10-K – 2026-02-24 – ntrs-20251231.htm

• Northern Trust’s success in continuing to enhance its risk management practices and controls and managing risks inherent in its businesses, including credit risk, operational risk, market and liquidity risk, fiduciary risk, compliance risk and strategic risk;
• risks and uncertainties inherent in the litigation and regulatory process, including the possibility that losses may be in excess of Northern Trust’s recorded liability and estimated range of possible loss for litigation exposures;
• the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders;
• the downgrade of U.S. government-issued and other securities;
• changes in tax laws, accounting requirements or interpretations and other legislation in the U.S. or other countries that could affect Northern Trust or its clients;
• the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
• changes in the nature and activities of Northern Trust’s competition;
• Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;
• Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;
• Northern Trust’s ability to maintain a product mix that achieves acceptable margins;
• Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;
• uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
• risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary; and
• other factors identified elsewhere in this Annual Report on Form 10-K, including those factors described in Item 1A, “Risk Factors,” and other filings with the SEC, all of which are available on Northern Trust’s website.
Actual results may differ materially from those expressed or implied by forward-looking statements. The information contained herein is current only as of the date of that information. All forward-looking statements included in this document are based upon information presently available, and Northern Trust assumes no obligation to update its forward-looking statements.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 87

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SUPPLEMENTAL INFORMATION
Reconciliation to Fully Taxable Equivalent
The following table presents a reconciliation of Interest Income, Net Interest Income, Net Interest Margin, and Total Revenue prepared in accordance with GAAP to such measures on an FTE basis, which are non-GAAP financial measures. Net Interest Margin is calculated by dividing annualized Net Interest Income by average interest-earning assets. Management believes this presentation provides a clearer indication of these financial measures for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on Net Income.
TABLE 45: RECONCILIATION TO FULLY TAXABLE EQUIVALENT

FOR THE YEAR ENDED DECEMBER 31,
($ In Millions) 2025 2024 2023
Net Interest Income
Interest Income - GAAP $ 8,624.6   $ 9,762.3  $ 7,325.0 
Add: FTE Adjustment 28.5   31.8  57.5 
Interest Income (FTE) - Non-GAAP $ 8,653.1   $ 9,794.1  $ 7,382.5 

Net Interest Income - GAAP $ 2,411.0   $ 2,177.1  $ 1,982.0 
Add: FTE Adjustment 28.5   31.8  57.5 
Net Interest Income (FTE) - Non-GAAP $ 2,439.5   $ 2,208.9  $ 2,039.5 

Net Interest Margin - GAAP 1.70   % 1.62  % 1.52  %
Net Interest Margin (FTE) - Non-GAAP 1.72   % 1.64  % 1.56  %

Total Revenue
Total Revenue - GAAP $ 8,086.4   $ 8,290.4  $ 6,773.5 
Add: FTE Adjustment 28.5   31.8  57.5 
Total Revenue (FTE) - Non-GAAP $ 8,114.9   $ 8,322.2  $ 6,831.0 

ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information called for by this item is incorporated herein by reference to the “Risk Management” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this Annual Report on Form 10-K.

88 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Northern Trust Corporation:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Northern Trust Corporation and subsidiaries (the Corporation) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Corporation’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 24, 2026 expressed an unqualified opinion on the effectiveness of the Corporation’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 89

Assessment of the allowance for credit losses for commercial loans evaluated on a collective basis
As discussed in Notes 1 and 6 to the consolidated financial statements, the Corporation’s allowance for credit losses for commercial loans evaluated on a collective basis (the collective ACL) was $ 126.6 million of a total allowance for credit losses assigned to loans of $164.3 million as of December 31, 2025. Expected credit losses are measured on a collective basis as long as the financial assets included in the respective pool share similar risk characteristics. The allowance estimation methodology for the collective assessment is based on data representative of the Corporation’s financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan portfolio into classes based on loan and obligor specific factors, including loan type, borrower type, collateral type, loan size, and borrower credit quality. The estimation methodology applies probability of default and loss given default assumptions to the projected exposure at default on a pool basis. For each class, the probability of default (PD) and loss given default (LGD) are derived for each quarter of the remaining life of each instrument. For the first two years (the reasonable and supportable period), these factors are derived by applying quarterly macroeconomic projections using models developed from historical data on macroeconomic factors and loans with similar factors, including the borrower rating assigned to individual obligors, as applicable. For periods beyond the reasonable and supportable period, the Corporation reverts to its own long-run historical loss experience on a straight-line basis over four quarters. The projected exposure at default for every quarter is based on contractual balance projections as of each quarter-end. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. The Corporation employs multiple scenarios over a reasonable and supportable period to project future conditions. The Corporation determines the probability weights assigned to each scenario at each quarter-end. The quantitative allowance is then reviewed within the qualitative adjustment framework, through which the Corporation applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and other factors that are not fully contemplated in the forecast to compute adjustments to the quantitative allowance that may impact individual or multiple classes of the loan portfolio.
We identified the assessment of the quantitative component of the collective ACL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the quantitative component of the collective ACL due to significant measurement uncertainty. Specifically, the assessment encompassed the evaluation of the quantitative component of the collective ACL methodology, including the methods and models used to estimate the PD and LGD and their significant assumptions, the multiple economic forecast scenarios and macroeconomic factors and their respective weightings, and borrower ratings for certain commercial loans. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and operating effectiveness of certain internal controls related to the critical audit matter. This included controls related to the Corporation’s measurement of the quantitative component of the collective ACL estimate, including controls over:
• development of the quantitative component of the collective ACL methodology
• development, calibration and/or performance monitoring of certain PD and LGD models
• development and approval of the multiple economic forecast scenarios, macroeconomic factors and their respective weightings
• identification and determination of the significant assumptions used in certain PD and LGD models
• analysis of the allowance for credit losses for loans results.
We evaluated the Corporation’s process to develop the quantitative component of the collective ACL estimate by testing certain sources of data, factors, and assumptions that the Corporation used, and considered the relevance and reliability of such data, factors and assumptions. In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:
• evaluating the quantitative component of the Corporation’s collective ACL methodology for compliance with U.S. generally accepted accounting principles
• evaluating judgments made by the Corporation relative to the development, calibration and/or performance monitoring of certain PD and LGD models
• assessing the conceptual soundness and performance testing of certain PD and LGD models by inspecting model documentation to determine whether the models were suitable for their intended use

90 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

• assessing the economic forecast scenarios, the economic input variables and their respective weightings through comparison to publicly available forecasts and the Corporation’s business environment
• testing individual borrower ratings for a selection of commercial loan relationships by evaluating the financial performance of the borrower, sources of repayment, and any relevant guarantees or underlying collateral.
We also assessed the sufficiency of the audit evidence obtained related to the quantitative component of the collective ACL by evaluating the:
• cumulative results of the procedures
• qualitative aspects of the Corporation’s accounting practices
• potential bias in the accounting estimate

We have served as the Corporation’s auditor since 2002.

Chicago, Illinois
February 24, 2026

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 91

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

DECEMBER 31,
(In Millions Except Share Information) 2025 2024
ASSETS
Cash and Due from Banks $ 5,873.1   $ 4,677.2  
Federal Reserve and Other Central Bank Deposits 53,524.9   38,775.4  
Interest-Bearing Deposits with Banks 1,729.4   1,944.7  

Federal Funds Sold and Securities Purchased under Agreements to Resell 2,654.1   451.0  
Debt Securities
Available for Sale (Amortized cost of $ 34,102.4 and $ 29,229.1 )
34,036.5   29,001.5  
Held to Maturity (Fair value of $ 22,381.2 and $ 20,654.5 )
23,429.6   22,296.7  

Total Debt Securities 57,466.1   51,298.2  
Loans
Commercial 20,431.0   20,278.8  
Personal 21,517.3   23,111.8  
Total Loans (Net of unearned income of $ 5.3 and $ 6.3 )
41,948.3   43,390.6  
Allowance for Credit Losses ( 175.0 ) ( 175.5 )
Buildings and Equipment 464.6   490.3  
Goodwill 712.9   694.9  
Other Assets 12,934.3   13,961.6  
Total Assets $ 177,132.7   $ 155,508.4  
LIABILITIES
Deposits
Demand and Other Noninterest-Bearing $ 14,810.7   $ 14,325.6  
Savings, Money Market and Other Interest-Bearing 28,984.1   26,122.6  
Savings Certificates and Other Time 6,418.9   5,731.7  
Non U.S. Offices — Noninterest-Bearing 12,537.9   10,027.9  
                              — Interest-Bearing
80,046.1   66,274.9  
Total Deposits 142,797.7   122,482.7  
Federal Funds Purchased 2,141.1   2,159.5  
Securities Sold Under Agreements to Repurchase 292.2   462.0  
Other Borrowings 7,158.3   6,521.0  
Senior Notes 3,351.5   2,769.7  
Long-Term Debt 3,484.4   4,081.3  

Other Liabilities 4,949.6   4,243.8  
Total Liabilities 164,174.8   142,720.0  
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; Authorized 10,000,000 shares:

Series D, authorized and outstanding shares of 5,000
493.5   493.5  
Series E, authorized and outstanding shares of 16,000
391.4   391.4  
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares; Outstanding shares of 186,337,588 and 195,969,746
408.6   408.6  
Additional Paid-In Capital 1,039.0   1,025.3  
Retained Earnings 16,709.3   15,614.7  
Accumulated Other Comprehensive Loss ( 590.5 ) ( 814.0 )
Treasury Stock ( 58,833,936 and 49,201,778 shares, at cost)
( 5,493.4 ) ( 4,331.1 )
Total Stockholders’ Equity 12,957.9   12,788.4  
Total Liabilities and Stockholders’ Equity $ 177,132.7   $ 155,508.4  

See accompanying notes to consolidated financial statements on pages 96 - 164 .

92 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEAR ENDED DECEMBER 31,
(In Millions Except Share Information) 2025 2024 2023
Noninterest Income
       Trust, Investment and Other Servicing Fees $ 5,017.8   $ 4,727.8   $ 4,361.8  
       Foreign Exchange Trading Income 240.8   231.2   203.9  
       Treasury Management Fees 38.7   35.7   31.6  
       Security Commissions and Trading Income 170.4   150.5   135.0  
       Other Operating Income 207.7   1,157.4   228.7  
       Investment Security Gains (Losses), net —   ( 189.3 ) ( 169.5 )
Total Noninterest Income 5,675.4   6,113.3   4,791.5  
Net Interest Income
       Interest Income 8,624.6   9,762.3   7,325.0  
       Interest Expense 6,213.6   7,585.2   5,343.0  
Net Interest Income 2,411.0   2,177.1   1,982.0  
Provision for Credit Losses ( 7.5 ) ( 3.0 ) 24.5  
Net Interest Income after Provision for Credit Losses 2,418.5   2,180.1   1,957.5  
Noninterest Expense
      Compensation 2,571.3   2,471.1   2,321.8  
      Employee Benefits 462.1   417.8   405.2  
      Outside Services 988.5   998.0   906.5  
      Equipment and Software 1,169.9   1,075.0   945.5  
      Occupancy 217.3   216.8   232.3  
      Other Operating Expense 345.3   455.2   472.9  
Total Noninterest Expense 5,754.4   5,633.9   5,284.2  
Income before Income Taxes 2,339.5   2,659.5   1,464.8  
Provision for Income Taxes 602.6   628.4   357.5  
NET INCOME $ 1,736.9   $ 2,031.1   $ 1,107.3  
Preferred Stock Dividends 41.8   41.8   41.8  
Net Income Applicable to Common Stock $ 1,695.1   $ 1,989.3   $ 1,065.5  
PER COMMON SHARE
Net Income – Basic $ 8.78   $ 9.80   $ 5.09  
Net Income – Diluted
8.74   9.77   5.08  
Average Number of Common Shares Outstanding – Basic 191,358,026   201,263,646   207,248,094  
Average Number of Common Shares Outstanding – Diluted
192,246,525   201,870,105   207,563,746  

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024 2023
Net Income $ 1,736.9   $ 2,031.1   $ 1,107.3  
Other Comprehensive Income (Net of Tax and Reclassifications)
Net Unrealized Gains on Available for Sale Debt Securities 196.8   325.8   443.7  
Net Unrealized Gains (Losses) on Cash Flow Hedges 0.3   ( 0.2 ) ( 0.4 )
Net Foreign Currency Adjustments 15.8   29.5   39.0  
Net Pension and Other Postretirement Benefit Adjustments 10.6   ( 31.2 ) ( 51.0 )
Other Comprehensive Income 223.5   323.9   431.3  
Comprehensive Income $ 1,960.4   $ 2,355.0   $ 1,538.6  

See accompanying notes to consolidated financial statements on pages 96 - 164 .

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 93

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In Millions Except Per Share Information) PREFERRED STOCK COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) TREASURY STOCK TOTAL
Balance at January 1, 2023 $ 884.9   $ 408.6   $ 983.5   $ 13,798.5   $ ( 1,569.2 ) $ ( 3,246.8 ) $ 11,259.5  
Net Income —  —  —  1,107.3   —  —  1,107.3  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) —  —  —  —  431.3   —  431.3  
Dividends Declared:
Common Stock, $ 3.00 per share
—  —  —  ( 630.2 ) —  —  ( 630.2 )
Preferred Stock —  —  —  ( 41.8 ) —  —  ( 41.8 )
Stock Awards and Options Exercised —  —  26.1   —  —  95.7   121.8  
Stock Purchased —  —  —  —  —  ( 347.5 ) ( 347.5 )
Excise Tax on Share Repurchases —  —  —  —  —  ( 2.5 ) ( 2.5 )
Balance at December 31, 2023 $ 884.9   $ 408.6   $ 1,009.6   $ 14,233.8   $ ( 1,137.9 ) $ ( 3,501.1 ) $ 11,897.9  
Net Income —  —  —  2,031.1   —  —  2,031.1  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) —  —  —  —  323.9   —  323.9  
Dividends Declared:
Common Stock, $ 3.00 per share
—  —  —  ( 608.4 ) —  —  ( 608.4 )
Preferred Stock —  —  —  ( 41.8 ) —  —  ( 41.8 )
Stock Awards and Options Exercised —  —  15.7   —  —  116.2   131.9  
Stock Purchased —  —  —  —  —  ( 937.8 ) ( 937.8 )
Excise Tax on Share Repurchases —  —  —  —  —  ( 8.4 ) ( 8.4 )
Balance at December 31, 2024 $ 884.9   $ 408.6   $ 1,025.3   $ 15,614.7   $ ( 814.0 ) $ ( 4,331.1 ) $ 12,788.4  
Net Income —  —  —  1,736.9   —  —  1,736.9  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) —  —  —  —  223.5   —  223.5  
Dividends Declared:
Common Stock, $ 3.10 per share
—  —  —  ( 600.5 ) —  —  ( 600.5 )
Preferred Stock —  —  —  ( 41.8 ) —  —  ( 41.8 )
Stock Awards and Options Exercised —  —  13.7   —  —  122.1   135.8  
Stock Purchased —  —  —  —  —  ( 1,273.5 ) ( 1,273.5 )
Excise Tax on Share Repurchases —  —  —  —  —  ( 10.9 ) ( 10.9 )
Balance at December 31, 2025 $ 884.9   $ 408.6   $ 1,039.0   $ 16,709.3   $ ( 590.5 ) $ ( 5,493.4 ) $ 12,957.9  

See accompanying notes to consolidated financial statements on pages 96 - 164 .

94 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,736.9   $ 2,031.1   $ 1,107.3  
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
Investment Security Losses, net —   189.3   169.5  
Amortization and Accretion of Securities and Unearned Income, net ( 67.8 ) ( 35.1 ) 3.0  
Provision for Credit Losses ( 7.5 ) ( 3.0 ) 24.5  
Depreciation and Amortization 779.1   716.8   634.6  
Change in Accrued Income Taxes ( 104.4 ) 183.5   ( 44.4 )
Pension Plan Contributions ( 142.1 ) ( 212.0 ) ( 20.4 )
Deferred Income Tax Provision 194.5   20.7   ( 48.2 )
Change in Receivables ( 42.6 ) ( 6.1 ) 12.0  
Change in Interest Payable ( 24.8 ) ( 41.9 ) 85.8  
Change in Collateral With Derivative Counterparties, net 2,885.7   ( 3,287.7 ) ( 72.6 )
Other Operating Activities, net 326.5   ( 41.6 ) 774.5  
Net Cash Provided by (Used in) Operating Activities 5,533.5   ( 486.0 ) 2,625.6  
CASH FLOWS FROM INVESTING ACTIVITIES
Change in Federal Funds Sold and Securities Purchased under Agreements to Resell ( 2,175.6 ) 276.6   317.4  
Change in Interest-Bearing Deposits with Banks 277.2   ( 121.0 ) 28.5  
Net Change in Federal Reserve and Other Central Bank Deposits ( 13,263.6 ) ( 5,255.3 ) 6,205.9  
Purchases of Held to Maturity Debt Securities ( 33,137.2 ) ( 26,524.6 ) ( 32,773.9 )
Proceeds from the Maturity and Redemption of Held to Maturity Debt Securities 32,803.6   30,073.9   32,123.0  
Purchases of Available for Sale Debt Securities ( 9,428.8 ) ( 13,010.0 ) ( 7,320.2 )
Proceeds from the Maturity and Sales of Available for Sale Debt Securities 4,982.1   6,983.0   11,614.8  
Change in Loans 1,520.8   4,165.7   ( 4,702.1 )
Purchases of Buildings and Equipment ( 74.0 ) ( 101.5 ) ( 116.5 )
Purchases and Development of Computer Software ( 700.2 ) ( 644.0 ) ( 559.3 )
Proceeds from the sale of Visa Shares 12.1   800.6   —  
Other Investing Activities, net ( 986.3 ) 793.1   ( 33.5 )
Net Cash (Used in) Provided by Investing Activities ( 20,169.9 ) ( 2,563.5 ) 4,784.1  
CASH FLOWS FROM FINANCING ACTIVITIES
Change in Deposits 16,809.1   6,330.8   ( 8,478.4 )
Change in Federal Funds Purchased ( 18.4 ) ( 885.9 ) 1,148.6  
Change in Securities Sold under Agreements to Repurchase ( 169.8 ) ( 322.7 ) 217.5  
Change in Short-Term Other Borrowings 566.8   ( 103.8 ) ( 1,059.1 )
Proceeds from Long-Term Debt 750.0   —   2,000.0  
Repayments of Long-Term Debt ( 1,350.0 ) —   —  
Proceeds from Senior Notes 499.8   —   —  

Treasury Stock Purchased ( 1,273.5 ) ( 937.8 ) ( 347.5 )
Net Proceeds from Stock Options 6.4   9.4   2.3  
Cash Dividends Paid on Common Stock ( 591.6 ) ( 602.3 ) ( 621.5 )
Cash Dividends Paid on Preferred Stock ( 41.8 ) ( 41.8 ) ( 41.8 )
Other Financing Activities, net ( 11.1 ) ( 6.4 ) ( 2.7 )
Net Cash Provided by (Used in) Financing Activities 15,175.9   3,439.5   ( 7,182.6 )
Effect of Foreign Currency Exchange Rates on Cash 656.4   ( 504.3 ) ( 89.8 )
Change in Cash and Due from Banks 1,195.9   ( 114.3 ) 137.3  
Cash and Due from Banks at Beginning of Period 4,677.2   4,791.5   4,654.2  
Cash and Due from Banks at End of Period $ 5,873.1   $ 4,677.2   $ 4,791.5  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest Paid $ 6,223.7   $ 7,610.3   $ 5,285.5  
Income Taxes Paid (2)
426.8   268.6   362.5  
Transfers from Loans to OREO —   —   0.2  

Reclassification of certain cash collateral received from Other Operating Activities to Deposits (1)
—   1,157.2   —  

(1) Beginning January 1, 2024, Northern Trust reclassified certain cash collateral received from Other Liabilities to Deposits on the consolidated statement of financial condition. Prior periods have not been restated.
(2) See Note 20, “Income Taxes” for additional information.
See accompanying notes to consolidated financial statements on pages 96 - 164 .

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 95

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 –  Summary of Significant Accounting Policies
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. A description of the more significant accounting policies follows.
A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation.
B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank.
Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing and Wealth Management clients primarily by the Asset Management business.
Asset Servicing is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking; and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region.
Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management also includes Global Family Office, which provides customized services, including but not limited to: investment management; global custody; fiduciary; and private banking; family office consulting, and technology solutions, to meet the complex financial and reporting needs of ultra-high-net-worth individuals and family offices across the globe. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, Singapore, and Abu Dhabi.
C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.
D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange.
Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity.

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E. Securities. Available for Sale (AFS) Securities are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on AFS securities are determined on a specific identification basis and are reported within Investment Security Gains (Losses), net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount.
Held to Maturity (HTM) Securities consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount.
Trading Account Securities are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income.
Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 28, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits.
F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are either directly held by, or pledged to the counterparty until the repurchase. Northern Trust nets securities sold under agreements to repurchase against those purchased under agreements to resell when the requirements to net are met.
G. Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net.
Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges.
Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter.

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Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain AFS debt securities. For cash flow hedges of certain other AFS debt securities, foreign currency denominated securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of AFS debt securities, to the extent all terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method.
Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary.
Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item.
H. Loans. Loans are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, non-U.S. and other. The classes within the personal segment have been defined as private client, residential real estate, non-U.S. and other.
Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value.

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Nonaccrual Loans and Recognition of Income. Interest income on loans is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is 90 days or more contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual, and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between the different loan classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms.
Loan Modifications to Borrowers Experiencing Financial Difficulty. For borrowers experiencing financial difficulties, Northern Trust may provide payment relief by modifying the terms of the original loan. Loan modifications to borrowers experiencing financial difficulty involve primarily the extensions of term, deferrals of principal and interest payments, interest rate concessions, and other modifications or a combination thereof. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms.
Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral.
Premiums, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield.
I. Allowance for Credit Losses. The allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various financial assets subject to credit risk and off-balance sheet credit exposure.
Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.
Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables and takes into consideration past events, current conditions, and reasonable and supportable forecasts.
Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period (currently two years) to project future conditions. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as GDP growth, unemployment, non-farm employment, corporate profits, consumer spending, personal income, commercial real estate prices, housing price index, credit spreads, and market volatility. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters.
Allowance for Loans. The allowance estimation methodology for the collective assessment is based on data representative of the Corporation’s financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan portfolio into segments and classes based on similar risk characteristics or risk monitoring methods.

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Northern Trust utilizes a quantitative PD/LGD approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models or qualitative estimation methodologies for the individual loan classes were developed. For each class, PD and LGD are applied to the exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a comprehensive qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and other factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment and class of the loan portfolio.
Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative as well as the qualitative framework. For purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes estimated draw downs of the undrawn commitments based on credit utilization factors, resulting in a proportionate amount of expected credit losses.
The allowance related to credit exposures evaluated on an individual basis is determined through individual evaluations of loans and lending-related commitments that have defaulted, generally those with Borrower Ratings of 8 and 9. These evaluations are based on expected future cash flows, the value of collateral, and other factors that may impact the borrowers’ ability to pay. If the loan valuation is less than the recorded value of the loan, either an allowance is established or a charge-off is recorded for the difference.
When the discounted cash flow method is applied, the expected credit loss reflects the difference between the amortized cost basis and the present value of the expected cash flows. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is determined using the current contractual factor as it changes over the life of the loan and does not incorporate projections of future changes in that factor. For loan modifications to borrowers experiencing financial difficulty the expected cash-flows are measured utilizing the post-m odification effective interest rate and contractual terms.
For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral.
Allowance for HTM Securities. HTM debt securities classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government, and, therefore, an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero.
HTM debt securities classified as “other asset-backed” and “commercial mortgage-backed” securities represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support.
HTM debt securities classified as “other” relate to investments purchased by Northern Trust to fulfill its obligations under the CRA. Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on historical performance experience and default history of the underlying CRA loans to determine the quantitative allowance.
The allowance estimation methodology for all other HTM debt securities is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which PD and LGD are applied to the total exposure at default to determine a quantitative component of the allowance.
Allowance for AFS Securities. AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. The determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment; the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security.

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If management intends to sell, or will more likely than not be required to sell, an AFS debt security prior to recovery of its amortized cost basis, the security is written down to fair value with unrealized losses recognized in Investment Security Gains (Losses), net on the consolidated statements of income.
Allowance for Other Financial Assets. The allowance for Other Financial Assets consists of the allowance for Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for Other Financial Assets primarily utilizes a similar approach as the one used for the HTM debt securities portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio of Other Financial Assets is composed mostly of institutions within the “1 to 3” internal borrower rating category and is expected to exhibit minimal to modest likelihood of loss.
The portion of the allowance assigned to loans, HTM debt securities, and Other Financial Assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS debt securities on the consolidated balance sheets.
Provision for Credit Losses. Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses, after consideration of charge-offs and recoveries, on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates.
Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are typically not considered since it is not Northern Trust’s practice to enter into arrangements where the borrower has the unconditional option to renew, or a conditional extension option whereby the conditions are beyond Northern Trust’s control.
Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the period the financial asset is moved from an accrual to a nonaccrual status.
J. Standby Letters of Credit. Fees on standby letters of credit are recognized in Other Operating Income on the consolidated statements of income using the straight-line method over the lives of the underlying agreements.
K. Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to  30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years.
L. Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in Other Assets on the consolidated balance sheets. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the Allowance for Credit Losses assigned to Loans. Subsequent write-downs to the carrying value of these assets that may be required and gains or losses realized from asset sales are recorded within Other Operating Expense on the consolidated statements of income.
M. Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Costs related to purchased software and internal-use software development projects that result in new or enhanced functionality, including compensation and other allowable internal costs, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. Fees paid for the use of software services that do not convey a software license are expensed as incurred.
Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable.
N. Trust, Investment and Other Servicing Fees. Trust, Investment and Other Servicing Fees are recorded on an accrual basis, over the period in which the service is provided. Fees are primarily a function of the market value of assets custodied, managed and serviced, transaction volumes, number of accounts, and securities lending volume and spreads, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes.

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O. Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. It is Northern Trust’s policy to release income tax effects from accumulated other comprehensive income on an aggregate portfolio basis.
Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded on the consolidated financial statements. A valuation allowance is established for deferred tax assets if it is more-likely-than-not that all or a portion will not be realized. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes on the consolidated statements of income.
P. Cash Flow Statements. Cash and cash equivalents in the cash flow statements have been defined as “Cash and Due from Banks” on the consolidated balance sheets.
Q. Pensions. Northern Trust records the funded status of its defined benefit pension plans on the consolidated balance sheets. Overfunded pension benefits are reported in Other Assets and underfunded pension benefits are reported in Other Liabilities on the consolidated balance sheets. Plan assets and benefit obligations are measured annually at December 31, unless specific circumstances require an interim remeasurement. Plan assets are determined based on fair value generally representing observable market prices. The projected benefit obligations are determined based on the present value of projected benefit distributions at an assumed discount rate. Actuarial gains and losses accumulated in AOCI are amortized as a component of net periodic pension cost if they exceed 10% of the greater of the projected benefit obligation or the market-related value of plan assets as of the beginning of the year. Amortization is recognized on a straight-line basis over the expected average remaining service period of the active employees or over the expected remaining lifetime of plan participants for plans that have been previously frozen.
R. Share-Based Compensation Plans. Northern Trust recognizes expense for share-based compensation on a straight-line basis based on the grant date fair value over the requisite service period. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the closing price of the Corporation’s stock on the date of grant adjusted for certain awards that do not accrue dividends while vesting. The expense for share-based compensation is included in Compensation on the consolidated statements of income.
Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for performance stock unit awards are recognized on a straight-line basis over the requisite service period of the award based on expected achievement of the performance condition. Adjustments are made for employees that meet certain retirement eligibility criteria at the grant date or during the requisite service period.
Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are accrued for performance stock unit awards, most restricted stock unit awards, and director awards not yet vested, and are paid upon vesting. Certain restricted stock units are not entitled to dividend equivalents during the vesting period. Cash flows resulting from the realization of excess tax benefits are classified as operating cash flows on the consolidated statements of cash flows.
S. Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share.
Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities.

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Note 2 –  Recent Accounting Pronouncements
On January 1, 2025, Northern Trust adopted ASU No. 2023-08, “Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets” (ASU 2023-08). ASU 2023-08 requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in each reporting period, and present crypto assets separately from other intangible assets on the face of the balance sheet and changes in fair value of crypto assets separately from changes in the carrying amount of other intangible assets on the statement of income. ASU 2023-08 also requires enhanced disclosures about in-scope crypto assets and respective activities. As Northern Trust does not hold crypto assets, upon adoption of ASU 2023-08, there was no impact on the consolidated balance sheets or consolidated statements of income.
On December 31, 2025, Northern Trust adopted ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09). ASU 2023-09 enhances disclosures by further disaggregating existing annual income tax disclosures related to the effective tax rate reconciliation and income taxes paid. Upon adoption of ASU 2023-09, the impact was limited to certain enhancements within the notes to the consolidated financial statements and did not impact Northern Trust’s consolidated balance sheets or consolidated statements of income. Please refer to Note 20 – Income Taxes for further information.

Note 3 –  Fair Value Measurements
Fair value under GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date.
Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers into or out of Level 3 occurred during the years ended December 31, 2025, or 2024.
Level 1 – Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised primarily of AFS investments in U.S. Treasury securities.
Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include AFS debt securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of December 31, 2025, Northern Trust’s AFS debt securities portfolio included 1,003 Level 2 securities with an aggregate market value of $ 25.9 billion. Substantially all debt securities were valued by external pricing vendors. As of December 31, 2024, Northern Trust’s AFS debt securities portfolio included 940 Level 2 debt securities with an aggregate market value of $ 21.6 billion. All 940 debt securities were valued by external pricing vendors.
Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews methodology documentation from third-party pricing vendors regarding the inputs used in the valuation processes and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, third-party pricing vendor valuations are reviewed on a sample basis. The specific inputs and assumptions used by third-party pricing vendors for each sample are assessed to verify appropriate classification within the fair value level hierarchy.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 103

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material.
Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. Northern Trust’s Level 3 liabilities consist of swaps that Northern Trust entered into with the purchaser of  1.1 million and 1.0 million shares of Visa Class B common shares previously held by Northern Trust and sold in June 2016 and 2015, respectively. Pursuant to the swaps, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Class A common shares, such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swaps also require periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swaps is determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated appreciation of the Visa Class A common share price. See “Visa Class B Common Shares and Makewhole Agreement” under Note 24, “Commitments and Contingent Liabilities,” for further information.
Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values.
Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Finance, Asset Servicing and Wealth Management) reviews valuation methods and models for Level 3 assets and liabilities. Fair value measurements are performed upon acquisitions of an asset or liability. Management of the appropriate business or department reviews assumed inputs, especially when unobservable in the marketplace, in order to substantiate their use in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process considering other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third-party information is used to support the fair value measurements. If certain third-party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to determine the appropriate fair value of the asset or liability.
The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2025 and 2024, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates.
TABLE 46: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS

DECEMBER 31, 2025
FINANCIAL INSTRUMENT FAIR VALUE VALUATION TECHNIQUE UNOBSERVABLE INPUTS INPUT VALUES WEIGHTED-AVERAGE INPUT VALUES (1)

Swaps Related to Sale of Certain Visa Class B Common Shares $ 29.7 million Discounted Cash Flow Conversion Rate 1.51 x 1.51 x
Visa Class A Appreciation 9.69 % 9.69 %
Expected Duration 14 - 26 months 23

(1) Weighted average of expected duration based on scenario probability.

