Northern Trust Corporation Reports Record 2001 First Quarter Earnings Of $.55 Per Share, Up 12%.

Apr 16, 2001, 01:00 ET from Northern Trust Corporation

    CHICAGO, April 16 /PRNewswire/ -- Northern Trust Corporation reported
 record net income per share of $.55 for the first quarter, an increase of 12%
 from the $.49 per share earned a year ago.  Net income also increased 12% to a
 record $127.2 million from the $113.3 million earned in the first quarter of
 last year.  This performance resulted in a return on average common equity of
 21.53%.
     William A. Osborn, Chairman and Chief Executive Officer, commented, "We
 are pleased to report another record quarterly performance for Northern Trust.
 This is a most gratifying result given the softening in the general economy
 and the significant decline in the equity markets, which moderated our trust
 fee growth rate.  Although revenues, including trust fees, increased 7%, we
 were able to achieve earnings growth of 12% by aggressively managing our
 business, resulting in expense growth of only 5% and the attainment of
 positive operating leverage.  Trust assets under administration grew to
 $1.65 trillion, up 3% since March 31, 2000, but declined 2% since December 31,
 2000 as a result of lower equity markets.  Assets under management grew
 $14 billion since last year to $337 billion and were down just $1 billion from
 December 31, 2000, reflecting continued new business flows.  These strong
 results during this challenging time continue to validate our focused
 strategy."
 
                      FIRST QUARTER PERFORMANCE HIGHLIGHTS
 
     Revenues increased 7% to a record $551.5 million.  Trust fees grew 7% to
 $305.2 million in the quarter, compared to $286.0 million in the first quarter
 of last year.  Trust fees represented 55% of total first quarter revenues and
 fee-related income represented 71% of total revenues.
     Trust fees from Personal Financial Services (PFS) in the quarter increased
 7% and totaled $156.1 million, compared to $145.5 million in the year-ago
 quarter.  Trust fee growth was a result of strong new business throughout
 Northern Trust's national PFS network, offset in part by lower equity markets.
 All twelve states recorded increases, with the largest states ranging from 1%
 in Florida to 14% in Texas, while the Wealth Management Group grew 11%.
 Wealth Management administers $59.6 billion in assets worldwide, up 5% from
 March 31, 2000.
     With the opening of the Weston, Florida office in early April, Northern
 Trust's network of Personal Financial Services offices reached 82 locations in
 twelve states.  Personal trust assets under administration totaled
 $160.0 billion at March 31, 2001, compared to $162.1 billion at March 31, 2000
 and $168.8 billion at December 31, 2000.  Of these assets under
 administration, $93.3 billion is managed by Northern Trust, compared to
 $97.3 billion one year ago.  Net new recurring PFS trust business sold during
 the quarter totaled approximately $15 million in annualized fees.
     Trust fees from Corporate & Institutional Services (C&IS) in the quarter
 increased 6% to $149.1 million, compared to $140.5 million in the year-ago
 quarter, reflecting strong new business growth offset in part by lower equity
 markets.  C&IS trust fees are derived from a full range of custody, investment
 and advisory services rendered to retirement and other asset pools of
 corporate and institutional clients worldwide.  Custody fees increased to
 $50.7 million, up 16%, reflecting strong new business.  Fees from asset
 management increased 3% to $43.8 million.  Securities lending fees of
 $29.9 million were $2.3 million below the year-ago quarter, which benefited
 from the carryover effect of higher year 2000-related spreads.  Strong new
 business results increased fees generated by Northern Trust Retirement
 Consulting, L.L.C., to $15.3 million, up 17% from last year's first quarter.
     Total C&IS trust assets under administration totaled $1.49 trillion at
 March 31, 2001, compared to $1.44 trillion at March 31, 2000 and
 $1.51 trillion at December 31, 2000.  Of the C&IS trust assets under
 administration, $243.3 billion is managed by Northern Trust, up 8% from March
 31, 2000.  Trust assets under administration include $418.0 billion of global
 custody assets, up 16% from a year ago.  Net new recurring C&IS trust business
 sold during the quarter totaled approximately $19 million in annualized fees.
     Foreign exchange trading profits were $34.9 million for the quarter, up 3%
 from the first quarter of 2000.  The current year quarter benefited from
 market volatility in the yen and a higher level of client transaction volume.
     Total treasury management revenues, which include both fees and the
 computed value of compensating deposit balances, totaled $28.7 million, up 11%
 from last year's first quarter due to new business and higher transaction
 volumes from existing clients.  The fee portion of these revenues in the
 quarter was $20.1 million, up 18% from $17.1 million in the comparable quarter
 last year, partly as a result of more clients electing to pay for services in
 fees rather than in compensating deposit balances.  Revenues from security
 commissions and trading income were $9.6 million, unchanged from last year.
 Other operating income was $19.7 million for the first quarter compared with
 $15.7 million in the same period last year.  The increase resulted primarily
 from higher trust deposit-related revenues and loan service fees.
     Net interest income for the quarter, stated on a fully taxable equivalent
 basis, totaled a record $162.0 million, up 7% from the $150.8 million reported
 in the prior year quarter.  The increase in net interest income reflects 14%
 growth in average earning assets and a 10% increase in noninterest-related
 funds, primarily demand deposits and equity.  The asset growth included a 14%,
 or $2.1 billion, increase in loans and leases.  Securities increased 23%, or
 $1.9 billion, due to a higher level of investments in short-term U.S. agency
 securities.  Money market assets were unchanged.  The net interest margin
 narrowed to 2.05% versus 2.16% in the year-ago quarter, but improved from
 1.96% in the fourth quarter of 2000.  The decrease from a year ago is due
 primarily to the increase in short-term, lower-margin federal agency
 securities and a greater reliance on interest-related funding sources.  The
 improvement from the fourth quarter reflects the benefit of lower interest
 rates, growth in equity and higher loan volume.
     Nonperforming assets totaled $112.7 million at March 31, 2001 compared to
 $78.5 million at December 31, 2000 and $58.6 million at March 31, 2000.  The
 increase during the quarter primarily reflects the impact of one commercial
 loan to a manufacturing company that filed for Chapter 11 reorganization early
 in April, 2001.
     The provision for credit losses was $5.0 million in the quarter compared
 to $4.0 million for the same quarter last year and $5.0 million in the fourth
 quarter of 2000.  There were essentially no net charge-offs for the quarter
 compared to $.2 million in the year-ago quarter.  The credit provision, net of
 charge-offs, resulted in an increase in the reserve for credit losses to
 $167.9 million at March 31, 2001, representing a reserve to loan ratio of .94%
 compared to .90% at December 31, 2000.  Nonaccrual loans of $111.1 million at
 quarter-end represent .62% of total loans and were covered 1.5 times by the
 reserve.
     Noninterest expenses totaled $341.6 million for the quarter, an increase
 of 5% from the $326.1 million in the year-ago quarter.  Expense growth has
 been reduced from the rate experienced in recent quarters partially as a
 result of initiatives implemented by management to reduce certain
 discretionary expenses.  These initiatives include closely monitoring staffing
 levels, limiting staff-related and other discretionary expenses, and modifying
 some cash incentive plans for 2001 to include a stock option grant component.
 This last initiative resulted in a $5.7 million expense savings in the quarter
 when compared to programs in place prior to this initiative.  Approximately
 two-thirds of the increase in noninterest expenses related to compensation and
 employee benefits and was primarily attributable to staff growth and merit
 increases, partially offset by lower performance-based pay.  Performance-based
 pay in the prior year quarter was impacted by the significant increase in the
 price of Northern Trust Corporation common stock during that quarter.  Current
 quarter performance-based compensation levels reflect the impact of slower
 revenue growth, lower investment portfolio performance and the modifications
 made to incentive plans.  Staff levels increased from one year ago to support
 growth initiatives and strong new business in both PFS and C&IS.  Staff on a
 full-time equivalent basis at March 31, 2001 totaled 9,537, up 837 or 10% from
 March 31, 2000.  Since December 31, 2000, staff has increased only 71
 positions, or .8%.
     The balance of the expense growth reflects increased costs associated with
 technology investments, including e-commerce initiatives, business promotion,
 office expansion, and operating costs relating to the significant growth in
 transaction volumes.  These increases were offset by a number of factors,
 including among others, lower stock-related directors compensation and a
 decrease in subcustodian and sub-advisor costs.
 
