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Northern Trust Press Release


Northern Trust Receives Authority To Repay U.S. $1.576 Billion



CHICAGO, June 09, 2009 —

Northern Trust Corporation (Nasdaq: NTRS) announced today that it received authority from the federal government to redeem $1.576 billion in preferred shares issued to the U.S. Department of the Treasury under the TARP Capital Purchase Program.  Northern Trust also plans to give notice to the U.S. Department of the Treasury of its intention to purchase a related warrant in accordance with standardized terms of the preferred share issuance agreement.

"Northern Trust is one of the best capitalized major banks in the industry and will remain so following our exit from the TARP Capital Purchase Program," Northern Trust President and Chief Executive Officer Frederick H. Waddell said.  "We supported the Capital Purchase Program as an important element in restoring stability to the U.S. financial system and acknowledge the taxpayers' support of the financial system during these difficult times. Now we are pleased to return this capital in the best interests of our shareholders, clients, employees and taxpayers."

Northern Trust manages its balance sheet portfolio conservatively, and maintains capital levels that are more than adequate for its risk profile. In April, Northern Trust became one of the first major banks in the Capital Purchase Program to successfully access public equity and long-term debt markets, raising $836 million by the issuance of common shares and $500 million of senior notes. Northern Trust has not issued any debt under the FDIC’s Temporary Liquidity Guarantee Program or any other federal guarantee program.

As of March 31, 2009, Northern Trust’s tangible common equity / tangible assets ratio was 5.9 percent compared to a median of 4.6 percent at the 20 largest U.S.-based banks. Accounting for redemption of the preferred shares and the issuance of common shares in April, Northern Trust’s tangible common equity / tangible assets ratio would have been 6.9 percent.

Northern Trust continues to make high-quality loans to support creditworthy households and businesses. As of March 31, 2009, Northern Trust’s loan portfolio totaled $30.4 billion – 14 percent more than at the same time last year.

Upon redemption of the preferred shares Northern Trust will have paid the government a 5 percent annualized return.

This news release may be deemed to include forward-looking statements, such as statements that relate to the common stock offering and the planned offering of notes and whether or not Northern Trust will consummate the offerings. Forward-looking statements are typically identified by words or phrases, such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are Northern Trust’s current estimates or expectations of future events or future results. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Northern Trust Corporation’s 2008 Annual Report to Shareholders, including the section of Management’s Discussion and Analysis captioned “Factors Affecting Future Results,” and periodic reports to the Securities and Exchange Commission, including the section captioned “Risk Factors,” contain additional information about factors that could affect actual results, including: economic, market, and monetary policy risks; operational risks; investment performance, fiduciary, and asset servicing risks; credit risks; liquidity risks; holding company risks; regulation risks; litigation risks; tax and accounting risks; strategic and competitive risks; and reputation risks. 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.

Northern Trust has filed a registration statement (including a prospectus) with the Securities and Exchange Commission for the equity offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Northern Trust has filed with the Securities and Exchange Commission for more complete information about Northern Trust and the equity offering.

These documents are available for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, a copy of a prospectus for the equity offering may be obtained from either: Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, NY 10004, telephone: 212-902-1171 or 866-471-2526, fax: 212-902-9316, email: Prospectus-ny@ny.email.gs.com; or Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York, 10014, telephone (866) 718-1649, or by e-mailing prospectus@morganstanley.com.

About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has a network of 85 offices in 18 U.S. states and has international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2009, Northern Trust had assets under custody of US$2.8 trillion, and assets under investment management of US$522.3 billion. Northern Trust, founded in 1889, has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology.