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10-Q – 2025-10-30 – ntrs-20250930.htm
Nonaccrual assets of $78.8 million as of September 30, 2025, were $22.8 million, or 41%, higher than December 31, 2024, primarily due to downgrades of a small number of loans across multiple segments. In addition to the negative impact on Net Interest Income and the risk of credit losses, nonaccrual assets also increase operating costs due to the expense associated with collection efforts. Changes in the level of nonaccrual assets may be indicative of changes in the credit quality of one or more loan classes. Changes in credit quality impact the allowance for credit losses through the resultant adjustment of the allowance evaluated on an individual basis and the quantitative and qualitative factors used in the determination of the allowance evaluated on a collective basis within the allowance for credit losses. Northern Trust’s credit policies do not allow for the origination of loan types generally considered to be high risk in nature, such as option adjustable rate mortgage loans, subprime loans, loans with initial “teaser” rates and loans with excessively high loan-to-value ratios. Residential real estate loans consist of first lien mortgages and equity credit lines, which generally require a loan-to-collateral value of no more than 65% to 80% at inception. Appraisals of supporting collateral for residential real estate loans are obtained at loan origination and upon refinancing or default or when otherwise considered warranted. Residential real estate collateral appraisals are performed and reviewed by independent third parties. For additional information relating to the loans portfolio, refer to Note 5—Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited). 24 ASSET QUALITY (continued) Allowance 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 exposure, 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, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. 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. As of September 30, 2025, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $164.4 million, $32.1 million, $8.7 million, and $1.5 million, respectively. As of December 31, 2024, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $168.0 million, $30.4 million, $6.5 million, and $1.0 million, respectively. There was no allowance for credit losses related to AFS debt securities as of September 30, 2025. There was a $0.2 million allowance for credit losses related to AFS debt securities as of December 31, 2024. For additional information relating to the Allowance for Credit Losses and the changes in the Allowance for Credit Losses during the three and nine months ended September 30, 2025 and September 30, 2024 due to charge-offs, recoveries and provisions for credit losses, refer to Note 6—Allowance for Credit Losses. The following table provides the allowance evaluated on an individual and collective basis for the loan portfolio by segment and class. TABLE 23: ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES FOR LOANS SEPTEMBER 30, 2025 DECEMBER 31, 2024 ($ In Millions) ALLOWANCE AMOUNT PERCENT OF LOANS TO TOTAL LOANS ALLOWANCE AMOUNT PERCENT OF LOANS TO TOTAL LOANS Evaluated on an Individual Basis $ 10.7 — % $ 3.2 — % Evaluated on a Collective Basis Commercial Commercial and Institutional 70.1 24 59.3 24 Commercial Real Estate 84.9 12 105.3 12 Non-U.S. 1.9 6 1.0 5 Other — 5 — 5 Total Commercial 156.9 47 165.6 46 Personal Private Client 13.1 37 9.7 37 Residential Real Estate 14.1 14 18.7 14 Non-U.S. 1.7 1 1.2 2 Other — 1 — 1 Total Personal 28.9 53 29.6 54 Total Allowance Evaluated on a Collective Basis $ 185.8 $ 195.2 Total Allowance for Credit Losses $ 196.5 $ 198.4 Allowance Assigned to Loans $ 164.4 $ 168.0 Undrawn Commitments and Standby Letters of Credit 32.1 30.4 Total Allowance for Credit Losses $ 196.5 $ 198.4 Allowance Assigned to Loans to Total Loans 0.38 % 0.39 % 25 ASSET QUALITY (continued) Commercial Real Estate Loans The table below provides additional detail regarding commercial real estate loan types. TABLE 24: COMMERCIAL REAL ESTATE LOANS (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Commercial Mortgages Apartment/ Multi-family $ 1,493.9 $ 1,599.9 Office 957.7 944.4 Industrial/ Warehouse 942.9 906.1 Retail 699.5 665.6 Other 631.4 630.3 Total Commercial Mortgages 4,725.4 4,746.3 Construction, Acquisition and Development Loans 530.2 567.9 Total Commercial Real Estate Loans $ 5,255.6 $ 5,314.2 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. For an overall discussion on the loan portfolio and on the allowance, refer to Note 5—Loans and Note 6—Allowance for Credit Losses to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited). STATEMENTS OF CASH FLOWS The following discusses the statement of cash flow activities for the nine months ended September 30, 2025 and 2024. TABLE 25: CASH FLOW ACTIVITY SUMMARY NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 Net cash provided by (used in): Operating activities $ 5,145.1 $ 2,148.8 Investing activities (13,098.9) (355.9) Financing activities 8,038.7 287.7 Effect of Foreign Currency Exchange Rates on Cash 584.1 (0.4) Change in Cash and Due from Banks $ 669.0 $ 2,080.2 26 STATEMENTS OF CASH FLOWS (continued) Operating Activities Net cash provided by operating activities of $5.1 billion for the nine months ended September 30, 2025 was primarily attributable to lower net collateral deposited with derivative counterparties, net changes in other operating activities, and period earnings. Net cash provided by operating activities of $2.1 billion for the nine months ended September 30, 2024 was primarily attributable to period earnings and net changes in other operating activities, partially offset by increases in receivables and pension plan contributions. Investing Activities Net cash used in investing activities of $13.1 billion for the nine months ended September 30, 2025 was primarily attributable to increased levels of Federal Reserve and other central bank deposits and net purchases of AFS debt securities. Net cash used in investing activities of $355.9 million for the nine months ended September 30, 2024 was primarily attributable to increased levels of Federal Reserve and other central bank deposits and net purchases of AFS debt securities, partially offset by the net proceeds received from the sale of certain Visa shares and net proceeds associated with loans and HTM debt securities. Financing Activities Net cash provided by financing activities of $8.0 billion for the nine months ended September 30, 2025 was primarily attributable to the increased levels of total deposits, partially offset by increased treasury share purchases. Net cash provided by financing activities of $287.7 million for the nine months ended September 30, 2024 was primarily attributable to the increased levels of total deposits, partially offset by increased treasury share repurchases and securities sold under agreements to repurchase. REGULATORY CAPITAL Capital ratios remained strong at September 30, 2025, exceeding the requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements. Northern Trust is a Category II institution as defined by the Federal Reserve Board which requires us to adhere to regulatory capital standards. In adhering to these standards, Northern Trust engages in a range of reporting and activities with regulators to affirm our financial strength and stability, including but not limited to, capital adequacy reporting that deducts any unrealized losses related to AFS securities from reported capital, and stringent, annual company-run and supervisory stress testing in the form of CCAR exercises, which confirms our ability to remain solvent under severely adverse market conditions. The results of the 2025 Dodd-Frank Act Stress Test (DFAST), published by the Federal Reserve Board on June 27, 2025, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining constant at 2.5% and 7.0%, respectively, for the annual capital plan cycle beginning on October 1, 2025 through September 30, 2026. 27 REGULATORY CAPITAL (continued) The following table provides a reconciliation of the Corporation’s common stockholders’ equity to total risk-based capital under the applicable U.S. regulatory rules as of September 30, 2025, December 31, 2024 and September 30, 2024. TABLE 26: REGULATORY CAPITAL SEPTEMBER 30, 2025 DECEMBER 31, 2024 SEPTEMBER 30, 2024 ($ In Millions) STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED APPROACH Common Equity Tier 1 Capital Common Stockholders’ Equity $ 12,071.1 $ 12,071.1 $ 11,903.5 $ 11,903.5 $ 11,864.1 $ 11,864.1 Goodwill and Other Intangible Assets, net of Deferred Tax Liability (715.9) (715.9) (699.0) (699.0) (719.2) (719.2) Other (155.9) (155.9) (166.3) (166.3) (152.2) (152.2) Total Common Equity Tier 1 Capital 11,199.3 11,199.3 11,038.2 11,038.2 10,992.7 10,992.7 Additional Tier 1 Capital Preferred Stock 884.9 884.9 884.8 884.8 884.9 884.9 Other (56.1) (56.1) (52.8) (52.8) (50.8) (50.8) Total Additional Tier 1 Capital 828.8 828.8 832.0 832.0 834.1 834.1 Total Tier 1 Capital 12,028.1 12,028.1 11,870.2 11,870.2 11,826.8 11,826.8 Tier 2 Capital Qualifying Allowance for Credit Losses 206.7 — 205.9 — 219.9 — Qualifying Subordinated Debt 1,347.1 1,347.1 1,347.1 1,347.1 1,496.2 1,496.2 Total Tier 2 Capital 1,553.8 1,347.1 1,553.0 1,347.1 1,716.1 1,496.2 Total Risk-Based Capital $ 13,581.9 $ 13,375.2 $ 13,423.2 $ 13,217.3 $ 13,542.9 $ 13,323.0 Risk-Weighted Assets (1) $ 90,033.7 $ 74,329.4 $ 88,939.7 $ 75,920.9 $ 86,953.6 $ 78,242.5 Total Assets – End of Period (EOP) 170,263.3 170,263.3 155,508.4 155,508.4 155,753.8 155,753.8 Adjusted Average Assets (2) 150,208.9 150,208.9 145,666.8 145,666.8 146,018.0 146,018.0 Total Loans – EOP 42,949.4 42,949.4 43,390.6 43,390.6 41,950.3 41,950.3 Common Stockholders’ Equity to: Total Loans – EOP 28.11 % 28.11 % 27.43 % 27.43 % 28.28 % 28.28 % Total Assets – EOP 7.09 7.09 7.65 7.65 7.62 7.62 (1) Risk-weighted assets exclude, as applicable under each regulatory approach, amounts primarily related to goodwill, certain other intangible assets, and net unrealized gains or losses on securities and reflect adjustments for excess allowances for credit losses that have been excluded from Tier 1 and Tier 2 capital, if any. (2) Adjusted average assets exclude amounts primarily related to goodwill, other intangible assets, and net unrealized gains or losses on securities. The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and The Northern Trust Company. TABLE 27: REGULATORY CAPITAL RATIOS Standardized Approach Advanced Approach September 30, 2025 December 31, 2024 September 30, 2024 September 30, 2025 December 31, 2024 September 30, 2024 WELL-CAPITALIZED RATIOS MINIMUM CAPITAL RATIOS Northern Trust Corporation Common Equity Tier 1 Capital 12.4 % 12.4 % 12.6 % 15.1 % 14.5 % 14.0 % N/A 4.5 % Tier 1 Capital 13.4 13.3 13.6 16.2 15.6 15.1 6.0 6.0 Total Capital 15.1 15.1 15.6 18.0 17.4 17.0 10.0 8.0 Tier 1 Leverage 8.0 8.1 8.1 8.0 8.1 8.1 N/A 4.0 Supplementary Leverage N/A N/A N/A 8.9 8.9 9.2 N/A 3.0 The Northern Trust Company Common Equity Tier 1 Capital 11.8 % 11.4 % 12.3 % 14.5 % 13.6 % 13.9 % 6.5 % 4.5 % Tier 1 Capital 11.8 11.4 12.3 14.5 13.6 13.9 8.0 6.0 Total Capital 13.1 12.8 14.0 15.9 15.0 15.5 10.0 8.0 Tier 1 Leverage 7.0 6.9 7.3 7.0 6.9 7.3 5.0 4.0 Supplementary Leverage N/A N/A N/A 7.7 7.5 8.2 3.0 3.0 28 RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS In December 2023, the FASB issued 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. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, although early adoption is permitted. Upon adoption, the impact of ASU 2023-09 will be limited to certain enhancements within the notes to the consolidated financial statements and therefore is not expected to have an impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03). ASU 2024-03 requires disaggregated disclosures in tabular format for specific income statement expense categories as well as a narrative disclosure about selling expenses. The amendments in ASU 2024-03 do not change or remove existing income statement presentation or disclosure requirements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. Upon adoption, the impact of ASU 2024-03 will be limited to certain enhancements within the notes to the consolidated financial statements and therefore is not expected to have an impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. In September 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (ASU 2025-06). ASU 2025-06 changes the cost capitalization threshold by removing the accounting consideration given to software project development stages and replaces it with the following criteria that must be met for entities to begin capitalizing software costs: (1) management has authorized and committed to funding the project and (2) it is ‘probable’ the project will be completed and the software used to perform its intended function (referred to as the ‘probable-to-complete’ threshold). In addition, ASU 2025-06 specifies that entities must apply the disclosure requirements in ASC 360-10, Property, Plant, and Equipment—Overall to capitalized internal-use software and related amortization, regardless of how the internal-use software is classified on the balance sheet. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, although early adoption is permitted. ASU 2025-06 is not expected to have a material impact on Northern Trust’s consolidated balance sheets or consolidated statements of income upon adoption. Other accounting pronouncements that were issued by the FASB but not yet adopted as of September 30, 2025 are not expected to have a material impact on Northern Trust’s consolidated balance sheets or consolidated statements of income upon adoption. RISK MANAGEMENT Liquidity Risk Liquidity risk is the risk of not being able to raise sufficient funds or maintain collateral to meet balance sheet and contingent liability cash flow obligations when due, because of firm-specific or market-wide stress events. Northern Trust is a Category II institution as defined by the Federal Reserve Board which requires us to adhere to the same regulatory liquidity standards as U.S. global systemically important bank holding companies (GSIBs). In adhering to these standards, Northern Trust engages in a range of reporting and other activities with regulators to affirm our financial strength and stability, including but not limited to, daily LCR and Net Stable Funding Ratio calculations to regulators. We maintain a highly liquid balance sheet consisting principally of cash and due from banks, deposits with the Federal Reserve and other central banks, short-term money market assets, and investment securities, which were 65% and 62% of total assets as of September 30, 2025 and December 31, 2024, respectively. The majority of Northern Trust’s securities portfolio is composed of highly liquid securities including U.S. Treasury, non-U.S. government, and government sponsored agency securities. Market Risk There are two types of market risk, interest rate risk associated with the banking book and trading risk. Interest rate risk associated with the banking book is the potential for movements in interest rates to cause changes in Net Interest Income and the market value of equity, including AOCI from the AFS debt securities portfolio. Trading risk is the potential for movements in market variables such as foreign exchange and interest rates to cause changes in the value of trading positions. Northern Trust uses two primary measurement techniques to manage interest rate risk: NII sensitivity and MVE sensitivity. NII sensitivity provides management with a short-term view of the impact of interest rate changes on NII. MVE sensitivity provides management with a long-term view of interest rate changes on MVE based on the period-end balance sheet. Higher interest rates may impact the fair value of AFS debt securities which in turn affects AOCI, which can impact regulatory capital ratios. As part of its risk management activities, Northern Trust also measures daily the risk of loss associated with all trading book positions using a VaR model and applying the historical simulation methodology. The following information about Northern Trust’s management of market risk should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024. 29 RISK MANAGEMENT (continued) Market Risk (continued) NII Sensitivity — The modeling of NII sensitivity incorporates on-balance-sheet positions, as well as derivative financial instruments (principally interest rate swaps) that are used to manage interest rate risk. Northern Trust uses market implied forward interest rates as the base case and measures the sensitivity (i.e., change) of a static balance sheet to changes in interest rates. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk). The NII sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate NII sensitivity given uncertainty in the assumptions. The following key assumptions are incorporated into the simulation: ▪ the balance sheet size and mix remains constant over the simulation horizon with maturing assets and liabilities replaced with instruments with similar terms as those that are maturing, with the exception of certain nonmaturity deposits that are considered short-term in nature and therefore receive a more conservative interest-bearing treatment; ▪ prepayments on mortgage loans and securities collateralized by mortgages are projected under each rate scenario using a third-party mortgage analytics system that incorporates market prepayment assumptions; ▪ cash flows for structured securities are estimated using a third-party vendor in conjunction with the prepayments provided by the third-party mortgage analytics vendor; ▪ nonmaturity deposit pricing is projected based on Northern Trust’s actual historical patterns and management judgment, depending upon the availability of historical data and current pricing strategies/or judgment; and ▪ new business rates are based on current spreads to market indices. The following table shows the estimated NII impact over the next twelve months of 100 and 200 basis point ramps upward and downward in interest rates relative to forward rates as of September 30, 2025 and September 30, 2024. Each rate movement is assumed to occur gradually over a one-year period. TABLE 28: NET INTEREST INCOME SENSITIVITY INCREASE (DECREASE) ESTIMATED IMPACT ON NEXT TWELVE MONTHS OF NET INTEREST INCOME (In Millions) SEPTEMBER 30, 2025 SEPTEMBER 30, 2024 Increase in Interest Rates Above Market Implied Forward Rates 100 Basis Points $ 68 $ 59 200 Basis Points 127 115 Decrease in Interest Rates Below Market Implied Forward Rates 100 Basis Points $ (99) $ (71) 200 Basis Points (230) $ (151) The NII sensitivity analysis does not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movement. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. NII sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided. MVE Sensitivity — MVE is defined as the present value of assets minus the present value of liabilities, net of the value of financial derivatives that are used to manage the interest rate risk of balance sheet items. The MVE looks at the whole balance sheet, which includes AFS debt securities, HTM debt securities, money market accounts, deposits, loans and wholesale borrowings. The potential effect of interest rate changes on MVE is derived from the impact of such changes on projected future cash flows and the present value of these cash flows and is then compared to the established limit. Northern Trust uses current market rates (and the future rates implied by these market rates) as the base case and measures MVE sensitivity under various rate scenarios. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk). The MVE sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate MVE sensitivity given uncertainty in the assumptions. Many of the assumptions that apply to NII sensitivity also apply to MVE sensitivity simulations, with the following separate key assumptions incorporated into the MVE simulation: ▪ the present value of nonmaturity deposits is estimated using dynamic decay methodologies or estimated remaining lives, which are based on a combination of Northern Trust’s actual historical runoff patterns and management judgment—some balances are assumed to be core and have longer lives while other balances are assumed to be temporary and have comparatively shorter lives; 30 RISK MANAGEMENT (continued) Market Risk (continued) ▪ the present values of most noninterest-bearing balances (such as receivables, equipment, and payables) are the same as their book values; and ▪ Monte Carlo simulation is used to generate forward interest rate paths. The following table shows the estimated impact on MVE of 100 and 200 basis point shocks up and down from current market implied forward rates at September 30, 2025 and December 31, 2024. Each rate movement is assumed to occur gradually over a one-year period. TABLE 29: MARKET VALUE OF EQUITY SENSITIVITY INCREASE (DECREASE) ESTIMATED IMPACT ON MARKET VALUE OF EQUITY (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Increase in Interest Rates Above Market Implied Forward Rates 100 Basis Points $ (525) $ (374) 200 Basis Points (1,155) (808) Decrease in Interest Rates Below Market Implied Forward Rates 100 Basis Points $ 620 $ 508 200 Basis Points 1,025 951 The MVE simulations do not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movements. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. MVE sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided. Value-At-Risk (VaR) — Northern Trust measures daily the risk of loss associated with trading positions using a VaR model and applying the historical simulation methodology. This statistical model provides estimates, based on high confidence levels, of the potential loss in value that might be incurred if an adverse shift in foreign exchange rates and interest rates were to occur over a small number of days. The model incorporates foreign currency and interest rate volatilities and correlations in price movements among the currencies and interest rates. VaR is computed for each trading desk and for the global portfolio. Northern Trust monitors several variations of the VaR measures to meet specific regulatory and internal management needs. Variations include different methodologies (historical simulation, Monte Carlo simulation and Taylor approximation), horizons of one day and ten days, confidence levels of 95% and 99%, subcomponent VaRs using only foreign exchange (FX) drivers, only interest rate (IR) drivers, and only volatility drivers, and look-back periods of one year, two years, and four years. Those alternative measures provide management an array of corroborating metrics and alternative perspectives on Northern Trust’s market risks. The following table presents the levels of total regulatory VaR and its subcomponents, covering global foreign exchange (GFX), foreign currency balances, and interest rate derivatives combined, in the periods indicated below, based on the historical simulation methodology, a 99% confidence level, a one-day horizon and equally weighted volatility. The total VaR is typically less than the sum of its three subcomponents due to diversification benefits derived from interactions among the three drivers. TABLE 30: VALUE-AT-RISK (In Millions) Combined Trading Book VaR FX VaR (FX DRIVERS ONLY) IR VaR (IR DRIVERS ONLY) THREE MONTHS ENDED SEPTEMBER 30, 2025 JUNE 30, 2025 SEPTEMBER 30, 2024 SEPTEMBER 30, 2025 JUNE 30, 2025 SEPTEMBER 30, 2024 SEPTEMBER 30, 2025 JUNE 30, 2025 SEPTEMBER 30, 2024 High $ 0.5 $ 0.6 $ 0.8 $ 0.5 $ 0.6 $ 1.0 $ 0.2 $ 0.3 $ 0.2 Low 0.2 0.3 0.2 0.1 0.2 0.1 0.1 0.1 0.1 Average 0.4 0.4 0.4 0.3 0.3 0.3 0.1 0.2 0.1 Quarter-End 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 During the three months ended September 30, 2025, Northern Trust did not incur an actual GFX trading loss in excess of the daily GFX VaR estimate. Foreign currency balances arise not from executing trades but rather in the course of regular business operations, namely from non-U.S.-dollar-denominated revenues and expenses accruing onto the Corporation’s balance sheet. 31 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 31: RECONCILIATION TO FULLY TAXABLE EQUIVALENT THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ($ In Millions) 2025 2024 2025 2024 Net Interest Income Interest Income - GAAP $ 2,144.3 $ 2,530.2 $ 6,498.0 $ 7,482.3 Add: FTE Adjustment 5.5 7.1 15.8 21.3 Interest Income (FTE) - Non-GAAP $ 2,149.8 $ 2,537.3 $ 6,513.8 $ 7,503.6 Net Interest Income - GAAP $ 590.8 $ 562.3 $ 1,769.4 $ 1,613.3 Add: FTE Adjustment 5.5 7.1 15.8 21.3 Net Interest Income (FTE) - Non-GAAP $ 596.3 $ 569.4 $ 1,785.2 $ 1,634.6 Net Interest Margin - GAAP 1.68 % 1.66 % 1.68 % 1.60 % Net Interest Margin (FTE) - Non-GAAP 1.70 % 1.68 % 1.69 % 1.62 % Total Revenue Total Revenue - GAAP $ 2,025.4 $ 1,968.5 $ 5,963.3 $ 6,330.8 Add: FTE Adjustment 5.5 7.1 15.8 21.3 Total Revenue (FTE) - Non-GAAP $ 2,030.9 $ 1,975.6 $ 5,979.1 $ 6,352.1 32 FORWARD-LOOKING STATEMENTS This report may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook; capital adequacy; dividend policy and share repurchase program; accounting estimates and assumptions; credit quality including allowance levels; future pension plan contributions; effective tax rate; anticipated expense levels; contingent liabilities; acquisitions; strategies; market and industry trends; and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including: • financial market disruptions or economic recession in the U.S. or other countries across the globe resulting from any of a number of factors; • volatility or changes in financial markets, including debt and equity markets, that impact the value, liquidity, or credit ratings of financial assets in general, or financial assets held in particular investment funds or client portfolios, including those funds, portfolios, and other financial assets with respect to which Northern Trust has taken, or may in the future take, actions to provide asset value stability or additional liquidity; • the impact of equity markets on fee revenue; • changes in interest rates or in the monetary or other policies of various regulatory authorities or central banks; • changes in trade policy, including the imposition of tariffs or the impacts of retaliatory tariffs; • Northern Trust’s success in controlling the costs and expenses of its business operations and the impacts of any broader inflationary environment thereon; • a decline in the value of securities held in Northern Trust’s investment portfolio, the liquidity and pricing of which may be negatively impacted by periods of economic turmoil and financial market disruptions; • Northern Trust’s ability to address operating risks, including those related to cybersecurity, data privacy and security, human errors or omissions, pricing or valuation of securities, fraud, operational resilience (including systems performance), failure to maintain sustainable business practices, and breakdowns in processes or internal controls; • Northern Trust's success in responding to and investing in changes and advancements in technology; • geopolitical risks, risks related to global climate change and the risks of extraordinary events such as pandemics, natural disasters, terrorist events and war (including the expansion or escalation of military conflict between Ukraine and the Russian Federation or the conflict in the Middle East, and tensions between the U.S. and China), and the responses of the U.S. and other countries to those events; • unexpected deposit outflows; • the effectiveness of Northern Trust’s management of its human capital, including its success in recruiting and retaining necessary and diverse personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services; • changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including Northern Trust; • changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, changes in the valuation of the U.S. dollar relative to other currencies in which Northern Trust records revenue or accrues expenses, and Northern Trust’s success in assessing and mitigating the risks arising from all such changes and volatility; • a significant downgrade of any of Northern Trust’s debt ratings; • the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business; • uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor; • increased costs of compliance and other risks associated with changes in regulation, the current regulatory environment, and areas of increased regulatory emphasis and oversight in the U.S. and other countries, such as anti-money laundering, anti-bribery, and data privacy and security; • failure to satisfy regulatory standards or to obtain regulatory approvals when required, including for the use and distribution of capital; • 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; 33 FORWARD-LOOKING STATEMENTS (continued) • 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 the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024, 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. 