                                 BALANCE SHEET
 
     Balance sheet assets averaged $35.7 billion for the quarter, up 14% from
 last year's first quarter average of $31.3 billion, primarily reflecting
 growth in loans and securities.  Loans and leases averaged $17.7 billion for
 the quarter, an increase of $2.1 billion or 14%.  Reflecting strong growth in
 lending to Wealth Management and private banking clients, personal loans
 increased $554 million or 33% to average $2.3 billion for the quarter.
 Residential mortgages increased $559 million or 9% to average $6.8 billion for
 the quarter and represented 39% of the total loan portfolio.  Commercial and
 industrial loans averaged $5.0 billion during the quarter compared to
 $4.6 billion in the first quarter of 2000.  The securities portfolio increased
 23% to $9.9 billion on average during the period while money market assets
 averaged $4.5 billion in the quarter, unchanged from last year.
     Common stockholders' equity averaged $2.4 billion, up 14% from last year's
 first quarter.  The increase primarily reflects the retention of earnings
 offset in part by the repurchase of common stock pursuant to the Corporation's
 share buyback program.  During the quarter, the Corporation acquired a total
 of 463,395 shares at a cost of $34.4 million.  An additional 6.7 million
 shares may be purchased after March 31, 2001 under the current share buyback
 program.
 
                           FORWARD-LOOKING STATEMENTS
 
     This news release may be deemed to include forward-looking statements,
 such as statements that relate to Northern Trust's financial goals, dividend
 policy, expansion and business development plans, business prospects and
 positioning with respect to market and pricing trends, new business results
 and outlook, changes in securities market prices, credit quality, planned
 capital expenditures and technology spending, and the effect of various
 matters (including changes in accounting standards and interpretations) on
 Northern Trust's business and results.  Actual results could differ materially
 from those indicated by these statements.  Northern Trust Corporation's 2000
 Annual Report to Stockholders, including the section of Management's
 Discussion and Analysis captioned "Factors Affecting Future Results," and
 periodic reports to the Securities and Exchange Commission contain additional
 information about factors that could affect actual results, including certain
 economic, interest rate, market and credit risks, competitive conditions,
 Northern Trust's success in executing various parts of its business plans,
 technology risks, including material systems interruptions or errors, and
 risks associated with changes in the regulatory framework resulting from
 enactment of the Gramm-Leach-Bliley Act of 1999 and other regulatory changes
 and factors.  All forward-looking statements included in this news release are
 based on information available at the time of the release, and Northern Trust
 Corporation assumes no obligation to update any forward-looking statement.
 