DECEMBER 31, 2024
FINANCIAL INSTRUMENT FAIR VALUE VALUATION TECHNIQUE UNOBSERVABLE INPUTS INPUT VALUES WEIGHTED-AVERAGE INPUT VALUES (1)

Swaps Related to Sale of Certain Visa Class B Common Shares $ 27.2 million Discounted Cash Flow Conversion Rate 1.54 x 1.54 x
Visa Class A Appreciation 8.66 % 8.66 %
Expected Duration 10 - 32.5 months 23.5 months

(1) Weighted average of expected duration based on scenario probability.

104 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024, segregated by fair value hierarchy level.
TABLE 47: RECURRING BASIS HIERARCHY LEVELING

DECEMBER 31, 2025
(In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/
LIABILITIES
AT FAIR
VALUE
Debt Securities
Available for Sale
U.S. Government $ 8,172.4   $ —   $ —   $ —   $ 8,172.4  
Obligations of States and Political Subdivisions —   313.1   —   —   313.1  
Government Sponsored Agency —   16,567.5   —   —   16,567.5  
Non-U.S. Government —   527.2   —   —   527.2  
Corporate Debt —   64.4   —   —   64.4  
Covered Bonds —   273.5   —   —   273.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds —   4,984.3   —   —   4,984.3  
Other Asset-Backed —   2,725.1   —   —   2,725.1  
Commercial Mortgage-Backed —   409.0   —   —   409.0  
Total Available for Sale $ 8,172.4   $ 25,864.1   $ —   $ —   $ 34,036.5  

Other Assets
Equity Securities (1)
85.0   127.4   —   —   212.4  
Derivative Assets
Foreign Exchange Contracts —   1,988.8   —   ( 1,696.1 ) 292.7  
Interest Rate Contracts —   104.8   —   ( 82.4 ) 22.4  
Other Financial Derivatives (2)
—   0.7   —   ( 0.7 ) —  
Total Derivative Assets $ —   $ 2,094.3   $ —   $ ( 1,779.2 ) $ 315.1  
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts —   2,247.9   —   ( 1,139.4 ) 1,108.5  
Interest Rate Contracts —   130.4   —   ( 5.0 ) 125.4  
Other Financial Derivatives (3)
—   1.6   29.7   ( 31.3 ) —  
Total Derivative Liabilities $ —   $ 2,379.9   $ 29.7   $ ( 1,175.7 ) $ 1,233.9  

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2025, derivative assets and liabilities shown above also include reductions of $ 1.2 billion and $ 550.6 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment, seed capital investments to certain funds managed by Northern Trust, and Visa Class C common shares with a fair value of $ 85.0 million, $ 112.5 million, and $ 14.9 million, respectively, respectively, as of December 31, 2025.
(2) Other Financial Derivatives assets consists of total return swap contracts.
(3) Other Financial Derivatives liabilities consists of swaps related to the sale of certain Visa Class B common shares and total return swap contracts.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 105

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024
(In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/
LIABILITIES
AT FAIR
VALUE
Debt Securities
Available for Sale
U.S. Government $ 7,367.5   $ —   $ —   $ —  $ 7,367.5  
Obligations of States and Political Subdivisions —   297.6   —   —  297.6  
Government Sponsored Agency —   13,288.9   —   —  13,288.9  
Non-U.S. Government —   296.8   —   —  296.8  
Corporate Debt —   163.8   —   —  163.8  
Covered Bonds —   230.9   —   —  230.9  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds —   4,583.1   —   —  4,583.1  
Other Asset-Backed —   2,182.7   —   —  2,182.7  
Commercial Mortgage Backed —   590.2   —   —  590.2  
Total Available for Sale $ 7,367.5   $ 21,634.0   $ —   $ —  $ 29,001.5  

Other Assets
Equity Securities (1)
85.0 26.3 — — 111.3
Derivative Assets
Foreign Exchange Contracts —   4,997.3   —   ( 1,745.2 ) 3,252.1  
Interest Rate Contracts —   361.2   —   ( 165.2 ) 196.0  
Total Derivative Assets $ —   $ 5,358.5   $ —   $ ( 1,910.4 ) $ 3,448.1  
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts —   4,709.8   —   ( 4,197.3 ) 512.5  
Interest Rate Contracts —   421.4   —   ( 2.3 ) 419.1  
Other Financial Derivatives (2)
—   —   27.2   —   27.2  
Total Derivative Liabilities $ —   $ 5,131.2   $ 27.2   $ ( 4,199.6 ) $ 958.8  

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2024, derivative assets and liabilities shown above also include reductions of $ 368.2 million and $ 2.7 billion, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment and Visa Class C common shares with a fair value of $ 85.0 million and $ 26.3 million, respectively, as of December 31, 2024.
(2) This line consists of swaps related to the sale of certain Visa Class B common shares.
The following table presents the changes in Level 3 liabilities for the years ended December 31, 2025 and 2024.
TABLE 48: CHANGES IN LEVEL 3 LIABILITIES

LEVEL 3 LIABILITIES SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B
COMMON SHARES
(In Millions) 2025 2024
Fair Value at January 1 $ 27.2   $ 25.4  
Total (Gains) Losses:
Included in Earnings (1)
28.1   33.5  
Purchases, Issues, Sales, and Settlements
Settlements ( 25.6 ) ( 31.7 )
Fair Value at December 31 $ 29.7   $ 27.2  
Unrealized Losses Included in Earnings Related to Financial Instruments Held at December 31 (1)
$ 17.6   $ 18.8  

(1) (Gains) losses are recorded in Other Operating Income on the consolidated statements of income.
Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy.
Assets measured at fair value on a nonrecurring basis at December 31, 2025 and 2024, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of nonaccrual loans whose values were based on real estate and other available collateral.

106 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair values of real estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes. As of December 31, 2025, the fair values of real estate loan collateral were subject to adjustments to reflect management’s judgment as to realizable value and consisted of a discount factor of 40.0 % with a weighted average based on fair values of 40.0 %. As of December 31, 2024, the fair value of real estate loan collateral consisted of discount factor of 20.0 % with a weighted average based on fair values of 20.0 %. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset-specific characteristics and in limited instances third-party valuations are used. OREO assets are carried at the lower of cost or fair value less estimated costs to sell, with fair value typically based on third-party appraisals. There was no outstanding OREO as of December 31, 2025 and December 31, 2024.
Collateral dependent nonaccrual loans that have been adjusted to fair value totaled $ 1.3 million and $ 19.1 million at December 31, 2025 and 2024, respectively.
The following table presents the fair values of Northern Trust’s Level 3 assets that were adjusted to fair value on a nonrecurring basis during the year ended December 31, 2025 and 2024, as well as the valuation technique, significant unobservable inputs and quantitative information used to develop the significant unobservable inputs for such assets as of such dates.
TABLE 49: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS

  DECEMBER 31, 2025
FINANCIAL INSTRUMENT FAIR VALUE (1)
VALUATION 
TECHNIQUE UNOBSERVABLE INPUTS INPUT VALUES WEIGHTED-AVERAGE INPUT VALUES
Loans $ 1.3 million Market Approach Discount factor applied to real estate collateral-dependent loans to reflect realizable value
40.0 % 40.0 %

(1) Includes a real estate collateral-dependent loan.

  DECEMBER 31, 2024
FINANCIAL INSTRUMENT FAIR VALUE (1)
VALUATION 
TECHNIQUE UNOBSERVABLE INPUTS INPUT VALUES WEIGHTED-AVERAGE INPUT VALUES
Loans $ 19.1 million Market Approach Discount factor applied to real estate collateral-dependent loans to reflect realizable value
20.0 % 20.0 %

(1) Includes real estate collateral-dependent loans and other collateral-dependent loans.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 107

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables presents the carrying value and estimated fair value, including the fair value hierarchy level, of Northern Trust’s financial instruments that are not measured at fair value on the consolidated balance sheets as of December 31, 2025 and 2024. The following tables exclude those items measured at fair value on a recurring basis.
TABLE 50: FAIR VALUE OF FINANCIAL INSTRUMENTS

DECEMBER 31, 2025
ESTIMATED FAIR VALUE
(In Millions) CARRYING
 VALUE TOTAL ESTIMATED FAIR VALUE LEVEL 1 LEVEL 2 LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks $ 5,873.1   $ 5,873.1   $ 5,873.1   $ —   $ —  
Federal Reserve and Other Central Bank Deposits 53,524.9   53,524.9   —   53,524.9   —  
Interest-Bearing Deposits with Banks 1,729.4   1,729.4   —   1,729.4   —  
Federal Funds Sold and Securities Purchased under Agreements to Resell 2,654.1   2,654.1   —   2,654.1   —  
Debt Securities - Held to Maturity 23,429.6   22,381.2   —   22,381.2   —  
Loans
Held for Investment 41,777.1   41,661.2   —   —   41,661.2  
Held for Sale 6.8   6.8   —   6.8  
Other Assets 1,668.6   1,664.8   86.3   1,578.5   —  
FINANCIAL LIABILITIES
Deposits 142,797.7   142,348.6   —   142,348.6   —  
Federal Funds Purchased 2,141.1   2,141.1   —   2,141.1   —  
Securities Sold Under Agreements to Repurchase 292.2   292.2   —   292.2   —  
Other Borrowings 7,158.3   7,185.5   —   7,185.5   —  
Senior Notes 3,351.5   3,405.5   —   3,405.5   —  
Long-Term Debt 3,484.4   3,596.8   —   3,596.8   —  
Unfunded Commitments 373.0   373.0   —   373.0   —  
Other Liabilities 37.9   37.9   —   —   37.9  

DECEMBER 31, 2024
ESTIMATED FAIR VALUE
(In Millions) CARRYING
 VALUE TOTAL ESTIMATED FAIR VALUE LEVEL 1 LEVEL 2 LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks $ 4,677.2   $ 4,677.2   $ 4,677.2   $ —   $ —  
Federal Reserve and Other Central Bank Deposits 38,775.4   38,775.4   —   38,775.4   —  
Interest-Bearing Deposits with Banks 1,944.7   1,944.7   —   1,944.7   —  
Federal Funds Sold and Securities Purchased under Agreements to Resell 451.0   451.0   —   451.0   —  
Debt Securities - Held to Maturity 22,296.7   20,654.5   —   20,654.5   —  
Loans
Held for Investment 43,222.5   42,803.2   —   —   42,803.2  
Other Assets 1,506.4   1,499.2   83.3   1,415.9   —  
FINANCIAL LIABILITIES
Deposits
122,482.7   122,536.5   —   122,536.5   —  
Federal Funds Purchased 2,159.5   2,159.5   —   2,159.5   —  
Securities Sold Under Agreements to Repurchase 462.0   462.0   —   462.0   —  
Other Borrowings 6,521.0   6,545.3   —   6,545.3   —  
Senior Notes 2,769.7   2,800.3   —   2,800.3   —  
Long-Term Debt 4,081.3   4,164.4   —   4,164.4   —  
Unfunded Commitments 227.1   227.1   —   227.1   —  
Other Liabilities 50.6   50.6   —   —   50.6  

108 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Securities
The following tables provide the amortized cost, fair values, and remaining maturities of available for sale debt securities and held to maturity debt securities by security type.
TABLE 51: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES

DECEMBER 31, 2025
(In Millions) AMORTIZED
COST GROSS
UNREALIZED
GAINS GROSS
UNREALIZED
LOSSES FAIR
VALUE
Available for Sale
U.S. Government $ 8,148.0   $ 29.5   $ 5.1   $ 8,172.4  
Obligations of States and Political Subdivisions 322.4   —   9.3   313.1  
Government Sponsored Agency 16,616.7   44.1   93.3   16,567.5  
Non-U.S. Government 534.1   —   6.9   527.2  
Corporate Debt 65.1   —   0.7   64.4  
Covered Bonds 275.3   0.4   2.2   273.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 5,002.9   11.0   29.6   4,984.3  
Other Asset-Backed 2,720.5   7.7   3.1   2,725.1  
Commercial Mortgage-Backed 417.4   0.1   8.5   409.0  
Total Available for Sale $ 34,102.4   $ 92.8   $ 158.7   $ 34,036.5  
Held to Maturity

Obligations of States and Political Subdivisions $ 2,457.8   $ 4.6   $ 13.0   $ 2,449.4  
Government Sponsored Agency 8,424.5   8.3   736.7   7,696.1  
Non-U.S. Government 4,741.0   0.1   27.2   4,713.9  
Corporate Debt 389.0   —   5.0   384.0  
Covered Bonds 1,754.5   0.1   41.4   1,713.2  
Certificates of Deposit 444.5   —   4.0   440.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,511.5   4.3   59.4   4,456.4  

Commercial Mortgage-Backed 37.6   —   1.3   36.3  
Other 669.2   —   177.8   491.4  
Total Held to Maturity $ 23,429.6   $ 17.4   $ 1,065.8   $ 22,381.2  
Total Debt Securities $ 57,532.0   $ 110.2   $ 1,224.5   $ 56,417.7  

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 109

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024
(In Millions) AMORTIZED
COST GROSS
UNREALIZED
GAINS GROSS
UNREALIZED
LOSSES FAIR
VALUE
Available for Sale
U.S. Government $ 7,388.9   $ 1.5   $ 22.9   $ 7,367.5  
Obligations of States and Political Subdivisions 311.2   —   13.6   297.6  
Government Sponsored Agency 13,410.5   10.9   132.5   13,288.9  
Non-U.S. Government 308.9   0.2   12.3   296.8  
Corporate Debt 166.6   0.1   2.9   163.8  
Covered Bonds 234.0   0.5   3.6   230.9  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,617.0   8.3   42.2   4,583.1  
Other Asset-Backed 2,188.6   7.0   12.9   2,182.7  
Commercial Mortgage-Backed 603.4   0.3   13.5   590.2  
Total Available for Sale $ 29,229.1   $ 28.8   $ 256.4   $ 29,001.5  
Held to Maturity

Obligations of States and Political Subdivisions $ 2,548.2   $ —   $ 89.3   $ 2,458.9  
Government Sponsored Agency 8,635.0   0.9   1,081.3   7,554.6  
Non-U.S. Government 3,735.8   0.2   56.3   3,679.7  
Corporate Debt 351.6   —   11.0   340.6  
Covered Bonds 1,776.8   0.1   62.2   1,714.7  
Certificates of Deposit 336.0   —   0.3   335.7  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,146.9   1.4   171.3   3,977.0  
Other Asset-Backed 107.1   0.3   0.1   107.3  
Commercial Mortgage-Backed 37.6   —   0.8   36.8  
Other 621.7   —   172.5   449.2  
Total Held to Maturity $ 22,296.7   $ 2.9   $ 1,645.1   $ 20,654.5  
Total Debt Securities $ 51,525.8   $ 31.7   $ 1,901.5   $ 49,656.0  

110 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 52: REMAINING MATURITY OF DEBT SECURITIES

DECEMBER 31, 2025 ONE YEAR OR LESS ONE TO FIVE YEARS FIVE TO TEN YEARS OVER TEN YEARS TOTAL
(In Millions) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value
Available for Sale
U.S. Government $ 1,498.9   $ 1,505.4   $ 6,649.1   $ 6,667.0   $ —   $ —   $ —   $ —   $ 8,148.0   $ 8,172.4  
Obligations of States and Political Subdivisions —   —   250.2   242.9   72.2   70.2   —   —   322.4   313.1  
Government Sponsored Agency 4,407.2   4,401.2   9,015.5   9,004.0   2,145.2   2,129.5   1,048.8   1,032.8   16,616.7   16,567.5  
Non-U.S. Government 399.0   396.6   135.1   130.6   —   —   —   —   534.1   527.2  
Corporate Debt 43.4   43.1   21.7   21.3   —   —   —   —   65.1   64.4  
Covered Bonds 173.5   173.9   101.8   99.6   —   —   —   —   275.3   273.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 923.1   920.1   3,877.6   3,870.8   202.2   193.4   —   —   5,002.9   4,984.3  
Other Asset-Backed 290.8   288.0   900.9   906.0   1,127.2   1,129.1   401.6   402.0   2,720.5   2,725.1  
Commercial Mortgage-Backed 150.2   149.9   229.1   226.0   38.1   33.1   —   —   417.4   409.0  
Total Available for Sale $ 7,886.1   $ 7,878.2   $ 21,181.0   $ 21,168.2   $ 3,584.9   $ 3,555.3   $ 1,450.4   $ 1,434.8   $ 34,102.4   $ 34,036.5  
Held to Maturity

Obligations of States and Political Subdivisions $ 199.9   $ 199.8   $ 1,426.3   $ 1,428.6   $ 802.3   $ 792.4   $ 29.3   $ 28.6   $ 2,457.8   $ 2,449.4  
Government Sponsored Agency 883.5   815.1   4,253.8   3,952.2   1,906.9   1,717.7   1,380.3   1,211.1   8,424.5   7,696.1  
Non-U.S. Government 3,616.1   3,606.5   1,124.9   1,107.4   —   —   —   —   4,741.0   4,713.9  
Corporate Debt 207.5   204.9   181.5   179.1   —   —   —   —   389.0   384.0  
Covered Bonds 548.8   545.9   1,118.3   1,080.3   87.4   87.0   —   —   1,754.5   1,713.2  
Certificates of Deposit 444.5   440.5   —   —   —   —   —   —   444.5   440.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,614.4   1,587.7   2,891.1   2,863.5   6.0   5.2   —   —   4,511.5   4,456.4  

Commercial Mortgage-Backed —   —   37.6   36.3   —   —   —   —   37.6   36.3  
Other 82.4   80.6   348.2   319.7   43.2   34.1   195.4   57.0   669.2   491.4  
Total Held to Maturity $ 7,597.1   $ 7,481.0   $ 11,381.7   $ 10,967.1   $ 2,845.8   $ 2,636.4   $ 1,605.0   $ 1,296.7   $ 23,429.6   $ 22,381.2  
Total Debt Securities $ 15,483.2   $ 15,359.2   $ 32,562.7   $ 32,135.3   $ 6,430.7   $ 6,191.7   $ 3,055.4   $ 2,731.5   $ 57,532.0   $ 56,417.7  

Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.
Credit Quality. AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit-related include, but are not limited to, the severity of the impairment; the cause of the impairment; the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred.
There was no allowance for credit losses for AFS securities for the year ended December 31, 2025, reflecting a $ 0.2 million release of the reserve from December 31, 2024. There was a $ 0.2  million allowance for credit losses for AFS securities for the year ended December 31, 2024, reflecting a $ 1.0 million release from December 31, 2023. The process for identifying credit losses for AFS securities is based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security. For additional information, please refer to Note 6, “Allowance for Credit Losses.”

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 111

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2025 and 2024.
TABLE 53: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED

AS OF DECEMBER 31, 2025 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
(In Millions) FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES
U.S. Government $ —   $ —   $ 194.2   $ 5.1   $ 194.2   $ 5.1  
Obligations of States and Political Subdivisions —   —   313.1   9.3   313.1   9.3  
Government Sponsored Agency 1,288.2   1.7   6,848.5   91.6   8,136.7   93.3  
Non-U.S. Government 329.7   0.1   197.5   6.8   527.2   6.9  
Corporate Debt 21.3   0.4   43.1   0.3   64.4   0.7  
Covered Bonds 80.0   1.0   63.7   1.2   143.7   2.2  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,007.7   2.3   669.1   27.3   1,676.8   29.6  
Other Asset-Backed 109.9   0.1   265.4   3.0   375.3   3.1  
Commercial Mortgage-Backed 54.9   —   186.6   8.5   241.5   8.5  
Total $ 2,891.7   $ 5.6   $ 8,781.2   $ 153.1   $ 11,672.9   $ 158.7  

Note: There were no AFS securities with an allowance for credit losses reported as of December 31, 2025. Refer to the discussion further above and Note 6, “Allowance for Credit Losses” for further information.

AS OF DECEMBER 31, 2024 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
(In Millions) FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES
U.S. Government $ 4,477.5   $ 11.1   $ 532.3   $ 11.8   $ 5,009.8   $ 22.9  
Obligations of States and Political Subdivisions —   —   297.5   13.6   297.5   13.6  
Government Sponsored Agency 3,298.8   14.5   6,373.8   118.0   9,672.6   132.5  
Non-U.S. Government 54.9   0.1   181.6   12.2   236.5   12.3  
Corporate Debt —   —   76.9   1.6   76.9   1.6  
Covered Bonds —   —   119.6   3.6   119.6   3.6  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 881.9   2.6   720.5   39.6   1,602.4   42.2  
Other Asset-Backed 35.4   —   405.4   12.9   440.8   12.9  
Commercial Mortgage-Backed —   —   376.1   13.5   376.1   13.5  
Total $ 8,748.5   $ 28.3   $ 9,083.7   $ 226.8   $ 17,832.2   $ 255.1  

Note: One corporate debt AFS securities with a fair value of $ 38.9 million and unrealized losses of $ 1.3 million has been excluded from the table above as it has a $ 0.2 million allowance for credit losses reported as of December 31, 2024. Refer to the discussion further above and Note 6, “Allowance for Credit Losses” for further information.
As of December 31, 2025, there were 718 AFS debt securities with a combined fair value of $ 11.7 billion in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $ 158.7  million. As of December 31, 2024, there were 767 AFS debt securities with a combined fair value of $ 17.8 billion in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $ 255.1  million. Unrealized losses on AFS debt securities without an allowance for credit losses are primarily attributable to changes in market interest rates and credit spreads since their purchase.

112 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the amortized cost of HTM debt securities by credit rating using ratings from Moody’s, S&P Global or Fitch Ratings. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.
TABLE 54: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING

AS OF DECEMBER 31, 2025
($ In Millions) AAA AA A BBB NOT RATED TOTAL

Obligations of States and Political Subdivisions $ 986.0   $ 1,471.8   $ —   $ —   $ —   $ 2,457.8  
Government Sponsored Agency —   8,424.5   —   —   —   8,424.5  
Non-U.S. Government 649.7   1,231.7   2,844.7   14.9   —   4,741.0  
Corporate Debt 159.2   150.2   79.6   —   —   389.0  
Covered Bonds 1,754.5   —   —   —   —   1,754.5  
Certificates of Deposit —   —   —   —   444.5   444.5  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 3,412.9   776.2   321.2   1.2   —   4,511.5  

Commercial Mortgage-Backed —   37.6   —   —   —   37.6  
Other 53.0   —   —   —   616.2   669.2  
Total $ 7,015.3   $ 12,092.0   $ 3,245.5   $ 16.1   $ 1,060.7   $ 23,429.6  
Percent of Total 30   % 52   % 14   % —   % 4   % 100   %

AS OF DECEMBER 31, 2024
($ In Millions) AAA AA A BBB NOT RATED TOTAL

Obligations of States and Political Subdivisions $ 1,024.3   $ 1,523.9   $ —   $ —   $ —   $ 2,548.2  
Government Sponsored Agency 8,635.0   —   —   —   —   8,635.0  
Non-U.S. Government 700.0   704.2   2,020.1   311.5   —   3,735.8  
Corporate Debt —   191.5   160.1   —   —   351.6  
Covered Bonds 1,776.8   —   —   —   —   1,776.8  
Certificates of Deposit 316.6   —   —   —   19.4   336.0  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 3,132.8   984.5   28.5   1.1   —   4,146.9  
Other Asset-Backed 107.1   —   —   —   —   107.1  
Commercial Mortgage-Backed 37.6   —   —   —   —   37.6  
Other 50.7   —   —   —   571.0   621.7  
Total $ 15,780.9   $ 3,404.1   $ 2,208.7   $ 312.6   $ 590.4   $ 22,296.7  
Percent of Total 71   % 15   % 10   % 1   % 3   % 100   %

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 96 % of the HTM portfolio at both December 31, 2025 and December 31, 2024, comprised of securities rated A or higher. Moody's downgraded the long-term credit rating of the U.S. from Aaa to Aa1 in May 2025. As a result, government sponsored agency securities are now AA rated in the table dated December 31, 2025 above compared to AAA as of December 31, 2024.
Investment Security Gains and Losses. There were no sales of debt securities and no net investment security gains (losses) for 2025. There were proceeds of $ 2.0 billion and $ 5.2 billion in 2024 and 2023, respectively, from the sale of debt securities that resulted in the following investment security gains (losses).
TABLE 55: INVESTMENT SECURITY GAINS AND LOSSES

DECEMBER 31,
(In Millions) 2025 2024 2023
Gross Realized Debt Securities Gains $ —   $ 185.2   $ 10.5  
Gross Realized Debt Securities Losses —   ( 374.5 ) ( 180.0 )
Investment Security Gains (Losses), net $ —   $ ( 189.3 ) $ ( 169.5 )

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 113

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 56: INVESTMENT SECURITY GAINS AND LOSSES BY SECURITY TYPE

DECEMBER 31,
(In Millions) 2025 2024 2023
U.S. Governments $ —   $ ( 34.8 ) $ ( 29.9 )
Obligations of States and Political Subdivisions —   —   9.8  
Government Sponsored Agency —   ( 23.0 ) ( 73.2 )
Corporate Debt —   —   ( 7.6 )
Covered Bonds —   ( 4.2 ) —  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds —   ( 48.2 ) ( 9.1 )
Other Asset-Backed —   ( 56.5 ) ( 58.6 )
Commercial Mortgage-Backed —   ( 22.6 ) ( 0.9 )
Investment Security Gains (Losses), net $ —   $ ( 189.3 ) $ ( 169.5 )

Note 5 – Loans
Amounts outstanding for Loans, by segment and class, are shown in the following table.
TABLE 57: LOANS

DECEMBER 31,
(In Millions) 2025 2024
Commercial
Commercial and Institutional (1)
$ 9,995.0   $ 10,537.1  
Commercial Real Estate 5,272.2   5,314.2  
Non-U.S. (1)
2,190.1   2,113.9  
Other 2,973.7   2,313.6  
Total Commercial 20,431.0   20,278.8  
Personal
Private Client 14,550.4   15,848.8  
Residential Real Estate 6,077.3   6,109.9  
Non-U.S. 657.4   674.7  
Other 232.2   478.4  
Total Personal 21,517.3   23,111.8  
Total Loans $ 41,948.3   $ 43,390.6  

(1) Commercial and institutional and commercial-non-U.S. combined include $ 4.1  billion of private equity related loans, which consists primarily of capital call facilities at both December 31, 2025 and 2024.
Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value ratio of 65 % to 80 % at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest-only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2025 and 2024, equity credit lines totaled $ 294.0 million and $ 250.3 million, respectively. Equity credit lines for which first liens were held by Northern Trust represented 96 % and 97 % of the total equity credit lines as of December 31, 2025 and 2024, respectively.
Included within the other commercial, non-U.S. commercial, and other personal classes are short-duration advances, primarily related to the processing of custodied client investments, totaling $ 4.5 billion and $ 3.8 billion at December 31, 2025 and 2024, respectively. Demand deposit overdrafts reclassified as loan balances, primarily in the other personal class, totaled $ 12.0 million and $ 47.6 million at December 31, 2025 and 2024, respectively. There were $ 6.8 million in loans classified as held for sale as of December 31, 2025. There were no loans classified as held for sale as of December 31, 2024. Loans classified as held for sale are recorded at the lower of cost or fair value. There were $ 3.1 million in loans sold during the year ended December 31, 2025 and no loans sold during the year ended December 31, 2024.
Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans. Northern Trust uses a variety of credit quality indicators to assess the credit risk of loans at the segment, class, and individual credit exposure levels.