34 Item 1. Consolidated Financial Statements (unaudited) CONSOLIDATED BALANCE SHEET (UNAUDITED) NORTHERN TRUST CORPORATION (In Millions Except Share Information) SEPTEMBER 30, 2025 DECEMBER 31, 2024 ASSETS Cash and Due from Banks $ 5,346.2 $ 4,677.2 Federal Reserve and Other Central Bank Deposits 49,374.0 38,775.4 Interest-Bearing Deposits with Banks 1,990.0 1,944.7 Federal Funds Sold and Securities Purchased under Agreements to Resell 1,856.3 451.0 Debt Securities Available for Sale (Amortized cost of $ 32,974.3 and $ 29,229.1 ) 32,889.2 29,001.5 Held to Maturity (Fair value of $ 21,838.3 and $ 20,654.5 ) 22,974.9 22,296.7 Total Debt Securities 55,864.1 51,298.2 Loans Commercial 20,571.1 20,278.8 Personal 22,378.3 23,111.8 Total Loans (Net of unearned income of $ 5.5 and $ 6.3 ) 42,949.4 43,390.6 Allowance for Credit Losses ( 174.6 ) ( 175.5 ) Buildings and Equipment 457.1 490.3 Goodwill 712.9 694.9 Other Assets 11,887.9 13,961.6 Total Assets $ 170,263.3 $ 155,508.4 LIABILITIES Deposits Demand and Other Noninterest-Bearing $ 12,451.6 $ 14,325.6 Savings, Money Market and Other Interest-Bearing 29,040.1 26,122.6 Savings Certificates and Other Time 7,358.7 5,731.7 Non U.S. Offices — Noninterest-Bearing 13,440.8 10,027.9 — Interest-Bearing 73,509.9 66,274.9 Total Deposits 135,801.1 122,482.7 Federal Funds Purchased 1,751.9 2,159.5 Securities Sold Under Agreements to Repurchase 371.5 462.0 Other Borrowings 6,580.0 6,521.0 Senior Notes 2,847.2 2,769.7 Long-Term Debt 4,094.3 4,081.3 Other Liabilities 5,861.3 4,243.8 Total Liabilities 157,307.3 142,720.0 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 189,117,369 and 195,969,746 408.6 408.6 Additional Paid-In Capital 1,024.2 1,025.3 Retained Earnings 16,399.8 15,614.7 Accumulated Other Comprehensive Loss ( 635.1 ) ( 814.0 ) Treasury Stock ( 56,054,155 and 49,201,778 shares, at cost) ( 5,126.4 ) ( 4,331.1 ) Total Stockholders’ Equity 12,956.0 12,788.4 Total Liabilities and Stockholders’ Equity $ 170,263.3 $ 155,508.4 See accompanying notes to the consolidated financial statements. 35 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) NORTHERN TRUST CORPORATION THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions Except Share Information) 2025 2024 2025 2024 Noninterest Income Trust, Investment and Other Servicing Fees $ 1,265.5 $ 1,196.6 $ 3,710.4 $ 3,505.6 Foreign Exchange Trading Income 57.2 54.1 166.5 169.5 Treasury Management Fees 9.5 8.2 28.8 26.5 Security Commissions and Trading Income 41.8 35.5 120.5 107.7 Other Operating Income 60.6 111.8 167.7 1,097.5 Investment Security Gains (Losses), net — — — ( 189.3 ) Total Noninterest Income 1,434.6 1,406.2 4,193.9 4,717.5 Net Interest Income Interest Income 2,144.3 2,530.2 6,498.0 7,482.3 Interest Expense 1,553.5 1,967.9 4,728.6 5,869.0 Net Interest Income 590.8 562.3 1,769.4 1,613.3 Provision for Credit Losses ( 17.0 ) 8.0 0.5 7.5 Net Interest Income after Provision for Credit Losses 607.8 554.3 1,768.9 1,605.8 Noninterest Expense Compensation 625.3 583.6 1,884.5 1,875.9 Employee Benefits 115.2 109.2 342.6 310.5 Outside Services 248.2 256.3 740.4 746.5 Equipment and Software 294.2 270.4 868.8 800.6 Occupancy 55.0 53.8 160.9 162.7 Other Operating Expense 85.0 86.1 259.9 361.8 Total Noninterest Expense 1,422.9 1,359.4 4,257.1 4,258.0 Income before Income Taxes 619.5 601.1 1,705.7 2,065.3 Provision for Income Taxes 161.9 136.2 434.8 489.6 Net Income $ 457.6 $ 464.9 $ 1,270.9 $ 1,575.7 Preferred Stock Dividends 16.2 16.2 37.1 37.1 Net Income Applicable to Common Stock $ 441.4 $ 448.7 $ 1,233.8 $ 1,538.6 Per Common Share Net Income – Basic $ 2.30 $ 2.23 $ 6.34 $ 7.53 – Diluted 2.29 2.22 6.32 7.51 Average Number of Common Shares Outstanding – Basic 190,053,947 199,937,543 192,647,391 202,614,386 – Diluted 191,000,562 200,549,063 193,481,369 203,131,400 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) NORTHERN TRUST CORPORATION THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Net Income $ 457.6 $ 464.9 $ 1,270.9 $ 1,575.7 Other Comprehensive Income (Net of Tax and Reclassifications) Net Unrealized Gains on Available for Sale Debt Securities 44.3 63.9 161.2 320.7 Net Unrealized Gains (Losses) on Cash Flow Hedges — 0.3 ( 0.6 ) ( 0.5 ) Net Foreign Currency Adjustments 17.6 18.9 14.6 30.5 Net Pension and Other Postretirement Benefit Adjustments 2.2 2.4 3.7 7.7 Other Comprehensive Income 64.1 85.5 178.9 358.4 Comprehensive Income $ 521.7 $ 550.4 $ 1,449.8 $ 1,934.1 See accompanying notes to the consolidated financial statements. 36 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) NORTHERN TRUST CORPORATION NINE MONTHS ENDED SEPTEMBER 30, 2025 (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 December 31, 2024 $ 884.9 $ 408.6 $ 1,025.3 $ 15,614.7 $ ( 814.0 ) $ ( 4,331.1 ) $ 12,788.4 Net Income — — — 392.0 — — 392.0 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 74.5 — 74.5 Dividends Declared: Common Stock, $ 0.75 per share — — — ( 148.2 ) — — ( 148.2 ) Preferred Stock — — — ( 16.2 ) — — ( 16.2 ) Stock Awards and Options Exercised — — ( 28.3 ) — — 105.1 76.8 Stock Purchased — — — — — ( 287.2 ) ( 287.2 ) Excise Tax on Share Repurchases — — — — — ( 1.6 ) ( 1.6 ) Balance at March 31, 2025 $ 884.9 $ 408.6 $ 997.0 $ 15,842.3 $ ( 739.5 ) $ ( 4,514.8 ) $ 12,878.5 Net Income — — — 421.3 — — 421.3 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 40.3 — 40.3 Dividends Declared: Common Stock, $ 0.75 per share — — — ( 146.2 ) — — ( 146.2 ) Preferred Stock — — — ( 4.7 ) — — ( 4.7 ) Stock Awards and Options Exercised — — 13.5 — — 6.2 19.7 Stock Purchased — — — — — ( 339.4 ) ( 339.4 ) Excise Tax on Share Repurchases — — — — — ( 3.0 ) ( 3.0 ) Balance at June 30, 2025 $ 884.9 $ 408.6 $ 1,010.5 $ 16,112.7 $ ( 699.2 ) $ ( 4,851.0 ) $ 12,866.5 Net Income — — — 457.6 — — 457.6 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 64.1 — 64.1 Dividends Declared: Common Stock, $ 0.80 per share — — — ( 154.3 ) — — ( 154.3 ) Preferred Stock — — — ( 16.2 ) — — ( 16.2 ) Stock Awards and Options Exercised — — 13.7 — — 4.4 18.1 Stock Purchased — — — — — ( 277.0 ) ( 277.0 ) Excise Tax on Share Repurchases — — — — — ( 2.8 ) ( 2.8 ) Balance at September 30, 2025 $ 884.9 $ 408.6 $ 1,024.2 $ 16,399.8 $ ( 635.1 ) $ ( 5,126.4 ) $ 12,956.0 See accompanying notes to the consolidated financial statements. 37 NINE MONTHS ENDED SEPTEMBER 30, 2024 (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 December 31, 2023 $ 884.9 $ 408.6 $ 1,009.6 $ 14,233.8 $ ( 1,137.9 ) $ ( 3,501.1 ) $ 11,897.9 Net Income — — — 214.7 — — 214.7 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 220.3 — 220.3 Dividends Declared: Common Stock, $ 0.75 per share — — — ( 153.4 ) — — ( 153.4 ) Preferred Stock — — — ( 16.2 ) — — ( 16.2 ) Stock Awards and Options Exercised — — ( 26.1 ) — — 97.1 71.0 Stock Purchased — — — — — ( 132.0 ) ( 132.0 ) Exercise tax on Share Repurchases — — — — — ( 0.5 ) ( 0.5 ) Balance at March 31, 2024 $ 884.9 $ 408.6 $ 983.5 $ 14,278.9 $ ( 917.6 ) $ ( 3,536.5 ) $ 12,101.8 Net Income — — — 896.1 — — 896.1 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 52.6 — 52.6 Dividends Declared: Common Stock, $ 0.75 per share — — — ( 154.3 ) — — ( 154.3 ) Preferred Stock — — — ( 4.7 ) — — ( 4.7 ) Stock Awards and Options Exercised — — 13.4 — — 4.1 17.5 Stock Purchased — — — — — ( 250.8 ) ( 250.8 ) Exercise tax on Share Repurchases — — — — — ( 2.4 ) ( 2.4 ) Balance at June 30, 2024 $ 884.9 $ 408.6 $ 996.9 $ 15,016.0 $ ( 865.0 ) $ ( 3,785.6 ) $ 12,655.8 Net Income — — — 464.9 — — 464.9 Other Comprehensive Income (Net of Tax and Reclassifications) — — — — 85.5 — 85.5 Dividends Declared: Common Stock, $ 0.75 per share — — — ( 151.6 ) — — ( 151.6 ) Preferred Stock — — — ( 16.2 ) — — ( 16.2 ) Stock Awards and Options Exercised — — 11.2 — — 3.8 15.0 Stock Purchased — — — — — ( 301.4 ) ( 301.4 ) Excise Tax on Share Repurchases — — — — — ( 3.0 ) ( 3.0 ) Balance at September 30, 2024 $ 884.9 $ 408.6 $ 1,008.1 $ 15,313.1 $ ( 779.5 ) $ ( 4,086.2 ) $ 12,749.0 See accompanying notes to the consolidated financial statements. 38 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NORTHERN TRUST CORPORATION NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 1,270.9 $ 1,575.7 Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities Investment Security Losses/(Gains) — 189.3 Amortization and Accretion of Securities and Unearned Income, net ( 51.1 ) ( 24.6 ) Provision for Credit Losses 0.5 7.5 Depreciation and Amortization 582.2 533.9 Pension Plan Contributions ( 137.9 ) ( 208.0 ) Change in Receivables ( 33.2 ) ( 278.6 ) Change in Interest Payable 43.3 4.1 Change in Collateral With Derivative Counterparties, net 1,954.2 ( 7.4 ) Other Operating Activities, net 1,516.2 356.9 Net Cash Provided by Operating Activities 5,145.1 2,148.8 CASH FLOWS FROM INVESTING ACTIVITIES Change in Federal Funds Sold and Securities Purchased under Agreements to Resell ( 1,388.8 ) ( 179.6 ) Change in Interest-Bearing Deposits with Banks ( 12.9 ) 294.8 Net Change in Federal Reserve and Other Central Bank Deposits ( 9,184.9 ) ( 6,116.4 ) Purchases of Held to Maturity Debt Securities ( 24,682.8 ) ( 19,233.9 ) Proceeds from the Maturity and Redemption of Held to Maturity Debt Securities 24,852.7 23,008.3 Purchases of Available for Sale Debt Securities ( 6,899.7 ) ( 10,075.5 ) Proceeds from the Maturity and Sales of Available for Sale Debt Securities 3,525.1 5,218.9 Change in Loans 497.6 5,669.1 Purchases of Buildings and Equipment ( 41.2 ) ( 60.8 ) Purchases and Development of Computer Software ( 528.1 ) ( 458.2 ) Change in Client Security Settlement Receivables ( 255.1 ) ( 132.2 ) Proceeds from the sale of Visa Shares 11.7 794.9 Other Investing Activities, net 1,007.5 914.7 Net Cash (Used in) Investing Activities ( 13,098.9 ) ( 355.9 ) CASH FLOWS FROM FINANCING ACTIVITIES Change in Deposits 9,929.2 2,112.4 Change in Federal Funds Purchased ( 407.6 ) ( 283.5 ) Change in Securities Sold under Agreements to Repurchase ( 90.5 ) ( 613.9 ) Change in Short-Term Other Borrowings ( 6.2 ) 250.1 Treasury Stock Purchased ( 903.6 ) ( 684.2 ) Net Proceeds from Stock Options 4.5 4.3 Cash Dividends Paid on Common Stock ( 442.0 ) ( 454.7 ) Cash Dividends Paid on Preferred Stock ( 37.1 ) ( 37.1 ) Other Financing Activities, net ( 8.0 ) ( 5.7 ) Net Cash Provided by Financing Activities 8,038.7 287.7 Effect of Foreign Currency Exchange Rates on Cash 584.1 ( 0.4 ) Change in Cash and Due from Banks 669.0 2,080.2 Cash and Due from Banks at Beginning of Period 4,677.2 4,791.5 Cash and Due from Banks at End of Period $ 5,346.2 $ 6,871.7 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest Paid $ 4,672.1 $ 5,852.4 Income Taxes Paid 312.3 185.3 See accompanying notes to the consolidated financial statements. 39 Notes to Consolidated Financial Statements (unaudited) Note 1 – 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 financial statements, as of and for the periods ended September 30, 2025 and 2024, have not been audited by the Corporation’s independent registered public accounting firm. In the opinion of management, all accounting entries and adjustments, including normal recurring accruals, necessary for a fair presentation of the financial position and the results of operations for the interim periods have been made. The accounting and financial reporting policies of Northern Trust conform to U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. For a description of Northern Trust’s significant accounting policies, refer to Note 1—Summary of Significant Accounting Policies included under Item 8. Financial Statements and Supplementary Data in the Annual Report on Form 10-K for the year ended December 31, 2024. 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. Note 3 – Fair Value Measurements 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. No transfers into or out of Level 3 occurred during the nine months ended September 30, 2025 or the year ended December 31, 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 predetermined 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 September 30, 2025, Northern Trust’s AFS debt securities portfolio included 980 Level 2 debt securities with an aggregate market value of $ 24.7 billion, all 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 valued by external pricing vendors. 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. 40 Notes to Consolidated Financial Statements (unaudited) (continued) 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 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 20—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. The following table presents the fair values of Northern Trust’s Level 3 liabilities as of September 30, 2025 and December 31, 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 32: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS SEPTEMBER 30, 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 $ 18.2 million Discounted Cash Flow Conversion Rate 1.52 x 1.52 x Visa Class A Appreciation 9.13 % 9.13 % Expected Duration 11 - 24 months 14.5 months (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. 41 Notes to Consolidated Financial Statements (unaudited) (continued) The following table presents assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, segregated by fair value hierarchy level. TABLE 33: RECURRING BASIS HIERARCHY LEVELING SEPTEMBER 30, 2025 (In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/LIABILITIES AT FAIR VALUE Debt Securities Available for Sale U.S. Government $ 8,155.0 $ — $ — $ — $ 8,155.0 Obligations of States and Political Subdivisions — 310.7 — — 310.7 Government Sponsored Agency — 16,441.5 — — 16,441.5 Non-U.S. Government — 315.3 — — 315.3 Corporate Debt — 106.9 — — 106.9 Covered Bonds — 272.8 — — 272.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — 4,986.7 — — 4,986.7 Other Asset-Backed — 1,810.2 — — 1,810.2 Commercial Mortgage-Backed — 490.1 — — 490.1 Total Available for Sale Debt Securities 8,155.0 24,734.2 — — 32,889.2 Other Assets Equity Securities (1) 85.0 129.4 — — 214.4 Derivative Assets Foreign Exchange Contracts — 1,727.3 — ( 1,020.2 ) 707.1 Interest Rate Contracts — 355.8 — ( 88.0 ) 267.8 Other Financial Derivatives (2) — 0.3 — ( 0.3 ) — Total Derivative Assets — 2,083.4 — ( 1,108.5 ) 974.9 Other Liabilities Derivative Liabilities Foreign Exchange Contracts — 2,052.4 — ( 1,414.3 ) 638.1 Interest Rate Contracts — 383.7 — ( 12.4 ) 371.3 Other Financial Derivatives (3) — 0.8 18.2 ( 17.8 ) 1.2 Total Derivative Liabilities $ — $ 2,436.9 $ 18.2 $ ( 1,444.5 ) $ 1,010.6 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 September 30, 2025, derivative assets and liabilities shown above also include reductions of $ 319.6 million and $ 655.6 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,$ 112.3 million, and $ 17.1 million, respectively, as of September 30, 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. 42 Notes to Consolidated Financial Statements (unaudited) (continued) 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 Debt Securities 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) Other Financial Derivatives 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 three and nine months ended September 30, 2025 and 2024. TABLE 34: CHANGES IN LEVEL 3 LIABILITIES (In Millions) SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES THREE MONTHS ENDED SEPTEMBER 30, 2025 2024 Fair Value at July 1 $ 22.8 $ 30.6 Total Losses: Included in Earnings (1) 3.3 13.8 Purchases, Issues, Sales, and Settlements Settlements ( 7.9 ) ( 16.6 ) Fair Value at September 30 $ 18.2 $ 27.8 (1) Losses are recorded in Other Operating Income on the consolidated statements of income. (In Millions) SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES NINE MONTHS ENDED SEPTEMBER 30, 2025 2025 2024 Fair Value at January 1 $ 27.2 $ 25.4 Total Losses: Included in Earnings (1) 8.7 30.4 Purchases, Issues, Sales, and Settlements Settlements ( 17.7 ) ( 28.0 ) Fair Value at September 30 $ 18.2 $ 27.8 (1) Losses are recorded in Other Operating Income on the consolidated statements of income. 43 Notes to Consolidated Financial Statements (unaudited) (continued) 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. There were no assets measured at fair value on a nonrecurring basis during the nine months ended September 30, 2025. Assets measured at fair value on a nonrecurring basis during the year ended December 31, 2024, 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. 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, 2024, 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 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 September 30, 2025 and December 31, 2024. There were no Level 3 assets adjusted to fair value on a nonrecurring basis during the nine months ended September 30, 2025. 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, 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 35: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS 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. 44 Notes to Consolidated Financial Statements (unaudited) (continued) The following tables present 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 September 30, 2025 and December 31, 2024. The following tables exclude those items measured at fair value on a recurring basis. TABLE 36: FAIR VALUE OF FINANCIAL INSTRUMENTS SEPTEMBER 30, 2025 ESTIMATED FAIR VALUE (In Millions) BOOK VALUE TOTAL ESTIMATED FAIR VALUE LEVEL 1 LEVEL 2 LEVEL 3 FINANCIAL ASSETS Cash and Due from Banks $ 5,346.2 $ 5,346.2 $ 5,346.2 $ — $ — Federal Reserve and Other Central Bank Deposits 49,374.0 49,374.0 — 49,374.0 — Interest-Bearing Deposits with Banks 1,990.0 1,990.0 — 1,990.0 — Federal Funds Sold and Securities Purchased under Agreements to Resell 1,856.3 1,856.3 — 1,856.3 — Debt Securities - Held to Maturity 22,974.9 21,838.3 — 21,838.3 — Loans Held for Investment 42,785.0 42,626.6 — — 42,626.6 Other Assets 1,579.5 1,574.7 87.8 1,486.9 — FINANCIAL LIABILITIES Deposits 135,801.1 134,847.0 — 134,847.0 — Federal Funds Purchased 1,751.9 1,751.9 — 1,751.9 — Securities Sold Under Agreements to Repurchase 371.5 371.5 — 371.5 — Other Borrowings 6,580.0 6,602.9 — 6,602.9 — Senior Notes 2,847.2 2,895.3 — 2,895.3 — Long-Term Debt 4,094.3 4,197.6 — 4,197.6 — Unfunded Commitments 319.2 319.2 — 319.2 — Other Liabilities 47.8 47.8 — — 47.8 DECEMBER 31, 2024 ESTIMATED FAIR VALUE (In Millions) BOOK 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 45 Notes to Consolidated Financial Statements (unaudited) (continued) Note 4 – Securities The following tables provide the amortized cost, fair values, and remaining maturities of AFS debt securities and HTM debt securities by security type as of September 30, 2025 and December 31, 2024. TABLE 37: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES SEPTEMBER 30, 2025 (In Millions) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Available for Sale Debt Securities U.S. Government $ 8,147.9 $ 15.6 $ 8.5 $ 8,155.0 Obligations of States and Political Subdivisions 322.0 — 11.3 310.7 Government Sponsored Agency 16,505.3 35.6 99.4 16,441.5 Non-U.S. Government 321.9 0.7 7.3 315.3 Corporate Debt 107.7 — 0.8 106.9 Covered Bonds 274.0 0.6 1.8 272.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,989.6 23.5 26.4 4,986.7 Other Asset-Backed 1,807.0 7.7 4.5 1,810.2 Commercial Mortgage-Backed 498.9 — 8.8 490.1 Total Available for Sale Debt Securities $ 32,974.3 $ 83.7 $ 168.8 $ 32,889.2 Held to Maturity Debt Securities Obligations of States and Political Subdivisions $ 2,476.0 $ 2.6 $ 16.9 $ 2,461.7 Government Sponsored Agency 8,512.4 7.4 795.9 7,723.9 Non-U.S. Government 3,405.6 0.3 35.1 3,370.8 Corporate Debt 407.2 — 6.0 401.2 Covered Bonds 1,543.4 0.2 46.2 1,497.4 Certificates of Deposit 912.0 0.1 0.2 911.9 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 5,047.4 3.3 82.2 4,968.5 Commercial Mortgage-Backed 37.6 — 1.0 36.6 Other 633.3 — 167.0 466.3 Total Held to Maturity Debt Securities $ 22,974.9 $ 13.9 $ 1,150.5 $ 21,838.3 Total Debt Securities $ 55,949.2 $ 97.6 $ 1,319.3 $ 54,727.5 46 Notes to Consolidated Financial Statements (unaudited) (continued) DECEMBER 31, 2024 (In Millions) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE Available for Sale Debt Securities 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 Debt Securities $ 29,229.1 $ 28.8 $ 256.4 $ 29,001.5 Held to Maturity Debt Securities 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 Debt Securities $ 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 47 Notes to Consolidated Financial Statements (unaudited) (continued) TABLE 38: REMAINING MATURITY OF DEBT SECURITIES SEPTEMBER 30, 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 Debt Securities U.S. Government $ 298.8 $ 298.9 $ 7,589.1 $ 7,596.2 $ 260.0 $ 259.9 $ — $ — $ 8,147.9 $ 8,155.0 Obligations of States and Political Subdivisions — — 249.7 241.2 72.3 69.5 — — 322.0 310.7 Government Sponsored Agency 4,292.4 4,282.4 9,139.9 9,120.7 2,156.8 2,138.6 916.2 899.8 16,505.3 16,441.5 Non-U.S. Government 188.4 185.3 133.5 130.0 — — — — 321.9 315.3 Corporate Debt 86.3 85.6 21.4 21.3 — — — — 107.7 106.9 Covered Bonds 61.7 61.7 212.3 211.1 — — — — 274.0 272.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 858.3 854.0 3,829.4 3,839.2 301.9 293.5 — — 4,989.6 4,986.7 Other Asset-Backed 240.6 236.9 986.6 991.8 458.0 459.5 121.8 122.0 1,807.0 1,810.2 Commercial Mortgage-Backed 111.3 111.0 354.0 350.7 33.6 28.4 — — 498.9 490.1 Total Available for Sale Debt Securities $ 6,137.8 $ 6,115.8 $ 22,515.9 $ 22,502.2 $ 3,282.6 $ 3,249.4 $ 1,038.0 $ 1,021.8 $ 32,974.3 $ 32,889.2 Held to Maturity Debt Securities Obligations of States and Political Subdivisions $ 177.5 $ 177.3 $ 1,428.5 $ 1,427.2 $ 810.4 $ 799.1 $ 59.6 $ 58.1 $ 2,476.0 $ 2,461.7 Government Sponsored Agency 881.4 807.8 4,155.7 3,841.5 2,052.0 1,835.0 1,423.3 1,239.6 8,512.4 7,723.9 Non-U.S. Government 1,943.9 1,939.4 1,461.7 1,431.4 — — — — 3,405.6 3,370.8 Corporate Debt 144.0 143.2 263.2 258.0 — — — — 407.2 401.2 Covered Bonds 444.5 443.0 1,011.4 967.2 87.5 87.2 — — 1,543.4 1,497.4 Certificates of Deposit 912.0 911.9 — — — — — — 912.0 911.9 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,093.0 2,073.5 2,948.4 2,889.9 6.0 5.1 — — 5,047.4 4,968.5 Commercial Mortgage-Backed — — 37.6 36.6 — — — — 37.6 36.6 Other 60.4 58.9 341.2 313.4 44.5 34.9 187.2 59.1 633.3 466.3 Total Held to Maturity Debt Securities $ 6,656.7 $ 6,555.0 $ 11,647.7 $ 11,165.2 $ 3,000.4 $ 2,761.3 $ 1,670.1 $ 1,356.8 $ 22,974.9 $ 21,838.3 Total Debt Securities $ 12,794.5 $ 12,670.8 $ 34,163.6 $ 33,667.4 $ 6,283.0 $ 6,010.7 $ 2,708.1 $ 2,378.6 $ 55,949.2 $ 54,727.5 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. 48 Notes to Consolidated Financial Statements (unaudited) (continued) There was a negative provision for credit losses for AFS securities of $ 0.9 million and $ 0.2 million for the three and nine months ended September 30, 2025, respectively. There was a negative provision for credit losses of $ 0.4 million and $ 1.0 million for AFS securities for the three and nine months ended September 30, 2024, respectively. There was no allowance for credit losses for AFS securities as of September 30, 2025. There was a $ 0.2 million allowance for credit losses for AFS securities as of December 31, 2024, which was related to corporate debt securities. 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.” 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 September 30, 2025 and December 31, 2024. TABLE 39: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED SEPTEMBER 30, 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 $ 2,261.8 $ 1.6 $ 896.7 $ 6.9 $ 3,158.5 $ 8.5 Obligations of States and Political Subdivisions — — 310.7 11.3 310.7 11.3 Government Sponsored Agency 2,012.4 6.7 6,540.1 92.7 8,552.5 99.4 Non-U.S. Government — — 195.3 7.3 195.3 7.3 Corporate Debt 21.3 0.1 85.6 0.7 106.9 0.8 Covered Bonds 36.1 0.2 63.3 1.6 99.4 1.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 117.7 — 878.7 26.4 996.4 26.4 Other Asset-Backed 105.0 — 273.0 4.5 378.0 4.5 Commercial Mortgage-Backed 113.1 — 259.5 8.8 372.6 8.8 Total $ 4,667.4 $ 8.6 $ 9,502.9 $ 160.2 $ 14,170.3 $ 168.8 Note: There were no AFS securities with an allowance for credit losses reported as of September 30, 2025. Refer to the discussion further below and Note 6, “Allowance for Credit Losses” for further information. 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 security 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 below and Note 6, “Allowance for Credit Losses” for further information. As of September 30, 2025, 729 AFS debt securities with a combined fair value of $ 14.2 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $ 168.8 million. As of December 31, 2024, 767 AFS debt securities with a combined fair value of $ 17.8 billion were 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. 49 Notes to Consolidated Financial Statements (unaudited) (continued) The following table provides the amortized cost of HTM debt securities by credit ratings 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 40: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING SEPTEMBER 30, 2025 ($ In Millions) AAA AA A BBB NOT RATED TOTAL Obligations of States and Political Subdivisions $ 1,002.6 $ 1,473.4 $ — $ — $ — $ 2,476.0 Government Sponsored Agency — 8,512.4 — — — 8,512.4 Non-U.S. Government 596.1 1,196.5 1,268.7 344.3 — 3,405.6 Corporate Debt 159.4 150.5 97.3 — — 407.2 Covered Bonds 1,290.2 253.2 — — — 1,543.4 Certificates of Deposit — 861.3 — — 50.7 912.0 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 3,819.0 1,176.7 50.5 1.2 — 5,047.4 Commercial Mortgage-Backed — 37.6 — — — 37.6 Other 53.3 — — — 580.0 633.3 Total Held to Maturity $ 6,920.6 $ 13,661.6 $ 1,416.5 $ 345.5 $ 630.7 $ 22,974.9 Percent of Total Held to Maturity 30 % 59 % 6 % 2 % 3 % 100 % 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 Held to Maturity $ 15,780.9 $ 3,404.1 $ 2,208.7 $ 312.6 $ 590.4 $ 22,296.7 Percent of Total Held to Maturity 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 95 % and 96 % of the HTM portfolio at September 30, 2025 and December 31, 2024, respectively, 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 September 30, 2025 above. Investment Security Gains and Losses. There were no sales of debt securities and no net investment security gains (losses) for the three and nine months ended September 30, 2025. There were no sales of debt securities and no net investment security gains (losses) for the three months ended September 30, 2024. Proceeds of $ 2.0 billion from the sale of debt securities resulted in an investment security loss of $ 189.3 million for the nine months ended September 30, 2024. TABLE 41: INVESTMENT SECURITY GAINS AND LOSSES THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Gross Realized Debt Securities Gains $ — $ — $ — $ 185.2 Gross Realized Debt Securities Losses — — — ( 374.5 ) Investment Security Gains (Losses), net $ — $ — $ — $ ( 189.3 ) 50 Notes to Consolidated Financial Statements (unaudited) (continued) TABLE 42: INVESTMENT SECURITY GAINS AND LOSSES BY SECURITY TYPE THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 U.S. Government $ — $ — $ — $ ( 34.8 ) Obligations of States and Political Subdivisions — — — — Government Sponsored Agency — — — ( 23.0 ) Corporate Debt — — — — Covered Bonds — — — ( 4.2 ) Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — — — ( 48.2 ) Other Asset-Backed — — — ( 56.5 ) Commercial Mortgage-Backed — — — ( 22.6 ) Investment Security Gains (Losses), net $ — $ — $ — $ ( 189.3 ) Note 5 – Loans Amounts outstanding for Loans, by segment and class, are shown in the following table. TABLE 43: LOANS (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Commercial Commercial and Institutional (1) $ 10,243.5 $ 10,537.1 Commercial Real Estate 5,255.6 5,314.2 Non-U.S. (1) 2,789.5 2,113.9 Other 2,282.5 2,313.6 Total Commercial 20,571.1 20,278.8 Personal Private Client 15,290.9 15,848.8 Residential Real Estate 6,045.6 6,109.9 Non-U.S. 502.3 674.7 Other 539.5 478.4 Total Personal 22,378.3 23,111.8 Total Loans $ 42,949.4 $ 43,390.6 (1) Commercial and Institutional and Commercial Non-U.S. combined include $ 3.9 billion and $ 4.1 billion of private equity capital call finance loans at September 30, 2025 and December 31, 2024, respectively. Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value of no more than 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 due at maturity. Payments are interest-only with variable interest rates. In general, Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of September 30, 2025 and December 31, 2024, equity credit lines totaled $ 266.8 million and $ 250.3 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 98 % and 97 % of the total equity credit lines, 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 $ 4.7 billion and $ 3.8 billion at September 30, 2025 and December 31, 2024, respectively. Demand deposit overdrafts reclassified as loan balances in other personal, totaled $ 7.4 million and $ 47.6 million as of September 30, 2025 and December 31, 2024, respectively. Loans classified as held for sale are recorded at the lower of cost or fair value. There were no loans classified as held for sale as of September 30, 2025 and December 31, 2024. Loans sold for the three and nine months ended September 30, 2025 totaled $ 3.1 million. There were no loans sold for the three and nine months ended September 30, 2024. 51 Notes to Consolidated Financial Statements (unaudited) (continued) 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. 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, 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 ratings models, by loan class. • Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels; • Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support; • Other Commercial: leverage, profit margin, liquidity, asset size and capital levels; • Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels; • Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio; • Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and • Other Personal: cash-flow-to-debt and net worth ratios. 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. Loan segment and class balances as of September 30, 2025 and December 31, 2024 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list, defaulted, 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. 52 Notes to Consolidated Financial Statements (unaudited) (continued) TABLE 44: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR September 30, 2025 TERM LOANS REVOLVING LOANS REVOLVING LOANS CONVERTED TO TERM LOANS (In Millions) 2025 2024 2023 2022 2021 PRIOR TOTAL Commercial Commercial and Institutional Risk Rating: 1 to 3 Category $ 216.6 $ 374.1 $ 164.2 $ 285.1 $ 147.1 $ 247.9 $ 4,498.6 $ 67.9 $ 6,001.5 4 to 5 Category 399.0 745.9 433.1 294.2 241.4 138.8 1,656.8 41.0 3,950.2 6 to 9 Category 88.8 20.3 39.5 49.1 15.0 7.7 61.0 10.4 291.8 Total Commercial and Institutional 704.4 1,140.3 636.8 628.4 403.5 394.4 6,216.4 119.3 10,243.5 C&I Gross Charge-offs — — — — — ( 0.2 ) — — ( 0.2 ) Commercial Real Estate Risk Rating: 1 to 3 Category 92.3 135.4 51.6 118.2 139.2 26.8 25.0 — 588.5 4 to 5 Category 560.7 689.3 1,507.6 871.0 448.3 230.8 219.4 15.9 4,543.0 6 to 9 Category 68.4 — 6.8 38.9 6.0 4.0 — — 124.1 Total Commercial Real Estate 721.4 824.7 1,566.0 1,028.1 593.5 261.6 244.4 15.9 5,255.6 CRE Gross Charge-offs — — — ( 2.1 ) — — — — ( 2.1 ) Non-U.S. Risk Rating: 1 to 3 Category 968.5 131.7 31.2 — — 168.7 295.5 — 1,595.6 4 to 5 Category 839.0 8.6 — 0.8 — 197.1 116.8 — 1,162.3 6 to 9 Category 0.5 — — 13.0 — — 18.1 — 31.6 Total Non-U.S. 1,808.0 140.3 31.2 13.8 — 365.8 430.4 — 2,789.5 Other Risk Rating: 1 to 3 Category 1,356.3 — — — — — — — 1,356.3 4 to 5 Category 925.8 — — — — — — — 925.8 6 to 9 Category 0.4 — — — — — — — 0.4 Total Other 2,282.5 — — — — — — — 2,282.5 Total Commercial 5,516.3 2,105.3 2,234.0 1,670.3 997.0 1,021.8 6,891.2 135.2 20,571.1 Commercial Gross Charge-offs — — — ( 2.1 ) — ( 0.2 ) — — ( 2.3 ) Personal Private Client Risk Rating: 1 to 3 Category 126.2 96.1 109.9 113.1 49.9 25.2 6,777.5 137.9 7,435.8 4 to 5 Category 156.2 635.9 192.9 273.0 156.7 193.8 5,782.9 441.1 7,832.5 6 to 9 Category — — 15.4 — — — 7.2 — 22.6 Total Private Client 282.4 732.0 318.2 386.1 206.6 219.0 12,567.6 579.0 15,290.9 Private Client Gross Charge-offs — — — — — ( 0.1 ) — — ( 0.1 ) Residential Real Estate Risk Rating: 1 to 3 Category 243.6 164.3 140.3 394.1 385.8 993.6 190.0 — 2,511.7 4 to 5 Category 180.7 248.5 249.1 579.1 632.5 1,389.3 184.9 1.9 3,466.0 6 to 9 Category — — — 6.6 8.3 31.5 15.8 5.7 67.9 Total Residential Real Estate 424.3 412.8 389.4 979.8 1,026.6 2,414.4 390.7 7.6 6,045.6 Residential Real Estate Gross Charge-offs — — — — — ( 0.1 ) — — ( 0.1 ) Non-U.S. Risk Rating: 1 to 3 Category 2.6 — — — 0.6 11.6 109.2 — 124.0 4 to 5 Category 23.9 14.6 12.8 8.9 22.8 10.9 263.2 7.5 364.6 6 to 9 Category — 7.6 — 6.0 — 0.1 — — 13.7 Total Non-U.S. 26.5 22.2 12.8 14.9 23.4 22.6 372.4 7.5 502.3 Other Risk Rating: 1 to 3 Category 281.8 — — — — — — — 281.8 4 to 5 Category 257.7 — — — — — — — 257.7 6 to 9 Category — — — — — — — — — Total Other 539.5 — — — — — — — 539.5 Total Personal 1,272.7 1,167.0 720.4 1,380.8 1,256.6 2,656.0 13,330.7 594.1 22,378.3 Personal Gross Charge-offs — — — — — ( 0.2 ) — — ( 0.2 ) Total Loans $ 6,789.0 $ 3,272.3 $ 2,954.4 $ 3,051.1 $ 2,253.6 $ 3,677.8 $ 20,221.9 $ 729.3 $ 42,949.4 Total Loans Gross Charge-offs $ — $ — $ — $ ( 2.1 ) $ — $ ( 0.4 ) $ — $ — $ ( 2.5 ) 53 Notes to Consolidated Financial Statements (unaudited) (continued) 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 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 Commercial and Institutional 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 ) Commercial Real Estate 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 Commercial Real Estate 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 Other Gross Charge-offs — — — — — — — — — 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 Residential Real Estate (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 Residential Real Estate 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 ) 54 Notes to Consolidated Financial Statements (unaudited) (continued) 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 well as nonaccrual asset balances, as of September 30, 2025 and December 31, 2024. TABLE 45: 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 September 30, 2025 Commercial Commercial and Institutional $ 10,178.4 $ 18.9 $ 3.7 $ — $ 10,201.0 $ 42.5 $ 10,243.5 $ 20.3 Commercial Real Estate 5,227.9 3.3 19.1 5.3 5,255.6 — 5,255.6 — Non-U.S. 2,789.0 — — — 2,789.0 0.5 2,789.5 — Other 2,282.5 — — — 2,282.5 — 2,282.5 — Total Commercial 20,477.8 22.2 22.8 5.3 20,528.1 43.0 20,571.1 20.3 Personal Private Client 15,208.9 48.6 22.4 4.1 15,284.0 6.9 15,290.9 0.2 Residential Real Estate 5,986.8 13.7 15.1 1.1 6,016.7 28.9 6,045.6 27.1 Non-U.S. 487.8 1.9 9.0 3.6 502.3 — 502.3 — Other 539.5 — — — 539.5 — 539.5 — Total Personal 22,223.0 64.2 46.5 8.8 22,342.5 35.8 22,378.3 27.3 Total Loans $ 42,700.8 $ 86.4 $ 69.3 $ 14.1 $ 42,870.6 $ 78.8 $ 42,949.4 $ 47.6 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 $ 1.2 million and $ 3.1 million for the three and nine months ended September 30, 2025, respectively, and $ 0.5 million and $ 1.7 million for the three and nine months ended September 30, 2024, respectively. Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of September 30, 2025 and December 31, 2024, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. Northern Trust had loans with a carrying value of $ 3.4 million and $ 3.5 million for which formal foreclosure proceedings were in process as of September 30, 2025 and December 31, 2024, respectively. 55 Notes to Consolidated Financial Statements (unaudited) (continued) 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 extensions of term, deferrals of principal and interest, and interest rate concessions, or a combination thereof. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms. Loan modifications to borrowers experiencing financial difficulty involved deferral of principal and interest and totaled $ 11.4 million and $ 44.1 million for the three and nine months ended September 30, 2025, respectively. Loan modifications were immaterial for the three and nine months ended September 30, 2024. 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 September 30, 2025, loans that were modified in the previous 12 months and 30-89 days past due totaled $ 18.4 million. There were no loan modifications past due 90 days or more. As of September 30, 2024, loans that were modified in the previous 12 months and 90 days or more past due totaled less than $ 1.0 million. There were no loan modifications past due 30-89 days. For the three and nine months ended September 30, 2025, Northern Trust charged off $ 2.0 million and $ 2.1 million, respectively, related to modifications to borrowers experiencing financial difficulty that had been modified in the last 12 months, compared to no charge-offs and $ 8.5 million, respectively, for the same periods in 2024. There were no undrawn loan commitments or standby letters of credit issued to financially distressed borrowers for which Northern Trust has modified the payment terms of the loans as of September 30, 2025 and December 31, 2024. 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. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, GDP, unemployment rate, consumer spending, and real estate price indices, as well as financial market factors such as equity prices, volatility and credit spreads. 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. The primary forecast in the current quarter reflects an outlook of steady growth, falling interest rates, and continued slightly higher unemployment. 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, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework. As of September 30, 2025, qualitative adjustments primarily reflected macroeconomic uncertainty affecting Northern Trust's C&I portfolio, the potential for higher-than-anticipated losses on large individual exposures, and the possible impact of climate-related risks on CRE property values. 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 September 30, 2025, relative to December 31, 2024, primarily due to an improved outlook for the CRE portfolio and to climate-related risk projections on RRE in certain locations. These improvements were partially offset by the introduction of a stress-related adjustment to the C&I portfolio in the first quarter of 2025. 56 Notes to Consolidated Financial Statements (unaudited) (continued) 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. The 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 and the amount of the Provision for Credit Losses may be either greater or less than actual net charge-offs. The following table provides information regarding changes in the total Allowance for Credit Losses during the three and nine months ended September 30, 2025 and 2024. TABLE 46: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES THREE MONTHS ENDED SEPTEMBER 30, 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 $ 180.5 $ 34.7 $ 6.9 $ 1.1 $ 223.2 Charge-Offs ( 2.1 ) — — — ( 2.1 ) Recoveries 1.7 — — — 1.7 Net Recoveries (Charge-Offs) ( 0.4 ) — — — ( 0.4 ) Provision for Credit Losses (1) ( 15.7 ) ( 2.6 ) 1.8 0.4 ( 16.1 ) Balance at End of Period $ 164.4 $ 32.1 $ 8.7 $ 1.5 $ 206.7 (1) The table excludes a negative provision for credit losses of $ 0.9 million for the three months ended September 30, 2025 for AFS debt securities. See further detail in Note 4—Securities. NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Millions) LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT DEBT SECURITIES HELD TO MATURITY OTHER FINANCIAL ASSETS TOTAL Balance at Beginning of Period $ 168.0 $ 30.4 $ 6.5 $ 1.0 $ 205.9 Charge-Offs ( 2.5 ) — — — ( 2.5 ) Recoveries 2.6 — — — 2.6 Net Recoveries (Charge-Offs) 0.1 — — — 0.1 Provision for Credit Losses (1) ( 3.7 ) 1.7 2.2 0.5 0.7 Balance at End of Period $ 164.4 $ 32.1 $ 8.7 $ 1.5 $ 206.7 (1) The table excludes a negative provision for credit losses of $ 0.2 million for the nine months ended September 30, 2025 for AFS debt securities. See further detail in Note 4—Securitie s. THREE MONTHS ENDED SEPTEMBER 30, 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 $ 167.7 $ 29.5 $ 10.9 $ 0.9 $ 209.0 Charge-Offs — — — — — Recoveries 2.4 — — — 2.4 Net Recoveries (Charge-Offs) 2.4 — — — 2.4 Provision for Credit Losses (1) 14.7 ( 3.0 ) ( 3.4 ) 0.1 8.4 Balance at End of Period $ 184.8 $ 26.5 $ 7.5 $ 1.0 $ 219.8 (1) The table excludes a negative provision for credit losses of $ 0.4 million for the three months ended September 30, 2024 for AFS debt securities. See further detail in Note 4—Securitie s. 57 Notes to Consolidated Financial Statements (unaudited) (continued) NINE MONTHS ENDED SEPTEMBER 30, 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 ( 11.4 ) — — — ( 11.4 ) Recoveries 3.5 — — — 3.5 Net Recoveries (Charge-Offs) ( 7.9 ) — — — ( 7.9 ) Provision for Credit Losses (1) 14.0 ( 0.4 ) ( 5.2 ) 0.1 8.5 Balance at End of Period $ 184.8 $ 26.5 $ 7.5 $ 1.0 $ 219.8 (1) The table excludes a negative provision for credit losses of $ 1.0 million for the nine months ended September 30, 2024 for AFS debt securities. See further detail in Note 4—Securitie s. For the three months ended September 30, 2025, there was a negative Provision for Credit Losses of $ 16.1 million as compared to a provision of $ 8.4 million in the prior-year quarter, both excluding the provision for AFS debt securities. The negative provision in the current quarter resulted from a decrease in collective reserves driven by improved macroeconomic factors primarily impacting the C&I portfolio and improved projections for RRE. There was a Provision for Credit Losses of $ 0.7 million and $ 8.5 million for the nine months ended September 30, 2025 and 2024, respectively, both excluding the provision for AFS debt securities. The provision in the current-year period was primarily due to an increase in specific reserves related to a small number of non-performing loans; partially offset by a decrease in the collective reserve driven by an improved outlook for the CRE portfolio. 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. For credit exposure and the associated allowance related to fee receivables, please refer to Note 13—Revenue from Contracts with Clients. For information related to the allowance for AFS debt securities, please refer to Note 4—Securities. Allowance for the Loan Portfolio. The following table provides information regarding changes in the Allowance for Credit Losses related to loans, including undrawn loan commitments and standby letters of credit, by segment during the three and nine months ended September 30, 2025 and 2024. TABLE 47: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS THREE MONTHS ENDED SEPTEMBER 30, 2025 LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT (In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL Balance at Beginning of Period $ 145.8 $ 34.7 $ 180.5 $ 32.5 $ 2.2 $ 34.7 Charge-Offs ( 2.0 ) ( 0.1 ) ( 2.1 ) — — — Recoveries 1.3 0.4 1.7 — — — Net Recoveries (Charge-Offs) ( 0.7 ) 0.3 ( 0.4 ) — — — Provision for Credit Losses ( 11.2 ) ( 4.5 ) ( 15.7 ) ( 2.6 ) — ( 2.6 ) Balance at End of Period $ 133.9 $ 30.5 $ 164.4 $ 29.9 $ 2.2 $ 32.1 NINE MONTHS ENDED SEPTEMBER 30, 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 ( 2.3 ) ( 0.2 ) ( 2.5 ) — — — Recoveries 1.4 1.2 2.6 — — — Net Recoveries (Charge-Offs) ( 0.9 ) 1.0 0.1 — — — Provision for Credit Losses ( 3.7 ) — ( 3.7 ) 1.6 0.1 1.7 Balance at End of Period $ 133.9 $ 30.5 $ 164.4 $ 29.9 $ 2.2 $ 32.1 58 Notes to Consolidated Financial Statements (unaudited) (continued) THREE MONTHS ENDED SEPTEMBER 30, 2024 LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT (In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL Balance at Beginning of Period $ 136.9 $ 30.8 $ 167.7 $ 27.2 $ 2.3 $ 29.5 Charge-Offs — — — — — — Recoveries — 2.4 2.4 — — — Net Recoveries (Charge-Offs) — 2.4 2.4 — — — Provision for Credit Losses 15.7 ( 1.0 ) 14.7 ( 2.7 ) ( 0.3 ) ( 3.0 ) Balance at End of Period $ 152.6 $ 32.2 $ 184.8 $ 24.5 $ 2.0 $ 26.5 NINE MONTHS ENDED SEPTEMBER 30, 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 ( 11.0 ) ( 0.4 ) ( 11.4 ) — — — Recoveries — 3.5 3.5 — — — Net Recoveries (Charge-Offs) ( 11.0 ) 3.1 ( 7.9 ) — — — Provision for Credit Losses 16.8 ( 2.8 ) 14.0 ( 0.4 ) — ( 0.4 ) Balance at End of Period $ 152.6 $ 32.2 $ 184.8 $ 24.5 $ 2.0 $ 26.5 Allowance Related to Credit Exposure Evaluated on a Collective Basis. Expected credit losses are measured on a collective basis as long as the financial assets included in the respective pool share similar risk characteristics. If financial assets are deemed to not share similar risk characteristics, an individual assessment is warranted. 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. 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. Allowance Related to Credit Exposure Evaluated on an Individual Basis. The individual allowance 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 borrower’s ability to pay. For defaulted loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate 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. 59 Notes to Consolidated Financial Statements (unaudited) (continued) 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 September 30, 2025 and December 31, 2024. TABLE 48: RECORDED INVESTMENTS IN LOANS SEPTEMBER 30, 2025 DECEMBER 31, 2024 (In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL Loans Evaluated on an Individual Basis $ 52.8 $ 47.3 $ 100.1 $ 35.9 $ 30.0 $ 65.9 Evaluated on a Collective Basis 20,518.3 22,331.0 42,849.3 20,242.9 23,081.8 43,324.7 Total Loans 20,571.1 22,378.3 42,949.4 20,278.8 23,111.8 43,390.6 Allowance for Credit Losses on Loans Evaluated on an Individual Basis 6.9 3.8 10.7 1.2 2.0 3.2 Evaluated on a Collective Basis 127.0 26.7 153.7 137.3 27.5 164.8 Allowance Assigned to Loans 133.9 30.5 164.4 138.5 29.5 168.0 Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit - Evaluated on a Collective Basis 29.9 2.2 32.1 28.3 2.1 30.4 Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit $ 163.8 $ 32.7 $ 196.5 $ 166.8 $ 31.6 $ 198.4 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 an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses. Allowance for Held to Maturity Debt Securities Portfolio. The following table provides information regarding changes in the allowance for credit losses for HTM debt securities during the three and nine months ended September 30, 2025 and 2024. TABLE 49: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES THREE MONTHS ENDED SEPTEMBER 30, 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 $ 2.2 $ 1.2 $ 0.9 $ — $ 2.3 $ 6.9 Provision for Credit Losses 0.1 1.3 0.4 0.1 — ( 0.1 ) 1.8 Balance at End of Period $ 0.4 $ 3.5 $ 1.6 $ 1.0 $ — $ 2.2 $ 8.7 (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. NINE MONTHS ENDED SEPTEMBER 30, 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 0.1 1.5 0.5 0.1 — — 2.2 Balance at End of Period $ 0.4 $ 3.5 $ 1.6 $ 1.0 $ — $ 2.2 $ 8.7 (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. THREE MONTHS ENDED SEPTEMBER 30, 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 $ 0.5 $ 2.6 $ 1.7 $ 1.0 $ 0.1 $ 5.0 $ 10.9 Provision for Credit Losses — ( 0.1 ) ( 0.1 ) — ( 0.1 ) ( 3.1 ) ( 3.4 ) Balance at End of Period $ 0.5 $ 2.5 $ 1.6 $ 1.0 $ — $ 1.9 $ 7.5 (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. 60 Notes to Consolidated Financial Statements (unaudited) (continued) NINE MONTHS ENDED SEPTEMBER 30, 2024 (In Millions) CORPORATE DEBT NON-U.S. GOVERNMENT SUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS 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 ( 0.4 ) ( 1.0 ) ( 0.6 ) ( 0.2 ) ( 0.1 ) ( 2.9 ) ( 5.2 ) Balance at End of Period $ 0.5 $ 2.5 $ 1.6 $ 1.0 $ — $ 1.9 $ 7.5 (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. 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” 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 internal 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 the PD and the LGD are applied to the total exposure at default to determine the quantitative component of the allowance. 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 Allowance for Credit Losses related to Other Financial Assets was $ 1.5 million and $ 1.0 million as of September 30, 2025 and December 31, 2024, respectively. 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 loan and securities portfolio 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 50: ACCRUED INTEREST (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Loans $ 197.0 $ 211.7 Debt Securities Held to Maturity 81.9 58.9 Available for Sale 186.9 173.9 Other Financial Assets 56.1 53.1 Total $ 521.9 $ 497.6 The amount of accrued interest reversed through interest income for loans was immaterial for the three and nine months ended September 30, 2025 and 2024, and there was no accrued interest reversed through interest income related to any other financial assets for the three and nine months ended September 30, 2025 and 2024. 61 Notes to Consolidated Financial Statements (unaudited) (continued) Note 7 – Pledged Assets, Accepted Collateral and Restricted Assets Pledged Assets . As part of its liquidity management strategy, Northern Trust may pledge loans and/or securities to various financial market utilities to allow for client payment, clearing and settlement processing as part of our custody services. Northern Trust may also pledge loans or securities to Central Banks, Federal Home Loan Bank (FHLB) of Chicago and third parties for various purposes, for example: securing public and trust deposits, repurchase agreements, borrowings and derivative contracts. The following table presents the carrying value of Northern Trust's pledged assets by type. TABLE 51: TYPE OF PLEDGED ASSETS (In Billions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Debt Securities (1) $ 34.5 $ 29.3 Loans (2) 9.4 9.5 Total Pledged Assets $ 43.9 $ 38.8 (1) Debt securities are comprised of HTM and AFS securities. (2) Loans pledged at the FHLB of Chicago and the Federal Reserve Bank of Chicago. As of both September 30, 2025 and December 31, 2024, $ 1.2 billion of collateral pledged, related to loans and/or securities, is eligible to be repledged or sold by the secured party. Accepted Collateral. Northern Trust accepts financial assets as collateral that it may, in some instances, be permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts. The following table presents the fair value of securities accepted as collateral. TABLE 52: ACCEPTED COLLATERAL (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Collateral that may be repledged or sold Reverse repurchase agreements (1)(2) $ 65,391.9 $ 65,311.1 Derivative contracts 2.9 23.6 Collateral that may not be repledged or sold Reverse repurchase agreements — — Total Collateral Accepted $ 65,394.8 $ 65,334.7 (1) The fair value of securities collateral that was repledged or sold totaled $ 65.0 billion and $ 64.8 billion at September 30, 2025 and December 31, 2024, respectively. (2) This includes collateral accepted as related to the FICC sponsored member program. Refer to Note 20—Commitments and Contingent Liabilities for further information. Restricted Assets . Certain cash may be restricted in terms of usage or withdrawal. As a result of the continuing military conflict involving Ukraine and the Russian Federation and related sanctions and legal restrictions in place, cash balances denominated in Russian rubles received for the benefit of certain clients in our Asset Servicing business are subject to distribution restrictions. As of September 30, 2025 and December 31, 2024, these balances totaled $ 1.5 billion and $ 1.1 billion, respectively, and are reported in Cash and Due from Banks on the consolidated balance sheets. At September 30, 2025 and December 31, 2024, Northern Trust held cash of $ 520.0 million and $ 491.2 million, respectively, to meet non-U.S. reserve requirements. The Federal Reserve’s U.S. reserve requirement is zero percent. As a result, there were no average deposits required to meet Federal Reserve Bank reserve requirements for the three and nine months ended September 30, 2025 and 2024, respectively. Note 8 – Goodwill and Other Intangibles Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the nine months ended September 30, 2025, including the effect of foreign exchange rates on non-U.S. dollar denominated balances, were as follows. TABLE 53: GOODWILL (In Millions) ASSET SERVICING WEALTH MANAGEMENT TOTAL Balance at December 31, 2024 $ 614.6 $ 80.3 $ 694.9 Foreign Exchange Rates 17.9 0.1 18.0 Balance at September 30, 2025 $ 632.5 $ 80.4 $ 712.9 62 Notes to Consolidated Financial Statements (unaudited) (continued) Other Intangible Assets Subject to Amortization . The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of September 30, 2025 and December 31, 2024 were as follows. TABLE 54: OTHER INTANGIBLE ASSSETS SUBJECT TO AMORTIZATION (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Gross Carrying Amount $ 136.8 $ 127.0 Less: Accumulated Amortization 77.9 68.9 Net Book Value $ 58.9 $ 58.1 TABLE 55: CHANGES IN OTHER INTANGIBLE ASSETS THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Balance at Beginning of Period $ 61.2 $ 64.4 $ 58.1 $ 71.6 Amortization ( 2.4 ) ( 2.4 ) ( 6.8 ) ( 7.1 ) Foreign Exchange Rates 0.1 2.9 7.6 0.4 Balance as of September 30 $ 58.9 $ 64.9 $ 58.9 $ 64.9 Amortization for the remainder of 2025 and for the years 2026, 2027, 2028, and 2029 is estimated to be $ 2.4 million, $ 9.1 million, $ 8.8 million, $ 8.1 million, and $ 8.1 million, respectively. Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of September 30, 2025 and December 31, 2024 were as follows. TABLE 56: CAPITALIZED SOFTWARE (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Gross Carrying Amount $ 4,934.0 $ 4,259.6 Less: Accumulated Amortization 2,582.1 2,104.5 Net Book Value $ 2,351.9 $ 2,155.1 Capitalized software, which is included in Other Assets on the consolidated balance sheets, consists primarily of cost 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 $ 168.8 million and $ 499.7 million for the three and nine months ended September 30, 2025, respectively, and $ 153.1 million and $ 444.1 million for the three and nine months ended September 30, 2024, respectively . Note 9 – Reporting Segments Northern Trust is organized around 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. The revenue and expenses of Asset Management and certain other support functions are allocated fully to Asset Servicing and Wealth Management. Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing an FTP methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income. Revenues, expenses and average assets are allocated to Asset Servicing and Wealth Management, with the exception of non-recurring activities such as certain corporate transactions and costs incurred associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment, which are reported within Other. 63 Notes to Consolidated Financial Statements (unaudited) (continued) In addition to income and expenses associated with non-recurring activities, Other includes expenses for Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $ 5.5 million and $ 15.8 million for the three and nine months ended September 30, 2025 respectively, and $ 7.1 million and $ 21.3 million for the three and nine months ended September 30, 2024, respectively, in order to reconcile the segment results that are reported on an internal management-reporting basis into consolidated results. Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a retrospective basis unless it is impractical to do so. Effective January 2025, certain operations support activities were moved out of Asset Servicing and Wealth Management in connection with the formation of the Enterprise Chief Operating Office. The Enterprise Chief Operating Office provides operational support to Asset Servicing and Wealth Management. Its expenses are included within Other and are fully allocated to Asset Servicing and Wealth Management. Prior-year segment results have been recast, where practical, to reflect the organizational changes. Northern Trust’s Chief Operating Decision Maker is the Chief Executive Officer. The Chief Operating Decision Maker uses growth and profitability metrics to assess segments’ performance including segment revenue and income before income taxes. Those same measures are used by the Chief Operating Decision Maker as primary inputs into the allocation of resources in the annual planning process. Allocation of capital to each segment takes into consideration a variety of factors including average loans, average deposits and applicable regulatory capital requirements. The following table presents the earnings contributions and certain average balances of Northern Trust’s reporting segments for the three- and nine-month periods ended September 30, 2025 and 2024. TABLE 57: RESULTS OF REPORTING SEGMENTS ($ In Millions) ASSET SERVICING WEALTH MANAGEMENT OTHER (3) TOTAL CONSOLIDATED THREE MONTHS ENDED SEPTEMBER 30, 2025 2024 2025 2024 2025 2024 2025 2024 Noninterest Income Trust, Investment and Other Servicing Fees $ 706.9 $ 667.1 $ 558.6 $ 529.5 $ — $ — $ 1,265.5 $ 1,196.6 Foreign Exchange Trading Income (Loss) 65.5 59.5 ( 8.3 ) ( 5.4 ) — — 57.2 54.1 Other Noninterest Income (Expense) 77.0 66.7 38.9 35.5 ( 4.0 ) 53.3 111.9 155.5 Total Noninterest Income (Expense) 849.4 793.3 589.2 559.6 ( 4.0 ) 53.3 1,434.6 1,406.2 Net Interest Income (Expense) (1) 339.9 320.9 257.2 248.8 ( 6.3 ) ( 7.4 ) 590.8 562.3 Revenue (1) 1,189.3 1,114.2 846.4 808.4 ( 10.3 ) 45.9 2,025.4 1,968.5 Provision for Credit Losses ( 6.1 ) ( 0.6 ) ( 12.3 ) 12.4 1.4 ( 3.8 ) ( 17.0 ) 8.0 Noninterest Expense Compensation 78.8 90.3 143.3 138.7 403.2 354.6 625.3 583.6 Employee Benefits 16.8 18.2 22.5 23.5 75.9 67.5 115.2 109.2 Outside Services 24.0 43.6 14.0 11.6 210.2 201.1 248.2 256.3 Allocated Expense 763.6 682.7 315.3 297.1 ( 1,078.9 ) ( 979.8 ) — — Other Segment Items (2) 18.1 21.6 21.2 18.0 394.9 370.7 434.2 410.3 Total Noninterest Expense 901.3 856.4 516.3 488.9 5.3 14.1 1,422.9 1,359.4 Income (Loss) before Income Taxes (1) 294.1 258.4 342.4 307.1 ( 17.0 ) 35.6 619.5 601.1 Provision for Income Taxes (1) 64.3 56.7 83.7 76.8 13.9 2.7 161.9 136.2 Net Income (Loss) $ 229.8 $ 201.7 $ 258.7 $ 230.3 $ ( 30.9 ) $ 32.9 $ 457.6 $ 464.9 Percentage of Consolidated Net Income 50 % 43 % 57 % 50 % ( 7 ) % 7 % 100 % 100 % Average Assets $ 110,056.4 $ 107,362.3 $ 39,850.2 $ 38,734.9 $ 1,134.9 $ 745.7 $ 151,041.5 $ 146,842.9 Average Loans $ 5,399.9 $ 5,615.8 $ 36,100.7 $ 34,268.2 $ — $ — $ 41,500.6 $ 39,884.0 Average Deposits $ 90,195.3 $ 86,635.7 $ 25,370.4 $ 25,179.3 $ 1,134.9 $ 745.7 $ 116,700.6 $ 112,560.7 (1) Financial measures stated on an FTE basis. The FTE adjustment was $ 5.5 million and $ 7.1 million for three months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income. (2) Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense. (3) Prior-year quarter includes the gain related to the sale of an equity investment. 