.40, respectively.

An analysis of changes in the number of shares of common stock outstanding follows:

TABLE 92: SHARES OF COMMON STOCK

	2021	2020	2019
Balance at January 1	208,289,178	209,709,046	219,012,050
Incentive Plan and Awards	1,162,484	1,512,035	1,688,931
Stock Options Exercised	837,757	344,686	786,931
Treasury Stock Purchased	(2,527,544)	(3,276,589)	(11,778,866)
Balance at December 31	207,761,875	208,289,178	209,709,046

132 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 – Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2021, 2020, and 2019, and changes during the years then ended.

TABLE 93: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(In Millions)	NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at December 31, 2018	$	(114.9)	$	4.0	$	67.9	$	(410.7)	$	(453.7)
Net Change	228.9		(7.7)		49.9		(12.1)		259.0
Balance at December 31, 2019	$	114.0	$	(3.7)	$	117.8	$	(422.8)	$	(194.7)
Net Change	527.8		0.5		26.9		67.5		622.7
Balance at December 31, 2020	$	641.8	$	(3.2)	$	144.7	$	(355.3)	$	428.0
Net Change	(534.7)		0.8		10.5		59.8		(463.6)
Balance at December 31, 2021	$	107.1	$	(2.4)	$	155.2	$	(295.5)	$	(35.6)

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM. Refer to Note 4, “Securities” for further information.

TABLE 94: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31,	2021						2020						2019
(In Millions)	BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX
Unrealized Gains (Losses) on Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities	$	(685.0)	$	177.5	$	(507.5)	$	706.8	$	(179.3)	$	527.5	$	306.1	$	(78.0)	$	228.1
Reclassification Adjustments for Losses (Gains) Included in Net Income:
Interest Income on Debt Securities(1)	(36.6)		9.2		(27.4)		—		—		—		—		—		—
Net Losses on Debt Securities(2)	0.3		(0.1)		0.2		0.4		(0.1)		0.3		1.1		(0.3)		0.8
Net Change	$	(721.3)	$	186.6	$	(534.7)	$	707.2	$	(179.4)	$	527.8	$	307.2	$	(78.3)	$	228.9
Unrealized (Losses) Gains on Cash Flow Hedges
Foreign Exchange Contracts	$	5.6	$	(1.4)	$	4.2	$	28.9	$	(7.3)	$	21.6	$	14.9	$	(3.7)	$	11.2
Interest Rate Contracts	—		—		—		—		—		—		1.5		(0.3)		1.2
Reclassification Adjustment for (Gains) Losses Included in Net Income(3)	(4.5)		1.1		(3.4)		(28.1)		7.0		(21.1)		(26.7)		6.6		(20.1)
Net Change	$	1.1	$	(0.3)	$	0.8	$	0.8	$	(0.3)	$	0.5	$	(10.3)	$	2.6	$	(7.7)
Foreign Currency Adjustments
Foreign Currency Translation Adjustments	$	(133.8)	$	4.1	$	(129.7)	$	169.1	$	(8.3)	$	160.8	$	6.4	$	(1.6)	$	4.8
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains	0.6		(0.1)		0.5		2.1		(0.5)		1.6		(0.5)		0.1		(0.4)
Net Investment Hedge Gains (Losses)	186.6		(46.9)		139.7		(178.7)		43.2		(135.5)		59.7		(14.2)		45.5
Net Change	$	53.4	$	(42.9)	$	10.5	$	(7.5)	$	34.4	$	26.9	$	65.6	$	(15.7)	$	49.9
Pension and Other Postretirement Benefit Adjustments
Net Actuarial (Losses) Gains	$	7.9	$	0.2	$	8.1	$	47.4	$	(12.3)	$	35.1	$	(36.8)	$	7.9	$	(28.9)
Reclassification Adjustment for Losses (Gains) Included in Net Income(4)
Amortization of Net Actuarial Loss	41.4		(10.3)		31.1		42.2		(10.4)		31.8		22.4		(5.4)		17.0
Amortization of Prior Service Cost (Credit)	(1.0)		0.3		(0.7)		(0.1)		—		(0.1)		(0.2)		—		(0.2)
Settlement Loss(5)	28.3		(7.0)		21.3		0.8		(0.1)		0.7		—		—		—
Net Change	$	76.6	$	(16.8)	$	59.8	$	90.3	$	(22.8)	$	67.5	$	(14.6)	$	2.5	$	(12.1)
Total Net Change	$	(590.2)	$	126.6	$	(463.6)	$	790.8	$	(168.1)	$	622.7	$	347.9	$	(88.9)	$	259.0

(1) The before-tax reclassification adjustment out of AOCI is related to the amortization of unrealized gains (losses) on AFS debt securities that were transferred to HTM debt securities during the second quarter of 2021. Refer to Note 4, “Securities” for further information.

(2) The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on AFS debt securities is recorded in Investment Security Losses, net on the consolidated statements of income.

(3) See Note 27, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges.

(4) The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense on the consolidated statements of income.

(5) This line includes the before-tax $27.9 million U.S. Qualified Plan pension settlement charge in 2021. Refer to Note 23, “Employee Benefits” for further information.

2021 Annual Report | Northern Trust Corporation 133

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17 – Net Income per Common Share

The computations of net income per common share are presented in the following table.

TABLE 95: NET INCOME PER COMMON SHARE

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions Except Per Common Share Information)	2021		2020		2019
BASIC NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Less: Dividends on Preferred Stock	41.8		56.2		46.4
Net Income Applicable to Common Stock	1,503.5		1,153.1		1,445.8
Less: Earnings Allocated to Participating Securities	12.9		12.1		16.9
Earnings Allocated to Common Shares Outstanding	$	1,490.6	$	1,141.0	$	1,428.9
Basic Net Income Per Common Share	7.16		5.48		6.66
DILUTED NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Plus Dilutive Effect of Share-based Compensation	823,708		688,574		1,075,602
Average Common and Potential Common Shares	208,899,230		209,007,986		215,601,149
Earnings Allocated to Common and Potential Common Shares	$	1,490.6	$	1,141.1	$	1,428.9
Diluted Net Income Per Common Share	7.14		5.46		6.63

Note: For the years ended December 31, 2021, 2020, and 2019, there were no common stock equivalents excluded in the computation of diluted net income per share.

Note 18 – Revenue from Contracts with Clients

Trust, Investment, and Other Servicing Fees. Custody and Fund Administration income is comprised of revenues received from our core asset servicing business for providing custody, fund administration, and middle-office-related services, primarily to C&IS clients. Investment Management and Advisory income contains revenue received from providing asset management and related services to Wealth Management and C&IS clients and to Northern Trust sponsored funds. Securities Lending income represents revenues generated from securities lending arrangements that Northern Trust enters into as agent, mainly with C&IS clients. Other income largely consists of revenues received from providing employee benefit, investment risk and analytic and other services to C&IS and Wealth Management clients.

Other Noninterest Income. Treasury management income represents revenues received from providing cash and liquidity management services to C&IS and Wealth Management clients. The portion of Security Commissions and Trading Income that relates to revenue from contracts with clients is primarily comprised of commissions earned from providing securities brokerage services to Wealth Management and C&IS clients. The portion of Other Operating Income that relates to revenue from contracts with clients is mainly comprised of service fees for banking-related services provided to Wealth Management and C&IS clients.

Performance Obligations. Clients are typically charged monthly or quarterly in arrears based on the fee arrangement agreed to with each client; payment terms will vary depending on the client and services offered.

Substantially all revenues generated from contracts with clients for asset servicing, asset management, securities lending, treasury management and banking-related services are recognized on an accrual basis, over the period in which services are provided. The nature of Northern Trust’s performance obligations is to provide a series of distinct services in which the customer simultaneously receives and consumes the benefits of the promised services as they are performed. Fee arrangements are mainly comprised of variable amounts based on market value of client assets managed and serviced, transaction volumes, number of accounts, and securities lending volume and spreads. Revenue is recognized using the output method in an amount that reflects the consideration to which Northern Trust expects to be entitled in exchange for providing each month or quarter of service. For contracts with multiple performance obligations, revenue is allocated to each performance obligation based on the price agreed to with the client, representing its relative standalone selling price.

Security brokerage revenue is primarily represented by securities commissions received in exchange of providing trade execution related services. Control is transferred at a point in time, on the trade date of the transaction, and fees are typically variable based on transaction volumes and security types.

Northern Trust’s contracts with its clients are typically open-ended arrangements and are therefore considered to have an original duration of less than one year. Northern Trust has elected the practical expedient to not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less.

134 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents revenues disaggregated by major revenue source.

TABLE 96: REVENUE DISAGGREGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	1,917.5	$	1,674.3	$	1,636.4
Investment Management and Advisory	2,140.0		2,029.3		1,930.6
Securities Lending	76.9		88.3		87.7
Other	226.7		203.1		197.4
Total Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Other Noninterest Income
Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Treasury Management Fees	44.3		45.4		44.5
Security Commissions and Trading Income	140.2		133.2		103.6
Other Operating Income	243.9		194.0		145.5
Investment Security Losses, net	(0.3)		(0.4)		(1.4)
Total Other Noninterest Income	$	720.7	$	662.6	$	543.1
Total Noninterest Income	$	5,081.8	$	4,657.6	$	4,395.2

On the consolidated statements of income, Trust, Investment and Other Servicing Fees and Treasury Management Fees represent revenue from contracts with clients. For the year ended December 31, 2021, revenue from contracts with clients also includes $112.1 million of the $140.2 million total Security Commissions and Trading Income and $53.9 million of the $243.9 million total Other Operating Income. For the year ended December 31, 2020, revenue from contracts with clients also includes $102.4 million of the $133.2 million total Security Commissions and Trading Income and $42.8 million of the $194.0 million total Other Operating Income. For the year ended December 31, 2019, revenue from contracts with clients also includes $87.1 million of the $103.6 million total Security Commissions and Trading Income and $41.8 million of the $145.5 million total Other Operating Income.

Receivables Balances. The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2021 and 2020.

TABLE 97: CLIENT RECEIVABLES

	DECEMBER 31,
(In Millions)	2021		2020
Trust Fees Receivable, net(1)	$	925.2	$	819.3
Other	126.9		116.5
Total Client Receivables	$	1,052.1	$	935.8

(1) Trust Fees Receivable is net of a $10.9 million and $7.2 million fee receivable allowance as of December 31, 2021 and 2020, respectively.

2021 Annual Report | Northern Trust Corporation 135

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 19 – Net Interest Income

The components of Net Interest Income were as follows:

TABLE 98: NET INTEREST INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Interest Income
Loans and Leases	$	713.5	$	774.6	$	1,153.4
Securities – Taxable	667.6		812.4		1,070.7
– Non-Taxable(1)	1.5		1.4		3.8
Interest-Bearing Due from and Deposits with Banks(2)	9.1		22.4		72.4
Federal Reserve and Other Central Bank Deposits and Other	14.8		32.7		199.6
Total Interest Income	$	1,406.5	$	1,643.5	$	2,499.9
Interest Expense
Deposits(3)	$	(61.3)	$	48.4	$	488.9
Federal Funds Purchased	(0.4)		2.2		25.9
Securities Sold under Agreements to Repurchase	0.2		1.0		6.4
Other Borrowings	14.2		45.3		181.7
Senior Notes	48.3		72.7		72.6
Long-Term Debt	21.1		26.5		38.3
Floating Rate Capital Debt	1.7		4.2		8.2
Total Interest Expense	$	23.8	$	200.3	$	822.0
Net Interest Income	$	1,382.7	$	1,443.2	$	1,677.9

(1) Non-Taxable Securities represent securities that are exempt from U.S. federal income taxes.

(2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(3) Deposits were impacted by low and negative interest rates from Non-U.S. Offices Interest-Bearing Deposits, which was approximately 68% of total Interest-Bearing Deposits for the year ended December 31, 2021.

Note 20 – Other Operating Income

The components of Other Operating Income were as follows:

TABLE 99: OTHER OPERATING INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Loan Service Fees	$	66.6	$	52.5	$	48.0
Banking Service Fees	50.9		46.1		45.6
Other Income	126.4		95.4		51.9
Total Other Operating Income	$	243.9	$	194.0	$	145.5

Other Operating Income in 2021 increased from 2020, primarily due to higher banking and credit-related service charges, distributions from investments in community development projects and gains from property sales.

136 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 21 – Other Operating Expense

The components of Other Operating Expense were as follows:

TABLE 100: OTHER OPERATING EXPENSE

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Business Promotion	$	65.5	$	59.2	$	104.2
Staff Related	33.9		29.4		42.8
FDIC Insurance Premiums	14.6		11.8		9.9
Other Intangibles Amortization	14.8		16.9		16.6
Other Expenses	170.3		229.4		156.3
Total Other Operating Expense	$	299.1	$	346.7	$	329.8

Other Operating Expense in 2021 decreased from 2020 primarily due to lower charges associated with account servicing activities and a decline in other miscellaneous expenses. The account servicing activities in the prior year included a $43.4 million charge related to a corporate action processing error.

Note 22 – Income Taxes

The following table reconciles the statutory federal tax rate with the effective tax rate for the periods presented below.

TABLE 101: INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
	2021		2020		2019
Statutory Federal Tax Rate	21.0	%	21.0	%	21.0	%
Tax Exempt Income	(0.6)		(0.9)		(0.6)
Foreign Tax Rate Differential	0.1		0.7		0.2
Excess Tax Benefit Related to Share-Based Compensation	(0.4)		(0.6)		(0.9)
Tax Credits	(1.6)		(1.7)		(1.0)
Reversal of Tax Benefits Previously Recognized through Earnings	—		1.6		—
State Taxes, net	3.4		3.2		2.8
Valuation Allowance	0.6		1.6		1.5
Other	0.6		0.8		0.2
Effective Tax Rate	23.1	%	25.7	%	23.2	%

Income tax expense for the year ended December 31, 2021 and 2020 was $464.8 million and $418.3 million, representing an effective tax rate of 23.1% and 25.7%, respectively. For the year ended December 31, 2021, the decrease in the effective tax rate was primarily driven by the lower net tax impact from international operations and $26.8 million of prior-year tax expense related to the reversal of tax benefits previously recognized through earnings.

For the year ended December 31, 2020, the increase in the effective tax rate was primarily driven by $26.8 million of tax expense related to the reversal of tax benefits previously recognized through earnings and higher taxes payable on the income of the Corporation’s non-U.S. branches.

For the year ended December 31, 2019, the effective tax rate included an increase in the U.S. taxes payable on the income of the Corporation’s non-U.S. branches. This increase included a valuation allowance against deferred tax assets as management believes the foreign tax credit carryforward generated in 2019 will not be fully realized.

The Corporation files income tax returns in the U.S. federal, various state, and foreign jurisdictions. The Corporation is no longer subject to income tax examinations by U.S. federal authorities before 2013, U.S. state or local tax authorities for years before 2011, or non-U.S. tax authorities for years before 2013.

2021 Annual Report | Northern Trust Corporation 137

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Included in Other Liabilities on the consolidated balance sheets at December 31, 2021 and 2020 were $25.3 million and $22.4 million of unrecognized tax benefits, respectively. If recognized, the amounts would reduce 2021 and 2020 income tax expense by $23.9 million and $20.7 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows.

TABLE 102: UNRECOGNIZED TAX BENEFITS

(In Millions)	2021		2020		2019
Balance at January 1	$	22.4	$	25.3	$	21.9
Additions for Tax Positions Taken in the Current Year	1.2		0.9		0.9
Additions for Tax Positions Taken in Prior Years	4.2		0.4		4.0
Reductions for Tax Positions Taken in Prior Years	(2.5)		(4.2)		(1.5)
Reductions Resulting from Expiration of Statutes	—		—		—
Balance at December 31	$	25.3	$	22.4	$	25.3

It is possible that changes in the amount of unrecognized tax benefits could occur in the next 12 months due to changes in judgment related to recognition or measurement, settlements with taxing authorities, or expiration of statute of limitations. Management does not believe that future changes, if any, would have a material effect on the consolidated financial position or liquidity of Northern Trust, although they could have a material effect on operating results for a particular period.

A benefit for interest and penalties of $0.4 million, net of tax, was included in the Provision for Income Taxes for the year ended December 31, 2021. This compares to a provision for interest and penalties of $1.2 million, net of tax, and a benefit of $1.3 million, net of tax, for the year ended December 31, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the liability for the potential payment of interest and penalties totaled $9.2 million and $9.6 million, net of tax, respectively.

The components of the consolidated Provision for Income Taxes for each of the three years ended December 31 are as follows.

TABLE 103: PROVISION FOR INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Current Tax Provision:
Federal	$	241.5	$	203.0	$	216.4
State	74.0		57.2		50.7
Non-U.S.	147.3		141.7		150.5
Total	$	462.8	$	401.9	$	417.6
Deferred Tax Provision:
Federal	$	(11.7)	$	8.8	$	16.5
State	12.0		5.4		16.5
Non-U.S.	1.7		2.2		1.3
Total	$	2.0	$	16.4	$	34.3
Provision for Income Taxes	$	464.8	$	418.3	$	451.9

In addition to the amounts shown above, tax charges and benefits have been recorded directly to Stockholders’ Equity for the following.

TABLE 104: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Tax Effect of Other Comprehensive Income	$	(126.6)	$	168.1	$	88.9

Deferred taxes result from temporary differences between the amounts reported on the consolidated financial statements and the tax bases of assets and liabilities. Deferred tax assets and liabilities have been computed as follows.

138 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 105: NET DEFERRED TAX LIABILITIES

	DECEMBER 31,
(In Millions)	2021		2020
Deferred Tax Liabilities:
Lease Financing	$	7.0	$	9.0
Software Development	271.8		268.1
Depreciation and Amortization	181.3		147.0
Unrealized Gains on Securities, net	82.8		247.6
Compensation and Benefits	65.6		43.8
State Taxes, net	76.3		67.4
Other Liabilities	23.3		18.7
Gross Deferred Tax Liabilities	708.1		801.6
Deferred Tax Assets:
Allowance for Credit Losses	38.6		54.5
Tax Credit and Loss Carryforwards	68.2		55.2
Other Assets	85.4		38.4
Gross Deferred Tax Assets	192.2		148.1
Valuation Reserve	(68.2)		(55.2)
Deferred Tax Assets, net of Valuation Reserve	124.0		92.9
Net Deferred Tax Liabilities	$	584.1	$	708.7

The Corporation generated a foreign tax credit carryforward during the years ended December 31, 2021 and 2020, expiring in 2031 and 2030, respectively. A cumulative valuation allowance related to the credit carryforward of $67.8 million and $54.7 million was recorded at December 31, 2021 and 2020, respectively, as management believes the foreign tax credit carryforwards will not be fully realized.

Northern Trust had various state net operating loss carryforwards as of December 31, 2021 and 2020. The income tax benefits associated with these loss carryforwards were approximately $0.4 million as of December 31, 2021 and $0.5 million as of December 31, 2020. A valuation allowance related to the loss carryforwards of $0.4 million and $0.5 million was recorded at December 31, 2021 and 2020, respectively, as management believes the net operating losses will not be fully realized.

Note 23 – Employee Benefits

The Corporation and certain of its subsidiaries provide various benefit programs, including defined benefit pension, postretirement health care, and defined contribution plans. A description of each major plan and related disclosures are provided below.

Pension. A noncontributory qualified defined benefit pension plan covers substantially all U.S. employees of Northern Trust. Employees of certain European subsidiaries retain benefits in local defined benefit plans, although those plans are closed to new participants and to future benefit accruals. Employees continue to accrue benefits under the Swiss pension plan, which is accounted for as a defined benefit plan under U.S. GAAP.

Northern Trust also maintains a noncontributory supplemental pension plan for participants whose retirement benefits under the U.S. Qualified Plan are expected to exceed the limits imposed by federal tax law. Northern Trust has a nonqualified trust, referred to as a “Rabbi” Trust, used to hold assets designated for the funding of benefits in excess of those permitted in certain of its qualified retirement plans. This arrangement offers participants a degree of assurance for payment of benefits in excess of those permitted in the related qualified plans. As the “Rabbi” Trust assets remain subject to the claims of creditors and are not the property of the employees, they are accounted for as corporate assets and are included in Other Assets on the consolidated balance sheets. Total assets in the “Rabbi” Trust related to the nonqualified pension plan at December 31, 2021 and 2020 amounted to $117.8 million and $137.5 million, respectively. Contributions of $6.7 million and $10.6 million were made to the “Rabbi” Trust in 2021 and 2020, respectively.

The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2021, 2020, and 2019. Prior service credits are being amortized on a straight-line basis over 11 years for the U.S. Qualified Plan and prior service costs are being amortized on a straight-line basis over 10 years for the U.S. Non-Qualified Plan. Prior service credits will be amortized in full during the first half of 2022 for the U.S. Qualified Plan and prior service costs were amortized in full as of December 31, 2021 for the U.S. Non-Qualified Plan.

2021 Annual Report | Northern Trust Corporation 139

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 106: EMPLOYEE BENEFIT PLAN STATUS

	U.S. QUALIFIED PLAN (1)						NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021			2020			2021			2020			2021			2020
Accumulated Benefit Obligation	$	1,246.6		$	1,312.9		$	204.5		$	228.5		$	125.5		$	139.8
Projected Benefit Obligation	$	1,401.3		$	1,470.6		$	210.1		$	236.1		$	147.7		$	162.3
Plan Assets at Fair Value	1,708.9			1,793.7			198.7			211.5			—			—
Funded Status at December 31	$	307.6		$	323.1		$	(11.4)		$	(24.6)		$	(147.7)		$	(162.3)
Weighted-Average Assumptions:
Discount Rates	3.03		%	2.75		%	1.34		%	0.93		%	2.80		%	2.45		%
Rate of Increase in Compensation Level	4.97			4.97			1.50			1.50			4.97			4.97
Expected Long-Term Rate of Return on Assets	5.25			5.25			1.79			1.28			N/A			N/A

(1) Discount rates of 3.05% and 3.06% and expected long-term rates of return on assets of 5.25% and 5.00% were utilized at the interim remeasurement dates as of June 30, 2021 and September 30, 2021, respectively.

TABLE 107: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Net Actuarial Loss	$	273.8	$	332.4	$	40.4	$	49.0	$	86.6	$	96.3
Prior Service (Credit) Cost	(0.1)		(0.6)		0.6		2.2		—		0.1
Gross Amount in Accumulated Other Comprehensive Income	273.7		331.8		41.0		51.2		86.6		96.4
Income Tax Effect	68.7		82.1		5.2		6.4		21.7		23.9
Net Amount in Accumulated Other Comprehensive Income	$	205.0	$	249.7	$	35.8	$	44.8	$	64.9	$	72.5

TABLE 108: NET PERIODIC PENSION EXPENSE

	U.S. QUALIFIED PLAN (1)									NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021					2020		2019		2021		2020		2019		2021		2020		2019
Service Cost	$	52.3				$	47.4	$	41.6	$	2.2	$	1.9	$	2.0	$	5.3	$	4.6	$	4.1
Interest Cost	40.4					43.3		47.2		2.2		2.9		3.9		3.7		4.8		5.8
Expected Return on Plan Assets	(79.0)					(76.8)		(86.9)		(3.2)		(3.1)		(4.4)		—		—		—
Amortization:
Net Actuarial Loss	32.4					35.0		17.2		1.0		0.8		0.6		8.2		7.0		5.6
Prior Service (Credit) Cost	(0.4)					(0.4)		(0.4)		0.2		0.4		0.3		0.1		0.2		0.2
Net Periodic Pension Expense	$	45.7				$	48.5	$	18.7	$	2.4	$	2.9	$	2.4	$	17.3	$	16.6	$	15.7
Settlement Expense	27.9					—		—		0.4		0.8		—		—		—		—
Total Pension Expense	$	73.6				$	48.5	$	18.7	$	2.8	$	3.7	$	2.4	$	17.3	$	16.6	$	15.7
Weighted-Average Assumptions:
Discount Rates	2.75		%	/ 3.05	%	3.37%		4.47%		0.93%		1.40%		2.16%		2.45%		3.37%		4.47%
	/ 3.06		%	/ 3.03	%
Rate of Increase in Compensation Level				4.97		4.97		4.39		1.50		1.50		1.75		4.97		4.97		4.39
Expected Long-Term Rate of Return on Assets	5.25			/  5.00		5.25		6.00		1.28		1.72		2.39		N/A		N/A		N/A

(1) In determining the pension expense for the U.S. Qualified Plan for 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021 and an expected long-term rate of return of 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 30, 2021.

Northern Trust’s U.S. Qualified Plan provides participants the option to select lump-sum benefit payments upon retirement and termination of service. In the second quarter of 2021 it became probable that total lump-sum payments in 2021 would exceed the settlement threshold of the sum of annual service and interest cost. Northern Trust recognized settlement charges related to its U.S. Qualified Plan in the second, third, and fourth quarter of 2021, which required interim remeasurements of the U.S. Qualified Plan as of each respective quarter-end. The settlement charge represents the pro rata

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

amount of the net loss in AOCI that is charged to income based on the proportion of the Projected Benefit Obligation settled to the total Projected Benefit Obligation and amounted to a total of $27.9 million in 2021.

The components of net periodic pension expense are included in Employee Benefits expense on the consolidated statements of income.

TABLE 109: CHANGE IN PROJECTED BENEFIT OBLIGATION

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Beginning Balance	$	1,470.6	$	1,323.4	$	236.1	$	211.1	$	162.3	$	149.2
Service Cost	52.3		47.4		2.2		1.9		5.3		4.6
Interest Cost	40.4		43.3		2.2		2.9		3.7		4.8
Employee Contributions	—		—		0.6		0.6		—		—
Plan Amendment	—		—		(1.4)		(0.5)		—		—
Actuarial Loss (Gain)	(19.1)		136.5		(10.4)		19.1		(2.0)		20.4
Settlement	(132.1)		—		(9.4)		(5.4)		—		—
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)		(21.6)		(16.7)
Foreign Exchange Rate Changes	—		—		(4.3)		10.5		—		—
Ending Balance	$	1,401.3	$	1,470.6	$	210.1	$	236.1	$	147.7	$	162.3

Actuarial gains of $31.5 million in 2021 were primarily caused by increases in discount rates, while actuarial losses of $176.0 million in 2020 were primarily caused by decreases in discount rates.

TABLE 110: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	U.S. QUALIFIED PLAN		NON-U.S.PENSION PLANS		U.S. NON-QUALIFIED PLAN
2022	$	85.6	$	4.4	$	20.0
2023	94.2		4.6		18.3
2024	95.1		4.7		11.7
2025	99.0		4.8		12.3
2026	97.8		5.6		13.3
2027-2031	515.6		34.8		63.9

TABLE 111: CHANGE IN PLAN ASSETS

	U.S. QUALIFIED PLAN				NON-U.S PENSION PLANS
(In Millions)	2021		2020		2021		2020
Fair Value of Assets at Beginning of Period	$	1,793.7	$	1,601.2	$	211.5	$	190.1
Actual Return on Assets(1)	58.1		272.5		(0.8)		17.9
Employer Contributions	—		—		4.5		5.0
Employee Contributions	—		—		0.6		0.6
Settlement	(132.1)		—		(9.4)		(5.4)
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)
Foreign Exchange Rate Changes	—		—		(2.2)		7.4
Fair Value of Assets at End of Period	$	1,708.9	$	1,793.7	$	198.7	$	211.5

(1) The 2021 actual return on assets for the U.S. Qualified Plan includes a reimbursement of $0.1 million of historical investment expenses paid from the pension trust.

The minimum required and maximum remaining deductible contributions for the U.S. Qualified Plan in 2022 are estimated to be zero and $413.0 million, respectively.

The investment strategy employed for Northern Trust’s U.S. Qualified Plan utilizes a dynamic glide path based on a set of pre-approved asset allocations to return-seeking and liability-hedging assets that vary in accordance with the U.S. Qualified Plan’s projected benefit obligation funded ratio. In general, as the U.S. Qualified Plan’s projected benefit obligation funded ratio increases beyond an established threshold, the U.S. Qualified Plan’s allocation to liability-hedging assets will increase while the allocation to return-seeking assets will decrease. Conversely, a decrease in the U.S. Qualified Plan’s projected benefit obligation funded ratio beyond an established threshold will result in a decrease in the U.S. Qualified Plan’s allocation to liability-hedging assets and increase in the allocation to return-seeking assets. Liability-

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hedging assets include U.S. long credit bonds, U.S. long government bonds, and a custom completion strategy used to hedge more closely the liability duration of projected plan benefits with bond duration across all durations. Return-seeking assets include: U.S. equity, international developed equity, emerging markets equity, real estate, high yield bonds, global listed infrastructure, emerging market debt, private equity and hedge funds. During 2021, the funded ratio increased beyond the threshold and the asset allocation of the U.S. Qualified Plan was adjusted to the next stage of the glide path to allow for a greater component of liability-hedging assets.

Northern Trust utilizes an asset/liability methodology to determine the investment policies that will best meet its short and long-term objectives. The process is performed by modeling current and alternative strategies for asset allocation, funding policy and actuarial methods and assumptions. The financial modeling uses projections of expected capital market returns and expected volatility of those returns to determine alternative asset mixes having the greatest probability of meeting the U.S. Qualified Plan’s investment objectives. Risk tolerance is established through careful consideration of the U.S. Qualified Plan liabilities, funded status, and corporate financial condition. The intent of this strategy is to protect the U.S. Qualified Plan’s healthy funded status and generate returns, which in combination with minimal voluntary contributions are expected to outpace the U.S. Qualified Plan’s liability growth over the long run.

The target allocation of the U.S. Qualified Plan assets had been adjusted in March 2021 and consists of 55% U.S. long credit bonds, 15% global equities (developed and emerging markets), 10% custom completion, 5% private equity, 4% high yield bonds, 3% emerging market debt, 3% global listed infrastructure, 3% private real estate, and 2% hedge funds.

Global equity investments include common stocks that are listed on an exchange and investments in commingled funds that invest primarily in publicly traded equities. Equity investments are diversified across country, region, investment style and market capitalization. Fixed income securities held include U.S. treasury securities, corporate bonds, and investments in commingled funds that invest in a diversified blend of longer duration fixed income securities; the custom completion strategy uses U.S. treasury securities and interest rate futures (or similar instruments) to align more closely with the target hedge ratio across maturities. Diversifying investments, including private equity, hedge funds, private real estate, emerging market debt, high yield bonds, and global listed infrastructure, are used judiciously to enhance long-term returns while improving portfolio diversification. Private equity assets consist primarily of investments in limited partnerships that invest in individual companies in the form of non-public equity or non-public debt positions. Direct or co-investment in non-public stock by the U.S. Qualified Plan is prohibited. The U.S. Qualified Plan’s private equity investments are limited to 20% of each of the total limited partnership or fund of funds and the maximum allowable loss cannot exceed the commitment amount. The U.S. Qualified Plan invests in one hedge fund of funds, which invests, either directly or indirectly, in diversified portfolios of funds or other pooled investment vehicles.

Investments in private real estate, high yield bonds, emerging market debt, and global listed infrastructure are designed to provide income and added diversification.

Derivatives may be used, depending on the nature of the asset class to which they relate, to gain market exposure in an efficient and timely manner, to hedge foreign currency exposure or interest rate risk, or to alter the duration of a portfolio. There were three and five derivatives held by the U.S. Qualified Plan at December 31, 2021 and 2020, respectively.

Investment risk is measured and monitored on an ongoing basis through monthly liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Standards used to evaluate the U.S. Qualified Plan’s investment manager performance include, but are not limited to, the achievement of objectives, operation within guidelines and policy, and comparison against a benchmark. In addition, each manager of the investment funds held by the U.S. Qualified Plan is ranked against a universe of peers and compared to a benchmark. Total U.S. Qualified Plan performance analysis includes an analysis of the market environment, asset allocation impact on performance, risk and return relative to other ERISA plans, and manager impacts upon U.S. Qualified Plan performance.

The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by Northern Trust for the U.S. Qualified Plan assets measured at fair value.

Level 1 – Quoted, active market prices for identical assets or liabilities. The U.S. Qualified Plan’s Level 1 assets are comprised primarily of mutual funds and domestic common stocks. The U.S. Qualified Plan’s Level 1 investments that are exchange traded are valued at the closing price reported by the respective exchanges on the day of valuation.

Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. The U.S. Qualified Plan’s Level 2 assets are comprised of collective trust funds, corporate bonds, government obligations, and municipal and provincial bonds. The investments in collective trust funds fair values are calculated on a scheduled basis using the closing market prices and accruals of securities in the funds (total value of the funds) divided by the number of fund shares currently issued and outstanding. Redemptions of the collective trust funds occur by contract at the respective fund’s redemption date net asset value (NAV).

Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. The U.S. Qualified Plan did not hold Level 3 assets as of December 31, 2021 and 2020.

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Assets valued at fair value using NAV per share - The U.S. Qualified Plan’s assets valued at fair value using NAV per share include investments in private equity funds and a hedge fund, which invest in underlying groups of investment funds or other pooled investment vehicles that are selected by the respective funds’ investment managers. The investment funds and the underlying investments held by these investment funds are valued at fair value. In determining the fair value of the underlying investments of each fund, the fund’s investment manager or general partner takes into account the estimated value reported by the underlying funds as well as any other considerations that may, in their judgment, increase or decrease such estimated value. The investments in the private equity funds and a hedge fund are considered to be long-term investments. There are no capital withdrawal options related to the investments in the private equity funds. However, capital is occasionally distributed as underlying investments are sold. It is estimated that the current private equity investments would be liquidated over 1 to 15 years, depending on the vintage year of a particular fund. With sixty-days advance notice, the Plan’s investment in the hedge fund can be withdrawn at the next calendar quarter end.

The U.S. Qualified Plan’s assets valued at fair value using NAV per share also include investments in real estate funds, which invest in real estate assets. The investment in properties by the real estate funds are carried at fair value, which is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. The valuation plan for each real estate investment is subject to review on an annual basis which is based on either an external appraisal from appraisal firms or internal valuations prepared by the real estate fund’s investment advisor. The Plan’s investment in real estate funds are considered to be long-term investments and, with forty-five days advance notice, can be withdrawn at the next calendar quarter end to the extent the real estate funds have liquid assets.

As investments in the private equity funds, hedge fund, and real estate fund are valued at fair value using NAV per share, they are not required to be categorized within the fair value hierarchy.

While Northern Trust believes its valuation methods for U.S. Qualified Plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions could have a material effect on the computation of the estimated fair values.

The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2021 and 2020.

TABLE 112: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	17.5	$	—	$	—	$	17.5
Foreign Common Stock	0.3		—		—		0.3
Domestic Corporate Bonds	—		341.7		—		341.7
Foreign Corporate Bonds	—		60.9		—		60.9
U.S. Government Obligations	—		103.9		—		103.9
Non-U.S. Government Obligations	—		20.0		—		20.0
Domestic Municipal and Provincial Bonds	—		21.0		—		21.0
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		837.2		—		837.2
Mutual Funds	108.9		—		—		108.9
Cash and Other	46.7		—		—		46.7
Total Assets at Fair Value in the Fair Value Hierarchy	$	173.4	$	1,385.0	$	—	$	1,558.4
Assets Valued at NAV per share
Northern Trust Private Equity Funds							34.5
Northern Trust Hedge Fund							36.7
Real Estate Funds							79.3
Total Assets at Fair Value							$	1,708.9

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	13.5	$	—	$	—	$	13.5
Domestic Corporate Bonds	—		314.4		—		314.4
Foreign Corporate Bonds	—		43.6		—		43.6
U.S. Government Obligations	2.9		113.1		—		116.0
Non-U.S. Government Obligations	—		22.9		—		22.9
Domestic Municipal and Provincial Bonds	—		22.4		—		22.4
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		985.5		—		985.5
Mutual Funds	167.0		—		—		167.0
Cash and Other	7.5		—		—		7.5
Total Assets at Fair Value in the Fair Value Hierarchy	$	190.9	$	1,502.2	$	—	$	1,693.1
Assets Valued at NAV per share
Northern Trust Private Equity Funds							20.3
Northern Trust Hedge Fund							34.2
Real Estate Funds							46.1
Total Assets at Fair Value							$	1,793.7

A building block approach is employed for Northern Trust’s U.S. Qualified Plan in determining the long-term rate of return for plan assets. Historical markets and long-term historical relationships between equities, fixed income and other asset classes are studied using the widely accepted capital market principle that assets with higher volatility generate a greater return over the long-run. Current market factors such as inflation expectations and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio rate of return is established with consideration given to diversification and rebalancing. The rate is reviewed against peer data and historical returns to verify the return is reasonable and appropriate. Based on this approach and the U.S. Qualified Plan’s target asset allocation, the expected long-term rate of return on assets as of the U.S. Qualified Plan’s December 31, 2021 measurement date was set at 5.25%.

Postretirement Health Care. Northern Trust maintains an unfunded postretirement health care plan under which those employees who retire at age 55 or older under the provisions of the U.S. defined benefit plan and had attained 15 years of service as of December 31, 2011 may be eligible for subsidized postretirement health care coverage. The provisions of this health care plan may be changed further at the discretion of Northern Trust, which also reserves the right to terminate these benefits at any time.

Northern Trust changed the plan design of its post-retirement health care plan as of January 1, 2021, which resulted in the recognition of a prior service credit of $12.7 million at the time these changes were communicated to participants in August 2020. Concurrently, a further shift in population from active to inactive participants required an adjustment to the amortization period from the average remaining service period of active participants to the average life expectancy of the inactive participants. Prior service credits are being amortized on a straight-line basis over 13.9 years.

The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2021 and 2020, the net periodic postretirement benefit cost of the plan for 2021 and 2020, and the change in the accumulated postretirement benefit obligation during 2021 and 2020.

TABLE 113: POSTRETIREMENT HEALTH CARE PLAN STATUS

	DECEMBER 31,
(In Millions)	2021		2020
Accumulated Postretirement Benefit Obligation at Measurement Date:
Retirees and Dependents	$	8.7	$	13.2
Actives Eligible for Benefits	1.5		2.5
Net Postretirement Benefit Obligation	$	10.2	$	15.7

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 114: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	DECEMBER 31,
(In Millions)	2021		2020
Net Actuarial (Gain) Loss	$	(5.3)	$	(4.9)
Prior Service (Credit) Cost	(11.5)		(12.4)
Gross Amount in Accumulated Other Comprehensive Income	(16.8)		(17.3)
Income Tax Effect	(4.2)		(4.3)
Net Amount in Accumulated Other Comprehensive Income	$	(12.6)	$	(13.0)

TABLE 115: NET PERIODIC POSTRETIREMENT EXPENSE (BENEFIT)

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Service Cost	$	—	$	—	$	—
Interest Cost	0.3		0.7		1.2
Expected Return on Plan Assets	—		—		—
Amortization
Net Actuarial (Gain)	(0.2)		(0.6)		(1.1)
Prior Service (Credit) Cost	(0.9)		(0.3)		—
Net Periodic Postretirement Expense	$	(0.8)	$	(0.2)	$	0.1

TABLE 116: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Beginning Balance	$	15.7	$	28.8
Service Cost	—		—
Interest Cost	0.3		0.7
Plan Amendment	—		(12.7)
Actuarial (Gain)	(3.3)		(0.1)
Net Claims Paid	(2.5)		(1.0)
Ending Balance	$	10.2	$	15.7

Northern Trust uses the aggregate Pri-2012 mortality table with a 2012 base year and proposed future improvements under scale MP-2021, as released by the Society of Actuaries in October 2021. The assumption for future mortality improvements was updated at December 31, 2021 from the prior year’s improvement scale MP-2020.

TABLE 117: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	TOTAL POSTRETIREMENT MEDICAL BENEFITS
2022	$	1.5
2023	1.4
2024	1.3
2025	1.2
2026	1.1
2027-2031	4.3

The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 2.56% at December 31, 2021, and 2.16% at December 31, 2020. Due to the changes in the plan design as of January 1, 2021, the health care cost trend rate assumptions including the assumption for drug claims, are not currently impacting the measurement of the postretirement health care plan.

Defined Contribution Plans. The Corporation and its subsidiaries maintain various defined contribution plans covering substantially all employees. The Corporation’s contribution to the U.S. plan and to certain European-based plans includes a

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

matching component. The expense associated with defined contribution plans is charged to Employee Benefits expense on the consolidated statements of income and totaled $65.3 million in 2021, $62.9 million in 2020, and $57.6 million in 2019.

Note 24 – Share-Based Compensation Plans

Northern Trust recognizes expense for the grant-date fair value of share-based compensation granted to employees and non-employee directors.

Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented.

TABLE 118: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Restricted Stock Unit Awards	$	78.2	$	78.1	$	81.4
Stock Options	—		0.5		1.4
Performance Stock Units	17.3		12.8		25.1
Total Share-Based Compensation Expense	$	95.5	$	91.4	$	107.9
Tax Benefits Recognized	$	24.0	$	22.9	$	26.7

As of December 31, 2021, there was $71.8 million of unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Corporation’s share-based compensation plans. That cost is expected to be recognized as expense over a weighted-average period of approximately three years.

The Northern Trust Corporation 2017 Long-Term Incentive Plan (2017 Plan) is administered by the Compensation and Benefits Committee (Committee) of the Board of Directors. All employees of the Corporation and its subsidiaries and all directors of the Corporation are eligible to receive awards under the 2017 Plan. The 2017 Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards.

Beginning with grants made on February 21, 2017 under the Northern Trust Corporation 2012 Stock Plan (2012 Plan), restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements.

Grants are outstanding under the 2017 Plan, the 2012 Plan, and the Amended and Restated Northern Trust Corporation 2002 Stock Plan (2002 Plan). The 2017 Plan was approved by stockholders in April 2017. Upon approval of the 2017 Plan, no additional shares have been or will be granted under the 2012 Plan or 2002 Plan. The total number of shares of the Corporation’s common stock authorized for issuance under the 2017 Plan is 20,000,000 plus shares forfeited under the 2012 Plan and 2002 Plan. As of December 31, 2021, shares available for future grant under the 2017 Plan, including shares forfeited under the 2012 Plan and 2002 Plan, totaled 16,181,087.

The following describes Northern Trust’s share-based payment arrangements and applies to awards under the 2017 Plan, 2012 Plan and the 2002 Plan, as applicable.

Stock Options. Stock options consist of options to purchase common stock at prices not less than 100% of the fair value thereof on the date the options are granted. Options have a maximum 10 years life and generally vest and become exercisable in 1 year to 4 years after the date of grant. All options terminate at such time as determined by the Committee and as provided in the terms and conditions of the respective option grants. There were no options granted during the years ended December 31, 2021, 2020, and 2019.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2021, 2020, and 2019.

TABLE 119: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions, Except Per Share Information)	2021		2020		2019
Grant-Date Fair Value of Stock Options Vested	$	2.2	$	4.5	$	6.6
Stock Options Exercised
Intrinsic Value as of Exercise Date	41.3		13.6		35.4
Cash Received	53.8		19.5		44.0
Tax Deduction Benefits Realized	41.3		13.4		35.2

The following is a summary of changes in nonvested stock options for the year ended December 31, 2021.

TABLE 120: CHANGES IN NONVESTED STOCK OPTIONS

NONVESTED OPTIONS	SHARES	WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE PER SHARE
Nonvested at December 31, 2020	114,829	$	19.18
Granted	—	—
Vested	(114,829)	19.18
Forfeited or Cancelled	—	—
Nonvested at December 31, 2021	—	$	—

A summary of the status of stock options at December 31, 2021, and changes during the year then ended, are presented in the following table.

TABLE 121: STATUS OF STOCK OPTIONS AND CHANGES

($ In Millions Except Per Share Information)	SHARES	WEIGHTED AVERAGE EXERCISE PRICE PER SHARE		WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)	AGGREGATE INTRINSIC VALUE
Options Outstanding, December 31, 2020	1,349,925	$	66.87
Granted	—	—
Exercised	(837,757)	64.16
Forfeited, Expired or Cancelled	(2,280)	52.64
Options Outstanding, December 31, 2021	509,888	$	71.39	3.4	$	24.6
Options Exercisable, December 31, 2021	509,888	$	71.39	3.4	$	24.6

Restricted Stock Unit Awards. Restricted stock units may be granted to participants and entitles them to receive a payment in the Corporation’s common stock or cash and such other terms and conditions as the Committee deems appropriate. Each restricted stock unit provides the recipient the opportunity to receive one share of stock for each stock unit that vests. The restricted stock units granted in 2021 predominately vest at a rate equal to 25% per year for four years on the first day of the month following the month in which the grant date falls. Restricted stock unit grants totaled 846,433, 772,848, and 855,112, with weighted average grant-date fair values of $99.31, $99.58, and $91.89 per share, for the years ended December 31, 2021, 2020, and 2019, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2021, 2020, and 2019, was $89.4 million, $100.2 million, and $89.3 million, respectively.

A summary of the status of outstanding restricted stock unit awards at December 31, 2021, and changes during the year then ended, is presented in the following table.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 122: OUTSTANDING RESTRICTED STOCK UNIT AWARDS

($ In Millions)	NUMBER	AGGREGATE INTRINSIC VALUE
Restricted Stock Unit Awards Outstanding, December 31, 2020	2,145,651	$	199.8
Granted	846,433
Distributed	(944,393)
Forfeited	(46,175)
Restricted Stock Unit Awards Outstanding, December 31, 2021	2,001,516	$	239.4
Units Convertible, December 31, 2021	19,526	$	2.3

The following is a summary of nonvested restricted stock unit awards at December 31, 2021, and changes during the year then ended.

TABLE 123: NONVESTED RESTRICTED STOCK UNIT AWARDS

NONVESTED RESTRICTED STOCK UNITS	NUMBER	WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT		WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS)
Nonvested at December 31, 2020	2,125,881	$	95.61	2.1
Granted	846,433	99.31
Vested	(944,149)	94.70
Forfeited	(46,175)	98.31
Nonvested at December 31, 2021	1,981,990	$	97.56	2.3

Performance Stock Units. Each performance stock unit provides the recipient the opportunity to receive one share of the Corporation’s common stock for each stock unit based on the attainment of certain performance criteria over a three-year period. For performance stock unit awards granted in 2019, the number of units that will vest are based on the attainment of specified performance targets that are a function of average return on equity goals over a three-year period. For performance stock unit awards granted in 2020 and 2021, the number of units that will vest are subject to the attainment of specified performance targets that are a function of average return on equity goals and average return on equity performance relative to that of a performance peer group, each measured over a three-year period. For performance stock units outstanding as of December 31, 2021, the number of performance stock units that will vest ranges from 0% to 150% of the original award granted based on the achievement of both absolute and relative return on equity goals over a three-year period compared to performance targets. Distribution of the shares is then made after vesting.

Performance stock unit grants totaled 204,539, 205,847, and 213,044 for the years ended December 31, 2021, 2020, and 2019, respectively, with weighted average grant-date fair values of $97.77, $100.83, and $93.00. Performance stock units outstanding at target level performance totaled 622,817, 660,510, and 667,741 at December 31, 2021, 2020, and 2019, respectively. Performance stock units had aggregate intrinsic values of $74.5 million, $61.5 million, and $70.9 million, and weighted average remaining vesting terms of 1.0 year each at December 31, 2021, 2020, and 2019, respectively.

Non-employee Director Stock Awards. Stock units with total values of $1.5 million (13,968 units), $1.5 million (20,148 units), and $1.3 million (14,232 units) were granted to non-employee directors in 2021, 2020, and 2019, respectively, which vest or vested on the date of the annual meeting of the Corporation’s stockholders in the following years. Total expense recognized on these grants was $1.6 million, $1.6 million, and $1.4 million in 2021, 2020, and 2019, respectively. Stock units granted to non-employee directors do not have voting rights. Each stock unit entitles a director to one share of common stock at vesting, unless a director elects to defer receipt of the shares. Directors may elect to defer the payment of their annual stock unit grant and cash-based compensation until termination of services as director. Deferred cash compensation is converted into stock units representing shares of common stock of the Corporation. Distributions of deferred stock units are made in stock. For compensation deferred prior to January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in cash based on the fair value of the stock units at the time of distribution. For compensation deferred on or after January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in stock.

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Note 25 – Cash-Based Compensation Plans

Various incentive plans provide for cash incentives and bonuses to selected employees based upon accomplishment of corporate net income objectives, goals of the reporting segments and support functions, and individual performance. The provision for awards under these plans is charged to Compensation expense and totaled $377.1 million in 2021, $296.2 million in 2020, and $326.1 million in 2019.

Note 26 – Commitments and Contingent Liabilities

Off-Balance Sheet Financial Instruments, Guarantees and Other Commitments. Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. The contractual amounts of these instruments represent the maximum potential credit exposure should the instrument be fully drawn upon and the client default. To control the credit risk associated with entering into commitments and issuing letters of credit, Northern Trust subjects such activities to the same credit quality and monitoring controls as its lending activities. Northern Trust does not believe the total contractual amount of these instruments to be representative of its future credit exposure or funding requirements.

The following table provides details of Northern Trust's off-balance sheet financial instruments as of December 31, 2021 and 2020.

TABLE 124: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

	DECEMBER 31,
	2021						2020
($ In Millions)	ONE YEAR AND LESS		OVER ONE YEAR		TOTAL		ONE YEAR AND LESS		OVER ONE YEAR		TOTAL
Undrawn Commitments(1)	$	9,567.0	$	17,855.2	$	27,422.2	$	11,260.5	$	17,678.0	$	28,938.5
Standby Letters of Credit and Financial Guarantees(2)(3)	3,485.6		553.9		4,039.5		1,228.1		763.5		1,991.6
Commercial Letters of Credit	68.5		1.1		69.6		54.6		—		54.6
Custody Securities Lent with Indemnification	170,445.3		—		170,445.3		157,478.0		—		157,478.0
Total Off-Balance Sheet Financial Instruments	$	183,566.4	$	18,410.2	$	201,976.6	$	170,021.2	$	18,441.5	$	188,462.7

(1) These amounts exclude $366.6 million and $384.7 million of commitments participated to others at December 31, 2021 and 2020, respectively.

(2) These amounts include $30.5 million and $24.2 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2021 and 2020, respectively.

(3) This amount includes a $2,309.6 million guarantee to the Fixed Income Clearing Corporation (FICC) under the sponsored member program, without taking into consideration the related collateral, as of December 31, 2021. As of December 31, 2020, there was no guarantee to the FICC as Northern Trust became a sponsored member during the third quarter of 2021.

Undrawn Commitments generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements.

Standby Letters of Credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges, and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants.

Financial Guarantees are issued by Northern Trust to guarantee the performance of a client to a third party under certain arrangements.

Commercial Letters of Credit are instruments issued by Northern Trust on behalf of its clients that authorize a third party (the beneficiary) to draw drafts up to a stipulated amount under the specified terms and conditions of the agreement and other similar instruments. Commercial letters of credit are issued primarily to facilitate international trade.

Custody Securities Lent with Indemnification involves Northern Trust lending securities owned by clients to borrowers who are reviewed and approved by the Northern Trust Capital Markets Credit Committee, as part of its securities custody activities and at the direction of its clients. In connection with these activities, Northern Trust has issued indemnifications to certain clients against certain losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral required to be posted. Borrowers are required to collateralize fully securities received with cash or marketable securities. As securities are loaned, collateral is maintained at a minimum 100% of the fair value of the securities plus accrued interest. The collateral is revalued on a daily basis. The amount of securities loaned as of December 31, 2021 and 2020 subject to indemnification was $170.4 billion and $157.5 billion, respectively. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded at December 31, 2021, or 2020 related to these indemnifications.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unsettled Repurchase and Reverse Repurchase Agreements. Northern Trust enters into repurchase agreements and reverse repurchase agreements which may settle at a future date. In repurchase agreements, Northern Trust receives cash from and provides securities as collateral to a counterparty. In reverse repurchase agreements, Northern Trust advances cash to and receives securities as collateral from a counterparty. These transactions are recorded on the consolidated balance sheets on the settlement date. As of December 31, 2021 and 2020, there were no unsettled repurchase or reverse repurchase agreements.

Sponsored Member Program. Effective during the third quarter of 2021, Northern Trust became an approved Government Securities Division (GSD) netting and sponsoring member in the FICC sponsored member program, through which Northern Trust submits eligible repurchase and reverse repurchase transactions in U.S. Government securities between Northern Trust and its sponsored member clients for novation and clearing. Northern Trust may sponsor clients to clear their eligible repurchase transactions with the FICC. As a sponsoring member, Northern Trust guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC GSD’s rules. To mitigate Northern Trust’s credit exposure under this guarantee, Northern Trust obtains a security interest in its sponsored member clients’ collateral. Please refer to Note 28, “Offsetting of Assets and Liabilities” for additional information on Northern Trust’s repurchase and reverse repurchase agreements.

Clearing and Settlement Organizations. The Bank is a participating member of various cash, securities and foreign exchange clearing and settlement organizations. It participates in these organizations on behalf of its clients and on its own behalf as a result of its own activities. A wide variety of cash and securities transactions are settled through these organizations, including those involving obligations of states and political subdivisions, asset-backed securities, commercial paper, dollar placements, and securities issued by the Government National Mortgage Association.

Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities and/or to provide liquidity support in the event other members do not honor their obligations as stipulated in each clearing organization’s membership agreement. Exposure related to these agreements varies, primarily as a result of fluctuations in the volume of transactions cleared through the organizations. At December 31, 2021 and 2020, Northern Trust has not recorded any material liabilities under these arrangements as Northern Trust believes the likelihood that a clearing or settlement exchange (of which Northern Trust is a member) would become insolvent is remote. Controls related to these clearing transactions are closely monitored by management to protect the assets of Northern Trust and its clients.

Legal Proceedings. In the normal course of business, the Corporation and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions, and are subject to regulatory examinations, information-gathering requests, investigations, and proceedings, both formal and informal. In certain legal actions, claims for substantial monetary damages are asserted. In regulatory matters, claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought.

Based on current knowledge, after consultation with legal counsel and after taking into account current accruals, management does not believe that losses, fines or penalties, if any, arising from pending litigation or threatened legal actions or regulatory matters either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage will have a material adverse effect on the consolidated financial position or liquidity of the Corporation, although such matters could have a material adverse effect on the Corporation’s operating results for a particular period.

Under GAAP, (i) an event is “probable” if the “future event or events are likely to occur”; (ii) an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely”; and (iii) an event is “remote” if “the chance of the future event or events occurring is slight.”

The outcome of litigation and regulatory matters is inherently difficult to predict and/or the range of loss often cannot be reasonably estimated, particularly for matters that (i) will be decided by a jury, (ii) are in early stages, (iii) involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv) are subject to appeals or motions, (v) involve significant factual issues to be resolved, including with respect to the amount of damages, (vi) do not specify the amount of damages sought or (vii) seek very large damages based on novel and complex damage and liability legal theories. Accordingly, the Corporation cannot reasonably estimate the eventual outcome of these pending matters, the timing of their ultimate resolution or what the eventual loss, fines or penalties, if any, related to each pending matter will be.

In accordance with applicable accounting guidance, the Corporation records accruals for litigation and regulatory matters when those matters present loss contingencies that are both probable and reasonably estimable. When loss contingencies are not both probable and reasonably estimable, the Corporation does not record accruals. No material accruals have been recorded for pending litigation or threatened legal actions or regulatory matters.

For a limited number of matters for which a loss is reasonably possible in future periods, whether in excess of an accrued liability or where there is no accrued liability, the Corporation is able to estimate a range of possible loss. As

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of December 31, 2021, the Corporation has estimated the range of reasonably possible loss for these matters to be from zero to approximately $20 million in the aggregate. The Corporation’s estimate with respect to the aggregate range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

In certain other pending matters, there may be a range of reasonably possible loss (including reasonably possible loss in excess of amounts accrued) that cannot be reasonably estimated for the reasons described above. Such matters are not included in the estimated range of reasonably possible loss discussed above.

In 2015, Northern Trust Fiduciary Services (Guernsey) Limited (NTFS), an indirect subsidiary of the Corporation, was charged by a French investigating magistrate judge with complicity in estate tax fraud in connection with the administration of two trusts for which it serves as trustee. Charges also were brought against a number of other persons and entities related to this matter. In 2017, a French court found no estate tax fraud had occurred and NTFS and all other persons and entities charged were acquitted. The Public Prosecutor’s Office of France appealed the court decision and in June 2018 a French appellate court issued its opinion on the matter, acquitting all persons and entities charged, including NTFS. In January 2021, the Cour de Cassation, the highest court in France, reversed the June 2018 appellate court ruling, requiring a re-trial at the appellate court level. The re-trial proceedings in the appellate court have not yet been scheduled. As trustee, NTFS provided no tax advice and had no involvement in the preparation or filing of the challenged estate tax filings.

Visa Class B Common Shares. Northern Trust, as a member of Visa U.S.A. Inc. (Visa U.S.A.) and in connection with the 2007 restructuring of Visa U.S.A. and its affiliates and the 2008 initial public offering of Visa Inc. (Visa), received certain Visa Class B common shares. The Visa Class B common shares are subject to certain selling restrictions until the final resolution of certain litigation related to interchange fees involving Visa (the covered litigation), at which time the shares are convertible into Visa Class A common shares based on a conversion rate dependent upon the ultimate cost of resolving the covered litigation. On June 28, 2018, September 27, 2019 and December 29, 2021, Visa deposited an additional $600 million, $300 million, and $250 million, respectively, into an escrow account previously established with respect to the covered litigation. As a result of the additional contributions to the escrow account, the rate at which Visa Class B common shares will convert into Visa Class A common shares was reduced.

In September 2018, Visa reached a proposed class settlement agreement covering damage claims but not injunctive relief claims regarding the covered litigation. In December 2019, the district court granted final approval for the proposed class settlement agreement. Certain merchants have opted out of the class settlement and are pursuing claims separately, while other merchants have appealed the approval order granted by the district court. The ultimate resolution of the covered litigation, the timing for removal of the selling restrictions on the Visa Class B common shares and the rate at which such shares will ultimately convert into Visa Class A common shares are uncertain.

In June 2016 and 2015, Northern Trust recorded a $123.1 million and $99.9 million net gain on the sale of 1.1 million and 1.0 million of its Visa Class B common shares, respectively. These sales do not affect Northern Trust’s risk related to the impact of the covered litigation on the rate at which such shares will ultimately convert into Visa Class A common shares. Northern Trust continued to hold approximately 4.1 million Visa Class B common shares, which are recorded at their original cost basis of zero, as of both December 31, 2021 and 2020.

Note 27 – Derivative Financial Instruments

Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account; and as part of its risk management activities. These instruments may include foreign exchange contracts, interest rate contracts, total return swap contracts, and swaps related to the sale of certain Visa Class B common shares. Please refer to Note 1, “Summary of Significant Accounting Policies” for the significant accounting policies for derivative financial instruments.

Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date, at a specified rate of exchange. Foreign exchange contracts are entered into primarily to meet the foreign exchange needs of clients. Foreign exchange contracts are also used for trading and risk management purposes. For risk management purposes, Northern Trust uses foreign exchange contracts to reduce its exposure to changes in foreign exchange rates relating to certain forecasted non-functional currency denominated revenue and expenditure transactions, foreign-currency- denominated assets and liabilities, including debt securities and net investments in non-U.S. affiliates.

Interest rate contracts include swap and option contracts. Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Northern Trust enters into interest rate swap contracts with its clients and also may utilize such contracts to reduce or eliminate the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts may include caps, floors, collars and swaptions, and provide for the transfer or reduction of interest rate risk, typically in exchange for a fee. Northern Trust enters into option contracts primarily as a seller of interest rate protection to clients. Northern Trust receives a fee at the outset of the agreement for the assumption of the risk of an unfavorable change in interest rates. This assumed interest rate risk is then mitigated by entering into an offsetting position with an outside counterparty. Northern Trust may also purchase or enter into option contracts for risk management purposes including to reduce the exposure to changes in the cash flows of hedged assets due to changes in interest rates.

The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2021 and 2020.

TABLE 125: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021						DECEMBER 31, 2020
			FAIR VALUE						FAIR VALUE
(In Millions)	NOTIONAL VALUE		ASSET(1)		LIABILITY(2)		NOTIONAL VALUE		ASSET(1)		LIABILITY(2)
Derivatives Designated as Hedging under GAAP
Interest Rate Contracts
Fair Value Hedges	$	4,430.5	$	7.6	$	8.7	$	4,717.6	$	8.2	$	10.2
Cash Flow Hedges	—		—		—		50.0		0.1		—
Foreign Exchange Contracts
Cash Flow Hedges	3,697.9		61.8		12.6		6,554.4		15.4		104.0
Net Investment Hedges	4,161.8		183.3		12.3		3,480.3		0.1		207.7
Total Derivatives Designated as Hedging under GAAP	$	12,290.2	$	252.7	$	33.6	$	14,802.3	$	23.8	$	321.9
Derivatives Not Designated as Hedging under GAAP
Non-Designated Risk Management Derivatives
Foreign Exchange Contracts	$	109.9	$	0.2	$	0.6	$	67.7	$	0.1	$	0.1
Other Financial Derivatives(3)	738.5		—		37.5		745.4		—		35.3
Total Non-Designated Risk Management Derivatives	$	848.4	$	0.2	$	38.1	$	813.1	$	0.1	$	35.4
Client-Related and Trading Derivatives
Foreign Exchange Contracts	$	315,532.3	$	1,962.1	$	1,973.3	$	320,563.4	$	4,245.1	$	4,410.7
Interest Rate Contracts	11,570.1		132.4		90.2		10,573.3		289.2		114.8
Total Client-Related and Trading Derivatives	$	327,102.4	$	2,094.5	$	2,063.5	$	331,136.7	$	4,534.3	$	4,525.5
Total Derivatives Not Designated as Hedging under GAAP	$	327,950.8	$	2,094.7	$	2,101.6	$	331,949.8	$	4,534.4	$	4,560.9
Total Gross Derivatives	$	340,241.0	$	2,347.4	$	2,135.2	$	346,752.1	$	4,558.2	$	4,882.8
Less: Netting(4)			1,533.8		1,283.5				3,507.8		2,817.1
Total Derivative Financial Instruments			$	813.6	$	851.7			$	1,050.4	$	2,065.7

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets.

(2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets.

(3) This line includes swaps related to sales of certain Visa Class B common shares.

(4) See further detail in Note 28, "Offsetting of Assets and Liabilities."

Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded on the consolidated balance sheets. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, net of any collateral received, which is significantly less than the notional amount.

Hedging Derivative Instruments Designated under GAAP. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, and equity price. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value, cash flow or net investment hedges. Other derivatives that are entered into for risk management purposes as economic hedges are not formally designated as hedges and changes in fair value are recognized currently in Other Operating Income within the consolidated statements of income (see below section “Derivative Instruments Not Designated as Hedging under GAAP”).

Fair Value Hedges. Derivatives are designated as fair value hedges to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash Flow Hedges. Derivatives are also designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates.

There were no material gains or losses reclassified into earnings during the years ended December 31, 2021, 2020, and 2019 as a result of the discontinuance of forecasted transactions that were no longer probable of occurring. It is estimated that net losses of $4.3 million and net gains of $52.7 million will be reclassified into net income within the next twelve months relating to cash flow hedges of foreign-currency-denominated transactions and cash flow hedges of foreign-currency-denominated debt securities, respectively. As of December 31, 2021, 20 months was the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign-currency-denominated transactions was being hedged.

The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2021, 2020 and 2019.

TABLE 126: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME

(in Millions)	INTEREST INCOME						INTEREST EXPENSE						OTHER OPERATING INCOME
For the Year Ended December 31,	2021		2020		2019		2021		2020		2019		2021		2020		2019
Total amounts on the consolidated statements of income	$	1,406.5	$	1,643.5	$	2,499.9	$	23.8	$	200.3	$	822.0	$	243.9	$	194.0	$	145.5
Gains (Losses) on fair value hedges recognized on
Interest Rate Contracts
Recognized on derivatives	39.1		(66.3)		(95.9)		(161.6)		100.2		99.4		—		—		—
Recognized on hedged items	(39.1)		66.3		95.9		161.6		(100.2)		(99.4)		—		—		—
Amounts related to interest settlements on derivatives	(16.2)		(13.2)		21.2		57.1		29.9		5.2		—		—		—
Total gains (losses) recognized on fair value hedges	$	(16.2)	$	(13.2)	$	21.2	$	57.1	$	29.9	$	5.2	$	—	$	—	$	—
Gains (Losses) on cash flow hedges recognized on
Foreign Exchange Contracts
Net gains (losses) reclassified from AOCI to net income	10.5		27.4		26.4		—		—		—		(6.0)		0.2		0.8
Interest Rate Contracts
Net gains (losses) reclassified from AOCI to net income	—		0.5		(0.5)		—		—		—		—		—		—
Total gains (losses) reclassified from AOCI to net income on cash flow hedges	$	10.5	$	27.9	$	25.9	$	—	$	—	$	—	$	(6.0)	$	0.2	$	0.8

The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2021 and 2020.

TABLE 127: HEDGED ITEMS IN FAIR VALUE HEDGES

	DECEMBER 31, 2021				DECEMBER 31, 2020
(In Millions)	CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(1)		CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(2)
Available for Sale Debt Securities(3)	$	1,677.4	$	11.1	$	2,075.1	$	48.8
Senior Notes and Long-Term Subordinated Debt	2,745.6		59.5		2,745.1		221.5
Total	$	4,423.0	$	70.6	$	4,820.2	$	270.3

(1) The cumulative hedge accounting basis adjustment includes $9.6 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2021. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2021.

(2) The cumulative hedge accounting basis adjustment includes $10.4 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2020. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2020.

(3) Carrying value represents amortized cost.

Net Investment Hedges. Certain foreign exchange contracts are designated as net investment hedges to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Net investment hedge gains of $186.6 million and losses of $178.7 million were recognized in AOCI related to foreign exchange contracts for the years ended December 31, 2021 and 2020, respectively.

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Derivative Instruments Not Designated as Hedging under GAAP. Northern Trust’s derivative instruments that are not designated as hedging under GAAP include derivatives for purposes of client-related and trading activities, as well as other risk management purposes. These activities consist principally of providing foreign exchange services to clients in connection with Northern Trust’s global custody business. However, in the normal course of business, Northern Trust also engages in trading of currencies for its own account.

Non-designated risk management derivatives include foreign exchange contracts entered into to manage the foreign currency risk of non-U.S.-dollar-denominated assets and liabilities, the net investment in certain non-U.S. affiliates, commercial loans, and forecasted foreign-currency-denominated transactions. Swaps related to sales of certain Visa Class B common shares were entered into pursuant to which Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into Visa Class A common shares. Total return swaps are entered into to manage the equity price risk associated with certain investments.

Changes in the fair value of derivative instruments not designated as hedges under GAAP are recognized currently in income. The following table provides the location and amount of gains and losses recorded on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 for derivative instruments not designated as hedges under GAAP.

TABLE 128: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP

(In Millions)	DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME	AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME
		2021		2020		2019
Non-designated risk management derivatives
Foreign Exchange Contracts	Other Operating Income	$	1.2	$	6.4	$	(1.6)
Other Financial Derivatives(1)	Other Operating Income	(21.3)		(18.3)		(20.0)
Gains (Losses) from non-designated risk management derivatives		$	(20.1)	$	(11.9)	$	(21.6)
Client-related and trading derivatives
Foreign Exchange Contracts	Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Interest Rate Contracts	Security Commissions and Trading Income	15.7		22.4		12.9
Gains (Losses) from client-related and trading derivatives		$	308.3	$	312.8	$	263.8
Total gains (losses) from derivatives not designated as hedging under GAAP		$	288.2	$	300.9	$	242.2

(1) This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts.

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Note 28 – Offsetting of Assets and Liabilities

The following table provides information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 129: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts Over the Counter (OTC)	$	1,762.7	$	1,530.7	$	232.0	$	2.8	$	229.2
Interest Rate Swaps OTC	140.0		3.1		136.9		—		136.9
Total Derivatives Subject to a Master Netting Arrangement	1,902.7		1,533.8		368.9		2.8		366.1
Total Derivatives Not Subject to a Master Netting Arrangement	444.7		—		444.7		—		444.7
Total Derivatives	2,347.4		1,533.8		813.6		2.8		810.8
Securities Purchased under Agreements to Resell(2)	$	2,078.9	$	1,392.5	$	686.4	$	686.4	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts OTC	$	3,799.7	$	3,505.3	$	294.4	$	0.9	$	293.5
Interest Rate Swaps OTC	295.9		2.5		293.4		—		293.4
Interest Rate Swaps Exchange Cleared	1.6		—		1.6		—		1.6
Total Derivatives Subject to a Master Netting Arrangement	4,097.2		3,507.8		589.4		0.9		588.5
Total Derivatives Not Subject to a Master Netting Arrangement	461.0		—		461.0		—		461.0
Total Derivatives	4,558.2		3,507.8		1,050.4		0.9		1,049.5
Securities Purchased under Agreements to Resell	$	1,596.5	$	—	$	1,596.5	$	1,596.5	$	—

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.8 billion and $7.3 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Purchased under Agreements to Resell primarily relates to our involvement in FICC.

(3) Including cash collateral received from counterparties.

(4) Including financial assets accepted as collateral which are received from counterparties.

(5) Northern Trust did not possess any cash collateral that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

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The following table provides information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 130: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	1,430.1	$	1,234.5	$	195.6	$	—	$	195.6
Interest Rate Swaps OTC	98.7		48.1		50.6		—		50.6
Interest Rate Swaps Exchange Cleared	0.2		—		0.2		—		0.2
Other Financial Derivatives	37.5		0.9		36.6		—		36.6
Total Derivatives Subject to a Master Netting Arrangement	1,566.5		1,283.5		283.0		—		283.0
Total Derivatives Not Subject to a Master Netting Arrangement	568.7		—		568.7		—		568.7
Total Derivatives	2,135.2		1,283.5		851.7		—		851.7
Securities Sold under Agreements to Repurchase(2)	$	1,924.4	$	1,392.5	$	531.9	$	531.9	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	3,577.7	$	2,718.6	$	859.1	$	0.5	$	858.6
Interest Rate Swaps OTC	125.0		98.5		26.5		—		26.5
Other Financial Derivatives	35.3		—		35.3		—		35.3
Total Derivatives Subject to a Master Netting Arrangement	3,738.0		2,817.1		920.9		0.5		920.4
Total Derivatives Not Subject to a Master Netting Arrangement	1,144.8		—		1,144.8		—		1,144.8
Total Derivatives	4,882.8		2,817.1		2,065.7		0.5		2,065.2
Securities Sold under Agreements to Repurchase	$	39.8	$	—	$	39.8	$	39.8	$	—

(1) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.3 billion and $3.5 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Sold under Agreements to Repurchase primarily relates to our involvement in FICC.

(3) Including cash collateral deposited with counterparties.

(4) Including financial assets accepted as collateral which are deposited with counterparties.

(5) Northern Trust did not place any cash collateral with counterparties that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

All of Northern Trust’s securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (reverse repurchase agreements) involve the transfer of financial assets in exchange for cash subject to a right and obligation to repurchase those assets for an agreed upon amount. In the event of a repurchase failure, the cash or financial assets are available for offset. All of Northern Trust’s repurchase agreements and reverse repurchase agreements are subject to a master netting arrangement, which sets forth the rights and obligations for repurchase and offset. Under the master netting arrangement, Northern Trust is entitled to set off receivables from and collateral placed with a single counterparty against obligations owed to that counterparty. In addition, collateral held by Northern Trust can be offset against receivables from that counterparty. Northern Trust’s repurchase agreements and reverse repurchase agreements, other than those in which the counterparty is FICC, do not meet the requirements to net under GAAP.

Derivative asset and liability positions with a single counterparty can be offset against each other in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities can be further offset by cash collateral received from, and deposited with, the transacting counterparty. The basis for this view is that, upon termination of transactions subject to a master netting arrangement or similar agreement, the individual derivative receivables do not represent resources to which general creditors have rights and individual derivative payables do not represent claims that are equivalent to the claims of general creditors.

Credit risk associated with derivative instruments relates to the failure of the counterparty and the failure of Northern Trust to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains and

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losses on these instruments, net of any collateral received or deposited. The amount of credit risk will increase or decrease during the lives of the instruments as interest rates, foreign exchange rates, or equity prices fluctuate. Northern Trust’s risk is controlled by limiting such activity to an approved list of counterparties and by subjecting such activity to the same credit and quality controls as are followed in lending and investment activities. Credit Support Annexes and other similar agreements are currently in place with a number of Northern Trust’s counterparties which mitigate the aforementioned credit risk associated with derivative activity conducted with those counterparties by requiring that significant net unrealized fair value gains be supported by collateral placed with Northern Trust.

Additional cash collateral received from and deposited with derivative counterparties totaling $93.5 million and $43.4 million, respectively, as of December 31, 2021, and $111.0 million and $49.0 million, respectively, as of December 31, 2020, was not offset against derivative assets and liabilities on the consolidated balance sheets as the amounts exceeded the net derivative positions with those counterparties.

Certain master netting arrangements Northern Trust enters into with derivative counterparties contain credit risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position was $111.5 million and $1,648.2 million at December 31, 2021 and 2020, respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $84.2 million and $1,044.0 million, respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at December 31, 2021 and 2020 of $27.3 million and $604.2 million, respectively. Accelerated settlement of these liabilities would not have a material effect on the consolidated financial position or liquidity of Northern Trust.

Note 29 – Variable Interest Entities

Variable Interest Entities (VIEs) are defined within GAAP as entities which either (1) lack sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support, (2) have equity investors that lack attributes typical of an equity investor, such as the ability to make significant decisions through voting rights affecting the entity’s operations, or the obligation to absorb expected losses or the right to receive residual returns of the entity, or (3) are structured with voting rights that are disproportionate to the equity investor’s obligation to absorb losses or right to receive returns, and substantially all of the activities are conducted on behalf of the holder of the equity investment at risk with disproportionately few voting rights. Investors that finance a VIE through debt or equity interests are variable interest holders in the entity and the variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity’s economic performance and, through its variable interest, the obligation to absorb losses or the right to receive returns that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE.

Tax Credit Structures. Northern Trust invests in qualified affordable housing projects and community development entities (collectively, community development projects) that are designed to generate a return primarily through the realization of tax credits. The community development projects are formed as limited partnerships and limited liability companies in which Northern Trust invests as a limited partner/investor member through equity contributions. The economic performance of the community development projects, some of which are VIEs, is subject to the performance of their underlying investment and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development project VIEs as it lacks the power to direct the activities that most significantly impact the economic performance of the underlying investments or to affect their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners and managing members who exercise full and exclusive control of the operations of the community development project VIEs.

Northern Trust’s maximum exposure to loss as a result of its involvement with community development projects is limited to the carrying amounts of its investments, including any undrawn commitments. As of December 31, 2021 and 2020, the carrying amounts of these investments in community development projects that generate tax credits, included in Other Assets on the consolidated balance sheets, totaled $959.6 million and $919.6 million, respectively, of which $922.8 million and $874.0 million are VIEs as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, liabilities related to unfunded commitments on investments in tax credit community development projects, included in Other Liabilities on the consolidated balance sheets, totaled $289.3 million and $351.6 million, respectively, of which $280.5 million and $335.9 million related to undrawn commitments on VIEs as of December 31, 2021 and 2020, respectively.

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Northern Trust’s funding requirements are limited to its invested capital and undrawn commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of the community development projects.

Tax credits and other tax benefits attributable to community development projects totaled $87.2 million and $78.9 million, respectively, as of December 31, 2021 and 2020.

Investment Funds. Northern Trust acts as asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, Northern Trust earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP.

Some of the funds for which Northern Trust acts as asset manager comply or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds and therefore the funds are exempt from the consolidation requirements in ASC 810-10. Northern Trust voluntarily waived $287.8 million of money market mutual fund fees for the year ended December 31, 2021 related to the low-interest-rate environment and certain competitive factors. Northern Trust waived $36.4 million of money market mutual fund fees for the year ended December 31, 2020. Northern Trust does not have any contractual obligations to provide financial support to the funds. Any potential future support of the funds will be at the discretion of Northern Trust after an evaluation of the specific facts and circumstances.

Periodically, Northern Trust makes seed capital investments to certain funds. As of December 31, 2021 and 2020, Northern Trust had no seed capital investments and no unfunded commitments related to seed capital investments.

Note 30 – Pledged and Restricted Assets

Pledged Assets. Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for derivative contracts.

The following table presents Northern Trust’s pledged assets.

TABLE 131: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2021		2020
Securities
Obligations of States and Political Subdivisions	$	3.7	$	2.9
Government Sponsored Agency and Other Securities	35.6		32.5
Loans	15.3		12.1
Total Pledged Assets	$	54.6	$	47.5

Collateral required for these purposes totaled $5.6 billion and $5.7 billion at December 31, 2021 and 2020, respectively.

The following table presents the AFS debt securities pledged as collateral that are included in pledged assets.

TABLE 132: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020		DECEMBER 31, 2021		DECEMBER 31, 2020
Debt Securities
Available for Sale	$	524.1	$	33.0	$	17.6	$	27.1

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $524.1 million and $33.5 million of the pledged collateral as of December 31, 2021 and 2020, respectively.

Northern Trust accepts financial assets as collateral that it may, in some instances, be permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts.

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The following table presents the fair value of securities accepted as collateral.

TABLE 133: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Collateral that may be repledged or sold
Reverse repurchase agreements(1)	$	1,457.0	$	1,179.8
Derivative contracts	2.8		0.9
Collateral that may not be repledged or sold
Reverse repurchase agreements	650.0		500.0
Total Collateral Accepted	$	2,109.8	$	1,680.7

(1) The fair value of securities collateral that was repledged or sold totaled $1,419.0 million at December 31, 2021. There was no repledged or sold collateral as of December 31, 2020.

Restricted Assets. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement to zero percent on March 26, 2020. Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.4 billion in 2020.

Note 31 – Restrictions on Subsidiary Dividends and Loans or Advances

Various federal and state statutory provisions limit the amount of dividends the Bank can pay to the Corporation without regulatory approval. Approval of the Federal Reserve Board is required for payment of any dividend by a state-chartered bank that is a member of the Federal Reserve System if the total of all dividends declared by the bank in any calendar year would exceed the total of its retained net income (as defined by regulatory agencies) for that year combined with its retained net income for the preceding two years. In addition, a state member bank may not pay a dividend in an amount greater than its “undivided profits,” as defined, without regulatory and stockholder approval.

Under Illinois law, an Illinois state bank, prior to paying a dividend, must carry over to surplus at least one-tenth of its net profits since the date of the declaration of the last preceding dividend, until the bank’s surplus is equal to its capital. In addition, an Illinois state bank may not pay any dividend in an amount greater than its net profits then on hand, after deduction of losses and bad debts (defined as debts due to a state bank on which interest is past due and unpaid for a period of six months or more, unless the same are well secured and in the process of collection).

The Bank is also prohibited under federal law from paying any dividends if the Bank is undercapitalized or if the payment of the dividends would cause the Bank to become undercapitalized. In addition, the federal regulatory agencies are authorized to prohibit a bank or bank holding company from engaging in an unsafe or unsound banking practice. The payment of dividends could, depending on the financial condition of the Bank, be deemed to constitute an unsafe or unsound practice. The Dodd-Frank Act and Basel III impose additional restrictions on the ability of banking institutions to pay dividends (e.g., the Corporation may pay dividends only in accordance with the capital plan rules and capital adequacy standards of the Federal Reserve).

Under federal law, financial transactions by the Bank, the Corporation’s insured banking subsidiary, with the Corporation and its affiliates that are in the form of loans or extensions of credit, investments, guarantees, derivative transactions, repurchase agreements, securities lending transactions or purchases of assets, are restricted. These transactions must be on terms and conditions that are, or in good faith would be, offered to non-affiliated companies (i.e. on terms not less favorable to the Bank than market terms). Further, extensions of credit must be secured fully with qualifying collateral and are limited to 10% of the Bank’s capital and surplus for transactions with a single affiliate and to 20% of the Bank’s capital and surplus with all affiliates. Other state and federal laws may limit the transfer of funds by the Corporation’s banking subsidiaries to the Corporation and certain of its affiliates.

Note 32 – Reporting Segments and Related Information

Segment Information. Northern Trust is organized around its two client-focused reporting segments: C&IS and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management.

Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.

Equity is allocated to the reporting segments based on a variety of factors including, but not limited to, risk, regulatory considerations, and internal metrics. Allocations of capital and certain corporate expense may not be representative of levels that would be required if the segments were independent entities. The accounting policies used for management reporting are consistent with those described in Note 1, “Summary of Significant Accounting Policies.” Transfers of income and expense items are recorded at cost; there is no consolidated profit or loss on sales or transfers between reporting segments. Northern Trust’s presentations are not necessarily consistent with similar information for other financial institutions.

