10-Q – 2026-07-30 – ntrs-20260630.htm

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 six months ended June 30, 2026 and 2025.
TABLE 25: CASH FLOW ACTIVITY SUMMARY

SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025
Net cash provided by (used in):
Operating activities $ (384.9) $ 4,619.3 
Investing activities (1,359.4) (13,906.6)
Financing activities 1,647.0   10,340.6 
Effect of Foreign Currency Exchange Rates on Cash (38.9) 692.9 
Change in Cash and Due from Banks $ (136.2) $ 1,746.2 

25

STATEMENTS OF CASH FLOWS (continued)

Operating Activities
Net cash used in operating activities of $384.9 million for the six months ended June 30, 2026 was primarily attributable to higher net collateral deposited with derivative counterparties, partially offset by period earnings.
Net cash provided by operating activities of $4.6 billion for the six months ended June 30, 2025 was primarily attributable to lower net collateral deposited with derivative counterparties and period earnings.
Investing Activities
Net cash used in investing activities of $1.4 billion for the six months ended June 30, 2026 was primarily attributable to net purchases of AFS securities and an increase in loans, partially offset by decreased levels of Federal Reserve and other central bank deposits and a decrease in federal funds sold and securities purchased under agreements to resell.
Net cash used in investing activities of $13.9 billion for the six months ended June 30, 2025 was primarily attributable to increased levels of Federal Reserve and other central bank deposits and net purchases of AFS debt securities, partially offset by net proceeds associated with HTM debt securities.
Financing Activities
Net cash provided by financing activities of $1.6 billion for the six months ended June 30, 2026 was primarily attributable to increased levels of total deposits and short term borrowings, partially offset by share repurchases.
Net cash provided by financing activities of $10.3 billion for the six months ended June 30, 2025 was primarily attributable to the increased levels of total deposits, partially offset by share repurchases.

REGULATORY CAPITAL
Capital ratios remained strong at June 30, 2026, 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 2026 Dodd-Frank Act Stress Test (DFAST) were published by the Federal Reserve Board on June 24, 2026 and resulted in no change to the Corporation’s stress capital buffer. On February 4, 2026, the Federal Reserve notified the Corporation that because the Stress Testing Transparency Proposal remains subject to public comment, absent further action from the Federal Reserve, the Corporation’s stress capital buffer and Common Equity Tier 1 capital ratio minimum requirement will remain at 2.5% and 7.0%, respectively, until October 1, 2027.
In March 2026, the U.S. banking agencies issued a revised proposal to implement the final components of the Basel III regulatory capital framework. The revised proposal would eliminate the existing standardized and advanced approach methodologies for determining Risk-Weighted Assets for Category I and Category II institutions and replace it with a new expanded risk-based approach. Based upon a preliminary assessment, Northern Trust estimates the proposal will result in a modest decrease in Risk-Weighted Assets. However, the potential impacts on the Corporation and the Bank of a final rule and the timing associated with it remain uncertain.
26

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 June 30, 2026, December 31, 2025 and June 30, 2025.
TABLE 26: REGULATORY CAPITAL
JUNE 30, 2026 DECEMBER 31, 2025 JUNE 30, 2025
($ In Millions) STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED APPROACH
Common Equity Tier 1 Capital
Common Stockholders’ Equity $ 12,516.7   $ 12,516.7   $ 12,073.0  $ 12,073.0  $ 11,981.6  $ 11,981.6 
Goodwill and Other Intangible Assets, net of Deferred Tax Liability (710.4) (710.4) (715.9) (715.9) (720.4) (720.4)
Other (200.7) (200.7) (164.6) (164.6) (153.0) (153.0)
Total Common Equity Tier 1 Capital 11,605.6   11,605.6   11,192.5  11,192.5  11,108.2  11,108.2 
Additional Tier 1 Capital
Preferred Stock 884.9   884.9   884.9  884.9  884.9  884.9 
Other (71.8) (71.8) (68.9) (68.9) (54.6) (54.6)
Total Additional Tier 1 Capital 813.1   813.1   816.0  816.0  830.3  830.3 
Total Tier 1 Capital 12,418.7   12,418.7   12,008.5  12,008.5  11,938.5  11,938.5 
Tier 2 Capital
Qualifying Allowance for Credit Losses 190.3   —   198.4  —  223.3  — 
Qualifying Subordinated Debt 2,097.5   2,097.5   2,097.3  2,097.3  1,347.1  1,347.1 
Total Tier 2 Capital 2,287.8   2,097.5   2,295.7  2,097.3  1,570.4  1,347.1 
Total Risk-Based Capital $ 14,706.5   $ 14,516.2   $ 14,304.2  $ 14,105.8  $ 13,508.9  $ 13,285.6 
Risk-Weighted Assets (1)
$ 95,157.3   $ 81,119.6   $ 89,015.4  $ 74,843.6  $ 91,385.4  $ 74,176.8 
Total Assets – End of Period (EOP) 179,297.2   179,297.2   177,132.7  177,132.7  171,883.6  171,883.6 
Adjusted Average Assets (2)
162,601.3   162,601.3   154,083.9  154,083.9  156,854.5  156,854.5 
Total Loans – EOP 43,822.0   43,822.0   41,948.3  41,948.3  43,323.4  43,323.4 
Common Stockholders’ Equity to:
Total Loans – EOP 28.56   % 28.56   % 28.78  % 28.78  % 27.66  % 27.66  %
Total Assets – EOP 6.98   6.98   6.82  6.82  6.97  6.97 

(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
June 30, 2026 December 31, 2025 June 30, 2025 June 30, 2026 December 31, 2025 June 30, 2025 WELL-CAPITALIZED RATIOS MINIMUM CAPITAL RATIOS
Northern Trust Corporation
Common Equity Tier 1 Capital 12.2   % 12.6  % 12.2  % 14.3   % 15.0  % 15.0  % N/A 4.5  %
Tier 1 Capital 13.1   13.5  13.1  15.3   16.0  16.1  6.0 6.0 
Total Capital 15.5   16.1  14.8  17.9   18.8  17.9  10.0 8.0 
Tier 1 Leverage 7.6   7.8  7.6  7.6   7.8  7.6  N/A 4.0 
Supplementary Leverage N/A N/A N/A 8.6   8.7  9.1  N/A 3.0 

The Northern Trust Company
Common Equity Tier 1 Capital 11.8   % 12.1  % 11.4  % 14.1   % 14.6  % 14.3  % 6.5  % 4.5  %
Tier 1 Capital 11.8   12.1  11.4  14.1   14.6  14.3  8.0  6.0 
Total Capital 13.9   14.3  12.8  16.3   17.0  15.7  10.0  8.0 
Tier 1 Leverage 6.8   6.9  6.6  6.8   6.9  6.6  5.0  4.0 
Supplementary Leverage N/A N/A N/A 7.7   7.7  7.9  3.0  3.0 

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RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS

In November 2024, the FASB issued Accounting Standards Update (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. Northern Trust is currently assessing the impacts upon adoption of ASU 2025-06.
Other accounting pronouncements that were issued by the FASB but not yet adopted as of June 30, 2026 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 66% of total assets as of both June 30, 2026 and December 31, 2025, 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, 2025.
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).
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RISK MANAGEMENT (continued)
Market Risk (continued)

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 June 30, 2026 and June 30, 2025. 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) JUNE 30, 2026
JUNE 30, 2025

Increase in Interest Rates Above Market Implied Forward Rates
100 Basis Points $ 44   $ 69 
200 Basis Points 74   147 
Decrease in Interest Rates Below Market Implied Forward Rates
100 Basis Points $ (57) $ (89)
200 Basis Points (147) $ (188)

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;
▪ 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.
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RISK MANAGEMENT (continued)
Market Risk (continued)

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 June 30, 2026 and December 31, 2025. 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) JUNE 30, 2026
DECEMBER 31, 2025

Increase in Interest Rates Above Market Implied Forward Rates
100 Basis Points $ (623) $ (537)
200 Basis Points (1,357) (1,186)
Decrease in Interest Rates Below Market Implied Forward Rates
100 Basis Points $ 647   $ 534 
200 Basis Points 1,218   920 

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 JUNE 30, 2026 MARCH 31, 2026 JUNE 30, 2025 JUNE 30, 2026 MARCH 31, 2026 JUNE 30, 2025 JUNE 30, 2026 MARCH 31, 2026 JUNE 30, 2025
High $ 2.1   $ 0.5  $ 0.6  $ 2.0   $ 0.5  $ 0.6  $ 0.2   $ 0.2  $ 0.3 
Low 0.2   0.2  0.3  0.2   0.1  0.2  —   0.1  0.1 
Average 0.8   0.3  0.4  0.7   0.2  0.3  0.1   0.1  0.2 
Quarter-End 0.3   0.3  0.3  0.2   0.3  0.2  0.1   0.1  0.1 

During the three months ended June 30, 2026, 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.
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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 JUNE 30, SIX MONTHS ENDED JUNE 30,
($ In Millions) 2026 2025 2026 2025
Net Interest Income
Interest Income - GAAP $ 2,189.3   $ 2,212.8  $ 4,423.4   $ 4,353.7 
Add: FTE Adjustment 7.6   4.7  15.2   10.3 
Interest Income (FTE) - Non-GAAP $ 2,196.9   $ 2,217.5  $ 4,438.6   $ 4,364.0 

Net Interest Income - GAAP $ 675.5   $ 610.5  $ 1,329.5   $ 1,178.6 
Add: FTE Adjustment 7.6   4.7  15.2   10.3 
Net Interest Income (FTE) - Non-GAAP $ 683.1   $ 615.2  $ 1,344.7   $ 1,188.9 
 
Net Interest Margin - GAAP 1.79   % 1.68  % 1.76   % 1.67  %
Net Interest Margin (FTE) - Non-GAAP 1.81   % 1.69  % 1.78   % 1.69  %

Total Revenue
Total Revenue - GAAP $ 2,698.0   $ 1,997.9  $ 4,903.7   $ 3,937.9 
Add: FTE Adjustment 7.6   4.7  15.2   10.3 
Total Revenue (FTE) - Non-GAAP $ 2,705.6   $ 2,002.6  $ 4,918.9   $ 3,948.2 

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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, including artificial intelligence
• geopolitical risks, risks related to global climate change and the risks of extraordinary events such as pandemics, natural disasters, terrorist events, global conflicts and war, 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;
32

FORWARD-LOOKING STATEMENTS (continued)

• the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders;
• the downgrade of U.S. government-issued and other securities;
• changes in tax laws, accounting requirements or interpretations and other legislation in the U.S. or other countries that could affect Northern Trust or its clients;
• the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
• changes in the nature and activities of Northern Trust’s competition;
• Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;
• Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;
• Northern Trust’s ability to maintain a product mix that achieves acceptable margins;
• Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;
• uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
• risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary; and
• other factors identified elsewhere in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025, 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.
33

Item 1. Consolidated Financial Statements (unaudited)

CONSOLIDATED BALANCE SHEET (UNAUDITED) NORTHERN TRUST CORPORATION

(In Millions Except Share Information) JUNE 30, 2026 DECEMBER 31, 2025

ASSETS
Cash and Due from Banks $ 5,736.9   $ 5,873.1  
Federal Reserve and Other Central Bank Deposits 50,636.2   53,524.9  
Interest-Bearing Deposits with Banks 1,544.9   1,729.4  
Federal Funds Sold and Securities Purchased under Agreements to Resell 426.5   2,654.1  
Debt Securities
Available for Sale (Amortized cost of $ 38,198.3 and $ 34,102.4 )
38,123.1   34,036.5  
Held to Maturity (Fair value of $ 22,353.5 and $ 22,381.2 )
23,492.1   23,429.6  

Total Debt Securities 61,615.2   57,466.1  
Loans
Commercial 21,363.3   20,431.0  
Personal 22,458.7   21,517.3  
Total Loans (Net of unearned income of $ 4.9 and $ 5.3 )
43,822.0   41,948.3  
Allowance for Credit Losses ( 168.4 ) ( 175.0 )
Buildings and Equipment 447.6   464.6  
Goodwill 709.6   712.9  
Other Assets 14,526.7   12,934.3  
Total Assets $ 179,297.2   $ 177,132.7  
LIABILITIES
Deposits
Demand and Other Noninterest-Bearing $ 15,315.9   $ 14,810.7  
Savings, Money Market and Other Interest-Bearing 34,419.1   28,984.1  
Savings Certificates and Other Time 4,686.9   6,418.9  
Non U.S. Offices — Noninterest-Bearing 12,884.1   12,537.9  
                              — Interest-Bearing
78,274.0   80,046.1  
Total Deposits 145,580.0   142,797.7  
Federal Funds Purchased 1,568.9   2,141.1  
Securities Sold Under Agreements to Repurchase 175.6   292.2  
Other Borrowings 8,627.2   7,158.3  
Senior Notes 3,331.2   3,351.5  
Long-Term Debt 2,073.3   3,484.4  
Other Liabilities 4,539.4   4,949.6  
Total Liabilities 165,895.6   164,174.8  
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 182,955,653 and 186,337,588
408.6   408.6  
Additional Paid-In Capital 1,044.4   1,039.0  
Retained Earnings 17,706.5   16,709.3  
Accumulated Other Comprehensive Loss ( 551.7 ) ( 590.5 )
Treasury Stock ( 62,215,871 and 58,833,936 shares, at cost)
( 6,091.1 ) ( 5,493.4 )
Total Stockholders’ Equity 13,401.6   12,957.9  
Total Liabilities and Stockholders’ Equity $ 179,297.2   $ 177,132.7  

See accompanying notes to the consolidated financial statements.
34

CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) NORTHERN TRUST CORPORATION