114 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting and management reporting. Risk ratings are used for ranking the credit risk of borrowers and their probability of default. Each borrower is rated using one of a number of ratings models or subjective assessment tools, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan class:
• Commercial and Institutional: cash flow leverage, profit margin, liquidity, balance sheet leverage;
• Commercial Real Estate: debt service coverage, collateral coverage, debt yield, leasing status, guarantor support;
• Commercial - Non-U.S.: leverage, profit margin, liquidity, return on assets, capital levels;
• Commercial - Other: cash flow leverage, profit margin, liquidity, balance sheet leverage, type of collateral, collateral coverage;
• Residential Real Estate: payment history, credit bureau scores, collateral coverage;
• Private Client: cash-flow-to-debt and net worth ratios, leverage, type of collateral, collateral coverage; and
• Personal - Other: debt to income metrics, income amounts, sources of income, type of collateral, collateral coverage.
While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually.
Loans in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down-cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss. Loans in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have fewer financial resources to manage through economic downturns. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss. Loans in the “6 to 9” category have elevated credit risk profiles that are monitored through internal watch lists. Borrowers associated with these risk profiles may have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse economic cycles. As a result of these characteristics, these credits, which include all nonaccrual credits, have elevated risk of default or are currently in default.
Loan segment and class balances as of December 31, 2025 and 2024 are provided in the following tables, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (Watch List, including accrual and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 115

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 58: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR

DECEMBER 31, 2025 TERM LOANS REVOLVING LOANS REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions) 2025 2024 2023 2022 2021 PRIOR TOTAL
Commercial
Commercial and Institutional (C&I)
Risk Rating:
1 to 3 Category $ 340.7   $ 425.1   $ 87.8   $ 220.3   $ 111.9   $ 149.5   $ 4,294.6   $ 57.6   $ 5,687.5  
4 to 5 Category 528.0   661.5   354.3   263.7   218.9   116.6   1,844.1   35.7   4,022.8  
6 to 9 Category 88.7   19.9   50.3   33.4   21.9   2.7   57.5   10.3   284.7  
Total C&I 957.4   1,106.5   492.4   517.4   352.7   268.8   6,196.2   103.6   9,995.0  
C&I Gross Charge-offs —   —   —   —   —   ( 1.4 ) —   —   ( 1.4 )
Commercial Real Estate (CRE)
Risk Rating:
1 to 3 Category 118.5   98.7   80.8   52.6   157.3   20.8   37.9   —   566.6  
4 to 5 Category 946.7   654.8   1,325.1   831.4   404.3   198.7   195.1   22.9   4,579.0  
6 to 9 Category 71.9   2.0   6.8   45.5   —   0.4   —   —   126.6  
Total CRE 1,137.1   755.5   1,412.7   929.5   561.6   219.9   233.0   22.9   5,272.2  
CRE Gross Charge-offs —   —   —   ( 2.1 ) —   —   —   —   ( 2.1 )
Non-U.S.
Risk Rating:
1 to 3 Category 696.5   119.2   15.4   —   —   112.5   258.6   —   1,202.2  
4 to 5 Category 634.3   18.6   16.1   —   —   173.6   131.5   —   974.1  
6 to 9 Category 1.0   —   —   12.8   —   —   —   —   13.8  
Total Non-U.S. 1,331.8   137.8   31.5   12.8   —   286.1   390.1   —   2,190.1  

Other
Risk Rating:
1 to 3 Category 1,730.0   —   —   —   —   —   —   —   1,730.0  
4 to 5 Category 1,243.7   —   —   —   —   —   —   —   1,243.7  
Total Other 2,973.7   —   —   —   —   —   —   —   2,973.7  

Total Commercial 6,400.0   1,999.8   1,936.6   1,459.7   914.3   774.8   6,819.3   126.5   20,431.0  
Commercial Gross Charge-offs —   —   —   ( 2.1 ) —   ( 1.4 ) —   —   ( 3.5 )
Personal
Private Client
Risk Rating:
1 to 3 Category 144.9   130.7   133.0   58.7   46.6   33.3   5,588.1   38.7   6,174.0  
4 to 5 Category 400.2   566.3   128.9   313.5   151.0   181.3   6,070.8   540.5   8,352.5  
6 to 9 Category —   —   15.2   —   —   —   8.7   —   23.9  
Total Private Client 545.1   697.0   277.1   372.2   197.6   214.6   11,667.6   579.2   14,550.4  
Private Client Gross Charge-offs —   —   —   —   —   ( 0.1 ) —   —   ( 0.1 )
Residential Real Estate (RRE)
Risk Rating:
1 to 3 Category 357.1   138.8   131.9   343.3   334.6   993.1   232.3   —   2,531.1  
4 to 5 Category 250.8   264.2   232.0   567.5   635.8   1,306.3   194.4   1.9   3,452.9  
6 to 9 Category 1.0   —   0.9   8.1   31.3   31.5   20.5   —   93.3  
Total RRE 608.9   403.0   364.8   918.9   1,001.7   2,330.9   447.2   1.9   6,077.3  
RRE Gross Charge-offs —   —   —   —   —   ( 0.1 ) —   —   ( 0.1 )
Non-U.S.
Risk Rating:
1 to 3 Category 5.1   —   —   —   0.6   11.4   224.7   —   241.8  
4 to 5 Category 29.1   14.6   12.8   8.8   22.8   9.6   280.2   7.4   385.3  
6 to 9 Category 22.6   7.6   —   —   —   0.1   —   —   30.3  
Total Non-U.S. 56.8   22.2   12.8   8.8   23.4   21.1   504.9   7.4   657.4  
Other
Risk Rating:
1 to 3 Category 86.0   —   —   —   —   —   —   —   86.0  
4 to 5 Category 146.2   —   —   —   —   —   —   —   146.2  
Total Other 232.2   —   —   —   —   —   —   —   232.2  
Other Gross Charge-offs ( 0.2 ) —   —   —   —   —   —   —   ( 0.2 )
Total Personal 1,443.0   1,122.2   654.7   1,299.9   1,222.7   2,566.6   12,619.7   588.5   21,517.3  
Personal Gross Charge-offs ( 0.2 ) —   —   —   —   ( 0.2 ) —   —   ( 0.4 )
Total Loans $ 7,843.0   $ 3,122.0   $ 2,591.3   $ 2,759.6   $ 2,137.0   $ 3,341.4   $ 19,439.0   $ 715.0   $ 41,948.3  
Total Loans Gross Charge-offs $ ( 0.2 ) $ —   $ —   $ ( 2.1 ) $ —   $ ( 1.6 ) $ —   $ —   $ ( 3.9 )

116 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 TERM LOANS REVOLVING LOANS REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions) 2024 2023 2022 2021 2020 PRIOR TOTAL
Commercial
Commercial and Institutional (C&I)
Risk Rating:
1 to 3 Category $ 462.1   $ 238.2   $ 367.9   $ 466.2   $ 82.2   $ 277.2   $ 4,364.8   $ 26.5   $ 6,285.1  
4 to 5 Category 708.3   506.4   392.5   428.3   82.3   144.2   1,585.1   59.7   3,906.8  
6 to 9 Category 34.8   89.3   65.8   70.2   2.3   2.3   73.6   6.9   345.2  
Total C&I 1,205.2   833.9   826.2   964.7   166.8   423.7   6,023.5   93.1   10,537.1  
C&I Gross Charge-offs —   ( 7.3 ) ( 5.4 ) —   —   —   —   —   ( 12.7 )
CRE
Risk Rating:
1 to 3 Category 123.2   256.3   224.4   203.7   13.8   43.7   52.6   —   917.7  
4 to 5 Category 610.1   1,574.2   1,070.4   424.8   173.2   174.4   198.0   5.2   4,230.3  
6 to 9 Category 14.0   15.8   125.7   6.0   4.3   0.4   —   —   166.2  
Total CRE 747.3   1,846.3   1,420.5   634.5   191.3   218.5   250.6   5.2   5,314.2  
CRE Gross Charge-offs —   —   ( 2.4 ) —   —   —   —   —   ( 2.4 )
Non-U.S.
Risk Rating:
1 to 3 Category 707.1   —   —   —   70.6   28.8   614.9   —   1,421.4  
4 to 5 Category 480.5   83.9   0.8   25.0   —   27.9   59.9   —   678.0  
6 to 9 Category 0.9   —   13.6   —   —   —   —   —   14.5  
Total Non-U.S. 1,188.5   83.9   14.4   25.0   70.6   56.7   674.8   —   2,113.9  

Other
Risk Rating:
1 to 3 Category 1,142.4   —   —   —   —   —   —   —   1,142.4  
4 to 5 Category 1,171.2   —   —   —   —   —   —   —   1,171.2  
Total Other 2,313.6   —   —   —   —   —   —   —   2,313.6  

Total Commercial 5,454.6   2,764.1   2,261.1   1,624.2   428.7   698.9   6,948.9   98.3   20,278.8  
Commercial Gross Charge-offs —   ( 7.3 ) ( 7.8 ) —   —   —   —   —   ( 15.1 )
Personal
Private Client
Risk Rating:
1 to 3 Category 251.3   33.9   84.4   37.9   7.9   44.6   6,993.2   93.3   7,546.5  
4 to 5 Category 249.0   660.2   384.0   390.5   123.5   181.3   5,734.8   535.3   8,258.6  
6 to 9 Category —   16.1   —   —   —   —   27.6   —   43.7  
Total Private Client 500.3   710.2   468.4   428.4   131.4   225.9   12,755.6   628.6   15,848.8  
RRE
Risk Rating:
1 to 3 Category 197.5   150.5   436.7   375.2   325.7   743.6   114.3   —   2,343.5  
4 to 5 Category 212.7   263.6   647.2   706.0   652.1   938.1   270.2   2.1   3,692.0  
6 to 9 Category 1.7   —   6.8   3.9   2.3   32.5   27.2   —   74.4  
Total RRE 411.9   414.1   1,090.7   1,085.1   980.1   1,714.2   411.7   2.1   6,109.9  
RRE Gross Charge-offs —   —   —   —   —   ( 0.1 ) —   —   ( 0.1 )
Non-U.S.
Risk Rating:
1 to 3 Category 3.3   1.0   —   —   —   6.0   369.6   —   379.9  
4 to 5 Category 19.5   16.0   15.2   39.1   —   19.6   170.3   7.2   286.9  
6 to 9 Category 7.8   —   —   —   —   0.1   —   —   7.9  
Total Non-U.S. 30.6   17.0   15.2   39.1   —   25.7   539.9   7.2   674.7  
Other
Risk Rating:
1 to 3 Category 168.5   —   —   —   —   —   —   —   168.5  
4 to 5 Category 309.9   —   —   —   —   —   —   —   309.9  
Total Other 478.4   —   —   —   —   —   —   —   478.4  
Other Gross Charge-Offs —   —   —   —   —   ( 0.3 ) —   —   ( 0.3 )
Total Personal 1,421.2   1,141.3   1,574.3   1,552.6   1,111.5   1,965.8   13,707.2   637.9   23,111.8  
Personal Gross Charge-offs —   —   —   —   —   ( 0.4 ) —   —   ( 0.4 )
Total Loans $ 6,875.8   $ 3,905.4   $ 3,835.4   $ 3,176.8   $ 1,540.2   $ 2,664.7   $ 20,656.1   $ 736.2   $ 43,390.6  
Total Loans Gross Charge-offs $ —   $ ( 7.3 ) $ ( 7.8 ) $ —   $ —   $ ( 0.4 ) $ —   $ —   $ ( 15.5 )

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 117

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Past Due Status. Past due status is based on the length of time from the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. The following table provides balances and delinquency status of accrual and nonaccrual loans by segment and class as of December 31, 2025 and 2024.
TABLE 59: DELINQUENCY STATUS

ACCRUAL NONACCRUAL WITH NO ALLOWANCE
(In Millions) CURRENT 30 – 59 DAYS
PAST DUE 60 – 89 DAYS
PAST DUE 90 DAYS
OR MORE
PAST DUE TOTAL ACCRUAL NONACCRUAL TOTAL LOANS
December 31, 2025
Commercial
Commercial and Institutional $ 9,865.0   $ 80.2   $ 0.8   $ 9.3   $ 9,955.3   $ 39.7   $ 9,995.0   $ 21.3  
Commercial Real Estate 5,222.1   37.3   3.6   9.2   5,272.2   —   5,272.2   —  
Non-U.S. 2,189.5   —   —   —   2,189.5   0.6   2,190.1   —  

Other 2,973.7   —   —   —   2,973.7   —   2,973.7   —  
Total Commercial 20,250.3   117.5   4.4   18.5   20,390.7   40.3   20,431.0   21.3  
Personal
Private Client 14,403.3   128.8   8.5   3.1   14,543.7   6.7   14,550.4   —  
Residential Real Estate 6,007.0   11.7   25.5   3.4   6,047.6   29.7   6,077.3   26.9  
Non-U.S. 657.4   —   —   —   657.4   —   657.4   —  
Other 232.2   —   —   —   232.2   —   232.2   —  
Total Personal 21,299.9   140.5   34.0   6.5   21,480.9   36.4   21,517.3   26.9  
Total Loans $ 41,550.2   $ 258.0   $ 38.4   $ 25.0   $ 41,871.6   $ 76.7   $ 41,948.3   $ 48.2  

ACCRUAL NONACCRUAL WITH NO ALLOWANCE
(In Millions) CURRENT 30 – 59 DAYS
PAST DUE 60 – 89 DAYS
PAST DUE 90 DAYS
OR MORE
PAST DUE TOTAL ACCRUAL NONACCRUAL TOTAL LOANS
December 31, 2024
Commercial
Commercial and Institutional $ 10,486.9   $ 12.8   $ 0.7   $ 6.9   $ 10,507.3   $ 29.8   $ 10,537.1   $ 10.5  
Commercial Real Estate 5,304.9   3.3   —   0.4   5,308.6   5.6   5,314.2   5.6  
Non-U.S. 2,113.0   —   0.4   —   2,113.4   0.5   2,113.9   —  

Other 2,313.6   —   —   —   2,313.6   —   2,313.6   —  
Total Commercial 20,218.4   16.1   1.1   7.3   20,242.9   35.9   20,278.8   16.1  
Personal
Private Client 15,677.6   87.7   15.2   66.0   15,846.5   2.3   15,848.8   0.7  
Residential Real Estate 6,063.4   17.2   2.5   9.0   6,092.1   17.8   6,109.9   17.8  
Non-U.S. 673.1   1.6   —   —   674.7   —   674.7   —  
Other 478.4   —   —   —   478.4   —   478.4   —  
Total Personal 22,892.5   106.5   17.7   75.0   23,091.7   20.1   23,111.8   18.5  
Total Loans $ 43,110.9   $ 122.6   $ 18.8   $ 82.3   $ 43,334.6   $ 56.0   $ 43,390.6   $ 34.6  

Interest income that would have been recorded for nonaccrual loans in accordance with their original terms was $ 4.1 million in 2025, $ 2.1 million in 2024, and $ 3.4 million in 2023.
Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of December 31, 2025 and 2024, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. As of December 31, 2025 and 2024, Northern Trust had loans with a carrying value of $ 7.9 million and $ 3.5 million, respectively, for which formal foreclosure proceedings were in process.

118 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Loan Modifications to Borrowers Experiencing Financial Difficulty
Northern Trust may provide payment relief by modifying the terms of the original loans for borrowers experiencing financial difficulties. Loan modifications to borrowers experiencing financial difficulty involve primarily extension of term, deferrals of principal and interest, interest rate concessions, and other modifications or a combination thereof and totaled $ 51.3  million, $ 7.2  million and $ 40.7  million for the years ended December 31, 2025, 2024 and 2023, respectively. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms.
The effectiveness of Northern Trust’s modification efforts is measured by the loans’ respective past-due status under the modified terms as of the end of the period. As of December 31, 2025, of loans that were modified in the previous 12 months, there were no loans 30-89 days past due and $ 18.4  million 90 days and greater past due in accordance with their modified terms. As of December 31, 2024, of the loans that were modified in the previous 12 months, there were no loans 30-89 days past due and $ 1.3  million 90 days and greater past due in accordance with their modified terms. As of December 31, 2023, of the loans that were modified in the previous 12 months, there were $ 4.7  million 30-89 days past due and $ 16.2  million 90 days and greater past due in accordance with their modified terms. All modification to borrowers experiencing financial difficulty continue to be reported as non-accrual loans until the requirements for returning to performing status are met. Northern Trust charged off $ 2.0  million, $ 8.5  million and $ 2.0  million for the years ended December 31, 2025, 2024 and 2023, respectively, related to loan modifications to borrowers experiencing financial difficulty.
There were no undrawn loan commitments or standby letters of credit issued to financially distressed borrowers for which Northern Trust had modified the payment terms of the loans as of December 31, 2025 and 2024, respectively.

