Net income per common share of $2.09 for the nine months ended September30, 2008 was 22% lower than the $2.69 reported in 2007. Net income was$471.4 million compared with $601.9 million earned in the prior year period.

Frederick H. Waddell, President and Chief Executive Officer, commented,"The third quarter of 2008 represented an extraordinarily challenging periodfor the financial services industry and world economy. The financial strengthof Northern Trust, however, continues to be exemplified by ourwell-capitalized balance sheet ratios, the high quality of our loan andinvestment portfolios, and our sound credit ratings, hallmarks of NorthernTrust which have positioned us well to support our clients in these difficulttimes. In support of our clients, we incurred $561.5 million of previouslyannounced charges, which resulted in a net loss of $129 million in thequarter. Northern Trust's position of strength and stability has also fueledgrowth in our deposit base, which increased over 30% as clients sought a safehaven for their funds. While this quarter's results dampen our very strongperformance through the first half of the year, our strategy remainsunchanged. We believe our focused business model, conservative financialpolicies, and commitment to our clients will allow us to manage through thischallenging environment."

THIRD QUARTER PERFORMANCE HIGHLIGHTS

Northern Trust's third quarter 2008 results were negatively impacted bythe following charges, some of which were previously provided as estimates.

Previously Announced Charges

-- A pre-tax charge of $313.9 million ($197.5 million after tax, or$.89 per common share) in connection with an increase in support provided tocash investment funds under existing capital support agreements and theestablishment of a capital support agreement for one additional fund.

-- Pre-tax charges totaling $167.6 million ($105.4 million after tax, or$.47 per common share) in connection with actions taken to provide support forNorthern Trust's securities lending clients.

-- An $80 million pre-tax charge ($50.3 million after tax, or $.23 percommon share) related to the establishment of a program to purchase certainilliquid auction rate securities that were purchased by a limited number ofNorthern Trust clients.

Additional Charges

-- A $9.5 million pre-tax charge ($12.9 million after tax, or $.06 percommon share) reducing net interest income and increasing income taxes relatedto revised estimates regarding the outcome of the Corporation's tax positionwith respect to certain structured leasing transactions.

-- A $16.9 million pre-tax charge ($10.6 million after tax, or $.05 percommon share) to reflect the other-than-temporary impairment of twoasset-backed securities held within Northern Trust's balance sheet investmentportfolio.

Partially offsetting these charges were reductions in performance-basedcompensation and certain defined contribution benefit expense, primarilyreflecting the impact of the above charges on projected full year performance.

Northern Trust's third quarter consolidated revenues reached$938.5 million, up 5% from last year's third quarter. Trust, investment andother servicing fees decreased 7% from last year to $474.9 million andrepresented 51% of third quarter revenues. Total fee-related income increased2% to $672.8 million and represented 72% of revenues.

Trust, investment and other servicing fees from Corporate & InstitutionalServices (C&IS) decreased 13% from the year-ago quarter to $244.5 million,primarily reflecting a decline in securities lending fees and lower marketvaluations, partially offset by new business. The largest component of C&ISfees is custody and fund administration fees, which increased 3% to$164.4 million. Securities lending fees totaled a negative $4.6 millioncompared with $33.0 million in the third quarter last year, primarilyreflecting asset valuation losses in one mark-to-market investment fund usedin our securities lending activities. These valuation losses reduced fees byapproximately $96 million in the current quarter and approximately $36 millionin the prior year quarter. Fees from asset management in the quarter totaled$68.2 million, down 6%. Trust, investment and other servicing fees fromPersonal Financial Services (PFS) in the quarter increased 2% and totaled$230.4 million compared with $226.8 million a year ago. The increase in PFSfees resulted primarily from strong new business, partially offset by lowermarket valuations.

C&IS assets under custody totaled $3.2 trillion, down 15% from a year ago,and included $1.7 trillion of global custody assets, 15% lower than a yearago. C&IS assets under management totaled $511.4 billion, a 17% decrease fromthe prior year. PFS assets under custody totaled $314.2 billion, a5% decrease from $329.2 billion in the prior year quarter. PFS assets undermanagement totaled $141.0 billion, a 4% decrease from $146.9 billion lastyear. The above are in comparison to the twelve month decline in the S&P 500index of approximately 24% and in the EAFE index (USD) of approximately 32%.

Foreign exchange trading income reached a record $141.8 million, up 54% or$49.9 million from the performance in last year's third quarter. The resultsreflect exceptionally high levels of currency volatility and increased clientvolumes.

Revenues from security commissions and trading income equaled$19.2 million, up 5% from the prior year, driven by increased revenue fromcore brokerage services. Other operating income equaled $36.2 millioncompared with $19.2 million in the same period last year. The current quarterresults include $7.2 million of valuation gains recorded on certain creditdefault swap contracts with outside counterparties used to mitigate creditrisk associated with specific commercial credits. Also contributing to thecurrent quarter performance are higher levels of commercial loan-relatedcommitment fees and the foreign exchange rate impact of translating non-U.S.assets and liabilities. A $16.9 million pre-tax charge was recorded toreflect the other-than-temporary impairment of two asset-backed securitiesheld within Northern Trust's balance sheet investment portfolio. The prioryear quarter benefited from an investment security gain of $6.3 millionrecognized on the sale of CME Group Inc. stock.

Net interest income for the quarter, stated on a fully taxable equivalentbasis, totaled $265.7 million, up 15% from $232.0 million reported in theprior year quarter. The current quarter includes the $9.5 million reductionrelated to revised estimates regarding the Corporation's tax dispute withrespect to certain structured lease transactions. Absent this adjustment, netinterest income for the current quarter would have increased 19% from theprior year quarter, primarily reflecting higher levels of average earningassets. Average earning assets of $65.3 billion were 22% higher than a yearago, driven by growth in money market assets and loans. The net interestmargin equaled 1.62%, down from 1.71% in the prior year quarter. The netinterest margin absent the leasing related adjustment would have been 1.68%.

The reserve for credit losses at September 30, 2008 of $207.5 millionincreased $24.4 million from the June 30, 2008 balance. The provision forcredit losses was $25.0 million in the current quarter and net charge-offstotaled $.3 million. The current quarter provision primarily reflects loangrowth and the continued weakness in the broader economic environment. A$6.0 million provision was recorded in the prior year third quarter and netcharge-offs totaled $2.0 million. Nonperforming loans totaled $58.8 millionat September 30, 2008, compared with $30.1 million at June 30, 2008 and$23.4 million at September 30, 2007. The increase primarily reflects theaddition of two loans to nonperforming status. The reserve for credit lossesof $207.5 million included $12.8 million allocated to loan commitments andother off-balance sheet exposures. The remaining $194.7 million reserveassigned to loans and leases at September 30, 2008 represented a reserve toloan and lease ratio of .65%, compared with .60% at June 30, 2008 and .57% ayear ago. Nonperforming loans of $58.8 million at quarter-end represented.20% of total loans and leases and were covered 3.3 times by the assignedreserve.

Noninterest expenses totaled $1.12 billion for the quarter, up 98% from$566.6 million in the year-ago quarter. Included in this total are thepreviously discussed client support-related charges totaling $561.5 million.Without these charges, total noninterest expenses would have totaled$562.5 million, down 1% from the prior year quarter.

Compensation and employee benefit expenses totaled $282.7 million, down$33.9 million or 11% compared with the prior year quarter. The currentquarter decline was primarily driven by a $67.5 million decrease inperformance-based compensation and certain defined contribution benefitexpense, offset in part by higher staff levels, annual salary increases, andhigher employment taxes. Staff on a full-time equivalent basis at September30, 2008 totaled 12,100, up 14% from a year ago.

The expenses associated with outside services totaled $106.5 million, up$7.2 million or 7% from $99.3 million last year. The current quarter increaseprimarily reflects higher expenses for legal, technical and consultingservices.

The remaining expense categories totaled $734.8 million and include the$561.5 million of previously discussed client support-related charges. Theseexpense categories totaled $173.3 million after adjusting for these thirdquarter charges, $22.6 million or 15% higher than the prior year quarter. Theincrease after adjustment is primarily the result of higher charges fromaccount servicing activities and legal matters, increased equipment andsoftware-related expenses, and higher business promotion expenses.

An income tax benefit of $93.4 million was recorded in the current quarterdue to the pre-tax loss reported for the quarter. This resulted in aneffective tax rate of 41.9% as the operating loss resulted primarily from U.S.activities while foreign operations, with lower tax rates, remainedprofitable. The current quarter effective tax rate excluding the impact ofclient support and leasing related charges was 32.0%. The prior year quarterprovision for income taxes was $92.8 million, representing an effective taxrate of 30.8%.

As previously disclosed, the IRS has been in dispute with the leasingindustry and as part of that dispute challenged the Corporation's tax positionwith respect to certain structured leasing transactions. The IRS proposed todisallow certain tax deductions and assess related interest and penalties. OnAugust 6, 2008, the IRS announced that settlements would be offered totaxpayers who participated in Lease-In/Lease-Out (LILO) and Sale-In/Sale-Out(SILO) transactions. Although Northern Trust elected not to participate inthe IRS offer, in light of the settlement terms, the Corporation revised itsestimates regarding the likely outcome of leveraged leasing tax positions.FASB Staff Position No. FAS 13-2, "Accounting for a Change or Projected Changein the Timing of Cash Flows Relating to Income Taxes Generated by a LeveragedLease Transaction" (FSP 13-2) requires a reallocation of lease income from theinception of the leveraged lease if, during the lease term, the expectedtiming of income tax cash flows is revised. As a result of the reallocationof lease income and an increase in taxable income over the life of certain ofthe leveraged leases under the revised assumptions, Northern Trust recorded a$9.5 million charge against interest income. The provision for taxes relatedto this adjustment, inclusive of interest and penalties, totaled $3.4 millionresulting in a $12.9 million reduction in net income for the quarter.Reductions of interest income will be recognized into income over theremaining terms of the affected leveraged leases.