Revenues, expenses and average assets are allocated to C&IS and Wealth Management, with the exception of non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment, which are reported within the Other segment.

Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis.

Effective January 1, 2021, Northern Trust implemented enhancements to its FTP methodology, including enhancements impacting the allocation of net interest income between C&IS and Wealth Management. These methodology enhancements affect the results of each of these reporting segments. Due to the lack of historical information, segment results for periods ended prior to January 1, 2021 have not been revised to reflect the methodology enhancements.

Corporate & Institutional Services. C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.

Wealth Management. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

Other. Income and expenses associated with non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments are included within Other.

The following tables reflect the earnings contribution and average assets of Northern Trust’s reporting segments for the years ended December 31, 2021, 2020, and 2019.

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TABLE 134: CORPORATE & INSTITUTIONAL SERVICES RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,487.3		$	2,321.6		$	2,211.5
Foreign Exchange Trading Income	279.0			276.3			232.2
Other Noninterest Income	261.2			222.5			178.2
Total Noninterest Income	3,027.5			2,820.4			2,621.9
Net Interest Income(1)	637.2			665.5			918.7
Revenue(1)	3,664.7			3,485.9			3,540.6
Provision for Credit Losses	(33.8)			38.1			1.9
Noninterest Expense	2,863.0			2,752.7			2,605.5
Income before Income Taxes(1)	835.5			695.1			933.2
Provision for Income Taxes(1)	194.1			174.4			219.4
Net Income	$	641.4		$	520.7		$	713.8
Percentage of Consolidated Net Income	41		%	43		%	48		%
Average Assets	$	120,883.2		$	104,790.6		$	87,557.1

(1) Financial measures stated on an FTE basis.

TABLE 135: WEALTH MANAGEMENT RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,873.8		$	1,673.4		$	1,640.6
Foreign Exchange Trading Income	13.6			14.1			18.7
Other Noninterest Income	188.2			168.0			131.1
Total Noninterest Income	2,075.6			1,855.5			1,790.4
Net Interest Income(1)	781.1			812.1			792.0
Revenue(1)	2,856.7			2,667.6			2,582.4
Provision for Credit Losses	(47.7)			86.9			(16.4)
Noninterest Expense	1,651.1			1,559.7			1,531.6
Income before Income Taxes(1)	1,253.3			1,021.0			1,067.2
Provision for Income Taxes(1)	317.0			291.8			271.1
Net Income	$	936.3		$	729.2		$	796.1
Percentage of Consolidated Net Income	61		%	60		%	53		%
Average Assets	$	35,480.0		$	32,020.5		$	29,994.3

(1) Financial measures stated on an FTE basis.

TABLE 136: OTHER RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income	$	(21.3)		$	(18.3)		$	(17.1)
Net Interest Income(1)	—			—			—
Revenue(1)	(21.3)			(18.3)			(17.1)
Noninterest Expense	21.8			35.8			6.4
Income (Loss) before Income Taxes(1)	(43.1)			(54.1)			(23.5)
Provision (Benefit) for Income Taxes(1)	(10.7)			(13.5)			(5.8)
Net Income	$	(32.4)		$	(40.6)		$	(17.7)
Percentage of Consolidated Net Income	(2)		%	(3)		%	(1)		%
Average Assets	$	—		$	—		$	—

(1) Financial measures stated on an FTE basis.

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TABLE 137: CONSOLIDATED FINANCIAL INFORMATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Foreign Exchange Trading Income	292.6		290.4		250.9
Other Noninterest Income	428.1		372.2		292.2
Total Noninterest Income	5,081.8		4,657.6		4,395.2
Net Interest Income(1)	1,418.3		1,477.6		1,710.7
Revenue(1)	6,500.1		6,135.2		6,105.9
Provision for Credit Losses	(81.5)		125.0		(14.5)
Noninterest Expense	4,535.9		4,348.2		4,143.5
Income before Income Taxes(1)	2,045.7		1,662.0		1,976.9
Provision for Income Taxes(1)	500.4		452.7		484.7
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Average Assets	$	156,363.2	$	136,811.1	$	117,551.4

(1) Financial measures stated on an FTE basis. The consolidated figures include $35.6 million, $34.4 million, and $32.8 million, of FTE adjustments for 2021, 2020, and 2019, respectively.

Geographic Area Information. Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source income and assets. Non-U.S. source income and assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision revenues, expenses and assets between U.S. and non-U.S.-domiciled customers. Therefore, certain subjective estimates and assumptions have been made to allocate revenues, expenses and assets between U.S. and non-U.S. operations.

For purposes of this disclosure, all foreign exchange trading income has been allocated to non-U.S. operations. Interest expense is allocated to non-U.S. operations based on specifically matched or pooled funding. Allocations of indirect noninterest expenses, when made, are based on various methods such as time, space, and number of employees.

The following table summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral.

TABLE 138: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE

(In Millions)	TOTAL ASSETS		TOTAL REVENUE(1)		INCOME BEFORE INCOME TAXES		NET INCOME
2021
Non-U.S.	$	38,555.3	$	2,017.5	$	569.4	$	426.7
U.S.	145,334.5		4,447.0		1,440.7		1,118.6
Total	$	183,889.8	$	6,464.5	$	2,010.1	$	1,545.3
2020
Non-U.S.	$	38,393.8	$	1,737.6	$	404.0	$	302.6
U.S.	131,610.1		4,363.2		1,223.6		906.7
Total	$	170,003.9	$	6,100.8	$	1,627.6	$	1,209.3
2019
Non-U.S.	$	27,888.6	$	1,889.5	$	600.0	$	451.0
U.S.	108,939.8		4,183.6		1,344.1		1,041.2
Total	$	136,828.4	$	6,073.1	$	1,944.1	$	1,492.2

(1) Total revenue is comprised of net interest income and noninterest income.

162 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 33 – Regulatory Capital Requirements

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory authorities. Under these requirements, banks must maintain specific risk-based and leverage ratios in order to be classified as “well-capitalized.” The regulatory capital requirements impose certain restrictions upon banks that meet minimum capital requirements but are not “well-capitalized” and obligate the federal bank regulatory authorities to take “prompt corrective action” with respect to banks that do not maintain such minimum ratios. Such prompt corrective action could have a direct material effect on a bank’s financial statements.

As of December 31, 2021 and 2020, the Bank had capital ratios above the levels required for classification as a “well-capitalized” institution and had not received any regulatory notification of a lower classification. As a result of the stress test results published by the Federal Reserve Board on June 25, 2020, Northern Trust’s stress capital buffer requirement for the 2020 Capital Plan cycle was set at 2.5%. The 2020 stress capital buffer became effective October 1, 2020, and resulted in a Common Equity Tier 1 capital ratio minimum requirement of 7.0% inclusive of this buffer. The results of the 2021 stress test, published by the Federal Reserve Board on June 24, 2021, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining in effect for the 2021 Capital Plan cycle, which began on October 1, 2021.

Additionally, Northern Trust’s subsidiary banks located outside the U.S. are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2021 and 2020, Northern Trust’s non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements. There were no conditions or events since December 31, 2021, that management believes have adversely affected the capital categorization of any Northern Trust subsidiary bank.

2021 Annual Report | Northern Trust Corporation 163

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements.

TABLE 139: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS

	DECEMBER 31, 2021								DECEMBER 31, 2020
($ In Millions)	STANDARDIZED APPROACH				ADVANCED APPROACH				STANDARDIZED APPROACH				ADVANCED APPROACH
	BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO
Common Equity Tier 1 Capital
Northern Trust Corporation	$	10,277.1	11.9	%	$	10,277.1	13.2	%	$	9,962.2	12.8	%	$	9,962.2	13.4	%
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	5,578.7		6.5		4,964.5		6.5		4,994.4		6.5		4,717.1		6.5
Tier 1 Capital
Northern Trust Corporation	11,142.2		12.9		11,142.2		14.3		10,822.2		13.9		10,822.2		14.5
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	5,177.6		6.0		4,668.4		6.0		4,659.7		6.0		4,467.6		6.0
The Northern Trust Company	6,866.1		8.0		6,110.2		8.0		6,147.0		8.0		5,805.6		8.0
Total Capital
Northern Trust Corporation	12,126.8		14.1		11,942.0		15.3		12,085.7		15.6		11,825.8		15.9
The Northern Trust Company	11,158.4		13.0		10,973.7		14.4		11,123.1		14.5		10,863.3		15.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	8,629.3		10.0		7,780.7		10.0		7,766.2		10.0		7,446.0		10.0
The Northern Trust Company	8,582.6		10.0		7,637.8		10.0		7,683.7		10.0		7,257.0		10.0
Tier 1 Leverage
Northern Trust Corporation	11,142.2		6.9		11,142.2		6.9		10,822.2		7.6		10,822.2		7.6
The Northern Trust Company	10,315.7		6.4		10,315.7		6.4		10,003.3		7.0		10,003.3		7.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	8,019.5		5.0		8,019.5		5.0		7,105.0		5.0		7,105.0		5.0
Supplementary Leverage(1)
Northern Trust Corporation	N/A		N/A		11,142.2		8.2		N/A		N/A		10,822.2		8.6
The Northern Trust Company	N/A		N/A		10,315.7		7.6		N/A		N/A		10,003.3		7.7
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	N/A		N/A		4,081.7		3.0		N/A		N/A		3,883.4		3.0

(1) In November 2019, the Federal Reserve Board and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including the Corporation and the Bank, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020.

Further, on April 1, 2020, the Federal Reserve Board issued an interim final rule that requires bank holding companies, including the Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and expired on April 1, 2021.

On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The Bank did not elect to take this deduction.

The supplementary leverage ratios at December 31, 2021 and December 31, 2020 for the Corporation and the Bank reflect the impact of these final rules.    

Under the final Basel III rules, the Corporation and the Bank are required to calculate and publicly disclose risk-based capital ratios using two methodologies: an advanced approach and a standardized approach. Under the advanced approach, credit risk weighted assets (RWA) are based on internal credit models and parameters. Additionally, the advanced approach incorporates operational risk RWA. Under the standardized approach, RWA are based on supervisory prescribed risk weights that are primarily dependent on counterparty type and asset class.

Pursuant to the Federal Reserve Board's implementation in the final Basel III rules of a provision of the Dodd-Frank Act, the capital adequacy of the Corporation and the Bank is assessed based on the lower of the advanced approach or standardized approach capital ratios.

164 2021 Annual Report | Northern Trust Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 34 – Northern Trust Corporation (Corporation only)

Condensed financial information is presented in the following tables. Investments in wholly-owned subsidiaries are carried on the equity method of accounting.

TABLE 140: CONDENSED BALANCE SHEETS

	DECEMBER 31,
(In Millions)	2021		2020
ASSETS
Cash on Deposit with Subsidiary Bank	$	1,731.7	$	2,516.0
Advances to Wholly-Owned Subsidiaries – Banks	2,810.0		2,670.0
Investments in Wholly-Owned Subsidiaries – Banks	11,120.9		10,799.9
– Nonbank	185.3		172.8
Other Assets	890.2		900.9
Total Assets	$	16,738.1	$	17,059.6
LIABILITIES
Senior Notes	$	2,505.5	$	3,122.4
Long-Term Debt	1,145.7		1,189.3
Floating Rate Capital Debt	—		277.8
Other Liabilities	1,070.1		781.8
Total Liabilities	4,721.3		5,371.3
STOCKHOLDERS’ EQUITY
Preferred Stock	884.9		884.9
Common Stock	408.6		408.6
Additional Paid-in Capital	939.3		963.6
Retained Earnings	13,117.3		12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)		428.0
Treasury Stock	(3,297.7)		(3,204.5)
Total Stockholders’ Equity	12,016.8		11,688.3
Total Liabilities and Stockholders’ Equity	$	16,738.1	$	17,059.6

TABLE 141: CONDENSED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
OPERATING INCOME
Dividends – Bank Subsidiaries	$	751.1	$	900.0	$	2,024.1
– Nonbank Subsidiaries	8.3		—		0.4
Intercompany Interest and Other Charges	20.1		46.5		115.1
Interest and Other Income	32.3		19.1		20.2
Total Operating Income	811.8		965.6		2,159.8
OPERATING EXPENSES
Interest Expense	71.3		104.2		121.6
Other Operating Expenses	36.7		26.2		28.6
Total Operating Expenses	108.0		130.4		150.2
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	703.8		835.2		2,009.6
Benefit for Income Taxes	25.7		28.2		24.3
Income before Equity in Undistributed Net Income of Subsidiaries	729.5		863.4		2,033.9
Equity in Undistributed Net Income of Subsidiaries – Banks	803.3		326.0		(559.9)
– Nonbank	12.5		19.9		18.2
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Preferred Stock Dividends	41.8		56.2		46.4
Net Income Applicable to Common Stock	$	1,503.5	$	1,153.1	$	1,445.8

2021 Annual Report | Northern Trust Corporation 165

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 142: CONDENSED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Undistributed Net Income of Subsidiaries	(815.8)		(345.9)		541.7
Change in Prepaid Expenses	0.1		398.5		(400.4)
Change in Accrued Income Taxes	2.2		3.7		114.1
Other Operating Activities, net	236.6		300.3		141.9
Net Cash Provided by Operating Activities	968.4		1,565.9		1,889.5
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities	—		—		—
Investments in and Advances to Subsidiaries, net	(140.0)		(800.0)		540.0
Acquisition of a Business, Net of Cash Received	—		—		—
Other Investing Activities, net	5.1		1.8		3.7
Net Cash (Used in) Provided by Investing Activities	(134.9)		(798.2)		543.7
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes	—		993.2		498.0
Repayments of Senior Notes	(500.0)		(508.6)		—
Repayment of Floating Rate Capital Debt	(278.8)		—		—
Redemption of Preferred Stock - Series C	—		(400.0)		—
Proceeds from Issuance of Preferred Stock - Series E	—		—		392.5
Treasury Stock Purchased	(267.6)		(299.8)		(1,100.2)
Net Proceeds from Stock Options	53.8		19.5		44.0
Cash Dividends Paid on Common Stock	(583.3)		(584.6)		(529.7)
Cash Dividends Paid on Preferred Stock	(41.8)		(45.9)		(46.4)
Other Financing Activities, net	(0.1)		15.4		0.9
Net Cash Used In Financing Activities	(1,617.8)		(810.8)		(740.9)
Net Change in Cash on Deposit with Subsidiary Bank	(784.3)		(43.1)		1,692.3
Cash on Deposit with Subsidiary Bank at Beginning of Year	2,516.0		2,559.1		866.8
Cash on Deposit with Subsidiary Bank at End of Year	$	1,731.7	$	2,516.0	$	2,559.1

166 2021 Annual Report | Northern Trust Corporation

ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A – CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of December 31, 2021, the Corporation’s management, with the participation of the Corporation’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by the Corporation in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Based on such evaluation, such officers have concluded that, as of December 31, 2021, the Corporation’s disclosure controls and procedures are effective.

Management’s Report on Internal Control Over Financial Reporting

Management of the Corporation is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) to provide reasonable assurance to the Corporation’s management and Board of Directors regarding the preparation of reliable published financial statements. This internal control includes monitoring mechanisms, and actions are taken to correct deficiencies identified.

Management assessed the Corporation’s internal control over financial reporting as of December 31, 2021, based on the criteria for effective internal control over financial reporting described in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concluded that, as of December 31, 2021, the Corporation maintained effective internal control over financial reporting. Additionally, KPMG LLP, the independent registered public accounting firm that audited the Corporation’s consolidated financial statements as of, and for the year ended, December 31, 2021, included in this Annual Report on Form 10-K, has issued an attestation report on the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2021.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Corporation’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15 and 15d-15 under the Exchange Act during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

2021 Annual Report | Northern Trust Corporation 167

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Northern Trust Corporation:

Opinion on Internal Control Over Financial Reporting

We have audited Northern Trust Corporation and subsidiaries’ (the Corporation) internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Corporation as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements), and our report dated February 28, 2022 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Corporation’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Corporation’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Chicago, Illinois

February 28, 2022

168 2021 Annual Report | Northern Trust Corporation

ITEM 9B – OTHER INFORMATION

Not applicable.

ITEM 9C – DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

ITEM 10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information called for by this item is incorporated by reference to “Supplemental Item – Information About Our Executive Officers” in Part I of this Annual Report on Form 10-K, as well as the following sections of the Corporation’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders: “Item 1 – Election of Directors,” “Information about the Nominees for Director,” “Security Ownership by Directors and Executive Officers,” “Corporate Governance – Code of Business Conduct and Ethics,” “Corporate Governance – Director Nominations and Qualifications and Proxy Access,” “Board and Board Committee Information – Audit Committee” and “Board and Board Committee Information – Board Committees.”

ITEM 11 – EXECUTIVE COMPENSATION

The information called for by this item is incorporated herein by reference to the “Compensation Discussion and Analysis,” “Compensation and Benefits Committee Report,” “Executive Compensation,” and “Director Compensation” sections of the Corporation’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders.

ITEM 12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information called for by this item is incorporated herein by reference to the “Security Ownership by Directors and Executive Officers,” “Security Ownership of Certain Beneficial Owners,” and “Equity Compensation Plan Information” sections of the Corporation’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders.

ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information called for by this item is incorporated herein by reference to the “Board and Board Committee Information,” “Corporate Governance – Director Independence” and the “Corporate Governance – Related Person Transactions Policy” sections of the Corporation’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders.

ITEM 14 – PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information called for by this item is incorporated herein by reference to the “Audit Matters” section of the Corporation’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders.

2021 Annual Report | Northern Trust Corporation 169

PART IV

ITEM 15 – EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15(a)(1) AND (2) – NORTHERN TRUST CORPORATION AND SUBSIDIARIES LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

The following financial statements of the Corporation and its Subsidiaries included in Item 8, “Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K are incorporated herein by reference.

For Northern Trust Corporation and Subsidiaries:

Consolidated Balance Sheets - December 31, 2021 and 2020

Consolidated Statements of Income - Years Ended December 31, 2021, 2020, and 2019

Consolidated Statements of Comprehensive Income - Years Ended December 31, 2021, 2020, and 2019

Consolidated Statements of Changes in Stockholders’ Equity - Years Ended December 31, 2021, 2020, and 2019

Consolidated Statements of Cash Flows - Years Ended December 31, 2021, 2020, and 2019

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (KPMG LLP, Chicago, IL, Auditor Firm ID: 185)

Financial statement schedules have been omitted for the reason that they are not required or are not applicable.

ITEM 15(a)(3) – EXHIBITS

Exhibit Number	Description
3.1	Restated Certificate of Incorporation of Northern Trust Corporation, as amended to date (incorporated herein by reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K filed April 19, 2006).
3.2	Certificate of Designation of Series D Non-Cumulative Perpetual Preferred Stock of Northern Trust Corporation, dated August 4, 2016 (incorporated herein by reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K filed August 8, 2016).
3.3	Certificate of Designation of Series E Non-Cumulative Perpetual Preferred Stock of Northern Trust Corporation, dated October 31, 2019 (incorporated herein by reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K filed November 5, 2019).
3.4	By-laws of Northern Trust Corporation, as amended February 19, 2019 (incorporated herein by reference to Exhibit 3.1 to the Corporation’s Current Report on Form 8-K filed February 19, 2019).
4.1	Deposit Agreement, dated August 8, 2016, among Northern Trust Corporation, Wells Fargo Bank, N.A., as depositary (which, effective February 1, 2018, was succeeded by Equiniti Trust Company), and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.2 to the Corporation’s Current Report on Form 8-K filed August 8, 2016).
4.2	Deposit Agreement, dated November 5, 2019, among Northern Trust Corporation, Equiniti Trust Company, as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.2 to the Corporation’s Current Report on Form 8-K filed November 5, 2019).
4.3	Description of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
4.4	Certain instruments defining the rights of the holders of long-term debt of the Corporation and certain of its subsidiaries, none of which authorize a total amount of indebtedness in excess of 10% of the total assets of the Corporation and its subsidiaries on a consolidated basis, have not been filed as exhibits. The Corporation hereby agrees to furnish a copy of any of these agreements to the SEC upon request.

170 2021 Annual Report | Northern Trust Corporation

Exhibit Number	Description
10.1**	Deferred Compensation Plans Trust Agreement, dated May 11, 1998, between Northern Trust Corporation and Harris Trust and Savings Bank as Trustee (which, effective August 31, 1999, was succeeded by U.S. Trust Company, N.A., which effective June 1, 2009, was succeeded by Evercore Trust Company, N.A., and, which, effective October 19, 2017, was succeeded by Newport Trust Company) regarding the Supplemental Employee Stock Ownership Plan for Employees of The Northern Trust Company, the Supplemental Thrift-Incentive Plan for Employees of The Northern Trust Company, the Supplemental Pension Plan for Employees of The Northern Trust Company, and the Northern Trust Corporation Deferred Compensation Plan (incorporated herein by reference to Exhibit 10(iv) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1998).
(i)**	Amendment, dated August 31, 1999 (incorporated herein by reference to Exhibit 10(vi) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999).
(ii)**	Second Amendment, dated as of May 16, 2000 (incorporated herein by reference to Exhibit 10(v) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000).
10.2**	Northern Trust Corporation Supplemental Employee Stock Ownership Plan, as amended and restated effective as of January 1, 2008 (incorporated herein by reference to Exhibit 10(vi) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008).
10.3**	Northern Trust Corporation Supplemental Thrift-Incentive Plan, as amended and restated effective as of January 1, 2008 (incorporated herein by reference to Exhibit 10(vii) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008).
(i)**	Amendment Number One, dated October 29, 2009 and effective January 1, 2010 (incorporated herein by reference to Exhibit 10(vi)(1) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009).
(ii)**	Amendment Number Two, dated August 6, 2015 and effective January 1, 2015 (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015).
10.4**	Northern Trust Corporation Supplemental Pension Plan, as amended and restated effective January 1, 2009 (incorporated herein by reference to Exhibit 10(viii) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008).
10.5**	Northern Trust Corporation Deferred Compensation Plan, as amended and restated effective as of October 18, 2021 (incorporated herein by reference to Exhibit 10.2 to the Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021).
10.6**	Amended and Restated Northern Trust Corporation 2002 Stock Plan, effective as of January 1, 2008 (incorporated herein by reference to Exhibit 10(xiv) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008).
(i)**	Form of 2012 Executive Stock Option Award Terms and Conditions (incorporated herein by reference to Exhibit 10.7(xix) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011).
10.7**	Northern Trust Corporation 2012 Stock Plan (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Current Report on Form 8-K filed April 19, 2012).
(i)**	Form of Director Stock Unit Agreement (incorporated herein by reference to Exhibit 10(iii) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012).
(ii)**	Form of Director Prorated Stock Agreement (incorporated herein by reference to Exhibit 10(iv) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012).
(iii)**	Form of New Director Stock Unit Agreement (incorporated herein by reference to Exhibit 10(v) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012).
(iv)**	Form of 2012 Executive Stock Option Terms and Conditions (incorporated herein by reference to Exhibit 10(i) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012).
(v)**	Form of 2013 Executive Stock Option Terms and Conditions (incorporated herein by reference to Exhibit 10.7(xii) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012).

2021 Annual Report | Northern Trust Corporation 171

Exhibit Number	Description
(vi)**	Form of 2014 Executive Stock Option Terms and Conditions (incorporated herein by reference to Exhibit 10.7(xi) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013).
(vii)**	Form of 2017 Stock Option Award Terms and Conditions, as amended (incorporated herein by reference to Exhibit 10.7(x) to the Corporation's Annual Report on Form 10-K for the year ended December 31, 2017).
10.8**	Northern Trust Corporation Management Performance Plan, as amended and restated effective October 16, 2012 (incorporated herein by reference to Exhibit 10(viii) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012).
10.9**	Northern Trust Corporation 1997 Stock Plan for Non-Employee Directors (incorporated herein by reference to Exhibit 10(xix) to the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998).
10.10**	Northern Trust Corporation 1997 Deferred Compensation Plan for Non-Employee Directors, as amended and restated effective as of July 15, 2014 (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014).
10.11**	Northern Trust Corporation 2018 Deferred Compensation Plan for Non-Employee Directors (incorporated herein by reference to Exhibit 10.11 to the Corporation's Annual Report on Form 10-K for the year ended December 31, 2017).
10.12**	Northern Trust Corporation Key Officer Change in Control Severance Plan (incorporated herein by reference to Exhibit 10.2 to the Corporation’s Current Report on Form 8-K filed April 28, 2017).
10.13**	Northern Trust Corporation Executive Change in Control Severance Plan (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Current Report on Form 8-K filed April 28, 2017).
10.14**	Form of Non-Solicitation Agreement and Confidentiality Agreement (incorporated herein by reference to Exhibit 10(iii) to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009).
10.15**	Northern Trust Corporation 2017 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Current Report on Form 8-K filed April 26, 2017).
(i)**	Form of Director Stock Unit Agreement (incorporated herein by reference to Exhibit 10.10 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017).
(ii)**	Form of Director Stock Unit Agreement (prorated) (incorporated herein by reference to Exhibit 10.11 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017).
(iii)**	Form of 2019 Performance Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019).
(iv)**	Form of 2020 Performance Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020).
(v)**	Form of 2021 Performance Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021).
(vi)**	Form of 2018 Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.4 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018).
(vii)**	Form of 2019 Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.2 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019).
(viii)**	Form of 2020 Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.2 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020).
(ix)**	Form of 2021 Stock Unit Award Terms and Conditions (incorporated herein by reference to Exhibit 10.2 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021).
10.16**	Northern Trust Corporation Wealth Planning and Tax Preparation Services Plan, as amended and restated effective January 1, 2021 (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021).
10.17**	Northern Trust Corporation Non-Employee Director Compensation Plan, as amended.
10.18**	Northern Partners Incentive Plan, as amended and restated on February 22, 2022.

172 2021 Annual Report | Northern Trust Corporation

Exhibit Number	Description
10.19**	Letter Agreement with Frederick H. Waddell, dated January 23, 2019 (incorporated herein by reference to Exhibit 10.26 to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018).
10.20**	The Northern Trust Company Death Benefit Plan (incorporated herein by reference to Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019).
(i)**	Amendment Number One to The Northern Trust Company Death Benefit Plan, dated July 11, 2019 and effective May 17, 2019 (incorporated herein by reference to Exhibit 10.20(i) to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020).
(ii)**	Amendment Number Two to The Northern Trust Company Death Benefit Plan, dated July 29, 2019 and effective May 17, 2019 (incorporated herein by reference to Exhibit 10.20(ii) to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020).
(iii)**	Amendment Number Three to The Northern Trust Company Death Benefit Plan, dated March 18, 2020 and effective May 17, 2019 (incorporated herein by reference to Exhibit 10.20(iii) to the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020).
21	Subsidiaries of the Registrant.
23	Consent of Independent Registered Public Accounting Firm.
31.1	Rule 13a-14(a)/15d-14(a) Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Rule 13a-14(a)/15d-14(a) Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certifications of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Includes the following financial and related information from the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
104	The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL.

** Indicates a management contract or a compensatory plan or agreement.

ITEM 16 – FORM 10-K SUMMARY

None.

2021 Annual Report | Northern Trust Corporation 173

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 28, 2022

Northern Trust Corporation
(Registrant)
By:	/s/    Michael G. O’Grady
	Michael G. O’Grady
	Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

174 2021 Annual Report | Northern Trust Corporation

Signature	Capacity
/s/    Michael G. O'Grady	Chairman and Chief Executive Officer (Principal Executive Officer)
Michael G. O’Grady
/s/    Jason J. Tyler	Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Jason J. Tyler
/s/    Lauren Allnutt	Executive Vice President and Controller (Principal Accounting Officer)
Lauren Allnutt
/s/    Linda Walker Bynoe	Director
Linda Walker Bynoe
/s/    Susan Crown	Director
Susan Crown
/s/    Dean M. Harrison	Director
Dean M. Harrison
/s/    Jay L. Henderson	Director
Jay L. Henderson
/s/ Marcy S. Klevorn	Director
Marcy S. Klevorn
/s/ Siddharth N. (Bobby) Mehta	Director
Siddharth N. (Bobby) Mehta
/s/    Jose Luis Prado	Director
Jose Luis Prado
/s/    Martin P. Slark	Director
Martin P. Slark
/s/    David H.B. Smith, Jr.	Director
David H.B. Smith, Jr.
/s/    Donald Thompson	Director
Donald Thompson
/s/    Charles A. Tribbett, III	Director
Charles A. Tribbett, III

Date: February 28, 2022

2021 Annual Report | Northern Trust Corporation 175

EX-4.3

Exhibit 4.3

DESCRIPTION OF SECURITIES REGISTERED

PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2021, Northern Trust Corporation had two classes of securities registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) common stock; and (2) depositary shares each representing a 1/1,000th ownership interest in a share of series E non-cumulative perpetual preferred stock (the “Series E Preferred Stock”).

The following summary of the terms and provisions of certain of our securities does not purport to be complete and is qualified in its entirety by reference to the pertinent sections of our Restated Certificate of Incorporation, as amended (including any and all Certificates of Designation creating, and any and all Certificates of Elimination eliminating, series of preferred stock) (the “Restated Certificate of Incorporation”) and our By-laws, as amended (the “By-laws”), which are incorporated by reference into the Annual Report on Form 10-K of which this Exhibit 4.3 is a part.

Unless otherwise indicated or the context otherwise requires, references in this Exhibit 4.3 to “Northern Trust,” “the Corporation,” “we,” “us” and “our” are to Northern Trust Corporation, excluding our subsidiaries.

Description of Common Stock

Shares Authorized; Shares Outstanding

Our authorized capital stock includes 560,000,000 shares designated as common stock, $1.66 ⅔ par value per share, of which 207,761,875 shares were outstanding as of December 31, 2021.

All of our existing common stock is validly issued, fully paid and nonassessable.

Dividends

Holders of common stock are entitled to receive the dividends that may be declared from time to time by the board of directors. The rights of holders of common stock to receive dividends are subject to the prior rights of holders of any issued and outstanding preferred stock.

Voting Rights

Holders of common stock vote as a single class on all matters submitted to a vote of the stockholders with each share of common stock entitled to one vote. Holders of common stock do not have cumulative voting rights.

Liquidation Rights

Upon voluntary or involuntary liquidation, dissolution, or winding up of the Corporation, the holders of the common stock are entitled to receive, pro rata according to the number of shares held by each, all of our assets remaining for distribution after payment to creditors and the holders of any issued and outstanding preferred stock of the full preferential amounts to which they are entitled.

No Other Rights

The common stock has no preemptive or other subscription rights, and there are no other conversion rights, sinking fund or redemption provisions with respect to the shares of common stock.

Anti-Takeover Effects of Our Restated Certificate of Incorporation and By-lawsandCertain Provisions of Delaware Law

Our Restated Certificate of Incorporation and By-laws and some provisions of Delaware law contain provisions that may delay, defer or discourage another party from acquiring control of us. These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with the board of directors, which may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they also give the board of directors the power to discourage acquisitions that some stockholders may favor.

Size of Board and Vacancies

Our By-laws provide that the number of directors on our board is fixed by the board of directors. If any vacancy occurs in our board of director, or if the board authorizes any increase in the number of directors, a majority of the remaining directors then in office, may elect a director to fill the vacancy until the next annual meeting of stockholders or until his or her successor is elected.

Stockholder Meetings

Our By-laws provide that only our board of directors, chairman, or president may call special meetings of the stockholders. Stockholders who in the aggregate beneficially own at least 25% of the voting power of all outstanding shares of our common stock also may call a special meeting of the stockholders through the Secretary upon proper written request to the Secretary.

Advance Notice Procedures

Our By-laws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting. Although the By-laws do not give the board of directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, the By-laws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of us.

Authorized But Unissued Shares

We have authorized but unissued shares of common stock and preferred stock, and our board of directors may authorize the issuance of one or more series of preferred stock without shareholder approval. These shares could be used by our board of directors to make it more difficult or to discourage an attempt to obtain control of us through a merger, tender offer, proxy contest or otherwise.

Delaware Anti-Takeover Statute

We are subject to Section 203 of the Delaware General Corporation Law (“Section 203”), an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date such person became an interested stockholder, unless the business combination or the transaction in which such

person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person that, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by the board of directors, including discouraging attempts that might result in a premium over the market price for the shares of common stock.

Listing

Our common stock is listed on the Nasdaq Global Select Market under the symbol “NTRS.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Equiniti Trust Company.

Description of Preferred Stock - General

Our authorized capital stock includes 10,000,000 shares of preferred stock, without par value. Our board of directors is authorized to issue preferred stock in one or more series, to fix the number of shares in each series, and to determine the designations and preferences, limitations and relative rights of each series, including but not limited to dividend rates, voting rights, terms of redemption, liquidation preferences, sinking fund requirements and conversion rights, all without any vote or other action on the part of stockholders. This power is limited by applicable laws or regulations and may be delegated to a committee of the board of directors.

Description of Series E Preferred Stock

Shares Authorized; Shares Outstanding

As of December 31, 2021, there were authorized and outstanding 16,000 shares of Series E Preferred Stock. Depositary shares representing interests in the shares of the Series E Preferred Stock are registered pursuant to Section 12(b) of the Exchange Act and are described under “Description of Series E Depositary Shares” below.

General

The depositary, as described under “Description of Series E Depositary Shares” herein, is the sole holder of the Series E Preferred Stock and all references to the holders of the Series E Preferred Stock shall mean the depositary. However, the holders of depositary shares are entitled, through the depositary, to exercise the rights and preferences of the holders of the Series E Preferred Stock, as described under “Description of Series E Depositary Shares.”

The Series E Preferred Stock is a single series of authorized preferred stock consisting of 16,000 shares. We may from time to time, without notice to or the consent of holders of the Series E Preferred Stock, issue additional shares of preferred stock, including shares of the Series E Preferred Stock. Any such additional shares of Series E Preferred Stock would form a single series with the Series E Preferred Stock already issued. In addition, we may from time to time, without notice to or consent of holders of the Series E Preferred Stock, issue additional shares of preferred stock that rank equally with or junior to the Series E Preferred Stock.

Shares of the Series E Preferred Stock rank senior to our common stock and all other junior stock, and at least equally with each other series of our preferred stock we have issued or may issue (except for any senior series that may be issued with the consent of the holders of the Series E Preferred Stock and the consent of any other series of preferred stock as may be required) and all other parity stock, with respect to the payment of dividends and distributions of our assets upon liquidation, dissolution or winding up. In addition, we are generally able to pay dividends and distributions upon liquidation, dissolution or winding up only out of legally available assets for such payment (i.e., after taking account of all indebtedness and other non-equity claims) and pro rata as to any parity stock. As discussed below, the only series of parity stock outstanding as of December 31, 2021 was our unregistered Series D Non-Cumulative Perpetual Preferred Stock (the “Series D Preferred Stock”). Shares of the Series E Preferred Stock rank junior to all of our existing and future indebtedness and other non-equity claims on us with respect to assets available to satisfy claims on us, including in our liquidation.

The Series E Preferred Stock is fully paid and nonassessable. Holders of Series E Preferred Stock do not have preemptive or subscription rights to acquire more of our capital stock. Further, each holder’s interest in the shares of the Series E Preferred Stock may be fully subordinated to interests held by the U.S. government in the event that we enter into a bankruptcy, receivership, insolvency, liquidation, or similar proceeding, including a proceeding under the Orderly Liquidation Authority of the Dodd-Frank Act.

The Series E Preferred Stock is not convertible into, or exchangeable for, shares of any other class or series of our stock or other securities. The Series E Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of us to redeem or repurchase the Series E Preferred Stock.

Dividends

Dividends on shares of the Series E Preferred Stock are not mandatory. Holders of the Series E Preferred Stock are entitled to receive non-cumulative cash dividends, if, when and as declared by our board of directors or a duly authorized committee of the board, out of legally available assets. Dividends on each share of Series E Preferred Stock accrue on the liquidation preference amount of $25,000 per share (equivalent to $25 per depositary share) at a rate per annum equal to 4.70%. Dividends are payable in arrears on each dividend payment date. A “dividend payment date” means the 1st day of January, April, July and October of each year, commencing on April 1, 2020. If any such date is not a business day, then such date will nevertheless be a dividend payment date but dividends on the Series E Preferred Stock, when, as and if declared, will be paid on the next succeeding business day (without any adjustment to the amount of the dividend paid per share of the Series E Preferred Stock). A business day means any weekday on which banking institutions are not authorized or obligated by law, regulation or executive order to close in New York, New York.

A dividend period is the period from, and including, a dividend payment date to, but excluding, the next dividend payment date, except that the initial dividend period commenced on and included the original issue date of the Series E Preferred Stock.

The amount of dividends payable for any dividend period per share of the Series E Preferred Stock is calculated on the basis of a 360-day year consisting of twelve 30-day months.

In the event that we issue additional shares of Series E Preferred Stock after the original issue date, dividends on such shares will accrue from the original issue date of such additional shares. Notwithstanding the foregoing, dividends on the Series E Preferred Stock shall not be declared, paid or set aside for payment to the extent such act would cause us to fail to comply with laws and regulations applicable thereto, including applicable capital regulations.

Dividends are payable to holders of record of Series E Preferred Stock as they appear on our books on the applicable record date, which shall be the 15th day of the calendar month immediately preceding the

month during which the dividend payment date falls. The corresponding record dates for the depositary shares are the same as the record dates for the Series E Preferred Stock.

Dividends on shares of Series E Preferred Stock are not cumulative. Accordingly, if the board of directors or a duly authorized committee of the board does not declare a dividend on the Series E Preferred Stock payable in respect of any dividend period before the related dividend payment date, such dividend will not accrue or be payable and we will have no obligation to pay a dividend for that dividend period on the dividend payment date or at any future time, whether or not dividends on the Series E Preferred Stock are declared for any future dividend period.

Restrictions on Dividends

So long as any share of Series E Preferred Stock remains outstanding, unless the full dividends for the most recently completed dividend period on all outstanding shares of Series E Preferred Stock have been declared and paid or declared and a sum sufficient for the payment thereof has been set aside:

(1) no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than a dividend payable solely in junior stock or any dividend in connection with the implementation of a stockholders’ rights plan, or the redemption or repurchase of any rights under any such plan);

(2) no shares of junior stock shall be repurchased, redeemed or otherwise acquired for consideration by us, directly or indirectly (other than (a) as a result of a reclassification of junior stock for or into other junior stock; (b) the exchange or conversion of one share of junior stock for or into another share of junior stock; (c) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock; (d) purchases, redemptions or other acquisitions of shares of junior stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants; (e) purchases of shares of junior stock pursuant to a contractually binding requirement to buy junior stock existing prior to the preceding dividend period, including under a contractually binding stock repurchase plan; (f) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged; (g) purchases or other acquisitions by any of our broker-dealer subsidiaries solely for the purpose of market making, stabilization or customer facilitation transactions in junior stock in the ordinary course of business; (h) purchases by any of our broker-dealer subsidiaries of our capital stock for resale pursuant to an offering by us of such capital stock underwritten by such broker-dealer subsidiary; or (i) the acquisition by us or any of our subsidiaries of record ownership in junior stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians) nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by us; and

(3) no shares of parity stock shall be repurchased, redeemed or otherwise acquired for consideration by us (other than (a) pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series E Preferred Stock and such parity stock; (b) as a result of a reclassification of parity stock for or into other parity stock or junior stock; (c) the exchange or conversion of parity stock for or into other parity stock or junior stock; (d) through the use of the proceeds of a substantially contemporaneous sale of other shares of parity stock or junior stock; (e) purchases of shares of parity stock pursuant to a contractually binding requirement to buy parity stock existing prior to the preceding dividend period, including under a contractually binding stock repurchase plan; (f) the purchase of fractional interests in shares of parity stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged; (g) purchases or other acquisitions by any of our broker-dealer subsidiaries solely for the purpose of market making, stabilization or customer facilitation transactions in parity stock in the ordinary course of business; (h) purchases by any of our broker-dealer subsidiaries of our capital stock for resale pursuant to an offering by us of such capital stock underwritten by such broker-dealer subsidiary; or (i) the

acquisition by us or any of our subsidiaries of record ownership in parity stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians).

As used in this Description of Series E Preferred Stock, “junior stock” means our common stock, our Series A Junior Participating Preferred Stock (if and when issued and outstanding), and any other class or series of our stock hereafter authorized over which the Series E Preferred Stock has preference or priority in the payment of dividends or in the distribution of our assets on any liquidation, dissolution or winding up of Northern Trust.

When dividends are not paid in full upon the shares of Series E Preferred Stock and any parity stock, all dividends declared upon shares of Series E Preferred Stock and any parity stock will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the same ratio that accrued dividends per share on Series E Preferred Stock, and accrued dividends, including any accumulations, on any parity stock, bear to each other. To the extent a dividend period with respect to any parity stock coincides with more than one dividend period with respect to the Series E Preferred Stock, for purposes of the immediately preceding sentence, our board of directors will treat such dividend period(s) with respect to any parity stock and dividend period(s) with respect to the Series E Preferred Stock in a manner that it deems to be fair and equitable in order to achieve proportional payments of dividends on such parity stock and the Series E Preferred Stock. To the extent a dividend period with respect to the Series E Preferred Stock coincides with more than one dividend period with respect to any parity stock, for purposes of the first sentence of this paragraph, our board of directors will treat such dividend period(s) with respect to the Series E Preferred Stock and dividend period(s) with respect to any parity stock in a manner that it deems to be fair and equitable in order to achieve proportional payments of dividends on the Series E Preferred Stock and such parity stock. For the purposes of this paragraph, the term “dividend period” as used with respect to any parity stock means such dividend periods as are provided for in the terms of such parity stock.

As used in this Description of Series E Preferred Stock, “parity stock” means our Series D Preferred Stock and any other class or series of our stock hereafter authorized that ranks equally with the Series E Preferred Stock in the payment of dividends (whether such dividends are cumulative or non-cumulative) and in the distribution of our assets on any liquidation, dissolution or winding up of Northern Trust. As of December 31, 2021, 5,000 shares of our Series D Preferred Stock were the only shares of parity stock outstanding. The Series D Preferred Stock has a liquidation preference of $100,000 per share (or $1,000 per depositary share). Holders of Series D Preferred Stock are entitled to non-cumulative dividends, when, as and if declared by our board of directors or a duly authorized committee of the board, at a rate per annum equal to (i) 4.60% from the original issue date of the Series D Preferred Stock to but excluding October 1, 2026; and (ii) a floating rate equal to the three-month LIBOR plus 3.202% from and including October 1, 2026.

Subject to the foregoing, and not otherwise, such dividends (payable in cash, stock or otherwise), as may be determined by our board of directors or a duly authorized committee of the board, may be declared and paid on our common stock and any other stock ranking equally with or junior to the Series E Preferred Stock from time to time out of any assets legally available for such payment, and the holders of the Series E Preferred Stock shall not be entitled to participate in any such dividends.

Liquidation Rights

Upon any voluntary or involuntary liquidation, dissolution or winding up of Northern Trust, holders of the Series E Preferred Stock are entitled to receive out of our assets legally available for distribution to stockholders, before any distribution of assets may be made to or set aside for the holders of common stock or any other junior stock, after satisfaction of liabilities to creditors and subject to the rights of holders of any securities ranking senior to the Series E Preferred Stock, a liquidating distribution in the amount of the

liquidation preference of $25,000 per share (equivalent to $25 per depositary share) plus declared and unpaid dividends, without accumulation of any undeclared dividends. Holders of the Series E Preferred Stock are not entitled to any other amounts from us after they have received their full liquidating distribution.

In any such distribution, if our assets are not sufficient to pay the liquidation preference plus declared and unpaid dividends in full to all holders of the Series E Preferred Stock and all holders of any parity stock the amounts paid to the holders of Series E Preferred Stock and to the holders of all such parity stock will be paid pro rata in accordance with the respective aggregate liquidating distribution owed to those holders. If the liquidation preference plus declared and unpaid dividends has been paid in full to all holders of Series E Preferred Stock and any parity stock, the holders of our junior stock shall be entitled to receive all remaining assets of Northern Trust according to their respective rights and preferences.

For purposes of this section, the sale, lease, conveyance or transfer (for cash, securities or other property) of all or substantially all of the property and assets of Northern Trust, or any merger or consolidation of Northern Trust with or into any other entity (for cash, securities or other property), shall not be deemed a liquidation, dissolution or winding up of Northern Trust.

The shares of Series E Preferred Stock may be fully subordinated to interests held by the U.S. government in the event that we enter into a receivership, insolvency, liquidation or similar proceeding, including a proceeding under the Orderly Liquidation Authority of the Dodd-Frank Act.

Redemption

The Series E Preferred Stock is not subject to any mandatory redemption, sinking fund or other similar provision. Except as described below, the Series E Preferred Stock is not redeemable prior to January 1, 2025. On any dividend payment date on or after January 1, 2025, the Series E Preferred Stock is redeemable at our option, in whole at any time, or in part from time to time, at a redemption price equal to $25,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Holders of Series E Preferred Stock have no right to require the redemption or repurchase of the Series E Preferred Stock.

Notwithstanding the foregoing, within 90 days following the occurrence of a “regulatory capital treatment event,” we may, at our option, subject to the approval of the appropriate federal banking agency, provide notice of our intent to redeem in accordance with the procedures described below, and subsequently redeem, all (but not less than all) of the shares of Series E Preferred Stock at the time outstanding at a redemption price equal to $25,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

A “regulatory capital treatment event” means the good faith determination by us that, as a result of any

•amendment to, or change (including any announced prospective change) in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of any share of Series E Preferred Stock;

•proposed change in those laws or regulations that is announced after the initial issuance of any share of Series E Preferred Stock; or

•official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any share of Series E Preferred Stock

there is more than an insubstantial risk that we will not be entitled to treat the full liquidation preference of the shares of Series E Preferred Stock then outstanding as additional tier 1 capital (or its equivalent) for purposes of the capital adequacy rules of the Federal Reserve in 12 CFR Part 217 (or, as and if applicable, the capital adequacy rules and regulations of any successor appropriate federal banking agency), as then in effect and applicable, for as long as any share of Series E Preferred Stock is outstanding.

If shares of the Series E Preferred Stock are to be redeemed, the notice of redemption shall be given by first class mail to the holders of record of the Series E Preferred Stock to be redeemed, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption thereof (provided that, if the Series E Preferred Stock is held in book-entry form through DTC, we may give such notice in any manner permitted by DTC). Each notice of redemption shall state: (1) the redemption date; (2) the number of shares of the Series E Preferred Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; (3) the redemption price; (4) the place or places where the certificates evidencing shares of Series E Preferred Stock are to be surrendered for payment of the redemption price; and (5) that dividends on the shares to be redeemed will cease to accrue on the redemption date. If notice of redemption of any shares of Series E Preferred Stock has been duly given and if the funds necessary for such redemption have been set aside by us for the benefit of the holders of any shares of Series E Preferred Stock so called for redemption, then, on and after the redemption date, such shares of Series E Preferred Stock shall no longer be deemed outstanding, dividends will cease to accrue on such shares of Series E Preferred Stock and all rights of the holders of such shares will terminate, except the right to receive the redemption price. See “Description of Series E Depositary Shares” below for information about redemption of the depositary shares relating to our Series E Preferred Stock.

In case of any redemption of only part of the shares of the Series E Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro rata, by lot or in such other manner as we may determine to be fair and equitable.

Under the Federal Reserve’s current risk-based capital regulations applicable to bank holding companies, any redemption of the Series E Preferred Stock is subject to prior approval of the Federal Reserve, and Northern Trust legally must either replace the shares to be redeemed with an equal amount of instruments that qualify as common equity tier 1 capital or additional tier 1 capital, or demonstrate to the Federal Reserve that following such redemption Northern Trust will continue to hold capital commensurate with its risk.

Voting Rights

The holders of the Series E Preferred Stock do not have voting rights other than those described below, except as expressly provided by Delaware law.

So long as any shares of Series E Preferred Stock remain outstanding:

•the affirmative vote or consent of the holders of at least two-thirds of all of the shares of the Series E Preferred Stock at the time outstanding, voting separately as a single class, shall be required to amend the provisions of Northern Trust’s Restated Certificate of Incorporation, as amended (including the Certificate of Designation of the Series E Preferred Stock or any other series of preferred stock), or Northern Trust’s bylaws so as to materially and adversely affect the powers, preferences, privileges or rights of the Series E Preferred Stock, taken as a whole; provided, however, that any increase in the amount of the authorized or issued Series E Preferred Stock or authorized preferred stock or the creation and issuance, or an increase in the authorized or issued amount, of other series of preferred stock ranking equally with and/or junior to the Series E Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and/or the distribution of assets upon liquidation, dissolution or winding up of Northern Trust will not be deemed to adversely affect the powers, preferences, privileges or rights of the Series E Preferred Stock; and

•the affirmative vote or consent of the holders of at least two-thirds of all of the shares of the Series E Preferred Stock at the time outstanding, voting separately as a single class, shall be required to issue, authorize or increase the authorized amount of, or to issue or authorize any obligation or security convertible into or evidencing the right to purchase, any class or series of stock ranking senior to the Series E Preferred Stock and all other parity stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of Northern Trust.

The foregoing voting provisions do not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series E Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds shall have been set aside by us for the benefit of the holders of the Series E Preferred Stock to effect such redemption.

Listing

There is no separate public trading market for the shares of our Series E Preferred Stock except as represented by the depositary shares representing interests therein. See “Description of Series E Depositary Shares—Listing” below.

Transfer Agent and Registrar

The registrar, dividend disbursing agent and redemption agent for our Series E Preferred Stock is Equiniti Trust Company.

Description of Series E Depositary Shares

General

We issued fractional interests in shares of the Series E Preferred Stock in the form of depositary shares. Each depositary share represents a 1/1,000th ownership interest in a share of Series E Preferred Stock, and is evidenced by a depositary receipt. The shares of Series E Preferred Stock represented by depositary shares were deposited under a deposit agreement among Northern Trust, Equiniti Trust Company, as depositary, and the holders from time to time of the depositary receipts evidencing the depositary shares. Subject to the terms of the deposit agreement, each holder of a depositary share is entitled, through the depositary, in proportion to the applicable fraction of a share of Series E Preferred Stock represented by such depositary share, to all the rights and preferences of the Series E Preferred Stock represented thereby (including dividend, voting, redemption and liquidation rights).

References to “holders” of depositary shares mean those who own depositary shares registered in their own names, on the books that we or the depositary maintain for this purpose, and not indirect holders who own beneficial interests in depositary shares registered in street name or issued in book-entry form through DTC.

Dividends and Other Distributions

The depositary will distribute any cash dividends or other cash distributions received in respect of the deposited Series E Preferred Stock to the record holders of depositary shares relating to the underlying Series E Preferred Stock in proportion to the number of depositary shares held by the holders. The depositary will distribute any property received by it other than cash to the record holders of depositary shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that it is not feasible to make a distribution. In that event, the

depositary may, with our approval, sell the property and distribute the net proceeds from the sale to the holders of the depositary shares in proportion to the number of depositary shares they hold.

Record dates for the payment of dividends and other matters relating to the depositary shares will be the same as the corresponding record dates for the Series E Preferred Stock.

The amounts distributed to holders of depositary shares will be reduced by any amounts required to be withheld by the depositary or by us on account of taxes or other governmental charges. Additionally, each holder of depositary shares representing interests in the Series E Preferred Stock may be fully subordinated to interests held by the U.S. government in the event that we enter into a bankruptcy, receivership, insolvency, liquidation or similar proceeding.

Redemption of Depositary Shares

If we redeem the Series E Preferred Stock represented by the depositary shares, the depositary shares will be redeemed from the proceeds received by the depositary resulting from the redemption of the Series E Preferred Stock held by the depositary. The redemption price per depositary share will be equal to 1/1,000th of the redemption price per share payable with respect to the Series E Preferred Stock (or $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Whenever we redeem shares of Series E Preferred Stock held by the depositary, the depositary will redeem, as of the same redemption date, the number of depositary shares representing the Series E Preferred Stock so redeemed.

In case of any redemption of less than all of the outstanding depositary shares, the depositary shares to be redeemed will be selected by the depositary pro rata or in such other manner determined by the depositary to be fair and equitable. In any such case, depositary shares will be redeemed only in increments of 1,000 shares and any multiple thereof.

Voting the Series E Preferred Stock

When the depositary receives notice of any meeting at which the holders of the Series E Preferred Stock are entitled to vote, the depositary will mail the information contained in the notice to the record holders of the depositary shares relating to the Series E Preferred Stock. Each record holder of the depositary shares on the record date, which will be the same date as the record date for the Series E Preferred Stock, may instruct the depositary to vote the amount of the Series E Preferred Stock represented by the holder’s depositary shares. To the extent reasonably practicable, the depositary will vote the amount of the Series E Preferred Stock represented by depositary shares in accordance with the instructions it receives. We will agree to take all reasonable actions that the depositary determines are necessary to enable the depositary to vote as instructed. If the depositary does not receive specific instructions from the holders of any depositary shares representing the Series E Preferred Stock, it will vote such depositary shares proportionately with instructions received.

Listing

The depositary shares representing interests in the shares of our Series E Preferred Stock are listed on the Nasdaq Global Select Market under the symbol “NTRSO.”

There is no separate public trading market for the shares of the Series E Preferred Stock except as represented by the depositary shares representing interests in the shares of the Series E Preferred Stock.

Form of Preferred Stock and Depositary Shares

The depositary shares were issued in book-entry form through DTC. The Series E Preferred Stock was issued in registered form to the depositary as described in “Description of Series E Preferred Stock” above.

Amendment and Termination of the Deposit Agreement

The form of depositary receipt evidencing the depositary shares and any provision of the deposit agreement may be amended by agreement between us and the depositary. However, any amendment that materially and adversely alters the rights of the holders of depositary shares will not be effective unless the amendment has been approved by at least a majority (or, in the case of such amendments relating to or affecting rights to receive dividends or distributions or voting or redemption rights, holders of at least two-thirds) of the outstanding depositary shares. The deposit agreement may be terminated by the depositary or us only if:

•all outstanding depositary shares have been redeemed; or

•there has been a final distribution of the preferred stock in connection with our liquidation, dissolution or winding up and such distribution has been made to all the holders of depositary shares.

EX-10.17

Exhibit 10.17

NORTHERN TRUST CORPORATION

Non-Employee Director Compensation Plan

1.Purpose. This Non-Employee Director Compensation Plan (the “Plan”) is adopted by the Board of Directors (the “Board”) of Northern Trust Corporation (the “Corporation”). This Plan is adopted pursuant to the Northern Trust Corporation 2017 Long-Term Incentive Plan (the “2017 LTIP”). Capitalized terms defined in the 2017 LTIP that are used herein without being defined shall have the same meaning as set forth in the 2017 LTIP.

2.Participants. Each Non-Employee Director shall be eligible to participate in the Plan. Upon acknowledging his or her agreement to the terms and conditions of the Plan by countersigning the Plan in the space provided below, the Non-Employee Director shall become a participant in the Plan (a “Participant”).

3.Restricted Stock Units.

3.1 Grant.

a.Immediately following the conclusion of the Corporation’s annual meeting of stockholders (the “Annual Meeting”) in each year, beginning with the Annual Meeting to be held in 2022, and subject to the availability of shares of Common Stock under the 2017 LTIP, each Participant elected to the Board at such Annual Meeting shall, automatically and without necessity of any action by the Board or any committee thereof, receive the number of Restricted Stock Units equal to the quotient of (i) $145,000, divided by (ii) the Fair Market Value of a share of Common Stock on the date of the grant (reduced to the nearest whole number) (such number of Restricted Stock Units, the “Annual RSU Grant Amount”), subject to the terms and conditions of this Plan and the 2017 LTIP. A Restricted Stock Unit is the right, subject to the terms and conditions of the Plan and the 2017 LTIP, to receive a distribution of a share of Common Stock or cash (with respect to Cash-Settled RSUs, as defined below), pursuant to Section 3.6 below. With respect to any Participant who is an “Advisory Director,” all Restricted Stock Units held by such Participant shall be settled in cash, with each Restricted Stock Unit constituting the right to receive cash in an amount equal to the Fair Market Value of Common Stock on the date of distribution (the “Cash-Settled RSUs”). With respect to all other Participants, all Restricted Stock Units shall be settled in Common Stock. Unless otherwise specified herein, the Cash-Settled RSUs shall be subject to the same terms and conditions under this Plan as Restricted Stock Units that are settled in Common Stock.

b.Each Participant elected or appointed on a date other than the date of an Annual Meeting shall, on the date of such election or appointment and automatically and without necessity of any action by the Board or any committee thereof, receive a pro-rated grant for the number of Restricted Stock Units (reduced to the nearest whole number) equal to the product of

(i) the Annual RSU Grant Amount applicable to the immediately preceding Annual Meeting, multiplied by (ii) the quotient of (A) the number of days before the next Annual Meeting divided by (B) the number of days from the immediately preceding Annual Meeting until the next regularly scheduled Annual meeting; provided, however, if the next Annual Meeting date has not been approved by the Board at the time of grant, for purposes of this calculation it should be assumed that 365 days will elapse between the two Annual Meetings.

3.2     Restricted Stock Unit Account. The Corporation shall maintain an account         (“RSU Account”) on its books in the name of each Participant, which shall reflect the number of Restricted Stock Units awarded to a Participant that the Participant is eligible to receive under this Plan and which have not yet been distributed to the Participant in accordance with Section 3.6 hereof.

3.3     Dividend Equivalents. Upon the payment of any dividend on Common Stock occurring during the period preceding the distribution of a Participant’s Restricted Stock Unit award pursuant to Section 3.6 below, the Corporation shall credit to a cash account maintained by the Corporation on its books in the name of the Participant with respect to the Restricted Stock Units an amount equal in value to the dividends that the Participant would have received had the Participant been the actual owner on the record date of the number of shares of Common Stock represented by the Restricted Stock Units in the Participant’s RSU Account on that date (“Dividend Equivalents”). No interest or earnings shall be credited with respect to the Dividend Equivalents. Such Dividend Equivalents shall be subject to the same forfeiture, vesting, and distribution provisions of this Plan applicable to the Restricted Stock Units to which such Dividend Equivalents relate.

3.4     Forfeiture. Except as set forth in Section 3.5, if a Participant incurs a Separation from Service, as defined below, prior to the Vesting Date, as defined below, the Participant’s Restricted Stock Units shall be forfeited and revert to the Corporation, and the Corporation shall have no obligation to pay any Dividend Equivalents pursuant to Section 3.3 above with respect to the forfeited Restricted Stock Units. The Corporation shall have no further obligation to such a Participant under the Plan with respect to such Restricted Stock Units. For purposes of this Plan, the term “Separation from Service” shall mean the date on which the Participant’s membership on the Board terminates for any reason, including resignation or retirement.

3.5    Vesting. A Participant shall become 100% vested in the Restricted Stock Units granted hereunder upon the date (the “Vesting Date”) that is the earliest to occur of (a) the date of the next Annual Meeting following the award of the Restricted Stock Units (the “Regular Vesting Date”), (b) the date of the Participant’s death, and (c) the date of a Change in Control, provided that the Participant has not incurred a Separation from Service prior to the earliest of the foregoing three events.

3.6    Distribution. Subject to any deferral election completed by the Participant to the extent permitted under Section 5 of the Plan and Section 409A of the Code:

a.If a Participant has become 100% vested in an award of Restricted Stock Units granted hereunder upon a Vesting Date, the Restricted Stock Units (and associated Dividend Equivalents, if any) shall be distributed as soon as possible after the Vesting Date (but in any event no later than 60 days following the Vesting Date), provided that neither the Participant (nor any Beneficiary (as defined in Section 6.5), if applicable) shall have the right directly or indirectly to designate the taxable year of payment. Restricted Stock Units which are (i) settled in Common Stock shall be distributed only in shares of Common Stock so that, pursuant to Section 3.1 and this Section 3.6, a Participant shall be entitled to receive one share of Common Stock for each Restricted Stock Unit in the Participant’s RSU Account, or (ii) Cash-Settled RSUs shall be distributed only in cash so that, pursuant to Section 3.1 and this Section 3.6, a Participant shall be entitled to receive cash with respect to each such Restricted Stock Unit in an amount equal to the Fair Market Value of a share of Common Stock on the Vesting Date. For purposes of the distribution of Cash-Settled RSUs, the Fair Market Value of a share of Common Stock at any time that the Common Stock is listed on a national securities exchange or quoted on NASDAQ shall be the average of the highest and lowest reported sales prices of a share of Common Stock on NASDAQ.

b.If a Participant’s service on the Board shall terminate by reason of death prior to the Regular Vesting Date or a Change in Control, all cash or Common Stock then distributable hereunder with respect to the Participant shall be distributed to the Participant’s Beneficiary or, in the absence of a Beneficiary, to the Participant’s estate. With respect to Cash-Settled RSUs, the value of each such Restricted Stock Unit shall equal the Fair Market Value of a share of Common Stock on the date of death.

c.If a Participant dies on or after the Regular Vesting Date or a Change in Control, but prior to the distribution of all amounts to which the Participant is entitled hereunder, all cash or Common Stock then distributable hereunder with respect to the Participant shall be distributed to the Participant’s Beneficiary or, in the absence of a Beneficiary, to the Participant’s estate, within the period described in Section 3.6(a).

3.7     Delivery of Shares. To the extent permitted under the short-term deferral rules under Section 409A of the Code, the Corporation may delay the issuance or delivery of shares of Common Stock if the Corporation reasonably anticipates that such issuance or delivery will violate federal securities laws or other applicable law, provided that the issuance or delivery is made at the earliest date at which the Corporation reasonably anticipates that such issuance or delivery will not cause such violation.

3.8     Adjustment. All Restricted Stock Units provided under the Plan are subject to adjustment in accordance with the provisions of Section 5.7 of the 2017 LTIP.

3.9     Availability of Shares. If on any grant date, the number of shares of Common Stock which would otherwise be granted in the form of Restricted Stock Units granted under the Plan shall exceed the number of shares of Common Stock then remaining available under the 2017 LTIP, the available shares shall be allocated to Participants pro-rata in proportion to the number of shares subject to Restricted Stock Units that Participants would otherwise be entitled to receive, and the remaining portion of their Restricted Stock Unit grant shall be granted in the form of cash compensation, subject to the same vesting and payment terms as set forth in this Section 3.

4.Cash Compensation.

4.1     The Corporation shall pay each Participant an annual cash retainer of $110,000 per calendar year (the “Annual Cash Retainer”). In addition to the Annual Cash Retainer:

a.Participants serving as the Chair of any Board committee are entitled to an additional $25,000 cash payment per calendar year (the “Committee Chairperson Retainer”);

b.Participants serving as the Chair of any subcommittee of a Board committee are entitled to an additional $25,000 cash payment per calendar year (the “Subcommittee Chairperson Retainer”);

c.the Corporation’s Lead Director is entitled to an additional $42,500 cash payment per calendar year (the “Lead Director Retainer”);

d.any Participants, including the applicable Chair, serving on the Audit, Business Risk and Capital Governance Committees are entitled to an additional $10,000 cash payment per calendar year (the “Committee Retainer”); and

e.any Participants, including the applicable Chair, serving on the Cybersecurity Risk Oversight Subcommittee of the Business Risk Committee are entitled to receive an additional $10,000 cash payment per calendar year (the “Subcommittee Retainer” and, together with the Annual Cash Retainer, Committee Chairperson Retainer, Subcommittee Chairperson Retainer, Lead Director Retainer, and Committee Retainer, the “Cash Compensation”).

4.2     The Cash Compensation shall be paid quarterly in arrears (but in any event no later than the March 15th immediately following the conclusion of the applicable year). If a Participant dies prior to receiving his or her Cash Compensation for a particular quarter, such Cash Compensation shall be distributed to the Participant’s Beneficiary or, in the absence of a Beneficiary, to the Participant’s estate. For purposes of determining the amount of such quarterly payment(s):

a.a Participant who joins the Board or a committee following the beginning of the applicable quarter shall be entitled to a pro rata portion of the Cash Compensation based on the number of days served on the Board or applicable committee during such quarter; and

b.Participants serving as the Chair or other member of any Board committee or subcommittee shall be the Directors appointed to such roles by the Board or the applicable committee thereof, as the case may be, and/or any such other Director fulfilling the duties and responsibilities that typically attach to such roles as determined by the Board.

5.     Deferral of Compensation.To the extent that the Corporation maintains a deferred compensation plan in which Directors may participate, Participants shall be eligible to defer payment of the Restricted Stock Units (including the related Dividend Equivalents) and Cash Compensation otherwise payable under this Plan, in accordance with the terms and conditions of the deferred compensation plan as may be in effect from time to time and Section 409A of the Code.

6.     General Provisions.

6.1 Amendment, Suspension or Termination. Subject to the limitations contained in Section 5.2 of the 2017 LTIP, the Board may, at any time amend, suspend or terminate the Plan as it deems advisable and in the best interests of the Corporation.

6.2 No Obligation to Reelect or Reappoint. Nothing in the Plan or the 2017 LTIP shall be deemed to create an obligation on the part of the Board to nominate a Participant for reelection by the Corporation’s stockholders, to reappoint an Advisory Director or to fill any vacancy upon action of the Board.

6.3 Unfunded Arrangement. The Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Corporation for payment of any benefit hereunder. No Participant shall have any interest in any particular assets of the Corporation or its affiliates by reason of the right to receive a benefit under the Plan and any such Participant shall have only the rights of an unsecured creditor of the Corporation with respect to any rights under the Plan.

6.4 Nontransferability. No interest hereunder shall be transferable other than by will, the laws of descent and distribution or pursuant to procedures approved by the Corporation related to the designation of a Beneficiary pursuant to Section 6.5 below. Except pursuant to the preceding sentence, no interest hereunder may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award and all rights thereunder shall immediately become null and void.

6.5 Designation of Beneficiary. The Participant may file with the Corporation a written designation (in a form and submitted in a manner acceptable to the Corporation) of one or more individuals, trustees, trusts or other entities as such holder’s beneficiary or beneficiaries (“Beneficiary”) in the event of the holder’s death.

6.6 Withholding. In the event that federal, state, foreign or local taxes must be withheld from any distribution hereunder, (a) the Corporation shall deduct from any such distribution in cash the amount of such required withholding and (b) with respect to distributions in shares of Common Stock, subject to such rules and limitations as may be established by the Committee from time to time, withholding obligations, if any, shall be satisfied from one of the following elected by the Participant: (i) by cash payment by the Participant; (ii) through the surrender of shares of Common Stock already owned by the Participant that are acceptable to the Committee; or (iii) through the surrender of shares of Common Stock to which the Participant is otherwise entitled under the Plan; provided, however, that such shares under this clause (iii) may be used to satisfy not more than the Corporation’s minimum statutory withholding obligation, if any (based on minimum statutory withholding rates for applicable tax purposes that are applicable to such taxable income) or such higher withholding rate that is permitted under applicable law and accounting rules.

6.7 Administration. The Plan and the 2017 LTIP are administered by the Committee. The rights of Participants hereunder are expressly subject to the terms and conditions of the Plan and the 2017 LTIP, together with such guidelines as have been or may be adopted from time to time by the Committee.

6.8 No Rights as Stockholder. Except as provided herein, Participants shall have no rights as a stockholder with respect to the Restricted Stock Units until the Common Stock subject to such Restricted Stock Units are distributed to the Participant.

6.9 Interpretation. Any interpretation by the Committee of the terms and conditions of the Plan, the 2017 LTIP or any guidelines shall be final.

6.10 Governing Law. The Plan and each award hereunder and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws.

Acknowledged and Agreed to:

PARTICIPANT

By:

Name:

Date:

EX-10.18

Exhibit 10.18

Northern Partners Incentive Plan

(As amended and restated on February 22, 2022)

I.INTRODUCTION

1.1 Purpose. The purpose of the Northern Partners Incentive Plan (the “Plan”) is to (i) promote the achievement of superior financial and operating performance of Northern Trust Corporation and its subsidiaries (hereinafter referred to as “Northern Trust”), and (ii) further the objective of delivering unrivaled service quality to its clients and partners through the awarding of incentive payments to selected employees.

1.2 Definitions.

“Authorized Senior Manager” shall mean the officer or officers of Northern Trust who have been designated by the Committee to administer certain elements of the Plan, as specified herein.

“Board” shall mean the Board of Directors of the Corporation.

“Cause” shall mean (i) a material breach or Participant’s willful and substantial non-performance of Participant’s assigned duties and responsibilities (other than as a result of incapacity due to physical or mental illness), (ii) a conviction of or no contest plea with respect to bribery, extortion, embezzlement, fraud, grand larceny, or any felony or similar conviction under local law involving abuse or misuse of Participant’s position to seek or obtain an illegal or personal gain at the expense of the Corporation, Participant’s Employer or any of their respective subsidiaries, or similar crimes, or conspiracy to commit any such crimes or attempt to commit any such crimes, (iii) Participant’s violation of any policy of the Corporation, Participant’s Employer or any of their respective subsidiaries to which Participant may be subject or Participant’s willful engagement in any misconduct in the performance of Participant’s duties that materially injures the Corporation, Participant’s Employer or any of their respective subsidiaries, (iv) Participant’s performance of any act which, if known to the customers, clients, stockholders or regulators of the Corporation, Participant’s Employer or any of their respective subsidiaries, would materially and adversely impact the business of the Corporation, Participant’s Employer or any of their respective subsidiaries, or (v) any act or omission by Participant that causes a regulatory body with jurisdiction over the Corporation, Participant’s Employer or any of their respective subsidiaries, to demand, request, or recommend that Participant be suspended or removed from any position in which Participant serves with the Corporation, Participant’s Employer or any of their respective subsidiaries.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Committee” shall mean the Compensation and Benefits Committee of the Board, or a subcommittee thereof, or such other committee designated by the Board to administer the Plan.

“Continuous Years of Service” shall mean the period of Participant’s continuous and uninterrupted employment with Participant’s Employer commencing on Participant’s most recent

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hire date with Participant’s Employer through Participant’s termination date. For the sake of clarity, if Participant’s employment with Northern Trust terminated and Participant has been rehired by Participant’s Employer, Participant’s Continuous Years of Service shall not be determined by aggregating Participant’s periods of employment with Northern Trust. For purposes of this definition, the Participant’s termination date shall be deemed to occur on the effective date of the termination of employment with Participant’s Employer, as determined by the Participant’s Employer (in its discretion).

“Corporation” shall mean the Northern Trust Corporation, a Delaware corporation.

“Disability” shall mean (i) for a United States-based Participant, the Participant is eligible for and receives short-term and/or long-term disability benefits for 12 consecutive months under the Northern Trust sponsored disability program applicable to such Participant and (ii) for a Participant based outside of the United States, as determined by the Human Resources Officer (or his or her delegate) based on formal local country-specific definitions and eligibility criteria for disability benefits.

“Employer” shall mean the Corporation or any subsidiary that employs Participant.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Good Standing” shall mean (i) the Participant has satisfactorily met performance expectations, including risk management performance expectations, as determined by the Participant's direct supervisor, (ii) the Participant has complied with all Northern Trust policies and standards of conduct, (iii) the Participant has not engaged in any activity competitive with Northern Trust’s business or otherwise detrimental to Northern Trust’s business, and (iv) the Participant has not tendered his or her resignation or been notified by Northern Trust of the termination of such Participant’s employment.

“Human Resources Officer” shall mean the senior most human resources officer of the Corporation.

“Participant” shall mean any employee of Northern Trust selected to participate in the Plan for a Performance Period.

“Performance Period” shall mean any period designated by the Authorized Senior Manager during which incentives may be determined and which may represent a quarterly, semi-annual or annual period, depending on the incentive category to which the Participant is assigned and the potential award structure. Performance Periods for (i) quarterly payments shall be as follows: January 1 to March 31; April 1 to June 30; July 1 to September 30; and October 1 to December 31; (ii) semi-annual payments shall be as follows: January 1 to June 30 and July 1 to December 31; and (iii) all other awards under the Plan, shall be the Plan Year, unless otherwise approved by the Human Resources Officer (or his or her delegate).

“Plan Year” shall mean the calendar year period from January 1 to December 31.

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“Retirement” shall mean a termination of employment without Cause occurring on or after the date (i) Participant has attained age 55, and (ii) the sum of Participant’s age (in whole years, rounded down to the nearest year) and Continuous Years of Service (in whole years, rounded down to the nearest year) equals or exceeds 65.

“Settlement Date” shall mean (i) except as provided in subsection (ii) below, the date on which any cash award is paid, (ii) for purposes of Section 3.4(c) and Local Addendum: Canada and solely for any cash award paid, the February 1st of the year following the Performance Period or (iii) the grant date, as approved by the Committee (or its delegate), of any equity-based compensation with respect to this Plan.

II.ELIGIBILITY

Participants in the Plan for a Plan Year are those employees designated by the Authorized Senior Manager as eligible to participate in the Plan. Employees who have a change in job duties, are promoted, or are hired during the applicable Performance Period may be considered for inclusion and designated by Business Unit Management for partial Plan Year participation.

III. TERMS OF AWARDS

3.1 Award Opportunities. An award target or opportunity shall be communicated to each Participant at the beginning of the applicable Plan Year or, if different, the beginning of the applicable Performance Period as a potential award payout, provided that the applicable corporate and business unit performance goals and individual performance expectations, and any other factors that Northern Trust may determine appropriate, are achieved.

3.2 Discretion. The award and payment of any incentive amount is at the sole and absolute discretion of Northern Trust. Northern Trust has the discretion not to award Participants an incentive payout or to reduce the amount of the incentive payout if either corporate, business unit or individual performance is not in line with expectations or due to any other reason Northern Trust deems appropriate in its sole and absolute discretion. This may mean that, regardless of corporate, business unit and individual performance, Northern Trust shall have the sole and absolute discretion to reduce the amount of any payment with respect to any award that would otherwise be made to any Participant or to decide that no payment shall be made.

3.3 Plan Incentive Pool. At the beginning of each Plan Year, (i) the Committee shall determine a corporate earnings target and projected funding for awards under the Plan and (ii) Business Unit Management shall determine appropriate earnings targets, performance standards, and projected funding for awards to Participants in their respective business unit. Authorized Senior Managers shall have the right to either increase or decrease the original projected funding amount for the corporate and business unit levels due to actual results and each business unit’s relative contribution to actual results, effective risk management, or for any other reason as such Authorized Senior Managers deem fit in their sole and absolute discretion; provided, however, that the funding amount for the entire Plan with respect to such Plan Year may not exceed the funding level established by the Committee without approval. Where funding is reduced in respect of corporate or business unit amounts, this may result in no incentive payout, regardless

3

of individual performance or any other factors. In addition, the funding amount is subject to final approval by, and may be further reduced by, the Committee after the end of the applicable Performance Period.

3.4 Individual Performance Measures, Award Determinations and Eligibility for Payment.

a. Individual Performance Measures. Each Participant shall receive performance expectations, including a risk management expectation, for the Plan Year that shall consist of both objective goals and subjective performance assessments. Each Participant’s manager shall establish the Participant’s performance expectations, including a risk management expectation, as early in the applicable Performance Period as practicable.

b. Individual Award Determinations. All awards (if any) shall be impacted by available Plan funding, as determined and adjusted by Northern Trust, in its sole and absolute discretion. Awards (if any) shall be determined by Business Unit Management after the end of the applicable Performance Period, based upon an assessment of individual performance during the applicable Performance Period, taking into consideration: (i) individual performance expectations, including the risk management expectation; (ii) overall contributions to corporate and business unit earnings, relative to peers; and (iii) competitiveness of a Participant’s total compensation. Both quantitative and qualitative performance criteria will be used to evaluate performance and formula-driven performance measures may be one of several factors for determination of award amounts. Northern Trust has the full and absolute discretion both during and after the Performance Period through the actual Settlement Date, not to make an award or to adjust all awards up or down based on a subjective performance evaluation, funding considerations, and any other factors which Northern Trust, in its sole and absolute discretion, determines appropriate. In addition to the foregoing, all awards must also comply with applicable regulatory requirements and may be risk-adjusted within Northern Trust's discretion for all individual employees or groups of employees who, individually or collectively, may expose Northern Trust to more substantial amounts of risk.

c. Conditions on Eligibility for Payment of Award. In order for a Participant to remain eligible for payment of an award, the Participant must continue employment in Good Standing with the business unit that designated him or her as a Participant, and contribute toward the achievement of corporate and business unit goals through the Settlement Date, except as otherwise required to comply with applicable local law; provided, however, a Participant who was designated by a business unit for participation and transfers to another business unit during the applicable Performance Period may, as determined by Business Unit Management of the transferring business unit in its sole discretion, be determined eligible for a pro-rata portion of the award based on service performed for the transferring business unit during the applicable Performance Period, provided that the corporate and business unit goals and individual performance expectations, and any other factors which Northern Trust may determine applicable, are achieved. Notwithstanding the foregoing, Business Unit Management may, in its sole and absolute discretion, determine that a pro-rata award shall be paid in the event of termination of employment with Northern Trust by a Participant on account of death, Disability, Retirement, or

4

involuntary termination during the applicable Performance Period by Northern Trust without Cause, such as due to job elimination or redundancy, taking into consideration the portion of the Performance Period during which Participant was employed, the individual performance of the Participant during such portion of the Performance Period, and the availability of corporate, business unit and individual performance measurements as of the date of termination and any other factors as Northern Trust may from time to time take into account. A Participant who terminates employment by resigning (other than due to Retirement) before the Settlement Date or whose employment is terminated by Northern Trust for Cause shall not be entitled to any award or prorated award under this Plan.

3.5 Payment of Awards. After the end of the Performance Period, Northern Trust shall make recommendations with respect to the final funding amount for such Performance Period, and whether each Participant’s award shall be settled in cash, a grant of equity-based compensation under the Corporation’s equity plan then in effect, or a combination thereof. Such recommendations (including the terms and conditions of each equity grant, which may include, but are not limited to, a vesting schedule and possible forfeiture upon the occurrence of specified events (such as termination of employment, regulatory events, risk-based events or behaviors, or changes in business conditions)), shall be subject to the review and approval of the Committee, and no grant of any equity awards shall occur until the date of Committee approval. Notwithstanding anything herein to the contrary, until the Settlement Date of the award, Northern Trust may in its absolute and sole discretion reduce or eliminate any award. It is intended that all cash-settled awards made under the Plan shall constitute short-term deferrals for purposes of Section 409A of the Code, and shall be paid by March 15th following the year in which the Participant’s substantial risk of forfeiture lapses and that all other awards hereunder shall constitute short-term deferrals for purposes of Section 409A of the Code or comply with Section 409A of the Code and the regulations thereunder, and all provisions of this Plan shall be interpreted in all events in a manner consistent with such intent.

IV.Administration

4.1 General. The Plan shall be administered by the Corporation’s Human Resources Officer and the Compensation Division of the Corporation’s Human Resources Department, subject to the powers and responsibilities delegated pursuant to Sections 4.3 and 4.4 of this Plan; provided, however, that the Plan shall be administered by the Committee with respect to the Human Resources Officer and any “executive officer” of Northern Trust, within the meaning of Section 16 of the Exchange Act. Subject to the provisions of the Plan, the Human Resources Officer shall be authorized to interpret the Plan, to establish, amend, and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. The determination of the Human Resources Officer in the administration of the Plan, as described herein, shall, upon consultation with members of the Management Group, be final and conclusive. The Authorized Senior Manager shall be responsible for final approval of all awards to be paid under the Plan, subject to any necessary Committee or Board approval required by applicable law or as specified herein.

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4.2 Administrator Powers and Responsibilities. The Human Resources Officer and the Compensation Division of the Corporation’s Human Resources Department shall have the following discretionary powers and responsibilities in addition to those described in Section 4.1:

a.    Guide incentive award calculations and determinations;

b. Review and monitor financial accruals in conjunction with the Corporation’s Controller’s Department; provided, that all awards may be subject to review and approval by the Corporation’s Accounting Department and final review and approval by the Authorized Senior Manager, prior to any award distribution;

c. Prepare any communications for Participants;

d. Participate in a yearly review of all compensation plans and arrangements to evaluate whether the designs might encourage imprudent risk-taking;

e. Participate in a yearly assessment of the full range of inherent risks in order to identify those partners whose responsibilities might lead to imprudent risk-taking; and

f. Direct the processing of approved incentive awards.

4.3 Business Unit Management Powers and Responsibilities. Business Unit Management shall have the following discretionary powers and responsibilities:

a. Prepare and communicate individual performance expectations;

b. Determine and recommend awards for approval by the president or functional head of the applicable business unit; and

c. Communicate award decisions to Participants.

4.4 Risk Management Powers and Responsibilities. The Corporation’s Risk Management Department shall have the following discretionary powers and responsibilities:

a. Participate in a yearly review of all compensation plans to evaluate whether the designs might encourage imprudent risk-taking;

b. Undertake a yearly assessment of the full range of inherent risks in order to identify those partners whose responsibilities might lead to imprudent risk-taking; and

c. Participate in the design of any addendum to this Plan and any other new or revised sub-plans and addenda to assess the Plan’s effectiveness in risk modification.

V. GENERAL

5.1 Effective Date and Term of Plan. The Plan shall be effective upon its adoption by the Committee and shall continue until such time as it is terminated by the Committee or the Board. The Corporation reserves the right to suspend or terminate the Plan or to amend any or all of the provisions of the Plan, at any time, including during a Performance Period and without prior notice to Participants. The Committee may amend or modify the Plan at any time; provided, however, that the Human Resources Officer (or his or her delegate) shall have the authority to make non-material amendments or modifications to the Plan, including amendments or modifications to implement the intent of the Plan, or amendments or modifications deemed required, authorized or desirable under applicable statutes, regulations or rulings without the approval of the Committee.

6

5.2 No Right of Participation or Employment or Contractual Rights. No person shall have any right to participate in the Plan or to be granted an award opportunity under the Plan and designation for participation in this Plan for one Plan Year or a portion thereof does not establish eligibility for participation in any subsequent Plan Year or for any form of incentive or bonus compensation with respect to any subsequent period. Neither the Plan nor any award granted hereunder shall confer upon any person any right to be employed, reemployed or continue employment by Northern Trust or affect in any manner the right of Northern Trust to terminate the employment of any person with or without notice at any time for any reason without liability hereunder. Nothing herein shall confer any right or benefit or any entitlement to any benefit on any Participant unless and until a benefit is actually paid pursuant to the Plan. The adoption and maintenance of the Plan shall not be deemed to constitute a contract of employment between Northern Trust and any Participant, or to be a consideration for or an inducement or condition of any employment. Neither the Plan nor any action taken hereunder shall be construed as creating a contract or any contractually enforceable rights to any employee, retiree, former employee, or other person. The Plan is entirely discretionary in nature, with any incentive payments made only at Northern Trust’s sole and absolute discretion. Neither the provisions of the Plan nor any action taken by Northern Trust, Business Unit Management, the Human Resources Officer, the Authorized Senior Manager, the Board or the Committee pursuant to the provisions of the Plan shall be deemed to create any trust, express or implied, or any fiduciary relationship between or among Northern Trust, Business Unit Management, the Human Resources Officer, the Authorized Senior Manager, the Board, the Committee, or any employee, former employee or beneficiary thereof.

5.3 No Waiver. No failure by Northern Trust at any time to give notice of any breach by the Participant, or to require compliance with, any condition or provision of this Plan shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

5.4 Non-Assignability. Except in the event of death of a Participant, the rights and interests of the Participant under the Plan shall not be sold, transferred, assigned, pledged, encumbered, or disposed. Upon any attempt to sell, transfer, assign, pledge, encumber or otherwise dispose of any such award, such award and all rights thereunder shall immediately become null and void. In the event of a U.S.-based Participant’s death, the cash portion of the award, if any, shall be made payable to the Participant’s beneficiary, if any, as designated on the benefits online resource, My Place, but only to the extent beneficiary designations are permitted by Northern Trust. If (i) a U.S.-based Participant has not designated a beneficiary, (ii) if no designated beneficiary is living on the date of such Participant’s death or (iii) Northern Trust does not permit the designation of beneficiaries under this Plan, the cash portion of the award, if any, shall be paid to those persons who would be entitled to receive distribution of the Participant’s accounts under The Northern Trust Company Thrift-Incentive Plan as if the U.S.- based Participant had not designated a beneficiary under such plan. The equity portion of any award under the Plan shall be governed by the beneficiary designation provisions, if any, and administrative rules of the stock plan under which the equity award was granted. In the event of the death of a non-U.S.-based Participant, the Plan shall be administered in accordance with applicable local rules.

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5.5 Withholdings. Northern Trust shall have the right to require, prior to the payment of any amount pursuant to an award made hereunder, payment by the Participant of any U.S. federal, state, local or other taxes which may be required to be withheld, paid or deducted in connection with such award.

5.6 Governing Law. The Plan and each award hereunder, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States or the local law of the Participant’s jurisdiction in which the employee primarily provides services, shall be governed by the laws of the State of Illinois and construed in accordance therewith without giving effect to principles of conflicts of laws.

5.7 Compliance with Applicable Securities Requirements. It is intended that all awards payable under the Plan shall be in compliance with Regulation R of the Board of Governors of the Federal Reserve System, and similar regulations promulgated by the United States Securities and Exchange Commission. It is further intended that no awards payable under the Plan will reward or incent prohibited proprietary trading.

5.8 Other Plans. Payments pursuant to the Plan shall not be treated as compensation for purposes of any other compensation or benefit plan, program or arrangement of Northern Trust, unless either (i) such other plan provides that compensation such as payments made pursuant to the Plan are to be considered as compensation thereunder or (b) the Board or the Committee so determines in writing. The adoption of the Plan shall not be construed as limiting the power of the Board or the Committee to adopt such other incentive arrangements as it may otherwise deem appropriate.

5.9 Binding Effect. The Plan shall be binding upon the Corporation and its successors and assigns and the Participants and their beneficiaries, personal representatives and heirs. If the Corporation becomes a party to any merger, consolidation or reorganization, then the Plan shall remain in full force and effect as an obligation of the Corporation or its successors in interest, unless the Plan is amended or terminated pursuant to Section 5.1.

5.10 Unfunded Arrangement. The Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Corporation for payment of any benefit hereunder. No Participant shall have any interest in any particular assets of the Corporation or any of its affiliates by reason of the right to receive a benefit under the Plan and any such Participant shall have only the rights of an unsecured creditor of the Corporation with respect to any rights under the Plan.

5.11 Awards Subject to Clawback. The awards granted under this Plan and any cash payment, equity award or shares of Common Stock delivered pursuant to such an award are subject to forfeiture, recovery by the Corporation or other action pursuant to the applicable award agreement, addendum to this Plan or any clawback or recoupment policy which the Corporation may adopt from time to time, including without limitation the Northern Trust Corporation Policy on Recoupment and the Northern Trust UK Policy on Malus and Clawback and any other policy which the Corporation may be required to adopt under the Dodd-Frank Wall Street Reform and

8

Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

5.12 Foreign Employees. Without amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals and/or reside outside of the United States on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purpose of this Plan and, in furtherance of such purpose the Committee may make such modifications, amendments, addendum, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which Northern Trust operates or has employees.

5.13 Protected Rights. Nothing contained in this Plan is intended to limit the Participant’s ability to (i) report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”), (ii) communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Corporation or (iii) under applicable United States federal law to (A) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (B) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

.

LOCAL ADDENDUM

9

Canada

In order to be eligible to receive any payment under the Plan, the Participant must be “Actively Employed” by Northern Trust on the Settlement Date. “Actively Employed” or “Active Employment” means a Participant is employed and actively performing employment duties for the Company, or is on a leave of absence approved by the Company. “Actively Employed” or “Active Employment” does not include any period during, or in respect of which the Participant is receiving or is entitled to receive payments in lieu of notice of termination, severance pay or damages for wrongful dismissal, in each case, under statute, contract, common law or otherwise. A person is not Actively Employed if his or her employment has been terminated by the person’s resignation or by the Company, regardless of whether the person’s employment has been terminated with or without cause, with or without notice, lawfully or unlawfully. No part of any payment under the Plan shall be included in any entitlement which Participant may have to payment in lieu of notice of termination, severance pay or damages for wrongful dismissal, in each case, under statute, contract, common law or otherwise.

India

Any awards made under the Plan are not and shall not be deemed or construed to be wages, allowances, compensation or benefits payable to the employee either under their contract of employment or under any applicable law.

Northern Trust EMEA Locations

The Northern Trust Corporation has entities that are regulated by the Central Bank of Ireland, the Luxembourg Commission de Surveillance du Secteur Financier and the United Kingdom Prudential Regulation Authority and/or the United Kingdom Financial Conduct Authority (collectively referred to as “Regulated Entities”). These Regulated Entities are subject to restrictions in respect of the incentive compensation that can be paid to partners classified as:

•material risk takers (“MRT”)

identified in accordance with the criteria set out in Directive 2013/36/EU of the European Parliament and of the Council and the Commission Delegated Regulation (EU) No 604/2014 which supplements Directive 2013/36/EU, and any subsequent iterations or amendments to these regulations or any secondary legislation, rules, regulations, procedures and guidelines made pursuant thereto; and/or

•identified staff (“IS”)

identified in accordance with the European Securities and Markets Authority’s (“ESMA”) guidelines on sound remuneration policies under the EU Alternative Investment Fund Managers Directive (2011/61/EU) and/or the ESMA guidelines on sound remuneration policies under the EU Undertakings for Collective Investment in Transferable Securities Directive (2009/65/EU, as amended by Directive 2014/91/EU), and any subsequent

10

iterations or amendments to these regulations or any secondary legislation, rules, regulations, procedures and guidelines made pursuant thereto.

These regulatory classifications may impact the terms of any incentive payments a Participant in the Plan is eligible to receive and the Authorized Senior Manager reserves the right to make appropriate changes to the terms upon which any incentive payments are made to the Participant to reflect these regulatory requirements and applicable remuneration policies.

In respect of only those Participants designated as MRTs and/or IS, in addition to the discretions reserved by Northern Trust in the Plan, and notwithstanding any terms of the Plan to the contrary, in the event that a Participant’s employment terminates by reason of resignation, the Authorized Senior Manager may, at its absolute discretion, elect to pay a pro-rata award in respect of the Plan Year in which employment terminates, and/or to pay any unpaid award referable to a previous Plan Year.

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EX-21

Exhibit 21

NORTHERN TRUST CORPORATION SUBSIDIARIES AS OF FEBRUARY 28, 2022

	Percent Owned	Jurisdiction of Incorporation
The Northern Trust Company	100%	Illinois
Equity Data Science, Inc.	18.2%	Delaware
Equity Data Science India Private Limited	99.9%	India
MFC Company, Inc.	100%	Delaware
Norlease, Inc.	100%	Delaware
Northern CDE Corporation	100%	Illinois
Northern Operating Solutions Private Limited	100%	India
Northern Trust Company of California	100%	California
Northern Trust Guernsey Holdings Limited	100%	Guernsey
Northern Trust (Guernsey) Limited	100%	Guernsey
Northern Trust Hedge Fund Services LLC	100%	Delaware
Northern Trust Holdings Limited	100%	England
Northern Trust Global Services SE	100%	Luxembourg
Northern Trust Investments, Inc.	100%	Illinois
Belvedere Advisors LLC	100%	California
Northern Trust Global Investments Japan, K.K.	100%	Japan
Northern Trust Investor Services Limited	100%	England
NT Property Nominees 1A Limited	100%	England
NT Property Nominees 1B Limited	100%	England
Northern Trust Pension Plan (Guernsey) Limited	100%	Guernsey
Nortrust Nominees Limited	100%	England
NT Partnership Rep, LLC	100%	Illinois
NTC-Dormae NMTC Fund, LLC	100%	Delaware
The Northern Trust Company of Delaware	100%	Delaware
The Northern Trust Company of Nevada	100%	Nevada
The Northern Trust Company UK Pension Plan Limited	100%	England
The Northern Trust Company, Canada	100%	Ontario, Canada
The Northern Trust International Banking Corporation	100%	Edge Act
Northern Operating Services Private Limited	100%	India
Northern Trust Cayman International, Ltd.	100%	Cayman Islands, BWI
Northern Trust Equities Limited	100%	England
Northern Trust Fund Managers (Ireland) Limited	100%	Ireland
Northern Trust Global Fund Services Cayman Limited	100%	Cayman Islands, BWI
Northern Trust Management Services Asia Pte. Ltd.	100%	Singapore
Northern Operating Services Asia Inc.	99.99%	Philippines
The Northern Trust Company of Hong Kong Limited	100%	Hong Kong
Northern Trust Management Services Limited	100%	England
Northern Trust Global Investments Limited	100%	England
Northern Trust Partners Scotland Limited	100%	Scotland
Northern Trust Securities LLP	100%	England
NT Global Advisors, Inc.	100%	Ontario, Canada
The Northern Trust Scottish Limited Partnership	100%	Scotland
Northern Trust (Ireland) Limited	100%	Ireland
Northern Trust Fiduciary Services (Ireland) Limited	100%	Ireland
Northern Trust Fund Services (Ireland) Limited	100%	Ireland
Northern Trust International Fund Administration Services (Ireland) Limited	100%	Ireland
Northern Trust Management Services (Ireland) Limited	100%	Ireland

	Percent Owned	Jurisdiction of Incorporation
Northern Trust Nominees (Ireland) Limited	100%	Ireland
Northern Trust Pension Trustees (Ireland) Limited	100%	Ireland
Northern Trust GFS Holdings Limited	100%	Guernsey
Northern Trust Fiduciary Services (Guernsey) Limited	100%	Guernsey
Arnold Limited	100%	Guernsey
Doyle Administration Limited	100%	Guernsey
Barfield Nominees Limited	100%	Guernsey
Truchot Limited	100%	Guernsey
Vivian Limited	100%	Guernsey
Northern Trust International Fund Administration Services (Guernsey) Limited	100%	Guernsey
Admiral Nominees Limited	100%	Guernsey
Nelson Representatives Limited	100%	Guernsey
Northern Trust Management Services (Deutschland) GmbH i.L.	100%	Germany
NT EBT Limited	100%	England
The Northern Trust Company of Saudi Arabia (a closed joint stock company)	100%	Kingdom of Saudi Arabia
TNT-APF NMTC Fund, LLC	100%	Illinois
TNT-BH NMTC Fund, LLC	100%	Illinois
Northern CDE 10, LLC	100%	Illinois
TNT-CASFV NMTC Fund, LLC	100%	Illinois
Northern CDE 7, LLC	100%	Illinois
TNT-Clinica Tepeyac NMTC Fund, LLC	100%	Illinois
TNT-Colorado Coalition NMTC Fund, LLC	100%	Illinois
TNT-DHA NMTC Fund, LLC	100%	Illinois
Northern CDE 2, LLC	100%	Illinois
TNT-Eastside NMTC Fund, LLC	100%	Illinois
Northern CDE 1, LLC	100%	Illinois
TNT-GLCAC NMTC Fund, LLC	100%	Illinois
TNT-GNG NMTC Fund, LLC	100%	Illinois
TNT-Guadalupe NMTC Fund, LLC	100%	Illinois
TNT-HCCH NMTC Fund, LLC	100%	Illinois
TNT-HHO NMTC Fund, LLC	100%	Illinois
Northern CDE 5, LLC	100%	Illinois
TNT-HopeWorks NMTC Fund, LLC	100%	Illinois
Northern CDE 6, LLC	100%	Illinois
TNT-HW 1 NMTC Fund, LLC	100%	Illinois
TNT-IndieDwell NMTC Fund, LLC	100%	Illinois
Northern CDE 8, LLC	100%	Illinois
TNT-Indigo NMTC Fund, LLC	100%	Illinois
TNT-Jewel NMTC Fund, LLC	100%	Illinois
TNT-JT NMTC Fund, LLC	100%	Illinois
TNT-Live6 NMTC Fund, LLC	100%	Illinois
TNT-Marygrove NMTC Fund, LLC	100%	Illinois
TNT-ML NMTC Fund, LLC	100%	Illinois
TNT-New Legacy NMTC Fund, LLC	100%	Illinois
TNT-Overtown NMTC Fund, LLC	100%	Illinois
TNT-PBSA NMTC Fund, LLC	100%	Illinois

2

	Percent Owned	Jurisdiction of Incorporation
Northern CDE 3, LLC	100%	Illinois
TNT-RWA NMTC Fund, LLC	100%	Illinois
Northern CDE 9, LLC	100%	Illinois
TNT-Student U NMTC Fund, LLC	100%	Illinois
Northern CDE 4, LLC	100%	Illinois
TNT-WBP NMTC Fund, LLC	100%	Illinois
50 South Capital Advisors, LLC	100%	Delaware
Equilend Holdings LLC	10%	Delaware
Northern Trust European Holdings Limited	100%	England
Northern Trust Securities, Inc.	100%	Delaware
Northern Trust Services, Inc.	100%	Illinois
Nortrust Realty Management, Inc.	100%	Illinois
Parilux Investment Technology, LLC	100%	New Jersey

3

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements (No. 333‑180827, 333-144848, 333-86418, 333-212602 and 333-217477) on Form S-8 and the registration statement (No. 333-240299) on Form S-3 of our reports dated February 28, 2022, with respect to the consolidated financial statements of Northern Trust Corporation and the effectiveness of internal control over financial reporting.

Chicago, Illinois

February 28, 2022

EX-31.1

Exhibit 31.1

Certification of CEO Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael G. O’Grady, certify that:

1.I have reviewed this report on Form 10-K for the year ended December 31, 2021 of Northern Trust Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2022	/s/    Michael G. O’Grady
		Michael G. O’Grady
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of CFO Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Jason J. Tyler, certify that:

1.I have reviewed this report on Form 10-K for the year ended December 31, 2021 of Northern Trust Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2022	/s/    Jason J. Tyler
		Jason J. Tyler
		Chief Financial Officer
		(Principal Financial Officer)

EX-32

Exhibit 32

Certifications of CEO and CFO Pursuant to

18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Northern Trust Corporation (the “Corporation”) on Form 10-K for the period ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Michael G. O’Grady, as Chief Executive Officer of the Corporation, and Jason J. Tyler, as Chief Financial Officer of the Corporation, each hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/    Michael G. O’Grady

Michael G. O’Grady

Chief Executive Officer

(Principal Executive Officer)

February 28, 2022

/s/    Jason J. Tyler

Jason J. Tyler

Chief Financial Officer

(Principal Financial Officer)

February 28, 2022

This certification accompanies the Report pursuant to section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by Northern Trust Corporation for purposes of section 18 of the Securities Exchange Act of 1934.

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Cover Page - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2021	Jan. 31, 2022	Jun. 30, 2021
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-36609
Entity Registrant Name	NORTHERN TRUST CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2723087
Entity Address, Address Line One	50 South La Salle Street
Entity Address, City or Town	Chicago,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60603
City Area Code	312
Local Phone Number	630-6000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth	false
Entity Small Business	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 24.0
Entity Common Stock, Shares Outstanding (in shares)		207,898,329
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0000073124
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $1.66 2/3 Par Value
Trading Symbol	NTRS
Security Exchange Name	NASDAQ
Series E Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock
Trading Symbol	NTRSO
Security Exchange Name	NASDAQ

XML

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Location	Chicago, IL
Auditor Name	KPMG LLP
Auditor Firm ID	185

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and Due from Banks	$ 3,056.8	$ 4,389.5
Federal Reserve and Other Central Bank Deposits	64,582.2	55,503.6
Interest-Bearing Deposits with Banks	1,949.4	4,372.6
Securities Purchased under Agreements to Resell	686.4	1,596.5
Debt Securities
Available for Sale (Amortized cost of $37,948.5 and $41,155.7)	38,010.5	42,022.0
Held to Maturity (Fair value of $23,315.4 and $17,797.4)	23,564.5	17,791.1
Trading Account	0.3	0.5
Total Debt Securities	61,575.3	59,813.6
Loans and Leases
Total loans and leases	40,480.6	33,759.7
Allowance for Credit Losses	(150.6)	(198.8)
Buildings and Equipment	488.7	514.9
Client Security Settlement Receivables	1,941.2	1,160.2
Goodwill	706.2	707.2
Other Assets	8,573.6	8,384.9
Total Assets	183,889.8	170,003.9
Deposits
Demand and Other Noninterest-Bearing	22,028.2	17,728.5
Savings, Money Market and Other Interest-Bearing	35,003.1	28,631.8
Savings Certificates and Other Time	842.7	937.1
Non U.S. Offices — Noninterest-Bearing	26,287.3	25,382.2
Non U.S. Offices Interest-Bearing	75,767.1	71,198.4
Total Deposits	159,928.4	143,878.0
Federal Funds Purchased	0.2	260.2
Securities Sold Under Agreements to Repurchase	531.9	39.8
Other Borrowings	3,583.8	4,011.5
Senior Notes	2,505.5	3,122.4
Long-Term Debt	1,145.7	1,189.3
Floating Rate Capital Debt	0.0	277.8
Other Liabilities	4,177.5	5,536.6
Total Liabilities	171,873.0	158,315.6
STOCKHOLDERS' EQUITY
Common Stock	408.6	408.6
Additional Paid-In Capital	939.3	963.6
Retained Earnings	13,117.3	12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)	428.0
Treasury Stock	(3,297.7)	(3,204.5)
Total Stockholders’ Equity	12,016.8	11,688.3
Total Liabilities and Stockholders’ Equity	183,889.8	170,003.9
Commercial
Loans and Leases
Total loans and leases	18,487.4	15,262.0
Personal
Loans and Leases
Total loans and leases	21,993.2	18,497.7
Series D Preferred Stock
STOCKHOLDERS' EQUITY
Preferred Stock	493.5	493.5
Series E Preferred Stock
STOCKHOLDERS' EQUITY
Preferred Stock	$ 391.4	$ 391.4

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Available for sale, amortized cost	$ 37,948.5	$ 41,155.7
Held to maturity, fair value	23,315.4	17,797.4
Financing receivable, deferred commitment fee	$ 10.4	$ 9.8
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 1.6667	$ 1.6667
Common stock, shares authorized (in shares)	560,000,000	560,000,000
Common stock, shares outstanding (in shares)	207,761,875	208,289,178
Treasury stock, shares (in shares)	37,409,649	36,882,346
Series D Preferred Stock
Preferred stock, shares outstanding (in shares)	5,000	5,000
Series E Preferred Stock
Preferred stock, shares outstanding (in shares)	16,000	16,000

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Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$ 4,361.1	$ 3,995.0	$ 3,852.1
Foreign Exchange Trading Income	292.6	290.4	250.9
Treasury Management Fees	44.3	45.4	44.5
Security Commissions and Trading Income	140.2	133.2	103.6
Other Operating Income	243.9	194.0	145.5
Investment Security Losses, net	(0.3)	(0.4)	(1.4)
Total Noninterest Income	5,081.8	4,657.6	4,395.2
Net Interest Income
Interest Income	1,406.5	1,643.5	2,499.9
Interest Expense	23.8	200.3	822.0
Net Interest Income	1,382.7	1,443.2	1,677.9
Provision for Credit Losses	(81.5)	125.0	(14.5)
Net Interest Income after Provision for Credit Losses	1,464.2	1,318.2	1,692.4
Noninterest Expense
Compensation	2,011.0	1,947.1	1,859.0
Employee Benefits	431.4	387.7	355.2
Outside Services	849.4	763.1	774.5
Equipment and Software	736.3	673.5	612.1
Occupancy	208.7	230.1	212.9
Other Operating Expense	299.1	346.7	329.8
Total Noninterest Expense	4,535.9	4,348.2	4,143.5
Income before Income Taxes	2,010.1	1,627.6	1,944.1
Provision for Income Taxes	464.8	418.3	451.9
NET INCOME	1,545.3	1,209.3	1,492.2
Preferred Stock Dividends	41.8	56.2	46.4
Net Income Applicable to Common Stock	$ 1,503.5	$ 1,153.1	$ 1,445.8
PER COMMON SHARE
Net Income - Basic (in dollars per share)	$ 7.16	$ 5.48	$ 6.66
Net Income - Diluted (in dollars per share)	$ 7.14	$ 5.46	$ 6.63
Average Number of Common Shares Outstanding - Basic (in shares)	208,075,522	208,319,412	214,525,547
Average Number of Common Shares Outstanding - Diluted (in shares)	208,899,230	209,007,986	215,601,149

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net Income	$ 1,545.3	$ 1,209.3	$ 1,492.2
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
Net Unrealized Gains (Losses) on Available for Sale Debt Securities	(534.7)	527.8	228.9
Net Unrealized Gains (Losses) on Cash Flow Hedges	0.8	0.5	(7.7)
Net Foreign Currency Adjustments	10.5	26.9	49.9
Net Pension and Other Postretirement Benefit Adjustments	59.8	67.5	(12.1)
Other Comprehensive Income (Loss)	(463.6)	622.7	259.0
Comprehensive Income	$ 1,081.7	$ 1,832.0	$ 1,751.2

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect Adjustment related to the adoption of Accounting Standards Update 2016-13	Adjusted Balance	PREFERRED STOCK	PREFERRED STOCK Adjusted Balance	COMMON STOCK	COMMON STOCK Adjusted Balance	ADDITIONAL PAID-IN CAPITAL	ADDITIONAL PAID-IN CAPITAL Adjusted Balance	RETAINED EARNINGS	RETAINED EARNINGS Cumulative Effect Adjustment related to the adoption of Accounting Standards Update 2016-13	RETAINED EARNINGS Adjusted Balance	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Adjusted Balance	TREASURY STOCK	TREASURY STOCK Adjusted Balance
Balance, beginning of period at Dec. 31, 2018	$ 10,508.3			$ 882.0		$ 408.6		$ 1,068.5		$ 10,776.8			$ (453.7)		$ (2,173.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	Accounting Standards Update 2016-13 [Member]
Net Income	$ 1,492.2									1,492.2
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	259.0												259.0
Dividends – Common Stock	(565.9)									(565.9)
Preferred Stock	(46.4)									(46.4)
Issuance of Preferred Stock	391.4			391.4
Stock Awards and Options Exercised	152.6							(55.4)							208.0
Stock Purchased	(1,100.2)														(1,100.2)
Balance, end of period at Dec. 31, 2019	11,091.0	$ (10.1)	$ 11,080.9	1,273.4	$ 1,273.4	408.6	$ 408.6	1,013.1	$ 1,013.1	11,656.7	$ (10.1)	$ 11,646.6	(194.7)	$ (194.7)	(3,066.1)	$ (3,066.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	1,209.3									1,209.3
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	622.7												622.7
Dividends – Common Stock	(592.0)									(592.0)
Preferred Stock	(44.7)									(44.7)
Redemption of Preferred Stock, Series C	(400.0)			(388.5)						(11.5)
Stock Awards and Options Exercised	111.9							(49.5)							161.4
Stock Purchased	(299.8)														(299.8)
Balance, end of period at Dec. 31, 2020	11,688.3			884.9		408.6		963.6		12,207.7			428.0		(3,204.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	1,545.3									1,545.3
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)	(463.6)												(463.6)
Dividends – Common Stock	(593.9)									(593.9)
Preferred Stock	(41.8)									(41.8)
Stock Awards and Options Exercised	150.1							(24.3)							174.4
Stock Purchased	(267.6)														(267.6)
Balance, end of period at Dec. 31, 2021	$ 12,016.8			$ 884.9		$ 408.6		$ 939.3		$ 13,117.3			$ (35.6)		$ (3,297.7)

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared (in USD per share)	$ 2.80	$ 2.80	$ 2.60

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 1,545.3	$ 1,209.3	$ 1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Investment Security (Losses) Gains, net	0.3	0.4	1.4
Amortization and Accretion of Securities and Unearned Income, net	99.7	88.9	64.6
Provision for Credit Losses	(81.5)	125.0	(14.5)
Depreciation and Amortization	515.6	500.3	458.9
Change in Accrued Income Taxes	37.2	25.4	(70.7)
Pension Plan Contributions	(11.2)	(15.6)	(6.1)
Deferred Income Tax Provision	2.0	16.4	34.3
Change in Receivables	(460.9)	4.5	(50.3)
Change in Interest Payable	(7.8)	(23.6)	(23.6)
Change in Collateral With Derivative Counterparties, net	(466.5)	(17.8)	1,154.0
Other Operating Activities, net	183.8	(16.4)	(448.2)
Net Cash Provided by Operating Activities	1,356.0	1,896.8	2,592.0
CASH FLOWS FROM INVESTING ACTIVITIES
Change in Federal Funds Sold	0.0	5.0	129.0
Change in Securities Purchased under Agreements to Resell	897.7	(700.9)	357.3
Change in Interest-Bearing Deposits with Banks	2,344.5	712.6	(614.6)
Net Change in Federal Reserve and Other Central Bank Deposits	(9,970.4)	(19,845.2)	(3,683.2)
Purchases of Held to Maturity Debt Securities	(54,734.9)	(40,187.9)	(14,154.3)
Proceeds from Maturity and Redemption of Held to Maturity Debt Securities	54,902.6	35,658.6	16,290.9
Purchases of Available for Sale Debt Securities	(13,896.2)	(10,886.8)	(12,811.0)
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities	10,079.0	8,748.2	11,057.2
Change in Loans and Leases	(6,744.7)	(2,316.7)	1,087.9
Purchases of Buildings and Equipment	(95.5)	(135.8)	(158.0)
Purchases and Development of Computer Software	(419.6)	(424.6)	(441.8)
Change in Client Security Settlement Receivables	(801.4)	(226.8)	821.0
Acquisition of a Business, Net of Cash Received	0.0	0.0	(10.5)
Bank-Owned Life Insurance Policy Premiums	0.0	0.0	(1,500.0)
Other Investing Activities, net	(163.7)	(322.7)	225.1
Net Cash Used in Investing Activities	(18,602.6)	(29,923.0)	(3,405.0)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in Deposits	17,885.5	32,137.9	4,263.6
Change in Federal Funds Purchased	(260.0)	(292.7)	(2,041.3)
Change in Securities Sold under Agreements to Repurchase	492.1	(450.0)	320.9
Change in Short-Term Other Borrowings	(426.5)	(2,698.3)	(1,184.5)
Redemption of Preferred Stock - Series C	0.0	(400.0)	0.0
Proceeds from Senior Notes	0.0	993.2	498.0
Repayments of Senior Notes	(500.0)	(508.6)	0.0
Repayment of Floating Rate Capital Debt	(278.8)	0.0	0.0
Proceeds from Issuance of Preferred Stock - Series E	0.0	0.0	392.5
Treasury Stock Purchased	(267.6)	(299.8)	(1,100.2)
Net Proceeds from Stock Options	53.8	19.5	44.0
Cash Dividends Paid on Common Stock	(583.3)	(584.6)	(529.7)
Cash Dividends Paid on Preferred Stock	(41.8)	(45.9)	(46.4)
Other Financing Activities, net	0.1	1.2	(1.0)
Net Cash Provided by Financing Activities	16,073.5	27,871.9	615.9
Effect of Foreign Currency Exchange Rates on Cash	(159.6)	84.6	74.7
Change in Cash and Due from Banks	(1,332.7)	(69.7)	(122.4)
Cash and Due from Banks at Beginning of Period	4,389.5	4,459.2	4,581.6
Cash and Due from Banks at End of Period	3,056.8	4,389.5	4,459.2
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest Paid	30.8	226.8	845.5
Income Taxes Paid	371.0	327.7	437.0
Transfers from Loans to OREO	12.9	0.2	3.5
Transfers from Available for Sale Debt Securities to Held to Maturity Debt Securities	6,864.1	301.5	160.8
Transfers to Leases Held For Sale from Leases	$ 0.0	$ 0.0	$ 53.6

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. A description of the more significant accounting policies follows.

A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation.

B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank.

Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business.

C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.

Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.

D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange.

Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity.

E. Securities. Available for Sale (AFS) Securities are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on AFS securities are determined on a specific identification basis and are reported within Investment Security Losses, net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount.

Held to Maturity (HTM) Securities consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount.

Held for Trading Securities are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income.

Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 29, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits.

F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

G. Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net.

Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges.

Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter.

Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities, foreign currency denominated investment securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of available for sale investment securities, to the extent all

terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method.

Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary.

Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item.

H. Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, net, non-U.S. and other. The classes within the personal segment have been defined as residential real estate, private client and other.

Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value. Undrawn commitments relating to loans that are not held for sale are recorded in Other Liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated expected losses.

Nonaccrual Loans and Recognition of Income. Interest income on loans and leases is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial

condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms.

Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). All TDRs are reported starting in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported if the loan was modified at a market rate and has performed according to the modified terms for at least six payment periods. A loan that has been modified at a below market rate will return to accrual status if it satisfies the six-payment-period performance requirement.

The expected credit loss is measured based upon the present value of expected future cash flows, discounted at the effective interest rate based on the original contractual rate. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is calculated based on the factor as it changes over the life of the loan. Northern Trust elected not to project changes in the factor for purposes of estimating expected future cash flows. Further, Northern Trust elected not to adjust the effective interest rate for prepayments. If the loan is collateral dependent, the expected loss is measured based on the fair value of the collateral at the reporting date.

If the loan valuation is less than the recorded value of the loan, either an allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $1 million) homogeneous loans are collectively evaluated. Northern Trust’s accounting policies for material nonaccrual loans is consistent across all classes of loans and leases.

All loans and leases with TDR modifications are evaluated for additional expected credit losses. The nature and extent of further deterioration in credit quality, including a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses.

Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral.

Premium, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield.

I. Allowance for Credit Losses.

2021 and 2020 Allowance for Credit Losses after the Adoption of Accounting Standards Update No. 2016-13

As of December 31, 2021 and 2020, the allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships.

Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts.

Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period (currently two years) to project future conditions. Management determines the probability weights assigned to each scenario at each quarter-end. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, unemployment, and real estate price indices, as well as financial market factors such as equity prices, volatility, and credit spreads. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters.

Allowance for Loans and Leases. The allowance estimation methodology for the collective assessment is primarily based on internally developed loss data specific to the Northern Trust financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments based on similar risk characteristics or risk monitoring methods.

Northern Trust utilizes a quantitative probability of default/loss given default approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the

exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment of the loan portfolio.

The allowance related to credit exposure evaluated on an individual basis is determined through an individual evaluation of loans, leases, and lending-related commitments that have defaulted, generally those with Borrower Ratings of 8 and 9, that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework.

As of December 31, 2021 and 2020, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses.

Allowance for HTM Securities. HTM debt securities classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero.

HTM debt securities classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support.

HTM debt securities classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance.

The allowance estimation methodology for all other HTM debt securities is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative component of the allowance.

Allowance for AFS Securities. AFS securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security.

Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for those other financial assets presented in Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for other financial assets primarily utilizes a similar approach as used for the HTM debt securities portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss.

The portion of the allowance assigned to loans and leases, HTM debt securities, and other financial assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS securities on the consolidated balance sheets.

The Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates and the amount of the Provision for Credit Losses may be either greater than or less than actual net charge-offs.

Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are typically not considered since it is not Northern Trust’s practice to enter into arrangements where the borrower has the unconditional option to renew, or a conditional extension option whereby the conditions are beyond Northern Trust’s control.

Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the quarter the financial asset is moved from an accrual to a nonaccrual status.

2019 Allowance for Credit Losses prior to the Adoption of Accounting Standards Update No. 2016-13

Allowance for Loans and Leases under the Previous “Incurred Loss” Model. As of December 31, 2019, the Allowance for Credit Losses represented management’s estimate of probable losses which occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures were regularly reviewed to evaluate the level of the Allowance for Credit Losses. In determining an appropriate allowance level, Northern Trust evaluated the allowance necessary for impaired loans and lending-related commitments and also estimated losses inherent in other lending-related credit exposures. The allowance for credit losses consisted of the following components:

Specific Allowance. A loan was considered to be impaired when, based on existing information and events, management determined that it was probable that Northern Trust would be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans were identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status were critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, lease financing, net, non-U.S., and commercial-other classes related to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. The specific allowance was determined through an individual evaluation of loans and lending-related commitments considered impaired that was based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, was determined based on the value of the underlying real estate collateral, third-party appraisals were typically obtained and utilized by management. These appraisals were generally less than twelve months old and were subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Inherent Allowance. The inherent allowance estimation methodology was based on internally developed loss data specific to the Northern Trust loan and lease portfolio. The estimation methodology and the related qualitative adjustment framework segregated the loan and lease portfolio into homogeneous segments. For each segment, the probability of default and the loss given default were applied to the total exposure at default to determine a quantitative inherent allowance. The quantitative inherent allowance was then reviewed within the qualitative adjustment framework, where management applied judgment by assessing internal risk factors, potential limitations in the quantitative methodology and environmental factors that were not fully contemplated in the quantitative methodology to compute an adjustment to the quantitative inherent allowance for each segment of the loan portfolio.

The results of the inherent allowance estimation methodology were reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee, which included representatives from Credit Risk Management, reporting segment management, and Corporate Finance.

Loans, leases, and other extensions of credit deemed uncollectible were charged to the Allowance for Credit Losses. Subsequent recoveries, if any, were credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases were consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability was in question were charged-off or a specific reserve was established were based on

management’s assessment as to the level of certainty regarding the amount of loss. The Provision for Credit Losses, which was charged to income, was the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above processes.

As of December 31, 2019, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default included an estimated drawdown of unused credit based on a credit conversion factor. The proportionate amount of the quantitative methodology calculation after any required adjustment in the qualitative framework resulted in the required allowance for undrawn loan commitments and standby letters of credit as of the reporting date.

The portion of the allowance assigned to loans and leases was reported as a contra asset, directly following loans and leases in the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit was reported in Other Liabilities on the consolidated balance sheets.

Other-Than-Temporary Impairment (OTTI) related to Securities. As of December 31, 2019, a security was considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected was less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security was less than the security’s amortized cost basis and the investor intended, or more-likely-than-not would have been required, to sell the security before recovery of the security’s amortized cost basis. If OTTI existed, the charge to earnings was limited to the amount of credit loss if the investor did not intend to sell the security, and it was more-likely-than-not that it would not have been required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost was recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost was charged to earnings.

J. Standby Letters of Credit. Fees on standby letters of credit are recognized in Other Operating Income on the consolidated statements of income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments.

K. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years.

L. Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in Other Assets on the consolidated balance sheets. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the Allowance for Credit Losses assigned to Loans and Leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within Other Operating Expense on the consolidated statements of income.

M. Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. Fees paid for the use of software services that do not convey a software license are expensed as incurred.

Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable.

N. Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on an accrual basis, over the period in which the service is provided. Fees are primarily a function of the market value of assets custodied, managed and serviced, transaction volumes, and securities lending volume and spreads, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes.

O. Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day as well as custody client security sales executed under contractual settlement date accounting that have not yet settled. Northern Trust advances cash to the client on the date of either client withdrawal or trade execution and awaits collection from either the short-term investment funds or via the settled trade.

P. Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates.

Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded on the consolidated financial statements. A valuation allowance is established for deferred tax assets if it is more-likely-than-not that all or a portion will not be realized. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes on the consolidated statements of income.

Q. Cash Flow Statements. Cash and cash equivalents in the cash flow statements have been defined as “Cash and Due from Banks” on the consolidated balance sheets.

R. Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets. Funded pension and postretirement benefits are reported in Other Assets and unfunded pension and postretirement benefits are reported in Other Liabilities on the consolidated balance sheets. Plan assets and benefit obligations are measured annually at December 31, unless specific circumstances require an interim remeasurement. Plan assets are determined based on fair value generally representing observable market prices. The projected benefit obligations are determined based on the present value of projected benefit distributions at an assumed discount rate. Pension costs are recognized ratably over the estimated working lifetime of eligible participants.

S. Share-Based Compensation Plans. Northern Trust recognizes as expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees as Compensation on the consolidated statements of income. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the closing price of the Corporation’s stock on the date of grant adjusted for certain awards that do not accrue dividends while vesting. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted.

Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for performance stock unit awards are recognized on a straight-line basis over the requisite service period of the award based on expected achievement of the performance condition. Adjustments are made for employees that meet certain eligibility criteria at the grant date or during the requisite service period.

Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on a current basis for restricted stock units granted prior to February 21, 2017 that are not yet vested, and certain deferred stock unit awards that have vested but are not yet distributed. Dividend equivalents are accrued for performance stock unit awards, most restricted stock unit awards granted on or after February 21, 2017 and director awards not yet vested, and are paid upon vesting. Certain restricted stock units granted on or after February 20, 2018 are not entitled to dividend equivalents during the vesting period. Cash flows resulting from the realization of excess tax benefits are classified as operating cash flows on the consolidated statements of cash flows.

T. Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share.

Northern Trust has issued certain restricted stock unit awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These units are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities.

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Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

On January 1, 2021, Northern Trust adopted Accounting Standards Update (ASU) No. 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (ASU 2020-01). ASU 2020-01 addresses two accounting issues: (1) application of the measurement alternative under Topic 321 in correlation with the transition into and out of the equity method under Topic 323 and (2) the measurement of certain forward contracts and purchased options to acquire equity securities. ASU 2020-01 clarifies that an entity applying the measurement alternative under Topic 321 that must transition to the equity method under Topic 323 because of an observable transaction will remeasure its investment immediately before transition, whereas an entity applying the equity method under Topic 323 that must transition to Topic 321 because of an observable transaction will remeasure its investment immediately after transition. ASU 2020-01 also clarifies that certain forward contracts or purchased call options to acquire equity securities generally will be measured using the fair value principles of Topic 321 before settlement or exercise. Upon adoption of ASU 2020-01, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 1, 2021, Northern Trust adopted ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs” (ASU 2020-08). ASU 2020-08 clarifies the Codification related to the standard issued in ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” ASU 2020-08 clarifies that an entity should amortize premiums on purchased callable debt securities to the first call date and related call amount and at that point reassess if there is a remaining premium to amortize to a subsequent call date. Upon adoption of ASU 2020-08, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 7, 2021, Northern Trust retrospectively adopted ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (ASU 2021-01). ASU 2021-01 clarifies the scope of Topic 848 to explicitly include those derivative instruments affected by changes in interest rates used for margining, discounting, or contract price alignment as eligible for certain optional expedients and exceptions in Topic 848. Upon adoption of ASU 2021-01, Northern Trust elected the expedients provided in Topic 848 with no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value under GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date.

Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers into or out of Level 3 occurred during the years ended December 31, 2021, or 2020.

Level 1 – Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised of AFS investments in U.S. Treasury securities.

Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include AFS and trading account debt securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of December 31, 2021, Northern Trust’s AFS debt securities portfolio included 2,547 Level 2 securities with an aggregate market value of $35.6 billion. All 2,547 debt securities were valued by external pricing vendors. As of December 31, 2020, Northern Trust’s AFS debt securities portfolio included 2,260 Level 2 debt securities with an aggregate market value of $39.2 billion. All 2,260 debt securities were valued by external pricing vendors. Trading

account debt securities, which totaled $0.3 million and $0.5 million as of December 31, 2021 and 2020, respectively were all valued using external pricing vendors.

Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio.

Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; credit spreads, default probabilities, and recovery rates for credit default swap contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material.

Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace.

Northern Trust’s Level 3 liabilities consist of swaps that Northern Trust entered into with the purchaser of 1.1 million and 1.0 million shares of Visa Inc. Class B common stock (Visa Class B common shares) previously held by Northern Trust and sold in June 2016 and 2015, respectively. Pursuant to the swaps, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Inc. Class A common stock (Visa Class A common shares), such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swaps also require periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swaps is determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated growth rate of the Visa Class A common share price. See “Visa Class B Common Shares” under Note 26, “Commitments and Contingent Liabilities,” for further information.

Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values.

Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Finance, C&IS and Wealth Management) reviews valuation methods and models for Level 3 assets and liabilities. Fair value measurements are performed upon acquisitions of an asset or liability. Management of the appropriate business or department reviews assumed inputs, especially when unobservable in the marketplace, in order to substantiate their use in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process in light of other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third party information is used to support the fair value measurements. If certain third party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to determine the appropriate fair value of the asset or liability.

The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2021 and 2020, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates.

TABLE 52: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$37.5 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	10.10%			10.10%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$35.3 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	8.73%			8.73%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020, segregated by fair value hierarchy level.

TABLE 53: RECURRING BASIS HIERARCHY LEVELING

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,426.1	$	—	$	—	$	—	$	2,426.1
Obligations of States and Political Subdivisions	—		3,876.1		—		—		3,876.1
Government Sponsored Agency	—		18,075.6		—		—		18,075.6
Non-U.S. Government	—		374.0		—		—		374.0
Corporate Debt	—		2,341.7		—		—		2,341.7
Covered Bonds	—		505.6		—		—		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		3,045.1		—		—		3,045.1
Other Asset-Backed	—		5,941.6		—		—		5,941.6
Commercial Mortgage-Backed	—		1,424.7		—		—		1,424.7
Total Available for Sale	2,426.1		35,584.4		—		—		38,010.5
Trading Account	—		0.3		—		—		0.3
Total Available for Sale and Trading Debt Securities	2,426.1		35,584.7		—		—		38,010.8
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		2,207.4		—		(1,530.7)		676.7
Interest Rate Contracts	—		140.0		—		(3.1)		136.9
Total Derivative Assets	—		2,347.4		—		(1,533.8)		813.6
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		1,998.8		—		(1,234.5)		764.3
Interest Rate Contracts	—		98.9		—		(48.1)		50.8
Other Financial Derivatives(1)	—		—		37.5		(0.9)		36.6
Total Derivative Liabilities	$	—	$	2,097.7	$	37.5	$	(1,283.5)	$	851.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2021, derivative assets and liabilities shown above also include reductions of $389.4 million and $139.0 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,799.9	$	—	$	—	$	—	$	2,799.9
Obligations of States and Political Subdivisions	—		3,083.6		—		—		3,083.6
Government Sponsored Agency	—		24,956.7		—		—		24,956.7
Non-U.S. Government	—		714.0		—		—		714.0
Corporate Debt	—		2,539.6		—		—		2,539.6
Covered Bonds	—		553.1		—		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		2,345.8		—		—		2,345.8
Other Asset-Backed	—		3,997.5		—		—		3,997.5
Commercial Mortgage Backed	—		1,031.8		—		—		1,031.8
Total Available for Sale	2,799.9		39,222.1		—		—		42,022.0
Trading Account	—		0.5		—		—		0.5
Total Available for Sale and Trading Debt Securities	2,799.9		39,222.6		—		—		42,022.5
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		4,260.7		—		(3,505.3)		755.4
Interest Rate Contracts	—		297.5		—		(2.5)		295.0
Total Derivatives Assets	—		4,558.2		—		(3,507.8)		1,050.4
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		4,722.5		—		(2,718.6)		2,003.9
Interest Rate Contracts	—		125.0		—		(98.5)		26.5
Other Financial Derivative(1)	—		—		35.3		—		35.3
Total Derivative Liabilities	$	—	$	4,847.5	$	35.3	$	(2,817.1)	$	2,065.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2020, derivative assets and liabilities shown above also include reductions of $1,867.8 million and $1,177.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

The following table presents the changes in Level 3 liabilities for the years ended December 31, 2021 and 2020.

TABLE 54: CHANGES IN LEVEL 3 LIABILITIES

LEVEL 3 LIABILITIES	SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
(In Millions)	2021		2020
Fair Value at January 1	$	35.3	$	33.4
Total (Gains) Losses:
Included in Earnings(1)	21.3		18.3
Purchases, Issues, Sales, and Settlements
Settlements	(19.1)		(16.4)
Fair Value at December 31	$	37.5	$	35.3
Unrealized Losses (Gains) Included in Earnings Related to Financial Instruments Held at December 31(1)	$	22.0	$	18.6

(1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income.

Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy.

Assets measured at fair value on a nonrecurring basis at December 31, 2021 and 2020, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of nonaccrual loans whose values were based on real estate and other available collateral, and of OREO properties.

Fair values of real estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes. The fair values of real estate loan collateral were subject to adjustments to reflect management’s judgment as to realizable value and consisted of discount factors ranging from 15.0% to 20.0% with a weighted average based on fair values of 15.4% and 16.8% as of December 31, 2021 and 2020, respectively. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset-specific characteristics and in limited instances third-party valuations are used. OREO assets are carried at the lower of cost or fair value less estimated costs to sell, with fair value typically based on third-party appraisals.

Collateral-based nonaccrual loans that have been adjusted to fair value totaled $15.0 million and $24.6 million at December 31, 2021 and 2020, respectively.

The following table presents the fair values of Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2021 and 2020, as well as the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for such assets as of such dates.

TABLE 55: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$15.0 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	15.4%

(1) Includes real estate collateral-based loans and other collateral-based loans.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$24.6 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	16.8%

(1) Includes real estate collateral-based loans and other collateral-based loans.

The following tables summarize the fair values of all financial instruments.

TABLE 56: FAIR VALUE OF FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	3,056.8	$	3,056.8	$	3,056.8	$	—	$	—
Federal Reserve and Other Central Bank Deposits	64,582.2		64,582.2		—		64,582.2		—
Interest-Bearing Deposits with Banks	1,949.4		1,949.4		—		1,949.4		—
Securities Purchased under Agreements to Resell	686.4		686.4		—		686.4		—
Debt Securities
Available for Sale(1)	38,010.5		38,010.5		2,426.1		35,584.4		—
Held to Maturity	23,564.5		23,315.4		47.0		23,268.4		—
Trading Account	0.3		0.3		—		0.3		—
Loans (excluding Leases)
Held for Investment	40,319.3		40,208.2		—		—		40,208.2
Held for Sale	12.3		24.5		—		24.5
Client Security Settlement Receivables	1,941.2		1,941.2		—		1,941.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140.1		140.1		—		140.1		—
Community Development Investments	959.6		959.6		—		959.6		—
Employee Benefit and Deferred Compensation	218.4		222.9		119.1		103.8		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	83,318.6	$	83,318.6	$	83,318.6	$	—	$	—
Savings Certificates and Other Time	842.7		843.8		—		843.8		—
Non U.S. Offices Interest-Bearing	75,767.1		75,767.1		—		75,767.1		—
Federal Funds Purchased	0.2		0.2		—		0.2		—
Securities Sold Under Agreements to Repurchase	531.9		531.9		—		531.9		—
Other Borrowings	3,583.8		3,583.9		—		3,583.9		—
Senior Notes	2,505.5		2,591.4		—		2,591.4		—
Long-Term Debt
Subordinated Debt	1,145.7		1,189.4		—		1,189.4		—
Other Liabilities
Standby Letters of Credit	15.7		15.7		—		—		15.7
Loan Commitments	59.8		59.8		—		—		59.8
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	245.3	$	245.3	$	—	$	245.3	$	—
Liabilities	25.5		25.5		—		25.5		—
Interest Rate Contracts
Assets	7.6		7.6		—		7.6		—
Liabilities	8.7		8.7		—		8.7		—
Other Financial Derivatives
Liabilities(2)	37.5		37.5		—		—		37.5
Client-Related and Trading
Foreign Exchange Contracts
Assets	1,962.1		1,962.1		—		1,962.1		—
Liabilities	1,973.3		1,973.3		—		1,973.3		—
Interest Rate Contracts
Assets	132.4		132.4		—		132.4		—
Liabilities	90.2		90.2		—		90.2		—

(1) Refer to the table located on page 103 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

	DECEMBER 31, 2020
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	4,389.5	$	4,389.5	$	4,389.5	$	—	$	—
Federal Reserve and Other Central Bank Deposits	55,503.6		55,503.6		—		55,503.6		—
Interest-Bearing Deposits with Banks	4,372.6		4,372.6		—		4,372.6		—
Securities Purchased under Agreements to Resell	1,596.5		1,596.5		—		1,596.5		—
Debt Securities
Available for Sale(1)	42,022.0		42,022.0		2,799.9		39,222.1		—
Held to Maturity	17,791.1		17,797.4		90.0		17,707.4		—
Trading Account	0.5		0.5		—		0.5		—
Loans (excluding Leases)
Held for Investment	33,558.0		34,017.5		—		—		34,017.5
Client Security Settlement Receivables	1,160.2		1,160.2		—		1,160.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	275.0		275.0		—		275.0		—
Community Development Investments	919.6		919.6		—		919.6		—
Employee Benefit and Deferred Compensation	215.8		228.9		138.6		90.3		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	71,742.5	$	71,742.5	$	71,742.5	$	—	$	—
Savings Certificates and Other Time	937.1		943.0		—		943.0		—
Non U.S. Offices Interest-Bearing	71,198.4		71,198.4		—		71,198.4		—
Federal Funds Purchased	260.2		260.2		—		260.2		—
Securities Sold Under Agreements to Repurchase	39.8		39.8		—		39.8		—
Other Borrowings	4,011.5		4,012.7		—		4,012.7		—
Senior Notes	3,122.4		3,222.6		—		3,222.6		—
Long-Term Debt
Subordinated Debt	1,189.3		1,250.1		—		1,250.1		—
Floating Rate Capital Debt	277.8		264.6		—		264.6		—
Other Liabilities
Standby Letters of Credit	22.4		22.4		—		—		22.4
Loan Commitments	77.0		77.0		—		—		77.0
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	15.6	$	15.6	$	—	$	15.6	$	—
Liabilities	311.8		311.8		—		311.8		—
Interest Rate Contracts
Assets	8.3		8.3		—		8.3		—
Liabilities	10.2		10.2		—		10.2		—
Other Financial Derivatives
Liabilities(2)	35.3		35.3		—		—		35.3
Client-Related and Trading
Foreign Exchange Contracts
Assets	4,245.1		4,245.1		—		4,245.1		—
Liabilities	4,410.7		4,410.7		—		4,410.7		—
Interest Rate Contracts
Assets	289.2		289.2		—		289.2		—
Liabilities	114.8		114.8		—		114.8		—

(1) Refer to the table located on page 104 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

XML

Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Available for Sale Debt Securities. The following tables provide the amortized cost, fair values, and remaining maturities of AFS debt securities.

TABLE 57: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,406.2	$	29.3	$	9.4	$	2,426.1
Obligations of States and Political Subdivisions	3,841.0		73.7		38.6		3,876.1
Government Sponsored Agency	18,092.1		93.7		110.2		18,075.6
Non-U.S. Government	383.4		0.1		9.5		374.0
Corporate Debt	2,319.8		31.6		9.7		2,341.7
Covered Bonds	502.6		3.9		0.9		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,052.4		28.1		35.4		3,045.1
Other Asset-Backed	5,962.0		11.3		31.7		5,941.6
Commercial Mortgage-Backed	1,389.0		38.9		3.2		1,424.7
Total	$	37,948.5	$	310.6	$	248.6	$	38,010.5

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,728.8	$	71.1	$	—	$	2,799.9
Obligations of States and Political Subdivisions	2,927.8		155.9		0.1		3,083.6
Government Sponsored Agency	24,595.1		388.5		26.9		24,956.7
Non-U.S. Government	713.6		1.1		0.7		714.0
Corporate Debt	2,459.9		79.8		0.1		2,539.6
Covered Bonds	543.1		10.0		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,281.7		64.7		0.6		2,345.8
Other Asset-Backed	3,953.5		46.8		2.8		3,997.5
Commercial Mortgage-Backed	952.2		79.7		0.1		1,031.8
Total	$	41,155.7	$	897.6	$	31.3	$	42,022.0

TABLE 58: REMAINING MATURITY OF AVAILABLE FOR SALE DEBT SECURITIES

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	—	$	—	$	2,157.8	$	2,187.1	$	248.4	$	239.0	$	—	$	—	$	2,406.2	$	2,426.1
Obligations of States and Political Subdivisions	22.8		23.0		448.3		462.1		3,239.7		3,262.6		130.2		128.4		3,841.0		3,876.1
Government Sponsored Agency	2,706.1		2,713.2		8,112.2		8,121.1		6,084.0		6,053.4		1,189.8		1,187.9		18,092.1		18,075.6
Non-U.S. Government	72.7		72.7		228.4		223.1		82.3		78.2		—		—		383.4		374.0
Corporate Debt	404.4		408.0		1,892.6		1,911.6		18.1		17.5		4.7		4.6		2,319.8		2,341.7
Covered Bonds	141.5		142.1		361.1		363.5		—		—		—		—		502.6		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	760.6		765.7		1,926.8		1,926.1		365.0		353.3		—		—		3,052.4		3,045.1
Other Asset-Backed	894.0		896.8		3,559.0		3,541.4		1,291.6		1,286.3		217.4		217.1		5,962.0		5,941.6
Commercial Mortgage-Backed	7.5		7.4		962.3		982.1		419.2		435.2		—		—		1,389.0		1,424.7
Total	$	5,009.6	$	5,028.9	$	19,648.5	$	19,718.1	$	11,748.3	$	11,725.5	$	1,542.1	$	1,538.0	$	37,948.5	$	38,010.5

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

Available for Sale Debt Securities with Unrealized Losses. The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2021 and 2020.

TABLE 59: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED

AS OF DECEMBER 31, 2021	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
U.S. Government	$	239.0	$	9.4	$	—	$	—	$	239.0	$	9.4
Obligations of States and Political Subdivisions	1,699.5		37.4		31.6		1.2		1,731.1		38.6
Government Sponsored Agency	8,207.3		90.2		1,821.4		20.0		10,028.7		110.2
Non-U.S. Government	230.0		9.5		—		—		230.0		9.5
Corporate Debt	693.7		9.7		—		—		693.7		9.7
Covered Bonds	92.1		0.9		—		—		92.1		0.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,116.8		31.9		172.3		3.5		1,289.1		35.4
Other Asset-Backed	3,815.5		31.4		11.7		0.3		3,827.2		31.7
Commercial Mortgage-Backed	566.8		3.2		—		—		566.8		3.2
Total	$	16,660.7	$	223.6	$	2,037.0	$	25.0	$	18,697.7	$	248.6

AS OF DECEMBER 31, 2020	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
Obligations of States and Political Subdivisions	$	52.3	$	0.1	$	—	$	—	$	52.3	$	0.1
Government Sponsored Agency	2,402.3		13.6		2,528.7		13.3		4,931.0		26.9
Non-U.S. Government	90.5		0.7		—		—		90.5		0.7
Corporate Debt	66.6		0.1		—		—		66.6		0.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	162.8		0.5		49.9		0.1		212.7		0.6
Other Asset-Backed	176.8		0.2		792.3		2.6		969.1		2.8
Commercial Mortgage-Backed	44.4		0.1		—		—		44.4		0.1
Total	$	2,995.7	$	15.3	$	3,370.9	$	16.0	$	6,366.6	$	31.3

As of December 31, 2021, 1,233 AFS debt securities with a combined fair value of $18.7 billion were in an unrealized loss position, with their unrealized losses totaling $248.6 million. As of December 31, 2021, unrealized losses in AFS debt securities of $110.2 million related to government sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase.

As of December 31, 2020, 412 AFS debt securities with a combined fair value of $6.4 billion were in an unrealized loss position, with their unrealized losses totaling $31.3 million. As of December 31, 2020, unrealized losses in AFS debt securities of $26.9 million related to government-sponsored agency, which are primarily attributable to changes in market interest rates and credit spreads since their purchase.

14% and 16% of the AFS corporate debt securities portfolio were backed by guarantees provided by U.S. and non-U.S. governmental entities as of December 31, 2021 and 2020, respectively. The remaining unrealized losses on Northern Trust’s AFS debt securities portfolio as of December 31, 2021 and 2020 are attributable to changes in overall market interest rates or credit spreads.

As of December 31, 2021, Northern Trust did not intend to sell any AFS debt securities in an unrealized loss position and it was more likely than not that Northern Trust would not be required to sell any such investment before the recovery of its amortized cost basis, which may be maturity.

AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit-related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred.

There was no provision for corporate debt AFS securities for the year ended December 31, 2021 and 2020, and no allowance for credit losses for corporate debt AFS securities as of December 31, 2021 and 2020.

Held to Maturity Debt Securities. The following tables provide the amortized cost, fair values and remaining maturities of held to maturity (HTM) debt securities.

TABLE 60: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF HELD TO MATURITY DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	47.0	$	—	$	—	$	47.0
Obligations of States and Political Subdivisions	0.8		—		—		0.8
Government Sponsored Agency	5,927.6		1.1		106.1		5,822.6
Non-U.S. Government	5,773.3		3.9		9.8		5,767.4
Corporate Debt	901.8		2.5		6.5		897.8
Covered Bonds	2,942.4		8.3		9.6		2,941.1
Certificates of Deposit	674.7		—		—		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	6,098.0		14.3		80.0		6,032.3
Other Asset-Backed	682.6		1.0		—		683.6
Other	516.3		3.4		71.6		448.1
Total	$	23,564.5	$	34.5	$	283.6	$	23,315.4

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	90.0	$	—	$	—	$	90.0
Obligations of States and Political Subdivisions	2.1		0.1		—		2.2
Government Sponsored Agency	3.0		0.3		—		3.3
Non-U.S. Government	8,336.6		7.3		0.2		8,343.7
Corporate Debt	588.0		6.5		0.1		594.4
Covered Bonds	3,184.6		24.6		0.3		3,208.9
Certificates of Deposit	807.2		—		—		807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,648.0		43.5		0.9		3,690.6
Other Asset-Backed	677.0		0.9		—		677.9
Other	454.6		1.1		76.5		379.2
Total	$	17,791.1	$	84.3	$	78.0	$	17,797.4

As of December 31, 2021, the $23.6 billion HTM debt securities portfolio had an unrealized loss of $106.1 million, $80 million and $71.6 million related to government sponsored agency, sub-sovereign, supranational and non-U.S. agency bonds, and other residential mortgage-backed securities, respectively, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase. As of December 31, 2020, the $17.8 billion HTM debt securities portfolio had an unrealized loss of $76.5 million related to other residential mortgage-backed securities, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase.

TABLE 61: REMAINING MATURITY OF HELD TO MATURITY DEBT SECURITIES

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	47.0	$	47.0	$	—	$	—	$	—	$	—	$	—	$	—	$	47.0	$	47.0
Obligations of States and Political Subdivisions	0.8		0.8		—		—		—		—		—		—		0.8		0.8
Government Sponsored Agency	1,161.5		1,143.6		2,101.4		2,064.6		1,848.8		1,815.0		815.9		799.4		5,927.6		5,822.6
Non-U.S. Government	4,502.7		4,502.6		1,109.2		1,103.9		161.4		160.9		—		—		5,773.3		5,767.4
Corporate Debt	177.4		178.8		708.3		703.4		16.1		15.6		—		—		901.8		897.8
Covered Bonds	650.1		651.3		1,684.0		1,688.0		608.3		601.8		—		—		2,942.4		2,941.1
Certificates of Deposit	674.7		674.7		—		—		—		—		—		—		674.7		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,086.9		1,091.5		4,507.7		4,451.4		503.4		489.4		—		—		6,098.0		6,032.3
Other Asset-Backed	190.4		190.6		398.0		398.7		94.2		94.3		—		—		682.6		683.6
Other	106.0		104.1		232.0		221.8		60.1		58.4		118.2		63.8		516.3		448.1
Total	$	8,597.5	$	8,585.0	$	10,740.6	$	10,631.8	$	3,292.3	$	3,235.4	$	934.1	$	863.2	$	23,564.5	$	23,315.4

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

HTM debt securities consist of securities that management intends to, and Northern Trust has the ability to, hold until maturity. During the year ended December 31, 2021, $6.9 billion of government sponsored agency securities were transferred from AFS to HTM for capital management purposes, all of which were transferred in the second quarter of 2021. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into net interest income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value. During the year ended December 31, 2020, $301.5 million of securities reflected in U.S. government were transferred from AFS to HTM, all of which were transferred in the second quarter of 2020.

Credit Quality Indicators. The following table provides the amortized cost of HTM debt securities by credit rating.

TABLE 62: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING

	AS OF DECEMBER 31, 2021
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	47.0		$	—		$	—		$	—		$	—		$	47.0
Obligations of States and Political Subdivisions	—			0.8			—			—			—			0.8
Government Sponsored Agency	5,927.6			—			—			—			—			5,927.6
Non-U.S. Government	398.0			942.6			4,088.8			343.9			—			5,773.3
Corporate Debt	2.3			386.7			512.8			—			—			901.8
Covered Bonds	2,942.4			—			—			—			—			2,942.4
Certificates of Deposit	—			—			—			—			674.7			674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,207.6			1,858.0			31.3			1.1			—			6,098.0
Other Asset-Backed	682.6			—			—			—			—			682.6
Other	—			—			—			—			516.3			516.3
Total	$	14,207.5		$	3,188.1		$	4,632.9		$	345.0		$	1,191.0		$	23,564.5
Percent of Total	60		%	14		%	20		%	1		%	5		%	100		%

	AS OF DECEMBER 31, 2020
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	90.0		$	—		$	—		$	—		$	—		$	90.0
Obligations of States and Political Subdivisions	—			1.0			—			1.1			—			2.1
Government Sponsored Agency	3.0			—			—			—			—			3.0
Non-U.S. Government	319.8			1,337.4			6,630.6			48.8			—			8,336.6
Corporate Debt	3.8			279.1			305.1			—			—			588.0
Covered Bonds	3,184.6			—			—			—			—			3,184.6
Certificates of Deposit	—			—			—			—			807.2			807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,590.9			1,057.1			—			—			—			3,648.0
Other Asset-Backed	677.0			—			—			—			—			677.0
Other	—			—			—			—			454.6			454.6
Total	$	6,869.1		$	2,674.6		$	6,935.7		$	49.9		$	1,261.8		$	17,791.1
Percent of Total	39		%	15		%	39		%	—		%	7		%	100		%

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 94% and 93% of the HTM portfolio comprised of securities rated A or higher as of December 31, 2021 and 2020, respectively. The remaining HTM debt securities portfolio was comprised of 1% rated BBB at December 31, 2021, and 5% and 7% not rated by Moody’s, S&P Global, or Fitch Ratings at December 31, 2021 and 2020, respectively. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.

Investment Security Gains and Losses. Proceeds of $116.7 million, $879.9 million, and $1.2 billion in 2021, 2020, and 2019, respectively, from the sale of debt securities resulted in the following gains and losses shown in the following table.

TABLE 63: INVESTMENT SECURITY GAINS AND LOSSES

	DECEMBER 31,
(In Millions)	2021		2020		2019
Gross Realized Debt Securities Gains	$	1.4	$	3.4	$	2.4
Gross Realized Debt Securities Losses	(1.7)		(3.8)		(3.5)
Changes in Other-Than-Temporary Impairment Losses(1)	—		—		(0.3)
Net Investment Security Losses	$	(0.3)	$	(0.4)	$	(1.4)

(1) Other-than-temporary impairment losses relate to certain Community Reinvestment Act (CRA) eligible HTM debt securities

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Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

During the third quarter of 2021, Northern Trust became a Government Securities Division (GSD) netting and sponsoring member in the Fixed Income Clearing Corporation (FICC) sponsored member program. FICC, a wholly-owned subsidiary of The Depository Trust & Clearing Corporation, is a central counterparty and provides netting and settlement for the U.S. Government securities marketplace. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when FICC is the counterparty.

The following tables summarize information related to Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase.

TABLE 64: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

($ In Millions)	2021			2020
Balance at December 31	$	686.4		$	1,596.5
Average Balance During the Year	1,067.4			1,253.1
Average Interest Rate Earned During the Year	0.33		%	0.31		%
Maximum Month-End Balance During the Year	$	1,819.1		$	2,055.6

TABLE 65: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

($ In Millions)	2021			2020
Balance at December 31	$	531.9		$	39.8
Average Balance During the Year	232.0			218.3
Average Interest Rate Paid During the Year	0.07		%	0.47		%
Maximum Month-End Balance During the Year	$	892.6		$	269.8

TABLE 66: REPURCHASE AGREEMENTS ACCOUNTED FOR AS SECURED BORROWINGS

	REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
	December 31, 2021						December 31, 2020
($ In Millions)	OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL		OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL
U.S. Treasury and Agency Securities	$	32.4	$	499.5	$	531.9	$	39.8	$	—	$	39.8
Total Borrowings	32.4		499.5		531.9		39.8		—		39.8
Net Amount of Recognized Liabilities for Repurchase Agreements in Note 28	32.4		499.5		531.9		39.8		—		39.8
Amounts related to agreements not included in Note 28	—		—		—		—		—		—

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Loans and Leases

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and Leases

Loans and Leases

Amounts outstanding for Loans and Leases, by segment and class, are shown in the following table.

TABLE 67: LOANS AND LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Commercial
Commercial and Institutional	$	11,489.2	$	10,058.3
Commercial Real Estate	4,326.3		3,558.4
Non-U.S.	1,990.2		1,345.7
Lease Financing, net	11.0		11.4
Other	670.7		288.2
Total Commercial	18,487.4		15,262.0
Personal
Private Client	15,256.3		11,815.1
Residential Real Estate	6,319.9		6,035.7
Non-U.S.	381.8		597.9
Other	35.2		49.0
Total Personal	21,993.2		18,497.7
Total Loans and Leases	$	40,480.6	$	33,759.7

Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest-only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2021 and 2020, equity credit lines totaled $258.2 million and $304.4 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 97% of the total equity credit lines as of both of those dates.

Included within the non-U.S., commercial-other, and personal-other classes are short duration advances, primarily related to the processing of custodied client investments, totaling $1.6 billion at December 31, 2021 and $1.1 billion at December 31, 2020. Demand deposit overdrafts reclassified as loan balances totaled $8.0 million and $26.4 million at December 31, 2021 and 2020, respectively. Loans classified as held for sale totaled $12.3 million at December 31, 2021 related to the decision to exit a non-strategic loan portfolio. There were no loans classified as held for sale at December 31, 2020. Loans classified as held for sale are recorded at the lower of cost or fair value.

As of December 31, 2021 and 2020, there were no leases classified as held for sale.

The components of the net investment in leveraged leases is as follows:

TABLE 68: LEVERAGED LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Leveraged Leases
Net Rental Receivable	$	11.4	$	11.8
Residual Value	—		—
Unearned Income	(0.4)		(0.4)
Investment in Leveraged Leases	11.0		11.4
Lease Financing, net	$	11.0	$	11.4

Paycheck Protection Program. In response to the COVID-19 pandemic, Northern Trust became a lender under the Paycheck Protection Program, as amended (PPP), which was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is administered by the U.S. Small Business Administration (SBA). Loans issued under the PPP are funded by Northern Trust directly to participating borrowers. The PPP loans are guaranteed by the SBA and borrowers are eligible to apply for PPP loan forgiveness for up to the full principal amount and accrued interest of the PPP loan.

To the extent a borrower uses PPP loan proceeds to cover eligible costs and has met all other SBA loan forgiveness requirements, the SBA will determine loan forgiveness under the CARES Act and will pay to Northern Trust the eligible PPP loan forgiven amount, which will be credited to the borrower’s loan to repay or pay down the PPP loan. The SBA forgiveness portal opened on August 10, 2020 and Northern Trust’s vendor portal opened on September 11, 2020 to begin processing the PPP loan forgiveness applications. When Northern Trust submits forgiveness applications to the SBA, the SBA has at least 90 days to respond as to the approval or denial of such application. 1,301 and 36 loans were forgiven through the PPP loan forgiveness process which resulted in $231.5 million and $6.7 million of loan principal and interest being forgiven during the year ended December 31, 2021 and 2020, respectively.

As of December 31, 2021, Northern Trust had 213 outstanding loans totaling $56.9 million under the PPP in its commercial and institutional portfolio with an average loan balance of $0.3 million. For its origination efforts, Northern Trust received approximately $0.1 million and $2.6 million in SBA fees, net of service charges, during the year ended December 31, 2021 and 2020, respectively.

Northern Trust accounts for loans originated under the PPP as loan receivables in accordance with Accounting Standards Codification (ASC) 310 and recognizes such loans at the principal amount less the net amount of loan origination fees. PPP loans are reported in Total Loans and Leases on the consolidated balance sheets.

The SBA provides a 100% guarantee on PPP loans covering principal and interest. Northern Trust considers the risk mitigating effects of these guarantees, and accounts for them as a credit enhancement embedded in the contract. As a result, no allowance for credit losses is measured for Northern Trust’s exposure under the PPP.

Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans and leases. Northern Trust utilizes a variety of credit quality indicators to assess the credit risk of loans and leases at the segment, class, and individual credit exposure levels.

As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting and management reporting. Risk ratings are used for ranking the credit risk of borrowers and the probability of their default. Each borrower is rated using one of a number of ratings models, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans and leases in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan and lease class.

•Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels;

•Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support;

•Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels;

•Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels;

•Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio;

•Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and

•Personal-Other: cash-flow-to-debt and net worth ratios.

While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually.

Loan and lease segment and class balances as of December 31, 2021 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.

TABLE 69: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR

DECEMBER 31, 2021	TERM LOANS AND LEASES												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2021		2020		2019		2018		2017		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	1,057.9	$	469.7	$	313.7	$	156.6	$	48.2	$	535.8	$	4,944.9	$	0.1	$	7,526.9
4 to 5 Category	1,043.6		432.2		377.3		231.6		234.1		190.1		1,219.0		33.1		3,761.0
6 to 9 Category	50.0		20.3		26.8		30.2		9.9		1.9		62.2		—		201.3
Total Commercial and Institutional	2,151.5		922.2		717.8		418.4		292.2		727.8		6,226.1		33.2		11,489.2
Commercial Real Estate
Risk Rating:
1 to 3 Category	485.3		310.2		260.6		60.2		16.8		79.3		67.5		2.9		1,282.8
4 to 5 Category	967.9		638.1		460.1		223.0		81.4		364.1		182.3		20.5		2,937.4
6 to 9 Category	24.5		—		50.6		—		20.0		8.5		2.5		—		106.1
Total Commercial Real Estate	1,477.7		948.3		771.3		283.2		118.2		451.9		252.3		23.4		4,326.3
Non-U.S.
Risk Rating:
1 to 3 Category	824.1		68.9		38.4		—		9.1		—		582.0		—		1,522.5
4 to 5 Category	160.2		—		—		1.9		—		191.1		73.3		1.8		428.3
6 to 9 Category	2.9		—		23.1		—		—		—		13.4		—		39.4
Total Non-U.S.	987.2		68.9		61.5		1.9		9.1		191.1		668.7		1.8		1,990.2
Lease Financing, net
Risk Rating:
4 to 5 Category	—		—		—		—		—		11.0		—		—		11.0
Total Lease Financing, net	—		—		—		—		—		11.0		—		—		11.0
Other
Risk Rating:
1 to 3 Category	551.5		—		—		—		—		—		—		—		551.5
4 to 5 Category	119.2		—		—		—		—		—		—		—		119.2
Total Other	670.7		—		—		—		—		—		—		—		670.7
Total Commercial	5,287.1		1,939.4		1,550.6		703.5		419.5		1,381.8		7,147.1		58.4		18,487.4
Personal
Private Client
Risk Rating:
1 to 3 Category	455.5		97.9		87.0		14.9		38.3		129.8		7,592.8		44.7		8,460.9
4 to 5 Category	579.2		333.9		519.3		81.0		54.8		39.9		4,979.8		178.3		6,766.2
6 to 9 Category	7.1		0.2		—		20.4		—		—		1.5		—		29.2
Total Private Client	1,041.8		432.0		606.3		116.3		93.1		169.7		12,574.1		223.0		15,256.3
Residential Real Estate
Risk Rating:
1 to 3 Category	1,137.8		996.4		201.8		13.5		49.3		505.8		161.5		—		3,066.1
4 to 5 Category	1,137.3		1,002.5		242.7		79.5		113.3		369.8		218.1		2.2		3,165.4
6 to 9 Category	0.4		10.5		5.4		8.4		0.5		58.2		5.0		—		88.4
Total Residential Real Estate	2,275.5		2,009.4		449.9		101.4		163.1		933.8		384.6		2.2		6,319.9
Non-U.S.
Risk Rating:
1 to 3 Category	27.6		—		1.2		—		—		1.0		44.1		—		73.9
4 to 5 Category	36.1		1.9		18.7		10.4		—		3.8		229.0		7.8		307.7
6 to 9 Category	—		—		—		—		—		0.2		—		—		0.2
Total Non-U.S.	63.7		1.9		19.9		10.4		—		5.0		273.1		7.8		381.8
Other
Risk Rating:
1 to 3 Category	13.4		—		—		—		—		—		—		—		13.4
4 to 5 Category	21.8		—		—		—		—		—		—		—		21.8
Total Other	35.2		—		—		—		—		—		—		—		35.2
Total Personal	3,416.2		2,443.3		1,076.1		228.1		256.2		1,108.5		13,231.8		233.0		21,993.2
Total Loans and Leases	$	8,703.3	$	4,382.7	$	2,626.7	$	931.6	$	675.7	$	2,490.3	$	20,378.9	$	291.4	$	40,480.6

December 31, 2020	TERM LOANS AND LEASES												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2020		2019		2018		2017		2016		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	663.8	$	546.0	$	204.6	$	96.0	$	396.0	$	448.8	$	3,742.4	$	5.5	$	6,103.1
4 to 5 Category	793.4		505.1		354.1		405.4		134.6		167.3		1,238.7		32.3		3,630.9
6 to 9 Category	34.3		119.8		37.3		42.8		23.0		6.0		61.1		—		324.3
Total Commercial and Institutional	1,491.5		1,170.9		596.0		544.2		553.6		622.1		5,042.2		37.8		10,058.3
Commercial Real Estate
Risk Rating:
1 to 3 Category	406.3		109.2		27.6		36.5		11.8		99.4		124.3		8.7		823.8
4 to 5 Category	703.1		811.8		332.7		107.4		184.5		382.8		60.4		11.4		2,594.1
6 to 9 Category	15.3		55.2		32.0		25.8		—		12.2		—		—		140.5
Total Commercial Real Estate	1,124.7		976.2		392.3		169.7		196.3		494.4		184.7		20.1		3,558.4
Non-U.S.
Risk Rating:
1 to 3 Category	555.2		16.8		—		11.1		—		—		78.5		—		661.6
4 to 5 Category	313.1		0.7		2.0		—		—		157.9		39.2		1.8		514.7
6 to 9 Category	—		23.1		—		—		—		—		146.3		—		169.4
Total Non-U.S.	868.3		40.6		2.0		11.1		—		157.9		264.0		1.8		1,345.7
Lease Financing, net
Risk Rating:
4 to 5 Category	—		—		—		—		—		11.4		—		—		11.4
Total Lease Financing, net	—		—		—		—		—		11.4		—		—		11.4
Other
Risk Rating:
1 to 3 Category	81.7		—		—		—		—		—		—		—		81.7
4 to 5 Category	206.5		—		—		—		—		—		—		—		206.5
Total Other	288.2		—		—		—		—		—		—		—		288.2
Total Commercial	3,772.7		2,187.7		990.3		725.0		749.9		1,285.8		5,490.9		59.7		15,262.0
Personal
Private Client
Risk Rating:
1 to 3 Category	668.6		273.7		51.7		60.4		10.2		136.1		5,392.8		47.9		6,641.4
4 to 5 Category	492.1		479.9		117.3		60.4		77.5		77.5		3,564.7		207.3		5,076.7
6 to 9 Category	6.0		0.5		22.1		3.2		—		—		63.7		1.5		97.0
Total Private Client	1,166.7		754.1		191.1		124.0		87.7		213.6		9,021.2		256.7		11,815.1
Residential Real Estate
Risk Rating:
1 to 3 Category	1,554.3		317.4		42.9		109.9		205.1		627.8		152.8		1.7		3,011.9
4 to 5 Category	854.6		359.5		115.8		163.2		209.7		896.5		273.1		7.4		2,879.8
6 to 9 Category	15.3		8.3		0.7		0.5		1.9		94.8		22.5		—		144.0
Total Residential Real Estate	2,424.2		685.2		159.4		273.6		416.7		1,619.1		448.4		9.1		6,035.7
Non-U.S.
Risk Rating:
1 to 3 Category	23.3		14.9		—		—		—		1.8		275.6		—		315.6
4 to 5 Category	12.7		26.0		11.8		0.5		0.5		7.9		217.5		5.1		282.0
6 to 9 Category	—		—		—		—		—		0.3		—		—		0.3
Total Non-U.S.	36.0		40.9		11.8		0.5		0.5		10.0		493.1		5.1		597.9
Other
Risk Rating:
1 to 3 Category	34.6		—		—		—		—		—		—		—		34.6
4 to 5 Category	14.4		—		—		—		—		—		—		—		14.4
Total Other	49.0		—		—		—		—		—		—		—		49.0
Total Personal	3,675.9		1,480.2		362.3		398.1		504.9		1,842.7		9,962.7		270.9		18,497.7
Total Loans and Leases	$	7,448.6	$	3,667.9	$	1,352.6	$	1,123.1	$	1,254.8	$	3,128.5	$	15,453.6	$	330.6	$	33,759.7

Loans and leases in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down-cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss.

Loans and leases in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have fewer financial resources to manage through economic downturns. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss.

Loans and leases in the watch list category have elevated credit risk profiles that are monitored through internal watch lists, and consist of credits with borrower ratings of “6 to 9.” These credits, which include all nonaccrual credits, are expected to exhibit minimally acceptable probabilities of default, elevated risk of default, or are currently in default. Borrowers associated with these risk profiles that are not currently in default have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse down cycle scenarios. As a result of these characteristics, borrowers in this category exhibit an elevated to probable likelihood of loss.

Past Due Status. Past due status is based on the length of time from the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans and leases that are 29 days past due or less are reported as current.

The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of December 31, 2021 and 2020.