Note 6 – Allowance for Credit Losses
Allowance and Provision for Credit Losses. The allowance for credit losses—which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposures, and specific borrower relationships—is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.
Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables and takes into consideration past events, current conditions, and reasonable and supportable forecasts. Northern Trust employs multiple scenarios over a reasonable and supportable period (currently two years ) to project future conditions. The primary forecast reflects an outlook of steady growth, stabilizing interest rates, and slightly higher unemployment rates. Recognizing the uncertainty in the primary forecast, an alternative scenario is also considered, which reflects a recession that incorporates the experiences of a wider set of historical economic cycles.
The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Financial Risk Management, Treasury, Corporate Finance, the Economic Research Department, and each of Northern Trust’s reporting business units. The Credit Loss Reserve Committee determines the probability weights applied to each forecast approved by Northern Trust’s MSDC, as well as, reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework.
As of December 31, 2025, qualitative adjustments primarily reflected macroeconomic uncertainty affecting Northern Trust's C&I portfolio, the possible impact of climate-related risks on future CRE property values, and the potential for higher-than-anticipated losses on large individual exposures. In comparison, as of December 31, 2024, qualitative adjustments were largely driven by climate-related risks affecting both commercial and residential real estate portfolios, an increased likelihood of recession within the CRE segment mostly due to ongoing concerns around office occupancy rates, and similar concerns regarding large individual exposures. The qualitative component of the reserve decreased as of December 31, 2025, relative to December 31, 2024, primarily due to an improved outlook for both the CRE portfolio and the climate-related risk projections for RRE in certain locations. These improvements were partially offset by the introduction of the qualitative adjustment intended to capture heightened macroeconomic uncertainty around the C&I portfolio since the start of 2025.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 119

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information regarding changes in the total Allowance for Credit Losses.
TABLE 60: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

2025
(In Millions) LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT HELD TO MATURITY DEBT SECURITIES OTHER FINANCIAL ASSETS TOTAL
Balance at Beginning of Period $ 168.0   $ 30.4   $ 6.5   $ 1.0   $ 205.9  
Charge-Offs ( 3.9 ) —   —   —   ( 3.9 )
Recoveries 3.6   —   —   —   3.6  
Net Recoveries (Charge-Offs) ( 0.3 ) —   —   —   ( 0.3 )
Provision for Credit Losses (1)
( 3.4 ) ( 7.1 ) 2.8   0.4   ( 7.3 )
Balance at End of Period $ 164.3   $ 23.3   $ 9.3   $ 1.4   $ 198.3  
(1) The table excludes a negative provision for credit losses of $ 0.2 million for the year ended December 31, 2025 for AFS debt securities. See further detail in Note 4, “Securities.”

2024
(In Millions) LOANS UNDRAWN LOAN COMMITMENTS
AND STANDBY LETTERS OF CREDIT HELD TO MATURITY DEBT SECURITIES OTHER
FINANCIAL ASSETS TOTAL
Balance at Beginning of Period $ 178.7   $ 26.9   $ 12.7   $ 0.9   $ 219.2  
Charge-Offs ( 15.5 ) —   —   —   ( 15.5 )
Recoveries 4.2   —   —   —   4.2  
Net Recoveries (Charge-Offs) ( 11.3 ) —   —   —   ( 11.3 )
Provision for Credit Losses (1)
0.6   3.5   ( 6.2 ) 0.1   ( 2.0 )
Balance at End of Period $ 168.0   $ 30.4   $ 6.5   $ 1.0   $ 205.9  

(1) The table excludes a negative provision for credit losses of $ 1.0 million for the year ended December 31, 2024 for AFS debt securities. See further detail in Note 4, “Securities.”

2023
(In Millions) LOANS UNDRAWN LOAN COMMITMENTS
AND STANDBY
LETTERS OF CREDIT HELD TO MATURITY DEBT SECURITIES OTHER
FINANCIAL ASSETS TOTAL
Balance at Beginning of Period $ 144.3   $ 38.5   $ 16.0   $ 0.8   $ 199.6  
Charge-Offs ( 7.5 ) —   ( 1.2 ) —   ( 8.7 )
Recoveries 3.7   —   —   —   3.7  
Net Recoveries (Charge-Offs) ( 3.8 ) —   ( 1.2 ) —   ( 5.0 )
Provision for Credit Losses (1)
38.2   ( 11.6 ) ( 2.1 ) 0.1   24.6  
Balance at End of Period $ 178.7   $ 26.9   $ 12.7   $ 0.9   $ 219.2  

(1) The table excludes a negative provision for credit losses of $ 0.1 million for the year ended December 31, 2023 for AFS debt securities. See further detail in Note 4, “Securities.”
Excluding the negative provisions for AFS debt securities, Northern Trust recognized a negative Provision for Credit Losses of $ 7.3 million and $ 2.0 million for the years ended December 31, 2025 and 2024, respectively, as compared to a Provision for Credit Losses of $ 24.6 million for the year ended December 31, 2023. The negative provision in 2025 was due to a decrease in collective reserves, primarily for the CRE portfolio, driven by an improved industry outlook; partially offset by an increase in specific reserves related to a small number of non-performing loans.
For credit exposure and the associated allowance related to fee receivables, please refer to Note 16, “Revenue from Contracts with Clients.” For information related to the allowance for AFS debt securities, please refer to Note 4, “Securities.”

120 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Allowance for the Loan Portfolio. The following table provides information regarding changes in the total allowance for credit losses related to loans, including undrawn loan commitments and standby letters of credit, by segment.
TABLE 61: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS

2025
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 138.5   $ 29.5   $ 168.0   $ 28.3   $ 2.1   $ 30.4  
Charge-Offs ( 3.5 ) ( 0.4 ) ( 3.9 ) —   —   —  
Recoveries 2.2   1.4   3.6   —   —   —  
Net Recoveries (Charge-Offs) ( 1.3 ) 1.0   ( 0.3 ) —   —   —  
Provision for Credit Losses ( 4.7 ) 1.3   ( 3.4 ) ( 6.6 ) ( 0.5 ) ( 7.1 )
Balance at End of Period $ 132.5   $ 31.8   $ 164.3   $ 21.7   $ 1.6   $ 23.3  

2024
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 146.8   $ 31.9   $ 178.7   $ 24.9   $ 2.0   $ 26.9  
Charge-Offs ( 15.1 ) ( 0.4 ) ( 15.5 ) —   —   —  
Recoveries —   4.2   4.2   —   —   —  
Net Recoveries (Charge-Offs) ( 15.1 ) 3.8   ( 11.3 ) —   —   —  
Provision for Credit Losses 6.8   ( 6.2 ) 0.6   3.4   0.1   3.5  
Balance at End of Period $ 138.5   $ 29.5   $ 168.0   $ 28.3   $ 2.1   $ 30.4  

2023
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 116.2   $ 28.1   $ 144.3   $ 36.3   $ 2.2   $ 38.5  
Charge-Offs ( 5.7 ) ( 1.8 ) ( 7.5 ) —   —   —  
Recoveries 0.2   3.5   3.7   —   —   —  
Net Recoveries (Charge-Offs) ( 5.5 ) 1.7   ( 3.8 ) —   —   —  
Provision for Credit Losses 36.1   2.1   38.2   ( 11.4 ) ( 0.2 ) ( 11.6 )
Balance at End of Period $ 146.8   $ 31.9   $ 178.7   $ 24.9   $ 2.0   $ 26.9  

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 121

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information regarding the recorded investments in loans and the allowance for credit losses for loans and undrawn loan commitments and standby letters of credit by segment as of December 31, 2025 and 2024.
TABLE 62: RECORDED INVESTMENTS IN LOANS

DECEMBER 31, 2025 DECEMBER 31, 2024
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Loans
Evaluated on an Individual Basis $ 55.0   $ 45.9   $ 100.9   $ 35.9   $ 30.0   $ 65.9  
Evaluated on a Collective Basis 20,376.0   21,471.4   41,847.4   20,242.9   23,081.8   43,324.7  
Total Loans 20,431.0   21,517.3   41,948.3   20,278.8   23,111.8   43,390.6  
Allowance for Credit Losses on Loans
Evaluated on an Individual Basis 5.9   4.3   10.2   1.2   2.0   3.2  
Evaluated on a Collective Basis 126.6   27.5   154.1   137.3   27.5   164.8  
Allowance Assigned to Loans 132.5   31.8   164.3   138.5   29.5   168.0  

Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit - Evaluated on a Collective Basis 21.7   1.6   23.3   28.3   2.1   30.4  
Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit $ 154.2   $ 33.4   $ 187.6   $ 166.8   $ 31.6   $ 198.4  

Allowance for Held to Maturity Debt Securities Portfolio. The following table provides information regarding changes in the total allowance for credit losses for held to maturity debt securities.
TABLE 63: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES

2025
(In Millions) CORPORATE DEBT NON-U.S. GOVERNMENT SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS (1)
COVERED BONDS OTHER TOTAL
Balance at Beginning of Period $ 0.3   $ 2.0   $ 1.1   $ 0.9   $ —   $ 2.2   $ 6.5  

Provision for Credit Losses —   0.8   1.7   0.2   0.1   —   2.8  
Balance at End of Period $ 0.3   $ 2.8   $ 2.8   $ 1.1   $ 0.1   $ 2.2   $ 9.3  

(1) The allowance for Obligations of States and Political Subdivisions is related to (non pre-refunded) municipal securities that do not fall under Northern Trust’s zero-loss assumption.

2024
(In Millions) CORPORATE DEBT NON-U.S. GOVERNMENT SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS (1)
COVERED BONDS OTHER TOTAL
Balance at Beginning of Period $ 0.9   $ 3.5   $ 2.2   $ 1.2   $ 0.1   $ 4.8   $ 12.7  

Provision for Credit Losses ( 0.6 ) ( 1.5 ) ( 1.1 ) ( 0.3 ) ( 0.1 ) ( 2.6 ) ( 6.2 )
Balance at End of Period $ 0.3   $ 2.0   $ 1.1   $ 0.9   $ —   $ 2.2   $ 6.5  

(1) The allowance for Obligations of States and Political Subdivisions is related to (non pre-refunded) municipal securities that do not fall under Northern Trust’s zero-loss assumption.

2023
(In Millions) CORPORATE DEBT NON-U.S. GOVERNMENT SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS (1)
COVERED BONDS OTHER TOTAL
Balance at Beginning of Period $ 1.9   $ 3.6   $ 4.0   $ 1.5   $ 0.1   $ 4.9   $ 16.0  
Charge-Offs —   —   —   —   —   ( 1.2 ) ( 1.2 )

Provision for Credit Losses ( 1.0 ) ( 0.1 ) ( 1.8 ) ( 0.3 ) —   1.1   ( 2.1 )
Balance at End of Period $ 0.9   $ 3.5   $ 2.2   $ 1.2   $ 0.1   $ 4.8   $ 12.7  

(1) The allowance for Obligations of States and Political Subdivisions is related to (non pre-refunded) municipal securities that do not fall under Northern Trust’s zero-loss assumption.
Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, and Other Assets. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and is expected to exhibit minimal to modest likelihood of loss. The Allowance for Credit Losses related to other financial assets was $ 1.4 million and $ 1.0 million as of December 31, 2025 and 2024, respectively.

122 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accrued Interest. Accrued interest balances are reported within Other Assets on the consolidated balance sheets. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loans and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the period the financial asset is moved from an accrual to a nonaccrual status.
The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.
TABLE 64: ACCRUED INTEREST

(In Millions) DECEMBER 31, 2025 DECEMBER 31, 2024
Loans $ 184.6   $ 211.7  
Debt Securities
Held to Maturity 76.9   58.9  
Available for Sale 175.0   173.9  
Other Financial Assets 62.2   53.1  
Total $ 498.7   $ 497.6  

The amount of accrued interest reversed through interest income for loans was immaterial and there was no accrued interest reversed through interest income related to any other financial assets during the years ended 2025 and 2024.

Note 7 – Concentrations of Credit Risk
Concentrations of credit risk exist if a number of borrowers or other counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The fact that a credit exposure falls into one of these groups does not necessarily indicate that the credit has a higher than normal degree of credit risk. These groups are: banks and bank holding companies, residential real estate, and commercial real estate.
Banks and Bank Holding Companies. At December 31, 2025, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $ 1.7 billion, demand balances maintained at correspondent banks of $ 5.9 billion and Securities Purchased under Agreements to Resell of $ 2.7 billion. At December 31, 2024, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $ 1.9 billion, demand balances maintained at correspondent banks of $ 4.7 billion, and Securities Purchased under Agreements to Resell of $ 426.0 million. Credit risk associated with U.S. and non-U.S. banks and bank holding companies deemed to be counterparties is managed by the Capital Markets Credit Committee. Credit limits are established through a review process that includes an internally-prepared financial analysis, use of an internal risk rating system, and consideration of external market indicators as well as regulatory single counterparty credit limits. Northern Trust places deposits with banks that have strong internal and external credit ratings, and the average life to maturity of deposits with banks is maintained on a short-term basis in order to respond quickly to changing credit conditions.
Residential Real Estate. Residential real estate loans totaled $ 6.1 billion at both December 31, 2025 and December 31, 2024, representing 16 % and 15 %, respectively, of total U.S. loans. Residential real estate loans consist of traditional first lien mortgages and equity credit lines, which generally require a loan-to-collateral value ratio of 65 % to 80 % at inception. Revaluations of supporting collateral are obtained upon refinancing or default or when otherwise considered warranted. Collateral revaluations for mortgages are performed by independent third parties. Legally binding undrawn commitments to extend residential real estate credit, which are primarily equity credit lines, totaled $ 515.2 million and $ 679.5 million at December 31, 2025 and 2024, respectively. The table below provides additional detail regarding residential real estate loans by geographic region.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

TABLE 65: RESIDENTIAL REAL ESTATE LOANS BY GEOGRAPHIC REGION

DECEMBER 31,
(In Millions) 2025 2024
Residential Real Estate by geographic region:
Florida $ 1,597.9   $ 1,636.5  
California 1,291.7   1,371.9  
Illinois 548.5   591.3  
New York 539.3   510.8  
Colorado 337.7   309.9  
Texas 301.4   308.7  
All other (1)
1,460.8   1,380.8  
Total Residential Real Estate $ 6,077.3   $ 6,109.9  
(1) The remainder is distributed throughout the other geographic regions within the U.S. served by Northern Trust.
Commercial Real Estate. Commercial real estate loans totaled $ 5.3 billion at December 31, 2025 and December 31, 2024, representing 13 % of total U.S. loans in both periods. In managing its credit exposure, management has defined a commercial real estate loan as one where: (1) the borrower’s principal business activity is the acquisition or the development of real estate for commercial purposes; (2) the principal collateral is real estate held for commercial purposes, and loan repayment is expected to flow from the operation of the property; or (3) the loan repayment is expected to flow from the sale or refinance of real estate as a normal and ongoing part of the business. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust.
Underwriting standards generally reflect conservative loan-to-collateral value (LTV) ratios and debt service coverage requirements. LTV ratios, calculated as the outstanding amount of the loan divided by the estimated value of the property, are a critical component of Northern Trust’s underwriting standards. Northern Trust utilizes LTV ratios in various stages of the lending and risk management process. Northern Trust’s policy related to LTV limits is more conservative than what is prescribed by current supervisory regulations. LTV ratios are monitored and updated on a quarterly basis utilizing the most recent outstanding amounts and appraisal values based on models, automated valuation services, or updated appraisals.
All commercial real estate transactions, regardless of size, require an independent appraisal at loan origination, unless permissible and approved regulatory exemptions can be applied. Real estate appraisals are, at a minimum, performed in accordance with generally accepted appraisal standards as applicable under local regulations. Northern Trust considers obtaining a new appraisal as part of the loan renewal process or whenever credit quality or market conditions have materially and adversely changed to the point where it is prudent to reassess the value of the real estate collateral. For defaulted loans, appraisals are updated on an, at least, annual basis. Appraisal values might be discounted based upon Northern Trust’s experience with actual liquidation values and management’s judgment as to the realizable value of the property.
Recourse to personal clients through guarantees is also generally required. Commercial mortgage financing is provided for the acquisition or refinancing of income-producing properties. Cash flows from the properties generally are sufficient to amortize the loan. These loans are primarily located in the California, Illinois, Florida, and Texas markets. Construction, acquisition and development loans provide financing for commercial real estate prior to rental income stabilization. The intent is generally that the borrower will sell the project or refinance the loan through a commercial mortgage with Northern Trust or another financial institution upon completion. At December 31, 2025, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $ 268.7 million and $ 79.9 million, respectively. At December 31, 2024, legally binding commitments to extend credit and standby letters of credit to commercial real estate borrowers totaled $ 376.5 million and $ 81.9 million, respectively.