THIRD QUARTER PERFORMANCE VS. SECOND QUARTER

A net loss of $.58 per common share was reported in the third quartercompared with net income per common share of $.96 in the second quarter of2008. A net loss of $129.4 million was reported for the quarter compared withnet income of $215.6 million in the second quarter. The current quarter'sresults were negatively impacted by the client support-related chargestotaling $561.5 million ($353.2 million after-tax or $1.59 per common share).

Consolidated revenues decreased 14% or $155.6 million to $938.5 million.Trust, investment and other servicing fees decreased $170.2 million or 26% inthe third quarter, with C&IS fees decreasing $164.7 million or 40% and PFSfees decreasing $5.5 million or 2%. C&IS fees decreased due to lowersecurities lending fees. Securities lending fees totaled a negative$4.6 million in the current quarter compared with $149.9 million in the secondquarter. Mark-to-market adjustments in one investment fund used in oursecurities lending activities reduced fees by approximately $96 million in thethird quarter and increased fees by approximately $25 million in the secondquarter. The decrease in PFS fees primarily reflects lower market valuations.Net interest income inclusive of leasing adjustments increased $16.9 millionor 7% in the third quarter, reflecting leasing adjustments of $9.5 million inthe third quarter compared with $29.4 million in the second quarter. Absentthese adjustments, net interest income would have decreased $3.0 million or1%. Foreign exchange trading income increased $15.2 million or 12%.

The provision for credit losses totaled $25.0 million in the currentquarter, compared with $10.0 million in the second quarter of 2008.

Noninterest expense totaled $1.12 billion in the third quarter, anincrease of $480.7 million or 75% from the second quarter. Excluding theimpact of the client support-related charges, expenses decreased $80.8 millionor 13%.

Compensation and employee benefits decreased $86.0 million, primarily theresult of a decrease of $85.4 million in performance-based compensation andcertain defined contribution benefit expense.

Outside services totaled $106.5 million compared with $106.2 million inthe second quarter.

Other noninterest expense categories for the current quarter totaled$734.8 million and included the client support-related charges. Excluding theimpact of these items, these expense categories totaled $173.3 millioncompared with prior quarter expenses of $168.4 million. The higher expenselevel in the current quarter is primarily attributable to significantly highercharges from account servicing activities and legal matters.

An income tax benefit of $93.4 million was recorded in the current quarterdue to the pre-tax loss reported for the quarter. This resulted in aneffective tax rate of 41.9% as the operating loss resulted primarily from U.S.activities while foreign operations, with lower tax rates, remainedprofitable. The current quarter effective tax rate excluding the impact ofthe client support and leasing related charges was 32.0%. The second quarterprovision for income taxes was $212.5 million, representing an effective taxrate of 49.6%. The effective tax rate for the second quarter, excluding theimpact of leasing adjustments recorded in that period, was 33.8%.

NINE-MONTH PERFORMANCE HIGHLIGHTS

Net income per common share of $2.09 for the nine months ended September30, 2008 was 22% lower than the $2.69 reported in 2007. Net income was$471.4 million compared with $601.9 million earned in the prior year periodand resulted in a return on average common equity of 12.96% and a return onaverage assets of .89%. The first quarter of 2008 included an after-taxbenefit totaling $153.5 million ($.68 per share) realized in connection withthe March 2008 initial public offering of Visa Inc. (Visa) common stock. Thebenefit reflects a pre-tax gain of $167.9 million on the partial redemption ofNorthern Trust's Visa shares in the initial public offering and a$76.1 million offset to previously established Visa indemnification accrualsand related charges.

($ In Millions Except Nine Months Ended Nine Months Ended Per Share Data) September 30, 2008 September 30, 2007 Amount Per Share Amount Per Share Reported Earnings $471.4 $2.09 $601.9 $2.69 Visa Initial Public Offering (net of $90.5 tax effect) 153.5 .68 - - Operating Earnings $317.9 $1.41 $601.9 $2.69 Northern Trust is providing operating earnings in addition to its reported results prepared in accordance with generally accepted accounting principles in order to provide investors and others with a clearer indication of the results and trends in Northern Trust's core businesses, absent the Visa transaction. On October 14, 2008, Visa released a statement announcing an agreement inprinciple with Discover Financial Services to settle litigation covered byVisa U.S.A. members' indemnification of Visa. The settlement has not beenfinalized and the potential impact of a settlement on Northern Trust's thirdquarter 2008 results is unknown at this time. Should a settlement be announcedin advance of the filing of Northern Trust's Form 10-Q for the quarter endedSeptember 30, 2008, the impact will be reflected in Northern Trust's resultsof operations in that document.

Absent the first quarter Visa transaction, operating earnings per sharefor the nine months ended September 30, 2008 totaled $1.41, a decrease of48% from $2.69 reported last year. Operating earnings were down 47% to$317.9 million compared with $601.9 million last year. The current period'sresults were negatively impacted by the year-to-date client support-relatedcharges totaling $571.4 million ($1.59 per common share) and the second andthird quarter leasing related adjustments totaling $100.2 million ($.44 percommon share).Revenues exclusive of the first quarter Visa transaction totaled$3.01 billion, up 16% from $2.60 billion last year. Trust, investment andother servicing fees were $1.65 billion for the period, up 8% compared with$1.53 billion last year. Trust, investment and other servicing feesrepresented 55% of revenues adjusted to exclude Visa, and total fee-relatedincome represented 74% of total revenues on an adjusted basis.

Trust, investment and other servicing fees from C&IS increased 10% to$952.1 million from $865.2 million a year ago, primarily reflecting newbusiness, partially offset by lower market valuations. Custody and fundadministration fees increased 14% to $511.5 million, reflecting strong growthin global fees. Securities lending fees totaled $177.2 million compared with$152.0 million last year, while fees from asset management were essentiallyunchanged at $214.6 million. Securities lending fees increased primarily dueto improved spreads on the investment of cash collateral, partially offset bynet unrealized asset valuation losses in one mark-to-market investment fundused in our securities lending activities which reduced fees by approximately$168 million in 2008 and approximately $44 million in 2007.

Trust, investment and other servicing fees from PFS increased 4% andtotaled $694.7 million compared with $665.2 million a year ago. The increaseresulted primarily from strong new business, offset in part by lower equitymarkets. Revenue growth continued to be broad-based.

Foreign exchange trading income increased 59% and totaled $381.6 millionin the period compared with $240.1 million last year. The increase reflectsstrong client volumes as well as higher currency volatility. Revenues fromsecurity commissions and trading income were $57.4 million compared with$47.2 million in the prior year resulting from core brokerage, interest rateprotection products, and transition management services. Other operatingincome was $102.8 million for the period, compared with $70.5 million lastyear. The current period results include $14.8 million of valuation gainsrecorded on certain credit default swap contracts with outside counterpartiesused to mitigate credit risk associated with specific commercial credits.Also contributing to the current period performance are higher levels ofcommercial loan-related commitment fees, higher custody-related depositrevenue, and a gain on the redemption of an equity investment. A net loss of$11.9 million was recognized in the current period on investment securitiescompared with a gain of $6.4 million last year.

Net interest income, stated on a fully taxable equivalent basis, totaled$780.6 million, an increase of 19% from $655.4 million reported in the prioryear period. The current period includes the leasing related adjustments thatreduced net interest income by $38.9 million. The current period increasereflects higher levels of average earning assets. Total average earningassets of $62.6 billion were 19% higher than a year ago. The net interestmargin of 1.67% was unchanged from the prior period. Excluding the impact ofthe 2008 leasing adjustments, the net interest margin would have been1.75%, reflecting a widening of the spread between interest rates on shortterm investments and on overnight funding sources, including the impact ofFederal Reserve Bank rate reductions.

The provision for credit losses was $55.0 million for the first ninemonths compared with $10.0 million in 2007. The current period provisionprimarily reflects loan growth and weakness in the broader economicenvironment. Net charge-offs totaled $7.4 million in the current period and$6.5 million in the prior year period.

Noninterest expenses totaled $2.30 billion for the period, up 40% from$1.65 billion a year-ago. Absent the first quarter Visa transaction and thethird quarter client support-related matters, noninterest expenses totaled$1.82 billion, up 10% from the prior year period. Compensation and employeebenefit expenses of $994.9 million represented 55% of total adjusted operatingexpenses. The current period expense increase reflects the impact of higherstaff levels, annual salary increases, and higher employment taxes and healthcare costs, partially offset by a $34.8 million decrease in performance-basedcompensation and certain defined contribution benefit expense.

Expenses associated with outside services totaled $306.6 million, up$29.5 million or 11% from last year, reflecting higher expenses for technicaland consulting services, legal fees, and volume-driven growth in globalsubcustody and investment manager sub-advisor expenses.

The remaining expense categories, exclusive of the first quarter Visareserve reduction and the third quarter client support-related matters,totaled $515.7 million, up 16% from $442.7 million in 2007. The increasereflects higher charges related to account servicing activities and legalmatters, higher business promotion and advertising expenses, increases incomputer software expense, and increased hiring and employee relocationcosts.

Total income tax expense was $312.0 million for the nine months endedSeptember 30, 2008, representing an effective rate of 39.8%. This compareswith $291.2 million in income tax expense and an effective rate of 32.6% for2007. The effective tax rate for the nine months ended September 30, 2008excluding the impact of the client support and leasing related charges was33.2%.

BALANCE SHEET

Assets averaged $73.3 billion for the quarter, up 20% from last year'sthird quarter average of $61.3 billion. Loans and leases averaged$27.7 billion, up 19%. Money market assets averaged $24.8 billion for thequarter, an increase of 52% from the prior year. The securities portfolioaveraged $12.8 billion, down 9% from last year, primarily reflecting adecrease in the average balance of government sponsored agency securitiespartially offset by higher levels of asset-backed securities. The increase inearning assets was primarily funded by growth in non-U.S. office deposits.

Residential mortgages averaged $9.8 billion in the quarter, up 10% fromthe prior year's third quarter, and represented 35% of the total average loanand lease portfolio. Commercial loans averaged $7.1 billion, up 39% from$5.1 billion last year, while personal loans averaged $4.6 billion, up40% from last year's third quarter. Loans outside the U.S. decreased$502.6 million on average from the prior year quarter to $1.4 billion.

Stockholders' equity averaged $5.1 billion, up 20% from last year's thirdquarter. The increase primarily reflects the retention of earnings, offset inpart by the repurchase of common stock pursuant to the Corporation's sharebuyback program. During the third quarter of 2008, the Corporationrepurchased 49,117 shares at a cost of $3.9 million ($78.45 average price pershare). An additional 7.7 million shares are authorized for repurchase afterSeptember 30, 2008 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, dividendpolicy, expansion and business development plans, anticipated expense levelsand projected profit improvements, business prospects and positioning withrespect to market, demographic and pricing trends, strategic initiatives,re-engineering and outsourcing activities, new business results and outlook,changes in securities market prices, credit quality including reserve levels,planned capital expenditures and technology spending, anticipated tax benefitsand expenses, and the effects of any extraordinary events and various othermatters (including developments with respect to litigation, other contingentliabilities and obligations, and regulation involving Northern Trust andchanges in accounting policies, standards and interpretations) on NorthernTrust's business and results. Forward-looking statements are typicallyidentified 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 verbssuch as "may," "will," "should," "would," and "could." Forward-lookingstatements are Northern Trust's current estimates or expectations of futureevents or future results. Actual results could differ materially from thoseindicated by these statements because the realization of those results issubject to many risks and uncertainties. Northern Trust Corporation's 2007Financial Annual Report to Shareholders, including the section of Management'sDiscussion and Analysis captioned "Factors Affecting Future Results," andperiodic reports to the Securities and Exchange Commission, including thesection captioned "Risk Factors," contain additional information about factorsthat could affect actual results, including: economic, market, and monetarypolicy risks; operational risks; investment performance, fiduciary, and assetservicing risks; credit risks; liquidity risks; holding company risks;regulation risks; litigation risks; tax and accounting risks; strategic andcompetitive risks; and reputation risks. All forward-looking statementsincluded in this news release are based on information available at the timeof the release, and Northern Trust Corporation assumes no obligation to updateany forward-looking statement.

WEBCAST OF THIRD QUARTER EARNINGS CONFERENCE CALL

Northern Trust's third quarter earnings conference call will be webcastlive on October 22, 2008. The Internet webcast opens the call to allinvestors, allowing them to listen to the Chief Financial Officer's comments.The live call will be conducted at 11:00 a.m. CDT and is accessible onNorthern Trust's web site at:

http://www.northerntrust.com/financialreleases The only authorized rebroadcasts of the live call will be available onNorthern Trust's web site from 2:00 p.m. CDT on October 22, 2008 through5:00 p.m. CDT on October 29, 2008. Participants will need Windows Mediatmsoftware, which can be downloaded free through Northern's web site. Thisearnings release can also be accessed at the above web address.