64 Notes to Consolidated Financial Statements (unaudited) (continued) (In Millions) ASSET SERVICING (3) WEALTH MANAGEMENT (3) OTHER (4) TOTAL CONSOLIDATED NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 2025 2024 2025 2024 2025 2024 Noninterest Income Trust, Investment and Other Servicing Fees $ 2,070.6 $ 1,957.3 $ 1,639.8 $ 1,548.3 $ — $ — $ 3,710.4 $ 3,505.6 Foreign Exchange Trading Income (Loss) 190.4 181.6 ( 23.9 ) ( 12.1 ) — — 166.5 169.5 Other Noninterest Income (Loss) 216.2 196.8 107.0 104.0 ( 6.2 ) 741.6 317.0 1,042.4 Total Noninterest Income (Loss) 2,477.2 2,335.7 1,722.9 1,640.2 ( 6.2 ) 741.6 4,193.9 4,717.5 Net Interest Income (Expense) (1) 1,010.8 896.2 775.6 734.4 ( 17.0 ) ( 17.3 ) 1,769.4 1,613.3 Revenue (1) 3,488.0 3,231.9 2,498.5 2,374.6 ( 23.2 ) 724.3 5,963.3 6,330.8 Provision for Credit Losses ( 0.1 ) ( 1.9 ) ( 2.0 ) 15.7 2.6 ( 6.3 ) 0.5 7.5 Noninterest Expense Compensation 249.1 318.4 434.4 438.6 1,201.0 1,118.9 1,884.5 1,875.9 Employee Benefits 50.8 52.3 67.1 64.7 224.7 193.5 342.6 310.5 Outside Services 114.2 145.6 45.3 34.1 580.9 566.8 740.4 746.5 Allocated Expense 2,213.5 2,037.7 929.9 901.0 ( 3,143.4 ) ( 2,938.7 ) — — Other Segment Items (2) 59.9 66.5 67.5 58.4 1,162.2 1,200.2 1,289.6 1,325.1 Total Noninterest Expense 2,687.5 2,620.5 1,544.2 1,496.8 25.4 140.7 4,257.1 4,258.0 Income (Loss) before Income Taxes (1) 800.6 613.3 956.3 862.1 ( 51.2 ) 589.9 1,705.7 2,065.3 Provision for Income Taxes (1) 173.2 134.5 233.8 216.7 27.8 138.4 434.8 489.6 Net Income (Loss) $ 627.4 $ 478.8 $ 722.5 $ 645.4 $ ( 79.0 ) $ 451.5 $ 1,270.9 $ 1,575.7 Percentage of Consolidated Net Income 49 % 30 % 57 % 41 % ( 6 ) % 29 % 100 % 100 % Average Assets $ 112,297.8 $ 107,447.0 $ 39,364.0 $ 38,629.2 $ 1,348.6 $ 578.6 $ 153,010.4 $ 146,654.8 Average Loans $ 5,652.7 $ 6,329.8 $ 35,593.9 $ 34,501.8 $ — $ — $ 41,246.6 $ 40,831.6 Average Deposits $ 91,669.5 $ 86,516.2 $ 25,317.3 $ 25,659.4 $ 1,348.6 $ 578.6 $ 118,335.4 $ 112,754.2 (1) Financial measures stated on an FTE basis. The FTE adjustment was $ 15.8 million and $ 21.3 million for nine months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income. (2) Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense. (3) Prior-year period items including severance-related charges, software amortization acceleration and dispositions, and a securities repositioning related to the supplemental pension plan, are allocated to the Reporting Segments based on the nature of the item. (4) Includes the net gain from Northern Trust’s participation in the Visa Exchange Offer, a gain related to the sale of an equity investment, partially offset by a loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, all in the prior-year period. Note 10 – 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 September 30, 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 September 30, 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 September 30, 2025 and December 31, 2024 was $ 493.5 million. Shares of the Series D Preferred Stock have no par value and a liquidation preference of $ 100,000 (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 the three-month CME Term Secured Overnight Finance Rate (SOFR), as administered by CME Group Benchmark Administration, Ltd., 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. On July 22, 2025, the Corporation declared a cash dividend of $ 2,300.00 per share of Series D Preferred Stock payable on October 1, 2025, to stockholders of record as of September 15, 2025. Series E Preferred Stock. As of September 30, 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 September 30, 2025 and December 31, 2024 was $ 391.4 million. Shares of the Series E Preferred Stock have no par value and a liquidation preference of $ 25,000 (equivalent to $ 25 per depositary share). 65 Notes to Consolidated Financial Statements (unaudited) (continued) Dividends on the Series E Preferred Stock, which are not mandatory, will accrue and be 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 July 22, 2025, the Corporation declared a cash dividend of $ 293.75 per share of Series E Preferred Stock payable on October 1, 2025, to stockholders of record as of September 15, 2025. Common Stock. 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. The repurchase authorization approved by the Board of Directors has no expiration date. For the three and nine months ended September 30, 2025, the Corporation repurchased 2,164,198 and 8,155,416 shares of common stock, respectively, at a total cost of $ 277.0 million ($ 128.00 average price per share) and $ 903.7 million ($ 110.81 average price per share), respectively, including 16,233 and 437,987 shares withheld to satisfy tax withholding obligations related to share-based compensation, respectively. For the three and nine months ended September 30, 2024, the Corporation repurchased 3,463,546 and 8,112,288 shares of common stock, respectively, at a total cost of $ 301.4 million ($ 87.01 average price per share), and $ 684.2 million ($ 84.34 average price per share) respectively, including 15,629 and 398,646 shares withheld to satisfy tax withholding obligations related to share-based compensation, respectively. Repurchases prior to July 22, 2025 were made pursuant to the stock repurchase authorization approved by the Board of Directors in October 2021. On July 22, 2025, this program was terminated and replaced with a new repurchase program, under which the Board of Directors authorized the Corporation to repurchase up to $ 2.5 billion of the Corporation’s common stock. Note 11 – Accumulated Other Comprehensive Income (Loss) The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at September 30, 2025 and 2024, and changes during the three and nine months then ended. TABLE 58: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2025 (In Millions) NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENT NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL Balance at June 30, 2025 $ ( 481.2 ) $ — $ 230.1 $ ( 448.1 ) $ ( 699.2 ) Net Change 44.3 — 17.6 2.2 64.1 Balance at September 30, 2025 $ ( 436.9 ) $ — $ 247.7 $ ( 445.9 ) $ ( 635.1 ) NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Millions) NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENT NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL Balance at December 31, 2024 $ ( 598.1 ) $ 0.6 $ 233.1 $ ( 449.6 ) $ ( 814.0 ) Net Change 161.2 ( 0.6 ) 14.6 3.7 178.9 Balance at September 30, 2025 $ ( 436.9 ) $ — $ 247.7 $ ( 445.9 ) $ ( 635.1 ) THREE MONTHS ENDED SEPTEMBER 30, 2024 NET UNREALIZED GAINS (LOSSES) 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 June 30, 2024 $ ( 667.1 ) $ — $ 215.2 $ ( 413.1 ) $ ( 865.0 ) Net Change 63.9 0.3 18.9 2.4 85.5 Balance at September 30, 2024 $ ( 603.2 ) $ 0.3 $ 234.1 $ ( 410.7 ) $ ( 779.5 ) NINE MONTHS ENDED SEPTEMBER 30, 2024 NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENT NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL Balance at December 31, 2023 $ ( 923.9 ) $ 0.8 $ 203.6 $ ( 418.4 ) $ ( 1,137.9 ) Net Change 320.7 ( 0.5 ) 30.5 7.7 358.4 Balance at September 30, 2024 $ ( 603.2 ) $ 0.3 $ 234.1 $ ( 410.7 ) $ ( 779.5 ) 66 Notes to Consolidated Financial Statements (unaudited) (continued) TABLE 59: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2025 2024 (In Millions) 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 $ 33.6 $ ( 7.5 ) $ 26.1 $ 63.7 $ ( 18.6 ) $ 45.1 Reclassification Adjustments for (Gains) Losses Included in Net Income: Interest Income on Debt Securities (1) 24.1 ( 5.9 ) 18.2 24.9 ( 6.1 ) 18.8 Net Change $ 57.7 $ ( 13.4 ) $ 44.3 $ 88.6 $ ( 24.7 ) $ 63.9 Unrealized Gains (Losses) on Cash Flow Hedges Foreign Exchange Contracts $ 0.1 $ — $ 0.1 $ 1.0 $ ( 0.2 ) $ 0.8 Reclassification Adjustment for (Gains) Losses Included in Net Income (3) ( 0.2 ) 0.1 ( 0.1 ) ( 0.6 ) 0.1 ( 0.5 ) Net Change $ ( 0.1 ) $ 0.1 $ — $ 0.4 $ ( 0.1 ) $ 0.3 Foreign Currency Adjustments Foreign Currency Translation Adjustments $ ( 21.9 ) $ ( 8.0 ) $ ( 29.9 ) $ 122.9 $ ( 2.4 ) $ 120.5 Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 0.2 ( 0.1 ) 0.1 1.0 ( 0.3 ) 0.7 Net Investment Hedge Gains (Losses) 62.8 ( 15.4 ) 47.4 ( 135.6 ) 33.3 ( 102.3 ) Net Change $ 41.1 $ ( 23.5 ) $ 17.6 $ ( 11.7 ) $ 30.6 $ 18.9 Pension and Other Postretirement Benefit Adjustments Net Actuarial Gains (Losses) $ ( 0.1 ) $ — $ ( 0.1 ) $ ( 0.1 ) $ — $ ( 0.1 ) Reclassification Adjustment for (Gains) Losses Included in Net Income (4) Amortization of Net Actuarial Loss 3.0 ( 0.7 ) 2.3 3.2 ( 0.7 ) 2.5 Net Change $ 2.9 $ ( 0.7 ) $ 2.2 $ 3.1 $ ( 0.7 ) $ 2.4 Total Net Change $ 101.6 $ ( 37.5 ) $ 64.1 $ 80.4 $ 5.1 $ 85.5 NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 (In Millions) 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 $ 142.7 $ ( 37.8 ) $ 104.9 $ 176.9 $ ( 55.1 ) $ 121.8 Reclassification Adjustments for (Gains) Losses Included in Net Income: Interest Income on Debt Securities (1) 74.6 ( 18.3 ) 56.3 76.5 ( 19.0 ) 57.5 Net (Gains) Losses on Debt Securities (2) — — — 189.3 ( 47.9 ) 141.4 Net Change $ 217.3 $ ( 56.1 ) $ 161.2 $ 442.7 $ ( 122.0 ) $ 320.7 Unrealized Gains (Losses) on Cash Flow Hedges Foreign Exchange Contracts $ 13.1 $ ( 3.1 ) $ 10.0 $ 6.4 $ ( 1.5 ) $ 4.9 Reclassification Adjustment for (Gains) Losses Included in Net Income (3) ( 14.1 ) 3.5 ( 10.6 ) ( 7.1 ) 1.7 ( 5.4 ) Net Change $ ( 1.0 ) $ 0.4 $ ( 0.6 ) $ ( 0.7 ) $ 0.2 $ ( 0.5 ) Foreign Currency Adjustments Foreign Currency Translation Adjustments $ 275.5 $ ( 12.9 ) $ 262.6 $ 52.5 $ ( 1.2 ) $ 51.3 Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 0.8 ( 0.1 ) 0.7 0.2 ( 0.1 ) 0.1 Net Investment Hedge Gains (Losses) ( 329.6 ) 80.9 ( 248.7 ) ( 36.3 ) 15.4 ( 20.9 ) Net Change $ ( 53.3 ) $ 67.9 $ 14.6 $ 16.4 $ 14.1 $ 30.5 Pension and Other Postretirement Benefit Adjustments Net Actuarial Gains (Losses) $ ( 3.5 ) $ 0.3 $ ( 3.2 ) $ 0.9 $ ( 0.5 ) $ 0.4 Reclassification Adjustment for (Gains) Losses Included in Net Income (4) Amortization of Net Actuarial Loss 9.0 ( 2.1 ) 6.9 9.6 ( 2.3 ) 7.3 Net Change $ 5.5 $ ( 1.8 ) $ 3.7 $ 10.5 $ ( 2.8 ) $ 7.7 Total Net Change $ 168.5 $ 10.4 $ 178.9 $ 468.9 $ ( 110.5 ) $ 358.4 (1) The before-tax reclassification adjustment is related to the unrealized gains (losses) amortization on AFS debt securities that were transferred to HTM debt securities during the second quarter of 2021 and third quarter of 2022. (2) The net gains (losses) on AFS debt securities before-tax reclassification adjustment is recorded in Investment Security Gains (Losses), net on the consolidated statements of income. (3) See Note 21—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. 67 Notes to Consolidated Financial Statements (unaudited) (continued) Note 12 – Net Income Per Common Share The computations of net income per common share are presented in the following table. TABLE 60: NET INCOME PER COMMON SHARE THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ($ In Millions Except Per Common Share Information) 2025 2024 2025 2024 Basic Net Income Per Common Share Average Number of Common Shares Outstanding 190,053,947 199,937,543 192,647,391 202,614,386 Net Income $ 457.6 $ 464.9 $ 1,270.9 $ 1,575.7 Less: Dividends on Preferred Stock 16.2 16.2 37.1 37.1 Net Income Applicable to Common Stock 441.4 448.7 1,233.8 1,538.6 Less: Earnings Allocated to Participating Securities 4.2 3.6 11.6 13.2 Earnings Allocated to Common Shares Outstanding 437.2 445.1 1,222.2 1,525.4 Basic Net Income Per Common Share $ 2.30 $ 2.23 $ 6.34 $ 7.53 Diluted Net Income Per Common Share Average Number of Common Shares Outstanding 190,053,947 199,937,543 192,647,391 202,614,386 Plus: Dilutive Effect of Share-based Compensation 946,615 611,520 833,978 517,014 Average Common and Potential Common Shares 191,000,562 200,549,063 193,481,369 203,131,400 Earnings Allocated to Common and Potential Common Shares $ 437.2 $ 445.1 $ 1,222.2 $ 1,525.4 Diluted Net Income Per Common Share 2.29 2.22 6.32 7.51 Note: For the three and nine months ended September 30, 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 three and nine months ended September 30, 2024, there were de minimis and 0.2 million common stock equivalents excluded in the computation of diluted net income per share. Note 13 – Revenue from Contracts with Clients Trust, Investment, and Other Servicing Fees. Custody and Fund Administration income 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 Asset Servicing and Wealth Management 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 income 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 Asset Servicing and Wealth Management 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 client 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. 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. 