Northern Trust Corp Files Q3 2024 10-Q

TL;DR

Northern Trust's Q3 2024 10-Q is in: financials are detailed, check it out.

AI Summary

Northern Trust Corporation filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details are provided for the third quarter of 2024.

Why It Matters

This filing provides investors and analysts with crucial financial data for Northern Trust, enabling them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Northern Trust is subject to market, credit, and regulatory risks inherent in the banking and asset management sectors.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the financial quarter covered by the report.)
• 12/31 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• NORTHERN TRUST CORP (company) — Filer of the 10-Q
• 0000073124-24-000257 (other) — Accession Number for the filing
• 20240930 (date) — Conformed period of report
• 20241029 (date) — Filed as of date
• 50 S LASALLE ST (other) — Company's business and mail address
• CHICAGO (other) — Company's city
• IL (other) — Company's state
• 60603 (other) — Company's zip code
• 3126306000 (other) — Company's business phone number

FAQ

Key Financial Figures

• $1.66 — ange on which registered Common Stock, $1.66 2/3 Par Value NTRS The NASDAQ Stock Mar
• $2.22 — Net Income per diluted common share was $2.22 in the current quarter and $1.49 in the
• $1.49 — re was $2.22 in the current quarter and $1.49 in the third quarter of 2023. Net Incom
• $137.1 million — d quarter of 2023. Net Income increased $137.1 million to $464.9 million in the current quarte
• $464.9 million — Net Income increased $137.1 million to $464.9 million in the current quarter from $327.8 mill
• $327.8 million — 4.9 million in the current quarter from $327.8 million in the prior-year quarter. Annualized r
• $242.0 m — nths ended September 30, 2024 increased $242.0 million, or 14%, to $1.97 billion in the
• $1.97 billion — 24 increased $242.0 million, or 14%, to $1.97 billion in the current quarter from $1.73 billi
• $1.73 billion — .97 billion in the current quarter from $1.73 billion in the prior-year quarter. The current-
• $68.1 million — . The current-quarter results include a $68.1 million pre-tax gain related to the sale of an
• $51.4 million — sale of an equity investment (after-tax $51.4 million), partially offset by mark-to-market ac
• $12.8 million — sa Class B swap agreements, including a $12.8 million expense related to litigation escrow fu
• $84.7 m — ment and Other Servicing Fees increased $84.7 million, or 8%, from $1.11 billion in the
• $1.11 billion — es increased $84.7 million, or 8%, from $1.11 billion in the prior-year quarter to $1.20 bill
• $1.20 billion — 11 billion in the prior-year quarter to $1.20 billion in the current quarter, primarily due t

Filing Documents

• ntrs-20240930.htm (10-Q) — 5657KB
• q32024ex311.htm (EX-31.1) — 11KB
• q32024ex312.htm (EX-31.2) — 11KB
• q32024ex32.htm (EX-32) — 6KB
• 0000073124-24-000257.txt ( ) — 26597KB
• ntrs-20240930.xsd (EX-101.SCH) — 101KB
• ntrs-20240930_cal.xml (EX-101.CAL) — 208KB
• ntrs-20240930_def.xml (EX-101.DEF) — 706KB
• ntrs-20240930_lab.xml (EX-101.LAB) — 1155KB
• ntrs-20240930_pre.xml (EX-101.PRE) — 965KB
• ntrs-20240930_htm.xml (XML) — 6794KB

– Financial Information

Part I – Financial Information Items 2 and 3: Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk 3

: Consolidated Financial Statements (unaudited)

Item 1: Consolidated Financial Statements (unaudited) 34 Consolidated Balance Sheets 34 Consolidated Statements of Income 35 Consolidated Statements of Comprehensive Income 35 Consolidated Statements of Changes in Stockholders' Equity 36 Consolidated Statements of Cash Flows 38

