Northern Trust

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Northern Trust Corporation
Company type
Public
Nasdaq: NTRS
S&P 500 Index component
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HeadquartersChicago, Illinois, U.S.
Key people
Michael G. O'Grady (chairman and CEO)
ProductsConsumer banking, corporate banking, insurance, investment banking, client valuations, asset servicing, private banking, private equity, wealth management, credit cards, financial analysis
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AUMIncrease US$1.8 trillion (December 31, 2025)
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Total equityIncrease $12.07 billion (EOP 2025)
Number of employees
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Websitewww.northerntrust.com
Footnotes / references
[1]

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Northern Trust Corporation is an American financial services company headquartered in Chicago, Illinois, that caters to corporations, institutional investors, and ultra high net worth individuals. Northern Trust is one of the largest banking institutions in the United States and one of the oldest banks in continuous operation. As of December 31, 2025, it had $1.8 trillion in assets under management and $14.9 trillion in assets under custody. Northern Trust Corporation is incorporated in Delaware.[3]

The company has offices in 56[citation needed] US states and 20 international offices across countries in Canada, Europe, the Middle East, and the Asia-Pacific region. It is ranked 269 on the Fortune 1000 as of late 2025.

Current operations

Asset servicing

Asset Servicing is a global provider of custodian bank, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefits services, securities lending, foreign exchange market, treasury management, brokerage firm services, transition management services, banking, and cash management services to corporate and public pension funds, foundations, financial endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors.[1] At the end of May 2020, Northern Trust Corporation entered into a strategic alliance with BlackRock. This alliance entails working with BlackRock on its platform called Aladdin with mutual clients.[4]

Wealth management

Over 20% of the wealthiest families in the United States are clients of the company's wealth management division. It provides personal trust, investment management, custodian bank, and philanthropic services, financial consulting, guardianship and estate administration, qualified retirement plans and private and business banking. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses in its target markets with assets typically exceeding $75 million. Wealth management services are delivered through a network of 85 offices in 18 U.S. states as well as offices in London, Guernsey, and Abu Dhabi.[1]

Northern Trust Asset Management (NTAM)

Northern Trust Asset Management provides investment management services. It offers both active management and passive management strategies for equity and fixed income investing, as well as alternative asset classes such as private equity and hedge funds and multi-manager products and services.[citation needed]

History

Northern Trust Building in Milwaukee

Northern Trust was founded in 1889 by Byron Laflin Smith in a one-room office in the Rookery Building in The Loop, Chicago, with a focus on providing trust and banking services for the city's prosperous citizens. It opened on August 12, 1889, with 7 accounts and $137,981.25 in deposits.[5] Smith provided 40% of the bank's original capitalization of $1 million,[6] and the original 27 shareholders included Marshall Field, Martin A. Ryerson, and Philip D. Armour.[citation needed]

The company's headquarters building at 50 South LaSalle Street in the Financial District of Chicago dates from 1905 and was designed by Frost and Granger.[7] The structure opened with five stories, but is designed to accommodate additional floors. However, when the bank needed additional space in 1965, it opted to construct a new 14-story building in the international style to the west and selected Cesar Pelli as its architect.[8]

In 1914, Byron Laflin Smith died. His son, Solomon Albert Smith, took over the bank.[9]

The company's conservative policies served it well during the 1920s and the company's assets actually grew during the Great Depression, while many other banks suffered from bank failure.[10][5]

By 1941, nearly half of all the bank's commercial accounts were drawn from outside the Chicago metropolitan area. During World War II, the company took part in the government's war bond drives and provided loans for manufacturing war materials under special government programs. The war created more opportunities for the bank; all sectors of its business expanded.[5]

During the 1950s, Northern Trust spent heavily to develop automated banking services, including the first fully automated financial statements for trust clients.[5]

In 1963, Solomon A. Smith died. Solomon Byron Smith became chairman of the executive committee and his brother, Edward Byron Smith, became chairman.[11]

In 1986, the bank acquired First Lake Forest Corporation for $61 million in cash.[12]

Edward Byron Smith retired as chief executive officer in 1979.[13] He was succeeded by E. Norman "Bud" Staub.[14] A few years later, Philip W. K. Sweet took over but he resigned in 1984.[15]

In 1984, Weston Christopherson, former CEO of Jewel, took the helm. He is credited with guiding the bank through a difficult period when sour loans to Latin American countries were hurting profits. When oil prices dropped suddenly in the early 1980s, many South American nations realized they could not repay their enormous bank loans. The bank suffered uncharacteristically high losses. Aggressive management, loan reserves, and write-offs enabled the bank to restore its asset quality. During Christopherson's six years at Northern Trust, profits rose from $34 million to $113 million.[16] At the time of his retirement in 1990, the company was the 11th most profitable of the 100 largest banks in the United States.[17]

William A. Osborn was named president and chief operating officer in 1993 and became chairman and chief executive officer, in addition to president, in 1995.[18][19]

In 2005, Northern Trust and Enron reached a $365 million settlement[20] with 20,000 employees of Enron after the energy company's collapse (see Enron scandal). Northern Trust had managed the 401k plan for Enron's employeees, who alleged mismanagement and breach of fiduciary duty. The initial settlement was reduced a year later to $32.5 million in an agreement approved by federal judge Melinda Harmon, with Northern Trust neither admitting nor denying wrongdoing.[21]

Osborn stepped down as president in 2006 and as CEO on January 1, 2008.[18][19] Frederick H. "Rick" Waddell then became chairman and CEO.[22]

During his tenure, Waddell was able to guide the bank through the 2008 financial crisis. In 2009 Northern Trust was one of 3 banks able to gain large profits. Along with M&T Bank, Northern Trust was one of two banks in the S&P 500 Index not to lower their dividends during the 2008 financial crisis.[23]

In November 2008, the United States Department of the Treasury invested $1.5 billion in the company as part of the Troubled Asset Relief Program and in June 2009, the company repurchased the investment from the Treasury.[24] The company had been criticized for heavy spending on parties during a 2009 golf tournament that it sponsored, after receiving government funds.[25]

The company strives to give approximately 1.5% of its pre-tax profits to charities every year. In the 10 years preceding 2014, the company gave over $120 million in support of non-profit organizations.[26]

In 2017, Northern Trust acquired UBS Asset Management's fund administration servicing units in Switzerland and Luxembourg.[27]

In 2018, Michael O'Grady became chief executive officer of the company.[28] He also assumed the chairmanship on January 23, 2019.[29]

In January 2026, Northern Trust reported fourth-quarter net income of $466 million and an 11% increase in assets under custody/administration (AUC/A) to $18.7 trillion.[30]

References

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  1. ^ a b c Page Module:Citation/CS1/styles.css has no content."Northern Trust Corporation 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ Page Module:Citation/CS1/styles.css has no content."Assets Under Custody (AUC) or Assets Under Administration (AUA)". www.northerntrust.com.
  3. ^ Page Module:Citation/CS1/styles.css has no content."10-K". Securities and Exchange Commission. Retrieved 20 April 2021.
  4. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust and BlackRock Form Strategic Alliance on Data and Aladdin". Sovereign Wealth Fund Institute. Retrieved 2020-06-13.
  5. ^ a b c d Page Module:Citation/CS1/styles.css has no content."Gallery: Northern Trust celebrates 125 years in Chicago". Crain's Chicago Business. August 12, 2014. Archived from the original on April 29, 2018. Retrieved April 29, 2018.
  6. ^ Page Module:Citation/CS1/styles.css has no content."Our Defining Moments".
  7. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust Company Building". Chicago Architecture Info. Archived from the original on 2019-12-08. Retrieved 2012-01-20.
  8. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust Bank Annex". Emporis. Archived from the original on February 9, 2019. Retrieved February 6, 2019.
  9. ^ Page Module:Citation/CS1/styles.css has no content."Byron Laflin Smith Dead; Chicago Banker Succumbs to Heart Disease". The New York Times. March 23, 1914.
  10. ^ Page Module:Citation/CS1/styles.css has no content."Business: Loop Flurry". Time. July 4, 1932.
  11. ^ Page Module:Citation/CS1/styles.css has no content."Solomon Byron Smith, Retired Bank Official". Chicago Tribune. October 10, 1986.
  12. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust". The New York Times. August 9, 1986.
  13. ^ Page Module:Citation/CS1/styles.css has no content.Potter, Will (July 2, 2002). "Edward Byron Smith, 93". Chicago Tribune.
  14. ^ Page Module:Citation/CS1/styles.css has no content.Jensen, Trevor (January 26, 2007). "E. Norman "Bud" Staub: 1916 - 2007". Chicago Tribune.
  15. ^ Page Module:Citation/CS1/styles.css has no content.Salpukas, Agis (April 18, 1984). "Chief to Step Down At Northern Trust". The New York Times.
  16. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust CEO Weston R. Christopherson". Chicago Tribune. June 1, 1994.
  17. ^ Page Module:Citation/CS1/styles.css has no content."Weston Christopherson, Life Trustee". University of Chicago Chronicle. Vol. 13, no. 20. June 9, 1994.
  18. ^ a b Page Module:Citation/CS1/styles.css has no content.Yue, Lorene (July 21, 2009). "Northern Trust's Osborn to retire". Crain's Chicago Business.
  19. ^ a b Page Module:Citation/CS1/styles.css has no content.Yerak, Becky (November 15, 2009). "William Osborn's 39-year career at Northern Trust Corp. comes to an end". Chicago Tribune.
  20. ^ Page Module:Citation/CS1/styles.css has no content.Shulz, Ellen (May 14, 2004). "Enron Settles With Employees Who Lost Retirement Money". The Wall Street Journal. New York City. Retrieved 2020-01-11.
  21. ^ Page Module:Citation/CS1/styles.css has no content.Fowler, Tom (July 26, 2006). "Judge approves $37.5 million Enron 401(k) settlement". The Houston Chronicle. Retrieved 11 January 2020.
  22. ^ Page Module:Citation/CS1/styles.css has no content.Daniels, Steve (November 20, 2008). "Northern Trust CEO elected to Chicago Fed board". Crain's Chicago Business.
  23. ^ Page Module:Citation/CS1/styles.css has no content.Engren, John (February 20, 2012). "M&T Bank's Bob Wilmers is Too Sharp to Fail". Institutional Investor. Archived from the original on August 6, 2017. Retrieved August 6, 2017.
  24. ^ Page Module:Citation/CS1/styles.css has no content.Daniels, Steve (June 17, 2009). "Northern Trust repays TARP $1.58B". Crain's Chicago Business.
  25. ^ Page Module:Citation/CS1/styles.css has no content.Weitzman, Hal (December 30, 2009). "Northern Trust says the party is over". Financial Times. London. Archived from the original on 2022-12-11. Retrieved 2018-04-29.
  26. ^ Page Module:Citation/CS1/styles.css has no content.Ochs, Alyssa (August 4, 2014). "Getting to Know Deborah Liverett and Northern Trust Grantmaking". Inside Philanthropy. Archived from the original on October 21, 2017. Retrieved October 20, 2017.
  27. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust Completes Strategic Acquisition of UBS Asset Management's Fund Services Units in Luxembourg and Switzerland" (Press release). Northern Trust. October 2, 2017 – via Business Wire.
  28. ^ Page Module:Citation/CS1/styles.css has no content.Cahill, Joe (October 20, 2017). "Northern Trust's biggest asset: dependability". Crain's Chicago Business.
  29. ^ Page Module:Citation/CS1/styles.css has no content.Baert, Rick (November 13, 2018). "Northern Trust names new chairman". Pensions & Investments. Retrieved 2021-09-29.
  30. ^ Page Module:Citation/CS1/styles.css has no content."Northern Trust Corp Form 8-K Earnings Report (Jan 22, 2026)". SEC.gov.

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