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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-36609

NORTHERN TRUST CORPORATION

(Exact name of registrant as specified in its charter)


Delaware			36-2723087
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


50 South LaSalle Street		60603
Chicago,	Illinois	(Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: (312) 630-6000

____________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $1.66 2/3 Par Value	NTRS	The NASDAQ Stock Market LLC
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock	NTRSO	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

At September 30, 2025, 189,117,369 shares of common stock, $1.66 2/3 par value, were outstanding.

NORTHERN TRUST CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025

TABLE OF CONTENTS



			Page
Consolidated Financial Highlights (unaudited)			1

Part I – Financial Information
Items 2 and 3: Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk			3
Item 1: Consolidated Financial Statements (unaudited)			35
Consolidated Balance Sheets			35
Consolidated Statements of Income			36
Consolidated Statements of Comprehensive Income			36
Consolidated Statements of Changes in Stockholders’ Equity			37
Consolidated Statements of Cash Flows			39
Notes to Consolidated Financial Statements			40
Item 4: Controls and Procedures			83

Part II – Other Information
Item 1: Legal Proceedings			84
Item 1A: Risk Factors			84
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds			84
Item 3: Defaults Upon Senior Securities			84
Item 4: Mine Safety Disclosures			84
Item 5: Other Information			85
Item 6: Exhibits			85

Signatures			86

CONSOLIDATED FINANCIAL HIGHLIGHTS

(UNAUDITED)


	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
CONDENSED INCOME STATEMENTS ($ In Millions)	2025		2024		% CHANGE(1)		2025		2024		% CHANGE(1)
Noninterest Income	$	1,434.6	$	1,406.2	2	%	$	4,193.9	$	4,717.5	(11)	%
Net Interest Income	590.8		562.3		5		1,769.4		1,613.3		10
Total Revenue	2,025.4		1,968.5		3		5,963.3		6,330.8		(6)
Provision for Credit Losses	(17.0)		8.0		N/M		0.5		7.5		N/M
Noninterest Expense	1,422.9		1,359.4		5		4,257.1		4,258.0		—
Income before Income Taxes	619.5		601.1		3		1,705.7		2,065.3		(17)
Provision for Income Taxes	161.9		136.2		19		434.8		489.6		(11)
Net Income	$	457.6	$	464.9	(2)	%	$	1,270.9	$	1,575.7	(19)	%


PER COMMON SHARE
Net Income — Basic	$	2.30	$	2.23	3	%	$	6.34	$	7.53	(16)	%
— Diluted	2.29		2.22		3		6.32		7.51		(16)
Cash Dividends Declared Per Common Share	0.80		0.75		7		2.30		2.25		2
Book Value — End of Period (EOP)	63.83		59.85		7		63.83		59.85		7
Market Value — EOP	134.60		90.03		50		134.60		90.03		50


SELECTED BALANCE SHEET DATA ($ In Millions)	SEPTEMBER 30, 2025		DECEMBER 31, 2024		% CHANGE(1)
End of Period:
Total Assets	$	170,263.3	$	155,508.4	9	%
Earning Assets	159,079.4		142,228.0		12
Deposits	135,801.1		122,482.7		11
Stockholders’ Equity	12,956.0		12,788.4		1


	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2025		2024		% CHANGE(1)		2025		2024		% CHANGE(1)
Average Balances:
Total Assets	$	151,041.5	$	146,842.9	3	%	$	153,010.4	$	146,654.8	4	%
Earning Assets	139,338.9		134,767.8		3		141,061.1		134,662.2		5
Deposits	116,700.6		112,560.7		4		118,335.4		112,754.2		5
Stockholders’ Equity	12,707.0		12,474.1		2		12,641.4		12,206.5		4


CLIENT ASSETS ($ In Billions)	SEPTEMBER 30, 2025		DECEMBER 31, 2024		% CHANGE(1)
AUC/A(2)	$	18,247.6	$	16,788.0	9	%
AUC	14,439.1		13,349.2		8
AUM	1,772.7		1,610.4		10

N/M - Not meaningful

(1) Percentage calculations are based on actual balances rather than the rounded amounts presented in the table above.

(2) For the purposes of disclosing AUC/A, to the extent that both custody and administration services are provided, the value of the assets is included only once in this amount.

SELECTED RATIOS AND METRICS


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2025		2024		2025		2024
Financial Ratios:
Return on Average Common Equity	14.8	%	15.4	%	14.0	%	18.2	%

Dividend Payout Ratio	34.9		33.8		36.4		30.0
Net Interest Margin(1)	1.70		1.68		1.69		1.62


	Standardized Approach				Advanced Approach
	September 30, 2025		December 31, 2024		September 30, 2025		December 31, 2024		WELL-CAPITALIZED RATIOS		MINIMUM CAPITAL RATIOS
Capital Ratios:
Northern Trust Corporation
Common Equity Tier 1 Capital	12.4	%	12.4	%	15.1	%	14.5	%	N/A		4.5	%
Tier 1 Capital	13.4		13.3		16.2		15.6		6.0		6.0
Total Capital	15.1		15.1		18.0		17.4		10.0		8.0
Tier 1 Leverage	8.0		8.1		8.0		8.1		N/A		4.0
Supplementary Leverage	N/A		N/A		8.9		8.9		N/A		3.0

The Northern Trust Company
Common Equity Tier 1 Capital	11.8	%	11.4	%	14.5	%	13.6	%	6.5	%	4.5	%
Tier 1 Capital	11.8		11.4		14.5		13.6		8.0		6.0
Total Capital	13.1		12.8		15.9		15.0		10.0		8.0
Tier 1 Leverage	7.0		6.9		7.0		6.9		5.0		4.0
Supplementary Leverage	N/A		N/A		7.7		7.5		3.0		3.0

(1) Net interest margin is presented on a fully taxable equivalent (FTE) basis, a non-generally accepted accounting principle (GAAP) financial measure that facilitates the analysis of asset yields. The net interest margin on a GAAP basis and a reconciliation of net interest income on a GAAP basis to net interest income on an FTE basis are presented in “Reconciliation to Fully Taxable Equivalent” within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section.

PART I – FINANCIAL INFORMATION

Items 2. and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market Risk

The following is management’s discussion and analysis of the financial condition and results of operations (MD&A) of Northern Trust Corporation (Corporation) for the third quarter of 2025. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2024. Investors also should read the section titled “Forward-Looking Statements.”

Certain terms used in this report are defined in the Glossary included in our Annual Report on Form 10-K for the year ended December 31, 2024.

CONSOLIDATED RESULTS OF OPERATIONS

General

The Corporation is a leading provider of asset servicing, wealth management, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation focuses on managing and servicing client assets through 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. Except where the context requires otherwise, the terms “Northern Trust,” “we,” “us,” “our,” “its,” or similar terms mean the Corporation and its subsidiaries on a consolidated basis.

Overview of Financial Results

TABLE 1: FINANCIAL HIGHLIGHTS


	THREE MONTHS ENDED SEPTEMBER 30,										NINE MONTHS ENDED SEPTEMBER 30,
($ In Millions)	2025			2024			CHANGE				2025			2024			CHANGE
Trust, Investment and Other Servicing Fees	$	1,265.5		$	1,196.6		$	68.9	6	%	$	3,710.4		$	3,505.6		$	204.8	6	%
Other Noninterest Income(1)	169.1			209.6			(40.5)		(19)		483.5			1,211.9			(728.4)		(60)
Net Interest Income	590.8			562.3			28.5		5		1,769.4			1,613.3			156.1		10
Total Revenue	$	2,025.4		$	1,968.5		$	56.9	3	%	$	5,963.3		$	6,330.8		$	(367.5)	(6)	%
Provision for Credit Losses	(17.0)			8.0			N/M		N/M		0.5			7.5			N/M		N/M
Noninterest Expense(2)	1,422.9			1,359.4			63.5		5		4,257.1			4,258.0			(0.9)		—
Income before Income Taxes	$	619.5		$	601.1		$	18.4	3	%	$	1,705.7		$	2,065.3		$	(359.6)	(17)	%
Provision for Income Taxes	161.9			136.2			25.7		19		434.8			489.6			(54.8)		(11)
Net Income	$	457.6		$	464.9		$	(7.3)	(2)	%	$	1,270.9		$	1,575.7		$	(304.8)	(19)	%
Preferred Stock Dividends	16.2			16.2			—		—		37.1			37.1			—		—
Net Income Applicable to Common Stock	$	441.4		$	448.7		$	(7.3)	(2)	%	$	1,233.8		$	1,538.6		$	(304.8)	(20)	%
PER COMMON SHARE
Net Income – Basic	$	2.30		$	2.23		$	0.07	3	%	$	6.34		$	7.53		$	(1.19)	(16)	%
– Diluted	2.29			2.22			0.07		3		6.32			7.51			(1.19)		(16)
Cash Dividends Declared Per Common Share	0.80			0.75			0.05		7		2.30			2.25			0.05		2
SELECTED RATIOS AND METRICS
Return on Average Common Equity	14.8		%	15.4		%					14.0		%	18.2		%

(1) For the three months ended September 30, 2024, Other Noninterest Income included a $68.1 million pre-tax gain related to the sale of an equity investment, recorded in Other Operating Income. For the nine months ended September 30, 2024, Other Noninterest Income included a $878.4 million net gain related to Northern Trust’s participation in the Visa Exchange Offer, a $7.6 million impairment charge taken on certain investments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded to Other Operating Income, as well as a $189.3 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recorded in Investment Security Gains (Losses), net.

(2) For the nine months ended September 30, 2024, Noninterest Expense included severance-related charges of $85.2 million, of which $81.8 million was recorded to Compensation expense and $3.4 million was recorded to Outside Services, a $70.0 million charitable contribution to the Northern Trust Foundation, recorded in Other Operating Expense, $16.4 million of software amortization acceleration and dispositions, recorded to Equipment and Software expense, as well as a $14.7 million increase to the Federal Deposit Insurance Corporation (FDIC) special assessment and a $10.6 million legal settlement, both recorded to Other Operating Expense.

N/M - Not meaningful

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Overview of Financial Results (continued)

Three Months Ended September 30, 2025 highlights:

Revenue for the three months ended September 30, 2025 increased from the prior-year quarter to $2.0 billion, reflecting:

◦Trust, Investment and Other Servicing Fees increased to $1.3 billion in the current quarter primarily due to favorable markets.

◦Other Noninterest Income decreased to $169.1 million in the current quarter primarily driven by the $68.1 million gain on the sale of an equity investment in the prior-year quarter, partially offset by lower expenses in the current quarter associated with existing Visa Class B swap agreements.

◦Net Interest Income increased to $590.8 million in the current quarter primarily driven by lower funding costs.

Noninterest Expense increased to $1.4 billion in the current quarter primarily due to higher Compensation and Equipment and Software expense.

*•*In the current quarter, there was a negative Provision for Credit Losses of $17.0 million, as compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter. For additional information, refer to the Provision for Credit Losses within the “Consolidated Results of Operations” section.

The Provision for Income Taxes in the current quarter totaled $161.9 million, representing an effective tax rate of 26.1%. The Provision for Income Taxes in the prior-year quarter totaled $136.2 million, representing an effective tax rate of 22.7%.

Nine Months Ended September 30, 2025 highlights:

Revenue for the nine months ended September 30, 2025 decreased from the prior-year period to $6.0 billion, reflecting:

◦Trust, Investment and Other Servicing Fees increased to $3.7 billion in the current period primarily driven by favorable markets and net new business.

◦Other Noninterest Income decreased to $483.5 million in the current period primarily driven by the $878.4 million net gain related to Northern Trust’s participation in the Visa exchange program and a $68.1 million gain on the sale of an equity investment, partially offset by a $189.3 million AFS debt security loss, a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of security repositioning related to the supplemental pension plan, all recorded in the prior-year period.

◦Net Interest Income increased to $1.8 billion in the current period primarily due to the favorable impact of higher deposits, lower funding costs and higher foreign exchange swap activity executed by our Treasury department.

There was a $0.5 million Provision for Credit Losses in the current period, as compared to a $7.5 million Provision for Credit Losses in the prior-year period. For additional information, refer to the Provision for Credit Losses within “Consolidated Results of Operations” section.
The Provision for Income Taxes for the current period totaled $434.8 million, representing an effective tax rate of 25.5%. The Provision for Income Taxes for the prior-year period totaled $489.6 million, representing an effective tax rate of 23.7%.

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Trust, Investment and Other Servicing Fees

Trust, Investment and Other Servicing Fees are based primarily on the market value of assets held in custody, managed or serviced; the volume of transactions; securities lending volume and spreads; and fees for other services rendered. Certain market value calculations on which fees are based are performed on a monthly or quarterly basis in arrears.

The components of Trust, Investment and Other Servicing Fees are provided below.

TABLE 2: TRUST, INVESTMENT AND OTHER SERVICING FEES


	THREE MONTHS ENDED SEPTEMBER 30,								NINE MONTHS ENDED SEPTEMBER 30,
($ In Millions)	2025		2024		CHANGE				2025		2024		CHANGE
Asset Servicing Trust, Investment and Other Servicing Fees
Custody and Fund Administration	$	482.7	$	453.1	$	29.6	7	%	$	1,405.2	$	1,335.7	$	69.5	5	%
Investment Management	159.6		152.6		7.0		5		469.4		438.3		31.1		7
Securities Lending	21.2		17.5		3.7		21		59.3		51.9		7.4		14
Other	43.4		43.9		(0.5)		(1)		136.7		131.4		5.3		4
Total Asset Servicing Trust, Investment and Other Servicing Fees	$	706.9	$	667.1	$	39.8	6	%	$	2,070.6	$	1,957.3	$	113.3	6	%
Wealth Management Trust, Investment and Other Servicing Fees
Central	$	200.6	$	186.6	$	14.0	8	%	$	578.9	$	545.6	$	33.3	6	%
East	146.0		136.4		9.6		7		426.3		399.0		27.3		7
West	110.5		105.7		4.8		4		324.8		308.9		15.9		5
Global Family Office	101.5		100.8		0.7		1		309.8		294.8		15.0		5
Total Wealth Management Trust, Investment and Other Servicing Fees	$	558.6	$	529.5	$	29.1	5	%	$	1,639.8	$	1,548.3	$	91.5	6	%
Total Consolidated Trust, Investment and Other Servicing Fees	$	1,265.5	$	1,196.6	$	68.9	6	%	$	3,710.4	$	3,505.6	$	204.8	6	%

Asset Servicing

Custody and Fund Administration fees, the largest component of Asset Servicing fees, are driven primarily by values of client assets under custody/administration (AUC/A), transaction volumes and the number of accounts. The asset values used to calculate these fees vary depending on the individual fee arrangements negotiated with each client. Custody fees related to asset values are client-specific and are priced based on month-end market values, quarter-end market values, or the average of month-end market values for the quarter. The fund administration fees that are asset-value-related are priced using month-end, quarter-end, or average daily balances. Investment Management fees are based generally on market values of client AUM throughout the period. Typically, the asset values used to calculate fee revenue are based on a one-month or one-quarter lag. Securities Lending revenue is affected by market values; the demand for securities to be lent, which drives volumes; and the interest rate spread earned on the investment of cash deposited by investment firms as collateral for securities they have borrowed. The Other fee category in Asset Servicing includes products such as investment risk and analytical services, benefit payments, and other services. Revenue from these products is based generally on the volume of services provided or a fixed fee.

Custody and Fund Administration fees increased both from the prior-year quarter and from the prior-year period primarily driven by favorable markets, net new business, and favorable currency movements.

Investment Management fees increased both from the prior-year quarter and from the from the prior-year period primarily due to favorable markets.

Securities Lending increased from the prior-year period primarily due to higher loan volumes.

Wealth Management

Wealth Management fee income is calculated primarily based on market values and is impacted by both one-month and one-quarter lagged asset values.

Fee income in the regions (Central, East and West) increased both from the prior-year quarter and from the prior-year period, primarily due to favorable markets.

Global Family Office fee income increased from the prior-year period, primarily due to favorable markets.

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Trust, Investment and Other Servicing Fees (continued)

Market Indices

The following tables present selected market indices and the percentage changes year-over-year to provide context regarding equity and fixed income market impacts on the Corporation’s results.

TABLE 3: EQUITY MARKET INDICES


	DAILY AVERAGES				PERIOD-END
	THREE MONTHS ENDED SEPTEMBER 30,				AS OF SEPTEMBER 30,
	2025	2024	CHANGE		2025	2024	CHANGE
S&P 500	6,424	5,542	16	%	6,688	5,762	16	%
MSCI EAFE (U.S. dollars)	2,698	2,378	13		2,767	2,469	12
MSCI EAFE (local currency)	1,641	1,507	9		1,677	1,524	10

TABLE 4: FIXED INCOME MARKET INDICES


	AS OF SEPTEMBER 30,
	2025	2024	CHANGE
Barclays Capital U.S. Aggregate Bond Index	2,323	2,258	3	%
Barclays Capital Global Aggregate Bond Index	500	488	2

Client Assets

As noted above, AUC/A and AUM are two of the primary drivers of our Trust, Investment and Other Servicing Fees. For the purposes of disclosing AUC/A, to the extent that both custody and administration services are provided, the value of the assets is included only once in this amount. The following table presents AUC/A by reporting segment.

TABLE 5: ASSETS UNDER CUSTODY / ADMINISTRATION BY REPORTING SEGMENT


	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		CHANGE Q3-25/Q2-25		CHANGE Q3-25/Q3-24
($ In Billions)
Asset Servicing	$	16,990.4	$	16,864.9	$	16,278.0	1	%	4	%
Wealth Management	1,257.2		1,203.4		1,145.0		4		10
Total Assets Under Custody / Administration	$	18,247.6	$	18,068.3	$	17,423.0	1	%	5	%

The following table presents Northern Trust’s assets under custody, a component of AUC/A, by reporting segment.

TABLE 6: ASSETS UNDER CUSTODY BY REPORTING SEGMENT


	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		CHANGE Q3-25/Q2-25		CHANGE Q3-25/Q3-24
($ In Billions)
Asset Servicing	$	13,195.0	$	13,056.5	$	12,662.1	1	%	4	%
Wealth Management	1,244.1		1,187.2		1,132.7		5		10
Total Assets Under Custody	$	14,439.1	$	14,243.7	$	13,794.8	1	%	5	%

Total assets under custody/administration and assets under custody increased from the prior-year quarter primarily driven by favorable markets and favorable currency translation, partially offset by asset outflows.

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Trust, Investment and Other Servicing Fees (continued)

The following table presents the allocation of Northern Trust’s custodied assets by reporting segment.

TABLE 7: ALLOCATION OF ASSETS UNDER CUSTODY


	SEPTEMBER 30, 2025						JUNE 30, 2025						SEPTEMBER 30, 2024
	AS		WM		TOTAL		AS		WM		TOTAL		AS		WM		TOTAL
Equities	49	%	61	%	50	%	49	%	62	%	50	%	48	%	62	%	50	%
Fixed Income Securities	31		13		30		31		13		30		31		13		29
Cash and Other Assets	18		26		19		18		25		19		20		25		20
Securities Lending Collateral	2		—		1		2		—		1		1		—		1

The following table presents Northern Trust’s assets under custody by investment type.

TABLE 8: ASSETS UNDER CUSTODY BY INVESTMENT TYPE


($ In Billions)	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		CHANGE Q3-25/Q2-25		CHANGE Q3-25/Q3-24
Equities	$	7,166.5	$	7,156.8	$	6,799.5	—	%	5	%
Fixed Income Securities	4,297.9		4,203.0		4,031.7		2		7
Cash and Other Assets	2,768.1		2,677.9		2,787.5		3		(1)
Securities Lending Collateral	206.6		206.0		176.1		—		17
Total AUC	$	14,439.1	$	14,243.7	$	13,794.8	1	%	5	%

The following table presents Northern Trust’s AUM by reporting segment.

TABLE 9: ASSETS UNDER MANAGEMENT BY REPORTING SEGMENT


	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		CHANGE Q3-25/Q2-25		CHANGE Q3-25/Q3-24
($ In Billions)
Asset Servicing	$	1,280.1	$	1,229.2	$	1,177.9	4	%	9	%
Wealth Management	492.6		468.5		443.9		5		11
Total AUM	$	1,772.7	$	1,697.7	$	1,621.8	4	%	9	%

Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net new business.

The following table presents the allocation of Northern Trust’s AUM by reporting segment.

TABLE 10: ALLOCATION OF ASSETS UNDER MANAGEMENT


	SEPTEMBER 30, 2025						JUNE 30, 2025						SEPTEMBER 30, 2024
	AS		WM		TOTAL		AS		WM		TOTAL		AS		WM		TOTAL
Equities	55	%	61	%	56	%	54	%	59	%	56	%	55	%	58	%	56	%
Fixed Income Securities	11		19		13		11		20		13		11		20		13
Cash and Other Assets	18		20		19		18		21		19		19		22		20
Securities Lending Collateral	16		—		12		17		—		12		15		—		11

The following table presents Northern Trust’s AUM by investment type.

TABLE 11: ASSETS UNDER MANAGEMENT BY INVESTMENT TYPE


($ In Billions)	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		CHANGE Q3-25/Q2-25		CHANGE Q3-25/Q3-24
Equities	$	1,001.5	$	943.6	$	908.8	6	%	10	%
Fixed Income Securities	230.0		223.5		219.7		3		5
Cash and Other Assets	334.6		324.6		317.2		3		5
Securities Lending Collateral	206.6		206.0		176.1		—		17
Total AUM	$	1,772.7	$	1,697.7	$	1,621.8	4	%	9	%

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Trust, Investment and Other Servicing Fees (continued)

The following table presents activity in consolidated AUM by product.

TABLE 12: ACTIVITY IN CONSOLIDATED ASSETS UNDER MANAGEMENT BY PRODUCT


		THREE MONTHS ENDED
(In Billions)		SEPTEMBER 30, 2025		JUNE 30, 2025		MARCH 31, 2025		DECEMBER 31, 2024		SEPTEMBER 30, 2024
Beginning Balance of AUM		$	1,697.7	$	1,607.8	$	1,610.4	$	1,621.8	$	1,526.7
Net Inflows (Outflows) by Product
	Equities	(14.6)		(25.2)		(9.5)		0.7		(1.1)
	Fixed Income	4.2		(1.4)		(1.0)		3.9		1.0
	Cash and Other Assets	15.3		12.4		7.4		0.1		23.1
	Securities Lending Collateral	0.6		14.9		14.7		0.3		15.4
Net Inflows (Outflows)		5.5		0.7		11.6		5.0		38.4



Total Market Performance, Currency & Other		69.5		89.2		(14.2)		(16.4)		56.7
Ending Balance of AUM		$	1,772.7	$	1,697.7	$	1,607.8	$	1,610.4	$	1,621.8

Other Noninterest Income

The components of Other Noninterest Income are provided below.

TABLE 13: OTHER NONINTEREST INCOME


	THREE MONTHS ENDED SEPTEMBER 30,								NINE MONTHS ENDED SEPTEMBER 30,
($ In Millions)	2025		2024		CHANGE				2025		2024		CHANGE
Foreign Exchange Trading Income	$	57.2	$	54.1	$	3.1	6	%	$	166.5	$	169.5	$	(3.0)	(2)	%
Treasury Management Fees	9.5		8.2		1.3		16		28.8		26.5		2.3		9
Security Commissions and Trading Income	41.8		35.5		6.3		18		120.5		107.7		12.8		12
Other Operating Income	60.6		111.8		(51.2)		(46)		167.7		1,097.5		(929.8)		(85)
Investment Security Gains (Losses), net	—		—		—		N/M		—		(189.3)		189.3		N/M
Total Other Noninterest Income	$	169.1	$	209.6	$	(40.5)	(19)%		$	483.5	$	1,211.9	$	(728.4)	(60)%

N/M - Not meaningful

For the nine months ended September 30, 2025, Security Commissions and Trading Income increased compared to the prior-year period primarily driven by higher revenue from core brokerage.

For the three months ended September 30, 2025 Other Operating Income decreased compared to the prior-year quarter primarily driven by the $68.1 million gain on the sale of an equity investment in the prior-year quarter, partially offset by lower expenses in the current quarter associated with existing Visa Class B swap agreements. For the nine months ended September 30, 2025, Other Operating Income decreased compared to the prior-year period primarily driven by the $878.4 million gain related to Northern Trust’s participation in the Visa exchange program and a $68.1 million gain on the sale of an equity investment, partially offset by a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded in the prior-year period.

For the nine months ended September 30, 2024, Investment Security Gains (Losses), net reflects a $189.3 million available for sale debt security loss related to repositioning of the portfolio.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income

Net Interest Income is defined as the total of Interest Income and amortized fees on earning assets, less Interest Expense on deposits and borrowed funds, adjusted for the impact of interest-related hedging activity. Earning assets—including Federal Funds Sold, Securities Purchased under Agreements to Resell, Interest-Bearing Due From and Deposits with Banks, Federal Reserve and Other Central Bank Deposits, Securities, Loans, and Other Interest-Earning Assets—are financed by a large base of interest-bearing liabilities that include client deposits, short-term borrowings, Senior Notes and Long-Term Debt. Short-term borrowings include Federal Funds Purchased, Securities Sold Under Agreements to Repurchase, and Other Borrowings. Earning assets are also funded by noninterest-bearing funds, which include demand deposits and stockholders’ equity. Net Interest Income is subject to variations in the level and mix of earning assets and interest-bearing funds and their relative sensitivity to interest rates. In addition, the levels of nonaccruing assets and client compensating deposit balances used to pay for services impact Net Interest Income.

Net interest margin is the difference between what we earn on our assets and what we pay for deposits and other sources of funding relative to average interesting-earning assets. The direction and level of interest rates are important factors in our earnings. Net interest margin is calculated by dividing annualized Net Interest Income by average interest-earning assets.

Net Interest Income stated on a fully taxable equivalent (FTE) basis is a non-generally accepted accounting principle (GAAP) financial measure that facilitates the analysis of asset yields. Management believes an FTE presentation provides a clearer indication of net interest margins 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. A reconciliation of Net Interest Income on a GAAP basis to Net Interest Income on an FTE basis is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

The following tables present an analysis of average daily balances and interest rates changes affecting Net Interest Income and an analysis of Net Interest Income changes for the three months ended September 30, 2025.

TABLE 14: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME


(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)	THIRD QUARTER
2025					2024
($ In Millions)	INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)		INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)
Interest-Earning Assets
Federal Reserve and Other Central Bank Deposits	$	326.5	$	33,754.2	3.84	%	$	451.7	$	36,067.3	4.98	%
Interest-Bearing Due from and Deposits with Banks(1)	20.7		5,237.7		1.57		28.5		4,828.1		2.35
Federal Funds Sold and Securities Purchased under Agreements to Resell (2)	711.7		1,300.4		217.12		890.8		977.4		362.57
Debt Securities
Available for Sale	383.0		33,022.7		4.60		379.8		27,462.6		5.50
Held to Maturity	99.8		22,129.7		1.79		107.8		22,834.0		1.88

Total Debt Securities	482.8		55,152.4		3.47		487.6		50,296.6		3.86
Loans(3)	585.1		41,500.6		5.59		646.5		39,884.0		6.45
Other Interest-Earning Assets(4)	23.0		2,393.6		3.81		32.2		2,714.4		4.71
Total Interest-Earning Assets	2,149.8		139,338.9		6.12		2,537.3		134,767.8		7.49
Cash and Due from Banks and Other Central Bank Deposits(5)	—		1,159.3		—		—		1,742.3		—
Other Noninterest-Earning Assets	—		10,543.3		—		—		10,332.8		—
Total Assets	$	—	$	151,041.5	—	%	$	—	$	146,842.9	—	%
Average Source of Funds
Deposits
Savings, Money Market and Other	$	226.2	$	28,348.7	3.16	%	$	238.6	$	25,233.0	3.76	%
Savings Certificates and Other Time	71.8		6,700.1		4.25		86.7		6,639.6		5.19
Non-U.S. Offices — Interest-Bearing	360.4		65,354.5		2.19		548.2		64,347.2		3.39
Total Interest-Bearing Deposits	658.4		100,403.3		2.60		873.5		96,219.8		3.61
Federal Funds Purchased	24.8		2,467.7		3.99		29.6		2,320.9		5.07
Securities Sold under Agreements to Repurchase(2)	695.0		500.4		551.02		869.7		504.3		686.17
Other Borrowings(6)	79.6		6,938.4		4.55		94.8		7,085.9		5.32
Senior Notes	39.3		2,839.6		5.50		44.2		2,795.6		6.30
Long-Term Debt	56.4		4,092.0		5.46		56.1		4,075.1		5.47

Total Interest-Bearing Liabilities	1,553.5		117,241.4		5.26		1,967.9		113,001.6		6.93
Interest Rate Spread	—		—		0.86		—		—		0.56
Demand and Other Noninterest-Bearing Deposits	—		16,297.3		—		—		16,340.9		—
Other Noninterest-Bearing Liabilities	—		4,795.8		—		—		5,026.3		—
Stockholders’ Equity	—		12,707.0		—		—		12,474.1		—
Total Liabilities and Stockholders’ Equity	$	—	$	151,041.5	—	%	$	—	$	146,842.9	—	%
Less: FTE Adjustment	$	5.5	$	—	—	%	$	7.1	$	—	—	%
Net Interest Income/Margin (Unadjusted)	$	590.8	$	—	1.68	%	$	562.3	$	—	1.66	%
Net Interest Income/Margin (FTE Adjusted)(8)	$	596.3	$	—	1.70	%	$	569.4	$	—	1.68	%

*(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)*Includes the impact of balance sheet netting under master netting arrangements of approximately $62.7 billion and $64.3 billion for the three months ended September 30, 2025 and 2024, respectively. Excluding the impact of netting for the three months ended September 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.41% and 5.43%, respectively. Excluding the impact of netting for the three months ended September 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.37% and 5.34%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.

*(3)*Average balances include nonaccrual loans.

*(4)*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.

*(5)*Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits on the consolidated balance sheets.

*(6)*Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

*(7)*Rate calculations are based on actual balances rather than the rounded amounts presented in the table above.

(8) A reconciliation of Net Interest Income on a GAAP basis to Net Interest Income on an FTE basis is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

Net Interest Income for the three months ended September 30, 2025, stated on an FTE basis, increased from the prior-year quarter, primarily driven by lower funding costs.

The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by lower funding costs, partially offset by lower yield on interest-earning assets.

Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Interest-earning deposits decreased 5%, from the prior-year quarter, primarily due to reinvesting into the securities portfolio.

Average Securities increased 10% from the prior-year quarter, reflecting strategic purchases of investment securities primarily in the AFS portfolio with modest duration and reinvesting maturities at higher yields Average taxable Securities were $46.9 billion in the current quarter and $44.0 billion in the prior-year quarter. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.3 billion in the current quarter and $6.3 billion in the prior-year quarter. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4-Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

Average Loans increased 4%, from the prior-year quarter, primarily driven by an increase in average Private Client loans.

Average Other Interest-Earning Assets includes collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $994.6 million, $879.7 million, $342.7 million, $85.0 million, and $70.0 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.

Average Interest-Bearing Deposits increased 4% from the prior-year quarter, primarily due to increased client activity and higher liquidity as a result of market volatility. Average Non-U.S. Offices Interest-Bearing Deposits comprised 65% and 67% of total average Interest-Bearing Deposits for the three months ended September 30, 2025 and 2024, respectively.

The balances within short-term borrowing classifications vary based on funding requirements and strategies, interest rate levels, changes in the volume of lower-cost deposit sources, and the availability of collateral to secure these borrowings.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

The following tables present an analysis of average daily balances and interest rate changes affecting Net Interest Income and an analysis of Net Interest Income changes for the nine months ended September 30, 2025.

TABLE 15: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME


(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)	NINE MONTHS ENDED SEPTEMBER 30,
2025					2024
($ In Millions)	INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)		INTEREST		AVERAGE BALANCE		AVERAGE RATE(7)
Interest-Earning Assets
Federal Reserve and Other Central Bank Deposits	$	1,142.9	$	38,177.7	4.00	%	$	1,369.0	$	35,963.2	5.08	%
Interest-Bearing Due from and Deposits with Banks(1)	65.9		5,146.9		1.71		94.5		4,748.9		2.66
Federal Funds Sold and Securities Purchased under Agreements to Resell (2)	2,091.7		806.0		346.96		2,578.2		743.6		463.18
Debt Securities
Available for Sale	1,102.7		31,545.8		4.67		1,067.8		26,039.7		5.48
Held to Maturity	300.7		21,617.0		1.86		345.0		23,566.3		1.96

Total Debt Securities	1,403.4		53,162.8		3.53		1,412.8		49,606.0		3.80
Loans (3)	1,737.6		41,246.6		5.63		1,953.0		40,831.6		6.39
Other Interest-Earning Assets(4)	72.3		2,521.1		3.83		96.1		2,768.9		4.63
Total Interest-Earning Assets	6,513.8		141,061.1		6.17		7,503.6		134,662.2		7.44
Cash and Due from Banks and Other Central Bank Deposits(5)	—		1,090.5		—		—		1,781.1		—
Other Noninterest-Earning Assets	—		10,858.8		—		—		10,211.5		—
Total Assets	$	—	$	153,010.4	—	%	$	—	$	146,654.8	—	%
Average Source of Funds
Deposits
Savings, Money Market and Other	$	661.5	$	28,291.2	3.13	%	$	748.9	$	26,706.9	3.75	%
Savings Certificates and Other Time	219.2		6,741.4		4.35		223.9		5,743.7		5.21
Non-U.S. Offices — Interest-Bearing	1,201.6		66,658.9		2.41		1,680.7		63,774.2		3.52
Total Interest-Bearing Deposits	2,082.3		101,691.5		2.74		2,653.5		96,224.8		3.68
Federal Funds Purchased	72.8		2,443.7		3.98		101.9		2,659.3		5.12
Securities Sold under Agreements to Repurchase(2)	2,048.8		509.3		537.83		2,535.1		522.9		647.56
Other Borrowings(6)	239.7		6,990.0		4.58		278.7		6,997.6		5.32
Senior Notes	117.1		2,813.4		5.57		132.4		2,757.8		6.41
Long-Term Debt	167.9		4,087.8		5.49		167.4		4,071.1		5.49
Total Interest-Related Funds	4,728.6		118,535.7		5.33		5,869.0		113,233.5		6.92
Interest Rate Spread	—		—		0.84		—		—		0.52
Demand and Other Noninterest-Bearing Deposits	—		16,643.9		—		—		16,529.4		—
Other Noninterest-Bearing Liabilities	—		5,189.4		—		—		4,685.4		—
Stockholders’ Equity	—		12,641.4		—		—		12,206.5		—
Total Liabilities and Stockholders’ Equity	$	—	$	153,010.4	—	%	$	—	$	146,654.8	—	%
Less: FTE Adjustment	$	15.8	$	—	—	%	$	21.3	$	—	—	%
Net Interest Income/Margin (Unadjusted)	$	1,769.4	$	—	1.68	%	$	1,613.3	$	—	1.60	%
Net Interest Income/Margin (FTE Adjusted)(8)	$	1,785.2	$	—	1.69	%	$	1,634.6	$	—	1.62	%

*(2)*Includes the impact of balance sheet netting under master netting arrangements of approximately $62.2 billion and $62.5 billion for the nine months ended September 30, 2025 and 2024, respectively. Excluding the impact of netting for the nine months ended September 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.44% and 5.45%, respectively. Excluding the impact of netting for the nine months ended September 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.36% and 5.37%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.

*(3)*Average balances include nonaccrual loans.

*(5)*Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits on the consolidated balance sheets.

*(6)*Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

*(7)*Rate calculations are based on actual balances rather than the rounded amounts presented in the table above.

*(8)*A reconciliation of Net Interest Income on a GAAP basis to Net Interest Income on an FTE basis is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

Net Interest Income for the nine months ended September 30, 2025, stated on an FTE basis, increased from the prior-year period, primarily driven by the favorable impact of higher deposits and lower funding costs.

The net interest margin on an FTE basis increased from the prior-year period, primarily driven by the favorable impact of lower funding costs, partially offset by lower yields on interest-earning assets.

Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Average Federal Reserve and Other Central Bank Deposits increased 6% from the prior-year period. Average Interest-Bearing Due from and Deposits with Banks increased 8% from the prior-year period. The increase in interest-earning deposits compared to the prior-year is primarily driven by higher client deposits.

Average Securities increased 7%, from the prior-year period reflecting strategic purchases of investment securities primarily in the AFS portfolio. Average taxable Securities were $45.0 billion in the current period and $43.7 billion in the prior-year period. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.2 billion in the current period and $5.9 billion in the prior-year period. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4-Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

Average Loans increased 1%, from the prior-year period, primarily driven by an increase in average Private Client loans, partially offset by a decrease in average Commercial and Institutional loans.

Average Other Interest-Earning Assets includes collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $1.1 billion, $868.5 million, $342.7 million, $85.0 million, and $70.0 million respectively, which are recorded in Other Assets on the consolidated balance sheets.

Average Interest-Bearing Deposits increased 6% from the prior-year period, primarily due to increased client activity and higher liquidity as a result of market volatility. Average non-U.S. offices interest-bearing deposits comprised 66% of total average interest-bearing deposits for both the nine months ended September 30, 2025 and 2024.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

TABLE 16: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE QTD**(1)**


(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)	THREE MONTHS ENDED SEPTEMBER 30, 2025 VS. 2024
	CHANGE DUE TO
(In Millions)	AVERAGE BALANCE		AVERAGE RATE		NET (DECREASE) INCREASE
Increase (Decrease) in Net Interest Income (FTE)
Federal Reserve and Other Central Bank Deposits	$	(51.7)	$	(73.5)	$	(125.2)
Interest-Bearing Due from and Deposits with Banks	0.7		(8.5)		(7.8)
Federal Funds Sold and Securities Purchased under Agreements to Resell (2)	101.3		(280.4)		(179.1)
Debt Securities
Available for Sale	36.0		(32.8)		3.2
Held to Maturity	(4.7)		(3.3)		(8.0)

Total Debt Securities	31.3		(36.1)		(4.8)
Loans	8.7		(70.1)		(61.4)
Other Interest-Earning Assets	(5.3)		(3.9)		(9.2)
Total Interest Income	$	85.0	$	(472.5)	$	(387.5)

Interest-Bearing Deposits
Savings, Money Market and Other	$	52.2	$	(64.6)	$	(12.4)
Savings Certificates and Other Time	1.5		(16.4)		(14.9)
Non-U.S. Offices - Interest-Bearing	15.9		(203.7)		(187.8)
Total Interest-Bearing Deposits	69.6		(284.7)		(215.1)
Federal Funds Purchased	3.0		(7.8)		(4.8)
Securities Sold under Agreements to Repurchase (2)	(1.4)		(173.3)		(174.7)
Other Borrowings	(0.4)		(14.8)		(15.2)
Senior Notes	1.2		(6.1)		(4.9)
Long-Term Debt	0.4		(0.1)		0.3

Total Interest Expense	$	72.4	$	(486.8)	$	(414.4)
Increase in Net Interest Income (FTE)	$	12.6	$	14.3	$	26.9

*(1)*Changes not due solely to average balance changes or rate changes are allocated proportionately to average balance and rate based on their relative absolute magnitudes.

*(2)*Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $(17.5) million and $(161.6) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $(21.4) million and $(153.3) million, respectively.

Notes: Net Interest Income (FTE adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for Loans, Securities and Other Interest-Earning assets. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. See Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income which reflects the applied FTE adjustment. A reconciliation of Net Interest Income and net interest margin on a GAAP basis to Net Interest Income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

Interest revenue on cash collateral positions is reported above within Interest-Bearing Due from and Deposits with Banks, Loans and within Other Interest-Earning Assets. Interest expense on cash collateral positions is reported above within Savings, Money Market and Other and in Non-U.S. Offices Interest-Bearing Deposits. Related cash collateral received from and deposited with derivative counterparties is recorded net of the associated derivative contract in Other Assets and Other Liabilities, respectively.

CONSOLIDATED RESULTS OF OPERATIONS (continued)

Net Interest Income (continued)

TABLE 17: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE YTD**(1)**


(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)	NINE MONTHS ENDED SEPTEMBER 30, 2025 vs. 2024
	CHANGE DUE TO
(In Millions)	AVERAGE BALANCE		AVERAGE RATE		NET (DECREASE) INCREASE
Increase (Decrease) in Net Interest Income (FTE)
Federal Reserve and Other Central Bank Deposits	$	57.8	$	(283.9)	$	(226.1)
Interest-Bearing Due from and Deposits with Banks	5.3		(33.9)		(28.6)
Federal Funds Sold and Securities Purchased under Agreements to Resell (2)	132.7		(619.2)		(486.5)
Debt Securities
Available for Sale	172.6		(137.7)		34.9
Held to Maturity	(30.5)		(13.8)		(44.3)

Total Debt Securities	142.1		(151.5)		(9.4)
Loans and Leases	13.5		(228.9)		(215.4)
Other Interest-Earning Assets	(9.8)		(14.0)		(23.8)
Total Interest Income	$	341.6	$	(1,331.4)	$	(989.8)

Interest-Bearing Deposits
Savings, Money Market and Other	$	92.8	$	(180.2)	$	(87.4)
Savings Certificates and Other Time	49.9		(54.6)		(4.7)
Non-U.S. Offices - Interest-Bearing	133.5		(612.6)		(479.1)
Total Interest-Bearing Deposits	276.2		(847.4)		(571.2)
Federal Funds Purchased	(2.2)		(26.9)		(29.1)
Securities Sold under Agreements to Repurchase (2)	(16.2)		(470.1)		(486.3)
Other Borrowings	(0.1)		(38.9)		(39.0)
Senior Notes	4.7		(20.0)		(15.3)
Long-Term Debt	0.5		—		0.5

Total Interest Expense	$	262.9	$	(1,403.3)	$	(1,140.4)
Increase in Net Interest Income (FTE)	$	78.7	$	71.9	$	150.6

(1) Changes not due solely to average balance changes or rate changes are allocated proportionately to average balance and rate based on their relative absolute magnitudes.

(2) Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 20: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $(7.1) million and $(479.4) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $(10.1) million and $(476.2) million, respectively.

Notes: Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for Loans, Securities and Other Interest-Earning assets. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. See Table 16: Average Consolidated Balance Sheets with Analysis of Net Interest Income which reflects the applied FTE adjustment. A reconciliation of Net Interest Income and net interest margin on a GAAP basis to Net Interest Income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Provision for Credit Losses

For the three months ended September 30, 2025, there was a negative Provision for Credit Losses of $17.0 million, as compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter. The negative provision in the current quarter resulted from a decrease in collective reserves driven by improved macroeconomic factors primarily impacting the Commercial and Institutional (C&I) portfolio and improved projections for Residential Real Estate (RRE). The provision in the prior-year quarter resulted from an increase in collective reserves driven by a small number of downgrades and extensions in the C&I portfolio, as well as, an increase in individual reserves driven by the default of one C&I loan.

Net charge-offs in the current quarter were $0.4 million, reflecting $2.1 million of charge-offs and $1.7 million of recoveries. The prior-year quarter included $2.4 million net recoveries, reflecting $2.4 million of recoveries and de minimus charge-offs.

For the nine months ended September 30, 2025, there was a Provision for Credit Losses of $0.5 million, as compared to a Provision for Credit Losses of $7.5 million in the prior-year period. The provision in the current-year period was primarily due to an increase in specific reserves related to a small number of non-performing loans; partially offset by a decrease in the collective reserve driven by an improved outlook for the Commercial Real Estate (CRE) portfolio. The provision in the prior-year period was primarily due to an increase in collective reserves, partially offset by a decrease in individual reserves. The increase in collective reserves was primarily driven by a small number of downgrades and extensions in the C&I portfolio and by expectations for weaker prices in the CRE portfolio. The decrease in individual reserves was driven by one C&I loan charge-off in the first quarter, partially offset by the default of one C&I loan in the third quarter.

Net recoveries in the current-year period totaled $0.1 million, reflecting $2.6 million of recoveries and 2.5 million of charge-offs. The prior-year period included $7.9 million net charge-offs, reflecting $11.4 million of charge-offs and $3.5 million of recoveries.

For additional discussion of the allowance for credit losses, refer to the “Asset Quality” section in this MD&A.

Noninterest Expense

The components of Noninterest Expense are provided in the following table.

TABLE 18: NONINTEREST EXPENSE


	THREE MONTHS ENDED SEPTEMBER 30,								NINE MONTHS ENDED SEPTEMBER 30,
($ In Millions)	2025		2024		CHANGE				2025		2024		CHANGE
Compensation	$	625.3	$	583.6	$	41.7	7	%	$	1,884.5	$	1,875.9	$	8.6	—	%
Employee Benefits	115.2		109.2		6.0		6		342.6		310.5		32.1		10
Outside Services	248.2		256.3		(8.1)		(3)		740.4		746.5		(6.1)		(1)
Equipment and Software	294.2		270.4		23.8		9		868.8		800.6		68.2		9
Occupancy	55.0		53.8		1.2		2		160.9		162.7		(1.8)		(1)
Other Operating Expense	85.0		86.1		(1.1)		(1)		259.9		361.8		(101.9)		(28)
Total Noninterest Expense	$	1,422.9	$	1,359.4	$	63.5	5	%	$	4,257.1	$	4,258.0	$	(0.9)	—	%

For the three months ended September 30, 2025, Compensation expense, the largest component of Noninterest Expense, increased compared to the prior-year quarter primarily due to base pay adjustments, increased headcount, and higher incentives.

For the nine months ended September 30, 2025, Employee Benefits expense increased compared to the prior-year period primarily driven by higher medical costs.

For the three months ended September 30, 2025, Equipment and Software expense increased compared to the prior-year quarter primarily due to higher software amortization and higher software support and rental expense. For the nine months ended September 30, 2025, Equipment and Software expense increased compared to the prior-year period primarily due to higher software amortization and higher software support and rental expense, partially offset by $16.4 million of software acceleration and disposition charges recorded in the prior year.

For the nine months ended September 30, 2025, Other Operating Expense decreased compared to the prior-year period primarily due to a $70.0 million charitable contribution, a $10.6 million legal settlement, and $14.7 million of additional expense related to the FDIC special assessment, all recorded in the prior year period.

THIRD QUARTER CONSOLIDATED RESULTS OF OPERATIONS (continued)

Provision for Income Taxes

Income tax expense for the three months ended September 30, 2025 was $161.9 million, representing an effective tax rate of 26.1%, compared to $136.2 million in the prior-year quarter, representing an effective tax rate of 22.7%. The effective tax rate increased compared to the prior-year quarter primarily due to favorable discrete tax benefits recognized in the prior year and a higher net tax impact from international operations.

Income tax expense for the nine months ended September 30, 2025 was $434.8 million, representing an effective tax rate of 25.5%, compared to $489.6 million in the prior-year period, representing an effective tax rate of 23.7%. The effective tax rate increased compared to the prior-year period primarily due to favorable discrete tax benefits recognized in the prior year and a higher net tax impact from international operations.

On July 4, 2025, The One Big Beautiful Bill Act (the “Bill”) was enacted into law. The significant provisions of the Bill include the permanent extension and modification of certain provisions of the Tax Cuts and Jobs Act, including international tax provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented in later years. The Company evaluated the provisions of the Bill and determined that there is no material impact on our financial statements.

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 Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $5.5 million and $15.8 million for the three and nine months ended September 30, 2025 respectively, and $7.1 million and $21.3 million for the three and nine months ended September 30, 2024, respectively, in order to reconcile the segment results that are reported on an internal management-reporting basis into consolidated results.

Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a retrospective basis unless it is impractical to do so.

Effective January 2025, certain operations support activities were moved out of Asset Servicing and Wealth Management in connection with the formation of the Enterprise Chief Operating Office. The Enterprise Chief Operating Office provides operational support to Asset Servicing and Wealth Management. Its expenses are included within Other and are fully allocated to Asset Servicing and Wealth Management. Prior-year segment results have been recast, where practical, to reflect the organizational changes.

For further details, please refer to Note 9—Reporting Segments to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

REPORTING SEGMENTS (continued)

The following table presents the earnings contributions and average assets of Northern Trust’s reporting segments for the three- and nine- month periods ended September 30, 2025 and 2024.