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions Except Share Information) 2026 2025 2026 2025
Noninterest Income
Trust, Investment and Other Servicing Fees $ 1,349.5   $ 1,231.1   $ 2,690.9   $ 2,444.9  
Foreign Exchange Trading Income 97.1   50.6   184.8   109.3  
Security Commissions and Trading Income 55.6   39.6   107.7   78.7  
Other Operating Income (1)
594.2   66.1   664.7   126.4  
Investment Security Gains (Losses), net ( 73.9 ) —   ( 73.9 ) —  
Total Noninterest Income 2,022.5   1,387.4   3,574.2   2,759.3  
Net Interest Income
Interest Income 2,189.3   2,212.8   4,423.4   4,353.7  
Interest Expense 1,513.8   1,602.3   3,093.9   3,175.1  
Net Interest Income 675.5   610.5   1,329.5   1,178.6  
Provision for Credit Losses ( 5.3 ) 16.5   ( 8.3 ) 17.5  
Net Interest Income after Provision for Credit Losses 680.8   594.0   1,337.8   1,161.1  
Noninterest Expense
Compensation and Benefits 868.0   732.5   1,690.2   1,486.6  
Outside Services 246.3   247.0   483.0   492.2  
Equipment and Software 378.5   293.7   686.6   574.6  
Occupancy 53.5   52.5   104.8   105.9  
Other Operating Expense 92.3   90.9   182.0   174.9  
Total Noninterest Expense 1,638.6   1,416.6   3,146.6   2,834.2  
Income before Income Taxes 1,064.7   564.8   1,765.4   1,086.2  
Provision for Income Taxes 272.5   143.5   447.6   272.9  
Net Income $ 792.2   $ 421.3   $ 1,317.8   $ 813.3  
Preferred Stock Dividends 4.7   4.7   20.9   20.9  
Net Income Applicable to Common Stock $ 787.5   $ 416.6   $ 1,296.9   $ 792.4  
Per Common Share
Net Income – Basic $ 4.25   $ 2.14   $ 6.97   $ 4.05  
– Diluted 4.23   2.13   6.93   4.03  
Average Number of Common Shares Outstanding
– Basic 183,993,670   192,751,910   184,742,283   193,965,606  
– Diluted 184,889,944   193,374,888   185,709,785   194,742,332  

(1) Beginning in Q1 2026, Treasury Management Fees are included within Other Operating Income. The prior period has been revised to conform to the current year presentation.

CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) NORTHERN TRUST CORPORATION

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Net Income $ 792.2   $ 421.3   $ 1,317.8   $ 813.3  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
Net Unrealized Gains (Losses) on Available for Sale Debt Securities 72.7   45.9   28.1   116.9  
Net Unrealized Gains (Losses) on Cash Flow Hedges ( 1.7 ) ( 0.1 ) ( 7.0 ) ( 0.6 )
Net Foreign Currency Adjustments 9.0   ( 7.7 ) 10.6   ( 3.0 )
Net Pension and Other Postretirement Benefit Adjustments 4.9   2.2   7.1   1.5  
Other Comprehensive Income (Loss) 84.9   40.3   38.8   114.8  
Comprehensive Income $ 877.1   $ 461.6   $ 1,356.6   $ 928.1  

See accompanying notes to the consolidated financial statements.
35

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED) NORTHERN TRUST CORPORATION

SIX MONTHS ENDED JUNE 30, 2026
(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, 2025 $ 884.9   $ 408.6   $ 1,039.0   $ 16,709.3   $ ( 590.5 ) $ ( 5,493.4 ) $ 12,957.9  
Net Income —  —  —  525.5   —  —  525.5  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) —  —  —  —  ( 46.1 ) —  ( 46.1 )
Dividends Declared:
Common Stock, $ 0.80 per share
—  —  —  ( 150.8 ) —  —  ( 150.8 )
Preferred Stock —  —  —  ( 16.2 ) —  —  ( 16.2 )
Stock Awards and Options Exercised —  —  ( 35.7 ) —  —  113.3   77.6  
Stock Purchased —  —  —  —  —  ( 358.9 ) ( 358.9 )
Excise Tax on Share Repurchases —  —  —  —  —  ( 1.7 ) ( 1.7 )
Balance at March 31, 2026 $ 884.9   $ 408.6   $ 1,003.3   $ 17,067.8   $ ( 636.6 ) $ ( 5,740.7 ) $ 12,987.3  
Net Income —   —   —   792.2   —   —   792.2  
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) —   —   —   —   84.9   —   84.9  
Dividends Declared:
Common Stock, $ 0.80 per share
—   —   —   ( 148.8 ) —   —   ( 148.8 )
Preferred Stock —   —   —   ( 4.7 ) —   —   ( 4.7 )
Stock Awards and Options Exercised —   —   41.1   —   —   3.6   44.7  
Stock Purchased —   —   —   —   —   ( 350.6 ) ( 350.6 )
Excise Tax on Share Repurchases —   —   —   —   —   ( 3.4 ) ( 3.4 )
Balance at June 30, 2026 $ 884.9   $ 408.6   $ 1,044.4   $ 17,706.5   $ ( 551.7 ) $ ( 6,091.1 ) $ 13,401.6  

See accompanying notes to the consolidated financial statements.

SIX MONTHS ENDED JUNE 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 (Loss) (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 (Loss) (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  

See accompanying notes to the consolidated financial statements.
36

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NORTHERN TRUST CORPORATION

SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,317.8   $ 813.3  
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities
Investment Security Losses (Gains), net 73.9   —  
Amortization and Accretion of Securities and Unearned Income, net ( 41.2 ) ( 33.9 )
Provision for Credit Losses ( 8.3 ) 17.5  
Depreciation and Amortization 395.5   386.4  
Pension Plan Contributions ( 7.2 ) ( 137.9 )
Change in Receivables ( 126.5 ) ( 10.4 )
Change in Interest Payable ( 27.1 ) 21.8  
Change in Collateral With Derivative Counterparties, net ( 1,518.3 ) 3,086.3  
Other Operating Activities, net ( 443.5 ) 476.2  
Net Cash (Used in) Provided by Operating Activities ( 384.9 ) 4,619.3  
CASH FLOWS FROM INVESTING ACTIVITIES

Change in Federal Funds Sold and Securities Purchased under Agreements to Resell 2,262.2   ( 459.2 )
Change in Interest-Bearing Deposits with Banks 145.1   ( 395.9 )
Net Change in Federal Reserve and Other Central Bank Deposits 2,498.0   ( 11,827.3 )
Purchases of Held to Maturity Debt Securities ( 18,134.9 ) ( 14,530.1 )
Proceeds from the Maturity and Redemption of Held to Maturity Debt Securities 17,806.7   16,308.5  
Purchases of Available for Sale Debt Securities ( 9,163.0 ) ( 5,222.0 )
Proceeds from the Maturity and Sales of Available for Sale Debt Securities 4,995.0   2,397.3  
Change in Loans ( 1,901.8 ) 147.4  
Purchases of Buildings and Equipment ( 34.8 ) ( 24.8 )
Purchases and Development of Computer Software ( 339.2 ) ( 376.2 )

Proceeds from the Sale of Visa Shares 169.3   12.9  
Other Investing Activities, net 338.0   62.8  
Net Cash Used in Investing Activities ( 1,359.4 ) ( 13,906.6 )
CASH FLOWS FROM FINANCING ACTIVITIES
Change in Deposits 3,311.8   10,727.2  
Change in Federal Funds Purchased ( 572.2 ) 229.0  
Change in Securities Sold under Agreements to Repurchase ( 116.6 ) 379.4  
Change in Short-Term Other Borrowings 1,451.8   ( 56.7 )

Repayments of Long-Term Debt ( 1,400.0 ) —  
Treasury Stock Purchased ( 709.5 ) ( 626.6 )
Net Proceeds from Stock Options 2.8   4.5  
Cash Dividends Paid on Common Stock ( 295.4 ) ( 290.1 )
Cash Dividends Paid on Preferred Stock ( 20.9 ) ( 20.9 )
Other Financing Activities, net ( 4.8 ) ( 5.2 )
Net Cash Provided by Financing Activities 1,647.0   10,340.6  
Effect of Foreign Currency Exchange Rates on Cash ( 38.9 ) 692.9  
Change in Cash and Due from Banks ( 136.2 ) 1,746.2  
Cash and Due from Banks at Beginning of Period 5,873.1   4,677.2  
Cash and Due from Banks at End of Period $ 5,736.9   $ 6,423.4  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest Paid $ 3,120.4   $ 3,144.6  
Income Taxes Paid 312.3   245.7  

See accompanying notes to the consolidated financial statements.
37

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 June 30, 2026 and 2025, 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, 2025.

Note 2 – Recent Accounting Pronouncements
On January 1, 2026, Northern Trust early adopted ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (ASU 2025-09). ASU 2025-09 enhances hedge accounting guidance to better align accounting with an entity’s risk management activities by expanding eligibility and operability of hedge accounting across five targeted areas. Upon adoption, ASU 2025-09 did not impact Northern Trust’s consolidated balance sheets or consolidated statements of income. Please refer to Note 21 – Derivative Financial Instruments for further information.

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 six months ended June 30, 2026 or the year ended December 31, 2025.
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 June 30, 2026, Northern Trust’s AFS debt securities portfolio included 1,082 Level 2 debt securities with an aggregate market value of $ 30.2 billion, substantially all valued by external pricing vendors. As of December 31, 2025, Northern Trust’s AFS debt securities portfolio included 1,003 Level 2 debt securities with an aggregate market value of $ 25.9 billion, substantially 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.
38

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 in connection with the sales of Visa Class B common shares previously held by Northern Trust. 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 June 30, 2026 and December 31, 2025, 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

JUNE 30, 2026
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 $ 23.0 million Discounted Cash Flow Conversion Rate 1.50 x 1.50 x
Visa Class A Appreciation 12.88 % 12.88 %
Expected Duration 25 - 37 months 34 months
(1) Weighted average of expected duration based on scenario probability.

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

Swaps Related to Sale of Certain Visa Class B Common Shares $ 29.7 million Discounted Cash Flow Conversion Rate 1.51 x 1.51 x
Visa Class A Appreciation 9.69 % 9.69 %
Expected Duration 14 - 26 months 23 months
(1) Weighted average of expected duration based on scenario probability.
39

Notes to Consolidated Financial Statements (unaudited) (continued)

The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, segregated by fair value hierarchy level.
TABLE 33: RECURRING BASIS HIERARCHY LEVELING

JUNE 30, 2026
(In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Governments $ 7,883.3   $ —   $ —   $ —   $ 7,883.3  

Government Sponsored Agency —   19,302.8   —   —   19,302.8  
Non-U.S. Government —   408.5   —   —   408.5  
Corporate Debt —   271.4   —   —   271.4  
Covered Bonds —   275.7   —   —   275.7  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds —   4,670.4   —   —   4,670.4  
CLOs —   3,453.7   —   —   3,453.7  
Other Asset-Backed —   1,345.7   —   —   1,345.7  
Commercial Mortgage-Backed —   511.6   —   —   511.6  

Total Available for Sale Debt Securities 7,883.3   30,239.8   —   —   38,123.1  
Other Assets
Equity Securities (1)
110.0   450.9   —   —   560.9  
Derivative Assets
Foreign Exchange Contracts —   3,294.6   —   ( 1,768.9 ) 1,525.7  
Interest Rate Contracts —   80.2   —   ( 61.2 ) 19.0  
Other Financial Derivatives (2)
—   0.3   —   ( 0.3 ) —  
Total Derivative Assets —   3,375.1   —   ( 1,830.4 ) 1,544.7  
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts —   3,159.4   —   ( 2,729.3 ) 430.1  
Interest Rate Contracts —   138.8   —   —   138.8  
Other Financial Derivatives (3)
—   0.1   23.0   ( 23.1 ) —  
Total Derivative Liabilities $ —   $ 3,298.3   $ 23.0   $ ( 2,752.4 ) $ 568.9  

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of June 30, 2026, derivative assets and liabilities shown above also include reductions of $ 202.7 million and $ 1,124.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment, Visa Class C common shares, and seed capital investments to certain funds managed by Northern Trust with a fair value of $ 110.0 million, $ 370.7 million, and $ 80.2 million, respectively, as of June 30, 2026.
(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.

40

Notes to Consolidated Financial Statements (unaudited) (continued)

DECEMBER 31, 2025
(In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Governments $ 8,172.4   $ —   $ —   $ —  $ 8,172.4  
Obligations of States and Political Subdivisions —   313.1   —   —  313.1  
Government Sponsored Agency —   16,567.5   —   —  16,567.5  
Non-U.S. Government —   527.2   —   —  527.2  
Corporate Debt —   64.4   —   —  64.4  
Covered Bonds —   273.5   —   —  273.5  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds —   4,984.3   —   —  4,984.3  
CLOs —   2,154.9   —   —  2,154.9  
Other Asset-Backed —   570.2   —   —  570.2  
Commercial Mortgage-Backed —   409.0   —   —  409.0  

Total Available for Sale Debt Securities 8,172.4   25,864.1   —   —  34,036.5  
Other Assets
Equity Securities (1)
85.0 127.4   —   —  212.4
Derivative Assets
Foreign Exchange Contracts —   1,988.8   —   ( 1,696.1 ) 292.7  
Interest Rate Contracts —   104.8   —   ( 82.4 ) 22.4  
Other Financial Derivatives (2)
—   0.7   —   ( 0.7 ) —  
Total Derivative Assets —   2,094.3   —   ( 1,779.2 ) 315.1  
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts —   2,247.9   —   ( 1,139.4 ) 1,108.5  
Interest Rate Contracts —   130.4   —   ( 5.0 ) 125.4  
Other Financial Derivatives (3)
—   1.6   29.7   ( 31.3 ) —  
Total Derivative Liabilities $ —   $ 2,379.9   $ 29.7   $ ( 1,175.7 ) $ 1,233.9  

Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2025, derivative assets and liabilities shown above also include reductions of $ 1.2 billion and $ 550.6 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment, seed capital investments to certain funds managed by Northern Trust, and Visa Class C common shares with a fair value of $ 85.0 million and $ 112.5 million, and $ 14.9 million, respectively, as of December 31, 2025.
(2 ) Other Financial Derivatives assets consists of total return swap contracts.
(3) Other Financial Derivatives liabilities consists of swaps related to the sale of certain Visa Class B common shares and total return swap contracts.
The following table presents the changes in Level 3 liabilities for the three and six months ended June 30, 2026 and 2025.
TABLE 34: CHANGES IN LEVEL 3 LIABILITIES
(In Millions) SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
THREE MONTHS ENDED JUNE 30, 2026 2025
Fair Value at April 1
$ 22.4   $ 29.5  
Total (Gains) Losses:
Included in Earnings (1)
5.9   ( 0.2 )
Purchases, Issues, Sales, and Settlements
Settlements ( 5.3 ) ( 6.5 )
Fair Value at June 30
$ 23.0   $ 22.8  
(1) (Gains) Losses are recorded in Other Operating Income on the consolidated statements of income.
41

Notes to Consolidated Financial Statements (unaudited) (continued)

(In Millions) SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
SIX MONTHS ENDED JUNE 30, 2026 2025
Fair Value at January 1 $ 29.7   $ 27.2  
Total Losses:
Included in Earnings (1)
3.1   5.4  
Purchases, Issues, Sales, and Settlements
Settlements ( 9.8 ) ( 9.8 )
Fair Value at June 30
$ 23.0   $ 22.8  

(1) Losses are recorded in Other Operating Income on the consolidated statements of income.
Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy.
Assets measured at fair value on a nonrecurring basis during the six months ended June 30, 2026 and year ended December 31, 2025, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of nonaccrual loans whose values were based on real estate 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. 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 25.0 % with a weighted average based on fair values of 25.0 % and a discount factor of 40.0 % with a weighted average based on fair values of 40.0 %, during the six months ended June 30, 2026 and year ended December 31, 2025, respectively. 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 June 30, 2026 and December 31, 2025.
Collateral-dependant nonaccrual loans that have been adjusted to fair value totaled $ 1.3 million during the six months ended June 30, 2026 and year ended December 31, 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 six months ended June 30, 2026 and the year ended December 31, 2025, 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

JUNE 30, 2026
FINANCIAL INSTRUMENT FAIR VALUE (1)
VALUATION TECHNIQUE UNOBSERVABLE INPUTS INPUT VALUES WEIGHTED-AVERAGE INPUT VALUES
Loans $ 1.3 million Market Approach Discount factor applied to real estate collateral-dependent loans to reflect realizable value
25.0 % 25.0 %

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

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

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

42

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 June 30, 2026 and December 31, 2025. The following tables exclude those items measured at fair value on a recurring basis.
TABLE 36: FAIR VALUE OF FINANCIAL INSTRUMENTS
JUNE 30, 2026
    ESTIMATED FAIR VALUE
(In Millions) BOOK VALUE TOTAL ESTIMATED FAIR VALUE LEVEL 1 LEVEL 2 LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks $ 5,736.9   $ 5,736.9   $ 5,736.9   $ —   $ —  
Federal Reserve and Other Central Bank Deposits 50,636.2   50,636.2   —   50,636.2   —  
Interest-Bearing Deposits with Banks 1,544.9   1,544.9   —   1,544.9   —  
Federal Funds Sold and Securities Purchased under Agreements to Resell 426.5   426.5   —   426.5   —  
Debt Securities - Held to Maturity 23,492.1   22,353.5   —   22,353.5   —  
Loans
Held for Investment 43,661.1   43,526.1   —   —   43,526.1  

Other Assets 1,629.9   1,623.4   87.4   1,536.0   —  
FINANCIAL LIABILITIES
Deposits 145,580.0   145,609.7   —   145,609.7   —  
Federal Funds Purchased 1,568.9   1,568.9   —   1,568.9   —  
Securities Sold Under Agreements to Repurchase 175.6   175.6   —   175.6   —  
Other Borrowings 8,627.2   8,637.4   —   8,637.4   —  
Senior Notes 3,331.2   3,378.7   —   3,378.7   —  
Long-Term Debt 2,073.3   2,149.3   —   2,149.3   —  
Unfunded Commitments 323.6   323.6   —   323.6   —  
Other Liabilities 35.7   35.7   —   —   35.7  
    

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

43

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 June 30, 2026 and December 31, 2025.
TABLE 37: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES

JUNE 30, 2026
(In Millions) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE
Available for Sale Debt Securities
U.S. Governments $ 7,872.2   $ 13.1   $ 2.0   $ 7,883.3  

Government Sponsored Agency 19,381.1   26.6   104.9   19,302.8  
Non-U.S. Government 409.0   0.6   1.1   408.5  
Corporate Debt 271.2   0.7   0.5   271.4  
Covered Bonds 277.4   0.2   1.9   275.7  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,674.2   8.3   12.1   4,670.4  
CLOs 3,451.7   2.3   0.3   3,453.7  
Other Asset-Backed 1,349.8   1.5   5.6   1,345.7  
Commercial Mortgage-Backed 511.7   0.4   0.5   511.6  

Total Available for Sale Debt Securities $ 38,198.3   $ 53.7   $ 128.9   $ 38,123.1  
Held to Maturity Debt Securities

Obligations of States and Political Subdivisions $ 2,384.8   $ 1.0   $ 38.3   $ 2,347.5  
Government Sponsored Agency 8,112.8   1.9   804.9   7,309.8  
Non-U.S. Government 4,561.2   1.4   22.0   4,540.6  
Corporate Debt 280.3   —   4.2   276.1  
Covered Bonds 2,114.9   0.1   40.3   2,074.7  
Certificate of Deposit 751.8   0.1   0.1   751.8  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 4,595.4   0.6   56.4   4,539.6  

Other Asset-Backed 47.1   —   —   47.1  
Commercial Mortgage-Backed 37.6   —   1.8   35.8  
Other 606.2   —   175.7   430.5  
Total Held to Maturity Debt Securities $ 23,492.1   $ 5.1   $ 1,143.7   $ 22,353.5  
Total Debt Securities $ 61,690.4   $ 58.8   $ 1,272.6   $ 60,476.6  

44

Notes to Consolidated Financial Statements (unaudited) (continued)

DECEMBER 31, 2025
(In Millions) AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES FAIR VALUE
Available for Sale Debt Securities
U.S. Governments $ 8,148.0   $ 29.5   $ 5.1   $ 8,172.4  
Obligations of States and Political Subdivisions 322.4   —   9.3   313.1  
Government Sponsored Agency 16,616.7   44.1   93.3   16,567.5  
Non-U.S. Government 534.1   —   6.9   527.2  
Corporate Debt 65.1   —   0.7   64.4  
Covered Bonds 275.3   0.4   2.2   273.5  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 5,002.9   11.0   29.6   4,984.3  
CLOs 2,151.3   3.7   0.1   2,154.9  
Other Asset-Backed 569.2   4.0   3.0   570.2  
Commercial Mortgage-Backed 417.4   0.1   8.5   409.0  

Total Available for Sale Debt Securities $ 34,102.4   $ 92.8   $ 158.7   $ 34,036.5  
Held to Maturity Debt Securities

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

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

45

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 38: REMAINING MATURITY OF DEBT SECURITIES

JUNE 30, 2026 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. Governments $ 1,696.8   $ 1,698.3   $ 6,175.4   $ 6,185.0   $ —   $ —   $ —   $ —   $ 7,872.2   $ 7,883.3  

Non-U.S. Government 241.8   241.1   167.2   167.4   —   —   —   —   409.0   408.5  
Corporate Debt —   —   271.2   271.4   —   —   —   —   271.2   271.4  
Covered Bonds 239.6   238.9   37.8   36.8   —   —   —   —   277.4   275.7  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,162.3   1,159.5   3,511.9   3,510.9   —   —   —   —   4,674.2   4,670.4  

Government Sponsored Agency 19,381.1   19,302.8  
Commercial Mortgage-Backed 511.7   511.6  
CLOs 3,451.7   3,453.7  
Other Asset-Backed 1,349.8   1,345.7  
Total Available for Sale Debt Securities $ 3,340.5   $ 3,337.8   $ 10,163.5   $ 10,171.5   $ —   $ —   $ —   $ —   $ 38,198.3   $ 38,123.1  
Held to Maturity Debt Securities

Obligations of States and Political Subdivisions $ 303.5   $ 302.8   $ 1,332.9   $ 1,318.0   $ 726.6   $ 705.8   $ 21.8   $ 20.9   $ 2,384.8   $ 2,347.5  
Non-U.S. Government 3,413.5   3,406.3   1,147.7   1,134.3   —   —   —   —   4,561.2   4,540.6  
Corporate Debt 109.7   108.5   170.6   167.6   —   —   —   —   280.3   276.1  
Covered Bonds 682.5   677.6   1,432.4   1,397.1   —   —   —   —   2,114.9   2,074.7  
Certificate of Deposit 751.8   751.8   —   —   —   —   —   —   751.8   751.8  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,508.7   1,493.4   2,997.3   2,956.6   89.4   89.6   —   —   4,595.4   4,539.6  
Other 76.3   75.0   299.5   270.4   42.8   32.7   187.6   52.4   606.2   430.5  
Government Sponsored Agency 8,112.8   7,309.8  
Commercial Mortgage-Backed 37.6   35.8  

Other Asset-Backed 47.1   47.1  
Total Held to Maturity Debt Securities $ 6,846.0   $ 6,815.4   $ 7,380.4   $ 7,244.0   $ 858.8   $ 828.1   $ 209.4   $ 73.3   $ 23,492.1   $ 22,353.5  
Total Debt Securities $ 10,186.5   $ 10,153.2   $ 17,543.9   $ 17,415.5   $ 858.8   $ 828.1   $ 209.4   $ 73.3   $ 61,690.4   $ 60,476.6  

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.
46

Notes to Consolidated Financial Statements (unaudited) (continued)

There was no provision for credit losses for AFS securities for the three and six months ended June 30, 2026 and a $ 0.9 million and $ 0.7 million provision for credit losses for AFS securities for the three and six months ended June 30, 2025, respectively. There was no allowance for credit losses for AFS securities as of both June 30, 2026 and December 31, 2025. 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 June 30, 2026 and December 31, 2025.
TABLE 39: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED
JUNE 30, 2026 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. Governments $ 730.2   $ 2.0   $ —   $ —   $ 730.2   $ 2.0  

Government Sponsored Agency 7,936.0   41.6   5,781.6   63.3   13,717.6   104.9  
Non-U.S. Government 240.2   0.5   68.2   0.6   308.4   1.1  
Corporate Debt 39.1   0.5   —   —   39.1   0.5  
Covered Bonds 36.8   1.1   64.2   0.8   101.0   1.9  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,087.1   9.9   249.8   2.2   2,336.9   12.1  
CLOs 371.3   0.3   —   —   371.3   0.3  
Other Asset-Backed 906.8   5.2   47.0   0.4   953.8   5.6  
Commercial Mortgage-Backed 100.6   0.2   122.7   0.3   223.3   0.5  

Total $ 12,448.1   $ 61.3   $ 6,333.5   $ 67.6   $ 18,781.6   $ 128.9  

Note: There were no AFS securities with an allowance for credit losses reported as of June 30, 2026. Refer to the discussion below and Note 6, “Allowance for Credit Losses” for further information.

DECEMBER 31, 2025 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
(In Millions) FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES FAIR
VALUE UNREALIZED
LOSSES
U.S. Governments $ —   $ —   $ 194.2   $ 5.1   $ 194.2   $ 5.1  
Obligations of States and Political Subdivisions —   —   313.1   9.3   313.1   9.3  
Government Sponsored Agency 1,288.2   1.7   6,848.5   91.6   8,136.7   93.3  
Non-U.S. Government 329.7   0.1   197.5   6.8   527.2   6.9  
Corporate Debt 21.3   0.4   43.1   0.3   64.4   0.7  
Covered Bonds 80.0   1.0   63.7   1.2   143.7   2.2  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,007.7   2.3   669.1   27.3   1,676.8   29.6  
CLOs 109.9   0.1   —   —   109.9   0.1  
Other Asset-Backed —   —   265.4   3.0   265.4   3.0  
Commercial Mortgage-Backed 54.9   —   186.6   8.5   241.5   8.5  

Total $ 2,891.7   $ 5.6   $ 8,781.2   $ 153.1   $ 11,672.9   $ 158.7  

Note: There were no AFS securities with an allowance for credit losses reported as of December 31, 2025. Refer to the discussion below and Note 6, “Allowance for Credit Losses” for further information.
As of June 30, 2026, 887 AFS debt securities with a combined fair value of $ 18.8  billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $ 128.9  million. As of December 31, 2025, 718 AFS debt securities with a combined fair value of $ 11.7  billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $ 158.7  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.
47

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

JUNE 30, 2026
($ In Millions) AAA AA A BBB NOT RATED TOTAL

Obligations of States and Political Subdivisions $ 993.0   $ 1,377.1   $ 14.7   $ —   $ —   $ 2,384.8  
Government Sponsored Agency 41.6   8,071.2   —   —   —   8,112.8  
Non-U.S. Government 1,275.7   1,457.5   1,813.1   14.9   —   4,561.2  
Corporate Debt 154.6   16.0   109.7   —   —   280.3  
Covered Bonds 2,114.9   —   —   —   —   2,114.9  
Certificate of Deposit —   —   —   —   751.8   751.8  
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 3,316.3   901.7   376.2   1.2   —   4,595.4  

Other Asset-Backed 47.1   —   —   —   —   47.1  
Commercial Mortgage-Backed —   —   37.6   —   —   37.6  
Other —   —   —   —   606.2   606.2  
Total Held to Maturity $ 7,943.2   $ 11,823.5   $ 2,351.3   $ 16.1   $ 1,358.0   $ 23,492.1  
Percent of Total Held to Maturity 34   % 50   % 10   % —   % 6   % 100   %

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

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

Commercial Mortgage-Backed —   37.6   —   —   —   37.6  
Other 53.0   —   —   —   616.2   669.2  
Total Held to Maturity $ 7,015.3   $ 12,092.0   $ 3,245.5   $ 16.1   $ 1,060.7   $ 23,429.6  
Percent of Total Held to Maturity 30   % 52   % 14   % —   % 4   % 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  94 % and 96 % of the HTM portfolio at June 30, 2026 and December 31, 2025, respectively, comprised of securities rated A or higher.
Investment Security Gains and Losses. Proceeds of $ 1.1 billion from the sale of AFS debt securities resulted in an investment security loss of $ 73.9 million for the three and six months ended June 30, 2026. There were no sales of debt securities and no net investment security gains (losses) for the three and six months ended June 30, 2025.
48

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 41: INVESTMENT SECURITY GAINS AND LOSSES

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Gross Realized Debt Securities Gains $ —   $ —   $ —   $ —  
Gross Realized Debt Securities Losses ( 73.9 ) —   ( 73.9 ) —  
Investment Security Gains (Losses), net $ ( 73.9 ) $ —   $ ( 73.9 ) $ —  

TABLE 42: INVESTMENT SECURITY GAINS AND LOSSES BY SECURITY TYPE
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
U.S. Governments $ ( 4.5 ) $ —   $ ( 4.5 ) $ —  
Obligations of States and Political Subdivisions ( 7.9 ) —   ( 7.9 ) —  
Government Sponsored Agency ( 26.0 ) —   ( 26.0 ) —  
Non-U.S. Government ( 4.1 ) —   ( 4.1 ) —  

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds ( 21.3 ) —   ( 21.3 ) —  

Other Asset-Backed ( 0.7 ) —   ( 0.7 ) —  
Commercial Mortgage-Backed ( 9.4 ) —   ( 9.4 ) —  

Total $ ( 73.9 ) $ —   $ ( 73.9 ) $ —  

49

Notes to Consolidated Financial Statements (unaudited) (continued)

Note 5 – Loans
Amounts outstanding for Loans, by segment and class, are shown in the following table.
TABLE 43: LOANS

(In Millions) JUNE 30, 2026 DECEMBER 31, 2025
Commercial (1)

Commercial and Institutional $ 6,776.0   $ 6,595.3  
Commercial Real Estate 5,316.2   5,272.2  
Subscription Finance 4,187.8   3,603.4  
Fund Finance 1,544.5   1,357.7  
Other 3,538.8   3,602.4  
Total Commercial 21,363.3   20,431.0  
Personal (2)

Private Client 15,891.9   15,169.3  
Residential Real Estate 6,050.5   6,121.0  
Other 516.3   227.0  
Total Personal 22,458.7   21,517.3  
Total Loans $ 43,822.0   $ 41,948.3  

(1) Commercial loans include $ 2.8 billion an d $ 2.2 billion o f Non-U.S. exposure as of June 30, 2026, and December 31, 2025, respectively.
(2) Personal loans include $ 822.1 million and $ 657.4 million o f Non-U.S. exposure as of June 30, 2026, and December 31, 2025, respectively.

As of January 1, 2026, Northern Trust refined the presentation of its commercial loan segment to enhance the alignment of segment reporting with business needs, risk characteristics, and management’s approach to monitoring and managing credit performance. As part of this refinement, Subscription Finance and Fund Finance were introduced as separate loan classes. Subscription Finance includes loans to private equity funds that are secured by investors’ contractual commitments to fund capital calls. Fund Finance includes loans and credit lines to all other collective investment funds and to investment managers primarily established for short-term liquidity needs. Fund Finance borrowers generally maintain highly diversified portfolios of liquid securities. Prior period disclosures have been revised to conform to the current period presentation.
Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value of 65 % to 80 % at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance due at maturity. Payments are interest-only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of June 30, 2026 and December 31, 2025, equity credit lines totaled $ 249.4 million and $ 294.0 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 98 % and 96 % of the total equity credit lines, respectively.
Short term advances, primarily related to the processing of custodied client investments, totaled $ 5.2 billion and $ 4.5 billion at June 30, 2026 and December 31, 2025, respectively. Demand deposit overdrafts reclassified as loan balances, primarily in the other personal class, totaled $ 7.5 million and $ 12.0 million as of June 30, 2026 and December 31, 2025, 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 June 30, 2026, compared with $ 6.8 million of loans classified as held for sale as of December 31, 2025. No loans were sold during the three months ended June 30, 2026, and $ 22.9 million of loans were sold during the six months ended June 30, 2026. There were no loans sold for the three and six months ended June 30, 2025.
50

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 PD. Each borrower is rated using one of a number of ratings models or subjective assessment tools, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower ratings models, by loan class:
• Commercial and Institutional: cash flow leverage, profit margin, liquidity, balance sheet leverage;
• Commercial Real Estate: debt service coverage, collateral coverage, debt yield, leasing status, guarantor support;
• Subscription Finance: leverage, return volatility, liquidity, asset quality, and capital levels;
• Fund Finance: leverage, return volatility, liquidity, asset quality, and capital levels;
• Commercial - Other: cash flow leverage, profit margin, liquidity, balance sheet leverage, type of collateral, and collateral coverage;
• Residential Real Estate: payment history, credit bureau scores, collateral coverage;
• Private Client: cash-flow-to-debt and net worth ratios, leverage, type of collateral, collateral coverage; and
• Personal - Other: debt to income metrics, income amounts, sources of income, type of collateral, collateral coverage.
While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually.
Loan segment and class balances as of June 30, 2026 and December 31, 2025 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list, including accrual and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.
51

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 44: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR
June 30, 2026 TERM LOANS REVOLVING LOANS REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions) 2026 2025 2024 2023 2022 PRIOR TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category $ 105.6   $ 381.0   $ 379.6   $ 68.3   $ 43.2   $ 165.2   $ 1,156.7   $ 57.2   $ 2,356.8  
4 to 5 Category 323.8   542.5   590.8   310.3   246.1   206.7   1,925.1   27.9   4,173.2  
6 to 9 Category —   40.2   34.1   44.3   29.3   3.3   80.0   14.8   246.0  
Total Commercial and Institutional 429.4   963.7   1,004.5   422.9   318.6   375.2   3,161.8   99.9   6,776.0  
C&I Gross Charge-offs —   —   —   —   —   ( 0.4 ) —   —   ( 0.4 )
Commercial Real Estate
Risk Rating:
1 to 3 Category 80.8   198.5   83.0   52.5   36.5   138.3   14.3   —   603.9  
4 to 5 Category 459.8   930.5   605.9   1,083.9   763.7   491.4   193.3   22.8   4,551.3  
6 to 9 Category —   71.9   31.7   15.1   38.2   4.1   —   —   161.0  
Total Commercial Real Estate 540.6   1,200.9   720.6   1,151.5   838.4   633.8   207.6   22.8   5,316.2  

Subscription Finance
Risk Rating:
1 to 3 Category 518.4   —   90.5   12.8   —   71.7   3,071.2   —   3,764.6  
4 to 5 Category 11.2   1.8   —   26.3   —   —   381.8   —   421.1  
6 to 9 Category —   —   —   —   —   —   2.1   —   2.1  
Total Subscription Finance 529.6   1.8   90.5   39.1   —   71.7   3,455.1   —   4,187.8  

Fund Finance
Risk Rating:
1 to 3 Category 553.9   —   —   0.4   —   32.1   341.3   —   927.7  
4 to 5 Category 379.2   8.5   —   —   —   —   229.1   —   616.8  

Total Fund Finance 933.1   8.5   —   0.4   —   32.1   570.4   —   1,544.5  

Other
Risk Rating:
1 to 3 Category 1,846.2   —   —   —   —   —   —   —   1,846.2  
4 to 5 Category 1,543.1   —   —   —   —   146.3   —   —   1,689.4  
6 to 9 Category 3.2   —   —   —   —   —   —   —   3.2  
Total Other 3,392.5   —   —   —   —   146.3   —   —   3,538.8  

Total Commercial 5,825.2   2,174.9   1,815.6   1,613.9   1,157.0   1,259.1   7,394.9   122.7   21,363.3  
Commercial Gross Charge-offs —   —   —   —   —   ( 0.4 ) —   —   ( 0.4 )
Personal
Private Client
Risk Rating:
1 to 3 Category 160.0   101.6   145.1   86.4   57.8   40.0   5,339.9   83.0   6,013.8  
4 to 5 Category 212.7   521.8   462.3   129.8   267.5   194.4   7,537.0   459.7   9,785.2  
6 to 9 Category —   17.1   42.5   14.9   —   —   18.4   —   92.9  
Total Private Client 372.7   640.5   649.9   231.1   325.3   234.4   12,895.3   542.7   15,891.9  
Private Client Gross Charge-offs —   —   —   ( 0.2 ) —   —   —   —   ( 0.2 )
Residential Real Estate
Risk Rating:
1 to 3 Category 178.2   356.6   194.7   172.8   527.7   1,719.1   221.7   —   3,370.8  
4 to 5 Category 157.6   246.7   171.4   149.5   326.8   1,314.5   226.8   1.8   2,595.1  
6 to 9 Category —   1.0   —   —   8.7   62.7   12.2   —   84.6  
Total Residential Real Estate 335.8   604.3   366.1   322.3   863.2   3,096.3   460.7   1.8   6,050.5  

Other
Risk Rating:
1 to 3 Category 298.9   —   —   —   —   —   —   —   298.9  
4 to 5 Category 217.4   —   —   —   —   —   —   —   217.4  

Total Other 516.3   —   —   —   —   —   —   —   516.3  

Total Personal 1,224.8   1,244.8   1,016.0   553.4   1,188.5   3,330.7   13,356.0   544.5   22,458.7  
Personal Gross Charge-offs —   —   —   ( 0.2 ) —   —   —   —   ( 0.2 )
Total Loans $ 7,050.0   $ 3,419.7   $ 2,831.6   $ 2,167.3   $ 2,345.5   $ 4,589.8   $ 20,750.9   $ 667.2   $ 43,822.0  
Total Loans Gross Charge-offs $ —   $ —   $ —   $ ( 0.2 ) $ —   $ ( 0.4 ) $ —   $ —   $ ( 0.6 )

52

Notes to Consolidated Financial Statements (unaudited) (continued)

December 31, 2025 TERM LOANS REVOLVING LOANS REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions) 2025 2024 2023 2022 2021 PRIOR TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category $ 276.9   $ 425.1   $ 87.8   $ 205.4   $ 111.8   $ 149.5   $ 1,205.7   $ 57.6   $ 2,519.8  
4 to 5 Category 561.4   661.5   353.9   263.7   219.0   116.6   1,566.1   35.7   3,777.9  
6 to 9 Category 88.8   19.9   50.3   46.2   21.9   2.7   57.5   10.3   297.6  
Total Commercial and Institutional 927.1   1,106.5   492.0   515.3   352.7   268.8   2,829.3   103.6   6,595.3  
C&I Gross Charge-offs —   —   —   —   —   ( 1.4 ) —   —   ( 1.4 )
Commercial Real Estate
Risk Rating:
1 to 3 Category 118.5   98.7   80.8   52.6   157.3   20.8   37.9   —   566.6  
4 to 5 Category 946.7   654.8   1,325.1   831.4   404.3   198.7   195.1   22.9   4,579.0  
6 to 9 Category 71.9   2.0   6.8   45.5   —   0.4   —   —   126.6  
Total Commercial Real Estate 1,137.1   755.5   1,412.7   929.5   561.6   219.9   233.0   22.9   5,272.2  
CRE Gross Charge-offs —   —   —   ( 2.1 ) —   —   —   —   ( 2.1 )
Subscription Finance
Risk Rating:
1 to 3 Category 281.3   68.0   15.4   —   —   74.9   2,879.3   —   3,318.9  
4 to 5 Category —   —   16.1   —   —   —   268.4   —   284.5  

Total Subscription Finance 281.3   68.0   31.5   —   —   74.9   3,147.7   —   3,603.4  

Fund Finance
Risk Rating:
1 to 3 Category 322.6   —   —   14.9   —   37.6   443.7   —   818.8  
4 to 5 Category 404.3   —   0.4   —   —   —   134.2   —   538.9  

Total Fund Finance 726.9   —   0.4   14.9   —   37.6   577.9   —   1,357.7  

Other
Risk Rating:
1 to 3 Category 1,886.3   51.2   —   —   —   —   24.4   —   1,961.9  
4 to 5 Category 1,440.3   18.6   —   —   —   173.6   7.0   —   1,639.5  
6 to 9 Category 1.0   —   —   —   —   —   —   —   1.0  
Total Other 3,327.6   69.8   —   —   —   173.6   31.4   —   3,602.4  

Total Commercial 6,400.0   1,999.8   1,936.6   1,459.7   914.3   774.8   6,819.3   126.5   20,431.0  
Commercial Gross Charge-offs —   —   —   ( 2.1 ) —   ( 1.4 ) —   —   ( 3.5 )
Personal
Private Client
Risk Rating:
1 to 3 Category 149.9   130.7   133.0   58.7   47.2   44.6   5,813.0   38.7   6,415.8  
4 to 5 Category 429.2   581.0   141.7   313.5   151.0   184.2   6,350.9   547.9   8,699.4  
6 to 9 Category 22.6   7.6   15.2   —   —   —   8.7   —   54.1  
Total Private Client 601.7   719.3   289.9   372.2   198.2   228.8   12,172.6   586.6   15,169.3  
Private Client Gross Charge-offs —   —   —   —   —   ( 0.1 ) —   —   ( 0.1 )
Residential Real Estate (RRE)
Risk Rating:
1 to 3 Category 357.1   138.7   131.8   343.3   334.6   993.2   232.3   —   2,531.0  
4 to 5 Category 256.2   264.2   232.1   576.3   658.6   1,313.0   194.3   1.9   3,496.6  
6 to 9 Category 1.0   —   0.9   8.1   31.3   31.6   20.5   —   93.4  
Total Residential Real Estate 614.3   402.9   364.8   927.7   1,024.5   2,337.8   447.1   1.9   6,121.0  
RRE Gross Charge-offs —   —   —   —   —   ( 0.1 ) —   —   ( 0.1 )
Other
Risk Rating:
1 to 3 Category 86.0   —   —   —   —   —   —   —   86.0  
4 to 5 Category 141.0   —   —   —   —   —   —   —   141.0  
Total Other 227.0   —   —   —   —   —   —   —   227.0  
Other Gross Charge-offs ( 0.2 ) —   —   —   —   —   —   —   ( 0.2 )
Total Personal 1,443.0   1,122.2   654.7   1,299.9   1,222.7   2,566.6   12,619.7   588.5   21,517.3  
Personal Gross Charge-Offs ( 0.2 ) —   —   —   —   ( 0.2 ) —   —   ( 0.4 )
Total Loans $ 7,843.0   $ 3,122.0   $ 2,591.3   $ 2,759.6   $ 2,137.0   $ 3,341.4   $ 19,439.0   $ 715.0   $ 41,948.3  
Total Loans Gross Charge-Offs $ ( 0.2 ) $ —   $ —   $ ( 2.1 ) $ —   $ ( 1.6 ) $ —   $ —   $ ( 3.9 )

53

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 of June 30, 2026 and December 31, 2025.
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
June 30, 2026
Commercial
Commercial and Institutional $ 6,721.3   $ 6.8   $ 3.3   $ —   $ 6,731.4   $ 44.6   $ 6,776.0   $ 2.4  
Commercial Real Estate 5,204.6   92.7   11.1   5.7   5,314.1   2.1   5,316.2   2.1  
Subscription Finance 4,166.7   19.6   1.5   —   4,187.8   —   4,187.8   —  
Fund Finance 1,544.3   —   0.2   —   1,544.5   —   1,544.5   —  
Other 3,538.3   —   —   —   3,538.3   0.5   3,538.8   —  
Total Commercial 21,175.2   119.1   16.1   5.7   21,316.1   47.2   21,363.3   4.5  
Personal
Private Client 15,693.1   84.0   91.8   17.6   15,886.5   5.4   15,891.9   —  
Residential Real Estate 6,024.4   1.1   1.6   4.7   6,031.8   18.7   6,050.5   17.7  
Other 516.3   —   —   —   516.3   —   516.3   —  
Total Personal 22,233.8   85.1   93.4   22.3   22,434.6   24.1   22,458.7   17.7  
Total Loans $ 43,409.0   $ 204.2   $ 109.5   $ 28.0   $ 43,750.7   $ 71.3   $ 43,822.0   $ 22.2  

ACCRUAL NONACCRUAL WITH NO ALLOWANCE
(In Millions) CURRENT 30 – 59 DAYS
PAST DUE 60 – 89 DAYS
PAST DUE 90 DAYS
OR MORE
PAST DUE TOTAL ACCRUAL NONACCRUAL TOTAL LOANS
December 31, 2025
Commercial
Commercial and Institutional $ 6,509.6   $ 39.2   $ 0.8   $ 6.0   $ 6,555.6   $ 39.7   $ 6,595.3   $ 21.3  
Commercial Real Estate 5,222.1   37.3   3.6   9.2   5,272.2   —   5,272.2   —  
Subscription Finance 3,562.4   41.0   —   —   3,603.4   —   3,603.4   —  
Fund Finance 1,354.4   —   —   3.3   1,357.7   —   1,357.7   —  
Other 3,601.8   —   —   —   3,601.8   0.6   3,602.4   —  
Total Commercial 20,250.3   117.5   4.4   18.5   20,390.7   40.3   20,431.0   21.3  
Personal
Private Client 15,022.2   128.8   8.5   3.1   15,162.6   6.7   15,169.3   —  
Residential Real Estate 6,050.7   11.7   25.5   3.4   6,091.3   29.7   6,121.0   26.9  
Other 227.0   —   —   —   227.0   —   227.0   —  
Total Personal 21,299.9   140.5   34.0   6.5   21,480.9   36.4   21,517.3   26.9  
Total Loans $ 41,550.2   $ 258.0   $ 38.4   $ 25.0   $ 41,871.6   $ 76.7   $ 41,948.3   $ 48.2  

Interest income that would have been recorded for nonaccrual loans in accordance with their original terms was $ 1.1 million and $ 2.0 million for the three and six months ended June 30, 2026, respectively, and $ 1.3 million and $ 1.9 million for the three and six months ended June 30, 2025, respectively.
Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of June 30, 2026 and December 31, 2025, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. As of June 30, 2026 and December 31, 2025, Northern Trust had loans with a carrying value of $ 3.1 million and $ 7.9 million, respectively, for which formal foreclosure proceedings were in process.
54

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 extension of term, deferrals of principal and interest, interest rate concessions, and other modifications or a combination thereof, and totaled $ 12.0  million and $ 19.7  million for the three and six months ended June 30, 2026 respectively, and $ 18.9  million and $ 32.7  million for the three and six months ended June 30, 2025, respectively. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms.
The effectiveness of Northern Trust’s modification efforts is measured by the loans’ respective past-due status under the modified terms as of the end of the period. As of June 30, 2026, among loans modified within the previous 12 months, $ 0.6  million were 30-89 days past due and $ 0.6  million were 90 days or more past due. As of June 30, 2025, loans that were modified in the previous 12 months and 30-89 days past due totaled $ 4.4  million. There were no loan modifications 90 days past due or more. All modifications to borrowers experiencing financial difficulty continue to be reported as non-accrual loans until the requirements for returning to performing status are met. There were no charge-offs related to modifications to borrowers experiencing financial difficulty that had been modified in the last 12 month for the three and six months ended June 30, 2026, and there were $ 0.1  million in charge-offs for the three and six months ended June 30, 2025.
There were no undrawn loan commitments and $ 0.1  million in standby letters of credit issued to financially distressed borrowers for which Northern Trust has modified the payment terms of the loans as of June 30, 2026. 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 December 31, 2025.

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 financial assets 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 GDP growth, unemployment, non-farm employment, corporate profits, consumer spending, personal income, commercial real estate prices, housing price index, credit spreads, and market volatility. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters. While the primary forecast reflects expectations of steady growth, stable interest rates, and modest labor market improvement, management recognizes that current global conditions continue to be subject to elevated uncertainty. 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 Macroeconomic Scenario Development Committee, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework.
As of June 30, 2026, qualitative adjustments continued to reflect the potential for higher‑than‑anticipated losses on large individual exposures and the possible impact of climate‑related risks on CRE property values. Overall, the qualitative component of the allowance remained stable as of June 30, 2026, compared to December 31, 2025.
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.
55

Notes to Consolidated Financial Statements (unaudited) (continued)

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 six months ended June 30, 2026 and 2025.
TABLE 46: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

THREE MONTHS ENDED JUNE 30, 2026
(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 $ 161.1   $ 25.5   $ 7.7   $ 0.9   $ 195.2  
Charge-Offs ( 0.2 ) —   —   —   ( 0.2 )
Recoveries 0.6   —   —   —   0.6  
Net Recoveries (Charge-Offs) 0.4   —   —   —   0.4  
Provision for Credit Losses (1)
( 0.6 ) ( 3.6 ) ( 1.1 ) —   ( 5.3 )
Balance at End of Period $ 160.9   $ 21.9   $ 6.6   $ 0.9   $ 190.3  
(1) There was no provision for credit losses for the three months ended June 30, 2026 for AFS debt securities. See further detail in Note 4—Securities.

SIX MONTHS ENDED JUNE 30, 2026
(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 $ 164.3   $ 23.3   $ 9.3   $ 1.4   $ 198.3  
Charge-Offs ( 0.6 ) —   —   —   ( 0.6 )
Recoveries 0.9   —   —   —   0.9  
Net Recoveries (Charge-Offs) 0.3   —   —   —   0.3  
Provision for Credit Losses (1)
( 3.7 ) ( 1.4 ) ( 2.7 ) ( 0.5 ) ( 8.3 )
Balance at End of Period $ 160.9   $ 21.9   $ 6.6   $ 0.9   $ 190.3  

(1) There was no provision for credit losses for the six months ended June 30, 2026 for AFS debt securities. See further detail in Note 4—Securitie s.

THREE MONTHS ENDED JUNE 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 $ 167.1   $ 32.8   $ 6.7   $ 0.7   $ 207.3  
Charge-Offs ( 0.1 ) —   —   —   ( 0.1 )
Recoveries 0.4   —   —   —   0.4  
Net Recoveries (Charge-Offs) 0.3   —   —   —   0.3  
Provision for Credit Losses (1)
13.1   1.9   0.2   0.4   15.6  
Balance at End of Period $ 180.5   $ 34.7   $ 6.9   $ 1.1   $ 223.2  

(1) The table excludes a provision for credit losses of $ 0.9 million for the three months ended June 30, 2025 for AFS debt securities. See further detail in Note 4—Securitie s.

SIX MONTHS ENDED JUNE 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 $ 168.0   $ 30.4   $ 6.5   $ 1.0   $ 205.9  
Charge-Offs ( 0.4 ) —   —   —   ( 0.4 )
Recoveries 0.9   —   —   —   0.9  
Net Recoveries (Charge-Offs) 0.5   —   —   —   0.5  
Provision for Credit Losses (1)
12.0   4.3   0.4   0.1   16.8  
Balance at End of Period $ 180.5   $ 34.7   $ 6.9   $ 1.1   $ 223.2  

(1) The table excludes a provision for credit losses of $ 0.7 million for the six months ended June 30, 2025 for AFS debt securities. See further detail in Note 4—Securitie s.
56

Notes to Consolidated Financial Statements (unaudited) (continued)

For the three and six months ended June 30, 2026, there was a negative Provision for Credit Losses of $ 5.3 million and $ 8.3 million, respectively, as compared to a provision of $ 15.6 million and $ 16.8 million for the three and six months ended June 30, 2025, respectively, excluding the provision for AFS debt securities. The negative provision in the current quarter primarily reflected a decrease in the collective reserve, partially offset by an increase in individual reserves. The decrease in the collective reserve was primarily driven by a strengthening macroeconomic outlook and improved credit quality for the CRE and C&I portfolios. The increase in the individual reserve was driven by a small number of non-performing loans. The negative provision in the current-year period was primarily in the C&I portfolio, driven by a strengthening macroeconomic outlook and improved credit quality; partially offset by an increase in specific reserves related to a small number of non-performing loans.
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 six months ended June 30, 2026 and 2025.
TABLE 47: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS

THREE MONTHS ENDED JUNE 30, 2026
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 131.5   $ 29.6   $ 161.1   $ 21.5   $ 4.0   $ 25.5  
Charge-Offs —   ( 0.2 ) ( 0.2 ) —   —   —  
Recoveries —   0.6   0.6   —   —   —  
Net Recoveries (Charge-Offs) —   0.4   0.4   —   —   —  
Provision for Credit Losses ( 0.8 ) 0.2   ( 0.6 ) ( 3.6 ) —   ( 3.6 )
Balance at End of Period $ 130.7   $ 30.2   $ 160.9   $ 17.9   $ 4.0   $ 21.9  

SIX MONTHS ENDED JUNE 30, 2026
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 132.5   $ 31.8   $ 164.3   $ 21.7   $ 1.6   $ 23.3  
Charge-Offs ( 0.4 ) ( 0.2 ) ( 0.6 ) —   —   —  
Recoveries —   0.9   0.9   —   —   —  
Net Recoveries (Charge-Offs) ( 0.4 ) 0.7   0.3   —   —   —  
Provision for Credit Losses ( 1.4 ) ( 2.3 ) ( 3.7 ) ( 3.8 ) 2.4   ( 1.4 )
Balance at End of Period $ 130.7   $ 30.2   $ 160.9   $ 17.9   $ 4.0   $ 21.9  

57

Notes to Consolidated Financial Statements (unaudited) (continued)

THREE MONTHS ENDED JUNE 30, 2025
LOANS UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Balance at Beginning of Period $ 133.6   $ 33.5   $ 167.1   $ 30.7   $ 2.1   $ 32.8  
Charge-Offs —   ( 0.1 ) ( 0.1 ) —   —   —  
Recoveries —   0.4   0.4   —   —   —  
Net Recoveries (Charge-Offs) —   0.3   0.3   —   —   —  
Provision for Credit Losses 12.2   0.9   13.1   1.8   0.1   1.9  
Balance at End of Period $ 145.8   $ 34.7   $ 180.5   $ 32.5   $ 2.2   $ 34.7  

SIX MONTHS ENDED JUNE 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 ( 0.3 ) ( 0.1 ) ( 0.4 ) —   —   —  
Recoveries 0.1   0.8   0.9   —   —   —  
Net Recoveries (Charge-Offs) ( 0.2 ) 0.7   0.5   —   —   —  
Provision for Credit Losses 7.5   4.5   12.0   4.2   0.1   4.3  
Balance at End of Period $ 145.8   $ 34.7   $ 180.5   $ 32.5   $ 2.2   $ 34.7  

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. If the loan valuation is less than the recorded value of the loan, either an allowance is established or a charge-off is recorded for the difference. 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.
58

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 June 30, 2026 and December 31, 2025.
TABLE 48: RECORDED INVESTMENTS IN LOANS

JUNE 30, 2026 DECEMBER 31, 2025
(In Millions) COMMERCIAL PERSONAL TOTAL COMMERCIAL PERSONAL TOTAL
Loans
Evaluated on an Individual Basis $ 56.5   $ 39.5   $ 96.0   $ 55.0   $ 45.9   $ 100.9  
Evaluated on a Collective Basis 21,306.8   22,419.2   43,726.0   20,376.0   21,471.4   41,847.4  
Total Loans 21,363.3   22,458.7   43,822.0   20,431.0   21,517.3   41,948.3  
Allowance for Credit Losses on Loans
Evaluated on an Individual Basis 14.2   5.0   19.2   5.9   4.3   10.2  
Evaluated on a Collective Basis 116.5   25.2   141.7   126.6   27.5   154.1  
Allowance Assigned to Loans 130.7   30.2   160.9   132.5   31.8   164.3  

Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit - Evaluated on a Collective Basis 17.9   4.0   21.9   21.7   1.6   23.3  
Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit $ 148.6   $ 34.2   $ 182.8   $ 154.2   $ 33.4   $ 187.6  

Northern Trust analyzes its exposure to credit losses from both on-balance-sheet and off-balance-sheet activity using a consistent methodology for the quantitative as well as the qualitative framework. For purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes estimated draw downs of the undrawn commitments based on credit utilization factors, resulting in a proportionate amount of expected credit losses.
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 six months ended June 30, 2026 and 2025.
TABLE 49: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES

THREE MONTHS ENDED JUNE 30, 2026
(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 $ 0.2   $ 2.8   $ 2.7   $ 0.7   $ —   $ 1.3   $ 7.7  
Provision for Credit Losses ( 0.1 ) ( 0.4 ) ( 0.5 ) ( 0.2 ) —   0.1   ( 1.1 )
Balance at End of Period $ 0.1   $ 2.4   $ 2.2   $ 0.5   $ —   $ 1.4   $ 6.6  
(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.

SIX MONTHS ENDED JUNE 30, 2026
(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   $ 2.8   $ 2.8   $ 1.1   $ 0.1   $ 2.2   $ 9.3  
Provision for Credit Losses ( 0.2 ) ( 0.4 ) ( 0.6 ) ( 0.6 ) ( 0.1 ) ( 0.8 ) ( 2.7 )
Balance at End of Period $ 0.1   $ 2.4   $ 2.2   $ 0.5   $ —   $ 1.4   $ 6.6  

(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 JUNE 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   $ 2.1   $ 1.1   $ 0.9   $ —   $ 2.3   $ 6.7  
Provision for Credit Losses —   0.1   0.1   —   —   —   0.2  
Balance at End of Period $ 0.3   $ 2.2   $ 1.2   $ 0.9   $ —   $ 2.3   $ 6.9  

(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.
59

Notes to Consolidated Financial Statements (unaudited) (continued)

SIX MONTHS ENDED JUNE 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 —   0.2   0.1   —   —   0.1   0.4  
Balance at End of Period $ 0.3   $ 2.2   $ 1.2   $ 0.9   $ —   $ 2.3   $ 6.9  

(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 $ 0.9 million and $ 1.4 million as of June 30, 2026 and December 31, 2025, 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) JUNE 30, 2026 DECEMBER 31, 2025
Loans $ 191.1   $ 184.6  
Debt Securities
Held to Maturity 95.6   76.9  
Available for Sale 206.4   175.0  
Other Financial Assets 49.4   62.2  
Total $ 542.5   $ 498.7  

The amount of accrued interest reversed through interest income for loans was immaterial for the three and six months ended June 30, 2026 and 2025, and there was no accrued interest reversed through interest income related to debt securities or other financial assets for the three and six months ended June 30, 2026 and 2025.
60

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) JUNE 30, 2026 DECEMBER 31, 2025
Debt Securities (1)
$ 39.6   $ 33.0  
Loans (2)
9.1   9.4  
Total Pledged Assets $ 48.7   $ 42.4  

(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 June 30, 2026 and December 31, 2025, $ 1.8  billion and $ 1.0  billion, respectively, 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) JUNE 30, 2026 DECEMBER 31, 2025
Collateral that may be repledged or sold

   Reverse repurchase agreements (1)(2)
$ 92,474.8   $ 90,475.4  
   Derivative contracts 89.7   2.7  

Total Collateral Accepted $ 92,564.5   $ 90,478.1  

(1) The fair value of securities collateral that was repledged or sold totaled $ 92.0  billion and $ 89.7  billion at June 30, 2026 and December 31, 2025, 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.
As of both June 30, 2026 and December 31, 2025, there were no securities accepted as collateral that could not be repledged or sold.
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 June 30, 2026 and December 31, 2025, these balances totaled $ 1.9  billion and $ 1.8  billion, respectively, and are reported in Cash and Due from Banks on the consolidated balance sheets.
At June 30, 2026 and December 31, 2025, Northern Trust held cash of $ 526.7  million and $ 531.2  million, respectively, to meet non-U.S. reserve requirements. In March 2020, the Federal Reserve’s U.S. reserve requirement was set to zero percent. As a result, there have been no average deposits required to meet Federal Reserve Bank reserve requirements since that time.

Note 8 – Goodwill and Other Intangibles
Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the six months ended June 30, 2026, 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, 2025 $ 632.5   $ 80.4   $ 712.9  

Foreign Exchange Rates ( 3.3 ) —   ( 3.3 )
Balance at June 30, 2026 $ 629.2   $ 80.4   $ 709.6  

Other Intangible Assets . The net carrying amount of other intangible assets was $ 58.0 million and $ 59.6 million as of June 30, 2026 and December 31, 2025, respectively. Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets.
Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of June 30, 2026 and December 31, 2025 were as follows.
61

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 54: CAPITALIZED SOFTWARE

(In Millions) JUNE 30, 2026 DECEMBER 31, 2025
Gross Carrying Amount $ 5,084.3   $ 4,926.2  
Less: Accumulated Amortization 2,873.4   2,574.2  
Net Book Value $ 2,210.9   $ 2,352.0  

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 $ 173.5 million and $ 346.4 million for the three and six months ended June 30, 2026, respectively, and $ 168.0  million and $ 330.9 million for the three and six months ended June 30, 2025, respectively.
Northern Trust recorded a $ 61.5 million expense for the disposal of capitalized software, primarily related to the development of internal-use software that was no longer planned to be placed in service, which is included in Equipment and Software on the consolidated statements of income for the three and six months ended June 30, 2026.

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.
In addition to income and expenses associated with non-recurring activities, Other includes expenses for the Enterprise Chief Operating Office, 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 $ 7.6 million and $ 15.2 million for the three and six months ended June 30, 2026, respectively, and $ 4.7 million and $ 10.3 million for the three and six months ended June 30, 2025, 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.
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 six-month periods ended June 30, 2026 and 2025.
62

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 55: RESULTS OF REPORTING SEGMENTS
($ In Millions) ASSET SERVICING WEALTH MANAGEMENT OTHER TOTAL CONSOLIDATED
THREE MONTHS ENDED JUNE 30, 2026 2025 2026 2025 2026 2025 2026 2025
Noninterest Income
Trust, Investment and Other Servicing Fees $ 757.4 $ 691.8 $ 592.1 $ 539.3 $ — $ — $ 1,349.5 $ 1,231.1
Foreign Exchange Trading Income (Loss) 98.9 61.0 ( 1.8 ) ( 10.4 ) — — 97.1 50.6
Other Noninterest Income 89.3 70.6 35.8 34.6 450.8 0.5 575.9 105.7
Total Noninterest Income 945.6 823.4 626.1 563.5 450.8 0.5 2,022.5 1,387.4
Net Interest Income (Expense) (1)
416.1 347.2 265.3 268.3 ( 5.9 ) ( 5.0 ) 675.5 610.5
Revenue (1)
1,361.7 1,170.6 891.4 831.8 444.9 ( 4.5 ) 2,698.0 1,997.9
Provision for Credit Losses ( 2.7 ) 3.9 ( 1.6 ) 11.2 ( 1.0 ) 1.4 ( 5.3 ) 16.5
Noninterest Expense
Compensation and Benefits 111.7 90.9 176.3 163.6 580.0 478.0 868.0 732.5
Outside Services 31.4 43.5 13.6 17.0 201.3 186.5 246.3 247.0
Allocated Expense 875.3 741.5 348.6 306.7 ( 1,223.9 ) ( 1,048.2 ) — —
Other Segment Items (2)
22.7 19.4 21.0 23.7 480.6 394.0 524.3 437.1
Total Noninterest Expense 1,041.1 895.3 559.5 511.0 38.0 10.3 1,638.6 1,416.6
Income (Loss) before Income Taxes (1)
323.3 271.4 333.5 309.6 407.9 ( 16.2 ) 1,064.7 564.8
Provision for Income Taxes (1)
72.9 58.2 83.2 75.6 116.4 9.7 272.5 143.5
Net Income (Loss) $ 250.4 $ 213.2 $ 250.3 $ 234.0 $ 291.5 $ ( 25.9 ) $ 792.2 $ 421.3
Percentage of Consolidated Net Income 32   % 51   % 32   % 56   % 36   % ( 7 ) % 100   % 100   %
Average Assets $ 123,994.6 $ 117,044.6   $ 39,431.2 $ 39,094.5 $ 150.0 $ 1,580.1 $ 163,575.8 $ 157,719.2
Average Loans $ 5,800.6 $ 5,812.8 $ 35,767.0 $ 35,345.2 $ — $ — $ 41,567.6 $ 41,158.0
Average Deposits $ 100,980.6 $ 95,506.7 $ 26,715.1 $ 25,291.0 $ 150.0 $ 1,580.1 $ 127,845.7 $ 122,377.8

(1) Financial measures stated on an FTE basis. The FTE adjustment was $ 7.6 million and $ 4.7 million for the three months ended June 30, 2026 and 2025, 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.

(In Millions) ASSET SERVICING WEALTH MANAGEMENT OTHER TOTAL CONSOLIDATED
SIX MONTHS ENDED JUNE 30, 2026 2025 2026 2025 2026 2025 2026 2025
Noninterest Income
Trust, Investment and Other Servicing Fees $ 1,497.9 $ 1,363.7 $ 1,193.0 $ 1,081.2 $ — $ — $ 2,690.9 $ 2,444.9
Foreign Exchange Trading Income (Loss) 189.9 124.9 ( 5.1 ) ( 15.6 ) — — 184.8 109.3
Other Noninterest Income (Loss) 174.2 139.2 69.7 68.1 454.6 ( 2.2 ) 698.5 205.1
Total Noninterest Income (Loss) 1,862.0 1,627.8 1,257.6 1,133.7 454.6 ( 2.2 ) 3,574.2 2,759.3
Net Interest Income (Expense) (1)
817.8 670.9 524.8 518.4 ( 13.1 ) ( 10.7 ) 1,329.5 1,178.6
Revenue (1)
2,679.8 2,298.7 1,782.4 1,652.1 441.5 ( 12.9 ) 4,903.7 3,937.9
Provision for Credit Losses ( 5.0 ) 6.0 — 10.3 ( 3.3 ) 1.2 ( 8.3 ) 17.5
Noninterest Expense
Compensation and Employee Benefits 219.2 202.1 353.6 335.3 1,117.4 949.2 1,690.2 1,486.6
Outside Services 61.2 90.2 24.6 31.3 397.2 370.7 483.0 492.2
Allocated Expense 1,663.4 1,451.8 699.4 615.3 ( 2,362.8 ) ( 2,067.1 ) — —
Other Segment Items (2)
44.4 41.7 41.0 46.2 888.0 767.5 973.4 855.4
Total Noninterest Expense 1,988.2 1,785.8 1,118.6 1,028.1 39.8 20.3 3,146.6 2,834.2
Income (Loss) before Income Taxes (1)
696.6 506.9 663.8 613.7 405.0 ( 34.4 ) 1,765.4 1,086.2
Provision for Income Taxes (1)
156.1 109.1 165.6 150.0 125.9 13.8 447.6 272.9
Net Income (Loss) $ 540.5 $ 397.8 $ 498.2 $ 463.7 $ 279.1 $ ( 48.2 ) $ 1,317.8 $ 813.3
Percentage of Consolidated Net Income 41   % 49   % 38   % 57   % 21   % ( 6 ) % 100   % 100   %
Average Assets $ 124,800.1 $ 113,432.9 $ 39,486.2 $ 39,121.2 $ 145.5 $ 1,457.2 $ 164,431.8 $ 154,011.3
Average Loans $ 5,717.0 $ 5,781.2 $ 35,515.8 $ 35,336.2 $ — $ — $ 41,232.8 $ 41,117.4
Average Deposits $ 101,696.8 $ 92,418.8 $ 26,593.1 $ 25,290.3 $ 145.5 $ 1,457.2 $ 128,435.4 $ 119,166.3

(1) Financial measures stated on an FTE basis. The FTE adjustment was $ 15.2 million and $ 10.3 million for the six months ended June 30, 2026 and 2025, 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.
63

Notes to Consolidated Financial Statements (unaudited) (continued)

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 June 30, 2026, 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 June 30, 2026, 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 June 30, 2026 and December 31, 2025 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.
Series E Preferred Stock. As of June 30, 2026, the Corporation had issued and outstanding 16 million depositary shares, each representing 1/1,000th ownership interest in a share of Series E Preferred Stock, issued in November 2019. Equity related to Series E Preferred Stock as of both June 30, 2026 and December 31, 2025 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).
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 April 21, 2026, the Corporation declared a cash dividend of $ 293.75 per share of Series E Preferred Stock payable on July 1, 2026, to stockholders of record as of June 15, 2026.
Common Stock. As of June 30, 2026, the Corporation had issued and outstanding shares of common stock of 245.2 million and 183.0 million, respectively. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other incentive plans. On July 22, 2025, the Board of Directors approved a new repurchase program that authorized the Corporation to repurchase up to $ 2.5  billion of the Corporation’s common stock. This program has no expiration date. Repurchases prior to July 22, 2025 were made pursuant to the stock repurchase authorization approved by the Board of Directors in October 2021. For the three and six months ended June 30, 2026, the Corporation repurchased 2,129,047 and 4,617,195 shares of common stock, respectively, at a total cost of $ 350.6 million ($ 164.65 average price per share) and $ 709.5 million ($ 153.66 average price per share), respectively, including 4,861 and 456,475 shares withheld to satisfy tax withholding obligations related to share-based compensation, respectively. For the three and six months ended June 30, 2025, the Corporation repurchased 3,374,980 and 5,991,218 shares of common stock, respectively, at a total cost of $ 339.4 million ($ 100.57 average price per share) and $ 626.6 million ($ 104.59 average price per share), respectively, including 10,622 and 421,754 shares withheld to satisfy tax withholding obligations related to share-based compensation, respectively.
64

Notes to Consolidated Financial Statements (unaudited) (continued)

Note 11 – Accumulated Other Comprehensive Income (Loss)
The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at June 30, 2026 and 2025, and changes during the three and six months then ended.
TABLE 56: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED JUNE 30, 2026
(In Millions) NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)
NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENTS NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL
Balance at March 31, 2026 $ ( 445.9 ) $ ( 4.4 ) $ 250.5   $ ( 436.8 ) $ ( 636.6 )
Net Change 72.7   ( 1.7 ) 9.0   4.9   84.9  
Balance at June 30, 2026 $ ( 373.2 ) $ ( 6.1 ) $ 259.5   $ ( 431.9 ) $ ( 551.7 )

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM.

SIX MONTHS ENDED JUNE 30, 2026
(In Millions) NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)
NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENTS NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL
Balance at December 31, 2025 $ ( 401.3 ) $ 0.9   $ 248.9   $ ( 439.0 ) $ ( 590.5 )
Net Change 28.1   ( 7.0 ) 10.6   7.1   38.8  
Balance at June 30, 2026 $ ( 373.2 ) $ ( 6.1 ) $ 259.5   $ ( 431.9 ) $ ( 551.7 )

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM.

THREE MONTHS ENDED JUNE 30, 2025
NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES (1)
NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENTS NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS TOTAL
Balance at March 31, 2025 $ ( 527.1 ) $ 0.1   $ 237.8   $ ( 450.3 ) $ ( 739.5 )
Net Change 45.9   ( 0.1 ) ( 7.7 ) 2.2   40.3  
Balance at June 30, 2025 $ ( 481.2 ) $ —   $ 230.1   $ ( 448.1 ) $ ( 699.2 )

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM.

SIX MONTHS ENDED JUNE 30, 2025
NET UNREALIZED GAINS (LOSSES) ON AVAILABLE FOR SALE DEBT SECURITIES(1) NET UNREALIZED GAINS (LOSSES) ON CASH FLOW HEDGES NET FOREIGN CURRENCY ADJUSTMENTS 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 116.9   ( 0.6 ) ( 3.0 ) 1.5   114.8  
Balance at June 30, 2025 $ ( 481.2 ) $ —   $ 230.1   $ ( 448.1 ) $ ( 699.2 )

(1) Includes net unrealized gains (losses) on debt securities transferred from AFS to HTM.

65

Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 57: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED JUNE 30, 2026 2025
(In Millions) PRE-TAX TAX AFTER TAX PRE-TAX TAX AFTER TAX
Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities $ 5.4   $ ( 3.3 ) $ 2.1   $ 37.9   $ ( 11.4 ) $ 26.5  
Reclassification Adjustments for (Gains) Losses Included in Net Income:
Interest Income on Debt Securities (1)
22.7   ( 5.7 ) 17.0   25.7   ( 6.3 ) 19.4  
Net (Gains) Losses on Debt Securities (2)
73.9   ( 20.3 ) 53.6   —   —   —  
Net Change $ 102.0   $ ( 29.3 ) $ 72.7   $ 63.6   $ ( 17.7 ) $ 45.9  
Cash Flow Hedges
Unrealized Gains (Losses) on Cash Flow Hedges $ 6.1   $ ( 2.1 ) $ 4.0   $ 3.2   $ ( 0.7 ) $ 2.5  
Reclassification Adjustment for (Gains) Losses Included in Net Income (3)
( 8.5 ) 2.8   ( 5.7 ) ( 3.4 ) 0.8   ( 2.6 )
Net Change $ ( 2.4 ) $ 0.7   $ ( 1.7 ) $ ( 0.2 ) $ 0.1   $ ( 0.1 )
Foreign Currency Adjustments
Foreign Currency Translation Adjustments $ ( 14.6 ) $ —   $ ( 14.6 ) $ 206.0   $ ( 4.3 ) $ 201.7  
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 0.5   —   0.5   0.4   —   0.4  
Net Investment Hedge Gains (Losses) 30.7   ( 7.6 ) 23.1   ( 278.1 ) 68.3   ( 209.8 )
Net Change $ 16.6   $ ( 7.6 ) $ 9.0   $ ( 71.7 ) $ 64.0   $ ( 7.7 )
Pension and Other Postretirement Benefit Adjustments
Net Actuarial Gains (Losses) $ ( 0.3 ) $ 0.1   $ ( 0.2 ) $ —   $ ( 0.1 ) $ ( 0.1 )
Reclassification Adjustment for (Gains) Losses Included in Net Income (4)

Amortization of Net Actuarial Loss 6.4   ( 1.5 ) 4.9   3.0   ( 0.7 ) 2.3  
Amortization of Prior Service Cost (Credit) 0.3   ( 0.1 ) 0.2   —   —   —  

Net Change $ 6.4   $ ( 1.5 ) $ 4.9   $ 3.0   $ ( 0.8 ) $ 2.2  
Total Net Change $ 122.6   $ ( 37.7 ) $ 84.9   $ ( 5.3 ) $ 45.6   $ 40.3  

(1) The pre-tax reclassification adjustment is related to the unrealized gains (losses) amortization on AFS debt securities that were previously transferred to HTM debt securities. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into Net Interest Income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value.
(2) The net 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 pre-tax reclassification adjustment is recorded in Compensation and Benefits expense on the consolidated statements of income.
66

Notes to Consolidated Financial Statements (unaudited) (continued)

SIX MONTHS ENDED JUNE 30, 2026 2025
(In Millions) PRE-TAX TAX AFTER TAX PRE-TAX TAX AFTER TAX
Available for Sale Debt Securities
Unrealized Gains (Losses) on Available for Sale Debt Securities $ ( 80.9 ) $ 19.8   $ ( 61.1 ) $ 109.1   $ ( 30.3 ) $ 78.8  
Reclassification Adjustments for (Gains) Losses Included in Net Income:
Interest Income on Debt Securities (1)
47.2   ( 11.6 ) 35.6   50.5   ( 12.4 ) 38.1  
Net (Gains) Losses on Debt Securities (2)
73.9   ( 20.3 ) 53.6   —   —   —  
Net Change $ 40.2   $ ( 12.1 ) $ 28.1   $ 159.6   $ ( 42.7 ) $ 116.9  
Cash Flow Hedges
Unrealized Gains (Losses) on Cash Flow Hedges $ 12.5   $ ( 4.5 ) $ 8.0   $ 13.0   $ ( 3.1 ) $ 9.9  
Reclassification Adjustment for (Gains) Losses Included in Net Income (3)
( 21.9 ) 6.9   ( 15.0 ) ( 13.9 ) 3.4   ( 10.5 )
Net Change $ ( 9.4 ) $ 2.4   $ ( 7.0 ) $ ( 0.9 ) $ 0.3   $ ( 0.6 )
Foreign Currency Adjustments
Foreign Currency Translation Adjustments $ ( 77.2 ) $ —   $ ( 77.2 ) $ 297.4   $ ( 4.9 ) $ 292.5  
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 0.9   —   0.9   0.6   —   0.6  
Net Investment Hedge Gains (Losses) 115.3   ( 28.4 ) 86.9   ( 392.4 ) 96.3   ( 296.1 )
Net Change $ 39.0   $ ( 28.4 ) $ 10.6   $ ( 94.4 ) $ 91.4   $ ( 3.0 )
Pension and Other Postretirement Benefit Adjustments
Net Actuarial Gains (Losses) $ ( 5.7 ) $ 2.5   $ ( 3.2 ) $ ( 3.4 ) $ 0.3   $ ( 3.1 )
Reclassification Adjustment for (Gains) Losses Included in Net Income (4)

Amortization of Net Actuarial Loss 12.8   ( 3.1 ) 9.7   6.0   ( 1.4 ) 4.6  
Amortization of Prior Service Cost (Credit) 0.8   ( 0.2 ) 0.6   —   —   —  

Net Change $ 7.9   $ ( 0.8 ) $ 7.1   $ 2.6   $ ( 1.1 ) $ 1.5  
Total Net Change $ 77.7   $ ( 38.9 ) $ 38.8   $ 66.9   $ 47.9   $ 114.8  

(1) The pre-tax reclassification adjustment is related to the unrealized gains (losses) amortization on AFS debt securities that were previously transferred to HTM debt securities. Upon transfer of a debt security from the AFS to HTM classification, the amortized cost is reset to fair value. Any net unrealized gain or loss at the date of transfer will remain in AOCI and be amortized into Net Interest Income over the remaining life of the securities using the effective interest method. The amortization of amounts retained in AOCI will offset the effect on interest income of the amortization of the premium or discount resulting from transferring the securities at fair value.
(2) The net 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 pre-tax reclassification adjustment is recorded in Compensation and Benefits expense on the consolidated statements of income.

Note 12 – Net Income Per Common Share
The computations of net income per common share are presented in the following table.
TABLE 58: NET INCOME PER COMMON SHARE

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
($ In Millions Except Per Common Share Information) 2026 2025 2026 2025
Basic Net Income Per Common Share
Average Number of Common Shares Outstanding 183,993,670   192,751,910   184,742,283   193,965,606  
Net Income $ 792.2   $ 421.3   $ 1,317.8   $ 813.3  
Less: Dividends on Preferred Stock 4.7   4.7   20.9   20.9  
Net Income Applicable to Common Stock 787.5   416.6   1,296.9   792.4  
Less: Earnings Allocated to Participating Securities 5.3   3.8   9.8   7.4  
Earnings Allocated to Common Shares Outstanding 782.2   412.8   1,287.1   785.0  
Basic Net Income Per Common Share $ 4.25   $ 2.14   $ 6.97   $ 4.05  
Diluted Net Income Per Common Share
Average Number of Common Shares Outstanding 183,993,670   192,751,910   184,742,283   193,965,606  
Plus: Dilutive Effect of Share-based Compensation 896,274   622,978   967,502   776,726  
Average Common and Potential Common Shares 184,889,944   193,374,888   185,709,785   194,742,332  
Earnings Allocated to Common and Potential Common Shares $ 782.3   $ 412.8   $ 1,287.0   $ 785.0  
Diluted Net Income Per Common Share 4.23   2.13   6.93   4.03  

Note:    For the three and six months ended June 30, 2026 and 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.
67

Notes to Consolidated Financial Statements (unaudited) (continued)

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. 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 attributable to revenue from contracts with clients primarily consists of service fees for banking‑related services provided to Wealth Management and Asset Servicing clients. Effective in the first quarter of 2026, treasury management fees—representing revenues from cash and liquidity management services provided to Asset Servicing and Wealth Management clients—were reclassified and included within Other Operating Income.
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, banking-related services, and treasury management 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.
The following table presents revenues disaggregated by major revenue source.
TABLE 59: REVENUE DISAGGREGATION

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Noninterest Income
       Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 544.9   $ 498.4   $ 1,076.5   $ 983.5  
Investment Management and Advisory 712.3   649.6   1,429.7   1,297.0  
Securities Lending 29.6   20.3   53.2   38.2  
Other 62.7   62.8   131.5   126.2  
Total Trust, Investment and Other Servicing Fees $ 1,349.5   $ 1,231.1   $ 2,690.9   $ 2,444.9  
Other Noninterest Income
       Foreign Exchange Trading Income $ 97.1   $ 50.6   $ 184.8   $ 109.3  
       Security Commissions and Trading Income 55.6   39.6   107.7   78.7  
       Other Operating Income (1)
594.2   66.1   664.7   126.4  
Investment Security Gains (Losses), net ( 73.9 ) —   ( 73.9 ) —  
Total Other Noninterest Income $ 673.0   $ 156.3   $ 883.3   $ 314.4  
Total Noninterest Income $ 2,022.5   $ 1,387.4   $ 3,574.2   $ 2,759.3  

(1) Beginning in Q1 2026, Treasury Management Fees are included within Other Operating Income. The prior period has been revised to conform to the current year presentation.
68

Notes to Consolidated Financial Statements (unaudited) (continued)

On the consolidated statements of income, Trust, Investment and Other Servicing Fees represents revenue from contracts with clients. For the three months ended June 30, 2026, revenue from contracts with clients also includes $ 53.1 million of the $ 55.6 million total Security Commissions and Trading Income and $ 19.3 million of the $ 594.2 million total Other Operating Income. For the six months ended June 30, 2026 revenue from contracts with clients also includes $ 103.6 million of the $ 107.7 million total Security Commissions and Trading Income and $ 40.1 million of the $ 664.7 million total Other Operating Income.
For the three months ended June 30, 2025, revenue from contracts with clients also includes $ 37.7 million of the $ 39.6 million total Security Commissions and Trading Income and $ 20.1 million of the $ 66.1 million total Other Operating Income. For the six months ended June 30, 2025, revenue from contracts with clients also includes $ 75.8 million of the $ 78.7 million total Security Commissions and Trading Income and $ 40.1 million of the $ 126.4 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 June 30, 2026 and December 31, 2025.
TABLE 60: CLIENT RECEIVABLES

(In Millions) JUNE 30, 2026 DECEMBER 31, 2025
Trust Fees Receivable, net (1)
$ 984.1   $ 956.7  
Other 93.1   105.6  
Total Client Receivables $ 1,077.2   $ 1,062.3  

(1) Trust Fees Receivable is net of a $ 6.5 million and $ 5.0 million fee receivable allowance as of June 30, 2026 and December 31, 2025, respectively.

Note 14 – Net Interest Income
The components of Net Interest Income were as follows.
TABLE 61: NET INTEREST INCOME

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Interest Income
Federal Reserve and Other Central Bank Deposits $ 328.8   $ 436.4   $ 692.3   $ 816.4  
Interest-Bearing Due from and Deposits with Banks (1)
18.2   21.8   37.7   45.2  
Federal Funds Sold and Securities Purchased under Agreements to Resell 783.6   693.2   1,610.5   1,380.0  
Securities — Taxable 517.6   462.2   1,005.1   917.2  
— Nontaxable (2)
0.2   0.3   0.4   0.6  
Loans 517.1   576.3   1,029.3   1,151.2  
Other Interest-Earning Assets (3)
23.8   22.6   48.1   43.1  
Total Interest Income $ 2,189.3   $ 2,212.8   $ 4,423.4   $ 4,353.7  
Interest Expense
Deposits $ 565.0   $ 722.0   $ 1,156.9   $ 1,423.9  
Federal Funds Purchased 19.6   24.4   40.9   48.0  
Securities Sold Under Agreements to Repurchase 769.8   680.6   1,574.2   1,353.8  
Other Borrowings 79.9   80.4   155.4   160.1  
Senior Notes 41.2   39.0   82.3   77.8  
Long-Term Debt 38.3   55.9   84.2   111.5  
Total Interest Expense $ 1,513.8   $ 1,602.3   $ 3,093.9   $ 3,175.1  
Net Interest Income $ 675.5   $ 610.5   $ 1,329.5   $ 1,178.6  

(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.
69

Notes to Consolidated Financial Statements (unaudited) (continued)

Note 15 – Other Operating Income
The components of Other Operating Income were as follows.
TABLE 62: OTHER OPERATING INCOME

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Loan Service Fees $ 11.8   $ 12.5   $ 23.8   $ 26.2  
Banking Service Fees 13.1   14.1   26.4   28.4  
Bank Owned Life Insurance 20.1   19.6   39.6   38.9  
Treasury Management Fees (1)
9.1   9.7   19.4   19.3  
Other Income (2)
540.1   10.2   555.4   13.6  
Total Other Operating Income $ 594.2   $ 66.1   $ 664.7   $ 126.4  

(1) Beginning in Q1 2026, Treasury Management Fees are included within Other Operating Income. The prior period has been revised to conform to the current year presentation.
(2) Other Income includes the mark-to-market loss on derivative swap activity related to previous sales of certain Visa Class B common shares and gains related to Northern Trust’s participation in the Visa Exchange Offer program, including a $ 525.4  million gain for the three and six months ended June 30, 2026 related to Northern Trust’s participation in the second Visa Exchange Offer. Refer to Note 20—Commitments and Contingent Liabilities for further information.

Note 16 – Other Operating Expense
The components of Other Operating Expense were as follows.
TABLE 63: OTHER OPERATING EXPENSE

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
 In Millions) 2026 2025 2026 2025
Business Promotion $ 19.1   $ 22.2   $ 37.0   $ 39.1  
Staff Related 12.3   7.0   22.1   11.2  
FDIC Insurance Premiums 7.4   9.5   15.2   17.4  
Other Expenses 53.5   52.2   107.8   107.2  
Total Other Operating Expense $ 92.3   $ 90.9   $ 182.0   $ 174.9  

70

Notes to Consolidated Financial Statements (unaudited) (continued)

Note 17 – Pension
The following table sets forth the net periodic pension expense for Northern Trust’s U.S. Qualified Plan, U.S. Non-Qualified Plan, and the Non-U.S. Pension Plans for the three and six months ended June 30, 2026 and 2025.
TABLE 64: NET PERIODIC PENSION EXPENSE (BENEFIT)

U.S. QUALIFIED PLAN THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Service Cost $ 14.6   $ 13.7   $ 29.2   $ 27.4  
Interest Cost 15.8   15.5   31.6   31.0  
Expected Return on Plan Assets ( 29.3 ) ( 30.6 ) ( 58.6 ) ( 61.2 )
Amortization
Net Actuarial Loss 5.0   1.9   10.0   3.8  
Net Periodic Pension Expense $ 6.1   $ 0.5   $ 12.2   $ 1.0  

U.S. NON-QUALIFIED PLAN THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Service Cost $ 1.2   $ 1.2   $ 2.4   $ 2.4  
Interest Cost 1.3   1.3   2.6   2.6  
Amortization
Net Actuarial Loss 1.1   1.1   2.2   2.2  
Net Periodic Pension Expense $ 3.6   $ 3.6   $ 7.2   $ 7.2  

NON-U.S. PENSION PLANS THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Service Cost $ 1.3   $ 1.1   $ 2.8   $ 2.1  
Interest Cost 1.6   1.4   3.2   2.7  
Expected Return on Plan Assets ( 2.0 ) ( 1.9 ) ( 4.1 ) ( 3.7 )
Amortization
Net Actuarial Loss 0.3   0.2   0.6   0.3  
Prior Service Cost 0.3   —   $ 0.8   $ —  
Net Periodic Pension Expense $ 1.5   $ 0.8   $ 3.3   $ 1.4  

Note: As of January 1, 2026, certain Gratuity plans for Northern Trust's locations in India have been included in the non‑U.S. pension plan disclosures due to their increased significance. Prior period amounts have been revised to conform to the current year presentation.
The components of net periodic pension expense are recorded in Compensation and Benefits expense on the consolidated statements of income.
There were no contributions to the U.S. Qualified Plan during the six months ended June 30, 2026. There were $ 125.0  million of contributions to the U.S. Qualified Plan during the six months ended June 30, 2025. There were $ 7.2  million and $ 12.9  million of contributions to the U.S. Non-Qualified Plan during the six months ended June 30, 2026 and 2025, respectively.

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.
On June 30, 2026, the Corporation granted 189,720 restricted stock unit awards with a grant-date fair value of $ 33.1  million, which were expensed in their entirety on the date of grant as there was no requisite service period.
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Notes to Consolidated Financial Statements (unaudited) (continued)

Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three and six months ended June 30, 2026 and 2025.
TABLE 65: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Restricted Stock Unit Awards $ 49.7   $ 16.3   $ 107.3   $ 73.8  
Performance Stock Units 3.1   1.9   19.8   16.3  
Total Share-Based Compensation Expense 52.8   18.2   127.1   90.1  
Tax Benefits Recognized $ 12.9   $ 4.5   $ 31.1   $ 22.1  

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 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 primarily VIEs and are reported in Other Assets and Other Liabilities, respectively, on the consolidated balance sheets.
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Notes to Consolidated Financial Statements (unaudited) (continued)

TABLE 66: SUMMARY OF UNCONSOLIDATED TAX CREDIT STRUCTURES

(In Millions) JUNE 30, 2026 DECEMBER 31, 2025
Investment Carrying Amount
Affordable Housing $ 786.9   $ 834.0  
     New Markets 186.1   192.9  
Total Investment Carrying Amount $ 973.0   $ 1,026.9  

Unfunded Commitments (1)

     Affordable Housing $ 323.6   $ 373.0  
Total Unfunded Commitments $ 323.6   $ 373.0  

(1) As of June 30, 2026 and December 31, 2025, there were no unfunded commitments for New Markets.
Northern Trust accounts for qualifying tax credit structures under the proportional amortization method. 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 reported in the Provision for Income Taxes on the consolidated statements of income.
TABLE 67: INCOME TAX CREDITS AND OTHER TAX BENEFITS AND AMORTIZATION EXPENSE ASSOCIATED WITH TAX CREDIT STRUCTURES

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
(In Millions) 2026 2025 2026 2025
Income Tax Credits and Other Income Tax Benefits
Affordable Housing $ 27.7   $ 24.0   $ 55.4   $ 48.0  
     New Markets 3.7   3.9   7.4   7.5  
Total Income Tax Credits and Other Income Tax Benefits $ 31.4   $ 27.9   $ 62.8   $ 55.5  

Amortization Expense
     Affordable Housing $ 23.6   $ 22.2   $ 47.1   $ 43.8  
     New Markets 3.4   3.6   6.8   7.1  
Total Amortization Expense $ 27.0   $ 25.8   $ 53.9   $ 50.9  

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 June 30, 2026, Northern Trust had $ 80.2 million of investments valued using net asset value per share and had no unfunded commitments related to seed capital investments. As of December 31, 2025, Northern Trust had $ 122.9 million seed capital investments valued using net asset value per share and $ 19.6 million unfunded commitments related to seed capital investments.

Note 20 – Commitments and Contingent Liabilities
Off-Balance Sheet Financial Instruments, Guarantees and Other Commitments. Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. The contractual amounts of these instruments represent the maximum potential credit exposure should the instrument be fully drawn upon and the client default. To control the credit risk associated with entering into commitments and issuing letters of credit, Northern Trust subjects such activities to the same credit quality and monitoring controls as its lending activities. Northern Trust does not believe the total contractual amount of these instruments to be representative of its future credit exposure or funding requirements.
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Notes to Consolidated Financial Statements (unaudited) (continued)

The following table provides details of Northern Trust's off-balance sheet financial instruments as of June 30, 2026 and December 31, 2025.
TABLE 68: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS

JUNE 30, 2026 DECEMBER 31, 2025
(In Millions) ONE YEAR AND LESS OVER ONE YEAR TOTAL ONE YEAR AND LESS OVER ONE YEAR TOTAL
Undrawn Commitments (1)
$ 11,198.7   $ 17,346.5   $ 28,545.2   $ 10,959.6   $ 18,154.7   $ 29,114.3  
Standby Letters of Credit and Financial Guarantees (2)(3)
135,166.7   715.1   135,881.8   148,883.9   671.0   149,554.9  
Commercial Letters of Credit 28.4   —   28.4   18.1   0.1   18.2  
Securities Lent with Indemnification 194,000.1   —   194,000.1   170,738.8   —   170,738.8  

Total Off-Balance Sheet Financial Instruments $ 340,393.9   $ 18,061.6   $ 358,455.5   $ 330,600.4   $ 18,825.8   $ 349,426.2  

(1) These amounts exclude $ 142.1 million and $ 175.1 million of commitments participated to others at June 30, 2026 and December 31, 2025, respectively.
(2) These amounts include $ 67.7 million and $ 68.1 million of standby letters of credit secured by cash deposits or participated to others as of June 30, 2026 and December 31, 2025, respectively.
(3) These amounts include a $ 134.2 billion and $ 147.8 billion guarantee to the FICC under the sponsored member program, without taking into consideration the related collateral, as of June 30, 2026 and December 31, 2025, respectively.
Undrawn Commitments generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements.
Standby Letters of Credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants. Since the vast majority of the standby letters of credit are never drawn, the total standby letters of credit amount does not necessarily represent future loans or liquidity requirements.
Financial Guarantees are issued by Northern Trust to guarantee the performance of a client to a third party under certain arrangements.
Commercial Letters of Credit are instruments issued by Northern Trust on behalf of its clients that authorize a third party (the beneficiary) to draw drafts up to a stipulated amount under the specified terms and conditions of the agreement and other similar instruments. Commercial letters of credit are issued primarily to facilitate international trade.
Securities Lent with Indemnification involves Northern Trust acting as an agent in lending securities on behalf of its clients to borrowers who are reviewed and approved by the Northern Trust Capital Markets Credit Committee. In connection with these activities, Northern Trust has issued indemnifications to certain clients against losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral posted. Borrowers are required to fully collateralize securities which are valued on a daily basis and subject to daily collateral calls to maintain the required levels of over-collateralization. The amount of securities loaned subject to indemnification as of June 30, 2026 and December 31, 2025 was $ 194.0 billion and $ 170.7 billion, respectively. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant, and no liability was recorded as of June 30, 2026 or December 31, 2025, related to these indemnifications.
Unsettled Repurchase and Reverse Repurchase Agreements. Northern Trust enters into repurchase agreements and reverse repurchase agreements which may settle at a future date. In repurchase agreements, Northern Trust receives cash from and provides securities as collateral to a counterparty. In reverse repurchase agreements, Northern Trust advances cash to and receives securities as collateral from a counterparty. These transactions are recorded on the consolidated balance sheets on the settlement date. As of June 30, 2026 and December 31, 2025, there were no unsettled repurchase agreements.
Sponsored Member Program . Northern Trust is an approved Government Securities Division (GSD) netting and sponsoring member in the FICC sponsored member program, through which Northern Trust submits eligible repurchase and reverse repurchase transactions in U.S. government securities between Northern Trust and its sponsored member clients for novation and clearing. Northern Trust may sponsor clients to clear their eligible repurchase transactions with the FICC. As a sponsoring member, Northern Trust guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC GSD’s rules. To mitigate Northern Trust’s credit exposure under this guarantee, Northern Trust obtains a security interest in its sponsored member clients’ collateral. See Note 23—Offsetting of Assets and Liabilities for additional information on Northern Trust’s repurchase and reverse repurchase agreements.
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Notes to Consolidated Financial Statements (unaudited) (continued)