               WEBCAST OF FIRST QUARTER EARNINGS CONFERENCE CALL
 
     Northern Trust's first quarter earnings conference call will be webcast
 live on Monday, April 16, 2001.  The Internet webcast opens the call to all
 investors, allowing them to listen to the Chief Financial Officer's comments.
 The live call will be conducted at 11 a.m. CDT and is accessible on Northern
 Trust's web site at:
 
     http://www.northerntrust.com/aboutus/news/financial_releases.html .
 
     A replay will be available beginning at 1:00 p.m. CDT on April 16, 2001
 until 6:00 p.m. on April 23, 2001.  Participants will need RealPlayer(TM)
 software, that can be downloaded free through Northern's web  site.  This
 earnings release can also be accessed at the above web address.
 
 
                           NORTHERN TRUST CORPORATION
               (Supplemental Consolidated Financial Information)
 
     STATEMENT OF INCOME STATISTICS
     ($ In Millions Except Per Share Data)
                                                   FIRST QUARTER
                                       2001            2000        % Change (*)
 
     Noninterest Income
       Trust Fees                     $305.2          $286.0             7%
       Foreign Exchange Trading
        Profits                         34.9            34.0             3
       Treasury Management Fees         20.1            17.1            18
       Security Commissions &
        Trading Income                   9.6             9.6             0
       Other Operating Income           19.7            15.7            25
       Investment Security
        Transactions                       -               -           N/M
     Total Noninterest Income          389.5           362.4             7
 
     Interest Income (Taxable
      Equivalent)                      507.3           447.2            13
     Interest Expense                  345.3           296.4            16
     Net Interest Income (Taxable
      Equivalent)                      162.0           150.8             7
 
     Total Revenue (Taxable
      Equivalent)                      551.5           513.2             7
 
     Noninterest Expenses
       Compensation                    170.4           164.8             3
       Employee Benefits                33.8            29.2            16
       Occupancy Expense                24.7            20.8            19
       Equipment Expense                21.2            17.9            18
       Other Operating Expenses         91.5            93.4            (2)
     Total Noninterest Expenses        341.6           326.1             5
 
     Provision for Credit Losses         5.0             4.0            25
     Taxable Equivalent Adjustment      13.9            11.4            22
     Income before Income Taxes        191.0           171.7            11
     Provision for Income Taxes         63.8            58.4             9
 
     NET INCOME                       $127.2          $113.3            12%
 
     Net Income Per Common Share
       Basic                           $0.57           $0.51            12%
       Diluted                          0.55            0.49            12
 
     Return on Average Common
      Equity                           21.53%          21.70%
     Average Common Equity          $2,370.8        $2,075.4            14%
     Return on Average Assets           1.45%           1.46%
 
     Common Dividend Declared
      per Share                       $0.155          $0.135            15%
     Preferred Dividends
      (millions)                         1.4             1.3             3
 
     Average Common Shares
      Outstanding (000s)
       Basic                         221,568         221,199
       Diluted                       229,821         230,121
     Common Shares Outstanding
      (EOP)                          222,636         222,300
 
     (N/M) Not Meaningful
 
     (*)    Percentage change calculations are based on actual balances rather
            than the rounded amounts presented in Supplemental Consolidated
            Financial Information.
     Note:  Certain reclassifications have been made to prior periods'
            financial statements to place them on a basis comparable with the
            current period's financial statements.
 
 
                             NORTHERN TRUST CORPORATION
                 (Supplemental Consolidated Financial Information)
 
 
     BALANCE SHEET ($ IN MILLIONS)
                                                    MARCH 31
                                      2001            2000         % Change (*)
     Assets
       Money Market Assets          $3,855.6        $4,385.0           (12)%
       Securities
         U.S. Government               189.9           236.9           (20)
         Federal Agency and Other   11,965.5         8,061.9            48
         Municipal                     485.7           485.9           N/M
         Trading Account                16.8             7.7           119
       Total Securities             12,657.9         8,792.4            44
       Loans and Leases             17,868.6        16,478.8             8
       Total Earning Assets         34,382.1        29,656.2            16
       Reserve for Credit Losses      (167.9)         (154.7)            9
       Cash and Due from Banks       1,545.3         1,592.7            (3)
       Trust Security Settlement
        Receivables                    458.0           519.2           (12)
       Buildings and Equipment         466.4           384.9            21
       Other Nonearning Assets       1,513.9         1,221.1            24
      Total Assets                 $38,197.8       $33,219.4            15%
 
     Liabilities and Stockholders' Equity
       Interest-Bearing Deposits
         Savings                    $8,000.6        $7,544.2             6%
         Other Time                  1,835.1           830.0           121
         Foreign Office Time         8,559.3         7,858.6             9
       Total Interest-Bearing
        Deposits                    18,395.0        16,232.8            13
       Borrowed Funds                9,162.1         7,113.5            29
       Senior Notes and
        Long-Term Debt               1,560.1         1,406.0            11
       Total Interest-Related
        Funds                       29,117.2        24,752.3            18
       Demand & Other
        Noninterest-Bearing
        Deposits                     5,196.9         5,221.9           N/M
       Other Liabilities             1,311.1           993.6            32
       Total Liabilities            35,625.2        30,967.8            15
       Common Equity                 2,452.6         2,131.6            15
       Preferred Equity                120.0           120.0             -
      Total Liabilities and
       Stockholders' Equity        $38,197.8       $33,219.4            15%
 
 
 
                           NORTHERN TRUST CORPORATION
               (Supplemental Consolidated Financial Information)
 
 
     AVERAGE BALANCE SHEET ($ IN MILLIONS)
                                                 FIRST QUARTER
                                      2001            2000        % Change (*)
     Assets
       Money Market Assets          $4,530.1        $4,537.5           N/M%
       Securities
         U.S. Government               208.8           250.2           (17)
         Federal Agency and
          Other                      9,200.9         7,268.7            27
         Municipal                     453.9           487.3            (7)
         Trading Account                14.8            11.7            27
       Total Securities              9,878.4         8,017.9            23
       Loans and Leases             17,713.9        15,577.2            14
       Total Earning Assets         32,122.4        28,132.6            14
       Reserve for Credit Losses      (165.4)         (152.8)            8
       Nonearning Assets             3,698.0         3,280.2            13
      Total Assets                 $35,655.0       $31,260.0            14%
 
     Liabilities and Stockholders' Equity
       Interest-Bearing Deposits
         Savings                    $7,971.9        $7,439.8             7%
         Other Time                  1,293.0           789.2            64
         Foreign Office Time         8,642.1         7,866.8            10
       Total Interest-Bearing
        Deposits                    17,907.0        16,095.8            11
       Borrowed Funds                7,828.4         6,121.1            28
       Senior Notes and
        Long-Term Debt               1,452.2         1,424.4             2
       Total Interest-Related
        Funds                       27,187.6        23,641.3            15
       Demand & Other
        Noninterest-Bearing
        Deposits                     4,750.9         4,411.7             8
       Other Liabilities             1,225.7         1,011.6            21
       Total Liabilities            33,164.2        29,064.6            14
       Common Equity                 2,370.8         2,075.4            14
       Preferred Equity                120.0           120.0             -
      Total Liabilities and
       Stockholders' Equity        $35,655.0       $31,260.0            14%
 
 
                         NORTHERN TRUST CORPORATION
             (Supplemental Consolidated Financial Information)
 
 
     QUARTERLY TREND DATA
     ($ In Millions Except Per Share Data)
 
                           2001                          2000
                         Quarters                      Quarters
                          First       Fourth      Third       Second     First
     Net Income Summary
      Trust Fees          $305.2      $304.9      $304.7      $305.6     $286.0
      Other Noninterest
       Income               84.3        84.9        87.2        87.3       76.4
      Net Interest
       Income (Tax
       Equivalent)         162.0       159.9       157.1       154.1      150.8
        Total Revenue
         (Taxable
         Equivalent)       551.5       549.7       549.0       547.0      513.2
      Provision for
       Credit Losses         5.0         5.0         5.0        10.0        4.0
      Noninterest
       Expenses            341.6       342.3       344.9       338.2      326.1
        Pretax Income
         (Taxable
         Equivalent)       204.9       202.4       199.1       198.8      183.1
      Taxable Equivalent
       Adjustment           13.9        14.3        14.3        13.3       11.4
      Provision for
       Income Taxes         63.8        62.6        61.5        62.5       58.4
        Net Income        $127.2      $125.5      $123.3      $123.0     $113.3
 
     Per Common Share
      Net Income
       - Basic             $0.57       $0.56       $0.55       $0.55      $0.51
       - Diluted            0.55        0.54        0.53        0.53       0.49
      Dividend Declared    0.155       0.155       0.135       0.135      0.135
      Book Value (EOP)     11.02       10.54       10.10        9.85       9.59
      Market Value (EOP)   62.50       81.56       88.88       65.06      67.56
 
     Ratios
      Return on Average
       Common Equity       21.53%      21.77%      22.12%      22.81%    21.70%
      Return on Average
       Assets               1.45        1.38        1.42        1.44      1.46
      Net Interest Margin   2.05        1.96        1.99        2.00      2.16
      Productivity
       Ratio(*)              161%        161%        159%        162%      157%
      Risk-based Capital Ratios
       Tier 1               10.1%        9.8%        9.4%        9.1%      9.5%
       Total (Tier 1 +
        Tier 2)             13.7        12.9        12.5        12.3      13.0
       Leverage              7.3         6.9         6.9         6.8       7.4
 
     Trust Assets ($ in Billions) - EOP
      Corporate         $1,486.5    $1,515.0    $1,515.3    $1,445.9  $1,437.4
      Personal             160.0       168.8       171.2       165.0     162.1
       Total Trust
        Assets          $1,646.5    $1,683.8    $1,686.5    $1,610.9  $1,599.5
      Memo: Managed
       Assets             $336.6      $338.0      $338.3      $333.0    $323.1
 
     Asset Quality ($ in Millions) - EOP
      Nonaccrual Loans    $111.1       $76.3       $76.8       $54.4     $56.5
      Other Real Estate
       Owned (OREO)          1.6         2.2         2.0         1.0       2.1
        Total
         Nonperforming
         Assets           $112.7       $78.5       $78.8       $55.4     $58.6
        Nonperforming
         Assets /
         Loans & OREO       0.63%       0.43%       0.44%       0.32%     0.36%
 
      Gross Charge-offs     $0.7        $0.6        $6.8        $5.8      $0.3
      Gross Recoveries       0.7         0.5         0.5         0.4       0.1
        Net Charge-offs     $0.0        $0.1        $6.3        $5.4      $0.2
      Net Charge-offs
       (Annualized) to
       Average Loans       0.001%      0.002%       0.15%       0.13%     0.01%
      Reserve for Credit
       Losses             $167.9      $162.9      $158.0      $159.3    $154.7
      Reserve to
       Nonaccrual and
       Restructured
       Loans                 151%        213%        206%        293%      274%
 
     (*) The productivity ratio is defined as total revenue on a taxable
         equivalent basis divided by noninterest expenses.
 
