Northern Trust Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Northern Trust Corp. has filed its 2023 10-K annual report, detailing its financial performance and business operations.</b>

AI Summary

NORTHERN TRUST CORP (NTRSO) filed a Annual Report (10-K) with the SEC on February 27, 2024. Northern Trust Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company is classified under SIC code 6022 for State Commercial Banks. Northern Trust Corp. is incorporated in Delaware with its principal business address in Chicago, IL. The filing covers the fiscal year 2023, with data as of December 31, 2023. The report includes financial data and disclosures relevant to the 1934 Act.

Why It Matters

For investors and stakeholders tracking NORTHERN TRUST CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Northern Trust's financial health, strategic initiatives, and risk factors for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance in the commercial banking sector and its outlook for the upcoming fiscal year.

Risk Assessment

Risk Level: medium — NORTHERN TRUST CORP shows moderate risk based on this filing. The company operates in the highly regulated financial services industry, facing risks related to market volatility, interest rate changes, and compliance requirements, as evidenced by its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Northern Trust's performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240227 — Filing Date (Filed as of date)
• 6022 — SIC Code (Standard Industrial Classification)
• DE — State of Incorporation (State of incorporation)

Key Players & Entities

• NORTHERN TRUST CORP (company) — Filer name
• 6022 (dollar_amount) — Standard Industrial Classification code
• DE (company) — State of incorporation
• 50 S LASALLE ST (company) — Business address street
• CHICAGO (company) — Business address city
• IL (company) — Business address state
• 3126306000 (dollar_amount) — Business phone number
• 1934 Act (regulator) — SEC Act

FAQ

Industry Context

Northern Trust Corp. operates within the financial services sector, specifically as a state commercial bank, subject to industry-specific regulations and market dynamics.

Regulatory Implications

As a commercial bank, Northern Trust Corp. is subject to oversight and regulations from various governmental bodies, including those related to banking and securities.

What Investors Should Do

1. Review the full 10-K filing for detailed financial performance metrics.
2. Analyze the risk factors section for potential business challenges and mitigation strategies.
3. Compare key financial data with previous fiscal years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted for the 2023 fiscal year.

Key Financial Figures

• $1.66 — ange On Which Registered Common Stock, $1.66 2/3 Par Value NTRS The NASDAQ Stock Mar
• $150.3 billion — 23, the Bank had consolidated assets of $150.3 billion and common bank equity capital of $11.6
• $11.6 billion — llion and common bank equity capital of $11.6 billion. The Corporation was formed as a holdi
• $150.8 billion — ration had consolidated total assets of $150.8 billion and stockholders' equity of $11.9 billi
• $11.9 billion — 0.8 billion and stockholders' equity of $11.9 billion. The Corporation expects that the Bank
• $14.36 — and assets under management (AUM) were $14.36 trillion, $10.88 trillion, and $1.03 tr
• $10.88 — management (AUM) were $14.36 trillion, $10.88 trillion, and $1.03 trillion, respectiv
• $1.03 — e $14.36 trillion, $10.88 trillion, and $1.03 trillion, respectively. WEALTH MANAGE
• $1.04 — AUC/A, assets under custody, and AUM of $1.04 trillion, $1.03 trillion, and $402.5 bi
• $402.5 b — of $1.04 trillion, $1.03 trillion, and $402.5 billion, respectively, at December 31, 20
• $1.43 — discussed above, Northern Trust managed $1.43 trillion in assets as of December 31, 2
• $402.5 billion — rillion for Asset Servicing clients and $402.5 billion for Wealth Management clients. Compet
• $100 billion — ould require banking organizations with $100 billion or more in total assets to comply with