NORTHERN TRUST CORPORATION Page 1 (Supplemental Consolidated Financial Information) STATEMENT OF INCOME DATA ($ In Millions Except Per Share Data) THIRD QUARTER 2008 2007 % Change(*) Noninterest Income Trust, Investment and Other Servicing Fees $474.9 $508.8 (7)% Foreign Exchange Trading Income 141.8 91.9 54 Treasury Management Fees 17.6 16.1 9 Security Commissions & Trading Income 19.2 18.2 5 Other Operating Income 36.2 19.2 89 Investment Security Gains (Losses), net (16.9) 6.3 N/M Total Noninterest Income 672.8 660.5 2 Interest Income (Taxable Equivalent) 653.2 739.7 (12) Interest Expense 387.5 507.7 (24) Net Interest Income (Taxable Equivalent) 265.7 232.0 15 Total Revenue (Taxable Equivalent) 938.5 892.5 5 Noninterest Expenses Compensation 230.3 259.5 (11) Employee Benefits 52.4 57.1 (8) Outside Services 106.5 99.3 7 Equipment and Software Expense 60.7 53.6 13 Occupancy Expense 41.8 39.2 7 Other Operating Expenses 632.3 57.9 991 Total Noninterest Expenses 1,124.0 566.6 98 Provision for Credit Losses 25.0 6.0 317 Taxable Equivalent Adjustment 12.3 18.8 (34) Income (Loss) before Income Taxes (222.8) 301.1 (174) Provision (Benefit) for Income Taxes (93.4) 92.8 (201) NET INCOME (LOSS) ($129.4) $208.3 (162)% Per Common Share Net Income (Loss) Basic ($0.58) $0.95 (161)% Diluted (0.58) 0.93 (162) Return on Average Common Equity (10.14)% 19.51% Average Common Equity $5,077.9 $4,237.7 20% Return on Average Assets (0.70)% 1.35% Common Dividend Declared per Share $0.28 $0.25 12% Average Common Shares Outstanding (000s) Basic 221,899 219,915 Diluted** 221,899 224,186 Common Shares Outstanding (EOP) 223,034 219,942 (*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information. (**) Due to the net loss for the three months ended September 30, 2008, the diluted earnings per share calculation excludes all common stock equivalents as their inclusion would have been antidilutive. (N/M) Percentage change is either not meaningful or not applicable. Certain custody related deposit and overdraft amounts, previously included within other operating income, are now included within net interest income in order to better align the classifications of these income and expense amounts with the related balance sheet presentation. Prior period amounts have been reclassified to place them on a comparable basis. NORTHERN TRUST CORPORATION Page 2 (Supplemental Consolidated Financial Information) STATEMENT OF INCOME DATA ($ In Millions Except Per Share Data) NINE MONTHS 2008 2007 % Change (*) Noninterest Income Trust, Investment and Other Servicing Fees $1,646.8 $1,530.4 8% Foreign Exchange Trading Income 381.6 240.1 59 Treasury Management Fees 53.4 48.7 10 Security Commissions & Trading Income 57.4 47.2 21 Gain on Visa Share Redemption 167.9 - N/M Other Operating Income 102.8 70.5 46 Investment Security Gains (Losses), net (11.9) 6.4 N/M Total Noninterest Income 2,398.0 1,943.3 23 Interest Income (Taxable Equivalent) 1,944.5 2,098.1 (7) Interest Expense 1,163.9 1,442.7 (19) Net Interest Income (Taxable Equivalent) 780.6 655.4 19 Total Revenue (Taxable Equivalent) 3,178.6 2,598.7 22 Noninterest Expenses Compensation 822.5 755.6 9 Employee Benefits 172.4 172.4 - Outside Services 306.6 277.1 11 Equipment and Software Expense 171.8 160.1 7 Occupancy Expense 122.9 119.3 3 Visa Indemnification Charges (76.1) - N/M Other Operating Expenses 782.5 163.3 379 Total Noninterest Expenses 2,302.6 1,647.8 40 Provision for Credit Losses 55.0 10.0 450 Taxable Equivalent Adjustment 37.6 47.8 (21) Income before Income Taxes 783.4 893.1 (12) Provision for Income Taxes 312.0 291.2 7 NET INCOME $471.4 $601.9 (22)% Per Common Share Net Income Basic $2.13 $2.74 (22)% Diluted 2.09 2.69 (22) Return on Average Common Equity 12.96% 19.66% Average Common Equity $4,858.0 $4,094.5 19% Return on Average Assets 0.89% 1.36% Common Dividends Declared per Share $0.84 $0.75 12% Average Common Shares Outstanding (000s) Basic 220,945 219,453 Diluted 225,606 223,851 Common Shares Outstanding (EOP) 223,034 219,942 NORTHERN TRUST CORPORATION Page 3 (Supplemental Consolidated Financial Information) STATEMENT OF INCOME DATA THIRD SECOND ($ In Millions Except Per Share Data) QUARTER QUARTER 2008 2008 % Change Noninterest Income Trust, Investment and Other Servicing Fees $474.9 $645.1 (26)% Foreign Exchange Trading Income 141.8 126.6 12 Treasury Management Fees 17.6 18.4 (4) Security Commissions & Trading Income 19.2 20.4 (6) Other Operating Income 36.2 34.8 4 Investment Security Gains (Losses), net (16.9) - N/M Total Noninterest Income 672.8 845.3 (20) Interest Income (Taxable Equivalent) 653.2 601.6 9 Interest Expense 387.5 352.8 10 Net Interest Income (Taxable Equivalent) 265.7 248.8 7 Total Revenue (Taxable Equivalent) 938.5 1,094.1 (14) Noninterest Expenses Compensation 230.3 306.0 (25) Employee Benefits 52.4 62.7 (16) Outside Services 106.5 106.2 - Equipment and Software Expense 60.7 56.9 7 Occupancy Expense 41.8 39.7 5 Other Operating Expenses 632.3 71.8 781 Total Noninterest Expenses 1,124.0 643.3 75 Provision for Credit Losses 25.0 10.0 150 Taxable Equivalent Adjustment 12.3 12.7 (3) Income (Loss) before Income Taxes (222.8) 428.1 (152) Provision (Benefit) for Income Taxes (93.4) 212.5 (144) NET INCOME (LOSS) ($129.4) $215.6 (160)% Per Common Share Net Income (Loss) Basic ($0.58) $0.98 (159)% Diluted (0.58) 0.96 (160) Return on Average Common Equity (10.14)% 17.75% Average Common Equity $5,077.9 $4,886.9 4% Return on Average Assets (0.70)% 1.22% Common Dividend Declared per Share $0.28 $0.28 -% Average Common Shares Outstanding (000s) Basic 221,899 220,604 Diluted 221,899 225,281 Common Shares Outstanding (EOP) 223,034 221,047 NORTHERN TRUST CORPORATION Page 4 (Supplemental Consolidated Financial Information) BALANCE SHEET ($ IN MILLIONS) SEPTEMBER 30 % Change 2008 2007 (*) Assets Money Market Assets $26,079.0 $18,264.5 43% Securities U.S. Government 20.0 5.1 289 Government Sponsored Agency and Other 12,501.1 10,909.9 15 Municipal 829.3 884.2 (6) Trading Account 8.7 4.3 102 Total Securities 13,359.1 11,803.5 13 Loans and Leases 29,870.2 24,908.1 20 Total Earning Assets 69,308.3 54,976.1 26 Reserve for Credit Losses Assigned to Loans & Leases (194.7) (143.2) 36 Cash and Due from Banks 3,775.7 3,871.5 (2) Client Security Settlement Receivables 857.0 338.7 153 Buildings and Equipment, net 492.9 478.7 3 Other Nonearning Assets 5,004.8 3,577.1 40 Total Assets $79,244.0 $63,098.9 26% Liabilities and Stockholders' Equity Interest-Bearing Deposits Savings $10,282.1 $9,297.7 11% Other Time 639.6 539.4 19 Non-U.S. Offices - Interest- Bearing 41,060.4 28,657.1 43 Total Interest-Bearing Deposits 51,982.1 38,494.2 35 Short-Term Borrowings 2,784.0 4,448.5 (37) Senior Notes and Long-Term Debt 4,582.4 3,207.4 43 Total Interest-Related Funds 59,348.5 46,150.1 29 Demand & Other Noninterest-Bearing Deposits 10,457.0 9,174.6 14 Other Liabilities 4,583.6 3,414.8 34 Total Liabilities 74,389.1 58,739.5 27 Common Equity 4,854.9 4,359.4 11 Total Liabilities and Stockholders' Equity $79,244.0 $63,098.9 26% NORTHERN TRUST CORPORATION Page 5 (Supplemental Consolidated Financial Information) BALANCE SHEET ($ IN MILLIONS) SEPTEMBER 30 JUNE 30 2008 2008 % Change Assets Money Market Assets $26,079.0 $23,806.6 10 % Securities U.S. Government 20.0 20.2 (1) Government Sponsored Agency and Other 12,501.1 10,868.2 15 Municipal 829.3 836.6 (1) Trading Account 8.7 11.7 (26) Total Securities 13,359.1 11,736.7 14 Loans and Leases 29,870.2 28,677.9 4 Total Earning Assets 69,308.3 64,221.2 8 Reserve for Credit Losses Assigned to Loans & Leases (194.7) (172.5) 13 Cash and Due from Banks 3,775.7 5,651.6 (33) Client Security Settlement Receivables 857.0 935.4 (8) Buildings and Equipment, net 492.9 493.0 N/M Other Nonearning Assets 5,004.8 3,678.2 36 Total Assets $79,244.0 $74,806.9 6% Liabilities and Stockholders' Equity Interest-Bearing Deposits Savings $10,282.1 $9,833.2 5% Other Time 639.6 573.3 12 Non-U.S. Offices - Interest- Bearing 41,060.4 35,863.7 14 Total Interest-Bearing Deposits 51,982.1 46,270.2 12 Short-Term Borrowings 2,784.0 2,856.3 (3) Senior Notes and Long-Term Debt 4,582.4 3,718.7 23 Total Interest-Related Funds 59,348.5 52,845.2 12 Demand & Other Noninterest-Bearing Deposits 10,457.0 14,004.1 (25) Other Liabilities 4,583.6 2,993.5 53 Total Liabilities 74,389.1 69,842.8 7 Common Equity 4,854.9 4,964.1 (2) Total Liabilities and Stockholders' Equity $79,244.0 $74,806.9 6% NORTHERN TRUST CORPORATION Page 6 (Supplemental Consolidated Financial Information) AVERAGE BALANCE SHEET ($ IN MILLIONS) THIRD QUARTER 2008 2007 % Change (*) Assets Money Market Assets $24,812.0 $16,367.9 52% Securities U.S. Government 19.9 5.1 290 Government Sponsored Agency and Other 11,941.6 13,146.5 (9) Municipal 830.8 883.2 (6) Trading Account 10.7 5.8 83 Total Securities 12,803.0 14,040.6 (9) Loans and Leases 27,704.9 23,291.2 19 Total Earning Assets 65,319.9 53,699.7 22 Reserve for Credit Losses Assigned to Loans & Leases (173.9) (139.2) 25 Nonearning Assets 8,171.4 7,696.1 6 Total Assets $73,317.4 $61,256.6 20% Liabilities and Stockholders' Equity Interest-Bearing Deposits Savings $9,800.0 $9,177.4 7% Other Time 604.0 541.1 12 Non-U.S. Offices - Interest- Bearing 38,705.9 27,681.1 40 Total Interest-Bearing Deposits 49,109.9 37,399.6 31 Short-Term Borrowings 3,337.7 5,208.6 (36) Senior Notes and Long-Term Debt 4,417.8 3,186.2 39 Total Interest-Related Funds 56,865.4 45,794.4 24 Demand & Other Noninterest-Bearing Deposits 7,880.1 8,232.7 (4) Other Liabilities 3,494.0 2,991.8 17 Total Liabilities 68,239.5 57,018.9 20 Common Equity 5,077.9 4,237.7 20 Total Liabilities and Stockholders' Equity $73,317.4 $61,256.6 20% NORTHERN TRUST CORPORATION Page 7 (Supplemental Consolidated Financial Information) QUARTERLY TREND DATA ($ In Millions Except 2008 2007 Per Share Data) Quarters Quarters Third Second First Fourth Third Net Income Summary Trust, Investment and Other Servicing Fees $474.9 $645.1 $526.8 $547.2 $508.8 Other Noninterest Income 197.9 200.2 353.1 173.1 151.7 Net Interest Income (Taxable Equivalent) 265.7 248.8 266.1 252.5 232.0 Total Revenue (Taxable Equivalent) 938.5 1,094.1 1,146.0 972.8 892.5 Provision for Credit Losses 25.0 10.0 20.0 8.0 6.0 Noninterest Expenses 1,124.0 643.3 535.3 782.4 566.6 Pretax Income (Loss) (Taxable Equivalent) (210.5) 440.8 590.7 182.4 319.9 Taxable Equivalent Adjustment 12.3 12.7 12.6 14.7 18.8 Provision (Benefit) for Income Taxes (93.4) 212.5 192.9 42.7 92.8 Net Income (Loss) ($129.4) $215.6 $385.2 $125.0 $208.3 Per Common Share Net Income (Loss) - Basic ($0.58) $0.98 $1.75 $0.57 $0.95 - Diluted (0.58) 0.96 1.71 0.55 0.93 Dividend Declared 0.28 0.28 0.28 0.28 0.25 Book Value (EOP) 21.77 22.46 21.62 20.44 19.82 Market Value (EOP) 72.20 68.57 66.47 76.58 66.27 Ratios Return on Average Common Equity (10.14)% 17.75% 33.63% 11.34% 19.51% Return on Average Assets (0.70) 1.22 2.28 0.77 1.35 Net Interest Margin 1.62 1.59 1.79 1.79 1.71 Risk-based Capital Ratios Tier 1 9.2% 9.8% 9.6% 9.7% 9.8% Total (Tier 1 + Tier 2) 11.5 11.7 11.5 11.9 11.6 Leverage 6.6 6.9 6.9 6.8 7.0 Assets Under Custody ($ in Billions) - EOP Corporate 3,217.0 $3,635.7 $3,659.9 $3,802.9 $3,787.6 Personal 314.2 325.9 322.2 332.3 329.2 Total Assets Under Custody $3,531.2 $3,961.6 $3,982.1 $4,135.2 $4,116.8 Managed Assets $652.4 $751.4 $778.6 $757.2 $761.4 Asset Quality ($ in Millions) - EOP Nonperforming Loans $58.8 $30.1 $27.7 $23.2 $23.4 Other Real Estate Owned (OREO) 2.7 4.3 8.0 6.1 5.9 Total Nonperforming Assets $61.5 $34.4 $35.7 $29.3 $29.3 Nonperforming Assets / Loans & OREO 0.21% 0.12% 0.13% 0.12% 0.12% Gross Charge-offs $1.5 $4.9 $2.7 $2.4 $2.6 Less: Gross Recoveries & Foreign Translation 0.9 0.2 0.3 0.1 0.6 Net Charge-offs (Recoveries & Translation) $0.6 $4.7 $2.4 $2.3 $2.0 Net Charge-offs (Annualized) to Average Loans 0.01% 0.07% 0.04% 0.04% 0.03% Reserve for Credit Losses Assigned to Loans $194.7 $172.5 $165.4 $148.1 $143.2 Reserve to Nonaccrual Loans 331% 573% 597% 638% 612% Reserve for Other Credit-Related Exposures $12.8 $10.6 $12.4 $12.1 $11.3SOURCE Northern Trust Corporation