 

SOURCE Northern Trust Corporation
    CHICAGO, April 16 /PRNewswire/ -- Northern Trust Corporation reported
 record net income per share of $.55 for the first quarter, an increase of 12%
 from the $.49 per share earned a year ago.  Net income also increased 12% to a
 record $127.2 million from the $113.3 million earned in the first quarter of
 last year.  This performance resulted in a return on average common equity of
 21.53%.
     William A. Osborn, Chairman and Chief Executive Officer, commented, "We
 are pleased to report another record quarterly performance for Northern Trust.
 This is a most gratifying result given the softening in the general economy
 and the significant decline in the equity markets, which moderated our trust
 fee growth rate.  Although revenues, including trust fees, increased 7%, we
 were able to achieve earnings growth of 12% by aggressively managing our
 business, resulting in expense growth of only 5% and the attainment of
 positive operating leverage.  Trust assets under administration grew to
 $1.65 trillion, up 3% since March 31, 2000, but declined 2% since December 31,
 2000 as a result of lower equity markets.  Assets under management grew
 $14 billion since last year to $337 billion and were down just $1 billion from
 December 31, 2000, reflecting continued new business flows.  These strong
 results during this challenging time continue to validate our focused
 strategy."
 
                      FIRST QUARTER PERFORMANCE HIGHLIGHTS
 
     Revenues increased 7% to a record $551.5 million.  Trust fees grew 7% to
 $305.2 million in the quarter, compared to $286.0 million in the first quarter
 of last year.  Trust fees represented 55% of total first quarter revenues and
 fee-related income represented 71% of total revenues.
     Trust fees from Personal Financial Services (PFS) in the quarter increased
 7% and totaled $156.1 million, compared to $145.5 million in the year-ago
 quarter.  Trust fee growth was a result of strong new business throughout
 Northern Trust's national PFS network, offset in part by lower equity markets.
 All twelve states recorded increases, with the largest states ranging from 1%
 in Florida to 14% in Texas, while the Wealth Management Group grew 11%.
 Wealth Management administers $59.6 billion in assets worldwide, up 5% from
 March 31, 2000.
     With the opening of the Weston, Florida office in early April, Northern
 Trust's network of Personal Financial Services offices reached 82 locations in
 twelve states.  Personal trust assets under administration totaled
 $160.0 billion at March 31, 2001, compared to $162.1 billion at March 31, 2000
 and $168.8 billion at December 31, 2000.  Of these assets under
 administration, $93.3 billion is managed by Northern Trust, compared to
 $97.3 billion one year ago.  Net new recurring PFS trust business sold during
 the quarter totaled approximately $15 million in annualized fees.
     Trust fees from Corporate & Institutional Services (C&IS) in the quarter
 increased 6% to $149.1 million, compared to $140.5 million in the year-ago
 quarter, reflecting strong new business growth offset in part by lower equity
 markets.  C&IS trust fees are derived from a full range of custody, investment
 and advisory services rendered to retirement and other asset pools of
 corporate and institutional clients worldwide.  Custody fees increased to
 $50.7 million, up 16%, reflecting strong new business.  Fees from asset
 management increased 3% to $43.8 million.  Securities lending fees of
 $29.9 million were $2.3 million below the year-ago quarter, which benefited
 from the carryover effect of higher year 2000-related spreads.  Strong new
 business results increased fees generated by Northern Trust Retirement
 Consulting, L.L.C., to $15.3 million, up 17% from last year's first quarter.
     Total C&IS trust assets under administration totaled $1.49 trillion at
 March 31, 2001, compared to $1.44 trillion at March 31, 2000 and
 $1.51 trillion at December 31, 2000.  Of the C&IS trust assets under
 administration, $243.3 billion is managed by Northern Trust, up 8% from March
 31, 2000.  Trust assets under administration include $418.0 billion of global
 custody assets, up 16% from a year ago.  Net new recurring C&IS trust business
 sold during the quarter totaled approximately $19 million in annualized fees.
     Foreign exchange trading profits were $34.9 million for the quarter, up 3%
 from the first quarter of 2000.  The current year quarter benefited from
 market volatility in the yen and a higher level of client transaction volume.
     Total treasury management revenues, which include both fees and the
 computed value of compensating deposit balances, totaled $28.7 million, up 11%
 from last year's first quarter due to new business and higher transaction
 volumes from existing clients.  The fee portion of these revenues in the
 quarter was $20.1 million, up 18% from $17.1 million in the comparable quarter
 last year, partly as a result of more clients electing to pay for services in
 fees rather than in compensating deposit balances.  Revenues from security
 commissions and trading income were $9.6 million, unchanged from last year.
 Other operating income was $19.7 million for the first quarter compared with
 $15.7 million in the same period last year.  The increase resulted primarily
 from higher trust deposit-related revenues and loan service fees.
     Net interest income for the quarter, stated on a fully taxable equivalent
 basis, totaled a record $162.0 million, up 7% from the $150.8 million reported
 in the prior year quarter.  The increase in net interest income reflects 14%
 growth in average earning assets and a 10% increase in noninterest-related
 funds, primarily demand deposits and equity.  The asset growth included a 14%,
 or $2.1 billion, increase in loans and leases.  Securities increased 23%, or
 $1.9 billion, due to a higher level of investments in short-term U.S. agency
 securities.  Money market assets were unchanged.  The net interest margin
 narrowed to 2.05% versus 2.16% in the year-ago quarter, but improved from
 1.96% in the fourth quarter of 2000.  The decrease from a year ago is due
 primarily to the increase in short-term, lower-margin federal agency
 securities and a greater reliance on interest-related funding sources.  The
 improvement from the fourth quarter reflects the benefit of lower interest
 rates, growth in equity and higher loan volume.
     Nonperforming assets totaled $112.7 million at March 31, 2001 compared to
 $78.5 million at December 31, 2000 and $58.6 million at March 31, 2000.  The
 increase during the quarter primarily reflects the impact of one commercial
 loan to a manufacturing company that filed for Chapter 11 reorganization early
 in April, 2001.
     The provision for credit losses was $5.0 million in the quarter compared
 to $4.0 million for the same quarter last year and $5.0 million in the fourth
 quarter of 2000.  There were essentially no net charge-offs for the quarter
 compared to $.2 million in the year-ago quarter.  The credit provision, net of
 charge-offs, resulted in an increase in the reserve for credit losses to
 $167.9 million at March 31, 2001, representing a reserve to loan ratio of .94%
 compared to .90% at December 31, 2000.  Nonaccrual loans of $111.1 million at
 quarter-end represent .62% of total loans and were covered 1.5 times by the
 reserve.
     Noninterest expenses totaled $341.6 million for the quarter, an increase
 of 5% from the $326.1 million in the year-ago quarter.  Expense growth has
 been reduced from the rate experienced in recent quarters partially as a
 result of initiatives implemented by management to reduce certain
 discretionary expenses.  These initiatives include closely monitoring staffing
 levels, limiting staff-related and other discretionary expenses, and modifying
 some cash incentive plans for 2001 to include a stock option grant component.
 This last initiative resulted in a $5.7 million expense savings in the quarter
 when compared to programs in place prior to this initiative.  Approximately
 two-thirds of the increase in noninterest expenses related to compensation and
 employee benefits and was primarily attributable to staff growth and merit
 increases, partially offset by lower performance-based pay.  Performance-based
 pay in the prior year quarter was impacted by the significant increase in the
 price of Northern Trust Corporation common stock during that quarter.  Current
 quarter performance-based compensation levels reflect the impact of slower
 revenue growth, lower investment portfolio performance and the modifications
 made to incentive plans.  Staff levels increased from one year ago to support
 growth initiatives and strong new business in both PFS and C&IS.  Staff on a
 full-time equivalent basis at March 31, 2001 totaled 9,537, up 837 or 10% from
 March 31, 2000.  Since December 31, 2000, staff has increased only 71
 positions, or .8%.
     The balance of the expense growth reflects increased costs associated with
 technology investments, including e-commerce initiatives, business promotion,
 office expansion, and operating costs relating to the significant growth in
 transaction volumes.  These increases were offset by a number of factors,
 including among others, lower stock-related directors compensation and a
 decrease in subcustodian and sub-advisor costs.
 