Filing Documents

• ntrs-20231231.htm (10-K) — 7494KB
• a202310-kexx43.htm (EX-4.3) — 71KB
• a202310-kexx105.htm (EX-10.5) — 135KB
• a202310-kexx1016.htm (EX-10.16) — 65KB
• a202310-kexx21.htm (EX-21) — 92KB
• a202310-kexx23.htm (EX-23) — 2KB
• a202310-kexx311.htm (EX-31.1) — 11KB
• a202310-kexx312.htm (EX-31.2) — 11KB
• a202310-kexx32.htm (EX-32) — 7KB
• a202310-kexx97.htm (EX-97) — 40KB
• image2.jpg (GRAPHIC) — 5KB
• image_0a.jpg (GRAPHIC) — 1KB
• ntrs-20231231_g1.jpg (GRAPHIC) — 113KB
• ntrs-20231231_g2.jpg (GRAPHIC) — 5KB
• 0000073124-24-000073.txt (&nbsp;) — 36394KB
• ntrs-20231231.xsd (EX-101.SCH) — 173KB
• ntrs-20231231_cal.xml (EX-101.CAL) — 272KB
• ntrs-20231231_def.xml (EX-101.DEF) — 1125KB
• ntrs-20231231_lab.xml (EX-101.LAB) — 1978KB
• ntrs-20231231_pre.xml (EX-101.PRE) — 1522KB
• ntrs-20231231_htm.xml (XML) — 8214KB

Risk Factors

Item 1A Risk Factors 14

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 32

Cybersecurity

Item 1C Cybersecurity 33

Properties

Item 2 Properties 34

Legal Proceedings

Item 3 Legal Proceedings 34

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 34 Supplemental Item Information About Our Executive Officers 35 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 37

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 39

Quantitative and Qualitative Disclosures About Market Risk

Item 7A Quantitative and Qualitative Disclosures About Market Risk 95

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 95

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 172

Controls and Procedures

Item 9A Controls and Procedures 172

Other Information

Item 9B Other Information 174

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 174 PART III

Directors, Executive Officers and Corporate Governance

Item 10 Directors, Executive Officers and Corporate Governance 174

Executive Compensation

Item 11 Executive Compensation 174

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 174

Certain Relationships and Related Transactions, and Director Independence

Item 13 Certain Relationships and Related Transactions, and Director Independence 174

Principal Accountant Fees and Services

Item 14 Principal Accountant Fees and Services 174 PART IV

Exhibits and Financial Statement Schedules

Item 15 Exhibits and Financial Statement Schedules 175

Form 10-K Summary

Item 16 Form 10-K Summary 178

Signatures

Signatures 179 2023 ANNUAL REPORT | NORTHERN TRUST CORPORATION i 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 AS Asset Servicing ASC Accounting Standards Codification ASU Accounting Standards Update AUC/A Assets Under Custody/Administration AUM Assets Under Management 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 Basel III Industry-standard guidelines published by the Basel Committee Basel III Endgame Proposal Proposed rule issued by U.S. banking agencies to implement the Basel III endgame agreement for large banks BMR European Union Benchmarks Regulation Brexit The withdrawal of the United Kingdom from the European Union BRRD Bank Recovery and Resolution Directive (EU) Business Risk Committee Business Risk Committee of the Board of Directors CCAR Comprehensive Capital Analysis and Review CCPA California Consumer Privacy Act, as amended CDFIs Community Development Financial Institutions CEOC Compliance & Ethics Oversight Committee CFPB Consumer Financial Protection Bureau CFTC U.S. Commodity Futures Trading Commission Corporation Northern Trust Corporation CRA Community Reinvestment Act CRC Credit Risk Committee CRD Capital Requirements Directive of June 26, 2013 (EU) CRO Chief Risk Officer CRR Capital Requirements Regulation of June 26, 2013 (EU) CSD Central Securities Depositories CSDR Central Securities Depositories Regulation (EU) CSSF Commis

– BUSINESS

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, 2023, the Bank had consolidated assets of $150.3 billion and common bank equity capital of $11.6 billion. The Corporation was formed as a holding company for the Bank in 1971. The Corporation has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. At December 31, 2023, the Corporation had consolidated total assets of $150.8 billion and stockholders' equity of $11.9 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: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing 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 Asset Servicing and Wealth Management. Northern Trust

View Full Filing

View this 10-K filing on SEC EDGAR