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 39

: Controls and Procedures

Item 4: Controls and Procedures 83

– Other Information

Part II – Other Information

: Legal Proceedings

Item 1: Legal Proceedings 84

: Risk Factors

Item 1A: Risk Factors 84

: Unregistered Sales of Equity Securities and Use of Proceeds

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 84

: Defaults Upon Senior Securities

Item 3: Defaults Upon Senior Securities 84

: Mine Safety Disclosures

Item 4: Mine Safety Disclosures 84

: Other Information

Item 5: Other Information 84

: Exhibits

Item 6: Exhibits 85

Signatures

Signatures 86 i CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, CONDENSED INCOME STATEMENTS ($ In Millions) 2024 2023 % CHANGE (1) 2024 2023 % CHANGE (1) Noninterest Income $ 1,406.2 $ 1,270.3 11 % $ 4,717.5 $ 3,729.3 26 % Net Interest Income 562.3 456.2 23 1,613.3 1,498.9 8 Total Revenue 1,968.5 1,726.5 14 6,330.8 5,228.2 21 Provision for Credit Losses 8.0 14.0 (43) 7.5 13.5 (44) Noninterest Expense 1,359.4 1,278.2 6 4,258.0 3,895.7 9 Income before Income Taxes 601.1 434.3 38 2,065.3 1,319.0 57 Provision for Income Taxes 136.2 106.5 28 489.6 324.8 51 Net Income $ 464.9 $ 327.8 42 % $ 1,575.7 $ 994.2 59 % PER COMMON SHARE Net Income — Basic $ 2.23 $ 1.49 49 % $ 7.53 $ 4.56 65 % — Diluted 2.22 1.49 49 7.51 4.56 65 Cash Dividends Declared Per Common Share 0.75 0.75 — 2.25 2.25 — Book Value — End of Period (EOP) 59.85 52.95 13 59.85 52.95 13 Market Price — EOP 90.03 69.48 30 90.03 69.48 30 SELECTED BALANCE SHEET DATA ($ In Millions) SEPTEMBER 30, 2024 DECEMBER 31, 2023 % CHANGE (1) End of Period: Total Assets $ 155,753.8 $ 150,783.1 3 % Earning Assets 142,731.1 140,369.6 2 Deposits 121,183.3 116,164.0 4 Stockholders' Equity 12,749.0 11,897.9 7 THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2024 2023 % CHANGE (1) 2024 2023 % CHANGE (1) Average Balances: Total Assets $ 146,842.9 $ 140,201.6 5 % $ 146,654.8 $ 144,691.6 1 % Earning Assets 134,767.8 128,254.4 5 134,662.2 132,747.8 1 Deposits 112,560.7 101,763.1 11 112,754.2 106,477.7 6 Stockholders' Equity 12,474.1 11,536.6 8 12,206.5 11,423.2 7 CLIENT ASSETS ($ In Billions) SEPTEMBER 30, 2024 DECEMBER 31, 2023 % CHANGE (1) Assets Under Custody/Administration (2) $ 17,423.0 $ 15,404.9 13 % Assets Under Custody 13,794.8 11,916.5 16 Assets Under Management 1,621.8 1,434.5 13 N/M - Not meaningful (1) Percentage calculations are based on actual balances rather than the rounded amounts presented

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk 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 third quarter of 2024. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2023. Investors also should read the section titled "Forward-Looking Statements." Certain terms used in this report are defined in the Glossary included in our Annual Report on Form 10-K for the year ended December 31, 2023. THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS General 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: 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. Except where the context requires otherwise, the terms "Northern Trust," "we," "us," "our," "its," or similar terms mean the Corporation and its subsidiaries on a consolidated basis. Overview of Financial Results Net Income per diluted common share was $2.22 in the current quarter and $1.49 in the third quarter of 2023. Net Income increased $137.1 million to $464.9 million in the current quarter from $327.8 million in the prior-year quarter. Annualized return on average common equity was 15.4% in the current quarter and 11.6% in the prior-year quarter. The annualized return on average assets was 1.26% in the current quarter as compared

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View this 10-Q filing on SEC EDGAR