TABLE 70: DELINQUENCY STATUS

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2021
Commercial
Commercial and Institutional	$	11,434.7	$	32.5	$	2.1	$	0.4	$	11,469.7	$	19.5	$	11,489.2	$	8.8
Commercial Real Estate	4,256.6		3.1		—		—		4,259.7		66.6		4,326.3		52.3
Non-U.S.	1,990.2		—		—		—		1,990.2		—		1,990.2		—
Lease Financing, net	11.0		—		—		—		11.0		—		11.0		—
Other	670.7		—		—		—		670.7		—		670.7		—
Total Commercial	18,363.2		35.6		2.1		0.4		18,401.3		86.1		18,487.4		61.1
Personal
Private Client	14,927.3		229.5		71.8		27.7		15,256.3		—		15,256.3		—
Residential Real Estate	6,273.2		7.0		3.3		0.2		6,283.7		36.2		6,319.9		36.2
Non-U.S.	381.6		0.2		—		—		381.8		—		381.8		—
Other	35.2		—		—		—		35.2		—		35.2		—
Total Personal	21,617.3		236.7		75.1		27.9		21,957.0		36.2		21,993.2		36.2
Total Loans and Leases	$	39,980.5	$	272.3	$	77.2	$	28.3	$	40,358.3	$	122.3	$	40,480.6	$	97.3
					Other Real Estate Owned						$	3.0
					Total Nonaccrual Assets						$	125.3

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2020
Commercial
Commercial and Institutional	$	9,877.0	$	153.7	$	1.2	$	—	$	10,031.9	$	26.4	$	10,058.3	$	9.1
Commercial Real Estate	3,516.2		2.0		—		—		3,518.2		40.2		3,558.4		32.3
Non-U.S.	1,345.7		—		—		—		1,345.7		—		1,345.7		—
Lease Financing, net	11.4		—		—		—		11.4		—		11.4		—
Other	288.2		—		—		—		288.2		—		288.2		—
Total Commercial	15,038.5		155.7		1.2		—		15,195.4		66.6		15,262.0		41.4
Personal
Private Client	11,765.4		29.1		9.9		7.8		11,812.2		2.9		11,815.1		2.9
Residential Real Estate	5,946.0		23.5		2.9		1.1		5,973.5		62.2		6,035.7		53.8
Non-U.S	596.7		1.2		—		—		597.9		—		597.9		—
Other	49.0		—		—		—		49.0		—		49.0		—
Total Personal	18,357.1		53.8		12.8		8.9		18,432.6		65.1		18,497.7		56.7
Total Loans and Leases	$	33,395.6	$	209.5	$	14.0	$	8.9	$	33,628.0	$	131.7	$	33,759.7	$	98.1
					Other Real Estate Owned						$	0.7
					Total Nonaccrual Assets						$	132.4

Interest income that would have been recorded for nonaccrual loans and leases in accordance with their original terms was $4.6 million in 2021, $4.6 million in 2020, and $7.3 million in 2019.

Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral. The collateral dependent financial asset balance as of December 31, 2021 was immaterial to Northern Trust’s financial statements.

Nonaccrual Loans and Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring. There were $76.7 million and $38.9 million of nonaccrual TDRs included within nonaccrual loans as of December 31, 2021 and 2020, respectively. There were $16.5 million and $29.3 million of accrual TDRs included within nonaccrual loans as of December 31, 2021 and 2020, respectively. There were $0.2 million and $10.4 million of aggregate undrawn loan commitments and standby letters of credit at December 31, 2021 and 2020, respectively, issued to borrowers with TDR modifications of loans.

The following table provides, by segment and class, the number of TDR modifications of loans and leases during the years ended December 31, 2021, and 2020, and the recorded investments and unpaid principal balances as of December 31, 2021 and 2020.

TABLE 71: TROUBLED DEBT RESTRUCTURINGS

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2021
Commercial
Commercial and Institutional	6	$	19.6	$	19.6
Commercial Real Estate	3	36.0		42.4
Total Commercial	9	55.6		62.0
Personal
Residential Real Estate	10	1.3		1.5
Total Personal	10	1.3		1.5
Total Loans and Leases	19	$	56.9	$	63.5

Note: Period-end balances reflect all paydowns and charge-offs during the year.

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2020
Commercial
Commercial and Institutional	3	$	24.3	$	24.5
Total Commercial	3	24.3		24.5
Personal
Residential Real Estate	22	16.2		16.7
Total Personal	22	16.2		16.7
Total Loans and Leases	25	$	40.5	$	41.2

Note: Period-end balances reflect all paydowns and charge-offs during the year.

TDR modifications involve extensions of term, deferrals of principal, interest rate concessions, and other modifications. Other modifications typically reflect other nonstandard terms which Northern Trust would not offer in non-troubled situations.

During the year ended December 31, 2021, the TDR modifications of loans within residential real estate were primarily deferrals of principal, extension of term, and other modifications. During the year ended December 31, 2021, TDR modifications of loans within commercial and institutional were deferrals of principal. During the year ended December 31, 2021, TDR modifications of loans within commercial real estate were primarily deferrals of principal, interest rate concessions, other modifications, and extension of term.

During the year ended December 31, 2020, the TDR modifications of loans within residential real estate were primarily extensions of term, other modifications, deferrals of principal, and interest rate concessions. During the year ended December 31, 2020, TDR modifications of loans within commercial and institutional were other modifications and extensions of term.

There were two loan or lease TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2021. The total recorded investment for these loans was approximately $5.6 million and the unpaid principal balance for these loans was approximately $5.6 million.

There were no loan or lease TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2020.

Northern Trust may obtain physical possession of real estate via foreclosure on an in-substance repossession. As of December 31, 2021 and 2020, Northern Trust held foreclosed real estate properties with a carrying value of $3.0 million and $0.7 million, respectively, as a result of obtaining physical possession. In addition, as of December 31, 2021 and 2020, Northern Trust had loans with a carrying value of $2.6 million and $7.9 million, respectively, for which formal foreclosure proceedings were in process.

TDR Relief — COVID-19. Due to the economic environment arising from the COVID-19 pandemic, there have been two forms of relief provided for classifying loans as TDRs: the Interagency Guidance (as defined below) and the CARES Act.

Various banking regulators, including the Board of Governors of the Federal Reserve (Federal Reserve Board), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau, issued guidance in the April 7, 2020 Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (revised) on loan modification treatment (Interagency Guidance) pursuant to which financial institutions can apply ASC 310-40 Receivables – Troubled Debt Restructurings by Creditors. In accordance with the Interagency Guidance, a loan modification is not considered a TDR if: (a) the modification is related to COVID-19; (b) the borrower had been current (not more than 29 days past due) when the modification program was implemented; and (c) the modification includes payment deferrals for not more than 6 months.

Under section 4013 of the CARES Act, relief provided to lenders exempting certain loan modifications which would otherwise be classified as TDRs from such classification applies for loans that were not more than 30 days past due as of December 31, 2019. The TDR relief under the CARES Act applies to COVID-19-related modifications that were made from March 1, 2020 until the earlier of (a) January 1, 2022 or (b) 60 days from the date the COVID-19 national emergency officially ends.

Financial institutions may account for eligible loan modifications under the Interagency Guidance and/or the CARES Act. Northern Trust elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the COVID-19 pandemic. All other types of modifications which do not meet the CARES Act or Interagency Guidance requirements continue to be governed by existing regulations and accounting policies.

The following provides the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of December 31, 2021, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule). As of December 31, 2021, there were three residential real estate COVID-19-related loan modifications in active deferral status which totaled $2.0 million, with immaterial deferred principal and interest.

TABLE 72: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL

	DECEMBER 31, 2021
($ In Millions)	NUMBER OF COVID-19 RELATED MODIFICATIONS	LOAN VOLUME		DEFERRED PRINCIPAL AMOUNT		DEFERRED INTEREST AMOUNT
Commercial
Commercial and Institutional	73	$	199.8	$	0.1	$	1.6
Commercial Real Estate	80	390.7		—		2.4
Total Commercial	153	$	590.5	$	0.1	$	4.0
Personal
Private Client	29	$	143.1	$	—	$	1.0
Residential Real Estate	208	102.0		1.1		1.3
Total Personal	237	$	245.1	$	1.1	$	2.3
Total Loans	390	$	835.6	$	1.2	$	6.3

Northern Trust continues to accrue and recognize interest income during the loan deferral period, and hence has not moved these loans to nonaccrual or reported them as past due. Further, these loan balances continue to be assessed on a collective basis for purposes of measuring an allowance for expected credit losses. While these loans are under the COVID-19 loan modification program, this may delay the recognition of nonaccruals and charge-offs. Loans which have exited the COVID-19 loan modification program may be placed on nonaccrual status or charged-off if borrowers were unable to resume their regular payment schedule.

During the year ended December 31, 2021, 148 loans with an aggregate principal amount of $209.4 million that had been granted payment deferrals were paid off. As of December 31, 2021, less than 10% of loans that had been granted payment deferrals were either past due or in nonaccrual status.

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Allowance for Credit Losses

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Allowance for Credit Losses

Allowance for Credit LossesAllowance and Provision for Credit Losses. The allowance for credit losses—which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposures, and specific borrower relationships—is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A

financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Northern Trust employs multiple scenarios over a reasonable and supportable period of currently two years to project future conditions. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters. The primary forecast, consistent with Northern Trust’s economic outlook publications, assumes continued economic recovery from the challenges of COVID-19, with steady growth and a falling unemployment rate over the forecast horizon. An alternative scenario is also considered, which reflects a gradual and prolonged recession that incorporates the experiences of a wider set of historical economic cycles.

The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Credit Risk Management, Treasury, Corporate Finance, the Economic Research group, and each of Northern Trust’s business units. The Credit Loss Reserve Committee determines the probability weights applied to each forecast approved by Northern Trust’s Macroeconomic Scenario Development Committee, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework.

The following table provides information regarding changes in the total allowance for credit losses.

TABLE 73: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES.

	2021
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at Beginning of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9
Charge-Offs	(0.7)		—		—		—		(0.7)
Recoveries	7.0		—		—		—		7.0
Net Recoveries (Charge-Offs)	6.3		—		—		—		6.3
Provision for Credit Losses	(58.6)		(27.0)		3.9		0.2		(81.5)
Balance at End of Period	$	138.4	$	34.1	$	11.2	$	1.0	$	184.7

	2020
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at End of Prior Period	$	104.5	$	19.9	$	—	$	—	$	124.4
Cumulative Effect Adjustment	(2.2)		8.9		6.6		0.4		13.7
Balance at Beginning of Period	102.3		28.8		6.6		0.4		138.1
Charge-Offs	(9.7)		—		—		—		(9.7)
Recoveries	6.5		—		—		—		6.5
Net Recoveries (Charge-Offs)	(3.2)		—		—		—		(3.2)
Provision for Credit Losses	91.6		32.3		0.7		0.4		125.0
Balance at End of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9

	2019
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		TOTAL
Balance at Beginning of Period	$	112.6	$	25.6	$	138.2
Charge-Offs	(6.5)		—		(6.5)
Recoveries	7.2		—		7.2
Net Recoveries (Charge-Offs)	0.7		—		0.7
Provision for Credit Losses	(8.8)		(5.7)		(14.5)
Balance at End of Period	$	104.5	$	19.9	$	124.4

There was a $81.5 million release of credit reserves for the year ended December 31, 2021, as compared to a $125.0 million provision for the year ended December 31, 2020. There were net recoveries of $6.3 million for the year ended December 31, 2021, as compared to net charge-offs of $3.2 million for the year ended December 31, 2020. The release of credit reserves during 2021 mostly related to loans and leases and undrawn loan commitments and standby letters of credit. For further detail, please see the following Allowance for the Loan and Lease Portfolio section.

For credit exposure and the associated allowance related to fee receivables, please refer to Note 18, “Revenue from Contracts with Clients.” For information related to the allowance for AFS debt securities, please refer to Note 4, “Securities.” For the allowance pertaining to all other financial assets recognized at amortized cost, which include Cash and Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, and Other Assets, please refer to the Allowance for Other Financial Assets section within this footnote.

Allowance for the Loan and Lease Portfolio. The following table provides information regarding changes in the total allowance for credit losses, including undrawn loan commitments and standby letters of credit, by segment.

TABLE 74: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES

	2021
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1
Charge-Offs	(0.3)		(0.4)		(0.7)		—		—		—
Recoveries	0.9		6.1		7.0		—		—		—
Net Recoveries (Charge-Offs)	0.6		5.7		6.3		—		—		—
Provision for Credit Losses	(37.2)		(21.4)		(58.6)		(26.2)		(0.8)		(27.0)
Balance at End of Period	$	105.6	$	32.8	$	138.4	$	31.4	$	2.7	$	34.1

	2020
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at End of Prior Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9
Cumulative Effect Adjustment	(5.9)		3.7		(2.2)		11.9		(3.0)		8.9
Balance at Beginning of Period	$	52.2	$	50.1	$	102.3	$	27.7	$	1.1	$	28.8
Charge-Offs	(6.3)		(3.4)		(9.7)		—		—		—
Recoveries	2.4		4.1		6.5		—		—		—
Net Recoveries (Charge-Offs)	(3.9)		0.7		(3.2)		—		—		—
Provision for Credit Losses	93.9		(2.3)		91.6		29.9		2.4		32.3
Balance at End of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1

	2019
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	57.6	$	55.0	$	112.6	$	21.1	$	4.5	$	25.6
Charge-Offs	(3.0)		(3.5)		(6.5)		—		—		—
Recoveries	0.9		6.3		7.2		—		—		—
Net Recoveries (Charge-Offs)	(2.1)		2.8		0.7		—		—		—
Provision for Credit Losses	2.6		(11.4)		(8.8)		(5.3)		(0.4)		(5.7)
Balance at End of Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9

The decrease to the allowance for both loans and leases and undrawn loan commitments and standby letters of credit for 2021 was primarily due to a decrease in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by improvements in projected economic conditions and portfolio credit quality, partially offset by portfolio growth. The decrease in the collective basis reserve was primarily reflected in the commercial and institutional portfolio.

The following table provides information regarding the recorded investments in loans and leases and the allowance for credit losses for loans and leases and undrawn loan commitments and standby letters of credit by segment as of December 31, 2021 and 2020.

TABLE 75: RECORDED INVESTMENTS IN LOANS AND LEASES

	DECEMBER 31, 2021						DECEMBER 31, 2020
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Loans and Leases
Evaluated on an Individual Basis	$	92.1	$	74.5	$	166.6	$	66.6	$	65.1	$	131.7
Evaluated on a Collective Basis	18,395.3		21,918.7		40,314.0		15,195.4		18,432.6		33,628.0
Total Loans and Leases	18,487.4		21,993.2		40,480.6		15,262.0		18,497.7		33,759.7
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	10.1		—		10.1		8.8		0.3		9.1
Evaluated on a Collective Basis	95.5		32.8		128.3		133.4		48.2		181.6
Allowance Assigned to Loans and Leases	105.6		32.8		138.4		142.2		48.5		190.7
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	—		—		—		1.6		—		1.6
Evaluated on a Collective Basis	31.4		2.7		34.1		56.0		3.5		59.5
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	31.4		2.7		34.1		57.6		3.5		61.1
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	$	137.0	$	35.5	$	172.5	$	199.8	$	52.0	$	251.8

Allowance for Held to Maturity Debt Securities Portfolio. The following table provides information regarding changes in the total allowance for credit losses for HTM debt securities during 2021 and 2020.

TABLE 76: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES

	2021
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at Beginning of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3
Provision for Credit Losses	0.6		1.7		1.8		—		(0.2)		3.9
Balance at End of Period	$	1.4	$	1.9	$	3.0	$	0.1	$	4.8	$	11.2

	2020
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at End of Prior Period	$	—	$	—	$	—	$	—	$	—	$	—
Cumulative Effect Adjustment	0.8		0.3		0.9		—		4.6		6.6
Balance at Beginning of Period	0.8		0.3		0.9		—		4.6		6.6
Provision for Credit Losses	—		(0.1)		0.3		0.1		0.4		0.7
Balance at End of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3

Prior to the adoption of ASU 2016-13 on January 1, 2020, Northern Trust recognized $4.4 million of cumulative Other-Than-Temporary-Impairment (OTTI) losses on the debt securities classified as other as of December 31, 2019. For debt securities with previous OTTI losses recorded, Northern Trust applied ASU 2016-13 on a prospective basis whereby the amortized cost basis of the impaired security remains unchanged immediately before and after adopting ASU 2016-13. The allowance recorded at January 1, 2020 for HTM debt securities equals the difference between the calculated expected loss and the amount of OTTI loss previously recorded and represents the cumulative effect adjustment required upon the adoption of ASU 2016-13.

The increase in the allowance attributable to HTM debt securities for 2021 was due to an increase in the reserve evaluated on a collective basis, which relates to pooled financial assets sharing similar risk characteristics, and was driven by an increase in exposure.

Allowance for Other Financial Assets. The allowance for Other Financial Assets consists of the allowance for Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, and Other Assets. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and is expected to exhibit minimal to modest likelihood of loss. The allowance for credit losses related to Other Financial Assets was $1.0 million and $0.8 million as of December 31, 2021 and 2020, respectively.

Accrued Interest. Accrued interest balances are reported within Other Assets on the consolidated balance sheets. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the period the financial asset is moved from an accrual to a nonaccrual status.

The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.

TABLE 77: ACCRUED INTEREST

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Loans and Leases	$	62.6	$	55.3
Debt Securities
Held to Maturity	30.4		26.5
Available for Sale	129.7		153.6
Other Financial Assets	2.3		1.4
Total	$	225.0	$	236.8

The amount of accrued interest reversed through interest income for loans and leases was immaterial and there was no accrued interest reversed through interest income related to any other financial assets during the years ended 2021 and 2020.

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Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Concentrations of Credit Risk

Concentrations of Credit Risk

Concentrations of credit risk exist if a number of borrowers or other counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The fact that a credit exposure falls into one of these groups does not necessarily indicate that the credit has a higher than normal degree of credit risk. These groups are: banks and bank holding companies, residential real estate, and commercial real estate.

Banks and Bank Holding Companies. At December 31, 2021, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $1.9 billion, demand balances maintained at correspondent banks of $3.0 billion, and Securities Purchased under Agreements to Resell of $686.4 million. At December 31, 2020, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $4.4 billion, demand balances maintained at correspondent banks of $4.3 billion, and Securities Purchased under Agreements to Resell of $1.6 billion. Credit risk associated with U.S. and non-U.S. banks and bank holding companies deemed to be counterparties by Credit Risk Management is managed by the Capital Markets Credit Committee. Credit limits are established through a review process that includes an internally-prepared financial analysis, use of an internal risk rating system and consideration of external ratings from rating agencies. Northern Trust places deposits with banks that have strong internal and external credit ratings and the average life to maturity of deposits with banks is maintained on a short-term basis in order to respond quickly to changing credit conditions.

Residential Real Estate. Residential real estate loans totaled $6.3 billion at December 31, 2021 and $6.0 billion at December 31, 2020, representing 17% and 19%, respectively, of total U.S. loans and leases. Residential real estate loans consist of traditional first lien mortgages and equity credit lines, which generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Revaluations of supporting collateral are obtained upon refinancing or default or when otherwise considered warranted. Collateral revaluations for mortgages are performed by independent third parties. Of

the $6.3 billion residential real estate loans at December 31, 2021, $1.6 billion were in Florida, $1.4 billion were in California, and $0.7 billion were in the greater Chicago area, with the remainder distributed throughout the other geographic regions within the U.S. served by Northern Trust. Legally binding undrawn commitments to extend residential real estate credit, which are primarily equity credit lines, totaled $665.9 million and $676.1 million at December 31, 2021 and 2020, respectively.

Commercial Real Estate. In managing its credit exposure, management has defined a commercial real estate loan as one where: (1) the borrower’s principal business activity is the acquisition or the development of real estate for commercial purposes; (2) the principal collateral is real estate held for commercial purposes, and loan repayment is expected to flow from the operation of the property; or (3) the loan repayment is expected to flow from the sale or refinance of real estate as a normal and ongoing part of the business. Unsecured lines of credit to firms or individuals engaged in commercial real estate endeavors are included without regard to the use of loan proceeds. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust. Underwriting standards generally reflect conservative loan-to-value ratios and debt service coverage requirements. Recourse to borrowers through guarantees is also commonly required. Commercial mortgage financing is provided for the acquisition or refinancing of income-producing properties. Cash flows from the properties generally are sufficient to amortize the loan. These loans are primarily located in the California, Illinois, Florida, Texas, and New York markets. Construction, acquisition and development loans provide financing for commercial real estate prior to rental income stabilization. The intent is generally that the borrower will sell the project or refinance the loan through a commercial mortgage with Northern Trust or another financial institution upon completion. At December 31, 2021, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $357.9 million and $30.0 million, respectively. At December 31, 2020, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $252.3 million and $4.5 million, respectively.

The table below provides additional detail regarding commercial real estate loan types.

TABLE 78: COMMERCIAL REAL ESTATE LOANS

	DECEMBER 31,
(In Millions)	2021		2020
Commercial Mortgages
Office	$	1,011.4	$	831.3
Apartment/ Multi-family	1,288.8		906.8
Retail	601.8		561.3
Industrial/ Warehouse	442.9		344.2
Other	516.8		409.9
Total Commercial Mortgages	3,861.7		3,053.5
Construction, Acquisition and Development Loans	464.6		504.9
Total Commercial Real Estate Loans	$	4,326.3	$	3,558.4

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Buildings and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Buildings and Equipment

Buildings and Equipment

A summary of Buildings and Equipment is presented in the following table.

TABLE 79: BUILDINGS AND EQUIPMENT

	DECEMBER 31, 2021
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	11.5	$	0.3	$	11.2
Buildings	217.6		136.5		81.1
Equipment	478.4		275.4		203.0
Leasehold Improvements	513.6		320.2		193.4
Total Buildings and Equipment	$	1,221.1	$	732.4	$	488.7

	DECEMBER 31, 2020
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	14.5	$	0.5	$	14.0
Buildings	257.8		163.0		94.8
Equipment	816.4		596.8		219.6
Leasehold Improvements	523.9		337.4		186.5
Total Buildings and Equipment	$	1,612.6	$	1,097.7	$	514.9

The charge for depreciation amounted to $110.8 million in 2021, $116.5 million in 2020, and $103.2 million in 2019 on the consolidated statements of income.

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Lease Commitments

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease Commitments

Lease Commitments

At December 31, 2021, Northern Trust was obligated under a number of non-cancelable operating leases, primarily for real estate. Certain leases contain rent escalation clauses based on market indices, renewal option clauses calling for increased rentals, and rental payments based on usage. There are no restrictions imposed by any lease agreement regarding the payment of dividends, debt financing or Northern Trust entering into further lease agreements.

The components of lease costs for the years ended December 31, 2021 and 2020 were as follows.

TABLE 80: LEASE COST COMPONENTS

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Lease Cost	$	96.2	$	119.4
Variable Lease Cost	37.3		32.7
Sublease Income	(4.5)		(4.8)
Total Lease Cost	$	129.0	$	147.3

The following table presents a maturity analysis of lease liabilities as of December 31, 2021.

TABLE 81: MATURITY OF LEASE LIABILITIES

(In Millions)	MATURITY OF LEASE LIABILITIES
2022	$	93.2
2023	88.9
2024	80.3
2025	82.6
2026	61.7
Later Years	346.5
Total Lease Payments	753.2
Less: Imputed Interest	(90.1)
Present Value of Lease Liabilities	$	663.1

As of December 31, 2021, Northern Trust had commitments for operating leases in addition to the above that have not yet commenced for approximately $22 million. These operating leases are for the use of office space with lease terms of between 10 and 12 years and are expected to commence between the first half of 2022 and mid-year 2023.

Northern Trust uses its incremental borrowing rate to determine the present value of lease payments for operating leases. Operating lease right-of-use (ROU) assets and lease liabilities may include options to extend or terminate the lease only when it is reasonably certain that Northern Trust will exercise that option. Northern Trust elects not to separate lease and non-lease components of a contract for its real estate leases. The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2021 and 2020 are presented in the following table.

TABLE 82: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES

(In Millions)	LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET	DECEMBER 31, 2021		DECEMBER 31, 2020
Assets
Operating Lease Right-of-Use Asset	Other Assets	$	531.2	$	560.5
Liabilities
Operating Lease Liability	Other Liabilities	$	663.1	$	700.6

The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2021 and 2020 were as follows:

TABLE 83: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE

	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Leases
Weighted-Average Remaining Lease Term	9.6 years		10.0 years
Weighted-Average Discount Rate	2.4	%	2.5	%

The following table provides supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020.

TABLE 84: SUPPLEMENTAL CASH FLOW INFORMATION

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows	$	69.5	$	107.9
Supplemental non-cash information
Right-of-use assets obtained in exchange for new operating lease liabilities	$	58.5	$	164.8

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Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2021 and 2020, including the effect of foreign exchange rates on non-U.S.-dollar denominated balances, were as follows.

TABLE 85: GOODWILL

(In Millions)	CORPORATE & INSTITUTIONAL SERVICES		WEALTH MANAGEMENT		TOTAL
Balance at December 31, 2019(1)	$	616.4	$	80.4	$	696.8
Foreign Exchange Rates	10.3		0.1		10.4
Balance at December 31, 2020	$	626.7	$	80.5	$	707.2
Goodwill Acquired	4.2		—		4.2
Foreign Exchange Rates	(5.2)		—		(5.2)
Balance at December 31, 2021	$	625.7	$	80.5	$	706.2

(1) $9.3 million of goodwill was moved from Corporate & Institutional Services to Wealth Management for reporting purposes, to better reflect the nature of the client base.

In the second quarter of 2021, Northern Trust finalized the acquisition of Parilux Investment Technology, LLC, a provider of middle office software solutions for multi-manager investors, completing the investment in the firm that was initiated in 2018. The purchase price recorded in connection with the closing of the acquisition totaled $17.6 million. Goodwill and developed technology associated with the acquisition totaled $4.2 million and $13.4 million, respectively.

The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Corporate & Institutional Services and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2021 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2021.

Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2021 and 2020 were as follows.

TABLE 86: OTHER INTANGIBLE ASSETS

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	206.4	$	221.3
Less: Accumulated Amortization	114.8		108.7
Net Book Value	$	91.6	$	112.6

Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets. Amortization expense related to other intangible assets was $14.8 million, $16.9 million, and $16.6 million for the years ended December 31, 2021, 2020, and 2019, respectively. Amortization for the years 2022, 2023, 2024, 2025, and 2026 is estimated to be $9.9 million, $9.6 million, $9.5 million, $8.9 million, and $8.6 million respectively.

Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2021 and 2020 were as follows.

TABLE 87: CAPITALIZED SOFTWARE

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	2,982.1	$	4,337.4
Less: Accumulated Amortization	1,299.5		2,744.5
Net Book Value	$	1,682.6	$	1,592.9

Capitalized software, which is included in Other Assets on the consolidated balance sheets, consists primarily of purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use. Fees paid for the use of software licenses that are not hosted by Northern Trust are expensed as incurred.

Amortization expense, which is included in Equipment and Software on the consolidated statements of income, totaled $390.1 million in 2021, $366.9 million in 2020, and $339.1 million in 2019.

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Deposits

12 Months Ended

Dec. 31, 2021

Banking And Thrift, Time Deposits [Abstract]

Deposits

Deposits

The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2021.

TABLE 88: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE

	DECEMBER 31, 2021
	U.S. OFFICE		NON-U.S. OFFICES
(In Millions)	CERTIFICATES OF DEPOSIT		OTHER TIME		TOTAL
1 Year or Less	$	625.3	$	383.5	$	1,008.8
Over 1 Year to 2 Years	13.8		—		13.8
Over 2 Years to 3 Years	1.5		—		1.5
Over 3 Years to 4 Years	0.3		—		0.3
Over 4 Years to 5 Years	0.8		—		0.8
Over 5 Years	—		—		—
Total	$	641.7	$	383.5	$	1,025.2

As of December 31, 2020, there were $906.8 million of time deposits in denominations of $250,000 or greater, of which $701.4 million were Certificates of Deposit and $205.4 million were non-U.S.

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Senior Notes and Long-Term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Senior Notes and Long-Term Debt

Senior Notes and Long-Term Debt

Senior Notes. A summary of Senior Notes outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 89: SENIOR NOTES

	DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Senior Notes(1)
Fixed Rate Due Aug. 2021(2)	3.375	%	$	—	$	499.8
Fixed Rate Due Aug. 2022(2)	2.375		499.8		499.6
Fixed Rate Due Aug. 2028(3)(4)	3.65		548.5		584.4
Fixed Rate Due May 2029(3)(4)	3.15		533.9		567.9
Fixed Rate Due May 2030(3)(4)	1.95		923.3		970.7
Total Senior Notes			$	2,505.5	$	3,122.4

(1) As of December 31, 2021, debt issuance costs of $2.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Redeemable within three months of maturity.

(4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $12.5 million and $130.7 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

Long-Term Debt. A summary of Long-Term Debt outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 90: LONG-TERM DEBT

			DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Subordinated Debt(1)
Fixed Rate Notes due Oct. 2025(2)(3)	3.95	%	$	796.2	$	839.8
Fixed-to-Floating Rate Notes due May 2032(4)	3.375		349.5		349.5
Total Long-Term Debt			$	1,145.7	$	1,189.3
Long-Term Debt Qualifying as Risk-Based Capital			$	799.8	$	949.7

(1) As of December 31, 2021, debt issuance costs of $0.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $46.9 million and $90.8 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

(4) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of 3.375%, payable semi-annually in arrears. From, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month LIBOR plus 1.131%, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.

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Floating Rate Capital Debt

12 Months Ended

Dec. 31, 2021

Brokers and Dealers [Abstract]

Floating Rate Capital Debt

Floating Rate Capital Debt

In January 1997, the Corporation issued $150 million of Floating Rate Capital Securities, Series A, through a statutory business trust wholly owned by the Corporation (NTC Capital I) due in January 2027. In April 1997, the Corporation also issued, through a separate wholly owned statutory business trust (NTC Capital II), $120 million of Floating Rate Capital Securities, Series B due in April 2027. The sole assets of the trusts were subordinated debentures of the Corporation that had the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. The Series A securities were issued at a discount to yield 60.5 basis points above the three-month LIBOR and the Series B securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR. The holders of the Series A and B securities were entitled to receive preferential cumulative cash distributions quarterly in arrears (based on the liquidation amount of $1,000 per security) at an interest rate equal to three-month LIBOR plus 52.0 basis points and 59.0 basis points, respectively.

On October 15, 2021, the Floating Rate Capital Securities Series A and Series B were redeemed at the principal amount plus accrued and unpaid interest and, concurrently with the redemption of the Floating Rate Capital Securities Series A and B, the corresponding subordinated debentures were fully redeemed for $278.8 million principal amount plus accrued and unpaid interest, with $154.9 million attributable to the Series A subordinated debentures and $123.9 million attributable to the Series B subordinated debentures.

The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2021 and 2020.

TABLE 91: SUBORDINATED DEBENTURES

	DECEMBER 31,
(In Millions)	2021		2020
NTC Capital I Subordinated Debentures	$	—	$	154.3
NTC Capital II Subordinated Debentures	—		123.5
Total Subordinated Debentures	$	—	$	277.8

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Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board of Directors is authorized to fix the particular designations, preferences and relative, participating, optional and other special rights and qualifications, limitations or restrictions for each series of preferred stock issued.

As of December 31, 2021, 5,000 shares of Series D Non-Cumulative Perpetual Preferred Stock (the “Series D Preferred Stock”) and 16,000 shares of Series E Non-Cumulative Perpetual Preferred Stock (the “Series E Preferred Stock”) were outstanding.

Series D Preferred Stock. As of December 31, 2021, the Corporation had issued and outstanding 500,000 depositary shares, each representing a 1/100th ownership interest in a share of Series D Preferred Stock, issued in August 2016. Equity related to Series D Preferred Stock as of December 31, 2021 and 2020 was $493.5 million. Shares of the Series D

Preferred Stock have no par value and a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share).

Dividends on the Series D Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, at a rate per annum equal to (i) 4.60% from the original issue date of the Series D Preferred Stock to but excluding October 1, 2026; and (ii) a floating rate equal to three-month LIBOR plus 3.202% from and including October 1, 2026. Fixed rate dividends are payable in arrears on the first day of April and October of each year, through and including October 1, 2026, and floating rate dividends will be payable in arrears on the first day of January, April, July and October of each year, commencing on January 1, 2027.

The Series D Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after October 1, 2026. The Series D Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to October 1, 2026, within 90 days of a regulatory capital treatment event, as described in the Series D Preferred Stock Certificate of Designation.

Shares of the Series D Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series D Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.

Series E Preferred Stock. As of December 31, 2021, the Corporation had issued and outstanding 16 million depositary shares, each representing 1/1,000th ownership interest in a share of Series E Preferred Stock, issued in November 2019. Equity related to Series E Preferred Stock as of December 31, 2021 and 2020 was $391.4 million. Shares of the Series E Preferred Stock have no par value and a liquidation preference of $25,000 per share (equivalent to $25 per depositary share).

Dividends on the Series E Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, at a rate per annum equal to 4.70%. On October 19, 2021, the Corporation declared a cash dividend of $293.75 per share of Series E Preferred Stock payable on January 1, 2022, to stockholders of record as of December 15, 2021.

The Series E Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after January 1, 2025. The Series E Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to January 1, 2025, within 90 days of a regulatory capital treatment event, as described in the Series E Preferred Stock Certificate of Designation.

Shares of the Series E Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series E Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.

Common Stock. During the year ended December 31, 2021, the Corporation repurchased 2,527,544 shares of common stock, including 394,326 shares withheld related to share-based compensation, at a total cost of $267.6 million. These repurchases were made pursuant to the repurchase program authorized by the Board of Directors in July 2018. In October 2021, this program was terminated and replaced with a new repurchase program, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other incentive plans. The repurchase authorization approved by the Board of Directors has no expiration date, thus the Corporation retains the ability to repurchase when circumstances warrant and applicable regulation permits.

The average price paid per share for common stock repurchased in 2021, 2020, and 2019 was $105.90, $91.49, and $93.40, respectively.

An analysis of changes in the number of shares of common stock outstanding follows:

TABLE 92: SHARES OF COMMON STOCK

	2021	2020	2019
Balance at January 1	208,289,178	209,709,046	219,012,050
Incentive Plan and Awards	1,162,484	1,512,035	1,688,931
Stock Options Exercised	837,757	344,686	786,931
Treasury Stock Purchased	(2,527,544)	(3,276,589)	(11,778,866)
Balance at December 31	207,761,875	208,289,178	209,709,046

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2021, 2020, and 2019, and changes during the years then ended.

TABLE 93: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(In Millions)	NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at December 31, 2018	$	(114.9)	$	4.0	$	67.9	$	(410.7)	$	(453.7)
Net Change	228.9		(7.7)		49.9		(12.1)		259.0
Balance at December 31, 2019	$	114.0	$	(3.7)	$	117.8	$	(422.8)	$	(194.7)
Net Change	527.8		0.5		26.9		67.5		622.7
Balance at December 31, 2020	$	641.8	$	(3.2)	$	144.7	$	(355.3)	$	428.0
Net Change	(534.7)		0.8		10.5		59.8		(463.6)
Balance at December 31, 2021	$	107.1	$	(2.4)	$	155.2	$	(295.5)	$	(35.6)

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM. Refer to Note 4, “Securities” for further information.

TABLE 94: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31,	2021						2020						2019
(In Millions)	BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX
Unrealized Gains (Losses) on Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities	$	(685.0)	$	177.5	$	(507.5)	$	706.8	$	(179.3)	$	527.5	$	306.1	$	(78.0)	$	228.1
Reclassification Adjustments for Losses (Gains) Included in Net Income:
Interest Income on Debt Securities(1)	(36.6)		9.2		(27.4)		—		—		—		—		—		—
Net Losses on Debt Securities(2)	0.3		(0.1)		0.2		0.4		(0.1)		0.3		1.1		(0.3)		0.8
Net Change	$	(721.3)	$	186.6	$	(534.7)	$	707.2	$	(179.4)	$	527.8	$	307.2	$	(78.3)	$	228.9
Unrealized (Losses) Gains on Cash Flow Hedges
Foreign Exchange Contracts	$	5.6	$	(1.4)	$	4.2	$	28.9	$	(7.3)	$	21.6	$	14.9	$	(3.7)	$	11.2
Interest Rate Contracts	—		—		—		—		—		—		1.5		(0.3)		1.2
Reclassification Adjustment for (Gains) Losses Included in Net Income(3)	(4.5)		1.1		(3.4)		(28.1)		7.0		(21.1)		(26.7)		6.6		(20.1)
Net Change	$	1.1	$	(0.3)	$	0.8	$	0.8	$	(0.3)	$	0.5	$	(10.3)	$	2.6	$	(7.7)
Foreign Currency Adjustments
Foreign Currency Translation Adjustments	$	(133.8)	$	4.1	$	(129.7)	$	169.1	$	(8.3)	$	160.8	$	6.4	$	(1.6)	$	4.8
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains	0.6		(0.1)		0.5		2.1		(0.5)		1.6		(0.5)		0.1		(0.4)
Net Investment Hedge Gains (Losses)	186.6		(46.9)		139.7		(178.7)		43.2		(135.5)		59.7		(14.2)		45.5
Net Change	$	53.4	$	(42.9)	$	10.5	$	(7.5)	$	34.4	$	26.9	$	65.6	$	(15.7)	$	49.9
Pension and Other Postretirement Benefit Adjustments
Net Actuarial (Losses) Gains	$	7.9	$	0.2	$	8.1	$	47.4	$	(12.3)	$	35.1	$	(36.8)	$	7.9	$	(28.9)
Reclassification Adjustment for Losses (Gains) Included in Net Income(4)
Amortization of Net Actuarial Loss	41.4		(10.3)		31.1		42.2		(10.4)		31.8		22.4		(5.4)		17.0
Amortization of Prior Service Cost (Credit)	(1.0)		0.3		(0.7)		(0.1)		—		(0.1)		(0.2)		—		(0.2)
Settlement Loss(5)	28.3		(7.0)		21.3		0.8		(0.1)		0.7		—		—		—
Net Change	$	76.6	$	(16.8)	$	59.8	$	90.3	$	(22.8)	$	67.5	$	(14.6)	$	2.5	$	(12.1)
Total Net Change	$	(590.2)	$	126.6	$	(463.6)	$	790.8	$	(168.1)	$	622.7	$	347.9	$	(88.9)	$	259.0

(1) The before-tax reclassification adjustment out of AOCI is related to the amortization of unrealized gains (losses) on AFS debt securities that were transferred to HTM debt securities during the second quarter of 2021. Refer to Note 4, “Securities” for further information.

(2) The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on AFS debt securities is recorded in Investment Security Losses, net on the consolidated statements of income.

(3) See Note 27, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges.

(4) The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense on the consolidated statements of income.

(5) This line includes the before-tax $27.9 million U.S. Qualified Plan pension settlement charge in 2021. Refer to Note 23, “Employee Benefits” for further information.

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Net Income per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income per Common Share

Net Income per Common Share

The computations of net income per common share are presented in the following table.

TABLE 95: NET INCOME PER COMMON SHARE

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions Except Per Common Share Information)	2021		2020		2019
BASIC NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Less: Dividends on Preferred Stock	41.8		56.2		46.4
Net Income Applicable to Common Stock	1,503.5		1,153.1		1,445.8
Less: Earnings Allocated to Participating Securities	12.9		12.1		16.9
Earnings Allocated to Common Shares Outstanding	$	1,490.6	$	1,141.0	$	1,428.9
Basic Net Income Per Common Share	7.16		5.48		6.66
DILUTED NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Plus Dilutive Effect of Share-based Compensation	823,708		688,574		1,075,602
Average Common and Potential Common Shares	208,899,230		209,007,986		215,601,149
Earnings Allocated to Common and Potential Common Shares	$	1,490.6	$	1,141.1	$	1,428.9
Diluted Net Income Per Common Share	7.14		5.46		6.63

Note: For the years ended December 31, 2021, 2020, and 2019, there were no common stock equivalents excluded in the computation of diluted net income per share.

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Revenue from Contracts with Clients

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Clients

Revenue from Contracts with Clients

Trust, Investment, and Other Servicing Fees. Custody and Fund Administration income is comprised of revenues received from our core asset servicing business for providing custody, fund administration, and middle-office-related services, primarily to C&IS clients. Investment Management and Advisory income contains revenue received from providing asset management and related services to Wealth Management and C&IS clients and to Northern Trust sponsored funds. Securities Lending income represents revenues generated from securities lending arrangements that Northern Trust enters into as agent, mainly with C&IS clients. Other income largely consists of revenues received from providing employee benefit, investment risk and analytic and other services to C&IS and Wealth Management clients.

Other Noninterest Income. Treasury management income represents revenues received from providing cash and liquidity management services to C&IS and Wealth Management clients. The portion of Security Commissions and Trading Income that relates to revenue from contracts with clients is primarily comprised of commissions earned from providing securities brokerage services to Wealth Management and C&IS clients. The portion of Other Operating Income that relates to revenue from contracts with clients is mainly comprised of service fees for banking-related services provided to Wealth Management and C&IS clients.

Performance Obligations. Clients are typically charged monthly or quarterly in arrears based on the fee arrangement agreed to with each client; payment terms will vary depending on the client and services offered.

Substantially all revenues generated from contracts with clients for asset servicing, asset management, securities lending, treasury management and banking-related services are recognized on an accrual basis, over the period in which services are provided. The nature of Northern Trust’s performance obligations is to provide a series of distinct services in which the customer simultaneously receives and consumes the benefits of the promised services as they are performed. Fee arrangements are mainly comprised of variable amounts based on market value of client assets managed and serviced, transaction volumes, number of accounts, and securities lending volume and spreads. Revenue is recognized using the output method in an amount that reflects the consideration to which Northern Trust expects to be entitled in exchange for providing each month or quarter of service. For contracts with multiple performance obligations, revenue is allocated to each performance obligation based on the price agreed to with the client, representing its relative standalone selling price.

Security brokerage revenue is primarily represented by securities commissions received in exchange of providing trade execution related services. Control is transferred at a point in time, on the trade date of the transaction, and fees are typically variable based on transaction volumes and security types.

Northern Trust’s contracts with its clients are typically open-ended arrangements and are therefore considered to have an original duration of less than one year. Northern Trust has elected the practical expedient to not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less.

The following table presents revenues disaggregated by major revenue source.

TABLE 96: REVENUE DISAGGREGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	1,917.5	$	1,674.3	$	1,636.4
Investment Management and Advisory	2,140.0		2,029.3		1,930.6
Securities Lending	76.9		88.3		87.7
Other	226.7		203.1		197.4
Total Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Other Noninterest Income
Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Treasury Management Fees	44.3		45.4		44.5
Security Commissions and Trading Income	140.2		133.2		103.6
Other Operating Income	243.9		194.0		145.5
Investment Security Losses, net	(0.3)		(0.4)		(1.4)
Total Other Noninterest Income	$	720.7	$	662.6	$	543.1
Total Noninterest Income	$	5,081.8	$	4,657.6	$	4,395.2

On the consolidated statements of income, Trust, Investment and Other Servicing Fees and Treasury Management Fees represent revenue from contracts with clients. For the year ended December 31, 2021, revenue from contracts with clients also includes $112.1 million of the $140.2 million total Security Commissions and Trading Income and $53.9 million of the $243.9 million total Other Operating Income. For the year ended December 31, 2020, revenue from contracts with clients also includes $102.4 million of the $133.2 million total Security Commissions and Trading Income and $42.8 million of the $194.0 million total Other Operating Income. For the year ended December 31, 2019, revenue from contracts with clients also includes $87.1 million of the $103.6 million total Security Commissions and Trading Income and $41.8 million of the $145.5 million total Other Operating Income.

Receivables Balances. The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2021 and 2020.

TABLE 97: CLIENT RECEIVABLES

	DECEMBER 31,
(In Millions)	2021		2020
Trust Fees Receivable, net(1)	$	925.2	$	819.3
Other	126.9		116.5
Total Client Receivables	$	1,052.1	$	935.8

(1) Trust Fees Receivable is net of a $10.9 million and $7.2 million fee receivable allowance as of December 31, 2021 and 2020, respectively.

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Net Interest Income

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

Net Interest Income

Net Interest Income

The components of Net Interest Income were as follows:

TABLE 98: NET INTEREST INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Interest Income
Loans and Leases	$	713.5	$	774.6	$	1,153.4
Securities – Taxable	667.6		812.4		1,070.7
– Non-Taxable(1)	1.5		1.4		3.8
Interest-Bearing Due from and Deposits with Banks(2)	9.1		22.4		72.4
Federal Reserve and Other Central Bank Deposits and Other	14.8		32.7		199.6
Total Interest Income	$	1,406.5	$	1,643.5	$	2,499.9
Interest Expense
Deposits(3)	$	(61.3)	$	48.4	$	488.9
Federal Funds Purchased	(0.4)		2.2		25.9
Securities Sold under Agreements to Repurchase	0.2		1.0		6.4
Other Borrowings	14.2		45.3		181.7
Senior Notes	48.3		72.7		72.6
Long-Term Debt	21.1		26.5		38.3
Floating Rate Capital Debt	1.7		4.2		8.2
Total Interest Expense	$	23.8	$	200.3	$	822.0
Net Interest Income	$	1,382.7	$	1,443.2	$	1,677.9

(1) Non-Taxable Securities represent securities that are exempt from U.S. federal income taxes.

(2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(3) Deposits were impacted by low and negative interest rates from Non-U.S. Offices Interest-Bearing Deposits, which was approximately 68% of total Interest-Bearing Deposits for the year ended December 31, 2021.

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Other Operating Income

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other Operating Income

Other Operating Income

The components of Other Operating Income were as follows:

TABLE 99: OTHER OPERATING INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Loan Service Fees	$	66.6	$	52.5	$	48.0
Banking Service Fees	50.9		46.1		45.6
Other Income	126.4		95.4		51.9
Total Other Operating Income	$	243.9	$	194.0	$	145.5

Other Operating Income in 2021 increased from 2020, primarily due to higher banking and credit-related service charges, distributions from investments in community development projects and gains from property sales.

Other Operating Expense

The components of Other Operating Expense were as follows:

TABLE 100: OTHER OPERATING EXPENSE

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Business Promotion	$	65.5	$	59.2	$	104.2
Staff Related	33.9		29.4		42.8
FDIC Insurance Premiums	14.6		11.8		9.9
Other Intangibles Amortization	14.8		16.9		16.6
Other Expenses	170.3		229.4		156.3
Total Other Operating Expense	$	299.1	$	346.7	$	329.8

Other Operating Expense in 2021 decreased from 2020 primarily due to lower charges associated with account servicing activities and a decline in other miscellaneous expenses. The account servicing activities in the prior year included a $43.4 million charge related to a corporate action processing error.

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Other Operating Expense

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other Operating Expense

Other Operating Income

The components of Other Operating Income were as follows:

TABLE 99: OTHER OPERATING INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Loan Service Fees	$	66.6	$	52.5	$	48.0
Banking Service Fees	50.9		46.1		45.6
Other Income	126.4		95.4		51.9
Total Other Operating Income	$	243.9	$	194.0	$	145.5

Other Operating Income in 2021 increased from 2020, primarily due to higher banking and credit-related service charges, distributions from investments in community development projects and gains from property sales.

Other Operating Expense

The components of Other Operating Expense were as follows:

TABLE 100: OTHER OPERATING EXPENSE

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Business Promotion	$	65.5	$	59.2	$	104.2
Staff Related	33.9		29.4		42.8
FDIC Insurance Premiums	14.6		11.8		9.9
Other Intangibles Amortization	14.8		16.9		16.6
Other Expenses	170.3		229.4		156.3
Total Other Operating Expense	$	299.1	$	346.7	$	329.8

Other Operating Expense in 2021 decreased from 2020 primarily due to lower charges associated with account servicing activities and a decline in other miscellaneous expenses. The account servicing activities in the prior year included a $43.4 million charge related to a corporate action processing error.

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table reconciles the statutory federal tax rate with the effective tax rate for the periods presented below.

TABLE 101: INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
	2021		2020		2019
Statutory Federal Tax Rate	21.0	%	21.0	%	21.0	%
Tax Exempt Income	(0.6)		(0.9)		(0.6)
Foreign Tax Rate Differential	0.1		0.7		0.2
Excess Tax Benefit Related to Share-Based Compensation	(0.4)		(0.6)		(0.9)
Tax Credits	(1.6)		(1.7)		(1.0)
Reversal of Tax Benefits Previously Recognized through Earnings	—		1.6		—
State Taxes, net	3.4		3.2		2.8
Valuation Allowance	0.6		1.6		1.5
Other	0.6		0.8		0.2
Effective Tax Rate	23.1	%	25.7	%	23.2	%

Income tax expense for the year ended December 31, 2021 and 2020 was $464.8 million and $418.3 million, representing an effective tax rate of 23.1% and 25.7%, respectively. For the year ended December 31, 2021, the decrease in the effective tax rate was primarily driven by the lower net tax impact from international operations and $26.8 million of prior-year tax expense related to the reversal of tax benefits previously recognized through earnings.

For the year ended December 31, 2020, the increase in the effective tax rate was primarily driven by $26.8 million of tax expense related to the reversal of tax benefits previously recognized through earnings and higher taxes payable on the income of the Corporation’s non-U.S. branches.

For the year ended December 31, 2019, the effective tax rate included an increase in the U.S. taxes payable on the income of the Corporation’s non-U.S. branches. This increase included a valuation allowance against deferred tax assets as management believes the foreign tax credit carryforward generated in 2019 will not be fully realized.

The Corporation files income tax returns in the U.S. federal, various state, and foreign jurisdictions. The Corporation is no longer subject to income tax examinations by U.S. federal authorities before 2013, U.S. state or local tax authorities for years before 2011, or non-U.S. tax authorities for years before 2013.

Included in Other Liabilities on the consolidated balance sheets at December 31, 2021 and 2020 were $25.3 million and $22.4 million of unrecognized tax benefits, respectively. If recognized, the amounts would reduce 2021 and 2020 income tax expense by $23.9 million and $20.7 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows.

TABLE 102: UNRECOGNIZED TAX BENEFITS

(In Millions)	2021		2020		2019
Balance at January 1	$	22.4	$	25.3	$	21.9
Additions for Tax Positions Taken in the Current Year	1.2		0.9		0.9
Additions for Tax Positions Taken in Prior Years	4.2		0.4		4.0
Reductions for Tax Positions Taken in Prior Years	(2.5)		(4.2)		(1.5)
Reductions Resulting from Expiration of Statutes	—		—		—
Balance at December 31	$	25.3	$	22.4	$	25.3

It is possible that changes in the amount of unrecognized tax benefits could occur in the next 12 months due to changes in judgment related to recognition or measurement, settlements with taxing authorities, or expiration of statute of limitations. Management does not believe that future changes, if any, would have a material effect on the consolidated financial position or liquidity of Northern Trust, although they could have a material effect on operating results for a particular period.

A benefit for interest and penalties of $0.4 million, net of tax, was included in the Provision for Income Taxes for the year ended December 31, 2021. This compares to a provision for interest and penalties of $1.2 million, net of tax, and a benefit of $1.3 million, net of tax, for the year ended December 31, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the liability for the potential payment of interest and penalties totaled $9.2 million and $9.6 million, net of tax, respectively.

The components of the consolidated Provision for Income Taxes for each of the three years ended December 31 are as follows.

TABLE 103: PROVISION FOR INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Current Tax Provision:
Federal	$	241.5	$	203.0	$	216.4
State	74.0		57.2		50.7
Non-U.S.	147.3		141.7		150.5
Total	$	462.8	$	401.9	$	417.6
Deferred Tax Provision:
Federal	$	(11.7)	$	8.8	$	16.5
State	12.0		5.4		16.5
Non-U.S.	1.7		2.2		1.3
Total	$	2.0	$	16.4	$	34.3
Provision for Income Taxes	$	464.8	$	418.3	$	451.9

In addition to the amounts shown above, tax charges and benefits have been recorded directly to Stockholders’ Equity for the following.

TABLE 104: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Tax Effect of Other Comprehensive Income	$	(126.6)	$	168.1	$	88.9

Deferred taxes result from temporary differences between the amounts reported on the consolidated financial statements and the tax bases of assets and liabilities. Deferred tax assets and liabilities have been computed as follows.

TABLE 105: NET DEFERRED TAX LIABILITIES

	DECEMBER 31,
(In Millions)	2021		2020
Deferred Tax Liabilities:
Lease Financing	$	7.0	$	9.0
Software Development	271.8		268.1
Depreciation and Amortization	181.3		147.0
Unrealized Gains on Securities, net	82.8		247.6
Compensation and Benefits	65.6		43.8
State Taxes, net	76.3		67.4
Other Liabilities	23.3		18.7
Gross Deferred Tax Liabilities	708.1		801.6
Deferred Tax Assets:
Allowance for Credit Losses	38.6		54.5
Tax Credit and Loss Carryforwards	68.2		55.2
Other Assets	85.4		38.4
Gross Deferred Tax Assets	192.2		148.1
Valuation Reserve	(68.2)		(55.2)
Deferred Tax Assets, net of Valuation Reserve	124.0		92.9
Net Deferred Tax Liabilities	$	584.1	$	708.7

The Corporation generated a foreign tax credit carryforward during the years ended December 31, 2021 and 2020, expiring in 2031 and 2030, respectively. A cumulative valuation allowance related to the credit carryforward of $67.8 million and $54.7 million was recorded at December 31, 2021 and 2020, respectively, as management believes the foreign tax credit carryforwards will not be fully realized.

Northern Trust had various state net operating loss carryforwards as of December 31, 2021 and 2020. The income tax benefits associated with these loss carryforwards were approximately $0.4 million as of December 31, 2021 and $0.5 million as of December 31, 2020. A valuation allowance related to the loss carryforwards of $0.4 million and $0.5 million was recorded at December 31, 2021 and 2020, respectively, as management believes the net operating losses will not be fully realized.

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Employee Benefits

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefits

The Corporation and certain of its subsidiaries provide various benefit programs, including defined benefit pension, postretirement health care, and defined contribution plans. A description of each major plan and related disclosures are provided below.

Pension. A noncontributory qualified defined benefit pension plan covers substantially all U.S. employees of Northern Trust. Employees of certain European subsidiaries retain benefits in local defined benefit plans, although those plans are closed to new participants and to future benefit accruals. Employees continue to accrue benefits under the Swiss pension plan, which is accounted for as a defined benefit plan under U.S. GAAP.

Northern Trust also maintains a noncontributory supplemental pension plan for participants whose retirement benefits under the U.S. Qualified Plan are expected to exceed the limits imposed by federal tax law. Northern Trust has a nonqualified trust, referred to as a “Rabbi” Trust, used to hold assets designated for the funding of benefits in excess of those permitted in certain of its qualified retirement plans. This arrangement offers participants a degree of assurance for payment of benefits in excess of those permitted in the related qualified plans. As the “Rabbi” Trust assets remain subject to the claims of creditors and are not the property of the employees, they are accounted for as corporate assets and are included in Other Assets on the consolidated balance sheets. Total assets in the “Rabbi” Trust related to the nonqualified pension plan at December 31, 2021 and 2020 amounted to $117.8 million and $137.5 million, respectively. Contributions of $6.7 million and $10.6 million were made to the “Rabbi” Trust in 2021 and 2020, respectively.

The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2021, 2020, and 2019. Prior service credits are being amortized on a straight-line basis over 11 years for the U.S. Qualified Plan and prior service costs are being amortized on a straight-line basis over 10 years for the U.S. Non-Qualified Plan. Prior service credits will be amortized in full during the first half of 2022 for the U.S. Qualified Plan and prior service costs were amortized in full as of December 31, 2021 for the U.S. Non-Qualified Plan.

TABLE 106: EMPLOYEE BENEFIT PLAN STATUS

	U.S. QUALIFIED PLAN (1)						NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021			2020			2021			2020			2021			2020
Accumulated Benefit Obligation	$	1,246.6		$	1,312.9		$	204.5		$	228.5		$	125.5		$	139.8
Projected Benefit Obligation	$	1,401.3		$	1,470.6		$	210.1		$	236.1		$	147.7		$	162.3
Plan Assets at Fair Value	1,708.9			1,793.7			198.7			211.5			—			—
Funded Status at December 31	$	307.6		$	323.1		$	(11.4)		$	(24.6)		$	(147.7)		$	(162.3)
Weighted-Average Assumptions:
Discount Rates	3.03		%	2.75		%	1.34		%	0.93		%	2.80		%	2.45		%
Rate of Increase in Compensation Level	4.97			4.97			1.50			1.50			4.97			4.97
Expected Long-Term Rate of Return on Assets	5.25			5.25			1.79			1.28			N/A			N/A

(1) Discount rates of 3.05% and 3.06% and expected long-term rates of return on assets of 5.25% and 5.00% were utilized at the interim remeasurement dates as of June 30, 2021 and September 30, 2021, respectively.

TABLE 107: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Net Actuarial Loss	$	273.8	$	332.4	$	40.4	$	49.0	$	86.6	$	96.3
Prior Service (Credit) Cost	(0.1)		(0.6)		0.6		2.2		—		0.1
Gross Amount in Accumulated Other Comprehensive Income	273.7		331.8		41.0		51.2		86.6		96.4
Income Tax Effect	68.7		82.1		5.2		6.4		21.7		23.9
Net Amount in Accumulated Other Comprehensive Income	$	205.0	$	249.7	$	35.8	$	44.8	$	64.9	$	72.5

TABLE 108: NET PERIODIC PENSION EXPENSE

	U.S. QUALIFIED PLAN (1)									NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021					2020		2019		2021		2020		2019		2021		2020		2019
Service Cost	$	52.3				$	47.4	$	41.6	$	2.2	$	1.9	$	2.0	$	5.3	$	4.6	$	4.1
Interest Cost	40.4					43.3		47.2		2.2		2.9		3.9		3.7		4.8		5.8
Expected Return on Plan Assets	(79.0)					(76.8)		(86.9)		(3.2)		(3.1)		(4.4)		—		—		—
Amortization:
Net Actuarial Loss	32.4					35.0		17.2		1.0		0.8		0.6		8.2		7.0		5.6
Prior Service (Credit) Cost	(0.4)					(0.4)		(0.4)		0.2		0.4		0.3		0.1		0.2		0.2
Net Periodic Pension Expense	$	45.7				$	48.5	$	18.7	$	2.4	$	2.9	$	2.4	$	17.3	$	16.6	$	15.7
Settlement Expense	27.9					—		—		0.4		0.8		—		—		—		—
Total Pension Expense	$	73.6				$	48.5	$	18.7	$	2.8	$	3.7	$	2.4	$	17.3	$	16.6	$	15.7
Weighted-Average Assumptions:
Discount Rates	2.75		%	/ 3.05	%	3.37%		4.47%		0.93%		1.40%		2.16%		2.45%		3.37%		4.47%
	/ 3.06		%	/ 3.03	%
Rate of Increase in Compensation Level				4.97		4.97		4.39		1.50		1.50		1.75		4.97		4.97		4.39
Expected Long-Term Rate of Return on Assets	5.25			/  5.00		5.25		6.00		1.28		1.72		2.39		N/A		N/A		N/A

(1) In determining the pension expense for the U.S. Qualified Plan for 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021 and an expected long-term rate of return of 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 30, 2021.

Northern Trust’s U.S. Qualified Plan provides participants the option to select lump-sum benefit payments upon retirement and termination of service. In the second quarter of 2021 it became probable that total lump-sum payments in 2021 would exceed the settlement threshold of the sum of annual service and interest cost. Northern Trust recognized settlement charges related to its U.S. Qualified Plan in the second, third, and fourth quarter of 2021, which required interim remeasurements of the U.S. Qualified Plan as of each respective quarter-end. The settlement charge represents the pro rata

amount of the net loss in AOCI that is charged to income based on the proportion of the Projected Benefit Obligation settled to the total Projected Benefit Obligation and amounted to a total of $27.9 million in 2021.

The components of net periodic pension expense are included in Employee Benefits expense on the consolidated statements of income.

TABLE 109: CHANGE IN PROJECTED BENEFIT OBLIGATION

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Beginning Balance	$	1,470.6	$	1,323.4	$	236.1	$	211.1	$	162.3	$	149.2
Service Cost	52.3		47.4		2.2		1.9		5.3		4.6
Interest Cost	40.4		43.3		2.2		2.9		3.7		4.8
Employee Contributions	—		—		0.6		0.6		—		—
Plan Amendment	—		—		(1.4)		(0.5)		—		—
Actuarial Loss (Gain)	(19.1)		136.5		(10.4)		19.1		(2.0)		20.4
Settlement	(132.1)		—		(9.4)		(5.4)		—		—
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)		(21.6)		(16.7)
Foreign Exchange Rate Changes	—		—		(4.3)		10.5		—		—
Ending Balance	$	1,401.3	$	1,470.6	$	210.1	$	236.1	$	147.7	$	162.3

Actuarial gains of $31.5 million in 2021 were primarily caused by increases in discount rates, while actuarial losses of $176.0 million in 2020 were primarily caused by decreases in discount rates.

TABLE 110: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	U.S. QUALIFIED PLAN		NON-U.S.PENSION PLANS		U.S. NON-QUALIFIED PLAN
2022	$	85.6	$	4.4	$	20.0
2023	94.2		4.6		18.3
2024	95.1		4.7		11.7
2025	99.0		4.8		12.3
2026	97.8		5.6		13.3
2027-2031	515.6		34.8		63.9

TABLE 111: CHANGE IN PLAN ASSETS

	U.S. QUALIFIED PLAN				NON-U.S PENSION PLANS
(In Millions)	2021		2020		2021		2020
Fair Value of Assets at Beginning of Period	$	1,793.7	$	1,601.2	$	211.5	$	190.1
Actual Return on Assets(1)	58.1		272.5		(0.8)		17.9
Employer Contributions	—		—		4.5		5.0
Employee Contributions	—		—		0.6		0.6
Settlement	(132.1)		—		(9.4)		(5.4)
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)
Foreign Exchange Rate Changes	—		—		(2.2)		7.4
Fair Value of Assets at End of Period	$	1,708.9	$	1,793.7	$	198.7	$	211.5

(1) The 2021 actual return on assets for the U.S. Qualified Plan includes a reimbursement of $0.1 million of historical investment expenses paid from the pension trust.

The minimum required and maximum remaining deductible contributions for the U.S. Qualified Plan in 2022 are estimated to be zero and $413.0 million, respectively.

The investment strategy employed for Northern Trust’s U.S. Qualified Plan utilizes a dynamic glide path based on a set of pre-approved asset allocations to return-seeking and liability-hedging assets that vary in accordance with the U.S. Qualified Plan’s projected benefit obligation funded ratio. In general, as the U.S. Qualified Plan’s projected benefit obligation funded ratio increases beyond an established threshold, the U.S. Qualified Plan’s allocation to liability-hedging assets will increase while the allocation to return-seeking assets will decrease. Conversely, a decrease in the U.S. Qualified Plan’s projected benefit obligation funded ratio beyond an established threshold will result in a decrease in the U.S. Qualified Plan’s allocation to liability-hedging assets and increase in the allocation to return-seeking assets. Liability-

hedging assets include U.S. long credit bonds, U.S. long government bonds, and a custom completion strategy used to hedge more closely the liability duration of projected plan benefits with bond duration across all durations. Return-seeking assets include: U.S. equity, international developed equity, emerging markets equity, real estate, high yield bonds, global listed infrastructure, emerging market debt, private equity and hedge funds. During 2021, the funded ratio increased beyond the threshold and the asset allocation of the U.S. Qualified Plan was adjusted to the next stage of the glide path to allow for a greater component of liability-hedging assets.

Northern Trust utilizes an asset/liability methodology to determine the investment policies that will best meet its short and long-term objectives. The process is performed by modeling current and alternative strategies for asset allocation, funding policy and actuarial methods and assumptions. The financial modeling uses projections of expected capital market returns and expected volatility of those returns to determine alternative asset mixes having the greatest probability of meeting the U.S. Qualified Plan’s investment objectives. Risk tolerance is established through careful consideration of the U.S. Qualified Plan liabilities, funded status, and corporate financial condition. The intent of this strategy is to protect the U.S. Qualified Plan’s healthy funded status and generate returns, which in combination with minimal voluntary contributions are expected to outpace the U.S. Qualified Plan’s liability growth over the long run.

The target allocation of the U.S. Qualified Plan assets had been adjusted in March 2021 and consists of 55% U.S. long credit bonds, 15% global equities (developed and emerging markets), 10% custom completion, 5% private equity, 4% high yield bonds, 3% emerging market debt, 3% global listed infrastructure, 3% private real estate, and 2% hedge funds.

Global equity investments include common stocks that are listed on an exchange and investments in commingled funds that invest primarily in publicly traded equities. Equity investments are diversified across country, region, investment style and market capitalization. Fixed income securities held include U.S. treasury securities, corporate bonds, and investments in commingled funds that invest in a diversified blend of longer duration fixed income securities; the custom completion strategy uses U.S. treasury securities and interest rate futures (or similar instruments) to align more closely with the target hedge ratio across maturities. Diversifying investments, including private equity, hedge funds, private real estate, emerging market debt, high yield bonds, and global listed infrastructure, are used judiciously to enhance long-term returns while improving portfolio diversification. Private equity assets consist primarily of investments in limited partnerships that invest in individual companies in the form of non-public equity or non-public debt positions. Direct or co-investment in non-public stock by the U.S. Qualified Plan is prohibited. The U.S. Qualified Plan’s private equity investments are limited to 20% of each of the total limited partnership or fund of funds and the maximum allowable loss cannot exceed the commitment amount. The U.S. Qualified Plan invests in one hedge fund of funds, which invests, either directly or indirectly, in diversified portfolios of funds or other pooled investment vehicles.

Investments in private real estate, high yield bonds, emerging market debt, and global listed infrastructure are designed to provide income and added diversification.

Derivatives may be used, depending on the nature of the asset class to which they relate, to gain market exposure in an efficient and timely manner, to hedge foreign currency exposure or interest rate risk, or to alter the duration of a portfolio. There were three and five derivatives held by the U.S. Qualified Plan at December 31, 2021 and 2020, respectively.

Investment risk is measured and monitored on an ongoing basis through monthly liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Standards used to evaluate the U.S. Qualified Plan’s investment manager performance include, but are not limited to, the achievement of objectives, operation within guidelines and policy, and comparison against a benchmark. In addition, each manager of the investment funds held by the U.S. Qualified Plan is ranked against a universe of peers and compared to a benchmark. Total U.S. Qualified Plan performance analysis includes an analysis of the market environment, asset allocation impact on performance, risk and return relative to other ERISA plans, and manager impacts upon U.S. Qualified Plan performance.

The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by Northern Trust for the U.S. Qualified Plan assets measured at fair value.

Level 1 – Quoted, active market prices for identical assets or liabilities. The U.S. Qualified Plan’s Level 1 assets are comprised primarily of mutual funds and domestic common stocks. The U.S. Qualified Plan’s Level 1 investments that are exchange traded are valued at the closing price reported by the respective exchanges on the day of valuation.

Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. The U.S. Qualified Plan’s Level 2 assets are comprised of collective trust funds, corporate bonds, government obligations, and municipal and provincial bonds. The investments in collective trust funds fair values are calculated on a scheduled basis using the closing market prices and accruals of securities in the funds (total value of the funds) divided by the number of fund shares currently issued and outstanding. Redemptions of the collective trust funds occur by contract at the respective fund’s redemption date net asset value (NAV).

Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. The U.S. Qualified Plan did not hold Level 3 assets as of December 31, 2021 and 2020.

Assets valued at fair value using NAV per share - The U.S. Qualified Plan’s assets valued at fair value using NAV per share include investments in private equity funds and a hedge fund, which invest in underlying groups of investment funds or other pooled investment vehicles that are selected by the respective funds’ investment managers. The investment funds and the underlying investments held by these investment funds are valued at fair value. In determining the fair value of the underlying investments of each fund, the fund’s investment manager or general partner takes into account the estimated value reported by the underlying funds as well as any other considerations that may, in their judgment, increase or decrease such estimated value. The investments in the private equity funds and a hedge fund are considered to be long-term investments. There are no capital withdrawal options related to the investments in the private equity funds. However, capital is occasionally distributed as underlying investments are sold. It is estimated that the current private equity investments would be liquidated over 1 to 15 years, depending on the vintage year of a particular fund. With sixty-days advance notice, the Plan’s investment in the hedge fund can be withdrawn at the next calendar quarter end.

The U.S. Qualified Plan’s assets valued at fair value using NAV per share also include investments in real estate funds, which invest in real estate assets. The investment in properties by the real estate funds are carried at fair value, which is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. The valuation plan for each real estate investment is subject to review on an annual basis which is based on either an external appraisal from appraisal firms or internal valuations prepared by the real estate fund’s investment advisor. The Plan’s investment in real estate funds are considered to be long-term investments and, with forty-five days advance notice, can be withdrawn at the next calendar quarter end to the extent the real estate funds have liquid assets.

As investments in the private equity funds, hedge fund, and real estate fund are valued at fair value using NAV per share, they are not required to be categorized within the fair value hierarchy.

While Northern Trust believes its valuation methods for U.S. Qualified Plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions could have a material effect on the computation of the estimated fair values.

The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2021 and 2020.

TABLE 112: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	17.5	$	—	$	—	$	17.5
Foreign Common Stock	0.3		—		—		0.3
Domestic Corporate Bonds	—		341.7		—		341.7
Foreign Corporate Bonds	—		60.9		—		60.9
U.S. Government Obligations	—		103.9		—		103.9
Non-U.S. Government Obligations	—		20.0		—		20.0
Domestic Municipal and Provincial Bonds	—		21.0		—		21.0
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		837.2		—		837.2
Mutual Funds	108.9		—		—		108.9
Cash and Other	46.7		—		—		46.7
Total Assets at Fair Value in the Fair Value Hierarchy	$	173.4	$	1,385.0	$	—	$	1,558.4
Assets Valued at NAV per share
Northern Trust Private Equity Funds							34.5
Northern Trust Hedge Fund							36.7
Real Estate Funds							79.3
Total Assets at Fair Value							$	1,708.9

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	13.5	$	—	$	—	$	13.5
Domestic Corporate Bonds	—		314.4		—		314.4
Foreign Corporate Bonds	—		43.6		—		43.6
U.S. Government Obligations	2.9		113.1		—		116.0
Non-U.S. Government Obligations	—		22.9		—		22.9
Domestic Municipal and Provincial Bonds	—		22.4		—		22.4
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		985.5		—		985.5
Mutual Funds	167.0		—		—		167.0
Cash and Other	7.5		—		—		7.5
Total Assets at Fair Value in the Fair Value Hierarchy	$	190.9	$	1,502.2	$	—	$	1,693.1
Assets Valued at NAV per share
Northern Trust Private Equity Funds							20.3
Northern Trust Hedge Fund							34.2
Real Estate Funds							46.1
Total Assets at Fair Value							$	1,793.7

A building block approach is employed for Northern Trust’s U.S. Qualified Plan in determining the long-term rate of return for plan assets. Historical markets and long-term historical relationships between equities, fixed income and other asset classes are studied using the widely accepted capital market principle that assets with higher volatility generate a greater return over the long-run. Current market factors such as inflation expectations and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio rate of return is established with consideration given to diversification and rebalancing. The rate is reviewed against peer data and historical returns to verify the return is reasonable and appropriate. Based on this approach and the U.S. Qualified Plan’s target asset allocation, the expected long-term rate of return on assets as of the U.S. Qualified Plan’s December 31, 2021 measurement date was set at 5.25%.

Postretirement Health Care. Northern Trust maintains an unfunded postretirement health care plan under which those employees who retire at age 55 or older under the provisions of the U.S. defined benefit plan and had attained 15 years of service as of December 31, 2011 may be eligible for subsidized postretirement health care coverage. The provisions of this health care plan may be changed further at the discretion of Northern Trust, which also reserves the right to terminate these benefits at any time.

Northern Trust changed the plan design of its post-retirement health care plan as of January 1, 2021, which resulted in the recognition of a prior service credit of $12.7 million at the time these changes were communicated to participants in August 2020. Concurrently, a further shift in population from active to inactive participants required an adjustment to the amortization period from the average remaining service period of active participants to the average life expectancy of the inactive participants. Prior service credits are being amortized on a straight-line basis over 13.9 years.

The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2021 and 2020, the net periodic postretirement benefit cost of the plan for 2021 and 2020, and the change in the accumulated postretirement benefit obligation during 2021 and 2020.

TABLE 113: POSTRETIREMENT HEALTH CARE PLAN STATUS

	DECEMBER 31,
(In Millions)	2021		2020
Accumulated Postretirement Benefit Obligation at Measurement Date:
Retirees and Dependents	$	8.7	$	13.2
Actives Eligible for Benefits	1.5		2.5
Net Postretirement Benefit Obligation	$	10.2	$	15.7

TABLE 114: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME

	DECEMBER 31,
(In Millions)	2021		2020
Net Actuarial (Gain) Loss	$	(5.3)	$	(4.9)
Prior Service (Credit) Cost	(11.5)		(12.4)
Gross Amount in Accumulated Other Comprehensive Income	(16.8)		(17.3)
Income Tax Effect	(4.2)		(4.3)
Net Amount in Accumulated Other Comprehensive Income	$	(12.6)	$	(13.0)

TABLE 115: NET PERIODIC POSTRETIREMENT EXPENSE (BENEFIT)

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Service Cost	$	—	$	—	$	—
Interest Cost	0.3		0.7		1.2
Expected Return on Plan Assets	—		—		—
Amortization
Net Actuarial (Gain)	(0.2)		(0.6)		(1.1)
Prior Service (Credit) Cost	(0.9)		(0.3)		—
Net Periodic Postretirement Expense	$	(0.8)	$	(0.2)	$	0.1

TABLE 116: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Beginning Balance	$	15.7	$	28.8
Service Cost	—		—
Interest Cost	0.3		0.7
Plan Amendment	—		(12.7)
Actuarial (Gain)	(3.3)		(0.1)
Net Claims Paid	(2.5)		(1.0)
Ending Balance	$	10.2	$	15.7

Northern Trust uses the aggregate Pri-2012 mortality table with a 2012 base year and proposed future improvements under scale MP-2021, as released by the Society of Actuaries in October 2021. The assumption for future mortality improvements was updated at December 31, 2021 from the prior year’s improvement scale MP-2020.

TABLE 117: ESTIMATED FUTURE BENEFIT PAYMENTS

(In Millions)	TOTAL POSTRETIREMENT MEDICAL BENEFITS
2022	$	1.5
2023	1.4
2024	1.3
2025	1.2
2026	1.1
2027-2031	4.3

The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 2.56% at December 31, 2021, and 2.16% at December 31, 2020. Due to the changes in the plan design as of January 1, 2021, the health care cost trend rate assumptions including the assumption for drug claims, are not currently impacting the measurement of the postretirement health care plan.

Defined Contribution Plans. The Corporation and its subsidiaries maintain various defined contribution plans covering substantially all employees. The Corporation’s contribution to the U.S. plan and to certain European-based plans includes a

matching component. The expense associated with defined contribution plans is charged to Employee Benefits expense on the consolidated statements of income and totaled $65.3 million in 2021, $62.9 million in 2020, and $57.6 million in 2019.

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Share-Based Compensation Plans

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation Plans

Share-Based Compensation Plans

Northern Trust recognizes expense for the grant-date fair value of share-based compensation granted to employees and non-employee directors.

Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented.

TABLE 118: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Restricted Stock Unit Awards	$	78.2	$	78.1	$	81.4
Stock Options	—		0.5		1.4
Performance Stock Units	17.3		12.8		25.1
Total Share-Based Compensation Expense	$	95.5	$	91.4	$	107.9
Tax Benefits Recognized	$	24.0	$	22.9	$	26.7

As of December 31, 2021, there was $71.8 million of unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Corporation’s share-based compensation plans. That cost is expected to be recognized as expense over a weighted-average period of approximately three years.

The Northern Trust Corporation 2017 Long-Term Incentive Plan (2017 Plan) is administered by the Compensation and Benefits Committee (Committee) of the Board of Directors. All employees of the Corporation and its subsidiaries and all directors of the Corporation are eligible to receive awards under the 2017 Plan. The 2017 Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards.

Beginning with grants made on February 21, 2017 under the Northern Trust Corporation 2012 Stock Plan (2012 Plan), restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements.

Grants are outstanding under the 2017 Plan, the 2012 Plan, and the Amended and Restated Northern Trust Corporation 2002 Stock Plan (2002 Plan). The 2017 Plan was approved by stockholders in April 2017. Upon approval of the 2017 Plan, no additional shares have been or will be granted under the 2012 Plan or 2002 Plan. The total number of shares of the Corporation’s common stock authorized for issuance under the 2017 Plan is 20,000,000 plus shares forfeited under the 2012 Plan and 2002 Plan. As of December 31, 2021, shares available for future grant under the 2017 Plan, including shares forfeited under the 2012 Plan and 2002 Plan, totaled 16,181,087.

The following describes Northern Trust’s share-based payment arrangements and applies to awards under the 2017 Plan, 2012 Plan and the 2002 Plan, as applicable.

Stock Options. Stock options consist of options to purchase common stock at prices not less than 100% of the fair value thereof on the date the options are granted. Options have a maximum 10 years life and generally vest and become exercisable in 1 year to 4 years after the date of grant. All options terminate at such time as determined by the Committee and as provided in the terms and conditions of the respective option grants. There were no options granted during the years ended December 31, 2021, 2020, and 2019.

The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2021, 2020, and 2019.

TABLE 119: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions, Except Per Share Information)	2021		2020		2019
Grant-Date Fair Value of Stock Options Vested	$	2.2	$	4.5	$	6.6
Stock Options Exercised
Intrinsic Value as of Exercise Date	41.3		13.6		35.4
Cash Received	53.8		19.5		44.0
Tax Deduction Benefits Realized	41.3		13.4		35.2

The following is a summary of changes in nonvested stock options for the year ended December 31, 2021.

TABLE 120: CHANGES IN NONVESTED STOCK OPTIONS

NONVESTED OPTIONS	SHARES	WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE PER SHARE
Nonvested at December 31, 2020	114,829	$	19.18
Granted	—	—
Vested	(114,829)	19.18
Forfeited or Cancelled	—	—
Nonvested at December 31, 2021	—	$	—

A summary of the status of stock options at December 31, 2021, and changes during the year then ended, are presented in the following table.

TABLE 121: STATUS OF STOCK OPTIONS AND CHANGES

($ In Millions Except Per Share Information)	SHARES	WEIGHTED AVERAGE EXERCISE PRICE PER SHARE		WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)	AGGREGATE INTRINSIC VALUE
Options Outstanding, December 31, 2020	1,349,925	$	66.87
Granted	—	—
Exercised	(837,757)	64.16
Forfeited, Expired or Cancelled	(2,280)	52.64
Options Outstanding, December 31, 2021	509,888	$	71.39	3.4	$	24.6
Options Exercisable, December 31, 2021	509,888	$	71.39	3.4	$	24.6

Restricted Stock Unit Awards. Restricted stock units may be granted to participants and entitles them to receive a payment in the Corporation’s common stock or cash and such other terms and conditions as the Committee deems appropriate. Each restricted stock unit provides the recipient the opportunity to receive one share of stock for each stock unit that vests. The restricted stock units granted in 2021 predominately vest at a rate equal to 25% per year for four years on the first day of the month following the month in which the grant date falls. Restricted stock unit grants totaled 846,433, 772,848, and 855,112, with weighted average grant-date fair values of $99.31, $99.58, and $91.89 per share, for the years ended December 31, 2021, 2020, and 2019, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2021, 2020, and 2019, was $89.4 million, $100.2 million, and $89.3 million, respectively.

A summary of the status of outstanding restricted stock unit awards at December 31, 2021, and changes during the year then ended, is presented in the following table.

TABLE 122: OUTSTANDING RESTRICTED STOCK UNIT AWARDS

($ In Millions)	NUMBER	AGGREGATE INTRINSIC VALUE
Restricted Stock Unit Awards Outstanding, December 31, 2020	2,145,651	$	199.8
Granted	846,433
Distributed	(944,393)
Forfeited	(46,175)
Restricted Stock Unit Awards Outstanding, December 31, 2021	2,001,516	$	239.4
Units Convertible, December 31, 2021	19,526	$	2.3

The following is a summary of nonvested restricted stock unit awards at December 31, 2021, and changes during the year then ended.

TABLE 123: NONVESTED RESTRICTED STOCK UNIT AWARDS

NONVESTED RESTRICTED STOCK UNITS	NUMBER	WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT		WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS)
Nonvested at December 31, 2020	2,125,881	$	95.61	2.1
Granted	846,433	99.31
Vested	(944,149)	94.70
Forfeited	(46,175)	98.31
Nonvested at December 31, 2021	1,981,990	$	97.56	2.3

Performance Stock Units. Each performance stock unit provides the recipient the opportunity to receive one share of the Corporation’s common stock for each stock unit based on the attainment of certain performance criteria over a three-year period. For performance stock unit awards granted in 2019, the number of units that will vest are based on the attainment of specified performance targets that are a function of average return on equity goals over a three-year period. For performance stock unit awards granted in 2020 and 2021, the number of units that will vest are subject to the attainment of specified performance targets that are a function of average return on equity goals and average return on equity performance relative to that of a performance peer group, each measured over a three-year period. For performance stock units outstanding as of December 31, 2021, the number of performance stock units that will vest ranges from 0% to 150% of the original award granted based on the achievement of both absolute and relative return on equity goals over a three-year period compared to performance targets. Distribution of the shares is then made after vesting.

Performance stock unit grants totaled 204,539, 205,847, and 213,044 for the years ended December 31, 2021, 2020, and 2019, respectively, with weighted average grant-date fair values of $97.77, $100.83, and $93.00. Performance stock units outstanding at target level performance totaled 622,817, 660,510, and 667,741 at December 31, 2021, 2020, and 2019, respectively. Performance stock units had aggregate intrinsic values of $74.5 million, $61.5 million, and $70.9 million, and weighted average remaining vesting terms of 1.0 year each at December 31, 2021, 2020, and 2019, respectively.

Non-employee Director Stock Awards. Stock units with total values of $1.5 million (13,968 units), $1.5 million (20,148 units), and $1.3 million (14,232 units) were granted to non-employee directors in 2021, 2020, and 2019, respectively, which vest or vested on the date of the annual meeting of the Corporation’s stockholders in the following years. Total expense recognized on these grants was $1.6 million, $1.6 million, and $1.4 million in 2021, 2020, and 2019, respectively. Stock units granted to non-employee directors do not have voting rights. Each stock unit entitles a director to one share of common stock at vesting, unless a director elects to defer receipt of the shares. Directors may elect to defer the payment of their annual stock unit grant and cash-based compensation until termination of services as director. Deferred cash compensation is converted into stock units representing shares of common stock of the Corporation. Distributions of deferred stock units are made in stock. For compensation deferred prior to January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in cash based on the fair value of the stock units at the time of distribution. For compensation deferred on or after January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in stock.

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Cash-Based Compensation Plans	12 Months Ended
	Dec. 31, 2021
Compensation Related Costs [Abstract]
Cash-Based Compensation Plans	Cash-Based Compensation PlansVarious incentive plans provide for cash incentives and bonuses to selected employees based upon accomplishment of corporate net income objectives, goals of the reporting segments and support functions, and individual performance. The provision for awards under these plans is charged to Compensation expense and totaled $377.1 million in 2021, $296.2 million in 2020, and $326.1 million in 2019.

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Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Off-Balance Sheet Financial Instruments, Guarantees and Other Commitments. Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. The contractual amounts of these instruments represent the maximum potential credit exposure should the instrument be fully drawn upon and the client default. To control the credit risk associated with entering into commitments and issuing letters of credit, Northern Trust subjects such activities to the same credit quality and monitoring controls as its lending activities. Northern Trust does not believe the total contractual amount of these instruments to be representative of its future credit exposure or funding requirements.

The following table provides details of Northern Trust's off-balance sheet financial instruments as of December 31, 2021 and 2020.

TABLE 124: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

	DECEMBER 31,
	2021						2020
($ In Millions)	ONE YEAR AND LESS		OVER ONE YEAR		TOTAL		ONE YEAR AND LESS		OVER ONE YEAR		TOTAL
Undrawn Commitments(1)	$	9,567.0	$	17,855.2	$	27,422.2	$	11,260.5	$	17,678.0	$	28,938.5
Standby Letters of Credit and Financial Guarantees(2)(3)	3,485.6		553.9		4,039.5		1,228.1		763.5		1,991.6
Commercial Letters of Credit	68.5		1.1		69.6		54.6		—		54.6
Custody Securities Lent with Indemnification	170,445.3		—		170,445.3		157,478.0		—		157,478.0
Total Off-Balance Sheet Financial Instruments	$	183,566.4	$	18,410.2	$	201,976.6	$	170,021.2	$	18,441.5	$	188,462.7

(1) These amounts exclude $366.6 million and $384.7 million of commitments participated to others at December 31, 2021 and 2020, respectively.

(2) These amounts include $30.5 million and $24.2 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2021 and 2020, respectively.

(3) This amount includes a $2,309.6 million guarantee to the Fixed Income Clearing Corporation (FICC) under the sponsored member program, without taking into consideration the related collateral, as of December 31, 2021. As of December 31, 2020, there was no guarantee to the FICC as Northern Trust became a sponsored member during the third quarter of 2021.

Undrawn Commitments generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements.

Standby Letters of Credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges, and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants.

Financial Guarantees are issued by Northern Trust to guarantee the performance of a client to a third party under certain arrangements.

Commercial Letters of Credit are instruments issued by Northern Trust on behalf of its clients that authorize a third party (the beneficiary) to draw drafts up to a stipulated amount under the specified terms and conditions of the agreement and other similar instruments. Commercial letters of credit are issued primarily to facilitate international trade.

Custody Securities Lent with Indemnification involves Northern Trust lending securities owned by clients to borrowers who are reviewed and approved by the Northern Trust Capital Markets Credit Committee, as part of its securities custody activities and at the direction of its clients. In connection with these activities, Northern Trust has issued indemnifications to certain clients against certain losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral required to be posted. Borrowers are required to collateralize fully securities received with cash or marketable securities. As securities are loaned, collateral is maintained at a minimum 100% of the fair value of the securities plus accrued interest. The collateral is revalued on a daily basis. The amount of securities loaned as of December 31, 2021 and 2020 subject to indemnification was $170.4 billion and $157.5 billion, respectively. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded at December 31, 2021, or 2020 related to these indemnifications.

Unsettled Repurchase and Reverse Repurchase Agreements. Northern Trust enters into repurchase agreements and reverse repurchase agreements which may settle at a future date. In repurchase agreements, Northern Trust receives cash from and provides securities as collateral to a counterparty. In reverse repurchase agreements, Northern Trust advances cash to and receives securities as collateral from a counterparty. These transactions are recorded on the consolidated balance sheets on the settlement date. As of December 31, 2021 and 2020, there were no unsettled repurchase or reverse repurchase agreements.

Sponsored Member Program. Effective during the third quarter of 2021, Northern Trust became an approved Government Securities Division (GSD) netting and sponsoring member in the FICC sponsored member program, through which Northern Trust submits eligible repurchase and reverse repurchase transactions in U.S. Government securities between Northern Trust and its sponsored member clients for novation and clearing. Northern Trust may sponsor clients to clear their eligible repurchase transactions with the FICC. As a sponsoring member, Northern Trust guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC GSD’s rules. To mitigate Northern Trust’s credit exposure under this guarantee, Northern Trust obtains a security interest in its sponsored member clients’ collateral. Please refer to Note 28, “Offsetting of Assets and Liabilities” for additional information on Northern Trust’s repurchase and reverse repurchase agreements.

Clearing and Settlement Organizations. The Bank is a participating member of various cash, securities and foreign exchange clearing and settlement organizations. It participates in these organizations on behalf of its clients and on its own behalf as a result of its own activities. A wide variety of cash and securities transactions are settled through these organizations, including those involving obligations of states and political subdivisions, asset-backed securities, commercial paper, dollar placements, and securities issued by the Government National Mortgage Association.

Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities and/or to provide liquidity support in the event other members do not honor their obligations as stipulated in each clearing organization’s membership agreement. Exposure related to these agreements varies, primarily as a result of fluctuations in the volume of transactions cleared through the organizations. At December 31, 2021 and 2020, Northern Trust has not recorded any material liabilities under these arrangements as Northern Trust believes the likelihood that a clearing or settlement exchange (of which Northern Trust is a member) would become insolvent is remote. Controls related to these clearing transactions are closely monitored by management to protect the assets of Northern Trust and its clients.

Legal Proceedings. In the normal course of business, the Corporation and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions, and are subject to regulatory examinations, information-gathering requests, investigations, and proceedings, both formal and informal. In certain legal actions, claims for substantial monetary damages are asserted. In regulatory matters, claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought.

Based on current knowledge, after consultation with legal counsel and after taking into account current accruals, management does not believe that losses, fines or penalties, if any, arising from pending litigation or threatened legal actions or regulatory matters either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage will have a material adverse effect on the consolidated financial position or liquidity of the Corporation, although such matters could have a material adverse effect on the Corporation’s operating results for a particular period.

Under GAAP, (i) an event is “probable” if the “future event or events are likely to occur”; (ii) an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely”; and (iii) an event is “remote” if “the chance of the future event or events occurring is slight.”

The outcome of litigation and regulatory matters is inherently difficult to predict and/or the range of loss often cannot be reasonably estimated, particularly for matters that (i) will be decided by a jury, (ii) are in early stages, (iii) involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv) are subject to appeals or motions, (v) involve significant factual issues to be resolved, including with respect to the amount of damages, (vi) do not specify the amount of damages sought or (vii) seek very large damages based on novel and complex damage and liability legal theories. Accordingly, the Corporation cannot reasonably estimate the eventual outcome of these pending matters, the timing of their ultimate resolution or what the eventual loss, fines or penalties, if any, related to each pending matter will be.

In accordance with applicable accounting guidance, the Corporation records accruals for litigation and regulatory matters when those matters present loss contingencies that are both probable and reasonably estimable. When loss contingencies are not both probable and reasonably estimable, the Corporation does not record accruals. No material accruals have been recorded for pending litigation or threatened legal actions or regulatory matters.

For a limited number of matters for which a loss is reasonably possible in future periods, whether in excess of an accrued liability or where there is no accrued liability, the Corporation is able to estimate a range of possible loss. As

of December 31, 2021, the Corporation has estimated the range of reasonably possible loss for these matters to be from zero to approximately $20 million in the aggregate. The Corporation’s estimate with respect to the aggregate range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

In certain other pending matters, there may be a range of reasonably possible loss (including reasonably possible loss in excess of amounts accrued) that cannot be reasonably estimated for the reasons described above. Such matters are not included in the estimated range of reasonably possible loss discussed above.

In 2015, Northern Trust Fiduciary Services (Guernsey) Limited (NTFS), an indirect subsidiary of the Corporation, was charged by a French investigating magistrate judge with complicity in estate tax fraud in connection with the administration of two trusts for which it serves as trustee. Charges also were brought against a number of other persons and entities related to this matter. In 2017, a French court found no estate tax fraud had occurred and NTFS and all other persons and entities charged were acquitted. The Public Prosecutor’s Office of France appealed the court decision and in June 2018 a French appellate court issued its opinion on the matter, acquitting all persons and entities charged, including NTFS. In January 2021, the Cour de Cassation, the highest court in France, reversed the June 2018 appellate court ruling, requiring a re-trial at the appellate court level. The re-trial proceedings in the appellate court have not yet been scheduled. As trustee, NTFS provided no tax advice and had no involvement in the preparation or filing of the challenged estate tax filings.

Visa Class B Common Shares. Northern Trust, as a member of Visa U.S.A. Inc. (Visa U.S.A.) and in connection with the 2007 restructuring of Visa U.S.A. and its affiliates and the 2008 initial public offering of Visa Inc. (Visa), received certain Visa Class B common shares. The Visa Class B common shares are subject to certain selling restrictions until the final resolution of certain litigation related to interchange fees involving Visa (the covered litigation), at which time the shares are convertible into Visa Class A common shares based on a conversion rate dependent upon the ultimate cost of resolving the covered litigation. On June 28, 2018, September 27, 2019 and December 29, 2021, Visa deposited an additional $600 million, $300 million, and $250 million, respectively, into an escrow account previously established with respect to the covered litigation. As a result of the additional contributions to the escrow account, the rate at which Visa Class B common shares will convert into Visa Class A common shares was reduced.

In September 2018, Visa reached a proposed class settlement agreement covering damage claims but not injunctive relief claims regarding the covered litigation. In December 2019, the district court granted final approval for the proposed class settlement agreement. Certain merchants have opted out of the class settlement and are pursuing claims separately, while other merchants have appealed the approval order granted by the district court. The ultimate resolution of the covered litigation, the timing for removal of the selling restrictions on the Visa Class B common shares and the rate at which such shares will ultimately convert into Visa Class A common shares are uncertain.

In June 2016 and 2015, Northern Trust recorded a $123.1 million and $99.9 million net gain on the sale of 1.1 million and 1.0 million of its Visa Class B common shares, respectively. These sales do not affect Northern Trust’s risk related to the impact of the covered litigation on the rate at which such shares will ultimately convert into Visa Class A common shares. Northern Trust continued to hold approximately 4.1 million Visa Class B common shares, which are recorded at their original cost basis of zero, as of both December 31, 2021 and 2020.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account; and as part of its risk management activities. These instruments may include foreign exchange contracts, interest rate contracts, total return swap contracts, and swaps related to the sale of certain Visa Class B common shares. Please refer to Note 1, “Summary of Significant Accounting Policies” for the significant accounting policies for derivative financial instruments.

Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date, at a specified rate of exchange. Foreign exchange contracts are entered into primarily to meet the foreign exchange needs of clients. Foreign exchange contracts are also used for trading and risk management purposes. For risk management purposes, Northern Trust uses foreign exchange contracts to reduce its exposure to changes in foreign exchange rates relating to certain forecasted non-functional currency denominated revenue and expenditure transactions, foreign-currency- denominated assets and liabilities, including debt securities and net investments in non-U.S. affiliates.

Interest rate contracts include swap and option contracts. Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Northern Trust enters into interest rate swap contracts with its clients and also may utilize such contracts to reduce or eliminate the

exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts may include caps, floors, collars and swaptions, and provide for the transfer or reduction of interest rate risk, typically in exchange for a fee. Northern Trust enters into option contracts primarily as a seller of interest rate protection to clients. Northern Trust receives a fee at the outset of the agreement for the assumption of the risk of an unfavorable change in interest rates. This assumed interest rate risk is then mitigated by entering into an offsetting position with an outside counterparty. Northern Trust may also purchase or enter into option contracts for risk management purposes including to reduce the exposure to changes in the cash flows of hedged assets due to changes in interest rates.

The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2021 and 2020.

TABLE 125: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021						DECEMBER 31, 2020
			FAIR VALUE						FAIR VALUE
(In Millions)	NOTIONAL VALUE		ASSET(1)		LIABILITY(2)		NOTIONAL VALUE		ASSET(1)		LIABILITY(2)
Derivatives Designated as Hedging under GAAP
Interest Rate Contracts
Fair Value Hedges	$	4,430.5	$	7.6	$	8.7	$	4,717.6	$	8.2	$	10.2
Cash Flow Hedges	—		—		—		50.0		0.1		—
Foreign Exchange Contracts
Cash Flow Hedges	3,697.9		61.8		12.6		6,554.4		15.4		104.0
Net Investment Hedges	4,161.8		183.3		12.3		3,480.3		0.1		207.7
Total Derivatives Designated as Hedging under GAAP	$	12,290.2	$	252.7	$	33.6	$	14,802.3	$	23.8	$	321.9
Derivatives Not Designated as Hedging under GAAP
Non-Designated Risk Management Derivatives
Foreign Exchange Contracts	$	109.9	$	0.2	$	0.6	$	67.7	$	0.1	$	0.1
Other Financial Derivatives(3)	738.5		—		37.5		745.4		—		35.3
Total Non-Designated Risk Management Derivatives	$	848.4	$	0.2	$	38.1	$	813.1	$	0.1	$	35.4
Client-Related and Trading Derivatives
Foreign Exchange Contracts	$	315,532.3	$	1,962.1	$	1,973.3	$	320,563.4	$	4,245.1	$	4,410.7
Interest Rate Contracts	11,570.1		132.4		90.2		10,573.3		289.2		114.8
Total Client-Related and Trading Derivatives	$	327,102.4	$	2,094.5	$	2,063.5	$	331,136.7	$	4,534.3	$	4,525.5
Total Derivatives Not Designated as Hedging under GAAP	$	327,950.8	$	2,094.7	$	2,101.6	$	331,949.8	$	4,534.4	$	4,560.9
Total Gross Derivatives	$	340,241.0	$	2,347.4	$	2,135.2	$	346,752.1	$	4,558.2	$	4,882.8
Less: Netting(4)			1,533.8		1,283.5				3,507.8		2,817.1
Total Derivative Financial Instruments			$	813.6	$	851.7			$	1,050.4	$	2,065.7

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets.

(2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets.

(3) This line includes swaps related to sales of certain Visa Class B common shares.

(4) See further detail in Note 28, "Offsetting of Assets and Liabilities."

Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded on the consolidated balance sheets. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, net of any collateral received, which is significantly less than the notional amount.

Hedging Derivative Instruments Designated under GAAP. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, and equity price. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value, cash flow or net investment hedges. Other derivatives that are entered into for risk management purposes as economic hedges are not formally designated as hedges and changes in fair value are recognized currently in Other Operating Income within the consolidated statements of income (see below section “Derivative Instruments Not Designated as Hedging under GAAP”).

Fair Value Hedges. Derivatives are designated as fair value hedges to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates.

Cash Flow Hedges. Derivatives are also designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates.

There were no material gains or losses reclassified into earnings during the years ended December 31, 2021, 2020, and 2019 as a result of the discontinuance of forecasted transactions that were no longer probable of occurring. It is estimated that net losses of $4.3 million and net gains of $52.7 million will be reclassified into net income within the next twelve months relating to cash flow hedges of foreign-currency-denominated transactions and cash flow hedges of foreign-currency-denominated debt securities, respectively. As of December 31, 2021, 20 months was the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign-currency-denominated transactions was being hedged.

The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2021, 2020 and 2019.

TABLE 126: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME

(in Millions)	INTEREST INCOME						INTEREST EXPENSE						OTHER OPERATING INCOME
For the Year Ended December 31,	2021		2020		2019		2021		2020		2019		2021		2020		2019
Total amounts on the consolidated statements of income	$	1,406.5	$	1,643.5	$	2,499.9	$	23.8	$	200.3	$	822.0	$	243.9	$	194.0	$	145.5
Gains (Losses) on fair value hedges recognized on
Interest Rate Contracts
Recognized on derivatives	39.1		(66.3)		(95.9)		(161.6)		100.2		99.4		—		—		—
Recognized on hedged items	(39.1)		66.3		95.9		161.6		(100.2)		(99.4)		—		—		—
Amounts related to interest settlements on derivatives	(16.2)		(13.2)		21.2		57.1		29.9		5.2		—		—		—
Total gains (losses) recognized on fair value hedges	$	(16.2)	$	(13.2)	$	21.2	$	57.1	$	29.9	$	5.2	$	—	$	—	$	—
Gains (Losses) on cash flow hedges recognized on
Foreign Exchange Contracts
Net gains (losses) reclassified from AOCI to net income	10.5		27.4		26.4		—		—		—		(6.0)		0.2		0.8
Interest Rate Contracts
Net gains (losses) reclassified from AOCI to net income	—		0.5		(0.5)		—		—		—		—		—		—
Total gains (losses) reclassified from AOCI to net income on cash flow hedges	$	10.5	$	27.9	$	25.9	$	—	$	—	$	—	$	(6.0)	$	0.2	$	0.8

The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2021 and 2020.

TABLE 127: HEDGED ITEMS IN FAIR VALUE HEDGES

	DECEMBER 31, 2021				DECEMBER 31, 2020
(In Millions)	CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(1)		CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(2)
Available for Sale Debt Securities(3)	$	1,677.4	$	11.1	$	2,075.1	$	48.8
Senior Notes and Long-Term Subordinated Debt	2,745.6		59.5		2,745.1		221.5
Total	$	4,423.0	$	70.6	$	4,820.2	$	270.3

(1) The cumulative hedge accounting basis adjustment includes $9.6 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2021. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2021.

(2) The cumulative hedge accounting basis adjustment includes $10.4 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2020. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2020.

(3) Carrying value represents amortized cost.

Net Investment Hedges. Certain foreign exchange contracts are designated as net investment hedges to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Net investment hedge gains of $186.6 million and losses of $178.7 million were recognized in AOCI related to foreign exchange contracts for the years ended December 31, 2021 and 2020, respectively.

Derivative Instruments Not Designated as Hedging under GAAP. Northern Trust’s derivative instruments that are not designated as hedging under GAAP include derivatives for purposes of client-related and trading activities, as well as other risk management purposes. These activities consist principally of providing foreign exchange services to clients in connection with Northern Trust’s global custody business. However, in the normal course of business, Northern Trust also engages in trading of currencies for its own account.

Non-designated risk management derivatives include foreign exchange contracts entered into to manage the foreign currency risk of non-U.S.-dollar-denominated assets and liabilities, the net investment in certain non-U.S. affiliates, commercial loans, and forecasted foreign-currency-denominated transactions. Swaps related to sales of certain Visa Class B common shares were entered into pursuant to which Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into Visa Class A common shares. Total return swaps are entered into to manage the equity price risk associated with certain investments.

Changes in the fair value of derivative instruments not designated as hedges under GAAP are recognized currently in income. The following table provides the location and amount of gains and losses recorded on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 for derivative instruments not designated as hedges under GAAP.

TABLE 128: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP

(In Millions)	DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME	AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME
		2021		2020		2019
Non-designated risk management derivatives
Foreign Exchange Contracts	Other Operating Income	$	1.2	$	6.4	$	(1.6)
Other Financial Derivatives(1)	Other Operating Income	(21.3)		(18.3)		(20.0)
Gains (Losses) from non-designated risk management derivatives		$	(20.1)	$	(11.9)	$	(21.6)
Client-related and trading derivatives
Foreign Exchange Contracts	Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Interest Rate Contracts	Security Commissions and Trading Income	15.7		22.4		12.9
Gains (Losses) from client-related and trading derivatives		$	308.3	$	312.8	$	263.8
Total gains (losses) from derivatives not designated as hedging under GAAP		$	288.2	$	300.9	$	242.2

(1) This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts.

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Offsetting of Assets and Liabilities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Offsetting of Assets and Liabilities

Offsetting of Assets and Liabilities

The following table provides information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 129: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts Over the Counter (OTC)	$	1,762.7	$	1,530.7	$	232.0	$	2.8	$	229.2
Interest Rate Swaps OTC	140.0		3.1		136.9		—		136.9
Total Derivatives Subject to a Master Netting Arrangement	1,902.7		1,533.8		368.9		2.8		366.1
Total Derivatives Not Subject to a Master Netting Arrangement	444.7		—		444.7		—		444.7
Total Derivatives	2,347.4		1,533.8		813.6		2.8		810.8
Securities Purchased under Agreements to Resell(2)	$	2,078.9	$	1,392.5	$	686.4	$	686.4	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts OTC	$	3,799.7	$	3,505.3	$	294.4	$	0.9	$	293.5
Interest Rate Swaps OTC	295.9		2.5		293.4		—		293.4
Interest Rate Swaps Exchange Cleared	1.6		—		1.6		—		1.6
Total Derivatives Subject to a Master Netting Arrangement	4,097.2		3,507.8		589.4		0.9		588.5
Total Derivatives Not Subject to a Master Netting Arrangement	461.0		—		461.0		—		461.0
Total Derivatives	4,558.2		3,507.8		1,050.4		0.9		1,049.5
Securities Purchased under Agreements to Resell	$	1,596.5	$	—	$	1,596.5	$	1,596.5	$	—

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.8 billion and $7.3 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Purchased under Agreements to Resell primarily relates to our involvement in FICC.

(3) Including cash collateral received from counterparties.

(4) Including financial assets accepted as collateral which are received from counterparties.

(5) Northern Trust did not possess any cash collateral that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

The following table provides information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 130: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	1,430.1	$	1,234.5	$	195.6	$	—	$	195.6
Interest Rate Swaps OTC	98.7		48.1		50.6		—		50.6
Interest Rate Swaps Exchange Cleared	0.2		—		0.2		—		0.2
Other Financial Derivatives	37.5		0.9		36.6		—		36.6
Total Derivatives Subject to a Master Netting Arrangement	1,566.5		1,283.5		283.0		—		283.0
Total Derivatives Not Subject to a Master Netting Arrangement	568.7		—		568.7		—		568.7
Total Derivatives	2,135.2		1,283.5		851.7		—		851.7
Securities Sold under Agreements to Repurchase(2)	$	1,924.4	$	1,392.5	$	531.9	$	531.9	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	3,577.7	$	2,718.6	$	859.1	$	0.5	$	858.6
Interest Rate Swaps OTC	125.0		98.5		26.5		—		26.5
Other Financial Derivatives	35.3		—		35.3		—		35.3
Total Derivatives Subject to a Master Netting Arrangement	3,738.0		2,817.1		920.9		0.5		920.4
Total Derivatives Not Subject to a Master Netting Arrangement	1,144.8		—		1,144.8		—		1,144.8
Total Derivatives	4,882.8		2,817.1		2,065.7		0.5		2,065.2
Securities Sold under Agreements to Repurchase	$	39.8	$	—	$	39.8	$	39.8	$	—

(1) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.3 billion and $3.5 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Sold under Agreements to Repurchase primarily relates to our involvement in FICC.

(3) Including cash collateral deposited with counterparties.

(4) Including financial assets accepted as collateral which are deposited with counterparties.

(5) Northern Trust did not place any cash collateral with counterparties that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

All of Northern Trust’s securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (reverse repurchase agreements) involve the transfer of financial assets in exchange for cash subject to a right and obligation to repurchase those assets for an agreed upon amount. In the event of a repurchase failure, the cash or financial assets are available for offset. All of Northern Trust’s repurchase agreements and reverse repurchase agreements are subject to a master netting arrangement, which sets forth the rights and obligations for repurchase and offset. Under the master netting arrangement, Northern Trust is entitled to set off receivables from and collateral placed with a single counterparty against obligations owed to that counterparty. In addition, collateral held by Northern Trust can be offset against receivables from that counterparty. Northern Trust’s repurchase agreements and reverse repurchase agreements, other than those in which the counterparty is FICC, do not meet the requirements to net under GAAP.

Derivative asset and liability positions with a single counterparty can be offset against each other in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities can be further offset by cash collateral received from, and deposited with, the transacting counterparty. The basis for this view is that, upon termination of transactions subject to a master netting arrangement or similar agreement, the individual derivative receivables do not represent resources to which general creditors have rights and individual derivative payables do not represent claims that are equivalent to the claims of general creditors.

Credit risk associated with derivative instruments relates to the failure of the counterparty and the failure of Northern Trust to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains and

losses on these instruments, net of any collateral received or deposited. The amount of credit risk will increase or decrease during the lives of the instruments as interest rates, foreign exchange rates, or equity prices fluctuate. Northern Trust’s risk is controlled by limiting such activity to an approved list of counterparties and by subjecting such activity to the same credit and quality controls as are followed in lending and investment activities. Credit Support Annexes and other similar agreements are currently in place with a number of Northern Trust’s counterparties which mitigate the aforementioned credit risk associated with derivative activity conducted with those counterparties by requiring that significant net unrealized fair value gains be supported by collateral placed with Northern Trust.

Additional cash collateral received from and deposited with derivative counterparties totaling $93.5 million and $43.4 million, respectively, as of December 31, 2021, and $111.0 million and $49.0 million, respectively, as of December 31, 2020, was not offset against derivative assets and liabilities on the consolidated balance sheets as the amounts exceeded the net derivative positions with those counterparties.

Certain master netting arrangements Northern Trust enters into with derivative counterparties contain credit risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position was $111.5 million and $1,648.2 million at December 31, 2021 and 2020, respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $84.2 million and $1,044.0 million, respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at December 31, 2021 and 2020 of $27.3 million and $604.2 million, respectively. Accelerated settlement of these liabilities would not have a material effect on the consolidated financial position or liquidity of Northern Trust.

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Variable Interest Entities

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

Variable Interest Entities (VIEs) are defined within GAAP as entities which either (1) lack sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support, (2) have equity investors that lack attributes typical of an equity investor, such as the ability to make significant decisions through voting rights affecting the entity’s operations, or the obligation to absorb expected losses or the right to receive residual returns of the entity, or (3) are structured with voting rights that are disproportionate to the equity investor’s obligation to absorb losses or right to receive returns, and substantially all of the activities are conducted on behalf of the holder of the equity investment at risk with disproportionately few voting rights. Investors that finance a VIE through debt or equity interests are variable interest holders in the entity and the variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity’s economic performance and, through its variable interest, the obligation to absorb losses or the right to receive returns that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE.

Tax Credit Structures. Northern Trust invests in qualified affordable housing projects and community development entities (collectively, community development projects) that are designed to generate a return primarily through the realization of tax credits. The community development projects are formed as limited partnerships and limited liability companies in which Northern Trust invests as a limited partner/investor member through equity contributions. The economic performance of the community development projects, some of which are VIEs, is subject to the performance of their underlying investment and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development project VIEs as it lacks the power to direct the activities that most significantly impact the economic performance of the underlying investments or to affect their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners and managing members who exercise full and exclusive control of the operations of the community development project VIEs.

Northern Trust’s maximum exposure to loss as a result of its involvement with community development projects is limited to the carrying amounts of its investments, including any undrawn commitments. As of December 31, 2021 and 2020, the carrying amounts of these investments in community development projects that generate tax credits, included in Other Assets on the consolidated balance sheets, totaled $959.6 million and $919.6 million, respectively, of which $922.8 million and $874.0 million are VIEs as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, liabilities related to unfunded commitments on investments in tax credit community development projects, included in Other Liabilities on the consolidated balance sheets, totaled $289.3 million and $351.6 million, respectively, of which $280.5 million and $335.9 million related to undrawn commitments on VIEs as of December 31, 2021 and 2020, respectively.

Northern Trust’s funding requirements are limited to its invested capital and undrawn commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of the community development projects.

Tax credits and other tax benefits attributable to community development projects totaled $87.2 million and $78.9 million, respectively, as of December 31, 2021 and 2020.

Investment Funds. Northern Trust acts as asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, Northern Trust earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP.

Some of the funds for which Northern Trust acts as asset manager comply or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds and therefore the funds are exempt from the consolidation requirements in ASC 810-10. Northern Trust voluntarily waived $287.8 million of money market mutual fund fees for the year ended December 31, 2021 related to the low-interest-rate environment and certain competitive factors. Northern Trust waived $36.4 million of money market mutual fund fees for the year ended December 31, 2020. Northern Trust does not have any contractual obligations to provide financial support to the funds. Any potential future support of the funds will be at the discretion of Northern Trust after an evaluation of the specific facts and circumstances.

Periodically, Northern Trust makes seed capital investments to certain funds. As of December 31, 2021 and 2020, Northern Trust had no seed capital investments and no unfunded commitments related to seed capital investments.

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Pledged and Restricted Assets

12 Months Ended

Dec. 31, 2021

Financial Instruments Owned and Pledged as Collateral [Abstract]

Pledged and Restricted Assets

Pledged and Restricted Assets

Pledged Assets. Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for derivative contracts.

The following table presents Northern Trust’s pledged assets.

TABLE 131: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2021		2020
Securities
Obligations of States and Political Subdivisions	$	3.7	$	2.9
Government Sponsored Agency and Other Securities	35.6		32.5
Loans	15.3		12.1
Total Pledged Assets	$	54.6	$	47.5

Collateral required for these purposes totaled $5.6 billion and $5.7 billion at December 31, 2021 and 2020, respectively.

The following table presents the AFS debt securities pledged as collateral that are included in pledged assets.

TABLE 132: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020		DECEMBER 31, 2021		DECEMBER 31, 2020
Debt Securities
Available for Sale	$	524.1	$	33.0	$	17.6	$	27.1

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $524.1 million and $33.5 million of the pledged collateral as of December 31, 2021 and 2020, respectively.

Northern Trust accepts financial assets as collateral that it may, in some instances, be permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts.

The following table presents the fair value of securities accepted as collateral.

TABLE 133: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Collateral that may be repledged or sold
Reverse repurchase agreements(1)	$	1,457.0	$	1,179.8
Derivative contracts	2.8		0.9
Collateral that may not be repledged or sold
Reverse repurchase agreements	650.0		500.0
Total Collateral Accepted	$	2,109.8	$	1,680.7

(1) The fair value of securities collateral that was repledged or sold totaled $1,419.0 million at December 31, 2021. There was no repledged or sold collateral as of December 31, 2020.

Restricted Assets. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement to zero percent on March 26, 2020. Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.4 billion in 2020.

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Restrictions on Subsidiary Dividends and Loans or Advances

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Restrictions on Subsidiary Dividends and Loans or Advances

Restrictions on Subsidiary Dividends and Loans or Advances

Various federal and state statutory provisions limit the amount of dividends the Bank can pay to the Corporation without regulatory approval. Approval of the Federal Reserve Board is required for payment of any dividend by a state-chartered bank that is a member of the Federal Reserve System if the total of all dividends declared by the bank in any calendar year would exceed the total of its retained net income (as defined by regulatory agencies) for that year combined with its retained net income for the preceding two years. In addition, a state member bank may not pay a dividend in an amount greater than its “undivided profits,” as defined, without regulatory and stockholder approval.

Under Illinois law, an Illinois state bank, prior to paying a dividend, must carry over to surplus at least one-tenth of its net profits since the date of the declaration of the last preceding dividend, until the bank’s surplus is equal to its capital. In addition, an Illinois state bank may not pay any dividend in an amount greater than its net profits then on hand, after deduction of losses and bad debts (defined as debts due to a state bank on which interest is past due and unpaid for a period of six months or more, unless the same are well secured and in the process of collection).

The Bank is also prohibited under federal law from paying any dividends if the Bank is undercapitalized or if the payment of the dividends would cause the Bank to become undercapitalized. In addition, the federal regulatory agencies are authorized to prohibit a bank or bank holding company from engaging in an unsafe or unsound banking practice. The payment of dividends could, depending on the financial condition of the Bank, be deemed to constitute an unsafe or unsound practice. The Dodd-Frank Act and Basel III impose additional restrictions on the ability of banking institutions to pay dividends (e.g., the Corporation may pay dividends only in accordance with the capital plan rules and capital adequacy standards of the Federal Reserve).

Under federal law, financial transactions by the Bank, the Corporation’s insured banking subsidiary, with the Corporation and its affiliates that are in the form of loans or extensions of credit, investments, guarantees, derivative transactions, repurchase agreements, securities lending transactions or purchases of assets, are restricted. These transactions must be on terms and conditions that are, or in good faith would be, offered to non-affiliated companies (i.e. on terms not less favorable to the Bank than market terms). Further, extensions of credit must be secured fully with qualifying collateral and are limited to 10% of the Bank’s capital and surplus for transactions with a single affiliate and to 20% of the Bank’s capital and surplus with all affiliates. Other state and federal laws may limit the transfer of funds by the Corporation’s banking subsidiaries to the Corporation and certain of its affiliates.

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Reporting Segments and Related Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reporting Segments and Related Information

Reporting Segments and Related Information

Segment Information. Northern Trust is organized around its two client-focused reporting segments: C&IS and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management.

Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE

basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.

Equity is allocated to the reporting segments based on a variety of factors including, but not limited to, risk, regulatory considerations, and internal metrics. Allocations of capital and certain corporate expense may not be representative of levels that would be required if the segments were independent entities. The accounting policies used for management reporting are consistent with those described in Note 1, “Summary of Significant Accounting Policies.” Transfers of income and expense items are recorded at cost; there is no consolidated profit or loss on sales or transfers between reporting segments. Northern Trust’s presentations are not necessarily consistent with similar information for other financial institutions.

Revenues, expenses and average assets are allocated to C&IS and Wealth Management, with the exception of non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment, which are reported within the Other segment.

Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis.

Effective January 1, 2021, Northern Trust implemented enhancements to its FTP methodology, including enhancements impacting the allocation of net interest income between C&IS and Wealth Management. These methodology enhancements affect the results of each of these reporting segments. Due to the lack of historical information, segment results for periods ended prior to January 1, 2021 have not been revised to reflect the methodology enhancements.

Corporate & Institutional Services. C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.

Wealth Management. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

Other. Income and expenses associated with non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments are included within Other.

The following tables reflect the earnings contribution and average assets of Northern Trust’s reporting segments for the years ended December 31, 2021, 2020, and 2019.

TABLE 134: CORPORATE & INSTITUTIONAL SERVICES RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,487.3		$	2,321.6		$	2,211.5
Foreign Exchange Trading Income	279.0			276.3			232.2
Other Noninterest Income	261.2			222.5			178.2
Total Noninterest Income	3,027.5			2,820.4			2,621.9
Net Interest Income(1)	637.2			665.5			918.7
Revenue(1)	3,664.7			3,485.9			3,540.6
Provision for Credit Losses	(33.8)			38.1			1.9
Noninterest Expense	2,863.0			2,752.7			2,605.5
Income before Income Taxes(1)	835.5			695.1			933.2
Provision for Income Taxes(1)	194.1			174.4			219.4
Net Income	$	641.4		$	520.7		$	713.8
Percentage of Consolidated Net Income	41		%	43		%	48		%
Average Assets	$	120,883.2		$	104,790.6		$	87,557.1

(1) Financial measures stated on an FTE basis.

TABLE 135: WEALTH MANAGEMENT RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,873.8		$	1,673.4		$	1,640.6
Foreign Exchange Trading Income	13.6			14.1			18.7
Other Noninterest Income	188.2			168.0			131.1
Total Noninterest Income	2,075.6			1,855.5			1,790.4
Net Interest Income(1)	781.1			812.1			792.0
Revenue(1)	2,856.7			2,667.6			2,582.4
Provision for Credit Losses	(47.7)			86.9			(16.4)
Noninterest Expense	1,651.1			1,559.7			1,531.6
Income before Income Taxes(1)	1,253.3			1,021.0			1,067.2
Provision for Income Taxes(1)	317.0			291.8			271.1
Net Income	$	936.3		$	729.2		$	796.1
Percentage of Consolidated Net Income	61		%	60		%	53		%
Average Assets	$	35,480.0		$	32,020.5		$	29,994.3

(1) Financial measures stated on an FTE basis.

TABLE 136: OTHER RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income	$	(21.3)		$	(18.3)		$	(17.1)
Net Interest Income(1)	—			—			—
Revenue(1)	(21.3)			(18.3)			(17.1)
Noninterest Expense	21.8			35.8			6.4
Income (Loss) before Income Taxes(1)	(43.1)			(54.1)			(23.5)
Provision (Benefit) for Income Taxes(1)	(10.7)			(13.5)			(5.8)
Net Income	$	(32.4)		$	(40.6)		$	(17.7)
Percentage of Consolidated Net Income	(2)		%	(3)		%	(1)		%
Average Assets	$	—		$	—		$	—

(1) Financial measures stated on an FTE basis.

TABLE 137: CONSOLIDATED FINANCIAL INFORMATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Foreign Exchange Trading Income	292.6		290.4		250.9
Other Noninterest Income	428.1		372.2		292.2
Total Noninterest Income	5,081.8		4,657.6		4,395.2
Net Interest Income(1)	1,418.3		1,477.6		1,710.7
Revenue(1)	6,500.1		6,135.2		6,105.9
Provision for Credit Losses	(81.5)		125.0		(14.5)
Noninterest Expense	4,535.9		4,348.2		4,143.5
Income before Income Taxes(1)	2,045.7		1,662.0		1,976.9
Provision for Income Taxes(1)	500.4		452.7		484.7
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Average Assets	$	156,363.2	$	136,811.1	$	117,551.4

(1) Financial measures stated on an FTE basis. The consolidated figures include $35.6 million, $34.4 million, and $32.8 million, of FTE adjustments for 2021, 2020, and 2019, respectively.

Geographic Area Information. Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source income and assets. Non-U.S. source income and assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision revenues, expenses and assets between U.S. and non-U.S.-domiciled customers. Therefore, certain subjective estimates and assumptions have been made to allocate revenues, expenses and assets between U.S. and non-U.S. operations.

For purposes of this disclosure, all foreign exchange trading income has been allocated to non-U.S. operations. Interest expense is allocated to non-U.S. operations based on specifically matched or pooled funding. Allocations of indirect noninterest expenses, when made, are based on various methods such as time, space, and number of employees.

The following table summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral.

TABLE 138: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE

(In Millions)	TOTAL ASSETS		TOTAL REVENUE(1)		INCOME BEFORE INCOME TAXES		NET INCOME
2021
Non-U.S.	$	38,555.3	$	2,017.5	$	569.4	$	426.7
U.S.	145,334.5		4,447.0		1,440.7		1,118.6
Total	$	183,889.8	$	6,464.5	$	2,010.1	$	1,545.3
2020
Non-U.S.	$	38,393.8	$	1,737.6	$	404.0	$	302.6
U.S.	131,610.1		4,363.2		1,223.6		906.7
Total	$	170,003.9	$	6,100.8	$	1,627.6	$	1,209.3
2019
Non-U.S.	$	27,888.6	$	1,889.5	$	600.0	$	451.0
U.S.	108,939.8		4,183.6		1,344.1		1,041.2
Total	$	136,828.4	$	6,073.1	$	1,944.1	$	1,492.2

(1) Total revenue is comprised of net interest income and noninterest income.

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Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements Abstract [Abstract]

Regulatory Capital Requirements

Regulatory Capital Requirements

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory authorities. Under these requirements, banks must maintain specific risk-based and leverage ratios in order to be classified as “well-capitalized.” The regulatory capital requirements impose certain restrictions upon banks that meet minimum capital requirements but are not “well-capitalized” and obligate the federal bank regulatory authorities to take “prompt corrective action” with respect to banks that do not maintain such minimum ratios. Such prompt corrective action could have a direct material effect on a bank’s financial statements.

As of December 31, 2021 and 2020, the Bank had capital ratios above the levels required for classification as a “well-capitalized” institution and had not received any regulatory notification of a lower classification. As a result of the stress test results published by the Federal Reserve Board on June 25, 2020, Northern Trust’s stress capital buffer requirement for the 2020 Capital Plan cycle was set at 2.5%. The 2020 stress capital buffer became effective October 1, 2020, and resulted in a Common Equity Tier 1 capital ratio minimum requirement of 7.0% inclusive of this buffer. The results of the 2021 stress test, published by the Federal Reserve Board on June 24, 2021, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining in effect for the 2021 Capital Plan cycle, which began on October 1, 2021.

Additionally, Northern Trust’s subsidiary banks located outside the U.S. are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2021 and 2020, Northern Trust’s non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements. There were no conditions or events since December 31, 2021, that management believes have adversely affected the capital categorization of any Northern Trust subsidiary bank.

The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements.

TABLE 139: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS

	DECEMBER 31, 2021								DECEMBER 31, 2020
($ In Millions)	STANDARDIZED APPROACH				ADVANCED APPROACH				STANDARDIZED APPROACH				ADVANCED APPROACH
	BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO
Common Equity Tier 1 Capital
Northern Trust Corporation	$	10,277.1	11.9	%	$	10,277.1	13.2	%	$	9,962.2	12.8	%	$	9,962.2	13.4	%
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	5,578.7		6.5		4,964.5		6.5		4,994.4		6.5		4,717.1		6.5
Tier 1 Capital
Northern Trust Corporation	11,142.2		12.9		11,142.2		14.3		10,822.2		13.9		10,822.2		14.5
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	5,177.6		6.0		4,668.4		6.0		4,659.7		6.0		4,467.6		6.0
The Northern Trust Company	6,866.1		8.0		6,110.2		8.0		6,147.0		8.0		5,805.6		8.0
Total Capital
Northern Trust Corporation	12,126.8		14.1		11,942.0		15.3		12,085.7		15.6		11,825.8		15.9
The Northern Trust Company	11,158.4		13.0		10,973.7		14.4		11,123.1		14.5		10,863.3		15.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	8,629.3		10.0		7,780.7		10.0		7,766.2		10.0		7,446.0		10.0
The Northern Trust Company	8,582.6		10.0		7,637.8		10.0		7,683.7		10.0		7,257.0		10.0
Tier 1 Leverage
Northern Trust Corporation	11,142.2		6.9		11,142.2		6.9		10,822.2		7.6		10,822.2		7.6
The Northern Trust Company	10,315.7		6.4		10,315.7		6.4		10,003.3		7.0		10,003.3		7.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	8,019.5		5.0		8,019.5		5.0		7,105.0		5.0		7,105.0		5.0
Supplementary Leverage(1)
Northern Trust Corporation	N/A		N/A		11,142.2		8.2		N/A		N/A		10,822.2		8.6
The Northern Trust Company	N/A		N/A		10,315.7		7.6		N/A		N/A		10,003.3		7.7
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	N/A		N/A		4,081.7		3.0		N/A		N/A		3,883.4		3.0

(1) In November 2019, the Federal Reserve Board and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including the Corporation and the Bank, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020.

Further, on April 1, 2020, the Federal Reserve Board issued an interim final rule that requires bank holding companies, including the Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and expired on April 1, 2021.

On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The Bank did not elect to take this deduction.

The supplementary leverage ratios at December 31, 2021 and December 31, 2020 for the Corporation and the Bank reflect the impact of these final rules.    

Under the final Basel III rules, the Corporation and the Bank are required to calculate and publicly disclose risk-based capital ratios using two methodologies: an advanced approach and a standardized approach. Under the advanced approach, credit risk weighted assets (RWA) are based on internal credit models and parameters. Additionally, the advanced approach incorporates operational risk RWA. Under the standardized approach, RWA are based on supervisory prescribed risk weights that are primarily dependent on counterparty type and asset class.

Pursuant to the Federal Reserve Board's implementation in the final Basel III rules of a provision of the Dodd-Frank Act, the capital adequacy of the Corporation and the Bank is assessed based on the lower of the advanced approach or standardized approach capital ratios.

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Northern Trust Corporation (Corporation only)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Northern Trust Corporation (Corporation only)

Northern Trust Corporation (Corporation only)

Condensed financial information is presented in the following tables. Investments in wholly-owned subsidiaries are carried on the equity method of accounting.

TABLE 140: CONDENSED BALANCE SHEETS

	DECEMBER 31,
(In Millions)	2021		2020
ASSETS
Cash on Deposit with Subsidiary Bank	$	1,731.7	$	2,516.0
Advances to Wholly-Owned Subsidiaries – Banks	2,810.0		2,670.0
Investments in Wholly-Owned Subsidiaries – Banks	11,120.9		10,799.9
– Nonbank	185.3		172.8
Other Assets	890.2		900.9
Total Assets	$	16,738.1	$	17,059.6
LIABILITIES
Senior Notes	$	2,505.5	$	3,122.4
Long-Term Debt	1,145.7		1,189.3
Floating Rate Capital Debt	—		277.8
Other Liabilities	1,070.1		781.8
Total Liabilities	4,721.3		5,371.3
STOCKHOLDERS’ EQUITY
Preferred Stock	884.9		884.9
Common Stock	408.6		408.6
Additional Paid-in Capital	939.3		963.6
Retained Earnings	13,117.3		12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)		428.0
Treasury Stock	(3,297.7)		(3,204.5)
Total Stockholders’ Equity	12,016.8		11,688.3
Total Liabilities and Stockholders’ Equity	$	16,738.1	$	17,059.6

TABLE 141: CONDENSED STATEMENTS OF INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
OPERATING INCOME
Dividends – Bank Subsidiaries	$	751.1	$	900.0	$	2,024.1
– Nonbank Subsidiaries	8.3		—		0.4
Intercompany Interest and Other Charges	20.1		46.5		115.1
Interest and Other Income	32.3		19.1		20.2
Total Operating Income	811.8		965.6		2,159.8
OPERATING EXPENSES
Interest Expense	71.3		104.2		121.6
Other Operating Expenses	36.7		26.2		28.6
Total Operating Expenses	108.0		130.4		150.2
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	703.8		835.2		2,009.6
Benefit for Income Taxes	25.7		28.2		24.3
Income before Equity in Undistributed Net Income of Subsidiaries	729.5		863.4		2,033.9
Equity in Undistributed Net Income of Subsidiaries – Banks	803.3		326.0		(559.9)
– Nonbank	12.5		19.9		18.2
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Preferred Stock Dividends	41.8		56.2		46.4
Net Income Applicable to Common Stock	$	1,503.5	$	1,153.1	$	1,445.8

TABLE 142: CONDENSED STATEMENTS OF CASH FLOWS

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Undistributed Net Income of Subsidiaries	(815.8)		(345.9)		541.7
Change in Prepaid Expenses	0.1		398.5		(400.4)
Change in Accrued Income Taxes	2.2		3.7		114.1
Other Operating Activities, net	236.6		300.3		141.9
Net Cash Provided by Operating Activities	968.4		1,565.9		1,889.5
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities	—		—		—
Investments in and Advances to Subsidiaries, net	(140.0)		(800.0)		540.0
Acquisition of a Business, Net of Cash Received	—		—		—
Other Investing Activities, net	5.1		1.8		3.7
Net Cash (Used in) Provided by Investing Activities	(134.9)		(798.2)		543.7
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes	—		993.2		498.0
Repayments of Senior Notes	(500.0)		(508.6)		—
Repayment of Floating Rate Capital Debt	(278.8)		—		—
Redemption of Preferred Stock - Series C	—		(400.0)		—
Proceeds from Issuance of Preferred Stock - Series E	—		—		392.5
Treasury Stock Purchased	(267.6)		(299.8)		(1,100.2)
Net Proceeds from Stock Options	53.8		19.5		44.0
Cash Dividends Paid on Common Stock	(583.3)		(584.6)		(529.7)
Cash Dividends Paid on Preferred Stock	(41.8)		(45.9)		(46.4)
Other Financing Activities, net	(0.1)		15.4		0.9
Net Cash Used In Financing Activities	(1,617.8)		(810.8)		(740.9)
Net Change in Cash on Deposit with Subsidiary Bank	(784.3)		(43.1)		1,692.3
Cash on Deposit with Subsidiary Bank at Beginning of Year	2,516.0		2,559.1		866.8
Cash on Deposit with Subsidiary Bank at End of Year	$	1,731.7	$	2,516.0	$	2,559.1

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation.

Nature of Operations

Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank.

Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business.

C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.

Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment consulting; global custody; fiduciary; and private banking to meet the complex financial needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.

Foreign Currency Remeasurement and Translation

Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange.Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity.

Securities

Securities. Available for Sale (AFS) Securities are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on AFS securities are determined on a specific identification basis and are reported within Investment Security Losses, net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount.

Held to Maturity (HTM) Securities consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount.

Held for Trading Securities are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income.

Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 29, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits.

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase.

Derivative Financial Instruments

Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net.

Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges.

Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter.

Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities, foreign currency denominated investment securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of available for sale investment securities, to the extent all

terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method.

Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary.

Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item.

Loans and Leases

Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, net, non-U.S. and other. The classes within the personal segment have been defined as residential real estate, private client and other.

Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value. Undrawn commitments relating to loans that are not held for sale are recorded in Other Liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated expected losses.

Nonaccrual Loans and Recognition of Income. Interest income on loans and leases is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial

condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms.

Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). All TDRs are reported starting in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported if the loan was modified at a market rate and has performed according to the modified terms for at least six payment periods. A loan that has been modified at a below market rate will return to accrual status if it satisfies the six-payment-period performance requirement.

The expected credit loss is measured based upon the present value of expected future cash flows, discounted at the effective interest rate based on the original contractual rate. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is calculated based on the factor as it changes over the life of the loan. Northern Trust elected not to project changes in the factor for purposes of estimating expected future cash flows. Further, Northern Trust elected not to adjust the effective interest rate for prepayments. If the loan is collateral dependent, the expected loss is measured based on the fair value of the collateral at the reporting date.

If the loan valuation is less than the recorded value of the loan, either an allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $1 million) homogeneous loans are collectively evaluated. Northern Trust’s accounting policies for material nonaccrual loans is consistent across all classes of loans and leases.

All loans and leases with TDR modifications are evaluated for additional expected credit losses. The nature and extent of further deterioration in credit quality, including a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses.

Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral.

Premium, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield.

Allowance for Credit Losses

Allowance for Credit Losses.

2021 and 2020 Allowance for Credit Losses after the Adoption of Accounting Standards Update No. 2016-13

As of December 31, 2021 and 2020, the allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships.

Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts.

Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period (currently two years) to project future conditions. Management determines the probability weights assigned to each scenario at each quarter-end. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, unemployment, and real estate price indices, as well as financial market factors such as equity prices, volatility, and credit spreads. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters.

Allowance for Loans and Leases. The allowance estimation methodology for the collective assessment is primarily based on internally developed loss data specific to the Northern Trust financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments based on similar risk characteristics or risk monitoring methods.

Northern Trust utilizes a quantitative probability of default/loss given default approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the

exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment of the loan portfolio.

The allowance related to credit exposure evaluated on an individual basis is determined through an individual evaluation of loans, leases, and lending-related commitments that have defaulted, generally those with Borrower Ratings of 8 and 9, that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework.

As of December 31, 2021 and 2020, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses.

Allowance for HTM Securities. HTM debt securities classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero.

HTM debt securities classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support.

HTM debt securities classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance.

The allowance estimation methodology for all other HTM debt securities is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative component of the allowance.

Allowance for AFS Securities. AFS securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security.

Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for those other financial assets presented in Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for other financial assets primarily utilizes a similar approach as used for the HTM debt securities portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss.

The portion of the allowance assigned to loans and leases, HTM debt securities, and other financial assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS securities on the consolidated balance sheets.

The Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates and the amount of the Provision for Credit Losses may be either greater than or less than actual net charge-offs.

Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are typically not considered since it is not Northern Trust’s practice to enter into arrangements where the borrower has the unconditional option to renew, or a conditional extension option whereby the conditions are beyond Northern Trust’s control.

Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the quarter the financial asset is moved from an accrual to a nonaccrual status.

2019 Allowance for Credit Losses prior to the Adoption of Accounting Standards Update No. 2016-13

Allowance for Loans and Leases under the Previous “Incurred Loss” Model. As of December 31, 2019, the Allowance for Credit Losses represented management’s estimate of probable losses which occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures were regularly reviewed to evaluate the level of the Allowance for Credit Losses. In determining an appropriate allowance level, Northern Trust evaluated the allowance necessary for impaired loans and lending-related commitments and also estimated losses inherent in other lending-related credit exposures. The allowance for credit losses consisted of the following components:

Specific Allowance. A loan was considered to be impaired when, based on existing information and events, management determined that it was probable that Northern Trust would be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans were identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status were critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, lease financing, net, non-U.S., and commercial-other classes related to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. The specific allowance was determined through an individual evaluation of loans and lending-related commitments considered impaired that was based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, was determined based on the value of the underlying real estate collateral, third-party appraisals were typically obtained and utilized by management. These appraisals were generally less than twelve months old and were subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.

Inherent Allowance. The inherent allowance estimation methodology was based on internally developed loss data specific to the Northern Trust loan and lease portfolio. The estimation methodology and the related qualitative adjustment framework segregated the loan and lease portfolio into homogeneous segments. For each segment, the probability of default and the loss given default were applied to the total exposure at default to determine a quantitative inherent allowance. The quantitative inherent allowance was then reviewed within the qualitative adjustment framework, where management applied judgment by assessing internal risk factors, potential limitations in the quantitative methodology and environmental factors that were not fully contemplated in the quantitative methodology to compute an adjustment to the quantitative inherent allowance for each segment of the loan portfolio.

The results of the inherent allowance estimation methodology were reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee, which included representatives from Credit Risk Management, reporting segment management, and Corporate Finance.

Loans, leases, and other extensions of credit deemed uncollectible were charged to the Allowance for Credit Losses. Subsequent recoveries, if any, were credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases were consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability was in question were charged-off or a specific reserve was established were based on

management’s assessment as to the level of certainty regarding the amount of loss. The Provision for Credit Losses, which was charged to income, was the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above processes.

As of December 31, 2019, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default included an estimated drawdown of unused credit based on a credit conversion factor. The proportionate amount of the quantitative methodology calculation after any required adjustment in the qualitative framework resulted in the required allowance for undrawn loan commitments and standby letters of credit as of the reporting date.

The portion of the allowance assigned to loans and leases was reported as a contra asset, directly following loans and leases in the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit was reported in Other Liabilities on the consolidated balance sheets.

Other-Than-Temporary Impairment (OTTI) related to Securities. As of December 31, 2019, a security was considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected was less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security was less than the security’s amortized cost basis and the investor intended, or more-likely-than-not would have been required, to sell the security before recovery of the security’s amortized cost basis. If OTTI existed, the charge to earnings was limited to the amount of credit loss if the investor did not intend to sell the security, and it was more-likely-than-not that it would not have been required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost was recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost was charged to earnings.

Standby Letters of Credit

Standby Letters of Credit. Fees on standby letters of credit are recognized in Other Operating Income on the consolidated statements of income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments.

Buildings and Equipment

Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years.

Other Real Estate Owned (OREO)

Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in Other Assets on the consolidated balance sheets. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the Allowance for Credit Losses assigned to Loans and Leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within Other Operating Expense on the consolidated statements of income.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. Fees paid for the use of software services that do not convey a software license are expensed as incurred. Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable.

Trust, Investment and Other Servicing Fees

Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on an accrual basis, over the period in which the service is provided. Fees are primarily a function of the market value of assets custodied, managed and serviced, transaction volumes, and securities lending volume and spreads, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes.

Client Security Settlement Receivables

Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day as well as custody client security sales executed under contractual settlement date accounting that have not yet settled. Northern Trust advances cash to the client on the date of either client withdrawal or trade execution and awaits collection from either the short-term investment funds or via the settled trade.

Income Taxes

Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates.Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded on the consolidated financial statements. A valuation allowance is established for deferred tax assets if it is more-likely-than-not that all or a portion will not be realized. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes on the consolidated statements of income.

Cash Flow Statements

Cash Flow Statements. Cash and cash equivalents in the cash flow statements have been defined as “Cash and Due from Banks” on the consolidated balance sheets.

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets. Funded pension and postretirement benefits are reported in Other Assets and unfunded pension and postretirement benefits are reported in Other Liabilities on the consolidated balance sheets. Plan assets and benefit obligations are measured annually at December 31, unless specific circumstances require an interim remeasurement. Plan assets are determined based on fair value generally representing observable market prices. The projected benefit obligations are determined based on the present value of projected benefit distributions at an assumed discount rate. Pension costs are recognized ratably over the estimated working lifetime of eligible participants.

Share-Based Compensation Plans

Share-Based Compensation Plans. Northern Trust recognizes as expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees as Compensation on the consolidated statements of income. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the closing price of the Corporation’s stock on the date of grant adjusted for certain awards that do not accrue dividends while vesting. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted.

Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for performance stock unit awards are recognized on a straight-line basis over the requisite service period of the award based on expected achievement of the performance condition. Adjustments are made for employees that meet certain eligibility criteria at the grant date or during the requisite service period.

Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on a current basis for restricted stock units granted prior to February 21, 2017 that are not yet vested, and certain deferred stock unit awards that have vested but are not yet distributed. Dividend equivalents are accrued for performance stock unit awards, most restricted stock unit awards granted on or after February 21, 2017 and director awards not yet vested, and are paid upon vesting. Certain restricted stock units granted on or after February 20, 2018 are not entitled to dividend equivalents during the vesting period. Cash flows resulting from the realization of excess tax benefits are classified as operating cash flows on the consolidated statements of cash flows.

Net Income Per Common Share

Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share.Northern Trust has issued certain restricted stock unit awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These units are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

On January 1, 2021, Northern Trust adopted Accounting Standards Update (ASU) No. 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (ASU 2020-01). ASU 2020-01 addresses two accounting issues: (1) application of the measurement alternative under Topic 321 in correlation with the transition into and out of the equity method under Topic 323 and (2) the measurement of certain forward contracts and purchased options to acquire equity securities. ASU 2020-01 clarifies that an entity applying the measurement alternative under Topic 321 that must transition to the equity method under Topic 323 because of an observable transaction will remeasure its investment immediately before transition, whereas an entity applying the equity method under Topic 323 that must transition to Topic 321 because of an observable transaction will remeasure its investment immediately after transition. ASU 2020-01 also clarifies that certain forward contracts or purchased call options to acquire equity securities generally will be measured using the fair value principles of Topic 321 before settlement or exercise. Upon adoption of ASU 2020-01, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 1, 2021, Northern Trust adopted ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs” (ASU 2020-08). ASU 2020-08 clarifies the Codification related to the standard issued in ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” ASU 2020-08 clarifies that an entity should amortize premiums on purchased callable debt securities to the first call date and related call amount and at that point reassess if there is a remaining premium to amortize to a subsequent call date. Upon adoption of ASU 2020-08, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income.

On January 7, 2021, Northern Trust retrospectively adopted ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (ASU 2021-01). ASU 2021-01 clarifies the scope of Topic 848 to explicitly include those derivative instruments affected by changes in interest rates used for margining, discounting, or contract price alignment as eligible for certain optional expedients and exceptions in Topic 848. Upon adoption of ASU 2021-01, Northern Trust elected the expedients provided in Topic 848 with no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income.

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information

The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2021 and 2020, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates.

TABLE 52: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$37.5 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	10.10%			10.10%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE	VALUATION TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares	$35.3 million	Discounted Cash Flow	Conversion Rate	1.62x			1.62x
			Visa Class A Appreciation	8.73%			8.73%
			Expected Duration	12	-	33 months	20 months

(1) Weighted average of expected duration based on scenario probability.

The following table presents the fair values of Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2021 and 2020, as well as the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for such assets as of such dates.

TABLE 55: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS

	DECEMBER 31, 2021
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$15.0 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	15.4%

(1) Includes real estate collateral-based loans and other collateral-based loans.

	DECEMBER 31, 2020
FINANCIAL INSTRUMENT	FAIR VALUE(1)	VALUATION  TECHNIQUE	UNOBSERVABLE INPUTS	INPUT VALUES			WEIGHTED-AVERAGE INPUT VALUES
Loans	$24.6 million	Market Approach	Discount factor applied to real estate collateral-based loans to reflect realizable value	15.0%	–	20.0%	16.8%

(1) Includes real estate collateral-based loans and other collateral-based loans.

Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level

The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020, segregated by fair value hierarchy level.

TABLE 53: RECURRING BASIS HIERARCHY LEVELING

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,426.1	$	—	$	—	$	—	$	2,426.1
Obligations of States and Political Subdivisions	—		3,876.1		—		—		3,876.1
Government Sponsored Agency	—		18,075.6		—		—		18,075.6
Non-U.S. Government	—		374.0		—		—		374.0
Corporate Debt	—		2,341.7		—		—		2,341.7
Covered Bonds	—		505.6		—		—		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		3,045.1		—		—		3,045.1
Other Asset-Backed	—		5,941.6		—		—		5,941.6
Commercial Mortgage-Backed	—		1,424.7		—		—		1,424.7
Total Available for Sale	2,426.1		35,584.4		—		—		38,010.5
Trading Account	—		0.3		—		—		0.3
Total Available for Sale and Trading Debt Securities	2,426.1		35,584.7		—		—		38,010.8
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		2,207.4		—		(1,530.7)		676.7
Interest Rate Contracts	—		140.0		—		(3.1)		136.9
Total Derivative Assets	—		2,347.4		—		(1,533.8)		813.6
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		1,998.8		—		(1,234.5)		764.3
Interest Rate Contracts	—		98.9		—		(48.1)		50.8
Other Financial Derivatives(1)	—		—		37.5		(0.9)		36.6
Total Derivative Liabilities	$	—	$	2,097.7	$	37.5	$	(1,283.5)	$	851.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2021, derivative assets and liabilities shown above also include reductions of $389.4 million and $139.0 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/ LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Government	$	2,799.9	$	—	$	—	$	—	$	2,799.9
Obligations of States and Political Subdivisions	—		3,083.6		—		—		3,083.6
Government Sponsored Agency	—		24,956.7		—		—		24,956.7
Non-U.S. Government	—		714.0		—		—		714.0
Corporate Debt	—		2,539.6		—		—		2,539.6
Covered Bonds	—		553.1		—		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		2,345.8		—		—		2,345.8
Other Asset-Backed	—		3,997.5		—		—		3,997.5
Commercial Mortgage Backed	—		1,031.8		—		—		1,031.8
Total Available for Sale	2,799.9		39,222.1		—		—		42,022.0
Trading Account	—		0.5		—		—		0.5
Total Available for Sale and Trading Debt Securities	2,799.9		39,222.6		—		—		42,022.5
Other Assets
Derivative Assets
Foreign Exchange Contracts	—		4,260.7		—		(3,505.3)		755.4
Interest Rate Contracts	—		297.5		—		(2.5)		295.0
Total Derivatives Assets	—		4,558.2		—		(3,507.8)		1,050.4
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		4,722.5		—		(2,718.6)		2,003.9
Interest Rate Contracts	—		125.0		—		(98.5)		26.5
Other Financial Derivative(1)	—		—		35.3		—		35.3
Total Derivative Liabilities	$	—	$	4,847.5	$	35.3	$	(2,817.1)	$	2,065.7

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2020, derivative assets and liabilities shown above also include reductions of $1,867.8 million and $1,177.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) This line consists of swaps related to the sale of certain Visa Class B common shares.

Changes in Level 3 Liabilities

The following table presents the changes in Level 3 liabilities for the years ended December 31, 2021 and 2020.

TABLE 54: CHANGES IN LEVEL 3 LIABILITIES

LEVEL 3 LIABILITIES	SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
(In Millions)	2021		2020
Fair Value at January 1	$	35.3	$	33.4
Total (Gains) Losses:
Included in Earnings(1)	21.3		18.3
Purchases, Issues, Sales, and Settlements
Settlements	(19.1)		(16.4)
Fair Value at December 31	$	37.5	$	35.3
Unrealized Losses (Gains) Included in Earnings Related to Financial Instruments Held at December 31(1)	$	22.0	$	18.6

(1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income.

Book and Fair Values of All Financial Instruments

The following tables summarize the fair values of all financial instruments.

TABLE 56: FAIR VALUE OF FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	3,056.8	$	3,056.8	$	3,056.8	$	—	$	—
Federal Reserve and Other Central Bank Deposits	64,582.2		64,582.2		—		64,582.2		—
Interest-Bearing Deposits with Banks	1,949.4		1,949.4		—		1,949.4		—
Securities Purchased under Agreements to Resell	686.4		686.4		—		686.4		—
Debt Securities
Available for Sale(1)	38,010.5		38,010.5		2,426.1		35,584.4		—
Held to Maturity	23,564.5		23,315.4		47.0		23,268.4		—
Trading Account	0.3		0.3		—		0.3		—
Loans (excluding Leases)
Held for Investment	40,319.3		40,208.2		—		—		40,208.2
Held for Sale	12.3		24.5		—		24.5
Client Security Settlement Receivables	1,941.2		1,941.2		—		1,941.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140.1		140.1		—		140.1		—
Community Development Investments	959.6		959.6		—		959.6		—
Employee Benefit and Deferred Compensation	218.4		222.9		119.1		103.8		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	83,318.6	$	83,318.6	$	83,318.6	$	—	$	—
Savings Certificates and Other Time	842.7		843.8		—		843.8		—
Non U.S. Offices Interest-Bearing	75,767.1		75,767.1		—		75,767.1		—
Federal Funds Purchased	0.2		0.2		—		0.2		—
Securities Sold Under Agreements to Repurchase	531.9		531.9		—		531.9		—
Other Borrowings	3,583.8		3,583.9		—		3,583.9		—
Senior Notes	2,505.5		2,591.4		—		2,591.4		—
Long-Term Debt
Subordinated Debt	1,145.7		1,189.4		—		1,189.4		—
Other Liabilities
Standby Letters of Credit	15.7		15.7		—		—		15.7
Loan Commitments	59.8		59.8		—		—		59.8
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	245.3	$	245.3	$	—	$	245.3	$	—
Liabilities	25.5		25.5		—		25.5		—
Interest Rate Contracts
Assets	7.6		7.6		—		7.6		—
Liabilities	8.7		8.7		—		8.7		—
Other Financial Derivatives
Liabilities(2)	37.5		37.5		—		—		37.5
Client-Related and Trading
Foreign Exchange Contracts
Assets	1,962.1		1,962.1		—		1,962.1		—
Liabilities	1,973.3		1,973.3		—		1,973.3		—
Interest Rate Contracts
Assets	132.4		132.4		—		132.4		—
Liabilities	90.2		90.2		—		90.2		—

(1) Refer to the table located on page 103 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

	DECEMBER 31, 2020
					FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
ASSETS
Cash and Due from Banks	$	4,389.5	$	4,389.5	$	4,389.5	$	—	$	—
Federal Reserve and Other Central Bank Deposits	55,503.6		55,503.6		—		55,503.6		—
Interest-Bearing Deposits with Banks	4,372.6		4,372.6		—		4,372.6		—
Securities Purchased under Agreements to Resell	1,596.5		1,596.5		—		1,596.5		—
Debt Securities
Available for Sale(1)	42,022.0		42,022.0		2,799.9		39,222.1		—
Held to Maturity	17,791.1		17,797.4		90.0		17,707.4		—
Trading Account	0.5		0.5		—		0.5		—
Loans (excluding Leases)
Held for Investment	33,558.0		34,017.5		—		—		34,017.5
Client Security Settlement Receivables	1,160.2		1,160.2		—		1,160.2		—
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	275.0		275.0		—		275.0		—
Community Development Investments	919.6		919.6		—		919.6		—
Employee Benefit and Deferred Compensation	215.8		228.9		138.6		90.3		—
LIABILITIES
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	$	71,742.5	$	71,742.5	$	71,742.5	$	—	$	—
Savings Certificates and Other Time	937.1		943.0		—		943.0		—
Non U.S. Offices Interest-Bearing	71,198.4		71,198.4		—		71,198.4		—
Federal Funds Purchased	260.2		260.2		—		260.2		—
Securities Sold Under Agreements to Repurchase	39.8		39.8		—		39.8		—
Other Borrowings	4,011.5		4,012.7		—		4,012.7		—
Senior Notes	3,122.4		3,222.6		—		3,222.6		—
Long-Term Debt
Subordinated Debt	1,189.3		1,250.1		—		1,250.1		—
Floating Rate Capital Debt	277.8		264.6		—		264.6		—
Other Liabilities
Standby Letters of Credit	22.4		22.4		—		—		22.4
Loan Commitments	77.0		77.0		—		—		77.0
DERIVATIVE INSTRUMENTS
Asset/Liability Management
Foreign Exchange Contracts
Assets	$	15.6	$	15.6	$	—	$	15.6	$	—
Liabilities	311.8		311.8		—		311.8		—
Interest Rate Contracts
Assets	8.3		8.3		—		8.3		—
Liabilities	10.2		10.2		—		10.2		—
Other Financial Derivatives
Liabilities(2)	35.3		35.3		—		—		35.3
Client-Related and Trading
Foreign Exchange Contracts
Assets	4,245.1		4,245.1		—		4,245.1		—
Liabilities	4,410.7		4,410.7		—		4,410.7		—
Interest Rate Contracts
Assets	289.2		289.2		—		289.2		—
Liabilities	114.8		114.8		—		114.8		—

(1) Refer to the table located on page 104 for the disaggregation of AFS debt securities.

(2) This line consists of swaps related to the sale of certain Visa Class B common shares.

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Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale

The following tables provide the amortized cost, fair values, and remaining maturities of AFS debt securities.

TABLE 57: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,406.2	$	29.3	$	9.4	$	2,426.1
Obligations of States and Political Subdivisions	3,841.0		73.7		38.6		3,876.1
Government Sponsored Agency	18,092.1		93.7		110.2		18,075.6
Non-U.S. Government	383.4		0.1		9.5		374.0
Corporate Debt	2,319.8		31.6		9.7		2,341.7
Covered Bonds	502.6		3.9		0.9		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,052.4		28.1		35.4		3,045.1
Other Asset-Backed	5,962.0		11.3		31.7		5,941.6
Commercial Mortgage-Backed	1,389.0		38.9		3.2		1,424.7
Total	$	37,948.5	$	310.6	$	248.6	$	38,010.5

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	2,728.8	$	71.1	$	—	$	2,799.9
Obligations of States and Political Subdivisions	2,927.8		155.9		0.1		3,083.6
Government Sponsored Agency	24,595.1		388.5		26.9		24,956.7
Non-U.S. Government	713.6		1.1		0.7		714.0
Corporate Debt	2,459.9		79.8		0.1		2,539.6
Covered Bonds	543.1		10.0		—		553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,281.7		64.7		0.6		2,345.8
Other Asset-Backed	3,953.5		46.8		2.8		3,997.5
Commercial Mortgage-Backed	952.2		79.7		0.1		1,031.8
Total	$	41,155.7	$	897.6	$	31.3	$	42,022.0

Remaining Maturity of Securities

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	—	$	—	$	2,157.8	$	2,187.1	$	248.4	$	239.0	$	—	$	—	$	2,406.2	$	2,426.1
Obligations of States and Political Subdivisions	22.8		23.0		448.3		462.1		3,239.7		3,262.6		130.2		128.4		3,841.0		3,876.1
Government Sponsored Agency	2,706.1		2,713.2		8,112.2		8,121.1		6,084.0		6,053.4		1,189.8		1,187.9		18,092.1		18,075.6
Non-U.S. Government	72.7		72.7		228.4		223.1		82.3		78.2		—		—		383.4		374.0
Corporate Debt	404.4		408.0		1,892.6		1,911.6		18.1		17.5		4.7		4.6		2,319.8		2,341.7
Covered Bonds	141.5		142.1		361.1		363.5		—		—		—		—		502.6		505.6
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	760.6		765.7		1,926.8		1,926.1		365.0		353.3		—		—		3,052.4		3,045.1
Other Asset-Backed	894.0		896.8		3,559.0		3,541.4		1,291.6		1,286.3		217.4		217.1		5,962.0		5,941.6
Commercial Mortgage-Backed	7.5		7.4		962.3		982.1		419.2		435.2		—		—		1,389.0		1,424.7
Total	$	5,009.6	$	5,028.9	$	19,648.5	$	19,718.1	$	11,748.3	$	11,725.5	$	1,542.1	$	1,538.0	$	37,948.5	$	38,010.5

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

DECEMBER 31, 2021	ONE YEAR OR LESS				ONE TO FIVE YEARS				FIVE TO TEN YEARS				OVER TEN YEARS				TOTAL
(In Millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government	$	47.0	$	47.0	$	—	$	—	$	—	$	—	$	—	$	—	$	47.0	$	47.0
Obligations of States and Political Subdivisions	0.8		0.8		—		—		—		—		—		—		0.8		0.8
Government Sponsored Agency	1,161.5		1,143.6		2,101.4		2,064.6		1,848.8		1,815.0		815.9		799.4		5,927.6		5,822.6
Non-U.S. Government	4,502.7		4,502.6		1,109.2		1,103.9		161.4		160.9		—		—		5,773.3		5,767.4
Corporate Debt	177.4		178.8		708.3		703.4		16.1		15.6		—		—		901.8		897.8
Covered Bonds	650.1		651.3		1,684.0		1,688.0		608.3		601.8		—		—		2,942.4		2,941.1
Certificates of Deposit	674.7		674.7		—		—		—		—		—		—		674.7		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,086.9		1,091.5		4,507.7		4,451.4		503.4		489.4		—		—		6,098.0		6,032.3
Other Asset-Backed	190.4		190.6		398.0		398.7		94.2		94.3		—		—		682.6		683.6
Other	106.0		104.1		232.0		221.8		60.1		58.4		118.2		63.8		516.3		448.1
Total	$	8,597.5	$	8,585.0	$	10,740.6	$	10,631.8	$	3,292.3	$	3,235.4	$	934.1	$	863.2	$	23,564.5	$	23,315.4

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value

The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2021 and 2020.

TABLE 59: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED

AS OF DECEMBER 31, 2021	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
U.S. Government	$	239.0	$	9.4	$	—	$	—	$	239.0	$	9.4
Obligations of States and Political Subdivisions	1,699.5		37.4		31.6		1.2		1,731.1		38.6
Government Sponsored Agency	8,207.3		90.2		1,821.4		20.0		10,028.7		110.2
Non-U.S. Government	230.0		9.5		—		—		230.0		9.5
Corporate Debt	693.7		9.7		—		—		693.7		9.7
Covered Bonds	92.1		0.9		—		—		92.1		0.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	1,116.8		31.9		172.3		3.5		1,289.1		35.4
Other Asset-Backed	3,815.5		31.4		11.7		0.3		3,827.2		31.7
Commercial Mortgage-Backed	566.8		3.2		—		—		566.8		3.2
Total	$	16,660.7	$	223.6	$	2,037.0	$	25.0	$	18,697.7	$	248.6

AS OF DECEMBER 31, 2020	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
(In Millions)	FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES		FAIR VALUE		UNREALIZED LOSSES
Obligations of States and Political Subdivisions	$	52.3	$	0.1	$	—	$	—	$	52.3	$	0.1
Government Sponsored Agency	2,402.3		13.6		2,528.7		13.3		4,931.0		26.9
Non-U.S. Government	90.5		0.7		—		—		90.5		0.7
Corporate Debt	66.6		0.1		—		—		66.6		0.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	162.8		0.5		49.9		0.1		212.7		0.6
Other Asset-Backed	176.8		0.2		792.3		2.6		969.1		2.8
Commercial Mortgage-Backed	44.4		0.1		—		—		44.4		0.1
Total	$	2,995.7	$	15.3	$	3,370.9	$	16.0	$	6,366.6	$	31.3

Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity

The following tables provide the amortized cost, fair values and remaining maturities of held to maturity (HTM) debt securities.

TABLE 60: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF HELD TO MATURITY DEBT SECURITIES

	DECEMBER 31, 2021
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	47.0	$	—	$	—	$	47.0
Obligations of States and Political Subdivisions	0.8		—		—		0.8
Government Sponsored Agency	5,927.6		1.1		106.1		5,822.6
Non-U.S. Government	5,773.3		3.9		9.8		5,767.4
Corporate Debt	901.8		2.5		6.5		897.8
Covered Bonds	2,942.4		8.3		9.6		2,941.1
Certificates of Deposit	674.7		—		—		674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	6,098.0		14.3		80.0		6,032.3
Other Asset-Backed	682.6		1.0		—		683.6
Other	516.3		3.4		71.6		448.1
Total	$	23,564.5	$	34.5	$	283.6	$	23,315.4

	DECEMBER 31, 2020
(In Millions)	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		FAIR VALUE
U.S. Government	$	90.0	$	—	$	—	$	90.0
Obligations of States and Political Subdivisions	2.1		0.1		—		2.2
Government Sponsored Agency	3.0		0.3		—		3.3
Non-U.S. Government	8,336.6		7.3		0.2		8,343.7
Corporate Debt	588.0		6.5		0.1		594.4
Covered Bonds	3,184.6		24.6		0.3		3,208.9
Certificates of Deposit	807.2		—		—		807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,648.0		43.5		0.9		3,690.6
Other Asset-Backed	677.0		0.9		—		677.9
Other	454.6		1.1		76.5		379.2
Total	$	17,791.1	$	84.3	$	78.0	$	17,797.4

Debt Securities, Held-to-maturity, Credit Quality Indicator

The following table provides the amortized cost of HTM debt securities by credit rating.

TABLE 62: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING

	AS OF DECEMBER 31, 2021
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	47.0		$	—		$	—		$	—		$	—		$	47.0
Obligations of States and Political Subdivisions	—			0.8			—			—			—			0.8
Government Sponsored Agency	5,927.6			—			—			—			—			5,927.6
Non-U.S. Government	398.0			942.6			4,088.8			343.9			—			5,773.3
Corporate Debt	2.3			386.7			512.8			—			—			901.8
Covered Bonds	2,942.4			—			—			—			—			2,942.4
Certificates of Deposit	—			—			—			—			674.7			674.7
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,207.6			1,858.0			31.3			1.1			—			6,098.0
Other Asset-Backed	682.6			—			—			—			—			682.6
Other	—			—			—			—			516.3			516.3
Total	$	14,207.5		$	3,188.1		$	4,632.9		$	345.0		$	1,191.0		$	23,564.5
Percent of Total	60		%	14		%	20		%	1		%	5		%	100		%

	AS OF DECEMBER 31, 2020
(In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
U.S. Government	$	90.0		$	—		$	—		$	—		$	—		$	90.0
Obligations of States and Political Subdivisions	—			1.0			—			1.1			—			2.1
Government Sponsored Agency	3.0			—			—			—			—			3.0
Non-U.S. Government	319.8			1,337.4			6,630.6			48.8			—			8,336.6
Corporate Debt	3.8			279.1			305.1			—			—			588.0
Covered Bonds	3,184.6			—			—			—			—			3,184.6
Certificates of Deposit	—			—			—			—			807.2			807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	2,590.9			1,057.1			—			—			—			3,648.0
Other Asset-Backed	677.0			—			—			—			—			677.0
Other	—			—			—			—			454.6			454.6
Total	$	6,869.1		$	2,674.6		$	6,935.7		$	49.9		$	1,261.8		$	17,791.1
Percent of Total	39		%	15		%	39		%	—		%	7		%	100		%

Schedule of Realized Gain (Loss)

Proceeds of $116.7 million, $879.9 million, and $1.2 billion in 2021, 2020, and 2019, respectively, from the sale of debt securities resulted in the following gains and losses shown in the following table.

TABLE 63: INVESTMENT SECURITY GAINS AND LOSSES

	DECEMBER 31,
(In Millions)	2021		2020		2019
Gross Realized Debt Securities Gains	$	1.4	$	3.4	$	2.4
Gross Realized Debt Securities Losses	(1.7)		(3.8)		(3.5)
Changes in Other-Than-Temporary Impairment Losses(1)	—		—		(0.3)
Net Investment Security Losses	$	(0.3)	$	(0.4)	$	(1.4)

(1) Other-than-temporary impairment losses relate to certain Community Reinvestment Act (CRA) eligible HTM debt securities.

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Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities Purchased under Agreements to Resell

($ In Millions)	2021			2020
Balance at December 31	$	686.4		$	1,596.5
Average Balance During the Year	1,067.4			1,253.1
Average Interest Rate Earned During the Year	0.33		%	0.31		%
Maximum Month-End Balance During the Year	$	1,819.1		$	2,055.6

Securities Sold under Agreements to Repurchase

($ In Millions)	2021			2020
Balance at December 31	$	531.9		$	39.8
Average Balance During the Year	232.0			218.3
Average Interest Rate Paid During the Year	0.07		%	0.47		%
Maximum Month-End Balance During the Year	$	892.6		$	269.8

Transfer of Certain Financial Assets Accounted for as Secured Borrowings

	REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
	December 31, 2021						December 31, 2020
($ In Millions)	OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL		OVERNIGHT AND CONTINUOUS		UP TO 30 DAYS		TOTAL
U.S. Treasury and Agency Securities	$	32.4	$	499.5	$	531.9	$	39.8	$	—	$	39.8
Total Borrowings	32.4		499.5		531.9		39.8		—		39.8
Net Amount of Recognized Liabilities for Repurchase Agreements in Note 28	32.4		499.5		531.9		39.8		—		39.8
Amounts related to agreements not included in Note 28	—		—		—		—		—		—

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Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Amounts Outstanding for Loans and Leases by Segment and Class

Amounts outstanding for Loans and Leases, by segment and class, are shown in the following table.

TABLE 67: LOANS AND LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Commercial
Commercial and Institutional	$	11,489.2	$	10,058.3
Commercial Real Estate	4,326.3		3,558.4
Non-U.S.	1,990.2		1,345.7
Lease Financing, net	11.0		11.4
Other	670.7		288.2
Total Commercial	18,487.4		15,262.0
Personal
Private Client	15,256.3		11,815.1
Residential Real Estate	6,319.9		6,035.7
Non-U.S.	381.8		597.9
Other	35.2		49.0
Total Personal	21,993.2		18,497.7
Total Loans and Leases	$	40,480.6	$	33,759.7

Components of Net Investment in Direct Finance and Leveraged Leases

The components of the net investment in leveraged leases is as follows:

TABLE 68: LEVERAGED LEASES

	DECEMBER 31,
(In Millions)	2021		2020
Leveraged Leases
Net Rental Receivable	$	11.4	$	11.8
Residual Value	—		—
Unearned Income	(0.4)		(0.4)
Investment in Leveraged Leases	11.0		11.4
Lease Financing, net	$	11.0	$	11.4

Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "1 to 3", "4 to 5" and "6 to 9" (Watch List) Categories

TABLE 69: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR

DECEMBER 31, 2021	TERM LOANS AND LEASES												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2021		2020		2019		2018		2017		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	1,057.9	$	469.7	$	313.7	$	156.6	$	48.2	$	535.8	$	4,944.9	$	0.1	$	7,526.9
4 to 5 Category	1,043.6		432.2		377.3		231.6		234.1		190.1		1,219.0		33.1		3,761.0
6 to 9 Category	50.0		20.3		26.8		30.2		9.9		1.9		62.2		—		201.3
Total Commercial and Institutional	2,151.5		922.2		717.8		418.4		292.2		727.8		6,226.1		33.2		11,489.2
Commercial Real Estate
Risk Rating:
1 to 3 Category	485.3		310.2		260.6		60.2		16.8		79.3		67.5		2.9		1,282.8
4 to 5 Category	967.9		638.1		460.1		223.0		81.4		364.1		182.3		20.5		2,937.4
6 to 9 Category	24.5		—		50.6		—		20.0		8.5		2.5		—		106.1
Total Commercial Real Estate	1,477.7		948.3		771.3		283.2		118.2		451.9		252.3		23.4		4,326.3
Non-U.S.
Risk Rating:
1 to 3 Category	824.1		68.9		38.4		—		9.1		—		582.0		—		1,522.5
4 to 5 Category	160.2		—		—		1.9		—		191.1		73.3		1.8		428.3
6 to 9 Category	2.9		—		23.1		—		—		—		13.4		—		39.4
Total Non-U.S.	987.2		68.9		61.5		1.9		9.1		191.1		668.7		1.8		1,990.2
Lease Financing, net
Risk Rating:
4 to 5 Category	—		—		—		—		—		11.0		—		—		11.0
Total Lease Financing, net	—		—		—		—		—		11.0		—		—		11.0
Other
Risk Rating:
1 to 3 Category	551.5		—		—		—		—		—		—		—		551.5
4 to 5 Category	119.2		—		—		—		—		—		—		—		119.2
Total Other	670.7		—		—		—		—		—		—		—		670.7
Total Commercial	5,287.1		1,939.4		1,550.6		703.5		419.5		1,381.8		7,147.1		58.4		18,487.4
Personal
Private Client
Risk Rating:
1 to 3 Category	455.5		97.9		87.0		14.9		38.3		129.8		7,592.8		44.7		8,460.9
4 to 5 Category	579.2		333.9		519.3		81.0		54.8		39.9		4,979.8		178.3		6,766.2
6 to 9 Category	7.1		0.2		—		20.4		—		—		1.5		—		29.2
Total Private Client	1,041.8		432.0		606.3		116.3		93.1		169.7		12,574.1		223.0		15,256.3
Residential Real Estate
Risk Rating:
1 to 3 Category	1,137.8		996.4		201.8		13.5		49.3		505.8		161.5		—		3,066.1
4 to 5 Category	1,137.3		1,002.5		242.7		79.5		113.3		369.8		218.1		2.2		3,165.4
6 to 9 Category	0.4		10.5		5.4		8.4		0.5		58.2		5.0		—		88.4
Total Residential Real Estate	2,275.5		2,009.4		449.9		101.4		163.1		933.8		384.6		2.2		6,319.9
Non-U.S.
Risk Rating:
1 to 3 Category	27.6		—		1.2		—		—		1.0		44.1		—		73.9
4 to 5 Category	36.1		1.9		18.7		10.4		—		3.8		229.0		7.8		307.7
6 to 9 Category	—		—		—		—		—		0.2		—		—		0.2
Total Non-U.S.	63.7		1.9		19.9		10.4		—		5.0		273.1		7.8		381.8
Other
Risk Rating:
1 to 3 Category	13.4		—		—		—		—		—		—		—		13.4
4 to 5 Category	21.8		—		—		—		—		—		—		—		21.8
Total Other	35.2		—		—		—		—		—		—		—		35.2
Total Personal	3,416.2		2,443.3		1,076.1		228.1		256.2		1,108.5		13,231.8		233.0		21,993.2
Total Loans and Leases	$	8,703.3	$	4,382.7	$	2,626.7	$	931.6	$	675.7	$	2,490.3	$	20,378.9	$	291.4	$	40,480.6

Impaired Loans By Segment and Class

The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of December 31, 2021 and 2020.

TABLE 70: DELINQUENCY STATUS

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2021
Commercial
Commercial and Institutional	$	11,434.7	$	32.5	$	2.1	$	0.4	$	11,469.7	$	19.5	$	11,489.2	$	8.8
Commercial Real Estate	4,256.6		3.1		—		—		4,259.7		66.6		4,326.3		52.3
Non-U.S.	1,990.2		—		—		—		1,990.2		—		1,990.2		—
Lease Financing, net	11.0		—		—		—		11.0		—		11.0		—
Other	670.7		—		—		—		670.7		—		670.7		—
Total Commercial	18,363.2		35.6		2.1		0.4		18,401.3		86.1		18,487.4		61.1
Personal
Private Client	14,927.3		229.5		71.8		27.7		15,256.3		—		15,256.3		—
Residential Real Estate	6,273.2		7.0		3.3		0.2		6,283.7		36.2		6,319.9		36.2
Non-U.S.	381.6		0.2		—		—		381.8		—		381.8		—
Other	35.2		—		—		—		35.2		—		35.2		—
Total Personal	21,617.3		236.7		75.1		27.9		21,957.0		36.2		21,993.2		36.2
Total Loans and Leases	$	39,980.5	$	272.3	$	77.2	$	28.3	$	40,358.3	$	122.3	$	40,480.6	$	97.3
					Other Real Estate Owned						$	3.0
					Total Nonaccrual Assets						$	125.3

	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2020
Commercial
Commercial and Institutional	$	9,877.0	$	153.7	$	1.2	$	—	$	10,031.9	$	26.4	$	10,058.3	$	9.1
Commercial Real Estate	3,516.2		2.0		—		—		3,518.2		40.2		3,558.4		32.3
Non-U.S.	1,345.7		—		—		—		1,345.7		—		1,345.7		—
Lease Financing, net	11.4		—		—		—		11.4		—		11.4		—
Other	288.2		—		—		—		288.2		—		288.2		—
Total Commercial	15,038.5		155.7		1.2		—		15,195.4		66.6		15,262.0		41.4
Personal
Private Client	11,765.4		29.1		9.9		7.8		11,812.2		2.9		11,815.1		2.9
Residential Real Estate	5,946.0		23.5		2.9		1.1		5,973.5		62.2		6,035.7		53.8
Non-U.S	596.7		1.2		—		—		597.9		—		597.9		—
Other	49.0		—		—		—		49.0		—		49.0		—
Total Personal	18,357.1		53.8		12.8		8.9		18,432.6		65.1		18,497.7		56.7
Total Loans and Leases	$	33,395.6	$	209.5	$	14.0	$	8.9	$	33,628.0	$	131.7	$	33,759.7	$	98.1
					Other Real Estate Owned						$	0.7
					Total Nonaccrual Assets						$	132.4

Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances

The following table provides, by segment and class, the number of TDR modifications of loans and leases during the years ended December 31, 2021, and 2020, and the recorded investments and unpaid principal balances as of December 31, 2021 and 2020.

TABLE 71: TROUBLED DEBT RESTRUCTURINGS

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2021
Commercial
Commercial and Institutional	6	$	19.6	$	19.6
Commercial Real Estate	3	36.0		42.4
Total Commercial	9	55.6		62.0
Personal
Residential Real Estate	10	1.3		1.5
Total Personal	10	1.3		1.5
Total Loans and Leases	19	$	56.9	$	63.5

Note: Period-end balances reflect all paydowns and charge-offs during the year.

($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
December 31, 2020
Commercial
Commercial and Institutional	3	$	24.3	$	24.5
Total Commercial	3	24.3		24.5
Personal
Residential Real Estate	22	16.2		16.7
Total Personal	22	16.2		16.7
Total Loans and Leases	25	$	40.5	$	41.2

Note: Period-end balances reflect all paydowns and charge-offs during the year.

Schedule Of Non-Troubled Debt Restructuring Modifications

The following provides the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of December 31, 2021, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule). As of December 31, 2021, there were three residential real estate COVID-19-related loan modifications in active deferral status which totaled $2.0 million, with immaterial deferred principal and interest.

TABLE 72: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL

	DECEMBER 31, 2021
($ In Millions)	NUMBER OF COVID-19 RELATED MODIFICATIONS	LOAN VOLUME		DEFERRED PRINCIPAL AMOUNT		DEFERRED INTEREST AMOUNT
Commercial
Commercial and Institutional	73	$	199.8	$	0.1	$	1.6
Commercial Real Estate	80	390.7		—		2.4
Total Commercial	153	$	590.5	$	0.1	$	4.0
Personal
Private Client	29	$	143.1	$	—	$	1.0
Residential Real Estate	208	102.0		1.1		1.3
Total Personal	237	$	245.1	$	1.1	$	2.3
Total Loans	390	$	835.6	$	1.2	$	6.3

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Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment

The following table provides information regarding changes in the total allowance for credit losses.

TABLE 73: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES.

	2021
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at Beginning of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9
Charge-Offs	(0.7)		—		—		—		(0.7)
Recoveries	7.0		—		—		—		7.0
Net Recoveries (Charge-Offs)	6.3		—		—		—		6.3
Provision for Credit Losses	(58.6)		(27.0)		3.9		0.2		(81.5)
Balance at End of Period	$	138.4	$	34.1	$	11.2	$	1.0	$	184.7

	2020
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		HELD TO MATURITY DEBT SECURITIES		OTHER FINANCIAL ASSETS		TOTAL
Balance at End of Prior Period	$	104.5	$	19.9	$	—	$	—	$	124.4
Cumulative Effect Adjustment	(2.2)		8.9		6.6		0.4		13.7
Balance at Beginning of Period	102.3		28.8		6.6		0.4		138.1
Charge-Offs	(9.7)		—		—		—		(9.7)
Recoveries	6.5		—		—		—		6.5
Net Recoveries (Charge-Offs)	(3.2)		—		—		—		(3.2)
Provision for Credit Losses	91.6		32.3		0.7		0.4		125.0
Balance at End of Period	$	190.7	$	61.1	$	7.3	$	0.8	$	259.9

	2019
(In Millions)	LOANS AND LEASES		UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT		TOTAL
Balance at Beginning of Period	$	112.6	$	25.6	$	138.2
Charge-Offs	(6.5)		—		(6.5)
Recoveries	7.2		—		7.2
Net Recoveries (Charge-Offs)	0.7		—		0.7
Provision for Credit Losses	(8.8)		(5.7)		(14.5)
Balance at End of Period	$	104.5	$	19.9	$	124.4

The following table provides information regarding changes in the total allowance for credit losses, including undrawn loan commitments and standby letters of credit, by segment.

TABLE 74: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES

	2021
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1
Charge-Offs	(0.3)		(0.4)		(0.7)		—		—		—
Recoveries	0.9		6.1		7.0		—		—		—
Net Recoveries (Charge-Offs)	0.6		5.7		6.3		—		—		—
Provision for Credit Losses	(37.2)		(21.4)		(58.6)		(26.2)		(0.8)		(27.0)
Balance at End of Period	$	105.6	$	32.8	$	138.4	$	31.4	$	2.7	$	34.1

	2020
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at End of Prior Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9
Cumulative Effect Adjustment	(5.9)		3.7		(2.2)		11.9		(3.0)		8.9
Balance at Beginning of Period	$	52.2	$	50.1	$	102.3	$	27.7	$	1.1	$	28.8
Charge-Offs	(6.3)		(3.4)		(9.7)		—		—		—
Recoveries	2.4		4.1		6.5		—		—		—
Net Recoveries (Charge-Offs)	(3.9)		0.7		(3.2)		—		—		—
Provision for Credit Losses	93.9		(2.3)		91.6		29.9		2.4		32.3
Balance at End of Period	$	142.2	$	48.5	$	190.7	$	57.6	$	3.5	$	61.1

	2019
	LOANS AND LEASES						UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Balance at Beginning of Period	$	57.6	$	55.0	$	112.6	$	21.1	$	4.5	$	25.6
Charge-Offs	(3.0)		(3.5)		(6.5)		—		—		—
Recoveries	0.9		6.3		7.2		—		—		—
Net Recoveries (Charge-Offs)	(2.1)		2.8		0.7		—		—		—
Provision for Credit Losses	2.6		(11.4)		(8.8)		(5.3)		(0.4)		(5.7)
Balance at End of Period	$	58.1	$	46.4	$	104.5	$	15.8	$	4.1	$	19.9

The following table provides information regarding the recorded investments in loans and leases and the allowance for credit losses for loans and leases and undrawn loan commitments and standby letters of credit by segment as of December 31, 2021 and 2020.

TABLE 75: RECORDED INVESTMENTS IN LOANS AND LEASES

	DECEMBER 31, 2021						DECEMBER 31, 2020
(In Millions)	COMMERCIAL		PERSONAL		TOTAL		COMMERCIAL		PERSONAL		TOTAL
Loans and Leases
Evaluated on an Individual Basis	$	92.1	$	74.5	$	166.6	$	66.6	$	65.1	$	131.7
Evaluated on a Collective Basis	18,395.3		21,918.7		40,314.0		15,195.4		18,432.6		33,628.0
Total Loans and Leases	18,487.4		21,993.2		40,480.6		15,262.0		18,497.7		33,759.7
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	10.1		—		10.1		8.8		0.3		9.1
Evaluated on a Collective Basis	95.5		32.8		128.3		133.4		48.2		181.6
Allowance Assigned to Loans and Leases	105.6		32.8		138.4		142.2		48.5		190.7
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	—		—		—		1.6		—		1.6
Evaluated on a Collective Basis	31.4		2.7		34.1		56.0		3.5		59.5
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	31.4		2.7		34.1		57.6		3.5		61.1
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	$	137.0	$	35.5	$	172.5	$	199.8	$	52.0	$	251.8

Debt Securities, Held-to-maturity, Allowance for Credit Loss

The following table provides information regarding changes in the total allowance for credit losses for HTM debt securities during 2021 and 2020.

TABLE 76: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES

	2021
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at Beginning of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3
Provision for Credit Losses	0.6		1.7		1.8		—		(0.2)		3.9
Balance at End of Period	$	1.4	$	1.9	$	3.0	$	0.1	$	4.8	$	11.2

	2020
(In Millions)	CORPORATE DEBT		NON-U.S. GOVERNMENT		SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS		COVERED BONDS		OTHER		TOTAL
Balance at End of Prior Period	$	—	$	—	$	—	$	—	$	—	$	—
Cumulative Effect Adjustment	0.8		0.3		0.9		—		4.6		6.6
Balance at Beginning of Period	0.8		0.3		0.9		—		4.6		6.6
Provision for Credit Losses	—		(0.1)		0.3		0.1		0.4		0.7
Balance at End of Period	$	0.8	$	0.2	$	1.2	$	0.1	$	5.0	$	7.3

Schedule of Accrued Interest

The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.

TABLE 77: ACCRUED INTEREST

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Loans and Leases	$	62.6	$	55.3
Debt Securities
Held to Maturity	30.4		26.5
Available for Sale	129.7		153.6
Other Financial Assets	2.3		1.4
Total	$	225.0	$	236.8

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Concentrations of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Commercial Real Estate Loan Types

The table below provides additional detail regarding commercial real estate loan types.

TABLE 78: COMMERCIAL REAL ESTATE LOANS

	DECEMBER 31,
(In Millions)	2021		2020
Commercial Mortgages
Office	$	1,011.4	$	831.3
Apartment/ Multi-family	1,288.8		906.8
Retail	601.8		561.3
Industrial/ Warehouse	442.9		344.2
Other	516.8		409.9
Total Commercial Mortgages	3,861.7		3,053.5
Construction, Acquisition and Development Loans	464.6		504.9
Total Commercial Real Estate Loans	$	4,326.3	$	3,558.4

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Buildings and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of Buildings and Equipment

A summary of Buildings and Equipment is presented in the following table.

TABLE 79: BUILDINGS AND EQUIPMENT

	DECEMBER 31, 2021
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	11.5	$	0.3	$	11.2
Buildings	217.6		136.5		81.1
Equipment	478.4		275.4		203.0
Leasehold Improvements	513.6		320.2		193.4
Total Buildings and Equipment	$	1,221.1	$	732.4	$	488.7

	DECEMBER 31, 2020
(In Millions)	ORIGINAL COST		ACCUMULATED DEPRECIATION		NET BOOK VALUE
Land and Improvements	$	14.5	$	0.5	$	14.0
Buildings	257.8		163.0		94.8
Equipment	816.4		596.8		219.6
Leasehold Improvements	523.9		337.4		186.5
Total Buildings and Equipment	$	1,612.6	$	1,097.7	$	514.9

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Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease Cost Components

The components of lease costs for the years ended December 31, 2021 and 2020 were as follows.

TABLE 80: LEASE COST COMPONENTS

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Lease Cost	$	96.2	$	119.4
Variable Lease Cost	37.3		32.7
Sublease Income	(4.5)		(4.8)
Total Lease Cost	$	129.0	$	147.3

The following table provides supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020.

TABLE 84: SUPPLEMENTAL CASH FLOW INFORMATION

(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows	$	69.5	$	107.9
Supplemental non-cash information
Right-of-use assets obtained in exchange for new operating lease liabilities	$	58.5	$	164.8

Maturity of Lease Liability

The following table presents a maturity analysis of lease liabilities as of December 31, 2021.

TABLE 81: MATURITY OF LEASE LIABILITIES

(In Millions)	MATURITY OF LEASE LIABILITIES
2022	$	93.2
2023	88.9
2024	80.3
2025	82.6
2026	61.7
Later Years	346.5
Total Lease Payments	753.2
Less: Imputed Interest	(90.1)
Present Value of Lease Liabilities	$	663.1

Leases

The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2021 and 2020 are presented in the following table.

TABLE 82: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES

(In Millions)	LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET	DECEMBER 31, 2021		DECEMBER 31, 2020
Assets
Operating Lease Right-of-Use Asset	Other Assets	$	531.2	$	560.5
Liabilities
Operating Lease Liability	Other Liabilities	$	663.1	$	700.6

The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2021 and 2020 were as follows:

TABLE 83: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE

	DECEMBER 31, 2021		DECEMBER 31, 2020
Operating Leases
Weighted-Average Remaining Lease Term	9.6 years		10.0 years
Weighted-Average Discount Rate	2.4	%	2.5	%

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Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Changes by Reporting Segment in Carrying Amounts of Goodwill, including Effect of Foreign Exchange Rates on Non-U.S.-Dollar-Denominated Balances

Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2021 and 2020, including the effect of foreign exchange rates on non-U.S.-dollar denominated balances, were as follows.

TABLE 85: GOODWILL

(In Millions)	CORPORATE & INSTITUTIONAL SERVICES		WEALTH MANAGEMENT		TOTAL
Balance at December 31, 2019(1)	$	616.4	$	80.4	$	696.8
Foreign Exchange Rates	10.3		0.1		10.4
Balance at December 31, 2020	$	626.7	$	80.5	$	707.2
Goodwill Acquired	4.2		—		4.2
Foreign Exchange Rates	(5.2)		—		(5.2)
Balance at December 31, 2021	$	625.7	$	80.5	$	706.2

(1) $9.3 million of goodwill was moved from Corporate & Institutional Services to Wealth Management for reporting purposes, to better reflect the nature of the client base.

Other Intangible Assets Subject to Amortization

The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2021 and 2020 were as follows.

TABLE 86: OTHER INTANGIBLE ASSETS

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	206.4	$	221.3
Less: Accumulated Amortization	114.8		108.7
Net Book Value	$	91.6	$	112.6

The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2021 and 2020 were as follows.

TABLE 87: CAPITALIZED SOFTWARE

	DECEMBER 31,
(In Millions)	2021		2020
Gross Carrying Amount	$	2,982.1	$	4,337.4
Less: Accumulated Amortization	1,299.5		2,744.5
Net Book Value	$	1,682.6	$	1,592.9

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Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Banking And Thrift, Time Deposits [Abstract]

Time Deposit Maturities

The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2021.

TABLE 88: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE

	DECEMBER 31, 2021
	U.S. OFFICE		NON-U.S. OFFICES
(In Millions)	CERTIFICATES OF DEPOSIT		OTHER TIME		TOTAL
1 Year or Less	$	625.3	$	383.5	$	1,008.8
Over 1 Year to 2 Years	13.8		—		13.8
Over 2 Years to 3 Years	1.5		—		1.5
Over 3 Years to 4 Years	0.3		—		0.3
Over 4 Years to 5 Years	0.8		—		0.8
Over 5 Years	—		—		—
Total	$	641.7	$	383.5	$	1,025.2

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Senior Notes and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Summary of Senior Notes Outstanding

A summary of Senior Notes outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 89: SENIOR NOTES

	DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Senior Notes(1)
Fixed Rate Due Aug. 2021(2)	3.375	%	$	—	$	499.8
Fixed Rate Due Aug. 2022(2)	2.375		499.8		499.6
Fixed Rate Due Aug. 2028(3)(4)	3.65		548.5		584.4
Fixed Rate Due May 2029(3)(4)	3.15		533.9		567.9
Fixed Rate Due May 2030(3)(4)	1.95		923.3		970.7
Total Senior Notes			$	2,505.5	$	3,122.4

(1) As of December 31, 2021, debt issuance costs of $2.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Redeemable within three months of maturity.

(4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $12.5 million and $130.7 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

Summary of Long-Term Debt Outstanding

A summary of Long-Term Debt outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 90: LONG-TERM DEBT

			DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Subordinated Debt(1)
Fixed Rate Notes due Oct. 2025(2)(3)	3.95	%	$	796.2	$	839.8
Fixed-to-Floating Rate Notes due May 2032(4)	3.375		349.5		349.5
Total Long-Term Debt			$	1,145.7	$	1,189.3
Long-Term Debt Qualifying as Risk-Based Capital			$	799.8	$	949.7

(1) As of December 31, 2021, debt issuance costs of $0.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $46.9 million and $90.8 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

(4) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of 3.375%, payable semi-annually in arrears. From, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month LIBOR plus 1.131%, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.

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Floating Rate Capital Debt (Tables)

12 Months Ended

Dec. 31, 2021

Brokers and Dealers [Abstract]

Summary of Book Values of Outstanding Subordinated Debentures

The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2021 and 2020.

TABLE 91: SUBORDINATED DEBENTURES

	DECEMBER 31,
(In Millions)	2021		2020
NTC Capital I Subordinated Debentures	$	—	$	154.3
NTC Capital II Subordinated Debentures	—		123.5
Total Subordinated Debentures	$	—	$	277.8

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Analysis of Changes in Number of Shares of Common Stock Outstanding

An analysis of changes in the number of shares of common stock outstanding follows:

TABLE 92: SHARES OF COMMON STOCK

	2021	2020	2019
Balance at January 1	208,289,178	209,709,046	219,012,050
Incentive Plan and Awards	1,162,484	1,512,035	1,688,931
Stock Options Exercised	837,757	344,686	786,931
Treasury Stock Purchased	(2,527,544)	(3,276,589)	(11,778,866)
Balance at December 31	207,761,875	208,289,178	209,709,046

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2021, 2020, and 2019, and changes during the years then ended.

TABLE 93: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(In Millions)	NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)		NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES		NET FOREIGN CURRENCY ADJUSTMENT		NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS		TOTAL
Balance at December 31, 2018	$	(114.9)	$	4.0	$	67.9	$	(410.7)	$	(453.7)
Net Change	228.9		(7.7)		49.9		(12.1)		259.0
Balance at December 31, 2019	$	114.0	$	(3.7)	$	117.8	$	(422.8)	$	(194.7)
Net Change	527.8		0.5		26.9		67.5		622.7
Balance at December 31, 2020	$	641.8	$	(3.2)	$	144.7	$	(355.3)	$	428.0
Net Change	(534.7)		0.8		10.5		59.8		(463.6)
Balance at December 31, 2021	$	107.1	$	(2.4)	$	155.2	$	(295.5)	$	(35.6)

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM. Refer to Note 4, “Securities” for further information.

Components of Changes in Accumulated Other Comprehensive Income (Loss)

FOR THE YEAR ENDED DECEMBER 31,	2021						2020						2019
(In Millions)	BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX		BEFORE TAX		TAX EFFECT		AFTER TAX
Unrealized Gains (Losses) on Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities	$	(685.0)	$	177.5	$	(507.5)	$	706.8	$	(179.3)	$	527.5	$	306.1	$	(78.0)	$	228.1
Reclassification Adjustments for Losses (Gains) Included in Net Income:
Interest Income on Debt Securities(1)	(36.6)		9.2		(27.4)		—		—		—		—		—		—
Net Losses on Debt Securities(2)	0.3		(0.1)		0.2		0.4		(0.1)		0.3		1.1		(0.3)		0.8
Net Change	$	(721.3)	$	186.6	$	(534.7)	$	707.2	$	(179.4)	$	527.8	$	307.2	$	(78.3)	$	228.9
Unrealized (Losses) Gains on Cash Flow Hedges
Foreign Exchange Contracts	$	5.6	$	(1.4)	$	4.2	$	28.9	$	(7.3)	$	21.6	$	14.9	$	(3.7)	$	11.2
Interest Rate Contracts	—		—		—		—		—		—		1.5		(0.3)		1.2
Reclassification Adjustment for (Gains) Losses Included in Net Income(3)	(4.5)		1.1		(3.4)		(28.1)		7.0		(21.1)		(26.7)		6.6		(20.1)
Net Change	$	1.1	$	(0.3)	$	0.8	$	0.8	$	(0.3)	$	0.5	$	(10.3)	$	2.6	$	(7.7)
Foreign Currency Adjustments
Foreign Currency Translation Adjustments	$	(133.8)	$	4.1	$	(129.7)	$	169.1	$	(8.3)	$	160.8	$	6.4	$	(1.6)	$	4.8
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains	0.6		(0.1)		0.5		2.1		(0.5)		1.6		(0.5)		0.1		(0.4)
Net Investment Hedge Gains (Losses)	186.6		(46.9)		139.7		(178.7)		43.2		(135.5)		59.7		(14.2)		45.5
Net Change	$	53.4	$	(42.9)	$	10.5	$	(7.5)	$	34.4	$	26.9	$	65.6	$	(15.7)	$	49.9
Pension and Other Postretirement Benefit Adjustments
Net Actuarial (Losses) Gains	$	7.9	$	0.2	$	8.1	$	47.4	$	(12.3)	$	35.1	$	(36.8)	$	7.9	$	(28.9)
Reclassification Adjustment for Losses (Gains) Included in Net Income(4)
Amortization of Net Actuarial Loss	41.4		(10.3)		31.1		42.2		(10.4)		31.8		22.4		(5.4)		17.0
Amortization of Prior Service Cost (Credit)	(1.0)		0.3		(0.7)		(0.1)		—		(0.1)		(0.2)		—		(0.2)
Settlement Loss(5)	28.3		(7.0)		21.3		0.8		(0.1)		0.7		—		—		—
Net Change	$	76.6	$	(16.8)	$	59.8	$	90.3	$	(22.8)	$	67.5	$	(14.6)	$	2.5	$	(12.1)
Total Net Change	$	(590.2)	$	126.6	$	(463.6)	$	790.8	$	(168.1)	$	622.7	$	347.9	$	(88.9)	$	259.0

(1) The before-tax reclassification adjustment out of AOCI is related to the amortization of unrealized gains (losses) on AFS debt securities that were transferred to HTM debt securities during the second quarter of 2021. Refer to Note 4, “Securities” for further information.

(2) The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on AFS debt securities is recorded in Investment Security Losses, net on the consolidated statements of income.

(3) See Note 27, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges.

(4) The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense on the consolidated statements of income.

(5) This line includes the before-tax $27.9 million U.S. Qualified Plan pension settlement charge in 2021. Refer to Note 23, “Employee Benefits” for further information.

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Net Income per Common Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Computations of Net Income per Common Share

The computations of net income per common share are presented in the following table.

TABLE 95: NET INCOME PER COMMON SHARE

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions Except Per Common Share Information)	2021		2020		2019
BASIC NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Less: Dividends on Preferred Stock	41.8		56.2		46.4
Net Income Applicable to Common Stock	1,503.5		1,153.1		1,445.8
Less: Earnings Allocated to Participating Securities	12.9		12.1		16.9
Earnings Allocated to Common Shares Outstanding	$	1,490.6	$	1,141.0	$	1,428.9
Basic Net Income Per Common Share	7.16		5.48		6.66
DILUTED NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding	208,075,522		208,319,412		214,525,547
Plus Dilutive Effect of Share-based Compensation	823,708		688,574		1,075,602
Average Common and Potential Common Shares	208,899,230		209,007,986		215,601,149
Earnings Allocated to Common and Potential Common Shares	$	1,490.6	$	1,141.1	$	1,428.9
Diluted Net Income Per Common Share	7.14		5.46		6.63

Note: For the years ended December 31, 2021, 2020, and 2019, there were no common stock equivalents excluded in the computation of diluted net income per share.

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Revenue from Contracts with Clients Revenue from Contracts with Clients (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Disaggregation

The following table presents revenues disaggregated by major revenue source.

TABLE 96: REVENUE DISAGGREGATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	1,917.5	$	1,674.3	$	1,636.4
Investment Management and Advisory	2,140.0		2,029.3		1,930.6
Securities Lending	76.9		88.3		87.7
Other	226.7		203.1		197.4
Total Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Other Noninterest Income
Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Treasury Management Fees	44.3		45.4		44.5
Security Commissions and Trading Income	140.2		133.2		103.6
Other Operating Income	243.9		194.0		145.5
Investment Security Losses, net	(0.3)		(0.4)		(1.4)
Total Other Noninterest Income	$	720.7	$	662.6	$	543.1
Total Noninterest Income	$	5,081.8	$	4,657.6	$	4,395.2

Client Receivables

The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2021 and 2020.

TABLE 97: CLIENT RECEIVABLES

	DECEMBER 31,
(In Millions)	2021		2020
Trust Fees Receivable, net(1)	$	925.2	$	819.3
Other	126.9		116.5
Total Client Receivables	$	1,052.1	$	935.8

(1) Trust Fees Receivable is net of a $10.9 million and $7.2 million fee receivable allowance as of December 31, 2021 and 2020, respectively.

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Net Interest Income (Tables)

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

Components of Net Interest Income

The components of Net Interest Income were as follows:

TABLE 98: NET INTEREST INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Interest Income
Loans and Leases	$	713.5	$	774.6	$	1,153.4
Securities – Taxable	667.6		812.4		1,070.7
– Non-Taxable(1)	1.5		1.4		3.8
Interest-Bearing Due from and Deposits with Banks(2)	9.1		22.4		72.4
Federal Reserve and Other Central Bank Deposits and Other	14.8		32.7		199.6
Total Interest Income	$	1,406.5	$	1,643.5	$	2,499.9
Interest Expense
Deposits(3)	$	(61.3)	$	48.4	$	488.9
Federal Funds Purchased	(0.4)		2.2		25.9
Securities Sold under Agreements to Repurchase	0.2		1.0		6.4
Other Borrowings	14.2		45.3		181.7
Senior Notes	48.3		72.7		72.6
Long-Term Debt	21.1		26.5		38.3
Floating Rate Capital Debt	1.7		4.2		8.2
Total Interest Expense	$	23.8	$	200.3	$	822.0
Net Interest Income	$	1,382.7	$	1,443.2	$	1,677.9

(1) Non-Taxable Securities represent securities that are exempt from U.S. federal income taxes.

(2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.

(3) Deposits were impacted by low and negative interest rates from Non-U.S. Offices Interest-Bearing Deposits, which was approximately 68% of total Interest-Bearing Deposits for the year ended December 31, 2021.

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Other Operating Income (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Components of Other Operating Income

The components of Other Operating Income were as follows:

TABLE 99: OTHER OPERATING INCOME

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Loan Service Fees	$	66.6	$	52.5	$	48.0
Banking Service Fees	50.9		46.1		45.6
Other Income	126.4		95.4		51.9
Total Other Operating Income	$	243.9	$	194.0	$	145.5

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Other Operating Expense (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Summary of other operating expenses

The components of Other Operating Expense were as follows:

TABLE 100: OTHER OPERATING EXPENSE

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Business Promotion	$	65.5	$	59.2	$	104.2
Staff Related	33.9		29.4		42.8
FDIC Insurance Premiums	14.6		11.8		9.9
Other Intangibles Amortization	14.8		16.9		16.6
Other Expenses	170.3		229.4		156.3
Total Other Operating Expense	$	299.1	$	346.7	$	329.8

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Reconciliation of Total Provision for Income Taxes with Amounts Computed at Federal Tax Rate of 35%

The following table reconciles the statutory federal tax rate with the effective tax rate for the periods presented below.

TABLE 101: INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
	2021		2020		2019
Statutory Federal Tax Rate	21.0	%	21.0	%	21.0	%
Tax Exempt Income	(0.6)		(0.9)		(0.6)
Foreign Tax Rate Differential	0.1		0.7		0.2
Excess Tax Benefit Related to Share-Based Compensation	(0.4)		(0.6)		(0.9)
Tax Credits	(1.6)		(1.7)		(1.0)
Reversal of Tax Benefits Previously Recognized through Earnings	—		1.6		—
State Taxes, net	3.4		3.2		2.8
Valuation Allowance	0.6		1.6		1.5
Other	0.6		0.8		0.2
Effective Tax Rate	23.1	%	25.7	%	23.2	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows.

TABLE 102: UNRECOGNIZED TAX BENEFITS

(In Millions)	2021		2020		2019
Balance at January 1	$	22.4	$	25.3	$	21.9
Additions for Tax Positions Taken in the Current Year	1.2		0.9		0.9
Additions for Tax Positions Taken in Prior Years	4.2		0.4		4.0
Reductions for Tax Positions Taken in Prior Years	(2.5)		(4.2)		(1.5)
Reductions Resulting from Expiration of Statutes	—		—		—
Balance at December 31	$	25.3	$	22.4	$	25.3

Components of Consolidated Provision for Income Taxes

The components of the consolidated Provision for Income Taxes for each of the three years ended December 31 are as follows.

TABLE 103: PROVISION FOR INCOME TAXES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Current Tax Provision:
Federal	$	241.5	$	203.0	$	216.4
State	74.0		57.2		50.7
Non-U.S.	147.3		141.7		150.5
Total	$	462.8	$	401.9	$	417.6
Deferred Tax Provision:
Federal	$	(11.7)	$	8.8	$	16.5
State	12.0		5.4		16.5
Non-U.S.	1.7		2.2		1.3
Total	$	2.0	$	16.4	$	34.3
Provision for Income Taxes	$	464.8	$	418.3	$	451.9

Tax Charges (Benefits) Recorded Directly to Stockholders' Equity

In addition to the amounts shown above, tax charges and benefits have been recorded directly to Stockholders’ Equity for the following.

TABLE 104: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Tax Effect of Other Comprehensive Income	$	(126.6)	$	168.1	$	88.9

Deferred Tax Liabilities and Assets

Deferred tax assets and liabilities have been computed as follows.

TABLE 105: NET DEFERRED TAX LIABILITIES

	DECEMBER 31,
(In Millions)	2021		2020
Deferred Tax Liabilities:
Lease Financing	$	7.0	$	9.0
Software Development	271.8		268.1
Depreciation and Amortization	181.3		147.0
Unrealized Gains on Securities, net	82.8		247.6
Compensation and Benefits	65.6		43.8
State Taxes, net	76.3		67.4
Other Liabilities	23.3		18.7
Gross Deferred Tax Liabilities	708.1		801.6
Deferred Tax Assets:
Allowance for Credit Losses	38.6		54.5
Tax Credit and Loss Carryforwards	68.2		55.2
Other Assets	85.4		38.4
Gross Deferred Tax Assets	192.2		148.1
Valuation Reserve	(68.2)		(55.2)
Deferred Tax Assets, net of Valuation Reserve	124.0		92.9
Net Deferred Tax Liabilities	$	584.1	$	708.7

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Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Plan Status of U.S. Plan, Non-U.S. Plans and Supplemental Plan

The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2021, 2020, and 2019. Prior service credits are being amortized on a straight-line basis over 11 years for the U.S. Qualified Plan and prior service costs are being amortized on a straight-line basis over 10 years for the U.S. Non-Qualified Plan. Prior service credits will be amortized in full during the first half of 2022 for the U.S. Qualified Plan and prior service costs were amortized in full as of December 31, 2021 for the U.S. Non-Qualified Plan.

TABLE 106: EMPLOYEE BENEFIT PLAN STATUS

	U.S. QUALIFIED PLAN (1)						NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021			2020			2021			2020			2021			2020
Accumulated Benefit Obligation	$	1,246.6		$	1,312.9		$	204.5		$	228.5		$	125.5		$	139.8
Projected Benefit Obligation	$	1,401.3		$	1,470.6		$	210.1		$	236.1		$	147.7		$	162.3
Plan Assets at Fair Value	1,708.9			1,793.7			198.7			211.5			—			—
Funded Status at December 31	$	307.6		$	323.1		$	(11.4)		$	(24.6)		$	(147.7)		$	(162.3)
Weighted-Average Assumptions:
Discount Rates	3.03		%	2.75		%	1.34		%	0.93		%	2.80		%	2.45		%
Rate of Increase in Compensation Level	4.97			4.97			1.50			1.50			4.97			4.97
Expected Long-Term Rate of Return on Assets	5.25			5.25			1.79			1.28			N/A			N/A

(1) Discount rates of 3.05% and 3.06% and expected long-term rates of return on assets of 5.25% and 5.00% were utilized at the interim remeasurement dates as of June 30, 2021 and September 30, 2021, respectively.

The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2021 and 2020, the net periodic postretirement benefit cost of the plan for 2021 and 2020, and the change in the accumulated postretirement benefit obligation during 2021 and 2020.

TABLE 113: POSTRETIREMENT HEALTH CARE PLAN STATUS

	DECEMBER 31,
(In Millions)	2021		2020
Accumulated Postretirement Benefit Obligation at Measurement Date:
Retirees and Dependents	$	8.7	$	13.2
Actives Eligible for Benefits	1.5		2.5
Net Postretirement Benefit Obligation	$	10.2	$	15.7

Amount Included in Accumulated Other Comprehensive Income

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Net Actuarial Loss	$	273.8	$	332.4	$	40.4	$	49.0	$	86.6	$	96.3
Prior Service (Credit) Cost	(0.1)		(0.6)		0.6		2.2		—		0.1
Gross Amount in Accumulated Other Comprehensive Income	273.7		331.8		41.0		51.2		86.6		96.4
Income Tax Effect	68.7		82.1		5.2		6.4		21.7		23.9
Net Amount in Accumulated Other Comprehensive Income	$	205.0	$	249.7	$	35.8	$	44.8	$	64.9	$	72.5

	DECEMBER 31,
(In Millions)	2021		2020
Net Actuarial (Gain) Loss	$	(5.3)	$	(4.9)
Prior Service (Credit) Cost	(11.5)		(12.4)
Gross Amount in Accumulated Other Comprehensive Income	(16.8)		(17.3)
Income Tax Effect	(4.2)		(4.3)
Net Amount in Accumulated Other Comprehensive Income	$	(12.6)	$	(13.0)

Components of Company's Net Periodic Benefit Cost

	U.S. QUALIFIED PLAN (1)									NON-U.S. PENSION PLANS						U.S. NON-QUALIFIED PLAN
($ In Millions)	2021					2020		2019		2021		2020		2019		2021		2020		2019
Service Cost	$	52.3				$	47.4	$	41.6	$	2.2	$	1.9	$	2.0	$	5.3	$	4.6	$	4.1
Interest Cost	40.4					43.3		47.2		2.2		2.9		3.9		3.7		4.8		5.8
Expected Return on Plan Assets	(79.0)					(76.8)		(86.9)		(3.2)		(3.1)		(4.4)		—		—		—
Amortization:
Net Actuarial Loss	32.4					35.0		17.2		1.0		0.8		0.6		8.2		7.0		5.6
Prior Service (Credit) Cost	(0.4)					(0.4)		(0.4)		0.2		0.4		0.3		0.1		0.2		0.2
Net Periodic Pension Expense	$	45.7				$	48.5	$	18.7	$	2.4	$	2.9	$	2.4	$	17.3	$	16.6	$	15.7
Settlement Expense	27.9					—		—		0.4		0.8		—		—		—		—
Total Pension Expense	$	73.6				$	48.5	$	18.7	$	2.8	$	3.7	$	2.4	$	17.3	$	16.6	$	15.7
Weighted-Average Assumptions:
Discount Rates	2.75		%	/ 3.05	%	3.37%		4.47%		0.93%		1.40%		2.16%		2.45%		3.37%		4.47%
	/ 3.06		%	/ 3.03	%
Rate of Increase in Compensation Level				4.97		4.97		4.39		1.50		1.50		1.75		4.97		4.97		4.39
Expected Long-Term Rate of Return on Assets	5.25			/  5.00		5.25		6.00		1.28		1.72		2.39		N/A		N/A		N/A

(1) In determining the pension expense for the U.S. Qualified Plan for 2021, Northern Trust utilized a discount rate of 2.75% as of December 31, 2020, 3.05% as of June 30, 2021, 3.06% as of September 30, 2021, and 3.03% as of December 31, 2021 and an expected long-term rate of return of 5.25% as of both December 31, 2020 and June 30, 2021, and 5.00% as of September 30, 2021.

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Service Cost	$	—	$	—	$	—
Interest Cost	0.3		0.7		1.2
Expected Return on Plan Assets	—		—		—
Amortization
Net Actuarial (Gain)	(0.2)		(0.6)		(1.1)
Prior Service (Credit) Cost	(0.9)		(0.3)		—
Net Periodic Postretirement Expense	$	(0.8)	$	(0.2)	$	0.1

Change in Benefit Obligation, Postretirement Health Care, and in Accumulated Postretirement Benefit Obligation

	U.S. QUALIFIED PLAN				NON-U.S. PENSION PLANS				U.S. NON-QUALIFIED PLAN
(In Millions)	2021		2020		2021		2020		2021		2020
Beginning Balance	$	1,470.6	$	1,323.4	$	236.1	$	211.1	$	162.3	$	149.2
Service Cost	52.3		47.4		2.2		1.9		5.3		4.6
Interest Cost	40.4		43.3		2.2		2.9		3.7		4.8
Employee Contributions	—		—		0.6		0.6		—		—
Plan Amendment	—		—		(1.4)		(0.5)		—		—
Actuarial Loss (Gain)	(19.1)		136.5		(10.4)		19.1		(2.0)		20.4
Settlement	(132.1)		—		(9.4)		(5.4)		—		—
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)		(21.6)		(16.7)
Foreign Exchange Rate Changes	—		—		(4.3)		10.5		—		—
Ending Balance	$	1,401.3	$	1,470.6	$	210.1	$	236.1	$	147.7	$	162.3

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Beginning Balance	$	15.7	$	28.8
Service Cost	—		—
Interest Cost	0.3		0.7
Plan Amendment	—		(12.7)
Actuarial (Gain)	(3.3)		(0.1)
Net Claims Paid	(2.5)		(1.0)
Ending Balance	$	10.2	$	15.7

Estimated Future Benefit Payments

(In Millions)	U.S. QUALIFIED PLAN		NON-U.S.PENSION PLANS		U.S. NON-QUALIFIED PLAN
2022	$	85.6	$	4.4	$	20.0
2023	94.2		4.6		18.3
2024	95.1		4.7		11.7
2025	99.0		4.8		12.3
2026	97.8		5.6		13.3
2027-2031	515.6		34.8		63.9

(In Millions)	TOTAL POSTRETIREMENT MEDICAL BENEFITS
2022	$	1.5
2023	1.4
2024	1.3
2025	1.2
2026	1.1
2027-2031	4.3

Change in Plan Assets

	U.S. QUALIFIED PLAN				NON-U.S PENSION PLANS
(In Millions)	2021		2020		2021		2020
Fair Value of Assets at Beginning of Period	$	1,793.7	$	1,601.2	$	211.5	$	190.1
Actual Return on Assets(1)	58.1		272.5		(0.8)		17.9
Employer Contributions	—		—		4.5		5.0
Employee Contributions	—		—		0.6		0.6
Settlement	(132.1)		—		(9.4)		(5.4)
Benefits Paid	(10.8)		(80.0)		(5.5)		(4.1)
Foreign Exchange Rate Changes	—		—		(2.2)		7.4
Fair Value of Assets at End of Period	$	1,708.9	$	1,793.7	$	198.7	$	211.5

(1) The 2021 actual return on assets for the U.S. Qualified Plan includes a reimbursement of $0.1 million of historical investment expenses paid from the pension trust.

Fair Values of U.S. Pension Plan Assets by Major Asset Category, and their Level within Fair Value Hierarchy

The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2021 and 2020.

TABLE 112: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS

	DECEMBER 31, 2021
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	17.5	$	—	$	—	$	17.5
Foreign Common Stock	0.3		—		—		0.3
Domestic Corporate Bonds	—		341.7		—		341.7
Foreign Corporate Bonds	—		60.9		—		60.9
U.S. Government Obligations	—		103.9		—		103.9
Non-U.S. Government Obligations	—		20.0		—		20.0
Domestic Municipal and Provincial Bonds	—		21.0		—		21.0
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		837.2		—		837.2
Mutual Funds	108.9		—		—		108.9
Cash and Other	46.7		—		—		46.7
Total Assets at Fair Value in the Fair Value Hierarchy	$	173.4	$	1,385.0	$	—	$	1,558.4
Assets Valued at NAV per share
Northern Trust Private Equity Funds							34.5
Northern Trust Hedge Fund							36.7
Real Estate Funds							79.3
Total Assets at Fair Value							$	1,708.9

	DECEMBER 31, 2020
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Domestic Common Stock	$	13.5	$	—	$	—	$	13.5
Domestic Corporate Bonds	—		314.4		—		314.4
Foreign Corporate Bonds	—		43.6		—		43.6
U.S. Government Obligations	2.9		113.1		—		116.0
Non-U.S. Government Obligations	—		22.9		—		22.9
Domestic Municipal and Provincial Bonds	—		22.4		—		22.4
Foreign Municipal and Provincial Bonds	—		0.3		—		0.3
Collective Trust Funds	—		985.5		—		985.5
Mutual Funds	167.0		—		—		167.0
Cash and Other	7.5		—		—		7.5
Total Assets at Fair Value in the Fair Value Hierarchy	$	190.9	$	1,502.2	$	—	$	1,693.1
Assets Valued at NAV per share
Northern Trust Private Equity Funds							20.3
Northern Trust Hedge Fund							34.2
Real Estate Funds							46.1
Total Assets at Fair Value							$	1,793.7

Changes in Level 3 U.S. Pension Plan Assets

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Share-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts

Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented.

TABLE 118: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Restricted Stock Unit Awards	$	78.2	$	78.1	$	81.4
Stock Options	—		0.5		1.4
Performance Stock Units	17.3		12.8		25.1
Total Share-Based Compensation Expense	$	95.5	$	91.4	$	107.9
Tax Benefits Recognized	$	24.0	$	22.9	$	26.7

Information Pertaining to Stock Options Granted, Vested and Exercised

The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2021, 2020, and 2019.

TABLE 119: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions, Except Per Share Information)	2021		2020		2019
Grant-Date Fair Value of Stock Options Vested	$	2.2	$	4.5	$	6.6
Stock Options Exercised
Intrinsic Value as of Exercise Date	41.3		13.6		35.4
Cash Received	53.8		19.5		44.0
Tax Deduction Benefits Realized	41.3		13.4		35.2

Summary of Status of Stock Options

A summary of the status of stock options at December 31, 2021, and changes during the year then ended, are presented in the following table.

TABLE 121: STATUS OF STOCK OPTIONS AND CHANGES

($ In Millions Except Per Share Information)	SHARES	WEIGHTED AVERAGE EXERCISE PRICE PER SHARE		WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)	AGGREGATE INTRINSIC VALUE
Options Outstanding, December 31, 2020	1,349,925	$	66.87
Granted	—	—
Exercised	(837,757)	64.16
Forfeited, Expired or Cancelled	(2,280)	52.64
Options Outstanding, December 31, 2021	509,888	$	71.39	3.4	$	24.6
Options Exercisable, December 31, 2021	509,888	$	71.39	3.4	$	24.6

Unvested Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Changes in Nonvested Stock

The following is a summary of changes in nonvested stock options for the year ended December 31, 2021.

TABLE 120: CHANGES IN NONVESTED STOCK OPTIONS

NONVESTED OPTIONS	SHARES	WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE PER SHARE
Nonvested at December 31, 2020	114,829	$	19.18
Granted	—	—
Vested	(114,829)	19.18
Forfeited or Cancelled	—	—
Nonvested at December 31, 2021	—	$	—

Restricted Stock Unit Awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Status of Outstanding Restricted Stock Unit Awards

A summary of the status of outstanding restricted stock unit awards at December 31, 2021, and changes during the year then ended, is presented in the following table.

TABLE 122: OUTSTANDING RESTRICTED STOCK UNIT AWARDS

($ In Millions)	NUMBER	AGGREGATE INTRINSIC VALUE
Restricted Stock Unit Awards Outstanding, December 31, 2020	2,145,651	$	199.8
Granted	846,433
Distributed	(944,393)
Forfeited	(46,175)
Restricted Stock Unit Awards Outstanding, December 31, 2021	2,001,516	$	239.4
Units Convertible, December 31, 2021	19,526	$	2.3

Changes in Nonvested Restricted Stock Unit Awards

The following is a summary of nonvested restricted stock unit awards at December 31, 2021, and changes during the year then ended.

TABLE 123: NONVESTED RESTRICTED STOCK UNIT AWARDS

NONVESTED RESTRICTED STOCK UNITS	NUMBER	WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT		WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS)
Nonvested at December 31, 2020	2,125,881	$	95.61	2.1
Granted	846,433	99.31
Vested	(944,149)	94.70
Forfeited	(46,175)	98.31
Nonvested at December 31, 2021	1,981,990	$	97.56	2.3

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Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Summary of Off-Balance Sheet Financial Instruments

The following table provides details of Northern Trust's off-balance sheet financial instruments as of December 31, 2021 and 2020.

TABLE 124: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

	DECEMBER 31,
	2021						2020
($ In Millions)	ONE YEAR AND LESS		OVER ONE YEAR		TOTAL		ONE YEAR AND LESS		OVER ONE YEAR		TOTAL
Undrawn Commitments(1)	$	9,567.0	$	17,855.2	$	27,422.2	$	11,260.5	$	17,678.0	$	28,938.5
Standby Letters of Credit and Financial Guarantees(2)(3)	3,485.6		553.9		4,039.5		1,228.1		763.5		1,991.6
Commercial Letters of Credit	68.5		1.1		69.6		54.6		—		54.6
Custody Securities Lent with Indemnification	170,445.3		—		170,445.3		157,478.0		—		157,478.0
Total Off-Balance Sheet Financial Instruments	$	183,566.4	$	18,410.2	$	201,976.6	$	170,021.2	$	18,441.5	$	188,462.7

(1) These amounts exclude $366.6 million and $384.7 million of commitments participated to others at December 31, 2021 and 2020, respectively.

(2) These amounts include $30.5 million and $24.2 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2021 and 2020, respectively.

(3) This amount includes a $2,309.6 million guarantee to the Fixed Income Clearing Corporation (FICC) under the sponsored member program, without taking into consideration the related collateral, as of December 31, 2021. As of December 31, 2020, there was no guarantee to the FICC as Northern Trust became a sponsored member during the third quarter of 2021.

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments

The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2021 and 2020.

TABLE 125: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

	DECEMBER 31, 2021						DECEMBER 31, 2020
			FAIR VALUE						FAIR VALUE
(In Millions)	NOTIONAL VALUE		ASSET(1)		LIABILITY(2)		NOTIONAL VALUE		ASSET(1)		LIABILITY(2)
Derivatives Designated as Hedging under GAAP
Interest Rate Contracts
Fair Value Hedges	$	4,430.5	$	7.6	$	8.7	$	4,717.6	$	8.2	$	10.2
Cash Flow Hedges	—		—		—		50.0		0.1		—
Foreign Exchange Contracts
Cash Flow Hedges	3,697.9		61.8		12.6		6,554.4		15.4		104.0
Net Investment Hedges	4,161.8		183.3		12.3		3,480.3		0.1		207.7
Total Derivatives Designated as Hedging under GAAP	$	12,290.2	$	252.7	$	33.6	$	14,802.3	$	23.8	$	321.9
Derivatives Not Designated as Hedging under GAAP
Non-Designated Risk Management Derivatives
Foreign Exchange Contracts	$	109.9	$	0.2	$	0.6	$	67.7	$	0.1	$	0.1
Other Financial Derivatives(3)	738.5		—		37.5		745.4		—		35.3
Total Non-Designated Risk Management Derivatives	$	848.4	$	0.2	$	38.1	$	813.1	$	0.1	$	35.4
Client-Related and Trading Derivatives
Foreign Exchange Contracts	$	315,532.3	$	1,962.1	$	1,973.3	$	320,563.4	$	4,245.1	$	4,410.7
Interest Rate Contracts	11,570.1		132.4		90.2		10,573.3		289.2		114.8
Total Client-Related and Trading Derivatives	$	327,102.4	$	2,094.5	$	2,063.5	$	331,136.7	$	4,534.3	$	4,525.5
Total Derivatives Not Designated as Hedging under GAAP	$	327,950.8	$	2,094.7	$	2,101.6	$	331,949.8	$	4,534.4	$	4,560.9
Total Gross Derivatives	$	340,241.0	$	2,347.4	$	2,135.2	$	346,752.1	$	4,558.2	$	4,882.8
Less: Netting(4)			1,533.8		1,283.5				3,507.8		2,817.1
Total Derivative Financial Instruments			$	813.6	$	851.7			$	1,050.4	$	2,065.7

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets.

(2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets.

(3) This line includes swaps related to sales of certain Visa Class B common shares.

(4) See further detail in Note 28, "Offsetting of Assets and Liabilities."

Gains/Losses of Derivative Financial Instruments

The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2021, 2020 and 2019.

TABLE 126: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME

(in Millions)	INTEREST INCOME						INTEREST EXPENSE						OTHER OPERATING INCOME
For the Year Ended December 31,	2021		2020		2019		2021		2020		2019		2021		2020		2019
Total amounts on the consolidated statements of income	$	1,406.5	$	1,643.5	$	2,499.9	$	23.8	$	200.3	$	822.0	$	243.9	$	194.0	$	145.5
Gains (Losses) on fair value hedges recognized on
Interest Rate Contracts
Recognized on derivatives	39.1		(66.3)		(95.9)		(161.6)		100.2		99.4		—		—		—
Recognized on hedged items	(39.1)		66.3		95.9		161.6		(100.2)		(99.4)		—		—		—
Amounts related to interest settlements on derivatives	(16.2)		(13.2)		21.2		57.1		29.9		5.2		—		—		—
Total gains (losses) recognized on fair value hedges	$	(16.2)	$	(13.2)	$	21.2	$	57.1	$	29.9	$	5.2	$	—	$	—	$	—
Gains (Losses) on cash flow hedges recognized on
Foreign Exchange Contracts
Net gains (losses) reclassified from AOCI to net income	10.5		27.4		26.4		—		—		—		(6.0)		0.2		0.8
Interest Rate Contracts
Net gains (losses) reclassified from AOCI to net income	—		0.5		(0.5)		—		—		—		—		—		—
Total gains (losses) reclassified from AOCI to net income on cash flow hedges	$	10.5	$	27.9	$	25.9	$	—	$	—	$	—	$	(6.0)	$	0.2	$	0.8

The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2021 and 2020.

TABLE 127: HEDGED ITEMS IN FAIR VALUE HEDGES

	DECEMBER 31, 2021				DECEMBER 31, 2020
(In Millions)	CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(1)		CARRYING VALUE OF THE HEDGED ITEMS		CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(2)
Available for Sale Debt Securities(3)	$	1,677.4	$	11.1	$	2,075.1	$	48.8
Senior Notes and Long-Term Subordinated Debt	2,745.6		59.5		2,745.1		221.5
Total	$	4,423.0	$	70.6	$	4,820.2	$	270.3

(1) The cumulative hedge accounting basis adjustment includes $9.6 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2021. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2021.

(2) The cumulative hedge accounting basis adjustment includes $10.4 million related to discontinued hedging relationships of AFS debt securities as of December 31, 2020. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2020.

(3) Carrying value represents amortized cost.

Gains/Losses of Derivative Financial Instruments Not Designated as Hedging

The following table provides the location and amount of gains and losses recorded on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 for derivative instruments not designated as hedges under GAAP.

TABLE 128: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP

(In Millions)	DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME	AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME
		2021		2020		2019
Non-designated risk management derivatives
Foreign Exchange Contracts	Other Operating Income	$	1.2	$	6.4	$	(1.6)
Other Financial Derivatives(1)	Other Operating Income	(21.3)		(18.3)		(20.0)
Gains (Losses) from non-designated risk management derivatives		$	(20.1)	$	(11.9)	$	(21.6)
Client-related and trading derivatives
Foreign Exchange Contracts	Foreign Exchange Trading Income	$	292.6	$	290.4	$	250.9
Interest Rate Contracts	Security Commissions and Trading Income	15.7		22.4		12.9
Gains (Losses) from client-related and trading derivatives		$	308.3	$	312.8	$	263.8
Total gains (losses) from derivatives not designated as hedging under GAAP		$	288.2	$	300.9	$	242.2

(1) This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts.

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Offsetting of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Securities Purchased Under Agreements to Resell and Derivative Assets in the Consolidated Balance Sheet

The following table provides information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 129: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts Over the Counter (OTC)	$	1,762.7	$	1,530.7	$	232.0	$	2.8	$	229.2
Interest Rate Swaps OTC	140.0		3.1		136.9		—		136.9
Total Derivatives Subject to a Master Netting Arrangement	1,902.7		1,533.8		368.9		2.8		366.1
Total Derivatives Not Subject to a Master Netting Arrangement	444.7		—		444.7		—		444.7
Total Derivatives	2,347.4		1,533.8		813.6		2.8		810.8
Securities Purchased under Agreements to Resell(2)	$	2,078.9	$	1,392.5	$	686.4	$	686.4	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Assets(1)
Foreign Exchange Contracts OTC	$	3,799.7	$	3,505.3	$	294.4	$	0.9	$	293.5
Interest Rate Swaps OTC	295.9		2.5		293.4		—		293.4
Interest Rate Swaps Exchange Cleared	1.6		—		1.6		—		1.6
Total Derivatives Subject to a Master Netting Arrangement	4,097.2		3,507.8		589.4		0.9		588.5
Total Derivatives Not Subject to a Master Netting Arrangement	461.0		—		461.0		—		461.0
Total Derivatives	4,558.2		3,507.8		1,050.4		0.9		1,049.5
Securities Purchased under Agreements to Resell	$	1,596.5	$	—	$	1,596.5	$	1,596.5	$	—

(1) Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.8 billion and $7.3 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Purchased under Agreements to Resell primarily relates to our involvement in FICC.

(3) Including cash collateral received from counterparties.

(4) Including financial assets accepted as collateral which are received from counterparties.

(5) Northern Trust did not possess any cash collateral that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

Securities Sold Under Agreements to Repurchase and Derivative Liabilities in the Consolidated Balance Sheet

The following table provides information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheets as of December 31, 2021 and 2020.

TABLE 130: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

	DECEMBER 31, 2021
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	1,430.1	$	1,234.5	$	195.6	$	—	$	195.6
Interest Rate Swaps OTC	98.7		48.1		50.6		—		50.6
Interest Rate Swaps Exchange Cleared	0.2		—		0.2		—		0.2
Other Financial Derivatives	37.5		0.9		36.6		—		36.6
Total Derivatives Subject to a Master Netting Arrangement	1,566.5		1,283.5		283.0		—		283.0
Total Derivatives Not Subject to a Master Netting Arrangement	568.7		—		568.7		—		568.7
Total Derivatives	2,135.2		1,283.5		851.7		—		851.7
Securities Sold under Agreements to Repurchase(2)	$	1,924.4	$	1,392.5	$	531.9	$	531.9	$	—

	DECEMBER 31, 2020
(In Millions)	GROSS RECOGNIZED LIABILITIES		GROSS AMOUNTS OFFSET IN THE BALANCE SHEET(3)		NET AMOUNTS PRESENTED IN THE BALANCE SHEET		GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET(4)		NET AMOUNT(5)
Derivative Liabilities(1)
Foreign Exchange Contracts OTC	$	3,577.7	$	2,718.6	$	859.1	$	0.5	$	858.6
Interest Rate Swaps OTC	125.0		98.5		26.5		—		26.5
Other Financial Derivatives	35.3		—		35.3		—		35.3
Total Derivatives Subject to a Master Netting Arrangement	3,738.0		2,817.1		920.9		0.5		920.4
Total Derivatives Not Subject to a Master Netting Arrangement	1,144.8		—		1,144.8		—		1,144.8
Total Derivatives	4,882.8		2,817.1		2,065.7		0.5		2,065.2
Securities Sold under Agreements to Repurchase	$	39.8	$	—	$	39.8	$	39.8	$	—

(1) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.3 billion and $3.5 billion as of December 31, 2021 and 2020, respectively.

(2) Offsetting of Securities Sold under Agreements to Repurchase primarily relates to our involvement in FICC.

(3) Including cash collateral deposited with counterparties.

(4) Including financial assets accepted as collateral which are deposited with counterparties.

(5) Northern Trust did not place any cash collateral with counterparties that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2021 and 2020.

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Pledged and Restricted Assets (Tables)

12 Months Ended

Dec. 31, 2021

Financial Instruments Owned and Pledged as Collateral [Abstract]

Type of Pledged Assets

The following table presents Northern Trust’s pledged assets.

TABLE 131: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2021		2020
Securities
Obligations of States and Political Subdivisions	$	3.7	$	2.9
Government Sponsored Agency and Other Securities	35.6		32.5
Loans	15.3		12.1
Total Pledged Assets	$	54.6	$	47.5

The following table presents the AFS debt securities pledged as collateral that are included in pledged assets.

TABLE 132: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020		DECEMBER 31, 2021		DECEMBER 31, 2020
Debt Securities
Available for Sale	$	524.1	$	33.0	$	17.6	$	27.1

Accepted Collateral

The following table presents the fair value of securities accepted as collateral.

TABLE 133: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Collateral that may be repledged or sold
Reverse repurchase agreements(1)	$	1,457.0	$	1,179.8
Derivative contracts	2.8		0.9
Collateral that may not be repledged or sold
Reverse repurchase agreements	650.0		500.0
Total Collateral Accepted	$	2,109.8	$	1,680.7

(1) The fair value of securities collateral that was repledged or sold totaled $1,419.0 million at December 31, 2021. There was no repledged or sold collateral as of December 31, 2020.

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Reporting Segments and Related Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Earnings Contribution of Northern Trust's Reporting Segments

The following tables reflect the earnings contribution and average assets of Northern Trust’s reporting segments for the years ended December 31, 2021, 2020, and 2019.

TABLE 134: CORPORATE & INSTITUTIONAL SERVICES RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,487.3		$	2,321.6		$	2,211.5
Foreign Exchange Trading Income	279.0			276.3			232.2
Other Noninterest Income	261.2			222.5			178.2
Total Noninterest Income	3,027.5			2,820.4			2,621.9
Net Interest Income(1)	637.2			665.5			918.7
Revenue(1)	3,664.7			3,485.9			3,540.6
Provision for Credit Losses	(33.8)			38.1			1.9
Noninterest Expense	2,863.0			2,752.7			2,605.5
Income before Income Taxes(1)	835.5			695.1			933.2
Provision for Income Taxes(1)	194.1			174.4			219.4
Net Income	$	641.4		$	520.7		$	713.8
Percentage of Consolidated Net Income	41		%	43		%	48		%
Average Assets	$	120,883.2		$	104,790.6		$	87,557.1

(1) Financial measures stated on an FTE basis.

TABLE 135: WEALTH MANAGEMENT RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	1,873.8		$	1,673.4		$	1,640.6
Foreign Exchange Trading Income	13.6			14.1			18.7
Other Noninterest Income	188.2			168.0			131.1
Total Noninterest Income	2,075.6			1,855.5			1,790.4
Net Interest Income(1)	781.1			812.1			792.0
Revenue(1)	2,856.7			2,667.6			2,582.4
Provision for Credit Losses	(47.7)			86.9			(16.4)
Noninterest Expense	1,651.1			1,559.7			1,531.6
Income before Income Taxes(1)	1,253.3			1,021.0			1,067.2
Provision for Income Taxes(1)	317.0			291.8			271.1
Net Income	$	936.3		$	729.2		$	796.1
Percentage of Consolidated Net Income	61		%	60		%	53		%
Average Assets	$	35,480.0		$	32,020.5		$	29,994.3

(1) Financial measures stated on an FTE basis.

TABLE 136: OTHER RESULTS OF OPERATIONS

	FOR THE YEAR ENDED DECEMBER 31,
($ In Millions)	2021			2020			2019
Noninterest Income	$	(21.3)		$	(18.3)		$	(17.1)
Net Interest Income(1)	—			—			—
Revenue(1)	(21.3)			(18.3)			(17.1)
Noninterest Expense	21.8			35.8			6.4
Income (Loss) before Income Taxes(1)	(43.1)			(54.1)			(23.5)
Provision (Benefit) for Income Taxes(1)	(10.7)			(13.5)			(5.8)
Net Income	$	(32.4)		$	(40.6)		$	(17.7)
Percentage of Consolidated Net Income	(2)		%	(3)		%	(1)		%
Average Assets	$	—		$	—		$	—

(1) Financial measures stated on an FTE basis.

TABLE 137: CONSOLIDATED FINANCIAL INFORMATION

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$	4,361.1	$	3,995.0	$	3,852.1
Foreign Exchange Trading Income	292.6		290.4		250.9
Other Noninterest Income	428.1		372.2		292.2
Total Noninterest Income	5,081.8		4,657.6		4,395.2
Net Interest Income(1)	1,418.3		1,477.6		1,710.7
Revenue(1)	6,500.1		6,135.2		6,105.9
Provision for Credit Losses	(81.5)		125.0		(14.5)
Noninterest Expense	4,535.9		4,348.2		4,143.5
Income before Income Taxes(1)	2,045.7		1,662.0		1,976.9
Provision for Income Taxes(1)	500.4		452.7		484.7
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Average Assets	$	156,363.2	$	136,811.1	$	117,551.4

(1) Financial measures stated on an FTE basis. The consolidated figures include $35.6 million, $34.4 million, and $32.8 million, of FTE adjustments for 2021, 2020, and 2019, respectively.

Distribution of Total Assets and Operating Performance

The following table summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral.

TABLE 138: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE

(In Millions)	TOTAL ASSETS		TOTAL REVENUE(1)		INCOME BEFORE INCOME TAXES		NET INCOME
2021
Non-U.S.	$	38,555.3	$	2,017.5	$	569.4	$	426.7
U.S.	145,334.5		4,447.0		1,440.7		1,118.6
Total	$	183,889.8	$	6,464.5	$	2,010.1	$	1,545.3
2020
Non-U.S.	$	38,393.8	$	1,737.6	$	404.0	$	302.6
U.S.	131,610.1		4,363.2		1,223.6		906.7
Total	$	170,003.9	$	6,100.8	$	1,627.6	$	1,209.3
2019
Non-U.S.	$	27,888.6	$	1,889.5	$	600.0	$	451.0
U.S.	108,939.8		4,183.6		1,344.1		1,041.2
Total	$	136,828.4	$	6,073.1	$	1,944.1	$	1,492.2

(1) Total revenue is comprised of net interest income and noninterest income.

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Capital Requirements Abstract [Abstract]

Risk-Based Capital Amounts and Ratios for Northern Trust on Consolidated Basis and for Bank

The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements.

TABLE 139: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS

	DECEMBER 31, 2021								DECEMBER 31, 2020
($ In Millions)	STANDARDIZED APPROACH				ADVANCED APPROACH				STANDARDIZED APPROACH				ADVANCED APPROACH
	BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO
Common Equity Tier 1 Capital
Northern Trust Corporation	$	10,277.1	11.9	%	$	10,277.1	13.2	%	$	9,962.2	12.8	%	$	9,962.2	13.4	%
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	5,578.7		6.5		4,964.5		6.5		4,994.4		6.5		4,717.1		6.5
Tier 1 Capital
Northern Trust Corporation	11,142.2		12.9		11,142.2		14.3		10,822.2		13.9		10,822.2		14.5
The Northern Trust Company	10,315.7		12.0		10,315.7		13.5		10,003.3		13.0		10,003.3		13.8
Minimum to qualify as well-capitalized:
Northern Trust Corporation	5,177.6		6.0		4,668.4		6.0		4,659.7		6.0		4,467.6		6.0
The Northern Trust Company	6,866.1		8.0		6,110.2		8.0		6,147.0		8.0		5,805.6		8.0
Total Capital
Northern Trust Corporation	12,126.8		14.1		11,942.0		15.3		12,085.7		15.6		11,825.8		15.9
The Northern Trust Company	11,158.4		13.0		10,973.7		14.4		11,123.1		14.5		10,863.3		15.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	8,629.3		10.0		7,780.7		10.0		7,766.2		10.0		7,446.0		10.0
The Northern Trust Company	8,582.6		10.0		7,637.8		10.0		7,683.7		10.0		7,257.0		10.0
Tier 1 Leverage
Northern Trust Corporation	11,142.2		6.9		11,142.2		6.9		10,822.2		7.6		10,822.2		7.6
The Northern Trust Company	10,315.7		6.4		10,315.7		6.4		10,003.3		7.0		10,003.3		7.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	8,019.5		5.0		8,019.5		5.0		7,105.0		5.0		7,105.0		5.0
Supplementary Leverage(1)
Northern Trust Corporation	N/A		N/A		11,142.2		8.2		N/A		N/A		10,822.2		8.6
The Northern Trust Company	N/A		N/A		10,315.7		7.6		N/A		N/A		10,003.3		7.7
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	N/A		N/A		4,081.7		3.0		N/A		N/A		3,883.4		3.0

(1) In November 2019, the Federal Reserve Board and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including the Corporation and the Bank, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020.

Further, on April 1, 2020, the Federal Reserve Board issued an interim final rule that requires bank holding companies, including the Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and expired on April 1, 2021.

On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve Board and investments in U.S. Treasury securities from their total leverage exposure. The Bank did not elect to take this deduction.

The supplementary leverage ratios at December 31, 2021 and December 31, 2020 for the Corporation and the Bank reflect the impact of these final rules.

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Northern Trust Corporation (Corporation only) (Tables) - Parent Company

12 Months Ended

Dec. 31, 2021

Condensed Financial Statements, Captions [Line Items]

Condensed Balance Sheet

	DECEMBER 31,
(In Millions)	2021		2020
ASSETS
Cash on Deposit with Subsidiary Bank	$	1,731.7	$	2,516.0
Advances to Wholly-Owned Subsidiaries – Banks	2,810.0		2,670.0
Investments in Wholly-Owned Subsidiaries – Banks	11,120.9		10,799.9
– Nonbank	185.3		172.8
Other Assets	890.2		900.9
Total Assets	$	16,738.1	$	17,059.6
LIABILITIES
Senior Notes	$	2,505.5	$	3,122.4
Long-Term Debt	1,145.7		1,189.3
Floating Rate Capital Debt	—		277.8
Other Liabilities	1,070.1		781.8
Total Liabilities	4,721.3		5,371.3
STOCKHOLDERS’ EQUITY
Preferred Stock	884.9		884.9
Common Stock	408.6		408.6
Additional Paid-in Capital	939.3		963.6
Retained Earnings	13,117.3		12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)		428.0
Treasury Stock	(3,297.7)		(3,204.5)
Total Stockholders’ Equity	12,016.8		11,688.3
Total Liabilities and Stockholders’ Equity	$	16,738.1	$	17,059.6

Condensed Statement of Income

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
OPERATING INCOME
Dividends – Bank Subsidiaries	$	751.1	$	900.0	$	2,024.1
– Nonbank Subsidiaries	8.3		—		0.4
Intercompany Interest and Other Charges	20.1		46.5		115.1
Interest and Other Income	32.3		19.1		20.2
Total Operating Income	811.8		965.6		2,159.8
OPERATING EXPENSES
Interest Expense	71.3		104.2		121.6
Other Operating Expenses	36.7		26.2		28.6
Total Operating Expenses	108.0		130.4		150.2
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries	703.8		835.2		2,009.6
Benefit for Income Taxes	25.7		28.2		24.3
Income before Equity in Undistributed Net Income of Subsidiaries	729.5		863.4		2,033.9
Equity in Undistributed Net Income of Subsidiaries – Banks	803.3		326.0		(559.9)
– Nonbank	12.5		19.9		18.2
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Preferred Stock Dividends	41.8		56.2		46.4
Net Income Applicable to Common Stock	$	1,503.5	$	1,153.1	$	1,445.8

Condensed Statement of Cash Flows

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,545.3	$	1,209.3	$	1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Undistributed Net Income of Subsidiaries	(815.8)		(345.9)		541.7
Change in Prepaid Expenses	0.1		398.5		(400.4)
Change in Accrued Income Taxes	2.2		3.7		114.1
Other Operating Activities, net	236.6		300.3		141.9
Net Cash Provided by Operating Activities	968.4		1,565.9		1,889.5
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities	—		—		—
Investments in and Advances to Subsidiaries, net	(140.0)		(800.0)		540.0
Acquisition of a Business, Net of Cash Received	—		—		—
Other Investing Activities, net	5.1		1.8		3.7
Net Cash (Used in) Provided by Investing Activities	(134.9)		(798.2)		543.7
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes	—		993.2		498.0
Repayments of Senior Notes	(500.0)		(508.6)		—
Repayment of Floating Rate Capital Debt	(278.8)		—		—
Redemption of Preferred Stock - Series C	—		(400.0)		—
Proceeds from Issuance of Preferred Stock - Series E	—		—		392.5
Treasury Stock Purchased	(267.6)		(299.8)		(1,100.2)
Net Proceeds from Stock Options	53.8		19.5		44.0
Cash Dividends Paid on Common Stock	(583.3)		(584.6)		(529.7)
Cash Dividends Paid on Preferred Stock	(41.8)		(45.9)		(46.4)
Other Financing Activities, net	(0.1)		15.4		0.9
Net Cash Used In Financing Activities	(1,617.8)		(810.8)		(740.9)
Net Change in Cash on Deposit with Subsidiary Bank	(784.3)		(43.1)		1,692.3
Cash on Deposit with Subsidiary Bank at Beginning of Year	2,516.0		2,559.1		866.8
Cash on Deposit with Subsidiary Bank at End of Year	$	1,731.7	$	2,516.0	$	2,559.1

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Summary of Significant Accounting Policies - Narrative (Detail) - 12 months ended Dec. 31, 2021	segment location	state
Property, Plant and Equipment [Line Items]
Number of client-focused reportable segment	2
Lower Limit
Property, Plant and Equipment [Line Items]
Days contractually past due for interest and principal and the loan is not well-secured and in the process of collection	90 days
Upper Limit
Property, Plant and Equipment [Line Items]
Number of days past due for disclosure purposes to be categorized as a current	29 days
Buildings | Upper Limit
Property, Plant and Equipment [Line Items]
Charge for depreciation, range of life	30 years
Equipment | Lower Limit
Property, Plant and Equipment [Line Items]
Charge for depreciation, range of life	3 years
Equipment | Upper Limit
Property, Plant and Equipment [Line Items]
Charge for depreciation, range of life	10 years
Computer Software
Property, Plant and Equipment [Line Items]
Software, useful life	15 years
Computer Software | Lower Limit
Property, Plant and Equipment [Line Items]
Software, useful life	3 years
Computer Software | Upper Limit
Property, Plant and Equipment [Line Items]
Software, useful life	10 years
WEALTH MANAGEMENT
Property, Plant and Equipment [Line Items]
Services provided by business units, states	19	19

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Fair Value Measurements - Narrative (Detail) shares in Millions, $ in Millions	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security	Jun. 30, 2016 shares	Jun. 30, 2015 shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale	$ 38,010.5	$ 42,022.0
Trading account securities	0.3	0.5
Visa Class B
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock issued (in shares) | shares			1.1	1.0
LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale	$ 35,600.0	$ 39,200.0
Number of available for sale securities portfolio | security	2,547	2,260
LEVEL 2 | External Pricing
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account securities	$ 0.3	$ 0.5
Fair Value, Measurements, Nonrecurring | LEVEL 3 | Discount factor applied to real estate collateral-based loans to reflect realizable value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, measurement input	0.154	0.168
Loans | Fair Value, Measurements, Nonrecurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	$ 15.0	$ 24.6

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Fair Value Measurements - Level 3 Significant Unobservable Inputs (Detail) $ in Millions	Dec. 31, 2021 USD ($) month year	Dec. 31, 2020 USD ($) month
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability | $	$ 851.7	$ 2,065.7
Swap | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability | $	$ 37.5	$ 35.3
Conversion Rate | Swap | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability, measurement input	1.62	1.62
Visa Class A Appreciation | Swap | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability, measurement input	0.1010	0.0873
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability, measurement input | month	20	20
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | Lower Limit
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability, measurement input	12	12
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | Upper Limit
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability, measurement input | month	33	33

XML

Fair Value Measurements - Recurring Basis Hierarchy Leveling (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	$ 38,010.5	$ 42,022.0
Derivative Assets	2,347.4	4,558.2
Asset, Netting	(1,533.8)	(3,507.8)
Derivative Assets	813.6	1,050.4
Derivative Liabilities	2,135.2	4,882.8
Liability, Netting	(1,283.5)	(2,817.1)
Derivative Liabilities	851.7	2,065.7
Cross Product Collateral Adjustment
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Asset, Netting	(389.4)	(1,867.8)
Liability, Netting	(139.0)	(1,177.2)
LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	35,600.0	39,200.0
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	38,010.5	42,022.0
Trading Account	0.3	0.5
Total Available for Sale and Trading Debt Securities	38,010.8	42,022.5
Fair Value, Measurements, Recurring | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Asset, Netting	(1,533.8)	(3,507.8)
Derivative Assets	813.6	1,050.4
Fair Value, Measurements, Recurring | Other Assets | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Asset, Netting	(1,530.7)	(3,505.3)
Derivative Assets	676.7	755.4
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Asset, Netting	(3.1)	(2.5)
Derivative Assets	136.9	295.0
Fair Value, Measurements, Recurring | Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liability, Netting	(1,283.5)	(2,817.1)
Derivative Liabilities	851.7	2,065.7
Fair Value, Measurements, Recurring | Other Liabilities | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liability, Netting	(1,234.5)	(2,718.6)
Derivative Liabilities	764.3	2,003.9
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liability, Netting	(48.1)	(98.5)
Derivative Liabilities	50.8	26.5
Fair Value, Measurements, Recurring | Other Liabilities | Other Financial Derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liability, Netting	(0.9)	0.0
Derivative Liabilities	36.6	35.3
Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,426.1	2,799.9
Trading Account	0.0	0.0
Total Available for Sale and Trading Debt Securities	2,426.1	2,799.9
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Other Financial Derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	35,584.4	39,222.1
Trading Account	0.3	0.5
Total Available for Sale and Trading Debt Securities	35,584.7	39,222.6
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	2,347.4	4,558.2
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	2,207.4	4,260.7
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	140.0	297.5
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	2,097.7	4,847.5
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	1,998.8	4,722.5
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	98.9	125.0
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Other Financial Derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Trading Account	0.0	0.0
Total Available for Sale and Trading Debt Securities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Assets	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	37.5	35.3
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Foreign Exchange Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Interest Rate Contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	0.0	0.0
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Other Financial Derivatives
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Derivative Liabilities	37.5	35.3
U.S. Government
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,426.1	2,799.9
U.S. Government | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,426.1	2,799.9
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,426.1	2,799.9
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,876.1	3,083.6
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,876.1	3,083.6
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,876.1	3,083.6
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Government Sponsored Agency
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	18,075.6	24,956.7
Government Sponsored Agency | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	18,075.6	24,956.7
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	18,075.6	24,956.7
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Non-U.S. Government
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	374.0	714.0
Non-U.S. Government | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	374.0	714.0
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	374.0	714.0
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Corporate Debt
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,341.7	2,539.6
Corporate Debt | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,341.7	2,539.6
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	2,341.7	2,539.6
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Covered Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	505.6	553.1
Covered Bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	505.6	553.1
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	505.6	553.1
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,045.1	2,345.8
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,045.1	2,345.8
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	3,045.1	2,345.8
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Other Asset-Backed
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	5,941.6	3,997.5
Other Asset-Backed | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	5,941.6	3,997.5
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	5,941.6	3,997.5
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Commercial Mortgage-Backed
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	1,424.7	1,031.8
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	1,424.7	1,031.8
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	0.0	0.0
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	1,424.7	1,031.8
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available for sale	$ 0.0	$ 0.0

XML

Fair Value Measurements - Changes in Level 3 Liabilities (Detail) - Visa Conversion Rate Swap - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 35.3	$ 33.4
Total (Gains) Losses:
Included in Earnings	21.3	18.3
Purchases, Issues, Sales, and Settlements
Settlements	(19.1)	(16.4)
Balance at end of period	37.5	35.3
Unrealized losses (gains) included in earnings related to financial instruments held at december 31	$ 22.0	$ 18.6

XML

Fair Value Measurements - Valuation Techniques, Significant Unobservable Inputs, Quantitative Information Non-recurring Basis (Detail) - Discount factor applied to real estate collateral-based loans to reflect realizable value - Fair Value, Measurements, Nonrecurring - LEVEL 3 $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INPUT VALUES	0.154	0.168
Lower Limit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INPUT VALUES	0.150	0.150
Upper Limit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INPUT VALUES	0.200	0.200
Loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FAIR VALUE	$ 15.0	$ 24.6

XML

Fair Value Measurements - Fair Value Of Financial Instruments (Detail) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and Due from Banks	$ 3,056,800,000	$ 4,389,500,000
Federal Reserve and Other Central Bank Deposits	64,582,200,000	55,503,600,000
Interest-Bearing Deposits with Banks	1,949,400,000	4,372,600,000
Securities Purchased under Agreements to Resell	686,400,000	1,596,500,000
Debt Securities
Available for sale	38,010,500,000	42,022,000,000
Held to maturity, fair value	23,315,400,000	17,797,400,000
Loans (excluding Leases)
Held for Sale	12,300,000	0
Client Security Settlement Receivables	1,941,200,000	1,160,200,000
Deposits
Savings Certificates and Other Time	842,700,000	937,100,000
Non U.S. Offices Interest-Bearing	75,767,100,000	71,198,400,000
Federal Funds Purchased	200,000	260,200,000
Securities Sold Under Agreements to Repurchase	531,900,000	39,800,000
Other Borrowings	3,583,800,000	4,011,500,000
Senior Notes	2,505,500,000	3,122,400,000
Long-Term Debt
Floating Rate Capital Debt	0	277,800,000
DERIVATIVE INSTRUMENTS
Assets	1,902,700,000	4,097,200,000
Liabilities	1,566,500,000	3,738,000,000
LEVEL 2
Debt Securities
Available for sale	35,600,000,000	39,200,000,000
BOOK VALUE
ASSETS
Cash and Due from Banks	3,056,800,000	4,389,500,000
Federal Reserve and Other Central Bank Deposits	64,582,200,000	55,503,600,000
Interest-Bearing Deposits with Banks	1,949,400,000	4,372,600,000
Securities Purchased under Agreements to Resell	686,400,000	1,596,500,000
Debt Securities
Available for sale	38,010,500,000	42,022,000,000
Held to maturity, fair value	23,564,500,000	17,791,100,000
Trading Account	300,000	500,000
Loans (excluding Leases)
Held for Investment	40,319,300,000	33,558,000,000
Held for Sale	12,300,000
Client Security Settlement Receivables	1,941,200,000	1,160,200,000
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140,100,000	275,000,000.0
Community Development Investments	959,600,000	919,600,000
Employee Benefit and Deferred Compensation	218,400,000	215,800,000
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	83,318,600,000	71,742,500,000
Savings Certificates and Other Time	842,700,000	937,100,000
Non U.S. Offices Interest-Bearing	75,767,100,000	71,198,400,000
Federal Funds Purchased	200,000	260,200,000
Securities Sold Under Agreements to Repurchase	531,900,000	39,800,000
Other Borrowings	3,583,800,000	4,011,500,000
Senior Notes	2,505,500,000	3,122,400,000
Long-Term Debt
Subordinated Debt	1,145,700,000	1,189,300,000
Floating Rate Capital Debt		277,800,000
Floating Rate Capital Debt
Standby Letters of Credit	15,700,000	22,400,000
Loan Commitments	59,800,000	77,000,000.0
BOOK VALUE | Asset/Liability Management | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	245,300,000	15,600,000
Liabilities	25,500,000	311,800,000
BOOK VALUE | Asset/Liability Management | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	7,600,000	8,300,000
Liabilities	8,700,000	10,200,000
BOOK VALUE | Asset/Liability Management | Other Financial Derivatives
DERIVATIVE INSTRUMENTS
Liabilities	37,500,000	35,300,000
BOOK VALUE | Client-Related and Trading | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	1,962,100,000	4,245,100,000
Liabilities	1,973,300,000	4,410,700,000
BOOK VALUE | Client-Related and Trading | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	132,400,000	289,200,000
Liabilities	90,200,000	114,800,000
FAIR VALUE
ASSETS
Cash and Due from Banks	3,056,800,000	4,389,500,000
Federal Reserve and Other Central Bank Deposits	64,582,200,000	55,503,600,000
Interest-Bearing Deposits with Banks	1,949,400,000	4,372,600,000
Securities Purchased under Agreements to Resell	686,400,000	1,596,500,000
Debt Securities
Available for sale	38,010,500,000	42,022,000,000
Held to maturity, fair value	23,315,400,000	17,797,400,000
Trading Account	300,000	500,000
Loans (excluding Leases)
Held for Investment	40,208,200,000	34,017,500,000
Held for Sale	24,500,000
Client Security Settlement Receivables	1,941,200,000	1,160,200,000
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140,100,000	275,000,000.0
Community Development Investments	959,600,000	919,600,000
Employee Benefit and Deferred Compensation	222,900,000	228,900,000
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	83,318,600,000	71,742,500,000
Savings Certificates and Other Time	843,800,000	943,000,000.0
Non U.S. Offices Interest-Bearing	75,767,100,000	71,198,400,000
Federal Funds Purchased	200,000	260,200,000
Securities Sold Under Agreements to Repurchase	531,900,000	39,800,000
Other Borrowings	3,583,900,000	4,012,700,000
Senior Notes	2,591,400,000	3,222,600,000
Long-Term Debt
Subordinated Debt	1,189,400,000	1,250,100,000
Floating Rate Capital Debt		264,600,000
Floating Rate Capital Debt
Standby Letters of Credit	15,700,000	22,400,000
Loan Commitments	59,800,000	77,000,000.0
FAIR VALUE | Asset/Liability Management | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	245,300,000	15,600,000
Liabilities	25,500,000	311,800,000
FAIR VALUE | Asset/Liability Management | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	7,600,000	8,300,000
Liabilities	8,700,000	10,200,000
FAIR VALUE | Asset/Liability Management | Other Financial Derivatives
DERIVATIVE INSTRUMENTS
Liabilities	37,500,000	35,300,000
FAIR VALUE | Client-Related and Trading | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	1,962,100,000	4,245,100,000
Liabilities	1,973,300,000	4,410,700,000
FAIR VALUE | Client-Related and Trading | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	132,400,000	289,200,000
Liabilities	90,200,000	114,800,000
FAIR VALUE | LEVEL 1
ASSETS
Cash and Due from Banks	3,056,800,000	4,389,500,000
Federal Reserve and Other Central Bank Deposits	0	0
Interest-Bearing Deposits with Banks	0	0
Securities Purchased under Agreements to Resell	0	0
Debt Securities
Available for sale	2,426,100,000	2,799,900,000
Held to maturity, fair value	47,000,000.0	90,000,000.0
Trading Account	0	0
Loans (excluding Leases)
Held for Investment	0	0
Held for Sale	0
Client Security Settlement Receivables	0	0
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	0	0
Community Development Investments	0	0
Employee Benefit and Deferred Compensation	119,100,000	138,600,000
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	83,318,600,000	71,742,500,000
Savings Certificates and Other Time	0	0
Non U.S. Offices Interest-Bearing	0	0
Federal Funds Purchased	0	0
Securities Sold Under Agreements to Repurchase	0	0
Other Borrowings	0	0
Senior Notes	0	0
Long-Term Debt
Subordinated Debt	0	0
Floating Rate Capital Debt		0
Floating Rate Capital Debt
Standby Letters of Credit	0	0
Loan Commitments	0	0
FAIR VALUE | LEVEL 1 | Asset/Liability Management | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 1 | Asset/Liability Management | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 1 | Asset/Liability Management | Other Financial Derivatives
DERIVATIVE INSTRUMENTS
Liabilities	0	0
FAIR VALUE | LEVEL 1 | Client-Related and Trading | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 1 | Client-Related and Trading | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 2
ASSETS
Cash and Due from Banks	0	0
Federal Reserve and Other Central Bank Deposits	64,582,200,000	55,503,600,000
Interest-Bearing Deposits with Banks	1,949,400,000	4,372,600,000
Securities Purchased under Agreements to Resell	686,400,000	1,596,500,000
Debt Securities
Available for sale	35,584,400,000	39,222,100,000
Held to maturity, fair value	23,268,400,000	17,707,400,000
Trading Account	300,000	500,000
Loans (excluding Leases)
Held for Investment	0	0
Held for Sale	24,500,000
Client Security Settlement Receivables	1,941,200,000	1,160,200,000
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	140,100,000	275,000,000.0
Community Development Investments	959,600,000	919,600,000
Employee Benefit and Deferred Compensation	103,800,000	90,300,000
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	0	0
Savings Certificates and Other Time	843,800,000	943,000,000.0
Non U.S. Offices Interest-Bearing	75,767,100,000	71,198,400,000
Federal Funds Purchased	200,000	260,200,000
Securities Sold Under Agreements to Repurchase	531,900,000	39,800,000
Other Borrowings	3,583,900,000	4,012,700,000
Senior Notes	2,591,400,000	3,222,600,000
Long-Term Debt
Subordinated Debt	1,189,400,000	1,250,100,000
Floating Rate Capital Debt		264,600,000
Floating Rate Capital Debt
Standby Letters of Credit	0	0
Loan Commitments	0	0
FAIR VALUE | LEVEL 2 | Asset/Liability Management | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	245,300,000	15,600,000
Liabilities	25,500,000	311,800,000
FAIR VALUE | LEVEL 2 | Asset/Liability Management | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	7,600,000	8,300,000
Liabilities	8,700,000	10,200,000
FAIR VALUE | LEVEL 2 | Asset/Liability Management | Other Financial Derivatives
DERIVATIVE INSTRUMENTS
Liabilities	0	0
FAIR VALUE | LEVEL 2 | Client-Related and Trading | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	1,962,100,000	4,245,100,000
Liabilities	1,973,300,000	4,410,700,000
FAIR VALUE | LEVEL 2 | Client-Related and Trading | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	132,400,000	289,200,000
Liabilities	90,200,000	114,800,000
FAIR VALUE | LEVEL 3
ASSETS
Cash and Due from Banks	0	0
Federal Reserve and Other Central Bank Deposits	0	0
Interest-Bearing Deposits with Banks	0	0
Securities Purchased under Agreements to Resell	0	0
Debt Securities
Available for sale	0	0
Held to maturity, fair value	0	0
Trading Account	0	0
Loans (excluding Leases)
Held for Investment	40,208,200,000	34,017,500,000
Held for Sale
Client Security Settlement Receivables	0	0
Other Assets
Federal Reserve and Federal Home Loan Bank Stock	0	0
Community Development Investments	0	0
Employee Benefit and Deferred Compensation	0	0
Deposits
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing	0	0
Savings Certificates and Other Time	0	0
Non U.S. Offices Interest-Bearing	0	0
Federal Funds Purchased	0	0
Securities Sold Under Agreements to Repurchase	0	0
Other Borrowings	0	0
Senior Notes	0	0
Long-Term Debt
Subordinated Debt	0	0
Floating Rate Capital Debt		0
Floating Rate Capital Debt
Standby Letters of Credit	15,700,000	22,400,000
Loan Commitments	59,800,000	77,000,000.0
FAIR VALUE | LEVEL 3 | Asset/Liability Management | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 3 | Asset/Liability Management | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 3 | Asset/Liability Management | Other Financial Derivatives
DERIVATIVE INSTRUMENTS
Liabilities	37,500,000	35,300,000
FAIR VALUE | LEVEL 3 | Client-Related and Trading | Foreign Exchange Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	0	0
FAIR VALUE | LEVEL 3 | Client-Related and Trading | Interest Rate Contracts
DERIVATIVE INSTRUMENTS
Assets	0	0
Liabilities	$ 0	$ 0

XML

Securities (Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Investment Holdings [Line Items]
AMORTIZED COST	$ 37,948.5	$ 41,155.7
GROSS UNREALIZED GAINS	310.6	897.6
GROSS UNREALIZED LOSSES	248.6	31.3
FAIR VALUE	38,010.5	42,022.0
U.S. Government
Investment Holdings [Line Items]
AMORTIZED COST	2,406.2	2,728.8
GROSS UNREALIZED GAINS	29.3	71.1
GROSS UNREALIZED LOSSES	9.4	0.0
FAIR VALUE	2,426.1	2,799.9
Obligations of States and Political Subdivisions
Investment Holdings [Line Items]
AMORTIZED COST	3,841.0	2,927.8
GROSS UNREALIZED GAINS	73.7	155.9
GROSS UNREALIZED LOSSES	38.6	0.1
FAIR VALUE	3,876.1	3,083.6
Government Sponsored Agency
Investment Holdings [Line Items]
AMORTIZED COST	18,092.1	24,595.1
GROSS UNREALIZED GAINS	93.7	388.5
GROSS UNREALIZED LOSSES	110.2	26.9
FAIR VALUE	18,075.6	24,956.7
Non-U.S. Government
Investment Holdings [Line Items]
AMORTIZED COST	383.4	713.6
GROSS UNREALIZED GAINS	0.1	1.1
GROSS UNREALIZED LOSSES	9.5	0.7
FAIR VALUE	374.0	714.0
Corporate Debt
Investment Holdings [Line Items]
AMORTIZED COST	2,319.8	2,459.9
GROSS UNREALIZED GAINS	31.6	79.8
GROSS UNREALIZED LOSSES	9.7	0.1
FAIR VALUE	2,341.7	2,539.6
Covered Bonds
Investment Holdings [Line Items]
AMORTIZED COST	502.6	543.1
GROSS UNREALIZED GAINS	3.9	10.0
GROSS UNREALIZED LOSSES	0.9	0.0
FAIR VALUE	505.6	553.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Investment Holdings [Line Items]
AMORTIZED COST	3,052.4	2,281.7
GROSS UNREALIZED GAINS	28.1	64.7
GROSS UNREALIZED LOSSES	35.4	0.6
FAIR VALUE	3,045.1	2,345.8
Other Asset-Backed
Investment Holdings [Line Items]
AMORTIZED COST	5,962.0	3,953.5
GROSS UNREALIZED GAINS	11.3	46.8
GROSS UNREALIZED LOSSES	31.7	2.8
FAIR VALUE	5,941.6	3,997.5
Commercial Mortgage-Backed
Investment Holdings [Line Items]
AMORTIZED COST	1,389.0	952.2
GROSS UNREALIZED GAINS	38.9	79.7
GROSS UNREALIZED LOSSES	3.2	0.1
FAIR VALUE	$ 1,424.7	$ 1,031.8

XML

Securities (Remaining Maturity of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Available for Sale - Amortized Cost
Amortized cost, one year or less	$ 5,009.6
Amortized cost, one to five years	19,648.5
Amortized cost, five to ten years	11,748.3
Amortized cost, over ten years	1,542.1
AMORTIZED COST	37,948.5	$ 41,155.7
Available for Sale - Fair Value
Fair value, one year or less	5,028.9
Fair value, one to five years	19,718.1
Fair value, five to ten years	11,725.5
Fair value, over ten years	1,538.0
Total	38,010.5	42,022.0
Held to Maturity - Amortized Cost
Amortized cost, one year or less	8,597.5
Amortized cost, one to five years	10,740.6
Amortized cost, five to ten years	3,292.3
Amortized cost, over ten years	934.1
Amortized Cost	23,564.5	17,791.1
Held to Maturity - Fair Value
Fair value, one year or less	8,585.0
Fair value, one to five years	10,631.8
Fair value, five to ten years	3,235.4
Fair value, over ten years	863.2
FAIR VALUE	23,315.4	17,797.4
U.S. Government
Available for Sale - Amortized Cost
Amortized cost, one year or less	0.0
Amortized cost, one to five years	2,157.8
Amortized cost, five to ten years	248.4
Amortized cost, over ten years	0.0
AMORTIZED COST	2,406.2	2,728.8
Available for Sale - Fair Value
Fair value, one year or less	0.0
Fair value, one to five years	2,187.1
Fair value, five to ten years	239.0
Fair value, over ten years	0.0
Total	2,426.1	2,799.9
Held to Maturity - Amortized Cost
Amortized cost, one year or less	47.0
Amortized cost, one to five years	0.0
Amortized cost, five to ten years	0.0
Amortized cost, over ten years	0.0
Amortized Cost	47.0	90.0
Held to Maturity - Fair Value
Fair value, one year or less	47.0
Fair value, one to five years	0.0
Fair value, five to ten years	0.0
Fair value, over ten years	0.0
FAIR VALUE	47.0	90.0
Obligations of States and Political Subdivisions
Available for Sale - Amortized Cost
Amortized cost, one year or less	22.8
Amortized cost, one to five years	448.3
Amortized cost, five to ten years	3,239.7
Amortized cost, over ten years	130.2
AMORTIZED COST	3,841.0	2,927.8
Available for Sale - Fair Value
Fair value, one year or less	23.0
Fair value, one to five years	462.1
Fair value, five to ten years	3,262.6
Fair value, over ten years	128.4
Total	3,876.1	3,083.6
Held to Maturity - Amortized Cost
Amortized cost, one year or less	0.8
Amortized cost, one to five years	0.0
Amortized cost, five to ten years	0.0
Amortized cost, over ten years	0.0
Amortized Cost	0.8	2.1
Held to Maturity - Fair Value
Fair value, one year or less	0.8
Fair value, one to five years	0.0
Fair value, five to ten years	0.0
Fair value, over ten years	0.0
FAIR VALUE	0.8	2.2
Government Sponsored Agency
Available for Sale - Amortized Cost
Amortized cost, one year or less	2,706.1
Amortized cost, one to five years	8,112.2
Amortized cost, five to ten years	6,084.0
Amortized cost, over ten years	1,189.8
AMORTIZED COST	18,092.1	24,595.1
Available for Sale - Fair Value
Fair value, one year or less	2,713.2
Fair value, one to five years	8,121.1
Fair value, five to ten years	6,053.4
Fair value, over ten years	1,187.9
Total	18,075.6	24,956.7
Held to Maturity - Amortized Cost
Amortized cost, one year or less	1,161.5
Amortized cost, one to five years	2,101.4
Amortized cost, five to ten years	1,848.8
Amortized cost, over ten years	815.9
Amortized Cost	5,927.6	3.0
Held to Maturity - Fair Value
Fair value, one year or less	1,143.6
Fair value, one to five years	2,064.6
Fair value, five to ten years	1,815.0
Fair value, over ten years	799.4
FAIR VALUE	5,822.6	3.3
Non-U.S. Government
Available for Sale - Amortized Cost
Amortized cost, one year or less	72.7
Amortized cost, one to five years	228.4
Amortized cost, five to ten years	82.3
Amortized cost, over ten years	0.0
AMORTIZED COST	383.4
Available for Sale - Fair Value
Fair value, one year or less	72.7
Fair value, one to five years	223.1
Fair value, five to ten years	78.2
Fair value, over ten years	0.0
Total	374.0
Held to Maturity - Amortized Cost
Amortized cost, one year or less	4,502.7
Amortized cost, one to five years	1,109.2
Amortized cost, five to ten years	161.4
Amortized cost, over ten years	0.0
Amortized Cost	5,773.3	8,336.6
Held to Maturity - Fair Value
Fair value, one year or less	4,502.6
Fair value, one to five years	1,103.9
Fair value, five to ten years	160.9
Fair value, over ten years	0.0
FAIR VALUE	5,767.4	8,343.7
Corporate Debt
Available for Sale - Amortized Cost
Amortized cost, one year or less	404.4
Amortized cost, one to five years	1,892.6
Amortized cost, five to ten years	18.1
Amortized cost, over ten years	4.7
AMORTIZED COST	2,319.8	2,459.9
Available for Sale - Fair Value
Fair value, one year or less	408.0
Fair value, one to five years	1,911.6
Fair value, five to ten years	17.5
Fair value, over ten years	4.6
Total	2,341.7	2,539.6
Held to Maturity - Amortized Cost
Amortized cost, one year or less	177.4
Amortized cost, one to five years	708.3
Amortized cost, five to ten years	16.1
Amortized cost, over ten years	0.0
Amortized Cost	901.8	588.0
Held to Maturity - Fair Value
Fair value, one year or less	178.8
Fair value, one to five years	703.4
Fair value, five to ten years	15.6
Fair value, over ten years	0.0
FAIR VALUE	897.8	594.4
Covered Bonds
Available for Sale - Amortized Cost
Amortized cost, one year or less	141.5
Amortized cost, one to five years	361.1
Amortized cost, five to ten years	0.0
Amortized cost, over ten years	0.0
AMORTIZED COST	502.6	543.1
Available for Sale - Fair Value
Fair value, one year or less	142.1
Fair value, one to five years	363.5
Fair value, five to ten years	0.0
Fair value, over ten years	0.0
Total	505.6	553.1
Held to Maturity - Amortized Cost
Amortized cost, one year or less	650.1
Amortized cost, one to five years	1,684.0
Amortized cost, five to ten years	608.3
Amortized cost, over ten years	0.0
Amortized Cost	2,942.4	3,184.6
Held to Maturity - Fair Value
Fair value, one year or less	651.3
Fair value, one to five years	1,688.0
Fair value, five to ten years	601.8
Fair value, over ten years	0.0
FAIR VALUE	2,941.1	3,208.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Available for Sale - Amortized Cost
Amortized cost, one year or less	760.6
Amortized cost, one to five years	1,926.8
Amortized cost, five to ten years	365.0
Amortized cost, over ten years	0.0
AMORTIZED COST	3,052.4	2,281.7
Available for Sale - Fair Value
Fair value, one year or less	765.7
Fair value, one to five years	1,926.1
Fair value, five to ten years	353.3
Fair value, over ten years	0.0
Total	3,045.1	2,345.8
Held to Maturity - Amortized Cost
Amortized cost, one year or less	1,086.9
Amortized cost, one to five years	4,507.7
Amortized cost, five to ten years	503.4
Amortized cost, over ten years	0.0
Amortized Cost	6,098.0	3,648.0
Held to Maturity - Fair Value
Fair value, one year or less	1,091.5
Fair value, one to five years	4,451.4
Fair value, five to ten years	489.4
Fair value, over ten years	0.0
FAIR VALUE	6,032.3	3,690.6
Other Asset-Backed
Available for Sale - Amortized Cost
Amortized cost, one year or less	894.0
Amortized cost, one to five years	3,559.0
Amortized cost, five to ten years	1,291.6
Amortized cost, over ten years	217.4
AMORTIZED COST	5,962.0	3,953.5
Available for Sale - Fair Value
Fair value, one year or less	896.8
Fair value, one to five years	3,541.4
Fair value, five to ten years	1,286.3
Fair value, over ten years	217.1
Total	5,941.6	3,997.5
Held to Maturity - Amortized Cost
Amortized cost, one year or less	190.4
Amortized cost, one to five years	398.0
Amortized cost, five to ten years	94.2
Amortized cost, over ten years	0.0
Amortized Cost	682.6	677.0
Held to Maturity - Fair Value
Fair value, one year or less	190.6
Fair value, one to five years	398.7
Fair value, five to ten years	94.3
Fair value, over ten years	0.0
FAIR VALUE	683.6	677.9
Commercial Mortgage-Backed
Available for Sale - Amortized Cost
Amortized cost, one year or less	7.5
Amortized cost, one to five years	962.3
Amortized cost, five to ten years	419.2
Amortized cost, over ten years	0.0
AMORTIZED COST	1,389.0	952.2
Available for Sale - Fair Value
Fair value, one year or less	7.4
Fair value, one to five years	982.1
Fair value, five to ten years	435.2
Fair value, over ten years	0.0
Total	1,424.7	1,031.8
Certificates of Deposit
Held to Maturity - Amortized Cost
Amortized cost, one year or less	674.7
Amortized cost, one to five years	0.0
Amortized cost, five to ten years	0.0
Amortized cost, over ten years	0.0
Amortized Cost	674.7	807.2
Held to Maturity - Fair Value
Fair value, one year or less	674.7
Fair value, one to five years	0.0
Fair value, five to ten years	0.0
Fair value, over ten years	0.0
FAIR VALUE	674.7	807.2
Other
Held to Maturity - Amortized Cost
Amortized cost, one year or less	106.0
Amortized cost, one to five years	232.0
Amortized cost, five to ten years	60.1
Amortized cost, over ten years	118.2
Amortized Cost	516.3	454.6
Held to Maturity - Fair Value
Fair value, one year or less	104.1
Fair value, one to five years	221.8
Fair value, five to ten years	58.4
Fair value, over ten years	63.8
FAIR VALUE	$ 448.1	$ 379.2

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Securities (Securities with Unrealized Losses) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
FAIR VALUE
Less Than 12 Months, Fair Value	$ 16,660.7	$ 2,995.7
12 Months or Longer, Fair Value	2,037.0	3,370.9
Total, Fair Value	18,697.7	6,366.6
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	223.6	15.3
12 Months or Longer, Unrealized Losses	25.0	16.0
Total, Unrealized Losses	248.6	31.3
U.S. Government
FAIR VALUE
Less Than 12 Months, Fair Value	239.0
12 Months or Longer, Fair Value	0.0
Total, Fair Value	239.0
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	9.4
12 Months or Longer, Unrealized Losses	0.0
Total, Unrealized Losses	9.4
Obligations of States and Political Subdivisions
FAIR VALUE
Less Than 12 Months, Fair Value	1,699.5	52.3
12 Months or Longer, Fair Value	31.6	0.0
Total, Fair Value	1,731.1	52.3
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	37.4	0.1
12 Months or Longer, Unrealized Losses	1.2	0.0
Total, Unrealized Losses	38.6	0.1
Government Sponsored Agency
FAIR VALUE
Less Than 12 Months, Fair Value	8,207.3	2,402.3
12 Months or Longer, Fair Value	1,821.4	2,528.7
Total, Fair Value	10,028.7	4,931.0
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	90.2	13.6
12 Months or Longer, Unrealized Losses	20.0	13.3
Total, Unrealized Losses	110.2	26.9
Non-U.S. Government
FAIR VALUE
Less Than 12 Months, Fair Value	230.0	90.5
12 Months or Longer, Fair Value	0.0	0.0
Total, Fair Value	230.0	90.5
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	9.5	0.7
12 Months or Longer, Unrealized Losses	0.0	0.0
Total, Unrealized Losses	9.5	0.7
Corporate Debt
FAIR VALUE
Less Than 12 Months, Fair Value	693.7	66.6
12 Months or Longer, Fair Value	0.0	0.0
Total, Fair Value	693.7	66.6
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	9.7	0.1
12 Months or Longer, Unrealized Losses	0.0	0.0
Total, Unrealized Losses	9.7	0.1
Covered Bonds
FAIR VALUE
Less Than 12 Months, Fair Value	92.1
12 Months or Longer, Fair Value	0.0
Total, Fair Value	92.1
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	0.9
12 Months or Longer, Unrealized Losses	0.0
Total, Unrealized Losses	0.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
FAIR VALUE
Less Than 12 Months, Fair Value	1,116.8	162.8
12 Months or Longer, Fair Value	172.3	49.9
Total, Fair Value	1,289.1	212.7
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	31.9	0.5
12 Months or Longer, Unrealized Losses	3.5	0.1
Total, Unrealized Losses	35.4	0.6
Other Asset-Backed
FAIR VALUE
Less Than 12 Months, Fair Value	3,815.5	176.8
12 Months or Longer, Fair Value	11.7	792.3
Total, Fair Value	3,827.2	969.1
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	31.4	0.2
12 Months or Longer, Unrealized Losses	0.3	2.6
Total, Unrealized Losses	31.7	2.8
Commercial Mortgage-Backed
FAIR VALUE
Less Than 12 Months, Fair Value	566.8	44.4
12 Months or Longer, Fair Value	0.0	0.0
Total, Fair Value	566.8	44.4
UNREALIZED LOSSES
Less Than 12 Months, Unrealized Losses	3.2	0.1
12 Months or Longer, Unrealized Losses	0.0	0.0
Total, Unrealized Losses	$ 3.2	$ 0.1

XML

Securities (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) investment	Dec. 31, 2020 USD ($) investment	Dec. 31, 2019 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Number of securities in an unrealized loss position | investment	1,233	412
Debt securities, available-for-sale, unrealized loss position	$ 18,697,700,000	$ 6,366,600,000
Debt securities, available-for-sale, unrealized loss position, accumulated loss	248,600,000	31,300,000
Debt securities, available-for-sale, accumulated gross unrealized loss	248,600,000	31,300,000
Provision for credit losses	(81,500,000)	125,000,000	$ (14,500,000)
Allowance for credit losses, available-for-sale securities	531,900,000	39,800,000
Debt securities, held-to-maturity, amortized cost	23,564,500,000	17,791,100,000
Debt securities, held-to-maturity, accumulated unrecognized Loss	283,600,000	78,000,000.0
Transferred from available for sale to held to maturity	$ 6,900,000,000	$ 301,500,000
Percentage of debt securities, held-to-maturity, portfolio	1	1
Gross proceeds from sale of securities	$ 116,700,000	$ 879,900,000	$ 1,200,000,000
Moodys And Standard Poors A Or Higher Rating
Debt and Equity Securities, FV-NI [Line Items]
Percentage of debt securities, held-to-maturity, portfolio	0.94	0.93
Moodys And Standard Poors Not Rated
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	$ 1,191,000,000	$ 1,261,800,000
Percentage of debt securities, held-to-maturity, portfolio	0.05	0.07
Government Sponsored Agency
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, available-for-sale, unrealized loss position	$ 10,028,700,000	$ 4,931,000,000
Debt securities, available-for-sale, unrealized loss position, accumulated loss	110,200,000	26,900,000
Debt securities, available-for-sale, accumulated gross unrealized loss	110,200,000	26,900,000
Debt securities, held-to-maturity, amortized cost	5,927,600,000	3,000,000.0
Debt securities, held-to-maturity, accumulated unrecognized Loss	106,100,000	0
Government Sponsored Agency | Moodys And Standard Poors Not Rated
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	0	0
Corporate Debt
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, available-for-sale, unrealized loss position	693,700,000	66,600,000
Debt securities, available-for-sale, unrealized loss position, accumulated loss	9,700,000	100,000
Debt securities, available-for-sale, accumulated gross unrealized loss	$ 9,700,000	$ 100,000
Percent of corporate debt portfolio	14.00%	16.00%
Provision for credit losses	$ 0	$ 0
Allowance for credit losses, available-for-sale securities	0	0
Debt securities, held-to-maturity, amortized cost	901,800,000	588,000,000.0
Debt securities, held-to-maturity, accumulated unrecognized Loss	6,500,000	100,000
Corporate Debt | Moodys And Standard Poors Not Rated
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	0	0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, available-for-sale, unrealized loss position	1,289,100,000	212,700,000
Debt securities, available-for-sale, unrealized loss position, accumulated loss	35,400,000	600,000
Debt securities, available-for-sale, accumulated gross unrealized loss	35,400,000	600,000
Debt securities, held-to-maturity, amortized cost	6,098,000,000	3,648,000,000
Debt securities, held-to-maturity, accumulated unrecognized Loss	80,000,000	900,000
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Moodys And Standard Poors Not Rated
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	0	0
Other securities
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	516,300,000	454,600,000
Debt securities, held-to-maturity, accumulated unrecognized Loss	71,600,000	76,500,000
Other securities | Moodys And Standard Poors Not Rated
Debt and Equity Securities, FV-NI [Line Items]
Debt securities, held-to-maturity, amortized cost	$ 516,300,000	$ 454,600,000

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Securities (Reconciliation of Amortized Cost to Fair Value of Securities Held to Maturity) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 23,564.5	$ 17,791.1
GROSS UNREALIZED GAINS	34.5	84.3
GROSS UNREALIZED LOSSES	283.6	78.0
FAIR VALUE	23,315.4	17,797.4
U.S. Government
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	47.0	90.0
GROSS UNREALIZED GAINS	0.0	0.0
GROSS UNREALIZED LOSSES	0.0	0.0
FAIR VALUE	47.0	90.0
Obligations of States and Political Subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.8	2.1
GROSS UNREALIZED GAINS	0.0	0.1
GROSS UNREALIZED LOSSES	0.0	0.0
FAIR VALUE	0.8	2.2
Government Sponsored Agency
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,927.6	3.0
GROSS UNREALIZED GAINS	1.1	0.3
GROSS UNREALIZED LOSSES	106.1	0.0
FAIR VALUE	5,822.6	3.3
Non-U.S. Government
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,773.3	8,336.6
GROSS UNREALIZED GAINS	3.9	7.3
GROSS UNREALIZED LOSSES	9.8	0.2
FAIR VALUE	5,767.4	8,343.7
Corporate Debt
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	901.8	588.0
GROSS UNREALIZED GAINS	2.5	6.5
GROSS UNREALIZED LOSSES	6.5	0.1
FAIR VALUE	897.8	594.4
Covered Bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,942.4	3,184.6
GROSS UNREALIZED GAINS	8.3	24.6
GROSS UNREALIZED LOSSES	9.6	0.3
FAIR VALUE	2,941.1	3,208.9
Certificates of Deposit
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	674.7	807.2
GROSS UNREALIZED GAINS	0.0	0.0
GROSS UNREALIZED LOSSES	0.0	0.0
FAIR VALUE	674.7	807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	6,098.0	3,648.0
GROSS UNREALIZED GAINS	14.3	43.5
GROSS UNREALIZED LOSSES	80.0	0.9
FAIR VALUE	6,032.3	3,690.6
Other Asset-Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	682.6	677.0
GROSS UNREALIZED GAINS	1.0	0.9
GROSS UNREALIZED LOSSES	0.0	0.0
FAIR VALUE	683.6	677.9
Other
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	516.3	454.6
GROSS UNREALIZED GAINS	3.4	1.1
GROSS UNREALIZED LOSSES	71.6	76.5
FAIR VALUE	$ 448.1	$ 379.2

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Securities (Credit Quality Indicators) (Details) $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 23,564.5	$ 17,791.1
Percentage of debt securities, held-to-maturity, portfolio	1	1
AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 14,207.5	$ 6,869.1
Percentage of debt securities, held-to-maturity, portfolio	0.60	0.39
AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 3,188.1	$ 2,674.6
Percentage of debt securities, held-to-maturity, portfolio	0.14	0.15
A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 4,632.9	$ 6,935.7
Percentage of debt securities, held-to-maturity, portfolio	0.20	0.39
BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 345.0	$ 49.9
Percentage of debt securities, held-to-maturity, portfolio	0.01	0
NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,191.0	$ 1,261.8
Percentage of debt securities, held-to-maturity, portfolio	0.05	0.07
U.S. Government
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 47.0	$ 90.0
U.S. Government | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	47.0	90.0
U.S. Government | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
U.S. Government | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
U.S. Government | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
U.S. Government | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Obligations of States and Political Subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.8	2.1
Obligations of States and Political Subdivisions | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Obligations of States and Political Subdivisions | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.8	1.0
Obligations of States and Political Subdivisions | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Obligations of States and Political Subdivisions | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	1.1
Obligations of States and Political Subdivisions | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Government Sponsored Agency
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,927.6	3.0
Government Sponsored Agency | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,927.6	3.0
Government Sponsored Agency | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Government Sponsored Agency | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Government Sponsored Agency | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Government Sponsored Agency | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Non-U.S. Government
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,773.3	8,336.6
Non-U.S. Government | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	398.0	319.8
Non-U.S. Government | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	942.6	1,337.4
Non-U.S. Government | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,088.8	6,630.6
Non-U.S. Government | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	343.9	48.8
Non-U.S. Government | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Corporate Debt
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	901.8	588.0
Corporate Debt | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2.3	3.8
Corporate Debt | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	386.7	279.1
Corporate Debt | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	512.8	305.1
Corporate Debt | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Corporate Debt | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Covered Bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,942.4	3,184.6
Covered Bonds | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,942.4	3,184.6
Covered Bonds | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Covered Bonds | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Covered Bonds | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Covered Bonds | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Certificates of Deposit
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	674.7	807.2
Certificates of Deposit | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Certificates of Deposit | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Certificates of Deposit | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Certificates of Deposit | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Certificates of Deposit | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	674.7	807.2
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	6,098.0	3,648.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,207.6	2,590.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,858.0	1,057.1
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	31.3	0.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1.1	0.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other Asset-Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	682.6	677.0
Other Asset-Backed | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	682.6	677.0
Other Asset-Backed | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other Asset-Backed | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other Asset-Backed | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other Asset-Backed | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	516.3	454.6
Other | AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other | AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other | BBB
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0.0	0.0
Other | NOT RATED
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 516.3	$ 454.6

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Securities (Investment Security Gains and Losses) (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gross Realized Debt Securities Gains		$ 1.4	$ 3.4	$ 2.4
Gross Realized Debt Securities Losses		(1.7)	(3.8)	(3.5)
Changes in Other-Than-Temporary Impairment Losses	$ (4.4)	0.0	0.0	(0.3)
Net Investment Security Losses		$ (0.3)	$ (0.4)	$ (1.4)

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Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Securities Purchased under Agreements to Resell (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Balance at December 31	$ 686.4	$ 1,596.5
Average Balance During the Year	$ 1,067.4	$ 1,253.1
Average Interest Rate Earned During the Year	0.33%	0.31%
Maximum Month-End Balance During the Year	$ 1,819.1	$ 2,055.6

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Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Securities Sold under Agreements to Repurchase (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Balance at December 31	$ 531.9	$ 39.8
Average Balance During the Year	$ 232.0	$ 218.3
Average Interest Rate Paid During the Year	0.07%	0.47%
Maximum Month-End Balance During the Year	$ 892.6	$ 269.8

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Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Repurchase Agreements Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	$ 531.9	$ 39.8
Allowance for credit losses, available-for-sale securities	531.9	39.8
Amounts related to agreements not included in Note 28	0.0	0.0
U.S. Treasury and Agency Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	531.9	39.8
OVERNIGHT AND CONTINUOUS
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	32.4	39.8
Allowance for credit losses, available-for-sale securities	32.4	39.8
Amounts related to agreements not included in Note 28	0.0	0.0
OVERNIGHT AND CONTINUOUS | U.S. Treasury and Agency Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	32.4	39.8
UP TO 30 DAYS
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	499.5	0.0
Allowance for credit losses, available-for-sale securities	499.5	0.0
Amounts related to agreements not included in Note 28	0.0	0.0
UP TO 30 DAYS | U.S. Treasury and Agency Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total borrowings, repurchase agreements	$ 499.5	$ 0.0

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Loans and Leases (Loans and Leases) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	$ 40,480.6	$ 33,759.7
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	4,326.3	3,558.4
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	18,487.4	15,262.0
Commercial | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	11,489.2	10,058.3
Commercial | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	4,326.3	3,558.4
Commercial | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	1,990.2	1,345.7
Commercial | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	11.0	11.4
Commercial | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	670.7	288.2
Personal
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	21,993.2	18,497.7
Personal | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	15,256.3	11,815.1
Personal | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	6,319.9	6,035.7
Personal | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	381.8	597.9
Personal | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans and leases	$ 35.2	$ 49.0

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Loans and Leases (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) loan contract	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Draw period for credit line products	10 years
Total loans and leases	$ 40,480,600,000	$ 33,759,700,000
Other U.S. loans and non-U.S. loans, short duration advances	1,600,000,000	1,100,000,000
Demand deposits	8,000,000	26,400,000
Held for Sale	12,300,000	0
Financing receivable, nonaccrual, interest income	4,600,000	4,600,000	$ 7,300,000
Financing receivable, nonaccrual troubled debt restructuring	76,700,000	38,900,000
Financing receivable, troubled debt restructuring	16,500,000	29,300,000
Financing receivable, troubled debt restructuring, commitment to lend	$ 200,000	$ 10,400,000
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | loan	2	0
Recorded investment	$ 56,900,000	$ 40,500,000
Unpaid principal balance	63,500,000	41,200,000
Other real estate, foreclosed assets, and repossessed assets	3,000,000.0	700,000
Consumer loans collateralized by residential properties in foreclosure	$ 2,600,000	$ 7,900,000
Percentage of loans granted payment deferral in past due or nonaccrual status (less than)	10.00%
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans approved for forgiveness | loan	1,301	36
Loans Approved For Forgiveness	$ 231,500,000	$ 6,700,000
Loan processing fee	100,000	2,600,000
Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	21,993,200,000	18,497,700,000
Recorded investment	1,300,000	16,200,000
Unpaid principal balance	1,500,000	16,700,000
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	18,487,400,000	15,262,000,000
Recorded investment	55,600,000	24,300,000
Unpaid principal balance	$ 62,000,000.0	24,500,000
CARES Act
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, non-TDR modifications, number of contracts paid off | contract	148
Financing receivable, non-TDR modifications, recorded investment paid off	$ 209,400,000
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	5,600,000
Unpaid principal balance	$ 5,600,000
Residential Real Estate | Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Lower limit of generally required loan to collateral value for residential real estate loans	65.00%
Upper limit of generally required loan to collateral value for residential real estate loans	80.00%
Total loans and leases	$ 6,319,900,000	6,035,700,000
Recorded investment	1,300,000	16,200,000
Unpaid principal balance	1,500,000	16,700,000
Home Equity Loan | Personal
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 258,200,000	$ 304,400,000
Loans held by Northern trust	97.00%	97.00%
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Held for Sale	$ 0	$ 0
Commercial and Institutional | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	11,489,200,000	10,058,300,000
Recorded investment	19,600,000	24,300,000
Unpaid principal balance	19,600,000	$ 24,500,000
Commercial and Institutional | Commercial | Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 56,900,000
Financing receivable, number of contracts | loan	213,000,000
Financing receivable, average balance per loan	$ 300,000

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Loans and Leases (Leveraged Leases) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Leveraged Leases
Net Rental Receivable	$ 11.4	$ 11.8
Residual Value	0.0	0.0
Unearned Income	(0.4)	(0.4)
Investment in Leveraged Leases	$ 11.0	$ 11.4

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Loans and Leases (Credit Quality Indicator At Amortized Cost By Origination Year) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	$ 8,703.3	$ 7,448.6
2020/2019	4,382.7	3,667.9
2019/2018	2,626.7	1,352.6
2018/2017	931.6	1,123.1
2017/2016	675.7	1,254.8
PRIOR	2,490.3	3,128.5
REVOLVING LOANS	20,378.9	15,453.6
REVOLVING LOANS CONVERTED TO TERM LOANS	291.4	330.6
TOTAL LOANS AND LEASES	40,480.6	33,759.7
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL LOANS AND LEASES	4,326.3	3,558.4
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	5,287.1	3,772.7
2020/2019	1,939.4	2,187.7
2019/2018	1,550.6	990.3
2018/2017	703.5	725.0
2017/2016	419.5	749.9
PRIOR	1,381.8	1,285.8
REVOLVING LOANS	7,147.1	5,490.9
REVOLVING LOANS CONVERTED TO TERM LOANS	58.4	59.7
TOTAL LOANS AND LEASES	18,487.4	15,262.0
Commercial | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	2,151.5	1,491.5
2020/2019	922.2	1,170.9
2019/2018	717.8	596.0
2018/2017	418.4	544.2
2017/2016	292.2	553.6
PRIOR	727.8	622.1
REVOLVING LOANS	6,226.1	5,042.2
REVOLVING LOANS CONVERTED TO TERM LOANS	33.2	37.8
TOTAL LOANS AND LEASES	11,489.2	10,058.3
Commercial | Commercial and Institutional | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,057.9	663.8
2020/2019	469.7	546.0
2019/2018	313.7	204.6
2018/2017	156.6	96.0
2017/2016	48.2	396.0
PRIOR	535.8	448.8
REVOLVING LOANS	4,944.9	3,742.4
REVOLVING LOANS CONVERTED TO TERM LOANS	0.1	5.5
TOTAL LOANS AND LEASES	7,526.9	6,103.1
Commercial | Commercial and Institutional | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,043.6	793.4
2020/2019	432.2	505.1
2019/2018	377.3	354.1
2018/2017	231.6	405.4
2017/2016	234.1	134.6
PRIOR	190.1	167.3
REVOLVING LOANS	1,219.0	1,238.7
REVOLVING LOANS CONVERTED TO TERM LOANS	33.1	32.3
TOTAL LOANS AND LEASES	3,761.0	3,630.9
Commercial | Commercial and Institutional | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	50.0	34.3
2020/2019	20.3	119.8
2019/2018	26.8	37.3
2018/2017	30.2	42.8
2017/2016	9.9	23.0
PRIOR	1.9	6.0
REVOLVING LOANS	62.2	61.1
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	201.3	324.3
Commercial | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,477.7	1,124.7
2020/2019	948.3	976.2
2019/2018	771.3	392.3
2018/2017	283.2	169.7
2017/2016	118.2	196.3
PRIOR	451.9	494.4
REVOLVING LOANS	252.3	184.7
REVOLVING LOANS CONVERTED TO TERM LOANS	23.4	20.1
TOTAL LOANS AND LEASES	4,326.3	3,558.4
Commercial | Commercial Real Estate | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	485.3	406.3
2020/2019	310.2	109.2
2019/2018	260.6	27.6
2018/2017	60.2	36.5
2017/2016	16.8	11.8
PRIOR	79.3	99.4
REVOLVING LOANS	67.5	124.3
REVOLVING LOANS CONVERTED TO TERM LOANS	2.9	8.7
TOTAL LOANS AND LEASES	1,282.8	823.8
Commercial | Commercial Real Estate | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	967.9	703.1
2020/2019	638.1	811.8
2019/2018	460.1	332.7
2018/2017	223.0	107.4
2017/2016	81.4	184.5
PRIOR	364.1	382.8
REVOLVING LOANS	182.3	60.4
REVOLVING LOANS CONVERTED TO TERM LOANS	20.5	11.4
TOTAL LOANS AND LEASES	2,937.4	2,594.1
Commercial | Commercial Real Estate | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	24.5	15.3
2020/2019	0.0	55.2
2019/2018	50.6	32.0
2018/2017	0.0	25.8
2017/2016	20.0	0.0
PRIOR	8.5	12.2
REVOLVING LOANS	2.5	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	106.1	140.5
Commercial | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	987.2	868.3
2020/2019	68.9	40.6
2019/2018	61.5	2.0
2018/2017	1.9	11.1
2017/2016	9.1	0.0
PRIOR	191.1	157.9
REVOLVING LOANS	668.7	264.0
REVOLVING LOANS CONVERTED TO TERM LOANS	1.8	1.8
TOTAL LOANS AND LEASES	1,990.2	1,345.7
Commercial | Non-U.S. | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	824.1	555.2
2020/2019	68.9	16.8
2019/2018	38.4	0.0
2018/2017	0.0	11.1
2017/2016	9.1	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	582.0	78.5
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	1,522.5	661.6
Commercial | Non-U.S. | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	160.2	313.1
2020/2019	0.0	0.7
2019/2018	0.0	2.0
2018/2017	1.9	0.0
2017/2016	0.0	0.0
PRIOR	191.1	157.9
REVOLVING LOANS	73.3	39.2
REVOLVING LOANS CONVERTED TO TERM LOANS	1.8	1.8
TOTAL LOANS AND LEASES	428.3	514.7
Commercial | Non-U.S. | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	2.9	0.0
2020/2019	0.0	23.1
2019/2018	23.1	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	13.4	146.3
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	39.4	169.4
Commercial | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	0.0	0.0
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	11.0	11.4
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	11.0	11.4
Commercial | Lease Financing, net | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	0.0	0.0
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	11.0	11.4
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	11.0	11.4
Commercial | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	670.7	288.2
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	670.7	288.2
Commercial | Other | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	551.5	81.7
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	551.5	81.7
Commercial | Other | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	119.2	206.5
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	119.2	206.5
Personal
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	3,416.2	3,675.9
2020/2019	2,443.3	1,480.2
2019/2018	1,076.1	362.3
2018/2017	228.1	398.1
2017/2016	256.2	504.9
PRIOR	1,108.5	1,842.7
REVOLVING LOANS	13,231.8	9,962.7
REVOLVING LOANS CONVERTED TO TERM LOANS	233.0	270.9
TOTAL LOANS AND LEASES	21,993.2	18,497.7
Personal | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,041.8	1,166.7
2020/2019	432.0	754.1
2019/2018	606.3	191.1
2018/2017	116.3	124.0
2017/2016	93.1	87.7
PRIOR	169.7	213.6
REVOLVING LOANS	12,574.1	9,021.2
REVOLVING LOANS CONVERTED TO TERM LOANS	223.0	256.7
TOTAL LOANS AND LEASES	15,256.3	11,815.1
Personal | Private Client | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	455.5	668.6
2020/2019	97.9	273.7
2019/2018	87.0	51.7
2018/2017	14.9	60.4
2017/2016	38.3	10.2
PRIOR	129.8	136.1
REVOLVING LOANS	7,592.8	5,392.8
REVOLVING LOANS CONVERTED TO TERM LOANS	44.7	47.9
TOTAL LOANS AND LEASES	8,460.9	6,641.4
Personal | Private Client | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	579.2	492.1
2020/2019	333.9	479.9
2019/2018	519.3	117.3
2018/2017	81.0	60.4
2017/2016	54.8	77.5
PRIOR	39.9	77.5
REVOLVING LOANS	4,979.8	3,564.7
REVOLVING LOANS CONVERTED TO TERM LOANS	178.3	207.3
TOTAL LOANS AND LEASES	6,766.2	5,076.7
Personal | Private Client | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	7.1	6.0
2020/2019	0.2	0.5
2019/2018	0.0	22.1
2018/2017	20.4	3.2
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	1.5	63.7
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	1.5
TOTAL LOANS AND LEASES	29.2	97.0
Personal | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	2,275.5	2,424.2
2020/2019	2,009.4	685.2
2019/2018	449.9	159.4
2018/2017	101.4	273.6
2017/2016	163.1	416.7
PRIOR	933.8	1,619.1
REVOLVING LOANS	384.6	448.4
REVOLVING LOANS CONVERTED TO TERM LOANS	2.2	9.1
TOTAL LOANS AND LEASES	6,319.9	6,035.7
Personal | Residential Real Estate | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,137.8	1,554.3
2020/2019	996.4	317.4
2019/2018	201.8	42.9
2018/2017	13.5	109.9
2017/2016	49.3	205.1
PRIOR	505.8	627.8
REVOLVING LOANS	161.5	152.8
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	1.7
TOTAL LOANS AND LEASES	3,066.1	3,011.9
Personal | Residential Real Estate | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	1,137.3	854.6
2020/2019	1,002.5	359.5
2019/2018	242.7	115.8
2018/2017	79.5	163.2
2017/2016	113.3	209.7
PRIOR	369.8	896.5
REVOLVING LOANS	218.1	273.1
REVOLVING LOANS CONVERTED TO TERM LOANS	2.2	7.4
TOTAL LOANS AND LEASES	3,165.4	2,879.8
Personal | Residential Real Estate | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	0.4	15.3
2020/2019	10.5	8.3
2019/2018	5.4	0.7
2018/2017	8.4	0.5
2017/2016	0.5	1.9
PRIOR	58.2	94.8
REVOLVING LOANS	5.0	22.5
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	88.4	144.0
Personal | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	63.7	36.0
2020/2019	1.9	40.9
2019/2018	19.9	11.8
2018/2017	10.4	0.5
2017/2016	0.0	0.5
PRIOR	5.0	10.0
REVOLVING LOANS	273.1	493.1
REVOLVING LOANS CONVERTED TO TERM LOANS	7.8	5.1
TOTAL LOANS AND LEASES	381.8	597.9
Personal | Non-U.S. | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	27.6	23.3
2020/2019	0.0	14.9
2019/2018	1.2	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	1.0	1.8
REVOLVING LOANS	44.1	275.6
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	73.9	315.6
Personal | Non-U.S. | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	36.1	12.7
2020/2019	1.9	26.0
2019/2018	18.7	11.8
2018/2017	10.4	0.5
2017/2016	0.0	0.5
PRIOR	3.8	7.9
REVOLVING LOANS	229.0	217.5
REVOLVING LOANS CONVERTED TO TERM LOANS	7.8	5.1
TOTAL LOANS AND LEASES	307.7	282.0
Personal | Non-U.S. | 6 to 9 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	0.0	0.0
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.2	0.3
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	0.2	0.3
Personal | Other
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	35.2	49.0
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	35.2	49.0
Personal | Other | 1 to 3 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	13.4	34.6
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	13.4	34.6
Personal | Other | 4 to 5 Category
Financing Receivable, Credit Quality Indicator [Line Items]
2021/2020	21.8	14.4
2020/2019	0.0	0.0
2019/2018	0.0	0.0
2018/2017	0.0	0.0
2017/2016	0.0	0.0
PRIOR	0.0	0.0
REVOLVING LOANS	0.0	0.0
REVOLVING LOANS CONVERTED TO TERM LOANS	0.0	0.0
TOTAL LOANS AND LEASES	$ 21.8	$ 14.4

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Loans and Leases (Delinquency Status) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	$ 40,358.3	$ 33,628.0
NONACCRUAL	122.3	131.7
TOTAL LOANS AND LEASES	40,480.6	33,759.7
NONACCRUAL WITH NO ALLOWANCE	97.3	98.1
Other Real Estate Owned	3.0	0.7
Total Nonaccrual Assets	125.3	132.4
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL LOANS AND LEASES	4,326.3	3,558.4
CURRENT
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	39,980.5	33,395.6
30 – 59 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	272.3	209.5
60 – 89 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	77.2	14.0
90 DAYS OR MORE PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	28.3	8.9
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	18,401.3	15,195.4
NONACCRUAL	86.1	66.6
TOTAL LOANS AND LEASES	18,487.4	15,262.0
NONACCRUAL WITH NO ALLOWANCE	61.1	41.4
Commercial | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	11,469.7	10,031.9
NONACCRUAL	19.5	26.4
TOTAL LOANS AND LEASES	11,489.2	10,058.3
NONACCRUAL WITH NO ALLOWANCE	8.8	9.1
Commercial | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	4,259.7	3,518.2
NONACCRUAL	66.6	40.2
TOTAL LOANS AND LEASES	4,326.3	3,558.4
NONACCRUAL WITH NO ALLOWANCE	52.3	32.3
Commercial | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	1,990.2	1,345.7
NONACCRUAL	0.0	0.0
TOTAL LOANS AND LEASES	1,990.2	1,345.7
NONACCRUAL WITH NO ALLOWANCE	0.0	0.0
Commercial | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	11.0	11.4
NONACCRUAL	0.0	0.0
TOTAL LOANS AND LEASES	11.0	11.4
NONACCRUAL WITH NO ALLOWANCE	0.0	0.0
Commercial | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	670.7	288.2
NONACCRUAL	0.0	0.0
TOTAL LOANS AND LEASES	670.7	288.2
NONACCRUAL WITH NO ALLOWANCE	0.0	0.0
Commercial | CURRENT
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	18,363.2	15,038.5
Commercial | CURRENT | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	11,434.7	9,877.0
Commercial | CURRENT | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	4,256.6	3,516.2
Commercial | CURRENT | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	1,990.2	1,345.7
Commercial | CURRENT | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	11.0	11.4
Commercial | CURRENT | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	670.7	288.2
Commercial | 30 – 59 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	35.6	155.7
Commercial | 30 – 59 DAYS PAST DUE | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	32.5	153.7
Commercial | 30 – 59 DAYS PAST DUE | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	3.1	2.0
Commercial | 30 – 59 DAYS PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 30 – 59 DAYS PAST DUE | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 30 – 59 DAYS PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 60 – 89 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	2.1	1.2
Commercial | 60 – 89 DAYS PAST DUE | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	2.1	1.2
Commercial | 60 – 89 DAYS PAST DUE | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 60 – 89 DAYS PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 60 – 89 DAYS PAST DUE | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 60 – 89 DAYS PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 90 DAYS OR MORE PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.4	0.0
Commercial | 90 DAYS OR MORE PAST DUE | Commercial and Institutional
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.4	0.0
Commercial | 90 DAYS OR MORE PAST DUE | Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 90 DAYS OR MORE PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 90 DAYS OR MORE PAST DUE | Lease Financing, net
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Commercial | 90 DAYS OR MORE PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Personal
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	21,957.0	18,432.6
NONACCRUAL	36.2	65.1
TOTAL LOANS AND LEASES	21,993.2	18,497.7
NONACCRUAL WITH NO ALLOWANCE	36.2	56.7
Personal | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	15,256.3	11,812.2
NONACCRUAL	0.0	2.9
TOTAL LOANS AND LEASES	15,256.3	11,815.1
NONACCRUAL WITH NO ALLOWANCE	0.0	2.9
Personal | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	6,283.7	5,973.5
NONACCRUAL	36.2	62.2
TOTAL LOANS AND LEASES	6,319.9	6,035.7
NONACCRUAL WITH NO ALLOWANCE	36.2	53.8
Personal | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	381.8	597.9
NONACCRUAL	0.0	0.0
TOTAL LOANS AND LEASES	381.8	597.9
NONACCRUAL WITH NO ALLOWANCE	0.0	0.0
Personal | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	35.2	49.0
NONACCRUAL	0.0	0.0
TOTAL LOANS AND LEASES	35.2	49.0
NONACCRUAL WITH NO ALLOWANCE	0.0	0.0
Personal | CURRENT
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	21,617.3	18,357.1
Personal | CURRENT | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	14,927.3	11,765.4
Personal | CURRENT | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	6,273.2	5,946.0
Personal | CURRENT | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	381.6	596.7
Personal | CURRENT | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	35.2	49.0
Personal | 30 – 59 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	236.7	53.8
Personal | 30 – 59 DAYS PAST DUE | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	229.5	29.1
Personal | 30 – 59 DAYS PAST DUE | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	7.0	23.5
Personal | 30 – 59 DAYS PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.2	1.2
Personal | 30 – 59 DAYS PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Personal | 60 – 89 DAYS PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	75.1	12.8
Personal | 60 – 89 DAYS PAST DUE | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	71.8	9.9
Personal | 60 – 89 DAYS PAST DUE | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	3.3	2.9
Personal | 60 – 89 DAYS PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Personal | 60 – 89 DAYS PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Personal | 90 DAYS OR MORE PAST DUE
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	27.9	8.9
Personal | 90 DAYS OR MORE PAST DUE | Private Client
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	27.7	7.8
Personal | 90 DAYS OR MORE PAST DUE | Residential Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.2	1.1
Personal | 90 DAYS OR MORE PAST DUE | Non-U.S.
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	0.0	0.0
Personal | 90 DAYS OR MORE PAST DUE | Other
Financing Receivable, Credit Quality Indicator [Line Items]
TOTAL ACCRUAL	$ 0.0	$ 0.0

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Loans and Leases (Troubled Debt Restructurings) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	19	25
RECORDED INVESTMENT	$ 56.9	$ 40.5
UNPAID PRINCIPAL BALANCE	63.5	$ 41.2
Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
RECORDED INVESTMENT	5.6
UNPAID PRINCIPAL BALANCE	$ 5.6
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	9	3
RECORDED INVESTMENT	$ 55.6	$ 24.3
UNPAID PRINCIPAL BALANCE	$ 62.0	$ 24.5
Commercial | Commercial and Institutional
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	6	3
RECORDED INVESTMENT	$ 19.6	$ 24.3
UNPAID PRINCIPAL BALANCE	$ 19.6	$ 24.5
Commercial | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	3
RECORDED INVESTMENT	$ 36.0
UNPAID PRINCIPAL BALANCE	$ 42.4
Personal
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	10	22
RECORDED INVESTMENT	$ 1.3	$ 16.2
UNPAID PRINCIPAL BALANCE	$ 1.5	$ 16.7
Personal | Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	10	22
RECORDED INVESTMENT	$ 1.3	$ 16.2
UNPAID PRINCIPAL BALANCE	$ 1.5	$ 16.7

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Loans and Leases (COVID-19 Loan Modifications Not Considered TDRS) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) contract	Dec. 31, 2020 contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	19	25
CARES Act | Active Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	3,000,000
LOAN VOLUME	$ 2.0
CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	390,000,000
LOAN VOLUME	$ 835.6
DEFERRED PRINCIPAL AMOUNT	1.2
DEFERRED INTEREST AMOUNT	$ 6.3
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	9	3
Commercial | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	153,000,000
LOAN VOLUME	$ 590.5
DEFERRED PRINCIPAL AMOUNT	0.1
DEFERRED INTEREST AMOUNT	$ 4.0
Commercial | Commercial and Institutional
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	6	3
Commercial | Commercial and Institutional | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	73,000,000
LOAN VOLUME	$ 199.8
DEFERRED PRINCIPAL AMOUNT	0.1
DEFERRED INTEREST AMOUNT	$ 1.6
Commercial | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	3
Commercial | Commercial Real Estate | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	80,000,000
LOAN VOLUME	$ 390.7
DEFERRED PRINCIPAL AMOUNT	0.0
DEFERRED INTEREST AMOUNT	$ 2.4
Personal
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	10	22
Personal | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	237,000,000
LOAN VOLUME	$ 245.1
DEFERRED PRINCIPAL AMOUNT	1.1
DEFERRED INTEREST AMOUNT	$ 2.3
Personal | Private Client | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	29,000,000
LOAN VOLUME	$ 143.1
DEFERRED PRINCIPAL AMOUNT	0.0
DEFERRED INTEREST AMOUNT	$ 1.0
Personal | Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	10	22
Personal | Residential Real Estate | CARES Act | Completed Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
NUMBER OF COVID-19 RELATED MODIFICATIONS | contract	208,000,000
LOAN VOLUME	$ 102.0
DEFERRED PRINCIPAL AMOUNT	1.1
DEFERRED INTEREST AMOUNT	$ 1.3

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Allowance for Credit Losses (Narrative) (Details) - USD ($)		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Time period used for projecting future conditions to estimate credit losses		2 years
Provision for credit losses		$ (81,500,000)	$ 125,000,000	$ (14,500,000)
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery		(6,300,000)	3,200,000	(700,000)
Other-than-temporary impairment loss, debt securities, portion recognized in earnings	$ 4,400,000	0	0	300,000
Other financial assets, allowance for credit loss, excluding accrued interest		1,000,000	800,000	$ 0
Other Financial Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, accrued interest, writeoff		$ 0	$ 0

XML

Allowance for Credit Losses (Changes in Allowance for Credit Losses) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 190.7	$ 104.5	$ 112.6
Charge-Offs	(0.7)	(9.7)	(6.5)
Recoveries	7.0	6.5	7.2
Net Recoveries (Charge-Offs)	6.3	(3.2)	0.7
Provision for Credit Losses	(58.6)	91.6	(8.8)
Balance at end of period	138.4	190.7	104.5
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period	61.1	19.9	25.6
Charge-Offs	0.0	0.0	0.0
Recoveries	0.0	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0	0.0
Provision for Credit Losses	(27.0)	32.3	(5.7)
Balance at End of Period	34.1	61.1	19.9
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	7.3	0.0
Charge-Offs	0.0	0.0
Recoveries	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0
Provision for Credit Losses	3.9	0.7
Balance at end of period	11.2	7.3	0.0
OTHER FINANCIAL ASSETS
Balance at Beginning of Period	0.8	0.0
Charge-Offs	0.0	0.0
Recoveries	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0
Provision for Credit Losses	0.2	0.4
Balance at End of Period	1.0	0.8	0.0
TOTAL
Balance at Beginning of Period	259.9	124.4	138.2
Charge-Offs	(0.7)	(9.7)	(6.5)
Recoveries	7.0	6.5	7.2
Net Recoveries (Charge-Offs)	6.3	(3.2)	0.7
Provision for Credit Losses	(81.5)	125.0	(14.5)
Balance at End of Period	$ 184.7	259.9	124.4
Cumulative Effect Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period		(2.2)
Balance at end of period			(2.2)
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		8.9
Balance at End of Period			8.9
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		6.6
Balance at end of period			6.6
OTHER FINANCIAL ASSETS
Balance at Beginning of Period		0.4
Balance at End of Period			0.4
TOTAL
Balance at Beginning of Period		13.7
Balance at End of Period			13.7
Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period		102.3
Balance at end of period			102.3
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		28.8
Balance at End of Period			28.8
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		6.6
Balance at end of period			6.6
OTHER FINANCIAL ASSETS
Balance at Beginning of Period		0.4
Balance at End of Period			0.4
TOTAL
Balance at Beginning of Period		$ 138.1
Balance at End of Period			$ 138.1

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Allowance for Credit Losses (Changes in Allowance for Credit Losses Related to Loan and Leases) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
LOANS AND LEASES
Balance at beginning of period	$ 190.7	$ 104.5	$ 112.6
Charge-Offs	(0.7)	(9.7)	(6.5)
Recoveries	7.0	6.5	7.2
Net Recoveries (Charge-Offs)	6.3	(3.2)	0.7
Provision for Credit Losses	(58.6)	91.6	(8.8)
Balance at end of period	138.4	190.7	104.5
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period	61.1	19.9	25.6
Charge-Offs	0.0	0.0	0.0
Recoveries	0.0	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0	0.0
Provision for Credit Losses	(27.0)	32.3	(5.7)
Balance at End of Period	34.1	61.1	19.9
COMMERCIAL
LOANS AND LEASES
Balance at beginning of period	142.2	58.1	57.6
Charge-Offs	(0.3)	(6.3)	(3.0)
Recoveries	0.9	2.4	0.9
Net Recoveries (Charge-Offs)	0.6	(3.9)	(2.1)
Provision for Credit Losses	(37.2)	93.9	2.6
Balance at end of period	105.6	142.2	58.1
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period	57.6	15.8	21.1
Charge-Offs	0.0	0.0	0.0
Recoveries	0.0	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0	0.0
Provision for Credit Losses	(26.2)	29.9	(5.3)
Balance at End of Period	31.4	57.6	15.8
PERSONAL
LOANS AND LEASES
Balance at beginning of period	48.5	46.4	55.0
Charge-Offs	(0.4)	(3.4)	(3.5)
Recoveries	6.1	4.1	6.3
Net Recoveries (Charge-Offs)	5.7	0.7	2.8
Provision for Credit Losses	(21.4)	(2.3)	(11.4)
Balance at end of period	32.8	48.5	46.4
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period	3.5	4.1	4.5
Charge-Offs	0.0	0.0	0.0
Recoveries	0.0	0.0	0.0
Net Recoveries (Charge-Offs)	0.0	0.0	0.0
Provision for Credit Losses	(0.8)	2.4	(0.4)
Balance at End of Period	$ 2.7	3.5	4.1
Cumulative Effect Adjustment
LOANS AND LEASES
Balance at beginning of period		(2.2)
Balance at end of period			(2.2)
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		8.9
Balance at End of Period			8.9
Cumulative Effect Adjustment | COMMERCIAL
LOANS AND LEASES
Balance at beginning of period		(5.9)
Balance at end of period			(5.9)
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		11.9
Balance at End of Period			11.9
Cumulative Effect Adjustment | PERSONAL
LOANS AND LEASES
Balance at beginning of period		3.7
Balance at end of period			3.7
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		(3.0)
Balance at End of Period			(3.0)
Adjusted Balance
LOANS AND LEASES
Balance at beginning of period		102.3
Balance at end of period			102.3
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		28.8
Balance at End of Period			28.8
Adjusted Balance | COMMERCIAL
LOANS AND LEASES
Balance at beginning of period		52.2
Balance at end of period			52.2
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		27.7
Balance at End of Period			27.7
Adjusted Balance | PERSONAL
LOANS AND LEASES
Balance at beginning of period		50.1
Balance at end of period			50.1
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
Balance at Beginning of Period		$ 1.1
Balance at End of Period			$ 1.1

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Allowance for Credit Losses (Recorded Investments in Loans and Leases) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases
Evaluated on an Individual Basis	$ 166.6	$ 131.7
Evaluated on a Collective Basis	40,314.0	33,628.0
TOTAL LOANS AND LEASES	40,480.6	33,759.7
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	10.1	9.1
Evaluated on a Collective Basis	128.3	181.6
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	138.4	190.7	$ 104.5	$ 112.6
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	0.0	1.6
Evaluated on a Collective Basis	34.1	59.5
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	34.1	61.1	19.9	25.6
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	172.5	251.8
COMMERCIAL
Loans and Leases
Evaluated on an Individual Basis	92.1	66.6
Evaluated on a Collective Basis	18,395.3	15,195.4
TOTAL LOANS AND LEASES	18,487.4	15,262.0
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	10.1	8.8
Evaluated on a Collective Basis	95.5	133.4
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	105.6	142.2	58.1	57.6
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	0.0	1.6
Evaluated on a Collective Basis	31.4	56.0
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	31.4	57.6	15.8	21.1
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	137.0	199.8
PERSONAL
Loans and Leases
Evaluated on an Individual Basis	74.5	65.1
Evaluated on a Collective Basis	21,918.7	18,432.6
TOTAL LOANS AND LEASES	21,993.2	18,497.7
Allowance for Credit Losses on Credit Exposures
Evaluated on an Individual Basis	0.0	0.3
Evaluated on a Collective Basis	32.8	48.2
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	32.8	48.5	46.4	55.0
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis	0.0	0.0
Evaluated on a Collective Basis	2.7	3.5
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit	2.7	3.5	$ 4.1	$ 4.5
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit	$ 35.5	$ 52.0

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Allowance for Credit Losses (Changes in The Allowance for Credit Losses Related to Debt Securities Held to Maturity) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	$ 7.3	$ 0.0
Provision for Credit Losses	3.9	0.7
Balance at end of period	11.2	7.3
Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		6.6
Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		6.6
CORPORATE DEBT
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	0.8	0.0
Provision for Credit Losses	0.6	0.0
Balance at end of period	1.4	0.8
CORPORATE DEBT | Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.8
CORPORATE DEBT | Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.8
Non-U.S. Government
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	0.2	0.0
Provision for Credit Losses	1.7	(0.1)
Balance at end of period	1.9	0.2
Non-U.S. Government | Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.3
Non-U.S. Government | Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.3
SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	1.2	0.0
Provision for Credit Losses	1.8	0.3
Balance at end of period	3.0	1.2
SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS | Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.9
SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS | Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.9
COVERED BONDS
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	0.1	0.0
Provision for Credit Losses	0.0	0.1
Balance at end of period	0.1	0.1
COVERED BONDS | Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.0
COVERED BONDS | Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		0.0
OTHER
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period	5.0	0.0
Provision for Credit Losses	(0.2)	0.4
Balance at end of period	$ 4.8	5.0
OTHER | Cumulative Effect Adjustment
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		4.6
OTHER | Adjusted Balance
HELD TO MATURITY DEBT SECURITIES
Balance at beginning of period		$ 4.6

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Allowance for Credit Losses (Accrued Interest) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Loans and Leases	$ 62.6	$ 55.3
Debt Securities
Held to Maturity	30.4	26.5
Available for Sale	129.7	153.6
Other Financial Assets	2.3	1.4
Interest Receivable	$ 225.0	$ 236.8

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Concentrations of Credit Risk - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Interest bearing balances held at banks	$ 1,900.0	$ 4,400.0
Credit risk to banks	3,000.0	4,300.0
Federal funds sold and securities purchased under agreements to resell	686.4
Securities purchased under agreements to resell	686.4	1,596.5
Residential real estate	$ 6,300.0	$ 6,000.0
Residential real estate loans as percentage of total U.S. loans	17.00%	19.00%
Residential Real Estate
Concentration Risk [Line Items]
Legally binding undrawn commitments to extend credit	$ 665.9	$ 676.1
Commercial Real Estate | Letter of Credit
Concentration Risk [Line Items]
Legally binding undrawn commitments to extend credit	357.9	252.3
Commercial Real Estate | Standby Letters of Credit
Concentration Risk [Line Items]
Legally binding undrawn commitments to extend credit	30.0	$ 4.5
Florida
Concentration Risk [Line Items]
Residential real estate	1,600.0
California
Concentration Risk [Line Items]
Residential real estate	1,400.0
Greater Chicago Area
Concentration Risk [Line Items]
Residential real estate	$ 700.0

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Concentrations of Credit Risk - Commercial Real Estate Loans (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Commercial Mortgages
TOTAL LOANS AND LEASES	$ 40,480.6	$ 33,759.7
Mortgages
Commercial Mortgages
Office	1,011.4	831.3
Apartment/ Multi-family	1,288.8	906.8
Retail	601.8	561.3
Industrial/ Warehouse	442.9	344.2
Other	516.8	409.9
TOTAL LOANS AND LEASES	3,861.7	3,053.5
Commercial Real Estate
Commercial Mortgages
TOTAL LOANS AND LEASES	4,326.3	3,558.4
Construction, Acquisition and Development Loans	$ 464.6	$ 504.9

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Buildings and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
ORIGINAL COST	$ 1,221.1	$ 1,612.6
ACCUMULATED DEPRECIATION	732.4	1,097.7
NET BOOK VALUE	488.7	514.9
Land and Improvements
Property, Plant and Equipment [Line Items]
ORIGINAL COST	11.5	14.5
ACCUMULATED DEPRECIATION	0.3	0.5
NET BOOK VALUE	11.2	14.0
Buildings
Property, Plant and Equipment [Line Items]
ORIGINAL COST	217.6	257.8
ACCUMULATED DEPRECIATION	136.5	163.0
NET BOOK VALUE	81.1	94.8
Equipment
Property, Plant and Equipment [Line Items]
ORIGINAL COST	478.4	816.4
ACCUMULATED DEPRECIATION	275.4	596.8
NET BOOK VALUE	203.0	219.6
Leasehold Improvements
Property, Plant and Equipment [Line Items]
ORIGINAL COST	513.6	523.9
ACCUMULATED DEPRECIATION	320.2	337.4
NET BOOK VALUE	$ 193.4	$ 186.5

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Buildings and Equipment - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation of assets	$ 110.8	$ 116.5	$ 103.2

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Lease Commitments - Lease Cost Components (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease Cost	$ 96.2	$ 119.4
Variable Lease Cost	37.3	32.7
Sublease Income	(4.5)	(4.8)
Total Lease Cost	$ 129.0	$ 147.3

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Lease Commitments - Maturity of Lease Liability (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2022	$ 93.2
2023	88.9
2024	80.3
2025	82.6
2026	61.7
Later Years	346.5
Total Lease Payments	753.2
Less: Imputed Interest	(90.1)
Present Value of Lease Liabilities	$ 663.1	$ 700.6

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Lease Commitments - Narrative (Detail) $ in Millions	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Lessee, operating lease, lease not yet commenced, liability	$ 22.0
Lower Limit
Lessee, Lease, Description [Line Items]
Lease terms (in years)	10 years
Upper Limit
Lessee, Lease, Description [Line Items]
Lease terms (in years)	12 years

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Lease Commitments - Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Assets
Operating Lease Right-of-Use Asset	$ 531.2	$ 560.5
Liabilities
Operating Lease Liability	$ 663.1	$ 700.6
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities

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Lease Commitments - Weighted-Average Remaining Lease Term and Discount Rate (Detail)	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
Weighted-Average Remaining Lease Term	9 years 7 months 6 days	10 years
Weighted-Average Discount Rate	2.40%	2.50%

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Lease Commitments - Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows	$ 69.5	$ 107.9
Supplemental non-cash information
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 58.5	$ 164.8

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Goodwill and Other Intangibles - Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning Balance	$ 707.2	$ 696.8
Goodwill Acquired	4.2
Foreign Exchange Rates	(5.2)	10.4
Ending Balance	706.2	707.2
Goodwill, Transfers		9.3
CORPORATE & INSTITUTIONAL SERVICES
Goodwill [Roll Forward]
Beginning Balance	626.7	616.4
Goodwill Acquired	4.2
Foreign Exchange Rates	(5.2)	10.3
Ending Balance	625.7	626.7
WEALTH MANAGEMENT
Goodwill [Roll Forward]
Beginning Balance	80.5	80.4
Goodwill Acquired	0.0
Foreign Exchange Rates	0.0	0.1
Ending Balance	$ 80.5	$ 80.5

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Goodwill and Other Intangibles - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 706.2	$ 707.2	$ 696.8
Amortization of intangible assets		14.8	16.9	16.6
Other Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		14.8	16.9	16.6
Estimated future amortization expense for 2022		9.9
Estimated future amortization expense for 2023		9.6
Estimated future amortization expense for 2024		9.5
Estimated future amortization expense for 2025		8.9
Estimated future amortization expense for 2026		8.6
Computer Software
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 390.1	$ 366.9	$ 339.1
Parilux Investment Technology, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Purchase price	$ 17.6
Goodwill	4.2
Intangible assets acquired	$ 13.4

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Goodwill and Other Intangibles - Other Intangible Assets and Capitalized Software (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Other Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 206.4	$ 221.3
Less: Accumulated Amortization	114.8	108.7
Net Book Value	91.6	112.6
Computer Software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,982.1	4,337.4
Less: Accumulated Amortization	1,299.5	2,744.5
Net Book Value	$ 1,682.6	$ 1,592.9