68 Notes to Consolidated Financial Statements (unaudited) (continued) The following table presents revenues disaggregated by major revenue source. TABLE 61: REVENUE DISAGGREGATION THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Noninterest Income Trust, Investment and Other Servicing Fees Custody and Fund Administration $ 515.5 $ 482.5 $ 1,499.0 $ 1,427.1 Investment Management and Advisory 668.3 634.8 1,965.3 1,838.3 Securities Lending 21.5 17.7 59.7 53.2 Other 60.2 61.6 186.4 187.0 Total Trust, Investment and Other Servicing Fees $ 1,265.5 $ 1,196.6 $ 3,710.4 $ 3,505.6 Other Noninterest Income Foreign Exchange Trading Income $ 57.2 $ 54.1 $ 166.5 $ 169.5 Treasury Management Fees 9.5 8.2 28.8 26.5 Security Commissions and Trading Income 41.8 35.5 120.5 107.7 Other Operating Income 60.6 111.8 167.7 1,097.5 Investment Security Gains (Losses), net — — — ( 189.3 ) Total Other Noninterest Income $ 169.1 $ 209.6 $ 483.5 $ 1,211.9 Total Noninterest Income $ 1,434.6 $ 1,406.2 $ 4,193.9 $ 4,717.5 On the consolidated statements of income, Trust, Investment and Other Servicing Fees and Treasury Management Fees represent revenue from contracts with clients. For the three months ended September 30, 2025, revenue from contracts with clients also includes $ 39.5 million of the $ 41.8 million total Security Commissions and Trading Income and $ 10.4 million of the $ 60.6 million total Other Operating Income. For the nine months ended September 30, 2025, revenue from contracts with clients also includes $ 115.3 million of the $ 120.5 million total Security Commissions and Trading Income and $ 31.2 million of the $ 167.7 million total Other Operating Income. For the three months ended September 30, 2024, revenue from contracts with clients also includes $ 31.0 million of the $ 35.5 million total Security Commissions and Trading Income and $ 9.7 million of the $ 111.8 million total Other Operating Income. For the nine months ended September 30, 2024, revenue from contracts with clients also includes $ 95.7 million of the $ 107.7 million total Security Commissions and Trading Income and $ 29.0 million of the $ 1,097.5 million total Other Operating Income. Receivables Balances. The table below represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at September 30, 2025 and December 31, 2024. TABLE 62: CLIENT RECEIVABLES (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Trust Fees Receivable, net (1) $ 969.0 $ 932.3 Other 80.9 64.5 Total Client Receivables $ 1,049.9 $ 996.8 (1) Trust Fees Receivable is net of a $ 5.4 million and $ 12.0 million fee receivable allowance as of September 30, 2025 and December 31, 2024, respectively. 69 Notes to Consolidated Financial Statements (unaudited) (continued) Note 14 – Net Interest Income The components of Net Interest Income were as follows. TABLE 63: NET INTEREST INCOME THREE MONTHS ENDED SEPTEMBER 30, 2025 NINE MONTHS ENDED SEPTEMBER 30, 2025 (In Millions) 2025 2024 2025 2024 Interest Income Federal Reserve and Other Central Bank Deposits $ 326.5 $ 451.7 $ 1,142.9 $ 1,369.0 Interest-Bearing Due from and Deposits with Banks (1) 20.7 28.5 65.9 94.5 Federal Funds Sold and Securities Purchased under Agreements to Resell 711.7 890.8 2,091.7 2,578.2 Securities — Taxable 481.1 486.3 1,398.3 1,409.0 — Nontaxable (2) 0.2 0.2 0.8 0.8 Loans 584.6 644.5 1,735.8 1,946.4 Other Interest-Earning Assets (3) 19.5 28.2 62.6 84.4 Total Interest Income $ 2,144.3 $ 2,530.2 $ 6,498.0 $ 7,482.3 Interest Expense Deposits $ 658.4 $ 873.5 $ 2,082.3 $ 2,653.5 Federal Funds Purchased 24.8 29.6 72.8 101.9 Securities Sold Under Agreements to Repurchase 695.0 869.7 2,048.8 2,535.1 Other Borrowings 79.6 94.8 239.7 278.7 Senior Notes 39.3 44.2 117.1 132.4 Long-Term Debt 56.4 56.1 167.9 167.4 Total Interest Expense $ 1,553.5 $ 1,967.9 $ 4,728.6 $ 5,869.0 Net Interest Income $ 590.8 $ 562.3 $ 1,769.4 $ 1,613.3 (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. Note 15 – Other Operating Income The components of Other Operating Income were as follows. TABLE 64: OTHER OPERATING INCOME THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Loan Service Fees $ 14.9 $ 14.0 $ 41.1 $ 43.4 Banking Service Fees 14.1 14.2 42.5 40.8 Bank Owned Life Insurance 19.4 18.4 58.3 60.4 Other Income (1)(2) 12.2 65.2 25.7 952.9 Total Other Operating Income $ 60.6 $ 111.8 $ 167.7 $ 1,097.5 (1) Other Income for the three and nine months ended September 30, 2024 includes a $ 68.1 million pre-tax gain related to the sale of an equity investment. (2) Other Income includes the mark-to-market loss on derivative swap activity related to previous sales of certain Visa Class B common shares, realized gains related to sales of certain Visa Class C common shares, and mark-to-market gains on Visa Class C common shares still held. Refer to Note 20—Commitments and Contingent Liabilities for further information. 70 Notes to Consolidated Financial Statements (unaudited) (continued) Note 16 – Other Operating Expense The components of Other Operating Expense were as follows. TABLE 65: OTHER OPERATING EXPENSE THREE MONTHS ENDED SEPTEMBER 30, 2025 NINE MONTHS ENDED SEPTEMBER 30, 2025 In Millions) 2025 2024 2025 2024 Business Promotion $ 17.1 $ 19.1 $ 56.2 $ 56.6 Staff Related 13.9 12.4 25.1 34.8 FDIC Insurance Premiums (1) 2.2 7.1 19.6 35.6 Charitable Contributions (2) 3.4 3.3 8.4 79.3 Other Expenses 48.4 44.2 150.6 155.5 Total Other Operating Expense $ 85.0 $ 86.1 $ 259.9 $ 361.8 (1) FDIC Insurance Premiums include a $ 14.7 million charge for the nine months ended September 30, 2024, related to the FDIC Insurance Premium Special Assessment . (2) Charitable Contributions include a $ 70 million contribution to the Northern Trust Foundation for the nine months ended September 30, 2024 . Note 17 – Pension The following table sets forth the net periodic pension expense for Northern Trust’s U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for the three and nine months ended September 30, 2025 and 2024. TABLE 66: NET PERIODIC PENSION EXPENSE (BENEFIT) U.S. QUALIFIED PLAN THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Service Cost $ 13.7 $ 13.4 $ 41.1 $ 40.2 Interest Cost 15.5 13.9 46.5 41.7 Expected Return on Plan Assets ( 30.6 ) ( 28.9 ) ( 91.8 ) ( 86.7 ) Amortization Net Actuarial Loss 1.9 1.9 5.7 5.7 Net Periodic Pension Expense $ 0.5 $ 0.3 $ 1.5 $ 0.9 NON-U.S. PENSION PLANS THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Service Cost $ 0.5 $ 0.5 $ 1.5 $ 1.5 Interest Cost 1.2 1.1 3.5 3.3 Expected Return on Plan Assets ( 1.7 ) ( 1.6 ) ( 5.0 ) ( 4.8 ) Net Periodic Pension Expense $ — $ — $ — $ — U.S. NON-QUALIFIED PLAN THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Service Cost $ 1.2 $ 1.2 $ 3.6 $ 3.6 Interest Cost 1.3 1.2 3.9 3.6 Amortization Net Actuarial Loss 1.1 1.3 3.3 3.9 Net Periodic Pension Expense $ 3.6 $ 3.7 $ 10.8 $ 11.1 The components of net periodic pension expense are recorded in Employee Benefits expense on the consolidated statements of income. There were no contributions made to the U.S. Qualified Plan or the U.S. Non-Qualified Plan during the three months ended September 30, 2025 and 2024. There were $ 125.0 million and $ 200.0 million of contributions to the U.S. Qualified Plan during the nine months ended September 30, 2025 and 2024, respectively. There were $ 12.9 million and $ 8.0 million of contributions to the U.S. Non-Qualified Plan during the nine months ended September 30, 2025 and 2024, respectively. 71 Notes to Consolidated Financial Statements (unaudited) (continued) Note 18 – Share-Based Compensation Plans The Northern Trust Corporation 2017 Long-Term Incentive Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards. Restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements. Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three and nine months ended September 30, 2025 and 2024. TABLE 67: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Restricted Stock Unit Awards $ 15.7 $ 13.4 $ 89.6 $ 78.3 Performance Stock Units 1.9 1.3 18.1 19.8 Total Share-Based Compensation Expense 17.6 14.7 107.7 98.1 Tax Benefits Recognized $ 4.3 $ 3.6 $ 26.4 $ 24.0 Note 19 – Variable Interest Entities Northern Trust is involved with various entities in the normal course of business that are deemed to be variable interest entities (VIEs). VIEs are defined within GAAP as entities which either (1) lack sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support, (2) have equity investors that lack attributes typical of an equity investor, such as the ability to make significant decisions through voting rights affecting the entity’s operations, or the obligation to absorb expected losses or the right to receive residual returns of the entity, or (3) are structured with voting rights that are disproportionate to the equity investor’s obligation to absorb losses or right to receive returns, and substantially all of the activities are conducted on behalf of the holder of the equity investment at risk with disproportionately few voting rights. Investors that finance a VIE through debt or equity interests are variable interest holders in the entity and the variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity’s economic performance and, through its variable interest, the obligation to absorb losses or the right to receive returns that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE. Community Reinvestment Act (CRA) Investments. Northern Trust fulfills its obligations under the CRA by making a variety of qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. These investments are made in legal entities that are primarily VIEs and consist of equity in limited partnerships and beneficial interests in securitized debt. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP and therefore they are not consolidated. Northern Trust’s investments in these unconsolidated entities are reported in Other Assets or HTM Debt Securities, depending on the structure of the investment. Tax credit structures. Northern Trust holds tax-advantaged investments in unconsolidated entities that own and operate affordable housing and projects through the new markets tax credit program. These entities, which are limited partnerships and similar entities, are primarily VIEs and are designed to generate a return primarily through the realization of tax credits and other tax benefits, such as tax deductions from operating losses of the investments. Northern Trust invests as a limited partner/investor member and lacks both the power to direct the entities’ most significant activities and the obligation to absorb losses or right to receive benefits that could potentially be significant to the entities. Northern Trust is not required to consolidate these entities as it does not have a controlling financial interest and thus is not the primary beneficiary. Northern Trust’s maximum exposure to loss as a result of its involvement with tax credit structures and other CRA investments is limited to the carrying amounts of its investments, including any undrawn commitments. Northern Trust’s funding requirements are limited to its invested capital and undrawn commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of these entities. Northern Trust’s investments in these unconsolidated tax credit structures and related unfunded commitments are reported in Other Assets and Other Liabilities, respectively, on the consolidated balance sheets. 72 Notes to Consolidated Financial Statements (unaudited) (continued) TABLE 68: SUMMARY OF UNCONSOLIDATED TAX CREDIT STRUCTURES (In Millions) SEPTEMBER 30, 2025 DECEMBER 31, 2024 Investment Carrying Amount Affordable Housing $ 751.3 $ 657.0 New Markets 190.4 219.7 Total Investment Carrying Amount (1) $ 941.7 $ 876.7 Unfunded Commitments (2) Affordable Housing $ 319.2 $ 227.1 Total Unfunded Commitments (3) $ 319.2 $ 227.1 (1) As of September 30, 2025 and December 31, 2024, $ 918.1 million and $ 849.3 million are VIEs, respectively. (2) As of September 30, 2025 and December 31, 2024, there were no unfunded commitments for New Markets. (3) As of September 30, 2025 and December 31, 2024, $ 315.9 million and $ 221.0 million relate to undrawn commitments on VIEs, respectively. On January 1, 2024, Northern Trust adopted ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method—a consensus of the Emerging Issues Task Force” (ASU 2023-02). Upon adoption of ASU 2023-02, Northern Trust elected to account for qualifying new markets tax credit investments under the proportional amortization method. Prior to the adoption of ASU 2023-02, Northern Trust accounted for qualifying affordable housing investments under the proportional amortization method and continues to do so subsequent to the adoption of ASU 2023-02. Under the proportional amortization method, the carrying amount of the investment is amortized in proportion to the income tax credits and other income tax benefits received in the current period as compared to the total income tax credits and income tax benefits expected to be received over the life of the investment. Income tax credits and other income tax benefits and amortization expense associated with unconsolidated tax credit structures are primarily reported in the Provision for Income Tax on the consolidated statement of income. TABLE 69: INCOME TAX CREDITS AND OTHER TAX BENEFITS AND AMORTIZATION EXPENSE ASSOCIATED WITH TAX CREDIT STRUCTURES THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, (In Millions) 2025 2024 2025 2024 Income Tax Credits and Other Income Tax Benefits Affordable Housing $ 24.2 $ 21.9 $ 72.3 $ 65.5 New Markets 4.2 5.1 11.7 15.1 Total Income Tax Credits and Other Income Tax Benefits $ 28.4 $ 27.0 $ 84.0 $ 80.6 Amortization Expense Affordable Housing $ 21.9 $ 19.6 $ 65.6 $ 58.5 New Markets 3.9 4.4 11.0 13.3 Total Amortization Expense $ 25.8 $ 24.0 $ 76.6 $ 71.8 Investment funds. Northern Trust acts as an asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, Northern Trust earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP and therefore, the funds are not consolidated. Northern Trust’s maximum exposure to loss is limited to the carrying amount of its investments, including any undrawn commitments. Certain funds for which Northern Trust acts as an asset manager comply or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds and, therefore, the funds are exempt from the consolidation requirements in ASC 810-10. Northern Trust does no t have any contractual obligations to provide financial support to the funds. Any potential future support of the funds will be at the discretion of Northern Trust after an evaluation of the specific facts and circumstances. Periodically, Northern Trust makes seed capital investments to certain funds which are VIEs. As of September 30, 2025, Northern Trust had $ 112.3 million of investments valued using net asset value per share and had $ 29.3 million of unfunded commitments related to seed capital investments. As of December 31, 2024, Northern Trust had no seed capital investments and no unfunded commitments related to seed capital investments. 73 Notes to Consolidated Financial Statements (unaudited) (continued)