124 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The table below provides additional detail regarding commercial real estate loan types.
TABLE 66: COMMERCIAL REAL ESTATE LOANS

DECEMBER 31,
(In Millions) 2025 2024
Commercial Mortgages
Apartment/ Multi-family $ 1,586.4   $ 1,599.9  
Industrial/Warehouse 960.1   906.1  
Office 948.0   944.4  
Retail 695.9   665.6  
Other 622.5   630.3  
Total Commercial Mortgages 4,812.9   4,746.3  
Construction, Acquisition and Development Loans 459.3   567.9  
Total Commercial Real Estate Loans $ 5,272.2   $ 5,314.2  

Note 8 – Buildings and Equipment
A summary of Buildings and Equipment is presented in the following table.
TABLE 67: BUILDINGS AND EQUIPMENT

DECEMBER 31, 2025
(In Millions) ORIGINAL
COST ACCUMULATED
DEPRECIATION NET BOOK
VALUE
Land and Improvements $ 11.5   $ 0.3   $ 11.2  
Buildings 227.8   140.0   87.8  
Equipment 512.0   335.3   176.7  
Leasehold Improvements 574.1   385.2   188.9  
Total Buildings and Equipment $ 1,325.4   $ 860.8   $ 464.6  

DECEMBER 31, 2024
(In Millions) ORIGINAL
COST ACCUMULATED
DEPRECIATION NET BOOK
VALUE
Land and Improvements $ 11.5   $ 0.3   $ 11.2  
Buildings 226.5   143.4   83.1  
Equipment 539.6   343.4   196.2  
Leasehold Improvements 553.5   353.7   199.8  
Total Buildings and Equipment $ 1,331.1   $ 840.8   $ 490.3  

The charge for depreciation amounted to $ 100.7 million in 2025, $ 110.0 million in 2024, and $ 115.9 million in 2023 on the consolidated statements of income.

Note 9 – Lease Commitments
As of December 31, 2025, Northern Trust was obligated under a number of non-cancelable operating leases, primarily for real estate. Certain leases contain rent escalation clauses based on market indices, renewal option clauses calling for increased rentals, and rental payments based on usage. There are no restrictions imposed by any lease agreement regarding the payment of dividends, debt financing or Northern Trust entering into further lease agreements.
The components of lease costs for the years ended December 31, 2025 and 2024 were as follows.
TABLE 68: LEASE COST COMPONENTS

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024
Operating Lease Cost $ 87.8   $ 93.5  
Variable Lease Cost (1)
50.4   49.3  
Sublease Income ( 3.2 ) ( 3.0 )
Total Lease Cost $ 135.0   $ 139.8  

(1) Variable Lease Cost includes rental payments based on usage, common-area maintenance costs and property taxes.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 125

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents a maturity analysis of lease liabilities as of December 31, 2025.
TABLE 69: MATURITY OF LEASE LIABILITIES

(In Millions) MATURITY OF LEASE LIABILITIES
2026 $ 98.0  
2027 99.1  
2028 86.2  
2029 71.0  
2030 70.3  
Later Years 315.2  
Total Lease Payments 739.8  
Less: Imputed Interest ( 115.4 )
Present Value of Lease Liabilities $ 624.4  

As of December 31, 2025, Northern Trust did not have any commitments for operating leases in addition to the above that have not yet commenced.
Northern Trust uses its incremental borrowing rate to determine the present value of lease payments for operating leases. Operating lease right-of-use (ROU) assets and lease liabilities may include options to extend or terminate the lease only when it is reasonably certain that Northern Trust will exercise that option. Northern Trust elects not to separate lease and non-lease components of a contract for its real estate leases. The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2025 and 2024 are presented in the following table.
TABLE 70: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES

(In Millions) LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET DECEMBER 31, 2025 DECEMBER 31, 2024
Assets
Operating Lease Right-of-Use Asset Other Assets $ 464.6   $ 478.0  
Liabilities
Operating Lease Liability Other Liabilities $ 624.4   $ 648.8  

The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2025 and 2024 were as follows:
TABLE 71: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE

DECEMBER 31, 2025 DECEMBER 31, 2024
Operating Leases
     Weighted-Average Remaining Lease Term 9.2 years 9.7 years
     Weighted-Average Discount Rate 3.5   % 3.4   %

The following table provides supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024.
TABLE 72: SUPPLEMENTAL CASH FLOW INFORMATION

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024
Supplemental cash flow information
     Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 105.4   $ 94.5  
Supplemental non-cash information
     Right-of-use assets obtained in exchange for new operating lease liabilities $ 48.8   $ 36.5  

126 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 10 – Goodwill and Other Intangibles
Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2025 and 2024, including the effect of foreign exchange rates on non-U.S.-dollar denominated balances, were as follows.
TABLE 73: GOODWILL

(In Millions) ASSET SERVICING WEALTH
MANAGEMENT TOTAL
Balance at December 31, 2023 $ 621.9   $ 80.4   $ 702.3  
Foreign Exchange Rates ( 7.3 ) ( 0.1 ) ( 7.4 )
Balance at December 31, 2024 $ 614.6   $ 80.3   $ 694.9  

Foreign Exchange Rates 17.9   0.1   18.0  
Balance at December 31, 2025 $ 632.5   $ 80.4   $ 712.9  

The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Asset Servicing and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2025 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2025.
Other Intangible Assets. The net carrying amount of other intangible assets was $ 59.6 million and $ 58.1 million as of December 31, 2025 and 2024, respectively. Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets. Amortization expense totaled $ 6.1 million and $ 9.2 million for the years ended December 31, 2025 and 2024, respectively.
Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2025 and 2024 were as follows.
TABLE 74: CAPITALIZED SOFTWARE

DECEMBER 31,
(In Millions) 2025 2024
Gross Carrying Amount $ 4,926.2   $ 4,259.6  
Less: Accumulated Amortization 2,574.2   2,104.5  
Net Carrying Value $ 2,352.0   $ 2,155.1  

Capitalized software, which is included in Other Assets on the consolidated balance sheets, consists primarily of costs related to purchased software and internal-use software development projects that result in new or enhanced functionality, including compensation and other allowable internal costs. Fees paid for the use of software services that do not convey a software license are expensed as incurred. Amortization expense, which is included in Equipment and Software on the consolidated statements of income, totaled $ 672.3 million in 2025, $ 597.6 million in 2024, and $ 509.4 million in 2023.

Note 11 – Deposits
The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2025.
TABLE 75: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE

DECEMBER 31, 2025
U.S. OFFICE NON-U.S. OFFICES
(In Millions) CERTIFICATES OF DEPOSIT OTHER TIME TOTAL
1 Year or Less $ 5,572.4   $ 995.3   $ 6,567.7  
Over 1 Year to 2 Years 21.5   —   21.5  
Over 2 Years to 3 Years 13.5   —   13.5  
Over 3 Years to 4 Years 2.4   —   2.4  
Over 4 Years to 5 Years 1.4   —   1.4  
Over 5 Years —   —   —  
Total $ 5,611.2   $ 995.3   $ 6,606.5  

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 127

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024, there were $ 7.1  billion of time deposits in denominations of $250,000 or greater, of which, $ 4.9  billion were Certificates of Deposit and $ 2.2  billion were non-U.S.

Note 12 – Senior Notes and Long-Term Debt
Senior Notes. On November 19, 2025, the Corporation issued $ 500  million of 4.15 % senior notes, due November 19, 2030. The senior notes will bear interest from the date they were issued at an annual rate of 4.15 %, payable semi-annually in arrears. The senior notes are unsecured and rank equally with all of the Corporation's existing and future senior debt. The senior notes are not redeemable prior to maturity.
A summary of Senior Notes outstanding at December 31, 2025 and 2024 is presented in the following table.
TABLE 76: SENIOR NOTES

DECEMBER 31,
($ In Millions) RATE 2025 2024
Corporation-Senior Notes
Fixed Rate Note Due May 2027 (1)
4.00   % $ 999.0   $ 998.3  
Fixed Rate Note Due August 2028 (2)(3)
3.65   493.5   479.6  
Fixed Rate Note Due May 2029 (2)(3)
3.15   483.1   465.3  
Fixed Rate Note Due May 2030 (2)(3)
1.95   879.8   826.5  
Fixed Rate Note Due November 2030 (3)(4)
4.15   496.1   —  
Total Senior Notes $ 3,351.5   $ 2,769.7  

(1) Redeemable within one month of maturity.
(2) Redeemable within three months of maturity.
(3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and (decreases) increases in the carrying values of senior notes outstanding of $( 142.2 ) million and $( 224.2 ) million were recorded as of December 31, 2025 and 2024, respectively. See further detail in Note 25, “Derivative Financial Instruments.”
(4) Not redeemable prior to maturity.
Long-Term Debt. On November 19, 2025, the Corporation issued $ 750  million of 5.117 % subordinated notes, due November 19, 2040. The subordinated notes will bear interest from the date they were issued at an annual rate of 5.117 %, payable semi-annually in arrears until, but excluding November 19, 2035. From, and including November 19, 2035, the subordinated notes will bear a fixed interest rate equal to the five-year U.S. Treasury Rate plus 105 basis points per annum payable semi-annually in arrears. The subordinated notes are unsecured and rank junior to all of the Corporation's existing and future senior debt. On, and only on, November 19, 2035, the subordinated notes may be redeemed, in whole but not in part, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date.

128 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of Long-Term Debt, defined as debt with original maturities of one year or more, outstanding at December 31, 2025 and 2024 is presented in the following table. We do not reclassify Long-Term Debt to short-term borrowings within a year of maturity.
TABLE 77: LONG-TERM DEBT

DECEMBER 31,
($ In Millions) RATE
2025 2024
Corporation-Subordinated Debt
Fixed Rate Note due October 2025 (1)
3.950   % $ —   $ 736.0  
Fixed-to-Floating Rate Note due May 2032 (2)
3.375   349.9   349.8  
Fixed Rate Note due November 2032 (3)
6.125   996.0   995.5  
Fixed-to-Fixed Rate Note due November 2040 (4)(5)
5.117   738.5   —  
Total Corporation-Subordinated Debt $ 2,084.4   $ 2,081.3  

Federal Home Loan Bank (FHLB) Advances
FHLB Fixed Rate Advance due December 2025
5.13   % $ —   $ 30.0  
FHLB Fixed Rate Advance due December 2025
5.18   —   570.0  
FHLB Fixed Rate Advance due March 2026
5.13   600.0   600.0  
FHLB Fixed Rate Advance due June 2026
5.09   800.0   800.0  
Total FHLB Advances $ 1,400.0   $ 2,000.0  

Total Long-Term Debt $ 3,484.4   $ 4,081.3  
Long-Term Debt Qualifying as Risk-Based Capital $ 2,097.3   $ 1,347.1  

(1) Redeemed in October 2025.
(2) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of  3.375 %, payable semi-annually in arrears. Effective February 27, 2023, the Board of Governors of the Federal Reserve adopted a final rule to implement the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”). The final rule establishes benchmark replacements for contracts governed by U.S. law that reference certain tenors of U.S. dollar LIBOR after June 30, 2023. Pursuant to the final rule, three-month LIBOR will be replaced by the three-month CME Term SOFR Reference Rate, as administered by CME Group Benchmark Administration, Ltd. (“three-month CME Term SOFR”) plus the statutory spread adjustment of 0.26161% as set forth in the final rule. As a result, from, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month CME Term SOFR plus 0.26161% plus  1.131 %, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to  100 % of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.
(3) Redeemable within three months of maturity.
(4) The subordinated notes will bear interest from the date they were issued at an annual rate of 5.117 %, payable semi-annually in arrears until, but excluding November 19, 2035. From, and including November 19, 2035, the subordinated notes will bear a fixed interest rate equal to the five-year U.S. Treasury Rate plus 105 basis points per annum payable semi-annually in arrears. The subordinated notes are unsecured and may be redeemed in whole but not in part, on, and only on, November 19, 2035, at a redemption price equal to  100 % of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.
(5) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and (decreases) increases in the carrying values of subordinated notes outstanding of $( 9.2 ) million were recorded as of December 31, 2025. See further detail in Note 25, “Derivative Financial Instruments.”