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Deposits - Scheduled Maturity of Total Time Deposits (Details) $ in Millions	Dec. 31, 2021 USD ($)
Time Deposits [Line Items]
1 Year or Less	$ 1,008.8
Over 1 Year to 2 Years	13.8
Over 2 Years to 3 Years	1.5
Over 3 Years to 4 Years	0.3
Over 4 Years to 5 Years	0.8
Over 5 Years	0.0
Total	1,025.2
U.S. OFFICE
Time Deposits [Line Items]
1 Year or Less	625.3
Over 1 Year to 2 Years	13.8
Over 2 Years to 3 Years	1.5
Over 3 Years to 4 Years	0.3
Over 4 Years to 5 Years	0.8
Over 5 Years	0.0
Total	641.7
NON-U.S. OFFICES
Time Deposits [Line Items]
1 Year or Less	383.5
Over 1 Year to 2 Years	0.0
Over 2 Years to 3 Years	0.0
Over 3 Years to 4 Years	0.0
Over 4 Years to 5 Years	0.0
Over 5 Years	0.0
Total	$ 383.5

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Deposits - Narrative (Details) $ in Millions	Dec. 31, 2020 USD ($)
Banking And Thrift, Time Deposits [Abstract]
Time Deposits, at or Above FDIC Insurance Limit	$ 906.8
Time deposits, certificates of deposits	701.4
Time deposits, non-U.S	$ 205.4

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Senior Notes and Long-Term Debt - Senior Notes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Senior Notes	$ 2,505.5	$ 3,122.4
Fixed Rate Due Aug. 2021
Debt Instrument [Line Items]
Interest rate	3.375%
Senior Notes	$ 0.0	499.8
Fixed Rate Due Aug. 2022
Debt Instrument [Line Items]
Interest rate	2.375%
Senior Notes	$ 499.8	499.6
Fixed Rate Due Aug. 2028
Debt Instrument [Line Items]
Interest rate	3.65%
Senior Notes	$ 548.5	584.4
Fixed Rate Due May. 2029
Debt Instrument [Line Items]
Interest rate	3.15%
Senior Notes	$ 533.9	567.9
Fixed Rate Due May. 2030
Debt Instrument [Line Items]
Interest rate	1.95%
Senior Notes	$ 923.3	970.7
Senior Notes
Debt Instrument [Line Items]
Debt issue costs	2.9
Senior Notes | Interest Rate Swaps
Debt Instrument [Line Items]
Change in unrealized gain (loss) on hedged item in fair value hedge	$ 12.5	$ 130.7

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Senior Notes and Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total corporation subordinated debt	$ 1,145.7	$ 1,189.3
Long-Term Debt Qualifying as Risk-Based Capital	$ 799.8	949.7
Redemption price, percentage	100.00%
Corporation Subordinated Notes
Debt Instrument [Line Items]
Total corporation subordinated debt	$ 1,145.7	1,189.3
Corporation-Subordinated 3.95% Notes due Oct. 2025
Debt Instrument [Line Items]
Interest rate	3.95%
Total corporation subordinated debt	$ 796.2	839.8
Corporation Subordinated 3.375% Notes due May 2032
Debt Instrument [Line Items]
Interest rate	3.375%
Total corporation subordinated debt	$ 349.5	349.5
Debt instrument, basis spread on variable rate	1.131%
Secured Debt
Debt Instrument [Line Items]
Debt issue costs	$ 0.9
Subordinated Debt | Interest Rate Swaps
Debt Instrument [Line Items]
Increases in the carrying values of notes outstanding covered by interest-rate swap contracts	$ 46.9	$ 90.8

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Floating Rate Capital Debt - Narrative (Detail) - USD ($)		1 Months Ended		12 Months Ended
	Oct. 15, 2021	Apr. 30, 1997	Jan. 31, 1997	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Liquidation amount per security (in usd per share)				$ 1,000
Repayments of subordinated debt	$ 278,800,000			$ 278,800,000	$ 0	$ 0
NTC Capital I Subordinated Debentures
Debt Instrument [Line Items]
Floating rate capital securities, issued			$ 150,000,000
Debt instrument, basis spread on variable rate			0.52%
Liquidation amount per security (in usd per share)				$ 1,000
Repayments of subordinated debt	154,900,000
NTC Capital II Subordinated Debentures
Debt Instrument [Line Items]
Floating rate capital securities, issued		$ 120,000,000
Debt instrument, basis spread on variable rate		0.59%
Liquidation amount per security (in usd per share)				$ 1,000
Repayments of subordinated debt	$ 123,900,000
London Interbank Offered Rate (LIBOR) | NTC Capital I Subordinated Debentures
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				0.605%
London Interbank Offered Rate (LIBOR) | NTC Capital II Subordinated Debentures
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				0.679%

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Floating Rate Capital Debt - Subordinated Debentures (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Outstanding [Line Items]
Floating rate capital debt	$ 0.0	$ 277.8
NTC Capital I Subordinated Debentures
Debt Outstanding [Line Items]
Floating rate capital debt	0.0	154.3
NTC Capital II Subordinated Debentures
Debt Outstanding [Line Items]
Floating rate capital debt	$ 0.0	$ 123.5

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Stockholders' Equity - Narrative (Detail) - USD ($)		12 Months Ended
	Oct. 19, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jul. 31, 2018
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)		10,000,000	10,000,000
Proceeds from issuance of preferred stock		$ 0	$ 0	$ 392,500,000
Treasury stock, shares, acquired (in shares)		2,527,544
Treasury stock, share-based compensation shares, acquired (in shares)		394,326
Treasury stock, value, acquired, cost method		$ 267,600,000	$ 299,800,000	$ 1,100,200,000
Number of shares authorized to be repurchased (in shares)					25,000,000
Average price paid per share for common stock repurchased (in dollars per share)		$ 105.90	$ 91.49	$ 93.40
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)		5,000	5,000
Per share ownership interest, percentage		1.00%
Preferred stock		$ 493,500,000	$ 493,500,000
Preferred stock, par value (in dollars per share)		$ 0
Preferred stock, liquidation preference		$ 100,000
Depository shares, liquidation preference (in dollars per share)		$ 1,000
Preferred stock, annual dividend rate		4.60%
Preferred stock, variable rate		3.202%
Series E Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding (in shares)		16,000	16,000
Per share ownership interest, percentage		0.10%
Preferred stock		$ 391,400,000	$ 391,400,000
Preferred stock, par value (in dollars per share)		$ 0
Preferred stock, liquidation preference		$ 25,000
Depository shares, liquidation preference (in dollars per share)		$ 25
Preferred stock, annual dividend rate		4.70%
Proceeds from issuance of preferred stock		$ 391,400,000	$ 391,400,000
Preferred stock, dividends per share, declared (in dollars per share)	$ 293.75
Series D Preferred Stock, Depositary Shares
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		500,000
Series E Preferred Stock, Depositary Shares
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		16,000,000

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Stockholders' Equity - Shares of Common Stock (Detail) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares)	208,289,178	209,709,046	219,012,050
Incentive Plan and Awards (in shares)	1,162,484	1,512,035	1,688,931
Stock Options Exercised (in shares)	837,757	344,686	786,931
Treasury Stock Purchased (in shares)	(2,527,544)	(3,276,589)	(11,778,866)
Ending balance (in shares)	207,761,875	208,289,178	209,709,046

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Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	$ 11,688.3	$ 11,091.0	$ 10,508.3
Net Change	(463.6)	622.7	259.0
Balance, end of period	12,016.8	11,688.3	11,091.0
TOTAL
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	428.0	(194.7)	(453.7)
Balance, end of period	(35.6)	428.0	(194.7)
NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	641.8	114.0	(114.9)
Net Change	(534.7)	527.8	228.9
Balance, end of period	107.1	641.8	114.0
NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(3.2)	(3.7)	4.0
Net Change	0.8	0.5	(7.7)
Balance, end of period	(2.4)	(3.2)	(3.7)
NET FOREIGN CURRENCY ADJUSTMENT
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	144.7	117.8	67.9
Net Change	10.5	26.9	49.9
Balance, end of period	155.2	144.7	117.8
NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(355.3)	(422.8)	(410.7)
Net Change	59.8	67.5	(12.1)
Balance, end of period	$ (295.5)	$ (355.3)	$ (422.8)

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Accumulated Other Comprehensive Income (Loss) - Details of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
BEFORE TAX
Net Change	$ (590.2)	$ 790.8	$ 347.9
TAX EFFECT
Net Change	126.6	(168.1)	(88.9)
AFTER TAX
Net Change	(463.6)	622.7	259.0
U.S. Plan | Pension Plans, Defined Benefit
AFTER TAX
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement	(27.9)	0.0	0.0
Unrealized Gains (Losses) on Available for Sale Debt Securities
BEFORE TAX
Gains (Losses)	(685.0)	706.8	306.1
Net Change	(721.3)	707.2	307.2
TAX EFFECT
Gains (Losses)	177.5	(179.3)	(78.0)
Net Change	186.6	(179.4)	(78.3)
AFTER TAX
Gains (Losses)	(507.5)	527.5	228.1
Net Change	(534.7)	527.8	228.9
Interest income on debt securities
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(36.6)	0.0	0.0
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	9.2	0.0	0.0
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(27.4)	0.0	0.0
Net gains on debt securities
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	0.3	0.4	1.1
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	(0.1)	(0.1)	(0.3)
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	0.2	0.3	0.8
Unrealized (Losses) Gains on Cash Flow Hedges
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(4.5)	(28.1)	(26.7)
Net Change	1.1	0.8	(10.3)
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	1.1	7.0	6.6
Net Change	(0.3)	(0.3)	2.6
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(3.4)	(21.1)	(20.1)
Net Change	0.8	0.5	(7.7)
Foreign Currency Adjustments
BEFORE TAX
Net Change	53.4	(7.5)	65.6
TAX EFFECT
Net Change	(42.9)	34.4	(15.7)
AFTER TAX
Net Change	10.5	26.9	49.9
Foreign Currency Translation Adjustments
BEFORE TAX
Net Change	(133.8)	169.1	6.4
TAX EFFECT
Net Change	4.1	(8.3)	(1.6)
AFTER TAX
Net Change	(129.7)	160.8	4.8
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains
BEFORE TAX
Net Change	0.6	2.1	(0.5)
TAX EFFECT
Net Change	(0.1)	(0.5)	0.1
AFTER TAX
Net Change	0.5	1.6	(0.4)
Net Investment Hedge Gains (Losses)
BEFORE TAX
Net Change	186.6	(178.7)	59.7
TAX EFFECT
Net Change	(46.9)	43.2	(14.2)
AFTER TAX
Net Change	139.7	(135.5)	45.5
Pension and Other Postretirement Benefit Adjustments
BEFORE TAX
Gains (Losses)	7.9	47.4	(36.8)
Net Change	76.6	90.3	(14.6)
TAX EFFECT
Gains (Losses)	0.2	(12.3)	7.9
Net Change	(16.8)	(22.8)	2.5
AFTER TAX
Gains (Losses)	8.1	35.1	(28.9)
Net Change	59.8	67.5	(12.1)
Amortization of Net Actuarial Loss
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	41.4	42.2	22.4
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	(10.3)	(10.4)	(5.4)
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	31.1	31.8	17.0
Amortization of Prior Service Cost (Credit)
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(1.0)	(0.1)	(0.2)
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	0.3	0.0	0.0
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	(0.7)	(0.1)	(0.2)
Settlement Loss
BEFORE TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	28.3	0.8	0.0
TAX EFFECT
Reclassification Adjustment for Losses (Gains) Included in Net Income	(7.0)	(0.1)	0.0
AFTER TAX
Reclassification Adjustment for Losses (Gains) Included in Net Income	21.3	0.7	0.0
Foreign Exchange Contracts | Unrealized (Losses) Gains on Cash Flow Hedges
BEFORE TAX
Gains (Losses)	5.6	28.9	14.9
TAX EFFECT
Gains (Losses)	(1.4)	(7.3)	(3.7)
AFTER TAX
Gains (Losses)	4.2	21.6	11.2
Interest Rate Contracts | Unrealized (Losses) Gains on Cash Flow Hedges
BEFORE TAX
Gains (Losses)	0.0	0.0	1.5
TAX EFFECT
Gains (Losses)	0.0	0.0	(0.3)
AFTER TAX
Gains (Losses)	$ 0.0	$ 0.0	$ 1.2

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Net Income per Common Share - Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
BASIC NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding (in shares)	208,075,522	208,319,412	214,525,547
Net Income	$ 1,545.3	$ 1,209.3	$ 1,492.2
Less: Dividends on Preferred Stock	41.8	56.2	46.4
Net Income Applicable to Common Stock	1,503.5	1,153.1	1,445.8
Less: Earnings Allocated to Participating Securities	12.9	12.1	16.9
Earnings Allocated to Common Shares Outstanding	$ 1,490.6	$ 1,141.0	$ 1,428.9
Basic Net Income Per Common Share (in dollars per share)	$ 7.16	$ 5.48	$ 6.66
DILUTED NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding (in shares)	208,075,522	208,319,412	214,525,547
Plus Dilutive Effect of Share-based Compensation (in shares)	823,708	688,574	1,075,602
Average Common and Potential Common Shares (in shares)	208,899,230	209,007,986	215,601,149
Earnings Allocated to Common and Potential Common Shares	$ 1,490.6	$ 1,141.1	$ 1,428.9
Diluted Net Income Per Common Share (in dollars per share)	$ 7.14	$ 5.46	$ 6.63
Common stock equivalents not included in the computation of diluted earnings per share because their inclusion would have been antidilutive (in shares)	0	0	0

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Revenue from Contracts with Clients (Revenue Disaggregated by Major Source) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Trust, Investment and Other Servicing Fees	$ 4,361.1	$ 3,995.0	$ 3,852.1
Foreign Exchange Trading Income	292.6	290.4	250.9
Treasury Management Fees	44.3	45.4	44.5
Security Commissions and Trading Income	140.2	133.2	103.6
Other Operating Income	243.9	194.0	145.5
Investment Security Losses, net	(0.3)	(0.4)	(1.4)
Total Other Noninterest Income	720.7	662.6	543.1
Total Noninterest Income	5,081.8	4,657.6	4,395.2
Custody and Fund Administration
Disaggregation of Revenue [Line Items]
Trust, Investment and Other Servicing Fees	1,917.5	1,674.3	1,636.4
Investment Management and Advisory
Disaggregation of Revenue [Line Items]
Trust, Investment and Other Servicing Fees	2,140.0	2,029.3	1,930.6
Securities Lending
Disaggregation of Revenue [Line Items]
Trust, Investment and Other Servicing Fees	76.9	88.3	87.7
Other
Disaggregation of Revenue [Line Items]
Trust, Investment and Other Servicing Fees	$ 226.7	$ 203.1	$ 197.4

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Revenue from Contracts with Clients (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Trust, investment and other servicing fees	$ 4,361.1	$ 3,995.0	$ 3,852.1
Security commissions and trading income	140.2	133.2	103.6
Other operating income	243.9	194.0	145.5
Securities Commission and Trading
Disaggregation of Revenue [Line Items]
Trust, investment and other servicing fees	112.1	102.4	87.1
Products and Services, Other Operating Income
Disaggregation of Revenue [Line Items]
Trust, investment and other servicing fees	$ 53.9	$ 42.8	$ 41.8

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Revenue from Contracts with Clients (Client Receivables) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total Client Receivables	$ 1,052.1	$ 935.8
Trust Fees Receivable, net
Disaggregation of Revenue [Line Items]
Total Client Receivables	925.2	819.3
Contract with customer, asset, allowance for credit loss	10.9	7.2
Other
Disaggregation of Revenue [Line Items]
Total Client Receivables	$ 126.9	$ 116.5

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Net Interest Income - Net Interest Income (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest Income
Loans and Leases		$ 713.5	$ 774.6	$ 1,153.4
Securities – Taxable		667.6	812.4	1,070.7
Securities - Non-Taxable		1.5	1.4	3.8
Interest-Bearing Due from and Deposits with Banks		9.1	22.4	72.4
Federal Reserve and Other Central Bank Deposits and Other		14.8	32.7	199.6
Total Interest Income	$ 2,499.9	1,406.5	1,643.5	2,499.9
Interest Expense
Deposits		(61.3)	48.4	488.9
Federal Funds Purchased		(0.4)	2.2	25.9
Securities Sold under Agreements to Repurchase		0.2	1.0	6.4
Other Borrowings		14.2	45.3	181.7
Senior Notes		48.3	72.7	72.6
Long-Term Debt		21.1	26.5	38.3
Floating Rate Capital Debt		1.7	4.2	8.2
Total Interest Expense	$ 822.0	23.8	200.3	822.0
Net Interest Income		$ 1,382.7	$ 1,443.2	$ 1,677.9
Low and negative interest rates, percentage of interest-bearing deposits		68.00%

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Other Operating Income - (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Components of Other Operating Income [Line Items]
Total Other Operating Income	$ 243.9	$ 194.0	$ 145.5
Loan Service Fees
Components of Other Operating Income [Line Items]
Total Other Operating Income	66.6	52.5	48.0
Banking Service Fees
Components of Other Operating Income [Line Items]
Total Other Operating Income	50.9	46.1	45.6
Other Income
Components of Other Operating Income [Line Items]
Total Other Operating Income	$ 126.4	$ 95.4	$ 51.9

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Other Operating Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other Income and Other Expense [Line Items]
Business Promotion	$ 65.5	$ 59.2	$ 104.2
Staff Related	33.9	29.4	42.8
FDIC Insurance Premiums	14.6	11.8	9.9
Amortization of intangible assets	14.8	16.9	16.6
Other Expenses	170.3	229.4	156.3
Total Other Operating Expense	299.1	346.7	329.8
Noninterest expense	4,535.9	$ 4,348.2	$ 4,143.5
Lower Charges Associated with Account Servicing Activities And A Decline In Other Miscellaneous Expenses
Other Income and Other Expense [Line Items]
Noninterest expense	$ 43.4

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Income Taxes - Income Taxes (Detail)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory Federal Tax Rate	21.00%	21.00%	21.00%
Tax Exempt Income	(0.60%)	(0.90%)	(0.60%)
Foreign Tax Rate Differential	0.10%	0.70%	0.20%
Excess Tax Benefit Related to Share-Based Compensation	(0.40%)	(0.60%)	(0.90%)
Tax Credits	(1.60%)	(1.70%)	(1.00%)
Reversal of Tax Benefits Previously Recognized through Earnings	0.00%	1.60%	0.00%
State Taxes, net	3.40%	3.20%	2.80%
Valuation Allowance	0.60%	1.60%	1.50%
Other	0.60%	0.80%	0.20%
Effective Tax Rate	23.10%	25.70%	23.20%

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Income Taxes - Narrative (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Provision for income taxes	$ 464,800,000	$ 418,300,000	$ 451,900,000
Effective income tax rate reconciliation, percent	23.10%	25.70%	23.20%
Effective income tax rate reconciliation, prior year income taxes, amount	$ 26,800,000
Unrecognized tax benefit	25,300,000	$ 22,400,000	$ 25,300,000	$ 21,900,000
Increase in net income from recognition of unrecognized tax benefits	23,900,000	20,700,000
Interest and penalties, net of tax, included in the provision (benefit) for income taxes	400,000	1,200,000	$ 1,300,000
Income tax examination, penalties and interest accrued	9,200,000	9,600,000
Valuation allowance	68,200,000	55,200,000
State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards	400,000	500,000
Valuation allowance	400,000	500,000
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Valuation allowance	$ 67,800,000	$ 54,700,000

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Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning Balance	$ 22.4	$ 25.3	$ 21.9
Additions for Tax Positions Taken in the Current Year	1.2	0.9	0.9
Additions for Tax Positions Taken in Prior Years	4.2	0.4	4.0
Reductions for Tax Positions Taken in Prior Years	(2.5)	(4.2)	(1.5)
Reductions Resulting from Expiration of Statutes	0.0	0.0	0.0
Ending Balance	$ 25.3	$ 22.4	$ 25.3

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Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current Tax Provision:
Federal	$ 241.5	$ 203.0	$ 216.4
State	74.0	57.2	50.7
Non-U.S.	147.3	141.7	150.5
Total	462.8	401.9	417.6
Deferred Tax Provision:
Federal	(11.7)	8.8	16.5
State	12.0	5.4	16.5
Non-U.S.	1.7	2.2	1.3
Total	2.0	16.4	34.3
Provision for Income Taxes	$ 464.8	$ 418.3	$ 451.9

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Income Taxes - Tax Charges and Benefits Recorded Directly to Stockholders' Equity (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Tax Effect of Other Comprehensive Income	$ (126.6)	$ 168.1	$ 88.9

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Income Taxes - Deferred Tax Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Liabilities:
Lease Financing	$ 7.0	$ 9.0
Software Development	271.8	268.1
Depreciation and Amortization	181.3	147.0
Unrealized Gains on Securities, net	82.8	247.6
Compensation and Benefits	65.6	43.8
State Taxes, net	76.3	67.4
Other Liabilities	23.3	18.7
Gross Deferred Tax Liabilities	708.1	801.6
Deferred Tax Assets:
Allowance for Credit Losses	38.6	54.5
Tax Credit and Loss Carryforwards	68.2	55.2
Other Assets	85.4	38.4
Gross Deferred Tax Assets	192.2	148.1
Valuation Reserve	(68.2)	(55.2)
Deferred Tax Assets, net of Valuation Reserve	124.0	92.9
Net Deferred Tax Liabilities	$ 584.1	$ 708.7

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Employee Benefits - Narrative (Detail)	1 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Aug. 31, 2020 USD ($)	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021 USD ($) investment numberOfDerivativeInstruments age	Dec. 31, 2020 USD ($) numberOfDerivativeInstruments	Dec. 31, 2019 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Actuarial Loss (Gain)				$ (31,500,000)	$ 176,000,000
Number of investments held in diversified portfolios | investment				1
Number of derivatives held by the plan | numberOfDerivativeInstruments				3	5
Expected long-term rate of return on assets				5.25%
Postretirement Health Care, minimum retirement age | age				55
Postretirement Health Care, minimum service term				15 years
Estimated contribution defined contribution plans				$ 65,300,000	$ 62,900,000	$ 57,600,000
Trust for Benefit of Employees
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 117,800,000	137,500,000
Long Credit Bonds
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				55.00%
Global Equities
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				15.00%
Custom Completion
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				10.00%
High Yield Bonds
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				4.00%
Northern Trust Private Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				5.00%
Northern Trust Private Equity Funds | Upper Limit
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				20.00%
Emerging Market Debt
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				3.00%
Global Listed Infrastructure
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				3.00%
Real Estate
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				3.00%
Northern Trust Hedge Fund
Defined Benefit Plan Disclosure [Line Items]
Target allocation of plan assets				2.00%
Supplemental Plan
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 0	0
Prior service costs, amortization period (years)				10 years
Actuarial Loss (Gain)				$ (2,000,000.0)	20,400,000
Prior service (benefit) cost				$ 100,000	$ 200,000	200,000
Weighted average discount rate used in determining the accumulated postretirement benefit obligation				2.80%	2.45%
Other Postretirement Plan
Defined Benefit Plan Disclosure [Line Items]
Prior service costs, amortization period (years)	13 years 10 months 24 days
Actuarial Loss (Gain)				$ (3,300,000)	$ (100,000)
Prior service (benefit) cost	$ (12,700,000)			$ (900,000)	$ (300,000)	0
Weighted average discount rate used in determining the accumulated postretirement benefit obligation				2.56%	2.16%
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 1,708,900,000	$ 1,793,700,000
Contributions made to the pension plan				$ 6,700,000	10,600,000
Pension Plans, Defined Benefit | Lower Limit
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period				1 year
Pension Plans, Defined Benefit | Upper Limit
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period				15 years
Pension Plans, Defined Benefit | Northern Trust Private Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 34,500,000	20,300,000
Pension Plans, Defined Benefit | Northern Trust Hedge Fund
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 36,700,000	34,200,000
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period				60 days
Pension Plans, Defined Benefit | Domestic Common Stock
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 17,500,000	13,500,000
Pension Plans, Defined Benefit | Real Estate Funds
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 79,300,000	46,100,000
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period				45 days
U.S. Plan | Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Assets related to the pension plan				$ 1,708,900,000	1,793,700,000	$ 1,601,200,000
Contributions made to the pension plan				$ 0	0
Prior service costs, amortization period (years)				11 years
Actuarial Loss (Gain)				$ (19,100,000)	$ 136,500,000
Expected long-term rate of return on assets					5.25%	6.00%
Prior service (benefit) cost				$ (400,000)	$ (400,000)	$ (400,000)
Weighted average discount rate used in determining the accumulated postretirement benefit obligation		3.05%	3.06%	3.03%	2.75%
U.S. Plan | Pension Plans, Defined Benefit | Lower Limit
Defined Benefit Plan Disclosure [Line Items]
Contribution to plan assets				$ 0
Expected long-term rate of return on assets		5.25%	5.00%	5.25%	5.25%
U.S. Plan | Pension Plans, Defined Benefit | Upper Limit
Defined Benefit Plan Disclosure [Line Items]
Contribution to plan assets				$ 413,000,000
Expected long-term rate of return on assets				5.00%

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Employee Benefits - Employee Benefit Plan Status (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	$ 1,708.9			$ 1,793.7
Supplemental Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	125.5			139.8
Projected Benefit Obligation	147.7			162.3	$ 149.2
Plan Assets at Fair Value	0.0			0.0
Funded Status at end of year	$ (147.7)			$ (162.3)
Weighted-Average Assumptions:
Discount Rates	2.80%			2.45%
Rate of Increase in Compensation Level	4.97%			4.97%
U.S. Plan | Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	$ 1,246.6			$ 1,312.9
Projected Benefit Obligation	1,401.3			1,470.6	1,323.4
Plan Assets at Fair Value	1,708.9			1,793.7	1,601.2
Funded Status at end of year	$ 307.6			$ 323.1
Weighted-Average Assumptions:
Discount Rates	3.03%	3.06%	3.05%	2.75%
Rate of Increase in Compensation Level	4.97%			4.97%
Expected Long-Term Rate of Return on Assets	5.25%	5.00%	5.25%	5.25%
Non U.S. Plans | Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	$ 204.5			$ 228.5
Projected Benefit Obligation	210.1			236.1	211.1
Plan Assets at Fair Value	198.7			211.5	$ 190.1
Funded Status at end of year	$ (11.4)			$ (24.6)
Weighted-Average Assumptions:
Discount Rates	1.34%			0.93%
Rate of Increase in Compensation Level	1.50%			1.50%
Expected Long-Term Rate of Return on Assets	1.79%			1.28%

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Employee Benefits - Amounts Included in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Supplemental Plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net Actuarial Loss	$ 86.6	$ 96.3
Prior Service (Credit) Cost	0.0	0.1
Gross Amount in Accumulated Other Comprehensive Income	86.6	96.4
Income Tax Effect	21.7	23.9
Net Amount in Accumulated Other Comprehensive Income	64.9	72.5
U.S. Plan | Pension Plans, Defined Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net Actuarial Loss	273.8	332.4
Prior Service (Credit) Cost	(0.1)	(0.6)
Gross Amount in Accumulated Other Comprehensive Income	273.7	331.8
Income Tax Effect	68.7	82.1
Net Amount in Accumulated Other Comprehensive Income	205.0	249.7
Non U.S. Plans | Pension Plans, Defined Benefit
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net Actuarial Loss	40.4	49.0
Prior Service (Credit) Cost	0.6	2.2
Gross Amount in Accumulated Other Comprehensive Income	41.0	51.2
Income Tax Effect	5.2	6.4
Net Amount in Accumulated Other Comprehensive Income	$ 35.8	$ 44.8

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Employee Benefits - Net Periodic Pension Expense (Detail) - USD ($) $ in Millions	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-Average Assumptions:
Expected Long-Term Rate of Return on Assets			5.25%
Supplemental Plan
Defined Benefit plan Net periodic benefit cost
Service Cost			$ 5.3	$ 4.6	$ 4.1
Interest Cost			3.7	4.8	5.8
Expected Return on Plan Assets			0.0	0.0	0.0
Amortization:
Net Actuarial Loss			8.2	7.0	5.6
Prior Service (Credit) Cost			0.1	0.2	0.2
Net Periodic Pension Expense			17.3	16.6	15.7
Settlement Expense			0.0	0.0	0.0
Total Pension Expense			$ 17.3	$ 16.6	$ 15.7
Weighted-Average Assumptions:
Discount Rates			2.45%	3.37%	4.47%
Rate of Increase in Compensation Level			4.97%	4.97%	4.39%
U.S. Plan | Pension Plans, Defined Benefit
Defined Benefit plan Net periodic benefit cost
Service Cost			$ 52.3	$ 47.4	$ 41.6
Interest Cost			40.4	43.3	47.2
Expected Return on Plan Assets			(79.0)	(76.8)	(86.9)
Amortization:
Net Actuarial Loss			32.4	35.0	17.2
Prior Service (Credit) Cost			(0.4)	(0.4)	(0.4)
Net Periodic Pension Expense			45.7	48.5	18.7
Settlement Expense			27.9	0.0	0.0
Total Pension Expense			$ 73.6	$ 48.5	$ 18.7
Weighted-Average Assumptions:
Discount Rates				3.37%	4.47%
Rate of Increase in Compensation Level			4.97%	4.97%	4.39%
Expected Long-Term Rate of Return on Assets				5.25%	6.00%
U.S. Plan | Pension Plans, Defined Benefit | Lower Limit
Weighted-Average Assumptions:
Discount Rates			2.75%	2.75%
Expected Long-Term Rate of Return on Assets	5.25%	5.00%	5.25%	5.25%
U.S. Plan | Pension Plans, Defined Benefit | Upper Limit
Weighted-Average Assumptions:
Discount Rates	3.05%	3.06%	3.03%
Expected Long-Term Rate of Return on Assets			5.00%
Non U.S. Plans | Pension Plans, Defined Benefit
Defined Benefit plan Net periodic benefit cost
Service Cost			$ 2.2	$ 1.9	$ 2.0
Interest Cost			2.2	2.9	3.9
Expected Return on Plan Assets			(3.2)	(3.1)	(4.4)
Amortization:
Net Actuarial Loss			1.0	0.8	0.6
Prior Service (Credit) Cost			0.2	0.4	0.3
Net Periodic Pension Expense			2.4	2.9	2.4
Settlement Expense			0.4	0.8	0.0
Total Pension Expense			$ 2.8	$ 3.7	$ 2.4
Weighted-Average Assumptions:
Discount Rates			0.93%	1.40%	2.16%
Rate of Increase in Compensation Level			1.50%	1.50%	1.75%
Expected Long-Term Rate of Return on Assets			1.28%	1.72%	2.39%

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Employee Benefits - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Actuarial Loss (Gain)	$ (31.5)	$ 176.0
Supplemental Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning Balance	162.3	149.2
Service Cost	5.3	4.6	$ 4.1
Interest Cost	3.7	4.8	5.8
Employee Contributions	0.0	0.0
Plan Amendment	0.0	0.0
Actuarial Loss (Gain)	(2.0)	20.4
Settlement	0.0	0.0
Benefits Paid	(21.6)	(16.7)
Foreign Exchange Rate Changes	0.0	0.0
Ending Balance	147.7	162.3	149.2
U.S. Plan | Pension Plans, Defined Benefit
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning Balance	1,470.6	1,323.4
Service Cost	52.3	47.4	41.6
Interest Cost	40.4	43.3	47.2
Employee Contributions	0.0	0.0
Plan Amendment	0.0	0.0
Actuarial Loss (Gain)	(19.1)	136.5
Settlement	(132.1)	0.0
Benefits Paid	(10.8)	(80.0)
Foreign Exchange Rate Changes	0.0	0.0
Ending Balance	1,401.3	1,470.6	1,323.4
Non U.S. Plans | Pension Plans, Defined Benefit
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning Balance	236.1	211.1
Service Cost	2.2	1.9	2.0
Interest Cost	2.2	2.9	3.9
Employee Contributions	0.6	0.6
Plan Amendment	(1.4)	(0.5)
Actuarial Loss (Gain)	(10.4)	19.1
Settlement	(9.4)	(5.4)
Benefits Paid	(5.5)	(4.1)
Foreign Exchange Rate Changes	(4.3)	10.5
Ending Balance	$ 210.1	$ 236.1	$ 211.1

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Employee Benefits - Estimated Future Benefit Payments (Detail) $ in Millions	Dec. 31, 2021 USD ($)
Supplemental Plan
Schedule of Pension Expected Future Benefit Payments [Line Items]
2022	$ 20.0
2023	18.3
2024	11.7
2025	12.3
2026	13.3
2027-2031	63.9
U.S. Plan | Pension Plans, Defined Benefit
Schedule of Pension Expected Future Benefit Payments [Line Items]
2022	85.6
2023	94.2
2024	95.1
2025	99.0
2026	97.8
2027-2031	515.6
Non U.S. Plans | Pension Plans, Defined Benefit
Schedule of Pension Expected Future Benefit Payments [Line Items]
2022	4.4
2023	4.6
2024	4.7
2025	4.8
2026	5.6
2027-2031	$ 34.8

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Employee Benefits - Change In Plan Assets (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value at beginning of year	$ 1,793.7
Employer Contributions	6.7	$ 10.6
Fair Value at end of year	1,708.9	1,793.7
U.S. Plan
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value at beginning of year	1,793.7	1,601.2
Actual Return on Assets	58.1	272.5
Employer Contributions	0.0	0.0
Employee Contributions	0.0	0.0
Settlement	(132.1)	0.0
Benefits Paid	(10.8)	(80.0)
Foreign Exchange Rate Changes	0.0	0.0
Fair Value at end of year	1,708.9	1,793.7
Actual return on assets, reimbursement	0.1
Non U.S. Plans
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair Value at beginning of year	211.5	190.1
Actual Return on Assets	(0.8)	17.9
Employer Contributions	4.5	5.0
Employee Contributions	0.6	0.6
Settlement	(9.4)	(5.4)
Benefits Paid	(5.5)	(4.1)
Foreign Exchange Rate Changes	(2.2)	7.4
Fair Value at end of year	$ 198.7	$ 211.5

XML

Employee Benefits - Fair Value of U.S. Pension Plan Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Northern Trust Private Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List]	Fair Value Measured at Net Asset Value Per Share [Member]	Fair Value Measured at Net Asset Value Per Share [Member]
Northern Trust Hedge Fund
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List]	Fair Value Measured at Net Asset Value Per Share [Member]	Fair Value Measured at Net Asset Value Per Share [Member]
Real Estate Funds
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List]	Fair Value Measured at Net Asset Value Per Share [Member]	Fair Value Measured at Net Asset Value Per Share [Member]
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	$ 1,708.9	$ 1,793.7
Pension Plans, Defined Benefit | Domestic Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	17.5	13.5
Pension Plans, Defined Benefit | Foreign Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.3	314.4
Pension Plans, Defined Benefit | Domestic Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	341.7
Pension Plans, Defined Benefit | Foreign Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	60.9	43.6
Pension Plans, Defined Benefit | U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	103.9	116.0
Pension Plans, Defined Benefit | Non-U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	20.0	22.9
Pension Plans, Defined Benefit | Domestic Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	21.0	22.4
Pension Plans, Defined Benefit | Foreign Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.3	0.3
Pension Plans, Defined Benefit | Collective Trust Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	837.2	985.5
Pension Plans, Defined Benefit | Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	108.9	167.0
Pension Plans, Defined Benefit | Cash and Other
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	46.7	7.5
Pension Plans, Defined Benefit | Northern Trust Private Equity Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	34.5	20.3
Pension Plans, Defined Benefit | Northern Trust Hedge Fund
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	36.7	34.2
Pension Plans, Defined Benefit | Real Estate Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	79.3	46.1
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	1,558.4	1,693.1
Pension Plans, Defined Benefit | LEVEL 1
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	173.4	190.9
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	17.5	13.5
Pension Plans, Defined Benefit | LEVEL 1 | Foreign Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.3	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Foreign Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 1 | U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	2.9
Pension Plans, Defined Benefit | LEVEL 1 | Non-U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Foreign Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Collective Trust Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 1 | Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	108.9	167.0
Pension Plans, Defined Benefit | LEVEL 1 | Cash and Other
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	46.7	7.5
Pension Plans, Defined Benefit | LEVEL 2
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	1,385.0	1,502.2
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 2 | Foreign Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	314.4
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	341.7
Pension Plans, Defined Benefit | LEVEL 2 | Foreign Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	60.9	43.6
Pension Plans, Defined Benefit | LEVEL 2 | U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	103.9	113.1
Pension Plans, Defined Benefit | LEVEL 2 | Non-U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	20.0	22.9
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	21.0	22.4
Pension Plans, Defined Benefit | LEVEL 2 | Foreign Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.3	0.3
Pension Plans, Defined Benefit | LEVEL 2 | Collective Trust Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	837.2	985.5
Pension Plans, Defined Benefit | LEVEL 2 | Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 2 | Cash and Other
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Foreign Common Stock
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Foreign Corporate Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Non-U.S. Government Obligations
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Foreign Municipal and Provincial Bonds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Collective Trust Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	0.0	0.0
Pension Plans, Defined Benefit | LEVEL 3 | Cash and Other
Defined Benefit Plan Disclosure [Line Items]
Plan Assets at Fair Value	$ 0.0	$ 0.0

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Employee Benefits - Postretirement Health Care Plan Status (Detail) - Other Postretirement Plan - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Net Postretirement Benefit Obligation	$ 10.2	$ 15.7	$ 28.8
Retirees and Dependents
Defined Benefit Plan Disclosure [Line Items]
Net Postretirement Benefit Obligation	8.7	13.2
Actives Eligible for Benefits
Defined Benefit Plan Disclosure [Line Items]
Net Postretirement Benefit Obligation	$ 1.5	$ 2.5

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Employee Benefits - Postretirement Amounts Included in Accumulated Other Comprehensive Income (Detail) - Other Postretirement Plan - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net Actuarial (Gain) Loss	$ (5.3)	$ (4.9)
Prior Service (Credit) Cost	(11.5)	(12.4)
Gross Amount in Accumulated Other Comprehensive Income	(16.8)	(17.3)
Income Tax Effect	(4.2)	(4.3)
Net Amount in Accumulated Other Comprehensive Income	$ (12.6)	$ (13.0)

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Employee Benefits - Net Periodic Postretirement (Benefit) Expense (Detail) - Other Postretirement Plan - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Service Cost		$ 0.0	$ 0.0	$ 0.0
Interest Cost		0.3	0.7	1.2
Expected Return on Plan Assets		0.0	0.0	0.0
Amortization
Net Actuarial (Gain)		(0.2)	(0.6)	(1.1)
Prior Service (Credit) Cost	$ (12.7)	(0.9)	(0.3)	0.0
Net Periodic Pension Expense		$ (0.8)	$ (0.2)	$ 0.1

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Employee Benefits - Change in Accumulated Postretirement Benefit Obligation (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Actuarial (Gain)	$ (31.5)	$ 176.0
Other Postretirement Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning Balance	15.7	28.8
Service Cost	0.0	0.0	$ 0.0
Interest Cost	0.3	0.7	1.2
Plan Amendment	0.0	(12.7)
Actuarial (Gain)	(3.3)	(0.1)
Net Claims Paid	(2.5)	(1.0)
Ending Balance	$ 10.2	$ 15.7	$ 28.8

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Employee Benefits - Postretirement Estimated Future Benefit Payments (Detail) - Other Postretirement Plan $ in Millions	Dec. 31, 2021 USD ($)
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items]
2022	$ 1.5
2023	1.4
2024	1.3
2025	1.2
2026	1.1
2027-2031	$ 4.3

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Share-Based Compensation Plans - Total Compensation Expense for Share-Based Payment Arrangements to Employees (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Share-Based Compensation Expense	$ 95.5	$ 91.4	$ 107.9
Tax Benefits Recognized	24.0	22.9	26.7
Restricted Stock Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Share-Based Compensation Expense	78.2	78.1	81.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Share-Based Compensation Expense	0.0	0.5	1.4
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Share-Based Compensation Expense	$ 17.3	$ 12.8	$ 25.1

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Share-Based Compensation Plans - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested share-based compensation	$ 71.8
Weighted average period of recognition of unvested share-based compensation (in years)	3 years
Share-based compensation expense	$ 95.5	$ 91.4	$ 107.9
Share-based Payment Arrangement, Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
Granted (in shares)	13,968	20,148	14,232
Stock units granted during period	$ 1.5	$ 1.5	$ 1.3
Share-based compensation expense	$ 1.6	$ 1.6	$ 1.4
Stock Incentive Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for issuance under the Plan (in shares)	20,000,000
Stock Incentive Plan 2012 Plan and 2002 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant under the Plan (in shares)	16,181,087
Stock options under the Plan, the 2002 Plan, and the 1992 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	0	0	0
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Upper Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option maximum term (in years)	10 years
Options vest and become exercisable after the date of grant (in years)	4 years
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Lower Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of the fair value for options to purchase common stock on the date the options are granted	100.00%
Options vest and become exercisable after the date of grant (in years)	1 year
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
Granted (in shares)	204,539	205,847	213,044
Restricted stock units weighted average grant date fair value (in usd per share)	$ 97.77	$ 100.83	$ 93.00
Performance based units vesting period	3 years
Shares outstanding (in shares)	622,817	660,510	667,741
Aggregate intrinsic value of options granted	$ 74.5	$ 61.5	$ 70.9
Vesting term of units granted	1 year	1 year	1 year
Share-based compensation expense	$ 17.3	$ 12.8	$ 25.1
Performance stock units, granted | Upper Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage at which units can vest	150.00%
Performance stock units, granted | Lower Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage at which units can vest	0.00%
Restricted Stock Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	846,433	772,848	855,112
Restricted stock units weighted average grant date fair value (in usd per share)	$ 99.31	$ 99.58	$ 91.89
Fair value of restricted stock units vested	$ 89.4	$ 100.2	$ 89.3
Restricted Stock Unit Awards | Fourth Anniversary Of Grant Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio	1
Percentage at which units can vest	25.00%

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Share-Based Compensation Plans - Stock Options Granted, Vested, and Exercised (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Grant-Date Fair Value of Stock Options Vested	$ 2.2	$ 4.5	$ 6.6
Stock Options Exercised
Intrinsic Value as of Exercise Date	41.3	13.6	35.4
Cash Received	53.8	19.5	44.0
Tax Deduction Benefits Realized	$ 41.3	$ 13.4	$ 35.2

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Share-Based Compensation Plans - Changes in Nonvested Stock Options (Detail)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
SHARES
Nonvested stock options outstanding, at beginning of the year (in shares) | shares	114,829
Granted (in shares) | shares	0
Vested (in shares) | shares	(114,829)
Forfeited or Cancelled (in shares) | shares	0
Nonvested stock options outstanding, at end of the year (in shares) | shares	0
WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE PER SHARE
Nonvested stock options weighted average grant date fair value at beginning of the year (in dollars per share) | $ / shares	$ 19.18
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	19.18
Forfeited or Cancelled (in dollars per share) | $ / shares	0
Nonvested stock options weighted average grant date fair value at end of the year (in dollars per share) | $ / shares	$ 0

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Share-Based Compensation Plans - Status of Stock Options and Changes (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SHARES
Granted (in shares)	0
Exercised (in shares)	(837,757)	(344,686)	(786,931)
Stock options under the Plan, the 2002 Plan, and the 1992 Plan
SHARES
Options Outstanding, at beginning of the year (in shares)	1,349,925
Granted (in shares)	0
Exercised (in shares)	(837,757)
Forfeited, Expired or Cancelled (in shares)	(2,280)
Options Outstanding, at the end of year (in shares)	509,888	1,349,925
Options Exercisable at the end of year (in shares)	509,888
WEIGHTED AVERAGE EXERCISE PRICE PER SHARE
Options Outstanding, Beginning Balance (in dollars per share)	$ 66.87
Granted (in dollars per share)	0
Exercised (in dollars per share)	64.16
Forfeited, Expired or Cancelled (in dollars per share)	52.64
Options Outstanding, Ending Balance (in dollars per share)	71.39	$ 66.87
Options Exercisable, at the end of the year (in dollars per share)	$ 71.39
WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)
Options Outstanding, at the end of the year	3 years 4 months 24 days
Options Exercisable, at the end of the year	3 years 4 months 24 days
AGGREGATE INTRINSIC VALUE
Options Outstanding, at the end of year	$ 24.6
Options Exercisable at end of the year	$ 24.6

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Share-Based Compensation Plans - Outstanding Restricted Stock Unit Awards (Detail) - Restricted Stock Unit Awards - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
NUMBER
Balance at beginning of period (in shares)	2,145,651
Granted (in shares)	846,433
Distributed (in shares)	(944,393)
Forfeited (in shares)	(46,175)
Balance at end of period (in shares)	2,001,516
Units Convertible, at the end of year (in shares)	19,526
AGGREGATE INTRINSIC VALUE
AGGREGATE INTRINSIC VALUE	$ 239.4	$ 199.8
Units Convertible, at the end of year	$ 2.3

XML

Share-Based Compensation Plans - Nonvested Restricted Stock Unit Awards (Detail) - Restricted Stock Unit Awards - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
NUMBER
Beginning Balance (in shares)	2,125,881
Granted (in shares)	846,433
Vested (in shares)	(944,149)
Forfeited (in shares)	(46,175)
Ending Balance (in shares)	1,981,990	2,125,881
WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT
Nonvested at beginning of year (in dollars per share)	$ 95.61
Granted (in dollars per share)	99.31
Vested (in dollars per share)	94.70
Forfeited (in dollars per share)	98.31
Nonvested at end of year (in dollars per share)	$ 97.56	$ 95.61
WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS)
WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS)	2 years 3 months 18 days	2 years 1 month 6 days

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Cash-Based Compensation Plans - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Compensation Related Costs [Abstract]
Cash based compensation expense	$ 377.1	$ 296.2	$ 326.1

XML

Commitments and Contingent Liabilities - Summary of Off-Balance Sheet Financial Instruments (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
ONE YEAR AND LESS	$ 183,566,400,000	$ 170,021,200,000
OVER ONE YEAR	18,410,200,000	18,441,500,000
TOTAL	201,976,600,000	188,462,700,000
Legally Binding Commitments to Extend Credit
Loss Contingencies [Line Items]
Commitments, participated to others	366,600,000	384,700,000
Financial Guarantee
Loss Contingencies [Line Items]
ONE YEAR AND LESS	170,445,300,000	157,478,000,000
OVER ONE YEAR	0	0
TOTAL	170,445,300,000	157,478,000,000
Secured by Cash Deposits or Participated to Others | Standby Letters of Credit
Loss Contingencies [Line Items]
TOTAL	30,500,000	24,200,000
Standby Letter of Credit and Financial Guarantee
Loss Contingencies [Line Items]
Guarantor obligations, current carrying value	2,309,600,000
Guarantees to sponsored member programs		0
Legally Binding Commitments to Extend Credit
Loss Contingencies [Line Items]
ONE YEAR AND LESS	9,567,000,000	11,260,500,000
OVER ONE YEAR	17,855,200,000	17,678,000,000
TOTAL	27,422,200,000	28,938,500,000
Standby Letters of Credit
Loss Contingencies [Line Items]
ONE YEAR AND LESS	3,485,600,000	1,228,100,000
OVER ONE YEAR	553,900,000	763,500,000
TOTAL	4,039,500,000	1,991,600,000
Commercial Letters of Credit
Loss Contingencies [Line Items]
ONE YEAR AND LESS	68,500,000	54,600,000
OVER ONE YEAR	1,100,000	0
TOTAL	$ 69,600,000	$ 54,600,000

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Commitments and Contingent Liabilities - Narrative (Detail) shares in Millions				1 Months Ended		12 Months Ended
	Dec. 29, 2021 USD ($)	Sep. 27, 2019 USD ($)	Jun. 28, 2018 USD ($)	Jun. 30, 2016 USD ($) shares	Jun. 30, 2015 USD ($) shares	Dec. 31, 2015 trust	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares
Loss Contingencies [Line Items]
Minimum collateral maintained against fair value of client securities loaned plus accrued interest							100.00%
Fair value disclosure, off-balance sheet risks, amount, liability							$ 201,976,600,000	$ 188,462,700,000
Repurchase agreement counterparty, amount at risk							0	0
Resell agreements, period end amounts excluding effects of agreements reported net by counterparty							0	0
Accruals recorded for pending litigation or threatened legal actions or regulatory matters							0
Financial Guarantee
Loss Contingencies [Line Items]
Fair value disclosure, off-balance sheet risks, amount, liability							170,445,300,000	157,478,000,000
Indemnification Agreement
Loss Contingencies [Line Items]
Credit loss liability							$ 0	$ 0
Visa Class B
Loss Contingencies [Line Items]
Redemption gain				$ 123,100,000	$ 99,900,000
Common stock issued (in shares) | shares				1.1	1.0
Common stock shares held (in shares) | shares							4.1	4.1
Remaining visa shares held by Northern Trust, original cost basis							$ 0	$ 0
Northern Trust Fiduciary Services (Guernsey) Limited | Subsidiaries
Loss Contingencies [Line Items]
Number of administrated trusts served as trustee on | trust						2
Lower Limit
Loss Contingencies [Line Items]
Possible loss in future periods in excess of accrual							0
Upper Limit
Loss Contingencies [Line Items]
Possible loss in future periods in excess of accrual							$ 20,000,000
Visa Class B Litigation Case | Visa Inc.
Loss Contingencies [Line Items]
Payment to escrow deposit	$ 250,000,000	$ 300,000,000	$ 600,000,000

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Derivative Financial Instruments - Notional and Fair Value Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
NOTIONAL VALUE	$ 340,241.0	$ 346,752.1
ASSET	1,902.7	4,097.2
Asset, Total Gross Derivative	2,347.4	4,558.2
Less: Asset, Netting	1,533.8	3,507.8
Derivative Assets	813.6	1,050.4
LIABILITY	1,566.5	3,738.0
Derivative Liabilities	2,135.2	4,882.8
Less: Liability, Netting	1,283.5	2,817.1
Derivative Liabilities	851.7	2,065.7
Derivatives Designated as Hedging under GAAP
Derivative [Line Items]
NOTIONAL VALUE	12,290.2	14,802.3
ASSET	252.7	23.8
LIABILITY	33.6	321.9
Derivatives Designated as Hedging under GAAP | Fair Value Hedges | Interest Rate Contracts
Derivative [Line Items]
NOTIONAL VALUE	4,430.5	4,717.6
ASSET	7.6	8.2
LIABILITY	8.7	10.2
Derivatives Designated as Hedging under GAAP | Cash Flow Hedges | Foreign Exchange Contracts
Derivative [Line Items]
NOTIONAL VALUE	3,697.9	6,554.4
ASSET	61.8	15.4
LIABILITY	12.6	104.0
Derivatives Designated as Hedging under GAAP | Cash Flow Hedges | Interest Rate Contracts
Derivative [Line Items]
NOTIONAL VALUE	0.0	50.0
ASSET	0.0	0.1
LIABILITY	0.0	0.0
Derivatives Designated as Hedging under GAAP | Net Investment Hedges | Foreign Exchange Contracts
Derivative [Line Items]
NOTIONAL VALUE	4,161.8	3,480.3
ASSET	183.3	0.1
LIABILITY	12.3	207.7
Total Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges
Derivative [Line Items]
NOTIONAL VALUE	327,950.8	331,949.8
ASSET	2,094.7	4,534.4
LIABILITY	2,101.6	4,560.9
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges
Derivative [Line Items]
NOTIONAL VALUE	848.4	813.1
ASSET	0.2	0.1
LIABILITY	38.1	35.4
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | Foreign Exchange Contracts
Derivative [Line Items]
NOTIONAL VALUE	109.9	67.7
ASSET	0.2	0.1
LIABILITY	0.6	0.1
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | Other Financial Derivatives
Derivative [Line Items]
NOTIONAL VALUE	738.5	745.4
ASSET	0.0	0.0
LIABILITY	37.5	35.3
Client-Related and Trading Derivatives | Fair Value Hedges
Derivative [Line Items]
NOTIONAL VALUE	327,102.4	331,136.7
ASSET	2,094.5	4,534.3
LIABILITY	2,063.5	4,525.5
Client-Related and Trading Derivatives | Fair Value Hedges | Foreign Exchange Contracts
Derivative [Line Items]
NOTIONAL VALUE	315,532.3	320,563.4
ASSET	1,962.1	4,245.1
LIABILITY	1,973.3	4,410.7
Client-Related and Trading Derivatives | Fair Value Hedges | Interest Rate Contracts
Derivative [Line Items]
NOTIONAL VALUE	11,570.1	10,573.3
ASSET	132.4	289.2
LIABILITY	$ 90.2	$ 114.8

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Derivative Financial Instruments - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Net foreign exchange contract gains (losses) reclassified from AOCI	$ 0.0	$ 0.0	$ 0.0
Maximum length of time being hedged for exposure to variability in future cash flows of forecasted foreign currency denominated transactions	20 months
Net investment hedge gain (loss) recognized in AOCI	$ 186.6	$ (178.7)
Foreign Currency Denominate
Derivative [Line Items]
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges	(4.3)
Foreign Currency Denominated Investment Securities
Derivative [Line Items]
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges	$ 52.7

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Derivative Financial Instruments - Location and Amount of Fair Value Hedge Derivative Gains and Losses Recorded in Income (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income	$ 2,499.9	$ 1,406.5	$ 1,643.5	$ 2,499.9
Interest Expense	822.0	23.8	200.3	822.0
Other Operating Income	145.5	243.9	194.0	$ 145.5
INTEREST INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized on fair value hedges	21.2	(16.2)	(13.2)
Total gain/(loss) recognized on cash flow hedges	25.9	10.5	27.9
INTEREST EXPENSE
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized on fair value hedges	5.2	57.1	29.9
Total gain/(loss) recognized on cash flow hedges	0.0	0.0	0.0
OTHER OPERATING INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized on fair value hedges	0.0	0.0	0.0
Total gain/(loss) recognized on cash flow hedges	0.8	(6.0)	0.2
Interest Rate Contracts | INTEREST INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Interest Rate Contracts, Recognized on Derivatives	(95.9)	39.1	(66.3)
Interest Rate Contracts, Recognized on Hedged Items	95.9	(39.1)	66.3
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives	21.2	(16.2)	(13.2)
Total gain/(loss) recognized on cash flow hedges	(0.5)	0.0	0.5
Interest Rate Contracts | INTEREST EXPENSE
Derivative Instruments, Gain (Loss) [Line Items]
Interest Rate Contracts, Recognized on Derivatives	99.4	(161.6)	100.2
Interest Rate Contracts, Recognized on Hedged Items	(99.4)	161.6	(100.2)
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives	5.2	57.1	29.9
Total gain/(loss) recognized on cash flow hedges	0.0	0.0	0.0
Interest Rate Contracts | OTHER OPERATING INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Interest Rate Contracts, Recognized on Derivatives	0.0	0.0	0.0
Interest Rate Contracts, Recognized on Hedged Items	0.0	0.0	0.0
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives	0.0	0.0	0.0
Total gain/(loss) recognized on cash flow hedges	0.0	0.0	0.0
Foreign Exchange Contracts | INTEREST INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) recognized on cash flow hedges	26.4	10.5	27.4
Foreign Exchange Contracts | INTEREST EXPENSE
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) recognized on cash flow hedges	0.0	0.0	0.0
Foreign Exchange Contracts | OTHER OPERATING INCOME
Derivative Instruments, Gain (Loss) [Line Items]
Total gain/(loss) recognized on cash flow hedges	$ 0.8	$ (6.0)	$ 0.2

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Derivative Financial Instruments - Hedged Items in Fair Value (Detail) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying Value Of The Hedged Items, Available for Sale Debt Securities	$ 1,677,400,000	$ 2,075,100,000
Carrying Value Of The Hedged Items, Senior Notes and Long-Term Subordinated Debt	2,745,600,000	2,745,100,000
Carrying Value Of the Hedged Items, Total	4,423,000,000	4,820,200,000
Cumulative Hedge Accounting Basis Adjustment, Available for Sale Debt Securities	11,100,000	48,800,000
Cumulative Hedge Accounting Basis Adjustment, Senior Notes and Long-Term Subordinated Debt	59,500,000	221,500,000
Cumulative Hedge Accounting Basis Adjustment, Total	70,600,000	270,300,000
Hedged asset, fair value hedge, discontinued, cumulative increase (decrease)	9,600,000
Hedged liability, fair value hedge, discontinued, cumulative increase (decrease)	$ 0	0
Hedged asset (liability), fair value hedge, discontinued, cumulative increase (decrease), net		$ 10,400,000

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Derivative Financial Instruments - Location and Amount of Gains and Losses Recorded in Income for Derivatives not Designated as Hedging Under GAAP (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Non-designated risk management derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	$ (20.1)	$ (11.9)	$ (21.6)
Client-related and trading derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	308.3	312.8	263.8
Total Derivatives Not Designated as Hedging under GAAP
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	288.2	300.9	242.2
Foreign Exchange Contracts | Other Operating Income | Non-designated risk management derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	1.2	6.4	(1.6)
Foreign Exchange Contracts | Foreign Exchange Trading Income | Client-related and trading derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	292.6	290.4	250.9
Other Financial Derivatives | Other Operating Income | Non-designated risk management derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	(21.3)	(18.3)	(20.0)
Interest Rate Contracts | Security Commissions and Trading Income | Client-related and trading derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) from derivatives not designated as hedging under GAAP	$ 15.7	$ 22.4	$ 12.9

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Offsetting of Assets and Liabilities - Offsetting of Derivative Assets and Securities Purchased Under Agreements to Resell (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Total Derivatives Subject to a Master Netting Arrangement
Assets	$ 1,902.7	$ 4,097.2
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	1,533.8	3,507.8
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	368.9	589.4
Gross amounts not offset in the balance sheet	2.8	0.9
Net Amount	366.1	588.5
Total Derivatives Not Subject to a Master Netting Arrangement
Total Derivatives Not Subject to a Master Netting Arrangement	444.7	461.0
Gross amounts not offset in the balance sheet	0.0	0.0
Net Amount	444.7	461.0
Total Derivatives
GROSS RECOGNIZED ASSETS	2,347.4	4,558.2
Derivative Assets	813.6	1,050.4
Gross amounts not offset in the balance sheet	2.8	0.9
Net Amount	810.8	1,049.5
Securities Purchased under Agreements to Resell
GROSS RECOGNIZED ASSETS	2,078.9	1,596.5
Gross amounts offset in the balance sheet	1,392.5
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	686.4	1,596.5
Gross amounts not offset in the balance sheet	686.4	1,596.5
Other assets (excluding derivative assets)	7,800.0	7,300.0
Foreign Exchange Contracts | Over the Counter Derivative
Total Derivatives Subject to a Master Netting Arrangement
Assets	1,762.7	3,799.7
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	1,530.7	3,505.3
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	232.0	294.4
Gross amounts not offset in the balance sheet	2.8	0.9
Net Amount	229.2	293.5
Interest Rate Swaps | Over the Counter Derivative
Total Derivatives Subject to a Master Netting Arrangement
Assets	140.0	295.9
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	3.1	2.5
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	136.9	293.4
Net Amount	$ 136.9	293.4
Interest Rate Swaps | Interest Rate Swaps Exchange Cleared
Total Derivatives Subject to a Master Netting Arrangement
Assets		1.6
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET		0.0
NET AMOUNTS PRESENTED IN THE BALANCE SHEET		1.6
Net Amount		$ 1.6

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Offsetting of Assets and Liabilities (Offsetting of Derivative Liabilities and Securities Sold Under Agreements to Repurchase) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Total Derivatives Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	$ 1,566.5	$ 3,738.0
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	1,283.5	2,817.1
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	283.0	920.9
Gross amounts not offset in the balance sheet	0.0	0.5
Net Amount	283.0	920.4
Total Derivatives Not Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	568.7	1,144.8
NET AMOUNT	568.7	1,144.8
Total Derivatives
GROSS RECOGNIZED LIABILITIES	2,135.2	4,882.8
Derivative Liabilities	851.7	2,065.7
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET	0.0	0.5
Net Amount	851.7	2,065.2
Securities Sold under Agreements to Repurchase
GROSS RECOGNIZED LIABILITIES	1,924.4	39.8
Gross amounts offset in the balance sheet	1,392.5
Securities Sold Under Agreements to Repurchase	531.9	39.8
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET	531.9	39.8
Other liabilities	3,300.0	3,500.0
Foreign Exchange Contracts | Over the Counter Derivative
Total Derivatives Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	1,430.1	3,577.7
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	1,234.5	2,718.6
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	195.6	859.1
Gross amounts not offset in the balance sheet	0.0	0.5
Net Amount	195.6	858.6
Interest Rate Swaps | Over the Counter Derivative
Total Derivatives Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	98.7	125.0
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	48.1	98.5
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	50.6	26.5
Net Amount	50.6	26.5
Interest Rate Swaps | Interest Rate Swaps Exchange Cleared
Total Derivatives Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	0.2
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	0.0
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	0.2
Net Amount	0.2
Other Financial Derivatives | Other Financial Derivatives
Total Derivatives Subject to a Master Netting Arrangement
GROSS RECOGNIZED LIABILITIES	37.5	35.3
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET	0.9	0.0
NET AMOUNTS PRESENTED IN THE BALANCE SHEET	36.6	35.3
Net Amount	$ 36.6	$ 35.3

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Offsetting of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Gross amounts not offset in the balance sheet, received from	$ 2.8	$ 0.9
Gross amounts not offset in the balance sheet, deposited	0.0	0.5
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position	111.5	1,648.2
Collateral deposited with derivative counterparties for derivatives instruments with credit-risk-related contingent features that are in a liability position	84.2	1,044.0
Assets needed for immediate settlement, aggregate fair value	27.3	604.2
Net Investment Hedges
Derivative [Line Items]
Gross amounts not offset in the balance sheet, received from	93.5
Gross amounts not offset in the balance sheet, deposited	$ 43.4
Cash collateral received from derivative counterparties not offset against derivative assets		111.0
Cash collateral deposited with derivative counterparties not offset against derivative liabilities		$ 49.0

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Variable Interest Entities - Narrative (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Assets	$ 183,889,800,000	$ 170,003,900,000	$ 136,828,400,000
Liabilities	171,873,000,000	158,315,600,000
Investment company, voluntary fee waived	287,800,000	36,400,000
Fair value, investments, entities that calculate net asset value per share, seed capital investments	0
Unfunded commitment related to seed capital investments	0
Tax Credit Structures
Variable Interest Entity [Line Items]
Exposure to loss from liquidity arrangements and obligations to purchase assets	0
Affordable housing tax credits and other tax benefits	87,200,000	78,900,000
Other Assets
Variable Interest Entity [Line Items]
Investments in community development projects, carrying amount, assets	959,600,000	919,600,000
Other Assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	922,800,000	874,000,000
Other Liabilities
Variable Interest Entity [Line Items]
Investments in community development projects, carrying amount, liabilities	289,300,000	351,600,000
Other Liabilities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Liabilities	$ 280,500,000	$ 335,900,000

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Pledged and Restricted Assets - Type of Pledged Assets (Details) - USD ($) $ in Billions	Dec. 31, 2021	Dec. 31, 2020
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 54.6	$ 47.5
Obligations of States and Political Subdivisions
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	3.7	2.9
Government Sponsored Agency and Other Securities
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	35.6	32.5
Loans
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 15.3	$ 12.1

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Pledged and Restricted Assets - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 47,500.0	$ 54,600.0
Financial instruments owned and pledged as collateral, amount eligible to be repledged by counterparty	33.5	524.1
Average deposits maintained to meet Federal Reserve Bank reserve requirements	400.0
Collateral Requirements
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 5,700.0	$ 5,600.0

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Pledged and Restricted Assets - Fair Value of Available for Sale Debt Securities Included In Pledged Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 54,600.0	$ 47,500.0
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	524.1	33.0
Derivative contracts
Financial Instruments Owned and Pledged as Collateral [Line Items]
Amount of securities and loans pledged	$ 17.6	$ 27.1

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Pledged and Restricted Assets - Accepted Collateral (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Total Collateral Accepted	$ 2,109,800,000	$ 1,680,700,000
Fair value of securities received as collateral that have been resold or repledged	1,419,000,000	0
Reverse repurchase agreements
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Collateral that may be repledged or sold	1,457,000,000	1,179,800,000
Collateral that may not be repledged or sold	650,000,000.0	500,000,000.0
Derivative contracts
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Collateral that may be repledged or sold	$ 2,800,000	$ 900,000

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Reporting Segments and Related Information - Narrative (Detail)	12 Months Ended
	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of client-focused reportable segment	2

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Reporting Segments and Related Information - Earnings Contribution of Northern Trust's Reporting Segments (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Noninterest Income
Trust, Investment and Other Servicing Fees	$ 4,361.1	$ 3,995.0	$ 3,852.1
Foreign Exchange Trading Income	292.6	290.4	250.9
Other Noninterest Income	428.1	372.2	292.2
Total Noninterest Income	5,081.8	4,657.6	4,395.2
Net Interest Income	1,418.3	1,477.6	1,710.7
Revenue	6,500.1	6,135.2	6,105.9
Provision for Credit Losses	(81.5)	125.0	(14.5)
Noninterest Expense	4,535.9	4,348.2	4,143.5
Income (Loss) before Income Taxes	2,045.7	1,662.0	1,976.9
Provision (Benefit) for Income Taxes	500.4	452.7	484.7
NET INCOME	1,545.3	1,209.3	1,492.2
Average Assets	156,363.2	136,811.1	117,551.4
Segment reporting information, fully taxable-equivalent adjustment	35.6	34.4	32.8
Corporate and Institutional Services Results of Operations
Noninterest Income
Trust, Investment and Other Servicing Fees	2,487.3	2,321.6	2,211.5
Foreign Exchange Trading Income	279.0	276.3	232.2
Other Noninterest Income	261.2	222.5	178.2
Total Noninterest Income	3,027.5	2,820.4	2,621.9
Net Interest Income	637.2	665.5	918.7
Revenue	3,664.7	3,485.9	3,540.6
Provision for Credit Losses	(33.8)	38.1	1.9
Noninterest Expense	2,863.0	2,752.7	2,605.5
Income (Loss) before Income Taxes	835.5	695.1	933.2
Provision (Benefit) for Income Taxes	194.1	174.4	219.4
NET INCOME	$ 641.4	$ 520.7	$ 713.8
Percentage of Consolidated Net Income	41.00%	43.00%	48.00%
Average Assets	$ 120,883.2	$ 104,790.6	$ 87,557.1
Wealth Management
Noninterest Income
Trust, Investment and Other Servicing Fees	1,873.8	1,673.4	1,640.6
Foreign Exchange Trading Income	13.6	14.1	18.7
Other Noninterest Income	188.2	168.0	131.1
Total Noninterest Income	2,075.6	1,855.5	1,790.4
Net Interest Income	781.1	812.1	792.0
Revenue	2,856.7	2,667.6	2,582.4
Provision for Credit Losses	(47.7)	86.9	(16.4)
Noninterest Expense	1,651.1	1,559.7	1,531.6
Income (Loss) before Income Taxes	1,253.3	1,021.0	1,067.2
Provision (Benefit) for Income Taxes	317.0	291.8	271.1
NET INCOME	$ 936.3	$ 729.2	$ 796.1
Percentage of Consolidated Net Income	61.00%	60.00%	53.00%
Average Assets	$ 35,480.0	$ 32,020.5	$ 29,994.3
Treasury and Other Results of Operations
Noninterest Income
Total Noninterest Income	(21.3)	(18.3)	(17.1)
Net Interest Income	0.0	0.0	0.0
Revenue	(21.3)	(18.3)	(17.1)
Noninterest Expense	21.8	35.8	6.4
Income (Loss) before Income Taxes	(43.1)	(54.1)	(23.5)
Provision (Benefit) for Income Taxes	(10.7)	(13.5)	(5.8)
NET INCOME	$ (32.4)	$ (40.6)	$ (17.7)
Percentage of Consolidated Net Income	(2.00%)	(3.00%)	(1.00%)
Average Assets	$ 0.0	$ 0.0	$ 0.0

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Reporting Segments and Related Information - Distribution of Total Assets and Operating Performance (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
TOTAL ASSETS	$ 183,889.8	$ 170,003.9	$ 136,828.4
TOTAL REVENUE	6,464.5	6,100.8	6,073.1
INCOME BEFORE INCOME TAXES	2,010.1	1,627.6	1,944.1
NET INCOME	1,545.3	1,209.3	1,492.2
Non-U.S.
Segment Reporting Information [Line Items]
TOTAL ASSETS	38,555.3	38,393.8	27,888.6
TOTAL REVENUE	2,017.5	1,737.6	1,889.5
INCOME BEFORE INCOME TAXES	569.4	404.0	600.0
NET INCOME	426.7	302.6	451.0
U.S.
Segment Reporting Information [Line Items]
TOTAL ASSETS	145,334.5	131,610.1	108,939.8
TOTAL REVENUE	4,447.0	4,363.2	4,183.6
INCOME BEFORE INCOME TAXES	1,440.7	1,223.6	1,344.1
NET INCOME	$ 1,118.6	$ 906.7	$ 1,041.2

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Regulatory Capital Requirements - Risk-Based Capital Amounts and Ratios (Detail) $ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
STANDARDIZED APPROACH | Parent Company
Tier 1 Capital
BALANCE	$ 11,142.2	$ 10,822.2
RATIO	0.129	0.139
Minimum to qualify as well-capitalized balance	$ 5,177.6	$ 4,659.7
Minimum to qualify as well-capitalized ratio	0.060	0.060
Total Capital
BALANCE	$ 12,126.8	$ 12,085.7
RATIO	0.141	0.156
Minimum to qualify as well-capitalized balance	$ 8,629.3	$ 7,766.2
Minimum to qualify as well-capitalized ratio	0.100	0.100
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets)
BALANCE	$ 11,142.2	$ 10,822.2
RATIO	0.069	0.076
STANDARDIZED APPROACH | Parent Company | Common Stock
Tier 1 Capital
BALANCE	$ 10,277.1	$ 9,962.2
RATIO	0.119	0.128
STANDARDIZED APPROACH | The Northern Trust Company
Tier 1 Capital
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.120	0.130
Minimum to qualify as well-capitalized balance	$ 6,866.1	$ 6,147.0
Minimum to qualify as well-capitalized ratio	0.080	0.080
Total Capital
BALANCE	$ 11,158.4	$ 11,123.1
RATIO	0.130	0.145
Minimum to qualify as well-capitalized balance	$ 8,582.6	$ 7,683.7
Minimum to qualify as well-capitalized ratio	0.100	0.100
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets)
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.064	0.070
Minimum to qualify as well-capitalized balance	$ 8,019.5	$ 7,105.0
Minimum to qualify as well-capitalized ratio	0.050	0.050
STANDARDIZED APPROACH | The Northern Trust Company | Common Stock
Tier 1 Capital
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.120	0.130
Minimum to qualify as well-capitalized balance	$ 5,578.7	$ 4,994.4
Minimum to qualify as well-capitalized ratio	0.065	0.065
ADVANCED APPROACH | Parent Company
Tier 1 Capital
BALANCE	$ 11,142.2	$ 10,822.2
RATIO	0.143	0.145
Minimum to qualify as well-capitalized balance	$ 4,668.4	$ 4,467.6
Minimum to qualify as well-capitalized ratio	0.060	0.060
Total Capital
BALANCE	$ 11,942.0	$ 11,825.8
RATIO	0.153	0.159
Minimum to qualify as well-capitalized balance	$ 7,780.7	$ 7,446.0
Minimum to qualify as well-capitalized ratio	0.100	0.100
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets)
BALANCE	$ 11,142.2	$ 10,822.2
RATIO	0.069	0.076
Supplementary Leverage Capital [Abstract]
Supplementary leverage capital	$ 11,142.2	$ 10,822.2
Supplementary leverage capital to average assets	8.20%	8.60%
ADVANCED APPROACH | Parent Company | Common Stock
Tier 1 Capital
BALANCE	$ 10,277.1	$ 9,962.2
RATIO	0.132	0.134
ADVANCED APPROACH | The Northern Trust Company
Tier 1 Capital
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.135	0.138
Minimum to qualify as well-capitalized balance	$ 6,110.2	$ 5,805.6
Minimum to qualify as well-capitalized ratio	0.080	0.080
Total Capital
BALANCE	$ 10,973.7	$ 10,863.3
RATIO	0.144	0.150
Minimum to qualify as well-capitalized balance	$ 7,637.8	$ 7,257.0
Minimum to qualify as well-capitalized ratio	0.100	0.100
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets)
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.064	0.070
Minimum to qualify as well-capitalized balance	$ 8,019.5	$ 7,105.0
Minimum to qualify as well-capitalized ratio	0.050	0.050
Supplementary Leverage Capital [Abstract]
Supplementary leverage capital	$ 10,315.7	$ 10,003.3
Supplementary leverage capital to average assets	7.60%	7.70%
Supplementary leverage capital required to be well capitalized	$ 4,081.7	$ 3,883.4
Supplementary leverage ratio	0.030	0.030
ADVANCED APPROACH | The Northern Trust Company | Common Stock
Tier 1 Capital
BALANCE	$ 10,315.7	$ 10,003.3
RATIO	0.135	0.138
Minimum to qualify as well-capitalized balance	$ 4,964.5	$ 4,717.1
Minimum to qualify as well-capitalized ratio	0.065	0.065

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Northern Trust Corporation (Corporation only) - Condensed Balance Sheet (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash on Deposit with Subsidiary Bank	$ 3,056.8	$ 4,389.5
Other Assets	8,573.6	8,384.9
Total Assets	183,889.8	170,003.9	$ 136,828.4
LIABILITIES
Senior Notes	2,505.5	3,122.4
Floating Rate Capital Debt	0.0	277.8
Other Liabilities	4,177.5	5,536.6
Total Liabilities	171,873.0	158,315.6
STOCKHOLDERS' EQUITY
Common Stock	408.6	408.6
Additional Paid-In Capital	939.3	963.6
Retained Earnings	13,117.3	12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)	428.0
Treasury Stock	(3,297.7)	(3,204.5)
Total Stockholders’ Equity	12,016.8	11,688.3	11,091.0	$ 10,508.3
Total Liabilities and Stockholders’ Equity	183,889.8	170,003.9
Parent Company
ASSETS
Cash on Deposit with Subsidiary Bank	1,731.7	2,516.0	$ 2,559.1	$ 866.8
Other Assets	890.2	900.9
Total Assets	16,738.1	17,059.6
LIABILITIES
Senior Notes	2,505.5	3,122.4
Long-Term Debt	1,145.7	1,189.3
Floating Rate Capital Debt	0.0	277.8
Other Liabilities	1,070.1	781.8
Total Liabilities	4,721.3	5,371.3
STOCKHOLDERS' EQUITY
Preferred Stock	884.9	884.9
Common Stock	408.6	408.6
Additional Paid-In Capital	939.3	963.6
Retained Earnings	13,117.3	12,207.7
Accumulated Other Comprehensive Income (Loss)	(35.6)	428.0
Treasury Stock	(3,297.7)	(3,204.5)
Total Stockholders’ Equity	12,016.8	11,688.3
Total Liabilities and Stockholders’ Equity	16,738.1	17,059.6
Parent Company | Banks Industry
ASSETS
Advances to Wholly-Owned Subsidiaries – Banks	2,810.0	2,670.0
Investments in Wholly-Owned Subsidiaries	11,120.9	10,799.9
Parent Company | Nonbank Subsidiaries
ASSETS
Investments in Wholly-Owned Subsidiaries	$ 185.3	$ 172.8

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Northern Trust Corporation (Corporation only) - Condensed Statement of Income (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
OPERATING INCOME
Total Operating Income		$ 6,464.5	$ 6,100.8	$ 6,073.1
OPERATING EXPENSES
Interest Expense	$ 822.0	23.8	200.3	822.0
Other Operating Expenses		299.1	346.7	329.8
Total Noninterest Expense		4,535.9	4,348.2	4,143.5
Benefit for Income Taxes		(464.8)	(418.3)	(451.9)
NET INCOME		1,545.3	1,209.3	1,492.2
Preferred Stock Dividends		41.8	56.2	46.4
Net Income Applicable to Common Stock		1,503.5	1,153.1	1,445.8
Parent Company
OPERATING INCOME
Intercompany Interest and Other Charges		20.1	46.5	115.1
Interest and Other Income		32.3	19.1	20.2
Total Operating Income		811.8	965.6	2,159.8
OPERATING EXPENSES
Interest Expense		71.3	104.2	121.6
Other Operating Expenses		36.7	26.2	28.6
Total Noninterest Expense		108.0	130.4	150.2
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries		703.8	835.2	2,009.6
Benefit for Income Taxes		25.7	28.2	24.3
Income before Equity in Undistributed Net Income of Subsidiaries		729.5	863.4	2,033.9
Equity in Undistributed Net Income of Subsidiaries		815.8	345.9	(541.7)
NET INCOME		1,545.3	1,209.3	1,492.2
Preferred Stock Dividends		41.8	56.2	46.4
Net Income Applicable to Common Stock		1,503.5	1,153.1	1,445.8
Banks Industry | Parent Company
OPERATING INCOME
Dividends from Subsidiaries		751.1	900.0	2,024.1
OPERATING EXPENSES
Equity in Undistributed Net Income of Subsidiaries		803.3	326.0	(559.9)
Nonbank Subsidiaries | Parent Company
OPERATING INCOME
Dividends from Subsidiaries		8.3	0.0	0.4
OPERATING EXPENSES
Equity in Undistributed Net Income of Subsidiaries		$ 12.5	$ 19.9	$ 18.2

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Northern Trust Corporation (Corporation only) - Condensed Statement of Cash Flows (Detail) - USD ($) $ in Millions		12 Months Ended
	Oct. 15, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$ 1,545.3	$ 1,209.3	$ 1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Change in Accrued Income Taxes		37.2	25.4	(70.7)
Other Operating Activities, net		183.8	(16.4)	(448.2)
Net Cash Provided by Operating Activities		1,356.0	1,896.8	2,592.0
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities		10,079.0	8,748.2	11,057.2
Acquisition of a Business, Net of Cash Received		0.0	0.0	(10.5)
Other Investing Activities, net		(163.7)	(322.7)	225.1
Net Cash Used in Investing Activities		(18,602.6)	(29,923.0)	(3,405.0)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes		0.0	993.2	498.0
Repayments of Senior Notes		(500.0)	(508.6)	0.0
Repayment of Floating Rate Capital Debt	$ (278.8)	(278.8)	0.0	0.0
Redemption of Preferred Stock - Series C		0.0	(400.0)	0.0
Proceeds from Issuance of Preferred Stock - Series E		0.0	0.0	392.5
Treasury Stock Purchased		(267.6)	(299.8)	(1,100.2)
Net Proceeds from Stock Options		53.8	19.5	44.0
Cash Dividends Paid on Common Stock		(583.3)	(584.6)	(529.7)
Cash Dividends Paid on Preferred Stock		(41.8)	(45.9)	(46.4)
Other Financing Activities, net		0.1	1.2	(1.0)
Net Cash Provided by Financing Activities		16,073.5	27,871.9	615.9
Cash on Deposit with Subsidiary Bank at Beginning of Year		4,389.5
Cash on Deposit with Subsidiary Bank at End of Year		3,056.8	4,389.5
Parent Company
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		1,545.3	1,209.3	1,492.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Equity in Undistributed Net Income of Subsidiaries		(815.8)	(345.9)	541.7
Change in Prepaid Expenses		0.1	398.5	(400.4)
Change in Accrued Income Taxes		2.2	3.7	114.1
Other Operating Activities, net		236.6	300.3	141.9
Net Cash Provided by Operating Activities		968.4	1,565.9	1,889.5
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Redemption of Available for Sale Debt Securities		0.0	0.0	0.0
Investments in and Advances to Subsidiaries, net		(140.0)	(800.0)	540.0
Acquisition of a Business, Net of Cash Received		0.0	0.0	0.0
Other Investing Activities, net		5.1	1.8	3.7
Net Cash Used in Investing Activities		(134.9)	(798.2)	543.7
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Senior Notes		0.0	993.2	498.0
Repayments of Senior Notes		(500.0)	(508.6)	0.0
Repayment of Floating Rate Capital Debt		(278.8)	0.0	0.0
Redemption of Preferred Stock - Series C		0.0	(400.0)	0.0
Proceeds from Issuance of Preferred Stock - Series E		0.0	0.0	392.5
Treasury Stock Purchased		(267.6)	(299.8)	(1,100.2)
Net Proceeds from Stock Options		53.8	19.5	44.0
Cash Dividends Paid on Common Stock		(583.3)	(584.6)	(529.7)
Cash Dividends Paid on Preferred Stock		(41.8)	(45.9)	(46.4)
Other Financing Activities, net		(0.1)	15.4	0.9
Net Cash Provided by Financing Activities		(1,617.8)	(810.8)	(740.9)
Net Change in Cash on Deposit with Subsidiary Bank		(784.3)	(43.1)	1,692.3
Cash on Deposit with Subsidiary Bank at Beginning of Year		2,516.0	2,559.1	866.8
Cash on Deposit with Subsidiary Bank at End of Year		$ 1,731.7	$ 2,516.0	$ 2,559.1