TABLE 19: RESULTS OF REPORTING SEGMENTS


($ In Millions)	ASSET SERVICING						WEALTH MANAGEMENT					OTHER(3)						TOTAL CONSOLIDATED
THREE MONTHS ENDED SEPTEMBER 30,	2025			2024			2025		2024			2025			2024			2025			2024
Noninterest Income
Trust, Investment and Other Servicing Fees	$	706.9		$	667.1		$	558.6	$	529.5		$	—		$	—		$	1,265.5		$	1,196.6
Foreign Exchange Trading Income (Loss)	65.5			59.5			(8.3)		(5.4)			—			—			57.2			54.1
Other Noninterest Income (Loss)	77.0			66.7			38.9		35.5			(4.0)			53.3			111.9			155.5
Total Noninterest Income (Loss)	849.4			793.3			589.2		559.6			(4.0)			53.3			1,434.6			1,406.2
Net Interest Income (Expense)(1)	339.9			320.9			257.2		248.8			(6.3)			(7.4)			590.8			562.3
Revenue(1)	1,189.3			1,114.2			846.4		808.4			(10.3)			45.9			2,025.4			1,968.5
Provision for Credit Losses	(6.1)			(0.6)			(12.3)		12.4			1.4			(3.8)			(17.0)			8.0
Noninterest Expense
Compensation	78.8			90.3			143.3		138.7			403.2			354.6			625.3			583.6
Employee Benefits	16.8			18.2			22.5		23.5			75.9			67.5			115.2			109.2
Outside Services	24.0			43.6			14.0		11.6			210.2			201.1			248.2			256.3
Allocated Expense	763.6			682.7			315.3		297.1			(1,078.9)			(979.8)			—			—
Other Segment Items(2)	18.1			21.6			21.2		18.0			394.9			370.7			434.2			410.3
Total Noninterest Expense	901.3			856.4			516.3		488.9			5.3			14.1			1,422.9			1,359.4
Income (Loss) before Income Taxes(1)	294.1			258.4			342.4		307.1			(17.0)			35.6			619.5			601.1
Provision for Income Taxes(1)	64.3			56.7			83.7		76.8			13.9			2.7			161.9			136.2
Net Income (Loss)	$	229.8		$	201.7		$	258.7	$	230.3		$	(30.9)		$	32.9		$	457.6		$	464.9
Percentage of Consolidated Net Income	50		%	43		%	57%		50		%	(7)		%	7		%	100		%	100		%
Average Assets	$	110,056.4		$	107,362.3		$	39,850.2	$	38,734.9		$	1,134.9		$	745.7		$	151,041.5		$	146,842.9
Average Loans	$	5,399.9		$	5,615.8		$	36,100.7	$	34,268.2		$	—		$	—		$	41,500.6		$	39,884.0
Average Deposits	$	90,195.3		$	86,635.7		$	25,370.4	$	25,179.3		$	1,134.9		$	745.7		$	116,700.6		$	112,560.7

(1) Financial measures stated on an FTE basis. The FTE adjustment was $5.5 million and $7.1 million for three months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.

(2) Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense.

(3) Prior-year quarter includes a gain related to the sale of an equity investment.

REPORTING SEGMENTS (continued)


(In Millions)	ASSET SERVICING(3)						WEALTH MANAGEMENT(3)					OTHER(4)					TOTAL CONSOLIDATED
NINE MONTHS ENDED SEPTEMBER 30,	2025			2024			2025		2024			2025		2024			2025			2024
Noninterest Income
Trust, Investment and Other Servicing Fees	$	2,070.6		$	1,957.3		$	1,639.8	$	1,548.3		$	—	$	—		$	3,710.4		$	3,505.6
Foreign Exchange Trading Income (Loss)	190.4			181.6			(23.9)		(12.1)			—		—			166.5			169.5
Other Noninterest Income (Loss)	216.2			196.8			107.0		104.0			(6.2)		741.6			317.0			1,042.4
Total Noninterest Income (Loss)	2,477.2			2,335.7			1,722.9		1,640.2			(6.2)		741.6			4,193.9			4,717.5
Net Interest Income (Expense)(1)	1,010.8			896.2			775.6		734.4			(17.0)		(17.3)			1,769.4			1,613.3
Revenue(1)	3,488.0			3,231.9			2,498.5		2,374.6			(23.2)		724.3			5,963.3			6,330.8
Provision for Credit Losses	(0.1)			(1.9)			(2.0)		15.7			2.6		(6.3)			0.5			7.5
Noninterest Expense
Compensation	249.1			318.4			434.4		438.6			1,201.0		1,118.9			1,884.5			1,875.9
Employee Benefits	50.8			52.3			67.1		64.7			224.7		193.5			342.6			310.5
Outside Services	114.2			145.6			45.3		34.1			580.9		566.8			740.4			746.5
Allocated Expense	2,213.5			2,037.7			929.9		901.0			(3,143.4)		(2,938.7)			—			—
Other Segment Items(2)	59.9			66.5			67.5		58.4			1,162.2		1,200.2			1,289.6			1,325.1
Total Noninterest Expense	2,687.5			2,620.5			1,544.2		1,496.8			25.4		140.7			4,257.1			4,258.0
Income (Loss) before Income Taxes(1)	800.6			613.3			956.3		862.1			(51.2)		589.9			1,705.7			2,065.3
Provision for Income Taxes(1)	173.2			134.5			233.8		216.7			27.8		138.4			434.8			489.6
Net Income (Loss)	$	627.4		$	478.8		$	722.5	$	645.4		$	(79.0)	$	451.5		$	1,270.9		$	1,575.7
Percentage of Consolidated Net Income	49		%	30		%	57%		41		%	(6)%		29		%	100		%	100		%
Average Assets	$	112,297.8		$	107,447.0		$	39,364.0	$	38,629.2		$	1,348.6	$	578.6		$	153,010.4		$	146,654.8
Average Loans	$	5,652.7		$	6,329.8		$	35,593.9	$	34,501.8		$	—	$	—		$	41,246.6		$	40,831.6
Average Deposits	$	91,669.5		$	86,516.2		$	25,317.3	$	25,659.4		$	1,348.6	$	578.6		$	118,335.4		$	112,754.2

(1) Financial measures stated on an FTE basis. The FTE adjustment was $15.8 million and $21.3 million for nine months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.

(2) Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense.

(3) Prior-year period items including severance-related charges, software amortization acceleration and dispositions, and a securities repositioning related to the supplemental pension plan, are allocated to the Reporting Segments based on the nature of the item.

(4) Includes the net gain related to Northern Trust’s participation in the Visa Exchange Offer, a gain related to the sale of an equity investment, partially offset by a loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, all in the prior-year period.

Asset Servicing

Asset Servicing Trust, Investment and Other Servicing Fees

For an explanation of Asset Servicing Trust, Investment and Other Servicing Fees, please see the “Trust, Investment and Other Servicing Fees” section within the Consolidated Results of Operations section.

Asset Servicing Foreign Exchange Trading Income

Foreign Exchange Trading Income increased $6.0 million, or 10%, from the prior-year quarter and increased $8.8 million, or 5% from the prior-year period, primarily driven by higher trading volumes.

Asset Servicing Other Noninterest Income

Other Noninterest Income increased $10.3 million, or 15%, from the prior-year quarter and increased $19.4 million, or 10% from the prior-year period, primarily driven by Security Commissions and Trading Income due to higher core brokerage income.

Asset Servicing Net Interest Income

Net Interest Income stated on an FTE basis increased $19.0 million, or 6%, from the prior-year quarter and increased $114.6 million, or 13% from the prior-year period, primarily due to the favorable impact of higher deposits and lower funding costs.

Asset Servicing Provision for Credit Losses

The negative Provision for Credit Losses for the three and nine months ended September 30, 2025, reflected a decrease in the collective reserve driven by improved macroeconomic factors primarily in the C&I portfolio.

REPORTING SEGMENTS (continued)

Asset Servicing (continued)

Asset Servicing Noninterest Expense

Noninterest Expense increased $44.9 million, or 5%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.

Wealth Management

Wealth Management Trust, Investment and Other Servicing Fees

For an explanation of Wealth Management Trust, Investment and Other Servicing Fees, please see the “Trust, Investment and Other Servicing Fees” section within the Consolidated Results of Operations section.

Wealth Management Foreign Exchange Trading Income (Loss)

Foreign Exchange Trading Income decreased $11.8 million, or 98%, from the prior-year period, primarily driven by the allocation of losses from Treasury swap activity.

Wealth Management Net Interest Income

Net Interest Income increased $41.2 million, or 6%, from the prior-year period, primarily due to lower funding costs, partially offset by a decline in loan yields.

Wealth Management Provision for Credit Losses

The negative Provision for Credit Losses for the three months ended September 30, 2025, reflected a decrease in the collective reserve driven by improved macroeconomic factors for the C&I portfolio and improved projections for RRE. The negative Provision for Credit Losses for the nine months ended September 30, 2025 reflected a decrease in collective reserves driven by an improved industry outlook for the CRE portfolio; partially offset by an increase in specific reserves related to a small number of non-performing loans.

Wealth Management Noninterest Expense

Noninterest Expense increased $27.4 million, or 6%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.

Other

Other—Noninterest Income

Other Noninterest Income decreased $57.3 million, or 108%,from the prior-year quarter primarily due to the $68.1 million gain related to the sale of an equity investment in the prior-year quarter; partially offset by lower expenses in the current quarter associated with Visa Swap agreements. Other Noninterest Income decreased $747.8 million, or 101%, from the prior-year period primarily due to the $878.4 million net gain from Northern Trust’s participation in the Visa Exchange Offer and the $68.1 million gain related to the sale of an equity investment; partially offset by the $189.3 million loss on sale of available for sale debt securities arising from a repositioning of the portfolio, all of which occurred in the prior-year period.

Other—Noninterest Expense

Other Noninterest Expense decreased $8.8 million, or 62%, from the prior-year quarter primarily due to lower expense related to the FDIC Special Assessment. Other Noninterest Expense decreased $115.3 million, or 82%, from the prior-year period, primarily due to a $70.0 million charitable contribution, $14.7 million FDIC special assessment, and $10.6 million legal settlement, all recorded in the prior-year period.

CONSOLIDATED BALANCE SHEET

The following table summarizes selected consolidated balance sheet information.

TABLE 20: SELECT CONSOLIDATED BALANCE SHEET INFORMATION


($ In Billions)	SEPTEMBER 30, 2025		DECEMBER 31, 2024		CHANGE
Assets
Federal Reserve and Other Central Bank Deposits	$	49.3	$	38.8	$	10.5	27	%
Interest-Bearing Due from and Deposits with Banks(1)	6.4		5.6		0.8		15
Federal Funds Sold and Securities Purchased under Agreements to Resell	1.9		0.4		1.5		N/M
Total Debt Securities	55.9		51.3		4.6		9
Loans	42.9		43.4		(0.5)		(1)
Other Interest-Earning Assets(2)	2.7		2.7		—		(3)
Total Earning Assets	159.1		142.2		16.9		12
Total Assets	170.3		155.5		14.8		9
Liabilities and Stockholders' Equity
Total Interest-Bearing Deposits	109.9		98.1		11.8		12
Demand and Other Noninterest-Bearing Deposits	25.9		24.4		1.5		6
Federal Funds Purchased	1.8		2.2		(0.4)		(19)
Securities Sold under Agreements to Repurchase	0.4		0.5		(0.1)		(20)
Other Borrowings(3)	6.6		6.5		0.1		1
Total Stockholders’ Equity	13.0		12.8		0.2		1

(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) Other Interest-Earning Assets includes 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.

(3) Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.

During the three and nine months ended September 30, 2025, the Corporation declared cash dividends totaling $154.3 million and $448.7 million to common stockholders, and cash dividends totaling $16.2 million and $37.1 million to preferred stockholders, respectively. During the three and nine months ended September 30, 2024, the Corporation declared cash dividends totaling $151.6 million and $459.3 million to common stockholders, and cash dividends totaling $16.2 million and $37.1 million to preferred stockholders, respectively.

ASSET QUALITY

Securities Portfolio

Northern Trust maintains a high quality debt securities portfolio. The following tables provide the book value of debt securities by credit rating using ratings from Moody’s, S&P Global or Fitch Ratings. Book value is fair value for AFS debt securities and amortized cost for HTM debt securities. Debt securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.

TABLE 21: BOOK VALUE OF DEBT SECURITIES BY CREDIT RATING


	SEPTEMBER 30, 2025
($ In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
Available for Sale
U.S. Government	$	—		$	8,155.0		$	—		$	—		$	—		$	8,155.0
Obligations of States and Political Subdivisions	40.5			270.2			—			—			—			310.7
Government Sponsored Agency	—			16,441.5			—			—			—			16,441.5
Non-U.S. Government	260.3			55.0			—			—			—			315.3
Corporate Debt	—			64.6			42.3			—			—			106.9
Covered Bonds	229.2			43.6			—			—			—			272.8
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,230.9			559.2			196.6			—			—			4,986.7
Other Asset-Backed	1,726.2			84.0			—			—			—			1,810.2
Commercial Mortgage-Backed	472.4			17.7			—			—			—			490.1
Total Available for Sale	$	6,959.5		$	25,690.8		$	238.9		$	—		$	—		$	32,889.2
Percent of Total Available for Sale	21		%	78		%	1		%	—		%	—		%	100		%
Held to Maturity
Obligations of States and Political Subdivisions	$	1,002.6		$	1,473.4		$	—		$	—		$	—		$	2,476.0
Government Sponsored Agency	—			8,512.4			—			—			—			8,512.4
Non-U.S. Government	596.1			1,196.5			1,268.7			344.3			—			3,405.6
Corporate Debt	159.4			150.5			97.3			—			—			407.2
Covered Bonds	1,290.2			253.2			—			—			—			1,543.4
Certificates of Deposit	—			861.3			—			—			50.7			912.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,819.0			1,176.7			50.5			1.2			—			5,047.4

Commercial Mortgage-Backed	—			37.6			—			—			—			37.6
Other	53.3			—			—			—			580.0			633.3
Total Held to Maturity	$	6,920.6		$	13,661.6		$	1,416.5		$	345.5		$	630.7		$	22,974.9
Percent of Total Held to Maturity	30		%	59		%	6		%	2		%	3		%	100		%
Total Debt Securities	$	13,880.1		$	39,352.4		$	1,655.4		$	345.5		$	630.7		$	55,864.1
Percent of Total Debt Securities	25		%	70		%	3		%	1		%	1		%	100		%

ASSET QUALITY (continued)

Securities Portfolio (continued)


	DECEMBER 31, 2024
($ In Millions)	AAA			AA			A			BBB			NOT RATED			TOTAL
Available for Sale Debt Securities
U.S. Government	$	7,367.5		$	—		$	—		$	—		$	—		$	7,367.5
Obligations of States and Political Subdivisions	38.5			259.1			—			—			—			297.6
Government Sponsored Agency	13,288.9			—			—			—			—			13,288.9
Non-U.S. Government	296.8			—			—			—			—			296.8
Corporate Debt	4.6			54.7			104.5			—			—			163.8
Covered Bonds	230.9			—			—			—			—			230.9
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	4,021.4			446.6			115.1			—			—			4,583.1
Other Asset-Backed	2,182.7			—			—			—			—			2,182.7
Commercial Mortgage-Backed	571.2			19.0			—			—			—			590.2
Total Available for Sale	$	28,002.5		$	779.4		$	219.6		$	—		$	—		$	29,001.5
Percent of Total Available for Sale	96		%	3		%	1		%	—		%	—		%	100		%
Held to Maturity
Obligations of States and Political Subdivisions	$	1,024.3		$	1,523.9		$	—		$	—		$	—		$	2,548.2
Government Sponsored Agency	8,635.0			—			—			—			—			8,635.0
Non-U.S. Government	700.0			704.2			2,020.1			311.5			—			3,735.8
Corporate Debt	—			191.5			160.1			—			—			351.6
Covered Bonds	1,776.8			—			—			—			—			1,776.8
Certificates of Deposit	316.6			—			—			—			19.4			336.0
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	3,132.8			984.5			28.5			1.1			—			4,146.9
Other Asset-Backed	107.1			—			—			—			—			107.1
Commercial Mortgage-Backed	37.6			—			—			—			—			37.6
Other	50.7			—			—			—			571.0			621.7
Total Held to Maturity	$	15,780.9		$	3,404.1		$	2,208.7		$	312.6		$	590.4		$	22,296.7
Percent of Total Held to Maturity	71		%	15		%	10		%	1		%	3		%	100		%
Total Debt Securities	$	43,783.4		$	4,183.5		$	2,428.3		$	312.6		$	590.4		$	51,298.2
Percent of Total Debt Securities	85		%	8		%	5		%	1		%	1		%	100		%

Moody's downgraded the long-term credit rating of the U.S. from Aaa to Aa1 in May 2025. As a result, U.S. treasuries and government sponsored agency securities are now AA rated in the table dated September 30, 2025 above.

As of September 30, 2025 and December 31, 2024, HTM debt securities not rated by Moody’s, S&P Global or Fitch Ratings primarily consisted of certificates of deposit with a remaining life of less than six months, as well as investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (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.

For additional information relating to the securities portfolio, refer to Note 4, “Securities” to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

Short-Term Borrowings

Short-term borrowings includes Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Other Borrowings. These balances are primarily driven by sources of strategic funding needs. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are held by the counterparty until their repurchase.

ASSET QUALITY (continued)

Nonaccrual Loans and Other Real Estate Owned

Nonaccrual assets consist of nonaccrual loans and other real estate owned (OREO). OREO is comprised of commercial and residential properties acquired in partial or total satisfaction of loans. There was no outstanding OREO as of September 30, 2025 or December 31, 2024.

The following table provides the amounts of nonaccrual loans, by loan segment and class, that were outstanding at the dates shown, as well as the balance of loans that were delinquent 90 days or more and still accruing interest. Loans that are delinquent 90 days or more and still accruing interest can fluctuate widely based on the timing of cash collections, renegotiation and renewals.

TABLE 22: NONACCRUAL ASSETS


	SEPTEMBER 30, 2025					DECEMBER 31, 2024
($ In Millions)	AMOUNT			% OF NONACCRUAL LOANS TO TOTAL NONACCRUAL LOANS		AMOUNT			% OF NONACCRUAL LOANS TO TOTAL NONACCRUAL LOANS
Nonaccrual Loans
Commercial
Commercial and Institutional	$	42.5		54	%	$	29.8		53	%
Commercial Real Estate	—			—		5.6			10
Non-U.S.	0.5			1		0.5			1
Total Commercial	$	43.0		55	%	$	35.9		64	%
Personal
Private Client	$	6.9		9	%	$	2.3		4	%
Residential Real Estate	28.9			36		17.8			32
Total Personal	$	35.8		45	%	$	20.1		36	%
Total Nonaccrual Loans	78.8					56.0


90 Day Past Due Loans Still Accruing	$	14.1				$	82.3
Nonaccrual Loans to Total Loans	0.18		%			0.13		%
Allowance for Credit Losses Assigned to Loans to Nonaccrual Loans	2.1		x			3.0		x

Nonaccrual assets of $78.8 million as of September 30, 2025, were $22.8 million, or 41%, higher than December 31, 2024, primarily due to downgrades of a small number of loans across multiple segments. In addition to the negative impact on Net Interest Income and the risk of credit losses, nonaccrual assets also increase operating costs due to the expense associated with collection efforts. Changes in the level of nonaccrual assets may be indicative of changes in the credit quality of one or more loan classes. Changes in credit quality impact the allowance for credit losses through the resultant adjustment of the allowance evaluated on an individual basis and the quantitative and qualitative factors used in the determination of the allowance evaluated on a collective basis within the allowance for credit losses.

Northern Trust’s credit policies do not allow for the origination of loan types generally considered to be high risk in nature, such as option adjustable rate mortgage loans, subprime loans, loans with initial “teaser” rates and loans with excessively high loan-to-value ratios. Residential real estate loans consist of first lien mortgages and equity credit lines, which generally require a loan-to-collateral value of no more than 65% to 80% at inception. Appraisals of supporting collateral for residential real estate loans are obtained at loan origination and upon refinancing or default or when otherwise considered warranted. Residential real estate collateral appraisals are performed and reviewed by independent third parties.

For additional information relating to the loans portfolio, refer to Note 5—Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

ASSET QUALITY (continued)

Allowance for Credit Losses

The Allowance for Credit Losses—which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance-sheet credit exposure, and specific borrower relationships—is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation.

Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts.

The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Financial Risk Management, Treasury, Corporate Finance, the Economic Research Department, and each of Northern Trust’s reporting business units.

As of September 30, 2025, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $164.4 million, $32.1 million, $8.7 million, and $1.5 million, respectively. As of December 31, 2024, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $168.0 million, $30.4 million, $6.5 million, and $1.0 million, respectively. There was no allowance for credit losses related to AFS debt securities as of September 30, 2025. There was a $0.2 million allowance for credit losses related to AFS debt securities as of December 31, 2024. For additional information relating to the Allowance for Credit Losses and the changes in the Allowance for Credit Losses during the three and nine months ended September 30, 2025 and September 30, 2024 due to charge-offs, recoveries and provisions for credit losses, refer to Note 6—Allowance for Credit Losses.

The following table provides the allowance evaluated on an individual and collective basis for the loan portfolio by segment and class.

TABLE 23: ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES FOR LOANS


	SEPTEMBER 30, 2025					DECEMBER 31, 2024
($ In Millions)	ALLOWANCE AMOUNT			PERCENT OF LOANS TO TOTAL LOANS		ALLOWANCE AMOUNT			PERCENT OF LOANS TO TOTAL LOANS
Evaluated on an Individual Basis	$	10.7		—	%	$	3.2		—	%
Evaluated on a Collective Basis
Commercial
Commercial and Institutional	70.1			24		59.3			24
Commercial Real Estate	84.9			12		105.3			12
Non-U.S.	1.9			6		1.0			5
Other	—			5		—			5
Total Commercial	156.9			47		165.6			46
Personal
Private Client	13.1			37		9.7			37
Residential Real Estate	14.1			14		18.7			14
Non-U.S.	1.7			1		1.2			2
Other	—			1		—			1
Total Personal	28.9			53		29.6			54
Total Allowance Evaluated on a Collective Basis	$	185.8				$	195.2
Total Allowance for Credit Losses	$	196.5				$	198.4
Allowance Assigned to
Loans	$	164.4				$	168.0
Undrawn Commitments and Standby Letters of Credit	32.1					30.4
Total Allowance for Credit Losses	$	196.5				$	198.4
Allowance Assigned to Loans to Total Loans	0.38		%			0.39		%

ASSET QUALITY (continued)

Commercial Real Estate Loans

The table below provides additional detail regarding commercial real estate loan types.

TABLE 24: COMMERCIAL REAL ESTATE LOANS



(In Millions)	SEPTEMBER 30, 2025		DECEMBER 31, 2024
Commercial Mortgages
Apartment/ Multi-family	$	1,493.9	$	1,599.9
Office	957.7		944.4
Industrial/ Warehouse	942.9		906.1
Retail	699.5		665.6
Other	631.4		630.3
Total Commercial Mortgages	4,725.4		4,746.3
Construction, Acquisition and Development Loans	530.2		567.9
Total Commercial Real Estate Loans	$	5,255.6	$	5,314.2

In managing its credit exposure, management has defined a commercial real estate loan as one where: (1) the borrower’s principal business activity is the acquisition or the development of real estate for commercial purposes; (2) the principal collateral is real estate held for commercial purposes, and loan repayment is expected to flow from the operation of the property; or (3) the loan repayment is expected to flow from the sale or refinance of real estate as a normal and ongoing part of the business. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust.

Underwriting standards generally reflect conservative loan-to-collateral value (LTV) ratios and debt service coverage requirements. LTV ratios, calculated as the outstanding amount of the loan divided by the estimated value of the property, are a critical component of Northern Trust’s underwriting standards. Northern Trust utilizes LTV ratios in various stages of the lending and risk management process. Northern Trust’s policy related to LTV limits is more conservative than what is prescribed by current supervisory regulations. LTV ratios are monitored and updated on a quarterly basis utilizing the most recent outstanding amounts and appraisal values based on models, automated valuation services, or updated appraisals.

All commercial real estate transactions, regardless of size, require an independent appraisal at loan origination, unless permissible and approved regulatory exemptions can be applied. Real estate appraisals are, at a minimum, performed in accordance with generally accepted appraisal standards as applicable under local regulations. Northern Trust considers obtaining a new appraisal as part of the loan renewal process or whenever credit quality or market conditions have materially and adversely changed to the point where it is prudent to reassess the value of the real estate collateral. For defaulted loans, appraisals are updated on an, at least, annual basis. Appraisal values might be discounted based upon Northern Trust’s experience with actual liquidation values and management’s judgment as to the realizable value of the property.

For an overall discussion on the loan portfolio and on the allowance, refer to Note 5—Loans and Note 6—Allowance for Credit Losses to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).

STATEMENTS OF CASH FLOWS

The following discusses the statement of cash flow activities for the nine months ended September 30, 2025 and 2024.

TABLE 25: CASH FLOW ACTIVITY SUMMARY


	NINE MONTHS ENDED SEPTEMBER 30,
(In Millions)	2025		2024
Net cash provided by (used in):
Operating activities	$	5,145.1	$	2,148.8
Investing activities	(13,098.9)		(355.9)
Financing activities	8,038.7		287.7
Effect of Foreign Currency Exchange Rates on Cash	584.1		(0.4)
Change in Cash and Due from Banks	$	669.0	$	2,080.2

STATEMENTS OF CASH FLOWS (continued)

Operating Activities

Net cash provided by operating activities of $5.1 billion for the nine months ended September 30, 2025 was primarily attributable to lower net collateral deposited with derivative counterparties, net changes in other operating activities, and period earnings.

Net cash provided by operating activities of $2.1 billion for the nine months ended September 30, 2024 was primarily attributable to period earnings and net changes in other operating activities, partially offset by increases in receivables and pension plan contributions.

Investing Activities

Net cash used in investing activities of $13.1 billion for the nine months ended September 30, 2025 was primarily attributable to increased levels of Federal Reserve and other central bank deposits and net purchases of AFS debt securities.

Net cash used in investing activities of $355.9 million for the nine months ended September 30, 2024 was primarily attributable to increased levels of Federal Reserve and other central bank deposits and net purchases of AFS debt securities, partially offset by the net proceeds received from the sale of certain Visa shares and net proceeds associated with loans and HTM debt securities.

Financing Activities

Net cash provided by financing activities of $8.0 billion for the nine months ended September 30, 2025 was primarily attributable to the increased levels of total deposits, partially offset by increased treasury share purchases.

Net cash provided by financing activities of $287.7 million for the nine months ended September 30, 2024 was primarily attributable to the increased levels of total deposits, partially offset by increased treasury share repurchases and securities sold under agreements to repurchase.

REGULATORY CAPITAL

Capital ratios remained strong at September 30, 2025, exceeding the requirements for classification as “well-capitalized” under applicable U.S. regulatory requirements.

Northern Trust is a Category II institution as defined by the Federal Reserve Board which requires us to adhere to regulatory capital standards. In adhering to these standards, Northern Trust engages in a range of reporting and activities with regulators to affirm our financial strength and stability, including but not limited to, capital adequacy reporting that deducts any unrealized losses related to AFS securities from reported capital, and stringent, annual company-run and supervisory stress testing in the form of CCAR exercises, which confirms our ability to remain solvent under severely adverse market conditions.

The results of the 2025 Dodd-Frank Act Stress Test (DFAST), published by the Federal Reserve Board on June 27, 2025, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining constant at 2.5% and 7.0%, respectively, for the annual capital plan cycle beginning on October 1, 2025 through September 30, 2026.

REGULATORY CAPITAL (continued)

The following table provides a reconciliation of the Corporation’s common stockholders’ equity to total risk-based capital under the applicable U.S. regulatory rules as of September 30, 2025, December 31, 2024 and September 30, 2024.

TABLE 26: REGULATORY CAPITAL


	SEPTEMBER 30, 2025						DECEMBER 31, 2024						SEPTEMBER 30, 2024
($ In Millions)	STANDARDIZED APPROACH			ADVANCED APPROACH			STANDARDIZED APPROACH			ADVANCED APPROACH			STANDARDIZED APPROACH			ADVANCED APPROACH
Common Equity Tier 1 Capital
Common Stockholders’ Equity	$	12,071.1		$	12,071.1		$	11,903.5		$	11,903.5		$	11,864.1		$	11,864.1
Goodwill and Other Intangible Assets, net of Deferred Tax Liability	(715.9)			(715.9)			(699.0)			(699.0)			(719.2)			(719.2)
Other	(155.9)			(155.9)			(166.3)			(166.3)			(152.2)			(152.2)
Total Common Equity Tier 1 Capital	11,199.3			11,199.3			11,038.2			11,038.2			10,992.7			10,992.7
Additional Tier 1 Capital
Preferred Stock	884.9			884.9			884.8			884.8			884.9			884.9
Other	(56.1)			(56.1)			(52.8)			(52.8)			(50.8)			(50.8)
Total Additional Tier 1 Capital	828.8			828.8			832.0			832.0			834.1			834.1
Total Tier 1 Capital	12,028.1			12,028.1			11,870.2			11,870.2			11,826.8			11,826.8
Tier 2 Capital
Qualifying Allowance for Credit Losses	206.7			—			205.9			—			219.9			—
Qualifying Subordinated Debt	1,347.1			1,347.1			1,347.1			1,347.1			1,496.2			1,496.2
Total Tier 2 Capital	1,553.8			1,347.1			1,553.0			1,347.1			1,716.1			1,496.2
Total Risk-Based Capital	$	13,581.9		$	13,375.2		$	13,423.2		$	13,217.3		$	13,542.9		$	13,323.0
Risk-Weighted Assets(1)	$	90,033.7		$	74,329.4		$	88,939.7		$	75,920.9		$	86,953.6		$	78,242.5
Total Assets – End of Period (EOP)	170,263.3			170,263.3			155,508.4			155,508.4			155,753.8			155,753.8
Adjusted Average Assets(2)	150,208.9			150,208.9			145,666.8			145,666.8			146,018.0			146,018.0
Total Loans – EOP	42,949.4			42,949.4			43,390.6			43,390.6			41,950.3			41,950.3
Common Stockholders’ Equity to:
Total Loans – EOP	28.11		%	28.11		%	27.43		%	27.43		%	28.28		%	28.28		%
Total Assets – EOP	7.09			7.09			7.65			7.65			7.62			7.62

(1) Risk-weighted assets exclude, as applicable under each regulatory approach, amounts primarily related to goodwill, certain other intangible assets, and net unrealized gains or losses on securities and reflect adjustments for excess allowances for credit losses that have been excluded from Tier 1 and Tier 2 capital, if any.

(2) Adjusted average assets exclude amounts primarily related to goodwill, other intangible assets, and net unrealized gains or losses on securities.

The table below provides capital ratios, as well as the required minimum capital ratios, for Northern Trust Corporation and The

Northern Trust Company.

TABLE 27: REGULATORY CAPITAL RATIOS


	Standardized Approach							Advanced Approach
September 30, 2025	December 31, 2024		September 30, 2024				September 30, 2025	December 31, 2024		September 30, 2024				WELL-CAPITALIZED RATIOS	MINIMUM CAPITAL RATIOS
Northern Trust Corporation
Common Equity Tier 1 Capital	12.4	%	12.4	%	12.6	%		15.1	%	14.5	%	14.0	%		N/A		4.5	%
Tier 1 Capital	13.4		13.3		13.6			16.2		15.6		15.1			6.0		6.0
Total Capital	15.1		15.1		15.6			18.0		17.4		17.0			10.0		8.0
Tier 1 Leverage	8.0		8.1		8.1			8.0		8.1		8.1			N/A		4.0
Supplementary Leverage	N/A		N/A		N/A			8.9		8.9		9.2			N/A		3.0

The Northern Trust Company
Common Equity Tier 1 Capital	11.8	%	11.4	%	12.3	%		14.5	%	13.6	%	13.9	%		6.5	%	4.5	%
Tier 1 Capital	11.8		11.4		12.3			14.5		13.6		13.9			8.0		6.0
Total Capital	13.1		12.8		14.0			15.9		15.0		15.5			10.0		8.0
Tier 1 Leverage	7.0		6.9		7.3			7.0		6.9		7.3			5.0		4.0
Supplementary Leverage	N/A		N/A		N/A			7.7		7.5		8.2			3.0		3.0

RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09). ASU 2023-09 enhances disclosures by further disaggregating existing annual income tax disclosures related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, although early adoption is permitted. Upon adoption, the impact of ASU 2023-09 will be limited to certain enhancements within the notes to the consolidated financial statements and therefore is not expected to have an impact on Northern Trust’s consolidated balance sheets or consolidated statements of income.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03). ASU 2024-03 requires disaggregated disclosures in tabular format for specific income statement expense categories as well as a narrative disclosure about selling expenses. The amendments in ASU 2024-03 do not change or remove existing income statement presentation or disclosure requirements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. Upon adoption, the impact of ASU 2024-03 will be limited to certain enhancements within the notes to the consolidated financial statements and therefore is not expected to have an impact on Northern Trust’s consolidated balance sheets or consolidated statements of income.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (ASU 2025-06). ASU 2025-06 changes the cost capitalization threshold by removing the accounting consideration given to software project development stages and replaces it with the following criteria that must be met for entities to begin capitalizing software costs: (1) management has authorized and committed to funding the project and (2) it is ‘probable’ the project will be completed and the software used to perform its intended function (referred to as the ‘probable-to-complete’ threshold). In addition, ASU 2025-06 specifies that entities must apply the disclosure requirements in ASC 360-10, Property, Plant, and Equipment—Overall to capitalized internal-use software and related amortization, regardless of how the internal-use software is classified on the balance sheet. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, although early adoption is permitted. ASU 2025-06 is not expected to have a material impact on Northern Trust’s consolidated balance sheets or consolidated statements of income upon adoption.

Other accounting pronouncements that were issued by the FASB but not yet adopted as of September 30, 2025 are not expected to have a material impact on Northern Trust’s consolidated balance sheets or consolidated statements of income upon adoption.

RISK MANAGEMENT

Liquidity Risk

Liquidity risk is the risk of not being able to raise sufficient funds or maintain collateral to meet balance sheet and contingent liability cash flow obligations when due, because of firm-specific or market-wide stress events. Northern Trust is a Category II institution as defined by the Federal Reserve Board which requires us to adhere to the same regulatory liquidity standards as U.S. global systemically important bank holding companies (GSIBs). In adhering to these standards, Northern Trust engages in a range of reporting and other activities with regulators to affirm our financial strength and stability, including but not limited to, daily LCR and Net Stable Funding Ratio calculations to regulators.

We maintain a highly liquid balance sheet consisting principally of cash and due from banks, deposits with the Federal Reserve and other central banks, short-term money market assets, and investment securities, which were 65% and 62% of total assets as of September 30, 2025 and December 31, 2024, respectively. The majority of Northern Trust’s securities portfolio is composed of highly liquid securities including U.S. Treasury, non-U.S. government, and government sponsored agency securities.

Market Risk

There are two types of market risk, interest rate risk associated with the banking book and trading risk. Interest rate risk associated with the banking book is the potential for movements in interest rates to cause changes in Net Interest Income and the market value of equity, including AOCI from the AFS debt securities portfolio. Trading risk is the potential for movements in market variables such as foreign exchange and interest rates to cause changes in the value of trading positions.

Northern Trust uses two primary measurement techniques to manage interest rate risk: NII sensitivity and MVE sensitivity. NII sensitivity provides management with a short-term view of the impact of interest rate changes on NII. MVE sensitivity provides management with a long-term view of interest rate changes on MVE based on the period-end balance sheet. Higher interest rates may impact the fair value of AFS debt securities which in turn affects AOCI, which can impact regulatory capital ratios.

As part of its risk management activities, Northern Trust also measures daily the risk of loss associated with all trading book positions using a VaR model and applying the historical simulation methodology. The following information about Northern Trust’s management of market risk should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024.

RISK MANAGEMENT (continued)

Market Risk (continued)

NII Sensitivity — The modeling of NII sensitivity incorporates on-balance-sheet positions, as well as derivative financial instruments (principally interest rate swaps) that are used to manage interest rate risk. Northern Trust uses market implied forward interest rates as the base case and measures the sensitivity (i.e., change) of a static balance sheet to changes in interest rates. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk).

The NII sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate NII sensitivity given uncertainty in the assumptions. The following key assumptions are incorporated into the simulation:

▪the balance sheet size and mix remains constant over the simulation horizon with maturing assets and liabilities replaced with instruments with similar terms as those that are maturing, with the exception of certain nonmaturity deposits that are considered short-term in nature and therefore receive a more conservative interest-bearing treatment;

▪prepayments on mortgage loans and securities collateralized by mortgages are projected under each rate scenario using a third-party mortgage analytics system that incorporates market prepayment assumptions;

▪cash flows for structured securities are estimated using a third-party vendor in conjunction with the prepayments provided by the third-party mortgage analytics vendor;

▪nonmaturity deposit pricing is projected based on Northern Trust’s actual historical patterns and management judgment, depending upon the availability of historical data and current pricing strategies/or judgment; and

▪new business rates are based on current spreads to market indices.

The following table shows the estimated NII impact over the next twelve months of 100 and 200 basis point ramps upward and downward in interest rates relative to forward rates as of September 30, 2025 and September 30, 2024. Each rate movement is assumed to occur gradually over a one-year period.

TABLE 28: NET INTEREST INCOME SENSITIVITY


INCREASE (DECREASE) ESTIMATED IMPACT ON NEXT TWELVE MONTHS OF NET INTEREST INCOME
(In Millions)	SEPTEMBER 30, 2025		SEPTEMBER 30, 2024
Increase in Interest Rates Above Market Implied Forward Rates
100 Basis Points	$	68	$	59
200 Basis Points	127		115
Decrease in Interest Rates Below Market Implied Forward Rates
100 Basis Points	$	(99)	$	(71)
200 Basis Points	(230)		$	(151)

The NII sensitivity analysis does not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movement. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. NII sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided.

MVE Sensitivity — MVE is defined as the present value of assets minus the present value of liabilities, net of the value of financial derivatives that are used to manage the interest rate risk of balance sheet items. The MVE looks at the whole balance sheet, which includes AFS debt securities, HTM debt securities, money market accounts, deposits, loans and wholesale borrowings. The potential effect of interest rate changes on MVE is derived from the impact of such changes on projected future cash flows and the present value of these cash flows and is then compared to the established limit. Northern Trust uses current market rates (and the future rates implied by these market rates) as the base case and measures MVE sensitivity under various rate scenarios. Stress testing of interest rates is performed to include such scenarios as immediate parallel shocks to rates, nonparallel (i.e., twist) changes to yield curves that result in their becoming steeper or flatter, and changes to the relationship among the yield curves (i.e., basis risk).

The MVE sensitivity analysis incorporates certain critical assumptions such as interest rates and client behaviors under changing rate environments. These assumptions are based on a combination of historical analysis and future expected pricing behavior. The simulation cannot precisely estimate MVE sensitivity given uncertainty in the assumptions. Many of the assumptions that apply to NII sensitivity also apply to MVE sensitivity simulations, with the following separate key assumptions incorporated into the MVE simulation:

▪the present value of nonmaturity deposits is estimated using dynamic decay methodologies or estimated remaining lives, which are based on a combination of Northern Trust’s actual historical runoff patterns and management judgment—some balances are assumed to be core and have longer lives while other balances are assumed to be temporary and have comparatively shorter lives;

RISK MANAGEMENT (continued)

Market Risk (continued)

▪the present values of most noninterest-bearing balances (such as receivables, equipment, and payables) are the same as their book values; and

▪Monte Carlo simulation is used to generate forward interest rate paths.

The following table shows the estimated impact on MVE of 100 and 200 basis point shocks up and down from current market implied forward rates at September 30, 2025 and December 31, 2024. Each rate movement is assumed to occur gradually over a one-year period.

TABLE 29: MARKET VALUE OF EQUITY SENSITIVITY


INCREASE (DECREASE) ESTIMATED IMPACT ON MARKET VALUE OF EQUITY
(In Millions)	SEPTEMBER 30, 2025		DECEMBER 31, 2024
Increase in Interest Rates Above Market Implied Forward Rates
100 Basis Points	$	(525)	$	(374)
200 Basis Points	(1,155)		(808)
Decrease in Interest Rates Below Market Implied Forward Rates
100 Basis Points	$	620	$	508
200 Basis Points	1,025		951

The MVE simulations do not incorporate certain management actions that may be used to mitigate adverse effects of actual interest rate movements. For that reason and others, the estimated impacts do not reflect the likely actual results but serve as estimates of interest rate risk. MVE sensitivity is not comparable to actual results disclosed elsewhere or directly predictive of future values of other measures provided.

Value-At-Risk (VaR) — Northern Trust measures daily the risk of loss associated with trading positions using a VaR model and applying the historical simulation methodology. This statistical model provides estimates, based on high confidence levels, of the potential loss in value that might be incurred if an adverse shift in foreign exchange rates and interest rates were to occur over a small number of days. The model incorporates foreign currency and interest rate volatilities and correlations in price movements among the currencies and interest rates. VaR is computed for each trading desk and for the global portfolio.

Northern Trust monitors several variations of the VaR measures to meet specific regulatory and internal management needs. Variations include different methodologies (historical simulation, Monte Carlo simulation and Taylor approximation), horizons of one day and ten days, confidence levels of 95% and 99%, subcomponent VaRs using only foreign exchange (FX) drivers, only interest rate (IR) drivers, and only volatility drivers, and look-back periods of one year, two years, and four years. Those alternative measures provide management an array of corroborating metrics and alternative perspectives on Northern Trust’s market risks.

The following table presents the levels of total regulatory VaR and its subcomponents, covering global foreign exchange (GFX), foreign currency balances, and interest rate derivatives combined, in the periods indicated below, based on the historical simulation methodology, a 99% confidence level, a one-day horizon and equally weighted volatility. The total VaR is typically less than the sum of its three subcomponents due to diversification benefits derived from interactions among the three drivers.

TABLE 30: VALUE-AT-RISK


(In Millions)	Combined Trading Book VaR						FX VaR (FX DRIVERS ONLY)						IR VaR (IR DRIVERS ONLY)
THREE MONTHS ENDED	SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024		SEPTEMBER 30, 2025		JUNE 30, 2025		SEPTEMBER 30, 2024
High	$	0.5	$	0.6	$	0.8	$	0.5	$	0.6	$	1.0	$	0.2	$	0.3	$	0.2
Low	0.2		0.3		0.2		0.1		0.2		0.1		0.1		0.1		0.1
Average	0.4		0.4		0.4		0.3		0.3		0.3		0.1		0.2		0.1
Quarter-End	0.3		0.3		0.3		0.2		0.2		0.2		0.1		0.1		0.1

During the three months ended September 30, 2025, Northern Trust did not incur an actual GFX trading loss in excess of the daily GFX VaR estimate.

Foreign currency balances arise not from executing trades but rather in the course of regular business operations, namely from non-U.S.-dollar-denominated revenues and expenses accruing onto the Corporation’s balance sheet.

RECONCILIATION TO FULLY TAXABLE EQUIVALENT

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

TABLE 31: RECONCILIATION TO FULLY TAXABLE EQUIVALENT


	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
($ In Millions)	2025			2024			2025			2024
Net Interest Income
Interest Income - GAAP	$	2,144.3		$	2,530.2		$	6,498.0		$	7,482.3
Add: FTE Adjustment	5.5			7.1			15.8			21.3
Interest Income (FTE) - Non-GAAP	$	2,149.8		$	2,537.3		$	6,513.8		$	7,503.6

Net Interest Income - GAAP	$	590.8		$	562.3		$	1,769.4		$	1,613.3
Add: FTE Adjustment	5.5			7.1			15.8			21.3
Net Interest Income (FTE) - Non-GAAP	$	596.3		$	569.4		$	1,785.2		$	1,634.6

Net Interest Margin - GAAP	1.68		%	1.66		%	1.68		%	1.60		%
Net Interest Margin (FTE) - Non-GAAP	1.70		%	1.68		%	1.69		%	1.62		%

Total Revenue
Total Revenue - GAAP	$	2,025.4		$	1,968.5		$	5,963.3		$	6,330.8
Add: FTE Adjustment	5.5			7.1			15.8			21.3
Total Revenue (FTE) - Non-GAAP	$	2,030.9		$	1,975.6		$	5,979.1		$	6,352.1

FORWARD-LOOKING STATEMENTS

This report may include statements which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified typically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements include statements, other than those related to historical facts, that relate to Northern Trust’s financial results and outlook; capital adequacy; dividend policy and share repurchase program; accounting estimates and assumptions; credit quality including allowance levels; future pension plan contributions; effective tax rate; anticipated expense levels; contingent liabilities; acquisitions; strategies; market and industry trends; and expectations regarding the impact of accounting pronouncements and legislation. These statements are based on Northern Trust’s current beliefs and expectations of future events or future results, and involve risks and uncertainties that are difficult to predict and subject to change. These statements are also based on assumptions about many important factors, including:

financial market disruptions or economic recession in the U.S. or other countries across the globe resulting from any of a number of factors;
volatility or changes in financial markets, including debt and equity markets, that impact the value, liquidity, or credit ratings of financial assets in general, or financial assets held in particular investment funds or client portfolios, including those funds, portfolios, and other financial assets with respect to which Northern Trust has taken, or may in the future take, actions to provide asset value stability or additional liquidity;
the impact of equity markets on fee revenue;
changes in interest rates or in the monetary or other policies of various regulatory authorities or central banks;
changes in trade policy, including the imposition of tariffs or the impacts of retaliatory tariffs;
Northern Trust’s success in controlling the costs and expenses of its business operations and the impacts of any broader inflationary environment thereon;
a decline in the value of securities held in Northern Trust’s investment portfolio, the liquidity and pricing of which may be negatively impacted by periods of economic turmoil and financial market disruptions;
Northern Trust’s ability to address operating risks, including those related to cybersecurity, data privacy and security, human errors or omissions, pricing or valuation of securities, fraud, operational resilience (including systems performance), failure to maintain sustainable business practices, and breakdowns in processes or internal controls;
Northern Trust's success in responding to and investing in changes and advancements in technology;
geopolitical risks, risks related to global climate change and the risks of extraordinary events such as pandemics, natural disasters, terrorist events and war (including the expansion or escalation of military conflict between Ukraine and the Russian Federation or the conflict in the Middle East, and tensions between the U.S. and China), and the responses of the U.S. and other countries to those events;
unexpected deposit outflows;
the effectiveness of Northern Trust’s management of its human capital, including its success in recruiting and retaining necessary and diverse personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services;
changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including Northern Trust;
changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, changes in the valuation of the U.S. dollar relative to other currencies in which Northern Trust records revenue or accrues expenses, and Northern Trust’s success in assessing and mitigating the risks arising from all such changes and volatility;
a significant downgrade of any of Northern Trust’s debt ratings;
the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business;
uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor;
increased costs of compliance and other risks associated with changes in regulation, the current regulatory environment, and areas of increased regulatory emphasis and oversight in the U.S. and other countries, such as anti-money laundering, anti-bribery, and data privacy and security;
failure to satisfy regulatory standards or to obtain regulatory approvals when required, including for the use and distribution of capital;
Northern Trust’s success in continuing to enhance its risk management practices and controls and managing risks inherent in its businesses, including credit risk, operational risk, market and liquidity risk, fiduciary risk, compliance risk and strategic risk;
risks and uncertainties inherent in the litigation and regulatory process, including the possibility that losses may be in excess of Northern Trust’s recorded liability and estimated range of possible loss for litigation exposures;
the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders;
the downgrade of U.S. government-issued and other securities;

FORWARD-LOOKING STATEMENTS (continued)

changes in tax laws, accounting requirements or interpretations and other legislation in the U.S. or other countries that could affect Northern Trust or its clients;
the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
changes in the nature and activities of Northern Trust’s competition;
Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;
Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;
Northern Trust’s ability to maintain a product mix that achieves acceptable margins;
Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;
uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary; and
other factors identified elsewhere in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024, including those factors described in Item 1A, “Risk Factors,” and other filings with the SEC, all of which are available on Northern Trust’s website.

Actual results may differ materially from those expressed or implied by forward-looking statements. The information contained herein is current only as of the date of that information. All forward-looking statements included in this document are based upon information presently available, and Northern Trust assumes no obligation to update its forward-looking statements.

Next: Item 1. Consolidated Financial Statements (unaudited)