                                 BALANCE SHEET
 
     Balance sheet assets averaged $35.7 billion for the quarter, up 14% from
 last year's first quarter average of $31.3 billion, primarily reflecting
 growth in loans and securities.  Loans and leases averaged $17.7 billion for
 the quarter, an increase of $2.1 billion or 14%.  Reflecting strong growth in
 lending to Wealth Management and private banking clients, personal loans
 increased $554 million or 33% to average $2.3 billion for the quarter.
 Residential mortgages increased $559 million or 9% to average $6.8 billion for
 the quarter and represented 39% of the total loan portfolio.  Commercial and
 industrial loans averaged $5.0 billion during the quarter compared to
 $4.6 billion in the first quarter of 2000.  The securities portfolio increased
 23% to $9.9 billion on average during the period while money market assets
 averaged $4.5 billion in the quarter, unchanged from last year.
     Common stockholders' equity averaged $2.4 billion, up 14% from last year's
 first quarter.  The increase primarily reflects the retention of earnings
 offset in part by the repurchase of common stock pursuant to the Corporation's
 share buyback program.  During the quarter, the Corporation acquired a total
 of 463,395 shares at a cost of $34.4 million.  An additional 6.7 million
 shares may be purchased after March 31, 2001 under the current share buyback
 program.
 
                           FORWARD-LOOKING STATEMENTS
 
     This news release may be deemed to include forward-looking statements,
 such as statements that relate to Northern Trust's financial goals, dividend
 policy, expansion and business development plans, business prospects and
 positioning with respect to market and pricing trends, new business results
 and outlook, changes in securities market prices, credit quality, planned
 capital expenditures and technology spending, and the effect of various
 matters (including changes in accounting standards and interpretations) on
 Northern Trust's business and results.  Actual results could differ materially
 from those indicated by these statements.  Northern Trust Corporation's 2000
 Annual Report to Stockholders, including the section of Management's
 Discussion and Analysis captioned "Factors Affecting Future Results," and
 periodic reports to the Securities and Exchange Commission contain additional
 information about factors that could affect actual results, including certain
 economic, interest rate, market and credit risks, competitive conditions,
 Northern Trust's success in executing various parts of its business plans,
 technology risks, including material systems interruptions or errors, and
 risks associated with changes in the regulatory framework resulting from
 enactment of the Gramm-Leach-Bliley Act of 1999 and other regulatory changes
 and factors.  All forward-looking statements included in this news release are
 based on information available at the time of the release, and Northern Trust
 Corporation assumes no obligation to update any forward-looking statement.
 
               WEBCAST OF FIRST QUARTER EARNINGS CONFERENCE CALL
 
     Northern Trust's first quarter earnings conference call will be webcast
 live on Monday, April 16, 2001.  The Internet webcast opens the call to all
 investors, allowing them to listen to the Chief Financial Officer's comments.
 The live call will be conducted at 11 a.m. CDT and is accessible on Northern
 Trust's web site at:
 
     http://www.northerntrust.com/aboutus/news/financial_releases.html .
 
     A replay will be available beginning at 1:00 p.m. CDT on April 16, 2001
 until 6:00 p.m. on April 23, 2001.  Participants will need RealPlayer(TM)
 software, that can be downloaded free through Northern's web  site.  This
 earnings release can also be accessed at the above web address.
 
 
                           NORTHERN TRUST CORPORATION
               (Supplemental Consolidated Financial Information)
 
     STATEMENT OF INCOME STATISTICS
     ($ In Millions Except Per Share Data)
                                                   FIRST QUARTER
                                       2001            2000        % Change (*)
 
     Noninterest Income
       Trust Fees                     $305.2          $286.0             7%
       Foreign Exchange Trading
        Profits                         34.9            34.0             3
       Treasury Management Fees         20.1            17.1            18
       Security Commissions &
        Trading Income                   9.6             9.6             0
       Other Operating Income           19.7            15.7            25
       Investment Security
        Transactions                       -               -           N/M
     Total Noninterest Income          389.5           362.4             7
 
     Interest Income (Taxable
      Equivalent)                      507.3           447.2            13
     Interest Expense                  345.3           296.4            16
     Net Interest Income (Taxable
      Equivalent)                      162.0           150.8             7
 
     Total Revenue (Taxable
      Equivalent)                      551.5           513.2             7
 
     Noninterest Expenses
       Compensation                    170.4           164.8             3
       Employee Benefits                33.8            29.2            16
       Occupancy Expense                24.7            20.8            19
       Equipment Expense                21.2            17.9            18
       Other Operating Expenses         91.5            93.4            (2)
     Total Noninterest Expenses        341.6           326.1             5
 
     Provision for Credit Losses         5.0             4.0            25
     Taxable Equivalent Adjustment      13.9            11.4            22
     Income before Income Taxes        191.0           171.7            11
     Provision for Income Taxes         63.8            58.4             9
 
     NET INCOME                       $127.2          $113.3            12%
 
     Net Income Per Common Share
       Basic                           $0.57           $0.51            12%
       Diluted                          0.55            0.49            12
 
     Return on Average Common
      Equity                           21.53%          21.70%
     Average Common Equity          $2,370.8        $2,075.4            14%
     Return on Average Assets           1.45%           1.46%
 
     Common Dividend Declared
      per Share                       $0.155          $0.135            15%
     Preferred Dividends
      (millions)                         1.4             1.3             3
 
     Average Common Shares
      Outstanding (000s)
       Basic                         221,568         221,199
       Diluted                       229,821         230,121
     Common Shares Outstanding
      (EOP)                          222,636         222,300
 
     (N/M) Not Meaningful
 
     (*)    Percentage change calculations are based on actual balances rather
            than the rounded amounts presented in Supplemental Consolidated
            Financial Information.
     Note:  Certain reclassifications have been made to prior periods'
            financial statements to place them on a basis comparable with the
            current period's financial statements.
 
 
                             NORTHERN TRUST CORPORATION
                 (Supplemental Consolidated Financial Information)
 
 
     BALANCE SHEET ($ IN MILLIONS)
                                                    MARCH 31
                                      2001            2000         % Change (*)
     Assets
       Money Market Assets          $3,855.6        $4,385.0           (12)%
       Securities
         U.S. Government               189.9           236.9           (20)
         Federal Agency and Other   11,965.5         8,061.9            48
         Municipal                     485.7           485.9           N/M
         Trading Account                16.8             7.7           119
       Total Securities             12,657.9         8,792.4            44
       Loans and Leases             17,868.6        16,478.8             8
       Total Earning Assets         34,382.1        29,656.2            16
       Reserve for Credit Losses      (167.9)         (154.7)            9
       Cash and Due from Banks       1,545.3         1,592.7            (3)
       Trust Security Settlement
        Receivables                    458.0           519.2           (12)
       Buildings and Equipment         466.4           384.9            21
       Other Nonearning Assets       1,513.9         1,221.1            24
      Total Assets                 $38,197.8       $33,219.4            15%
 
     Liabilities and Stockholders' Equity
       Interest-Bearing Deposits
         Savings                    $8,000.6        $7,544.2             6%
         Other Time                  1,835.1           830.0           121
         Foreign Office Time         8,559.3         7,858.6             9
       Total Interest-Bearing
        Deposits                    18,395.0        16,232.8            13
       Borrowed Funds                9,162.1         7,113.5            29
       Senior Notes and
        Long-Term Debt               1,560.1         1,406.0            11
       Total Interest-Related
        Funds                       29,117.2        24,752.3            18
       Demand & Other
        Noninterest-Bearing
        Deposits                     5,196.9         5,221.9           N/M
       Other Liabilities             1,311.1           993.6            32
       Total Liabilities            35,625.2        30,967.8            15
       Common Equity                 2,452.6         2,131.6            15
       Preferred Equity                120.0           120.0             -
      Total Liabilities and
       Stockholders' Equity        $38,197.8       $33,219.4            15%
 
 
 
                           NORTHERN TRUST CORPORATION
               (Supplemental Consolidated Financial Information)
 
 
     AVERAGE BALANCE SHEET ($ IN MILLIONS)
                                                 FIRST QUARTER
                                      2001            2000        % Change (*)
     Assets
       Money Market Assets          $4,530.1        $4,537.5           N/M%
       Securities
         U.S. Government               208.8           250.2           (17)
         Federal Agency and
          Other                      9,200.9         7,268.7            27
         Municipal                     453.9           487.3            (7)
         Trading Account                14.8            11.7            27
       Total Securities              9,878.4         8,017.9            23
       Loans and Leases             17,713.9        15,577.2            14
       Total Earning Assets         32,122.4        28,132.6            14
       Reserve for Credit Losses      (165.4)         (152.8)            8
       Nonearning Assets             3,698.0         3,280.2            13
      Total Assets                 $35,655.0       $31,260.0            14%
 
     Liabilities and Stockholders' Equity
       Interest-Bearing Deposits
         Savings                    $7,971.9        $7,439.8             7%
         Other Time                  1,293.0           789.2            64
         Foreign Office Time         8,642.1         7,866.8            10
       Total Interest-Bearing
        Deposits                    17,907.0        16,095.8            11
       Borrowed Funds                7,828.4         6,121.1            28
       Senior Notes and
        Long-Term Debt               1,452.2         1,424.4             2
       Total Interest-Related
        Funds                       27,187.6        23,641.3            15
       Demand & Other
        Noninterest-Bearing
        Deposits                     4,750.9         4,411.7             8
       Other Liabilities             1,225.7         1,011.6            21
       Total Liabilities            33,164.2        29,064.6            14
       Common Equity                 2,370.8         2,075.4            14
       Preferred Equity                120.0           120.0             -
      Total Liabilities and
       Stockholders' Equity        $35,655.0       $31,260.0            14%
 
 
                         NORTHERN TRUST CORPORATION
             (Supplemental Consolidated Financial Information)
 
 
     QUARTERLY TREND DATA
     ($ In Millions Except Per Share Data)
 
                           2001                          2000
                         Quarters                      Quarters
                          First       Fourth      Third       Second     First
     Net Income Summary
      Trust Fees          $305.2      $304.9      $304.7      $305.6     $286.0
      Other Noninterest
       Income               84.3        84.9        87.2        87.3       76.4
      Net Interest
       Income (Tax
       Equivalent)         162.0       159.9       157.1       154.1      150.8
        Total Revenue
         (Taxable
         Equivalent)       551.5       549.7       549.0       547.0      513.2
      Provision for
       Credit Losses         5.0         5.0         5.0        10.0        4.0
      Noninterest
       Expenses            341.6       342.3       344.9       338.2      326.1
        Pretax Income
         (Taxable
         Equivalent)       204.9       202.4       199.1       198.8      183.1
      Taxable Equivalent
       Adjustment           13.9        14.3        14.3        13.3       11.4
      Provision for
       Income Taxes         63.8        62.6        61.5        62.5       58.4
        Net Income        $127.2      $125.5      $123.3      $123.0     $113.3
 
     Per Common Share
      Net Income
       - Basic             $0.57       $0.56       $0.55       $0.55      $0.51
       - Diluted            0.55        0.54        0.53        0.53       0.49
      Dividend Declared    0.155       0.155       0.135       0.135      0.135
      Book Value (EOP)     11.02       10.54       10.10        9.85       9.59
      Market Value (EOP)   62.50       81.56       88.88       65.06      67.56
 
     Ratios
      Return on Average
       Common Equity       21.53%      21.77%      22.12%      22.81%    21.70%
      Return on Average
       Assets               1.45        1.38        1.42        1.44      1.46
      Net Interest Margin   2.05        1.96        1.99        2.00      2.16
      Productivity
       Ratio(*)              161%        161%        159%        162%      157%
      Risk-based Capital Ratios
       Tier 1               10.1%        9.8%        9.4%        9.1%      9.5%
       Total (Tier 1 +
        Tier 2)             13.7        12.9        12.5        12.3      13.0
       Leverage              7.3         6.9         6.9         6.8       7.4
 
     Trust Assets ($ in Billions) - EOP
      Corporate         $1,486.5    $1,515.0    $1,515.3    $1,445.9  $1,437.4
      Personal             160.0       168.8       171.2       165.0     162.1
       Total Trust
        Assets          $1,646.5    $1,683.8    $1,686.5    $1,610.9  $1,599.5
      Memo: Managed
       Assets             $336.6      $338.0      $338.3      $333.0    $323.1
 
     Asset Quality ($ in Millions) - EOP
      Nonaccrual Loans    $111.1       $76.3       $76.8       $54.4     $56.5
      Other Real Estate
       Owned (OREO)          1.6         2.2         2.0         1.0       2.1
        Total
         Nonperforming
         Assets           $112.7       $78.5       $78.8       $55.4     $58.6
        Nonperforming
         Assets /
         Loans & OREO       0.63%       0.43%       0.44%       0.32%     0.36%
 
      Gross Charge-offs     $0.7        $0.6        $6.8        $5.8      $0.3
      Gross Recoveries       0.7         0.5         0.5         0.4       0.1
        Net Charge-offs     $0.0        $0.1        $6.3        $5.4      $0.2
      Net Charge-offs
       (Annualized) to
       Average Loans       0.001%      0.002%       0.15%       0.13%     0.01%
      Reserve for Credit
       Losses             $167.9      $162.9      $158.0      $159.3    $154.7
      Reserve to
       Nonaccrual and
       Restructured
       Loans                 151%        213%        206%        293%      274%
 
     (*) The productivity ratio is defined as total revenue on a taxable
         equivalent basis divided by noninterest expenses.
 
 SOURCE  Northern Trust Corporation