Note 13 – Stockholders’ Equity
Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board of Directors is authorized to fix the particular designations, preferences and relative, participating, optional and other special rights and qualifications, limitations or restrictions for each series of preferred stock issued.
As of December 31, 2025, 5,000 shares of Series D Non-Cumulative Perpetual Preferred Stock (“Series D Preferred Stock”) and 16,000 shares of Series E Non-Cumulative Perpetual Preferred Stock (“Series E Preferred Stock”) were outstanding.
Series D Preferred Stock. As of December 31, 2025, the Corporation had issued and outstanding 500,000 depositary shares, each representing a 1/100th ownership interest in a share of Series D Preferred Stock, issued in August 2016. Equity related to Series D Preferred Stock as of both December 31, 2025 and 2024 was $ 493.5 million. Shares of the Series D Preferred Stock have no par value and a liquidation preference of $ 100,000 per share (equivalent to $ 1,000 per depositary share).
Dividends on the Series D Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, at a rate per annum equal to (i) 4.60 % from the original issue date of the Series D Preferred Stock to but excluding October 1, 2026; and (ii) a floating rate equal to three-month CME Term SOFR, plus a statutory spread adjustment of 0.26161% (as set forth in the final rule to implement the LIBOR Act) plus 3.202 % from and including October 1, 2026. Fixed rate dividends are payable in arrears on the first day of April and October of each year, through and including October 1, 2026, and floating rate dividends will be payable in arrears on the first day of January, April, July and October of each year, commencing on January 1, 2027.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 129

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Series D Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after October 1, 2026. The Series D Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to October 1, 2026, within 90 days of a regulatory capital treatment event, as described in the Series D Preferred Stock Certificate of Designation.
Shares of the Series D Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series D Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.
Series E Preferred Stock. As of December 31, 2025, the Corporation had issued and outstanding 16 million depositary shares, each representing 1/1,000th ownership interest in a share of Series E Preferred Stock, issued in November 2019. Equity related to Series E Preferred Stock as of both December 31, 2025 and 2024 was $ 391.4 million. Shares of the Series E Preferred Stock have no par value and a liquidation preference of $ 25,000 per share (equivalent to $ 25 per depositary share).
Dividends on the Series E Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, at a rate per annum equal to 4.70 %. On October 21, 2025, the Corporation declared a cash dividend of $ 293.75 per share of Series E Preferred Stock payable on January 1, 2026, to stockholders of record as of December 15, 2025.
The Series E Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date effective January 1, 2025.
Shares of the Series E Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series E Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up.
Common Stock. As of December 31, 2025, the Corporation had issued and outstanding shares of common stock of 245.2  million and 186.3  million, respectively. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other incentive plans. On July 22, 2025, the Board of Directors approved a new repurchase program that authorized the Corporation to repurchase up to $ 2.5  billion of the Corporation’s common stock. This program has no expiration date. Repurchases prior to July 22, 2025 were made pursuant to the stock repurchase authorization approved by the Board of Directors in October 2021 During the year ended December 31, 2025, the Corporation repurchased 11,005,509 shares of common stock, including 450,486 shares withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $ 1.3 billion. During the year ended December 31, 2024, the Corporation repurchased 10,489,770 shares of common stock, including 424,806 shares withheld to satisfy tax withholding obligations related to share-based compensation at a total cost of $ 937.8 million. During the year ended December 31, 2023, the Corporation repurchased 4,384,678 shares of common stock, including 378,130 shares withheld to satisfy tax withholding obligations related to share-based compensation, at a total cost of $ 347.5  million.
The average price paid per share for common stock repurchased in 2025, 2024, and 2023 was $ 115.72 , 89.41 , and 79.26 , respectively.
An analysis of changes in the number of shares of common stock outstanding follows:
TABLE 78: SHARES OF COMMON STOCK OUTSTANDING

2025 2024 2023
Balance at January 1 195,969,746   205,126,224   208,428,309  
Incentive Plan and Awards 1,283,056   1,178,816   1,040,450  
Stock Options Exercised 90,295   154,476   42,143  
Treasury Stock Purchased ( 11,005,509 ) ( 10,489,770 ) ( 4,384,678 )
Balance at December 31 186,337,588   195,969,746   205,126,224  

130 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 14 – Accumulated Other Comprehensive Income (Loss)
The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2025, 2024, and 2023, and changes during the years then ended.
TABLE 79: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(In Millions) NET UNREALIZED (LOSSES) GAINS ON AVAILABLE FOR SALE DEBT SECURITIES (1)
NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENT NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL
Balance at December 31, 2022 $ ( 1,367.6 ) $ 1.2   $ 164.6   $ ( 367.4 ) $ ( 1,569.2 )
Net Change 443.7   ( 0.4 ) 39.0   ( 51.0 ) 431.3  
Balance at December 31, 2023 $ ( 923.9 ) $ 0.8   $ 203.6   $ ( 418.4 ) $ ( 1,137.9 )
Net Change 325.8   ( 0.2 ) 29.5   ( 31.2 ) 323.9  
Balance at December 31, 2024 $ ( 598.1 ) $ 0.6   $ 233.1   $ ( 449.6 ) $ ( 814.0 )
Net Change 196.8   0.3   15.8   10.6   223.5  
Balance at December 31, 2025 $ ( 401.3 ) $ 0.9   $ 248.9   $ ( 439.0 ) $ ( 590.5 )

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM.
TABLE 80: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025 2024 2023
(In Millions) PRE-TAX TAX AFTER TAX PRE-TAX TAX AFTER
TAX PRE-TAX TAX AFTER
TAX
Unrealized Gains (Losses) on Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities $ 162.3   $ ( 40.9 ) $ 121.4   $ 147.7   $ ( 39.5 ) $ 108.2   $ 319.4   $ ( 81.1 ) $ 238.3  
Reclassification Adjustments for Losses (Gains) Included in Net Income:
Interest Income on Debt Securities (1)
99.9   ( 24.5 ) 75.4   101.3   ( 25.1 ) 76.2   105.6   ( 26.7 ) 78.9  
Net Losses on Debt Securities (2)
—   —   —   189.3   ( 47.9 ) 141.4   169.5   ( 43.0 ) 126.5  
Net Change $ 262.2   $ ( 65.4 ) $ 196.8   $ 438.3   $ ( 112.5 ) $ 325.8   $ 594.5   $ ( 150.8 ) $ 443.7  
Unrealized Gains (Losses) on Cash Flow Hedges
Foreign Exchange Contracts $ 20.9   $ ( 5.1 ) $ 15.8   $ 13.2   $ ( 3.2 ) $ 10.0   $ 36.3   $ ( 9.2 ) $ 27.1  

Reclassification Adjustment for (Gains) Losses Included in Net Income (3)
( 20.5 ) 5.0   ( 15.5 ) ( 13.4 ) 3.2   ( 10.2 ) ( 36.8 ) 9.3   ( 27.5 )
Net Change $ 0.4   $ ( 0.1 ) $ 0.3   $ ( 0.2 ) $ —   $ ( 0.2 ) $ ( 0.5 ) $ 0.1   $ ( 0.4 )
Foreign Currency Adjustments
Foreign Currency Translation Adjustments $ 275.2   $ ( 12.8 ) $ 262.4   $ ( 149.0 ) $ 5.4   $ ( 143.6 ) $ 100.8   $ ( 1.6 ) $ 99.2  
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 1.2   ( 0.2 ) 1.0   ( 0.9 ) 0.2   ( 0.7 ) ( 0.9 ) 0.2   ( 0.7 )
Net Investment Hedge (Losses) Gains ( 328.1 ) 80.5   ( 247.6 ) 233.1   ( 59.3 ) 173.8   ( 77.4 ) 17.9   ( 59.5 )
Net Change $ ( 51.7 ) $ 67.5   $ 15.8   $ 83.2   $ ( 53.7 ) $ 29.5   $ 22.5   $ 16.5   $ 39.0  
Pension and Other Postretirement Benefit Adjustments
Net Actuarial Gains (Losses) $ 5.6   $ ( 4.0 ) $ 1.6   $ ( 54.0 ) $ 12.9   $ ( 41.1 ) $ ( 71.4 ) $ 15.7   $ ( 55.7 )
Reclassification Adjustment for Losses (Gains) Included in Net Income (4)

Amortization of Net Actuarial Loss 12.2   ( 3.0 ) 9.2   13.0   ( 3.2 ) 9.8   6.4   ( 1.7 ) 4.7  
Amortization of Prior Service Cost (Credit) ( 0.1 ) —   ( 0.1 ) ( 0.1 ) —   ( 0.1 ) —   —   —  
Settlement Loss ( 0.1 ) —   ( 0.1 ) 0.2   —   0.2   —   —   —  
Net Change $ 17.6   $ ( 7.0 ) $ 10.6   $ ( 40.9 ) $ 9.7   $ ( 31.2 ) $ ( 65.0 ) $ 14.0   $ ( 51.0 )
Total Net Change $ 228.5   $ ( 5.0 ) $ 223.5   $ 480.4   $ ( 156.5 ) $ 323.9   $ 551.5   $ ( 120.2 ) $ 431.3  

(1) The before-tax reclassification adjustment is related to the unrealized gains (losses) amortization on AFS debt securities that were previously transferred to HTM debt securities. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into Net Interest Income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value.
(2) The net losses on AFS debt securities before-tax reclassification adjustment is recorded in Investment Security Gains (Losses), net on the consolidated statements of income. Refer to Note 4, “Securities” for further information.
(3) See Note 25, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges.
(4) The pension and other postretirement benefit before-tax reclassification adjustment is recorded in Employee Benefits expense on the consolidated statements of income. Refer to Note 21, “Employee Benefits” for further information.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 131

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 15 – Net Income per Common Share
The computations of net income per common share are presented in the following table.
TABLE 81: NET INCOME PER COMMON SHARE

FOR THE YEAR ENDED DECEMBER 31,
($ In Millions Except Per Common Share Information) 2025 2024 2023
BASIC NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding 191,358,026   201,263,646   207,248,094  
Net Income $ 1,736.9   $ 2,031.1   $ 1,107.3  
Less: Dividends on Preferred Stock 41.8   41.8   41.8  
Net Income Applicable to Common Stock 1,695.1   1,989.3   1,065.5  
Less: Earnings Allocated to Participating Securities 15.9   16.9   11.6  
Earnings Allocated to Common Shares Outstanding $ 1,679.2   $ 1,972.4   $ 1,053.9  
Basic Net Income Per Common Share 8.78   9.80   5.09  
DILUTED NET INCOME PER COMMON SHARE
Average Number of Common Shares Outstanding 191,358,026   201,263,646   207,248,094  
Plus Dilutive Effect of Share-based Compensation 888,499   606,459   315,652  
Average Common and Potential Common Shares 192,246,525   201,870,105   207,563,746  
Earnings Allocated to Common and Potential Common Shares $ 1,679.3   $ 1,972.3   $ 1,053.9  
Diluted Net Income Per Common Share 8.74   9.77   5.08  

Note: For the year ended December 31, 2025, there were no common stock equivalents excluded from the computation of diluted net income per common share because their inclusion would have been antidilutive. For the years ended December 31, 2024 and 2023, there were 0.1 million common stock equivalents excluded in the computation of diluted net income per share.

Note 16 – Revenue from Contracts with Clients
Trust, Investment, and Other Servicing Fees. Custody and Fund Administration fees is comprised of revenues received from our core asset servicing business for providing custody, fund administration, and middle-office-related services, primarily to Asset Servicing clients. Investment Management and Advisory income contains revenue received from providing asset management and related services to Wealth Management and Asset Servicing clients and to Northern Trust sponsored funds. Securities Lending income represents revenues generated from securities lending arrangements that Northern Trust enters into as agent, mainly with Asset Servicing clients. Other fees largely consists of revenues received from providing employee benefit, investment risk and analytic and other services to Asset Servicing and Wealth Management clients.
Other Noninterest Income. Treasury Management income represents revenues received from providing cash and liquidity management services to Asset Servicing and Wealth Management clients. The portion of Security Commissions and Trading Income that relates to revenue from contracts with clients is primarily comprised of commissions earned from providing securities brokerage services to Wealth Management and Asset Servicing clients. The portion of Other Operating Income that relates to revenue from contracts with clients is mainly comprised of service fees for banking-related services provided to Wealth Management and Asset Servicing clients.
Performance Obligations. Clients are typically charged monthly or quarterly in arrears based on the fee arrangement agreed to with each client; payment terms will vary depending on the client and services offered.
Substantially all revenues generated from contracts with clients for asset servicing, asset management, securities lending, treasury management and banking-related services are recognized on an accrual basis, over the period in which services are provided. The nature of Northern Trust’s performance obligations is to provide a series of distinct services in which the customer simultaneously receives and consumes the benefits of the promised services as they are performed. Fee arrangements are mainly comprised of variable amounts based on market value of client assets managed and serviced, transaction volumes, number of accounts, and securities lending volume and spreads. Revenue is recognized using the output method in an amount that reflects the consideration to which Northern Trust expects to be entitled in exchange for providing each month or quarter of service. For contracts with multiple performance obligations, revenue is allocated to each performance obligation based on the price agreed to with the client, representing its relative standalone selling price.
Security brokerage revenue is primarily represented by securities commissions received in exchange for providing trade execution related services. Control is transferred at a point in time, on the trade date of the transaction, and fees are typically variable based on transaction volumes and security types.

132 2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Northern Trust’s contracts with its clients are typically open-ended arrangements and are therefore considered to have an original duration of less than one year. Northern Trust has elected the practical expedient to not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less.
The following table presents revenues disaggregated by major revenue source.
TABLE 82: REVENUE DISAGGREGATION

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024 2023
Noninterest Income
       Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 2,026.7   $ 1,915.2   $ 1,805.3  
Investment Management and Advisory 2,659.7   2,491.5   2,232.3  
Securities Lending 83.0   74.3   83.9  
Other 248.4   246.8   240.3  
Total Trust, Investment and Other Servicing Fees $ 5,017.8   $ 4,727.8   $ 4,361.8  
Other Noninterest Income
       Foreign Exchange Trading Income $ 240.8   $ 231.2   $ 203.9  
       Treasury Management Fees 38.7   35.7   31.6  
       Security Commissions and Trading Income 170.4   150.5   135.0  
       Other Operating Income 207.7   1,157.4   228.7  
       Investment Security Gains (Losses), net —   ( 189.3 ) ( 169.5 )
Total Other Noninterest Income $ 657.6   $ 1,385.5   $ 429.7  
Total Noninterest Income $ 5,675.4   $ 6,113.3   $ 4,791.5  

On the consolidated statements of income, Trust, Investment and Other Servicing Fees and Treasury Management Fees represent revenue from contracts with clients. For the year ended December 31, 2025, revenue from contracts with clients also includes $ 162.9 million of the $ 170.4 million total Security Commissions and Trading Income and $ 41.8 million of the $ 207.7 million total Other Operating Income. For the year ended December 31, 2024, revenue from contracts with clients also includes $ 143.7 million of the $ 150.5 million total Security Commissions and Trading Income and $ 39.3 million of the $ 1,157.4 million total Other Operating Income. For the year ended December 31, 2023, revenue from contracts with clients also includes $ 115.9 million of the $ 135.0 million total Security Commissions and Trading Income and $ 38.9 million of the $ 228.7 million total Other Operating Income.
Receivables Balances. The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2025 and 2024.
TABLE 83: CLIENT RECEIVABLES

DECEMBER 31,
(In Millions) 2025 2024
Trust Fees Receivable, net (1)
$ 956.7   $ 932.3  
Other 105.6   64.5  
Total Client Receivables $ 1,062.3   $ 996.8  

(1) Trust Fees Receivable is net of a $ 5.0 million and $ 12.0 million fee receivable allowance as of December 31, 2025 and 2024, respectively.

2025 ANNUAL REPORT | NORTHERN TRUST CORPORATION 133

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17 – Net Interest Income
The components of Net Interest Income were as follows.
TABLE 84: NET INTEREST INCOME

FOR THE YEAR ENDED DECEMBER 31,
(In Millions) 2025 2024 2023
Interest Income
Federal Reserve and Other Central Bank Deposits $ 1,463.8   $ 1,735.9   $ 1,462.3  
Interest-Bearing Due from and Deposits with Banks (1)
86.6   122.6   130.1  
Federal Funds Sold and Securities Purchased under Agreements to Resell 2,829.2   3,340.2   1,585.5  
Securities – Taxable 1,879.4   1,888.6   1,534.4  
  – Nontaxable (2)
1.0   1.1   1.3  
Loans 2,280.1   2,567.1   2,551.1  
Other Interest-Earning Assets (3)
84.5   106.8   60.3  
Total Interest Income $ 8,624.6   $ 9,762.3   $ 7,325.0  
Interest Expense
Deposits $ 2,663.9   $ 3,415.9   $ 2,685.3  
Federal Funds Purchased 94.1   129.2   256.9  
Securities Sold under Agreements to Repurchase 2,763.2   3,280.4   1,541.1  
Other Borrowings 314.0   362.7   542.5  
Senior Notes 157.5   173.5   170.0  
Long-Term Debt 220.9   223.5   147.2  

Total Interest Expense $ 6,213.6   $ 7,585.2   $ 5,343.0  
Net Interest Income $ 2,411.0   $ 2,177.1   $ 1,982.0  

(1) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
(2) Non-taxable Securities represent securities that are exempt from U.S. federal income taxes.
(3) Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets.