Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Additional information about restrictions on the transfer of funds from State Street Bank to the Parent Company is provided under “Related Stockholder Matters” in Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, and under “Capital” in “Financial Condition” in our Management’s Discussion and Analysis in this Form 10-K.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of State Street Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of condition of State Street Corporation (the Corporation) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Corporation’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 19, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on the Corporation’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.


			Servicing Fee Revenue

Description of the Matter			Revenue recognized by the Corporation as servicing fees was $5.324 billion for the year ended December 31, 2025. As disclosed in Notes 24 and 25 of the financial statements, servicing fee revenue involves revenue earned from various back and middle office solutions including custody, accounting and fund administration, record keeping, and client reporting. The Corporation’s servicing fee revenue involves a significant volume of contracts and transactions and is sourced from multiple systems and processes across different business teams and geographies. Auditing servicing fee revenue was complex and involved significant audit effort due to the nature of the Corporation’s contracts, the volume of contracts and transactions and the number of different processes used to recognize revenue.

How We Addressed the Matter in Our Audit			We identified and obtained an understanding of the processes used by the Corporation to recognize revenue transactions. We evaluated the design and tested the operating effectiveness of controls over the Corporation’s processes for recognizing servicing fee revenue, including, among others, controls over the review of client contracts, the calculation and analysis of the key drivers of revenue (e.g., assets under custody), and the flow of this information from the business teams to the department accruing revenue. Among other procedures, to test servicing fee revenue, we selected and analyzed a sample of client contracts to determine whether terms that may have an impact on revenue recognition, including performance obligations and specified fees, were identified and properly considered in the evaluation of the accounting for the contracts. In addition, we reperformed the calculation of revenue for a sample of revenue transactions. We also agreed the amounts recognized to source documents and tested the mathematical accuracy of the recorded revenue. We obtained third party confirmation of the client balance due for a sample of servicing fees receivable.

/s/ Ernst & Young LLP

We have served as the Corporation's auditor since 1972.

Boston, Massachusetts

February 19, 2026

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STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF INCOME


	Years Ended December 31,
(Dollars in millions, except per share amounts)		2025		2024		2023
Fee revenue:
Servicing fees		$	5,324	$	5,016	$	4,922
Management fees		2,398		2,124		1,876
Foreign exchange trading services		1,614		1,401		1,265
Securities finance		505		438		426
Software and processing fees		903		888		811
Other fee revenue		236		289		180
Total fee revenue		10,980		10,156		9,480
Net interest income:
Interest income		11,644		11,977		9,180
Interest expense		8,684		9,054		6,421
Net interest income		2,960		2,923		2,759
Other income:
Gains (losses) from sales of available-for-sale securities, net		4		(79)		(294)




Total other income		4		(79)		(294)
Total revenue		13,944		13,000		11,945
Provision for credit losses		59		75		46
Expenses:
Compensation and employee benefits		5,035		4,697		4,744
Information systems and communications		2,094		1,829		1,703
Transaction processing services		1,050		998		957
Occupancy		487		437		426


Other		1,488		1,569		1,753
Total expenses		10,154		9,530		9,583
Income before income tax expense		3,731		3,395		2,316
Income tax expense		786		708		372

Net income		$	2,945	$	2,687	$	1,944
Net income available to common shareholders		$	2,717	$	2,483	$	1,821
Earnings per common share:
Basic		$	9.55	$	8.33	$	5.65
Diluted		9.40		8.21		5.58
Average common shares outstanding (in thousands):
Basic		284,545		297,883		322,337
Diluted		289,019		302,226		326,568
Cash dividends declared per common share		$	3.20	$	2.90	$	2.64

The accompanying notes are an integral part of these consolidated financial statements.

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STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


	Years Ended December 31,
(In millions)	2025		2024		2023
Net income	$	2,945	$	2,687	$	1,944
Other comprehensive income (loss), net of related taxes:
Foreign currency translation, net of related taxes of $(200), $153 and $(19), respectively	592		(228)		261
Net unrealized gains on investment securities, net of reclassification adjustment and net of related taxes of $108, $164 and $335, respectively	329		467		870


Net unrealized gains (losses) on cash flow hedges, net of related taxes of $30, $0 and $85, respectively	99		(1)		228
Net unrealized gains (losses) on retirement plans, net of related taxes of $14, $6 and $0, respectively	37		16		(2)
Other comprehensive income	1,057		254		1,357
Total comprehensive income	$	4,002	$	2,941	$	3,301

The accompanying notes are an integral part of these consolidated financial statements.

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STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CONDITION


	December 31, 2025		December 31, 2024

(Dollars in millions, except per share amounts)
Assets:
Cash and due from banks	$	4,433	$	3,145
Interest-bearing deposits with banks	126,930		112,957
Securities purchased under resale agreements	6,812		6,679
Trading account assets	827		768
Investment securities available-for-sale	67,154		58,895

Investment securities held-to-maturity (fair value of $34,166 and $41,906)	38,171		47,727
Loans (less allowance for credit losses on loans of $193 and $174)	46,589		43,026
Premises and equipment (net of accumulated depreciation of $7,046 and $6,461)	3,174		2,715
Accrued interest and fees receivable	4,395		4,034

Goodwill	8,159		7,691
Other intangible assets	935		1,089
Other assets	58,468		64,514
Total assets	$	366,047	$	353,240
Liabilities:
Deposits:
Non-interest-bearing	$	35,267	$	33,180
Interest-bearing - U.S.	168,079		166,483
Interest-bearing - non-U.S.	71,004		62,257
Total deposits	274,350		261,920
Securities sold under repurchase agreements	841		3,681


Other short-term borrowings	3,821		9,840
Accrued expenses and other liabilities	34,051		29,201
Long-term debt	25,143		23,272
Total liabilities	338,206		327,914
Commitments, guarantees and contingencies (Notes 12 and 13)
Shareholders’ equity:
Preferred stock, no par, 3,500,000 shares authorized:




Series G, 5,000 shares issued and outstanding	493		493
Series I, 15,000 shares issued and outstanding	1,481		1,481
Series J, 8,500 shares issued and outstanding	842		842
Series K, 7,500 shares issued and outstanding	743		—
Common stock, $1 par, 750,000,000 shares authorized:
503,879,642 and 503,879,642 shares issued, and 279,077,907 and 288,766,452 shares outstanding	504		504
Surplus	10,705		10,722
Retained earnings	31,392		29,582
Accumulated other comprehensive income (loss)	(1,043)		(2,100)
Treasury stock, at cost (224,801,735 and 215,113,190 shares)	(17,276)		(16,198)
Total shareholders’ equity	27,841		25,326


Total liabilities and shareholders’ equity	$	366,047	$	353,240

The accompanying notes are an integral part of these consolidated financial statements.

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STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY


(Dollars in millions, except per share amounts, shares in thousands)	Preferred Stock			Common Stock				Surplus			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Total
Shares			Amount				Shares			Amount

























































Balance at December 31, 2022	$	1,976		503,880	$	504		$	10,730		$	27,028	$	(3,711)	154,855	$	(11,336)	$	25,191
Net income											1,944							1,944
Other comprehensive (loss)													1,357					1,357


Cash dividends declared:
Common stock - $2.64 per share											(837)							(837)
Preferred stock											(122)							(122)
Common stock acquired															49,212	(3,837)		(3,837)
Common stock awards exercised								11							(2,133)	148		159
Other											(56)				2	—		(56)
Balance at December 31, 2023	$	1,976		503,880	$	504		$	10,741		$	27,957	$	(2,354)	201,936	$	(15,025)	$	23,799
Net income											2,687							2,687
Other comprehensive income													254					254

Preferred stock issued	2,323																	2,323
Preferred stock redeemed	(1,483)										(17)							(1,500)
Cash dividends declared:
Common stock - $2.90 per share											(859)							(859)
Preferred stock											(185)							(185)
Common stock acquired															15,135	(1,312)		(1,312)
Common stock awards exercised								(21)							(1,950)	139		118
Other								2			(1)				(8)	—		1
Balance at December 31, 2024	$	2,816		503,880	$	504		$	10,722		$	29,582	$	(2,100)	215,113	$	(16,198)	$	25,326
Net income											2,945							2,945
Other comprehensive income													1,057					1,057
Preferred stock issued	743																	743


Cash dividends declared:
Common stock - $3.20 per share											(909)							(909)
Preferred stock											(226)							(226)
Common stock acquired															11,533	(1,212)		(1,212)
Common stock awards exercised								(18)					—		(1,836)	133		115
Other								1			—				(8)	1		2
Balance at December 31, 2025	$	3,559		503,880	$	504		$	10,705		$	31,392	$	(1,043)	224,802	$	(17,276)	$	27,841

The accompanying notes are an integral part of these consolidated financial statements.

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STATE STREET CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS


	Years Ended December 31,
(In millions)	2025		2024		2023
Operating Activities:
Net income	$	2,945	$	2,687	$	1,944
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax (benefit)	(89)		145		(184)
Amortization of other intangible assets	223		230		239
Other non-cash adjustments for depreciation, amortization and accretion, net	331		375		643
(Gains) losses related to investment securities, net	(4)		79		294
Provision for credit losses	59		75		46
Change in trading account assets, net	(59)		5		(123)
Change in accrued interest and fees receivable, net	(350)		(224)		(359)
Change in collateral deposits, net	6,611		(12,109)		(2,246)
Change in unrealized losses (gains) on foreign exchange derivatives, net	5,512		(7,191)		2,146
Change in other assets, net	(2,524)		1,672		(1,839)

Change in accrued expenses and other liabilities, net	(1,167)		743		(128)

Other, net	410		303		257
Net cash provided by (used in) operating activities	11,898		(13,210)		690
Investing Activities:
Net (increase) decrease in interest-bearing deposits with banks	(12,998)		(25,292)		13,928
Net (increase) decrease in securities purchased under resale agreements	(133)		13		(1,477)
Proceeds from sales of available-for-sale securities	15,999		10,973		4,917
Proceeds from maturities of available-for-sale securities	29,040		18,517		15,703
Purchases of available-for-sale securities	(50,245)		(44,301)		(23,089)



Proceeds from maturities of held-to-maturity securities	9,858		9,330		9,474
Purchases of held-to-maturity securities	—		(5)		(1,582)
Sale of loans	1,068		246		506
Net increase in loans	(3,719)		(7,369)		(4,746)
Business acquisitions, net of cash acquired	(286)		(194)		(61)

Purchases of equity investments and other long-term assets	(1,164)		(143)		(136)
Purchases of premises and equipment, net	(1,055)		(926)		(816)

Other, net	644		(332)		117
Net cash (used in) provided by investing activities	(12,991)		(39,483)		12,738
Financing Activities:
Net (decrease) increase in time deposits	(3,108)		(19)		2,820
Net increase (decrease) in all other deposits	14,471		40,971		(17,311)
Net (decrease) increase in securities sold under repurchase agreements	(2,840)		1,814		690

Net (decrease) increase in other short-term borrowings	(6,018)		6,180		1,563

Proceeds from issuance of long-term debt, net of issuance costs	5,722		6,523		6,221
Payments for long-term debt and obligations under finance leases	(4,143)		(2,046)		(2,545)
Payments for redemption of preferred stock	—		(1,500)		—
Proceeds from issuance of preferred stock, net of issuance costs	743		2,323		—

Repurchases of common stock	(1,200)		(1,319)		(3,781)

Repurchases of common stock for employee tax withholding	(106)		(83)		(95)
Payments for cash dividends	(1,120)		(1,033)		(970)
Other, net	(20)		(20)		57
Net cash provided by (used in) financing activities	2,381		51,791		(13,351)
Net increase (decrease)	1,288		(902)		77
Cash and due from banks at beginning of period	3,145		4,047		3,970
Cash and due from banks at end of period	$	4,433	$	3,145	$	4,047

Supplemental disclosure:
Interest paid	$	8,805	$	8,951	$	6,184
Income taxes paid, net	594		451		423

The accompanying notes are an integral part of these consolidated financial statements.

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis, including our principal banking subsidiary, State Street Bank.

We have two lines of business:

Investment Servicing provides a broad range of investment servicing and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, wealth managers, investment managers, foundations and endowments worldwide.

Through State Street Investment Services and State Street Markets, we offer a full range of back-, middle- and front-office solutions, including custody, accounting and fund administration services for traditional and alternative assets, as well as multi-asset class investments; recordkeeping, client reporting and investment book of record, transaction management, loans, cash, derivatives and collateral services; investor services operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities.

Together with our back- and middle-office services, CRD’s front- and middle-office technology offerings form the foundation of State Street Alpha. Our State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, along with advanced data aggregation and integration with other industry platforms and providers. Included in CRD’s technology offerings are Charles River Investment Management Solution, a front-office technology offering that automates and simplifies the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout; Charles River for Private Markets, an investment management solution for institutions investing in Private Credit, Private Equity, Real Estate,

Infrastructure, and Funds; and Charles River Wealth Management Solution, which provides portfolio management, trading compliance and manager/sponsor communication capabilities to wealth managers, private banks and financial advisors.

Investment Management provides a comprehensive range of investment management solutions and products for our clients through State Street Investment Management (previously State Street Global Advisors). Our investment management solutions span across equity, fixed income, liquidity and cash, multi-asset and alternatives strategies, delivered through products such as ETFs, custom indexed, and actively managed funds and mandates.

Consolidation

Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation.

We consolidate subsidiaries in which we exercise control. Equity investments where we have the ability to exercise significant influence over the operations of the investee are generally accounted for under the equity method of accounting and are recorded in other assets. Income or losses from investments accounted for under the equity method are recorded in other fee revenue in our consolidated statement of income. Equity investments that do not meet the criteria for equity-method treatment are measured at fair value through earnings, except for investments in low-income housing and production tax credit entities (see Note 14 for further information) or where one of two U.S. GAAP exceptions applies. The first exception allows Federal Reserve Bank stock, Federal Home Loan Bank stock and exchange memberships to remain accounted for at cost, less impairment. The second exception is for equity investments where fair market value is not readily available, which are accounted for at cost, less impairment, adjusted for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, with any such changes reflected in other fee revenue.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

circumstances, actual results could differ from those estimates.

Foreign Currency Translation

The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity.

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks.

Sanctions programs or government intervention may inhibit our ability to access cash and due from banks in certain accounts. For example, as of December 31, 2025 and 2024, we held such accounts in Russia that were subject to sanctions restrictions, inclusive of $1.6 billion and $0.8 billion, respectively, with our subcustodian, and with western European-based clearing agencies, for a total of approximately $2.4 billion and $1.3 billion, respectively. Cash and due from banks is evaluated as part of our allowance for credit losses.

Interest-Bearing Deposits with Banks

Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less.

Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements

Securities purchased under resale agreements and sold under repurchase agreements are accounted for as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We

can use these securities as collateral for repurchase agreements.

For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or when both parties are members of a common clearing organization, resale and repurchase agreements are recorded on a net basis when specific netting criteria are met.

Fee and Net Interest Income

The majority of fees from investment servicing, investment management, securities finance, trading services and certain types of software and processing fees are recorded in our consolidated statement of income based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue as the services are performed or at a point in time depending on the nature of the services provided. Payments made to third party service providers are generally recognized on a gross basis when we control those services and are deemed to be the principal. Additional information about revenue from contracts with customers is provided in Note 25.

Interest income on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of NII, and are generally based on the effective yield of the related financial asset or liability.

Other Significant Policies

The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found:


Fair Value	Note	2	Page	124
Investment Securities	Note	3	Page	130
Loans and Allowance for Credit Losses	Note	4	Page	135
Goodwill and Other Intangible Assets	Note	5	Page	140
Derivative Financial Instruments	Note	10	Page	145
Offsetting Arrangements	Note	11	Page	149
Contingencies	Note	13	Page	153
Variable Interest Entities	Note	14	Page	154
Equity-Based Compensation	Note	18	Page	160
Income Taxes	Note	22	Page	164
Earnings Per Common Share	Note	23	Page	166
Revenue from Contracts with Customers	Note	25	Page	169

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Recent Accounting Developments

Relevant standards that were adopted during the year ended December 31, 2025:

We adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, prospectively for the annual reporting period ending December 31, 2025. The standard aims to improve transparency and comparability of income tax disclosures primarily by requiring consistent and expanded disclosures related to the reconciliation of the statutory and effective tax rate and disaggregated disclosure of income taxes paid by jurisdiction. Refer to Note 22 for additional information.

Relevant standards that were recently issued, but not yet adopted as of December 31, 2025



Standard	Description	Effective Date	Effects on the financial statements or other significant matters
ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements	The amendments introduce targeted improvements to closely align hedge accounting with an entity’s risk management activities. The ASU expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions in a cash flow hedge, introduces a new model for hedging forecasted interest payments on choose your rate debt instruments, and expands eligibility for certain hedged risks (nonfinancial forecasted transactions, net written options as hedging instruments and foreign currency dual hedge strategy).	Annual reporting for the period ending December 31, 2027 and for interim reporting in 2027. Early adoption is permitted.	We are currently evaluating the impact of this guidance.
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	The update removes all references to prescriptive and sequential software development stages, and amends related disclosures. Capitalization of software costs will commence when both i) management has authorized and committed to funding the software project, and ii) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”).	Annual and interim reporting periods beginning after December 15, 2027. Early adoption is permitted.	We are currently evaluating the impact of this guidance.
ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures	The amendments require disclosure of information about certain costs and expenses in both interim and annual reporting periods. Specified information includes expense amounts relating to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses with the definition thereof.	Annual reporting for the period ending December 31, 2027 and for interim reporting in 2028. Early adoption is permitted.	We are currently evaluating the disclosure impact of the new standard.

Additionally, we continue to evaluate other accounting standards that were recently issued, but not yet adopted as of December 31, 2025; none are expected to have a material impact to our financial statements.

Note 2. Fair Value

Fair Value Measurements

We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders’ equity in our consolidated statement of condition.

We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management’s assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below.

Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange-traded equity securities.

Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following:

▪Quoted prices for similar assets or liabilities in active markets;

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▪Quoted prices for identical or similar assets or liabilities in non-active markets;

▪Pricing models whose inputs are observable for substantially the full term of the asset or liability; and

▪Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability.

Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income AFS investment securities, as well as various types of foreign exchange and interest rate derivative instruments.

Fair value for our AFS investment securities categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back-testing.

Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties. We consider factors such as the likelihood of default by our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2025 and 2024.

Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management’s judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which may be internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology:

The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information.

Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is therefore less observable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated:


	Fair Value Measurements on a Recurring Basis
	As of December 31, 2025
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)		Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	55	$	—	$	—			$	55
Non-U.S. government securities	—		124		—				124
Other	—		648		—				648

Total trading account assets	55		772		—				827
Available-for-sale investment securities:
U.S. Treasury and federal agencies:
Direct obligations	23,260		—		—				23,260
Mortgage-backed securities	—		15,586		—				15,586
Total U.S. Treasury and federal agencies	23,260		15,586		—				38,846







Non-U.S. debt securities:
Mortgage-backed securities	—		2,578		—				2,578
Asset-backed securities	—		2,085		—				2,085
Non-U.S. sovereign, supranational and non-U.S. agency	—		17,731		—				17,731
Other	—		2,826		—				2,826
Total non-U.S. debt securities	—		25,220		—				25,220
Asset-backed securities:
Student loans	—		64		—				64
Collateralized loan obligations	—		2,905		—				2,905
Non-agency CMBS and RMBS(2)	—		3		—				3
Other	—		91		—				91
Total asset-backed securities	—		3,063		—				3,063
State and political subdivisions	—		25		—				25

Other U.S. debt securities	—		—		—				—





Total available-for-sale investment securities	$	23,260	$	43,894	$	—			$	67,154
Other assets:
Derivative instruments:
Foreign exchange contracts	$	5	$	14,218	$	1	$	(10,073)	$	4,151
Interest rate contracts	3		31		—		(31)		3
Other derivative contracts	1		—		—		—		1
Total derivative instruments	9		14,249		1		(10,104)		4,155


Other	22		832		—		—		854
Total assets carried at fair value	$	23,346	$	59,747	$	1	$	(10,104)	$	72,990
Liabilities:
Accrued expenses and other liabilities:




Derivative instruments:
Foreign exchange contracts	$	—	$	14,097	$	—	$	(9,231)	$	4,866
Interest rate contracts	—		5		—		(5)		—
Other derivative contracts	—		159		—		—		159
Total derivative instruments	—		14,261		—		(9,236)		5,025

Total liabilities carried at fair value	$	—	$	14,261	$	—	$	(9,236)	$	5,025

(1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $2.48 billion and $1.61 billion, respectively, for cash collateral received from and provided to derivative counterparties.

(2) Consists entirely of non-agency CMBS.

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	Fair Value Measurements on a Recurring Basis
	As of December 31, 2024
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting(1)		Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	34	$	—	$	—			$	34
Non-U.S. government securities	—		121		—				121
Other	—		613		—				613
Total trading account assets	34		734		—				768
Available-for-sale investment securities:
U.S. Treasury and federal agencies:
Direct obligations	23,525		—		—				23,525
Mortgage-backed securities	—		10,566		—				10,566
Total U.S. Treasury and federal agencies	23,525		10,566		—				34,091






Non-U.S. debt securities:
Mortgage-backed securities	—		2,430		—				2,430
Asset-backed securities	—		1,868		—				1,868
Non-U.S. sovereign, supranational and non-U.S. agency	—		13,939		—				13,939
Other	—		2,821		—				2,821
Total non-U.S. debt securities	—		21,058		—				21,058
Asset-backed securities:
Student loans	—		90		—				90

Collateralized loan obligations	—		3,453		—				3,453
Non-agency CMBS and RMBS(2)	—		4		—				4
Other	—		91		—				91
Total asset-backed securities	—		3,638		—				3,638
State and political subdivisions	—		56		—				56

Other U.S. debt securities	—		52		—				52




Total available-for-sale investment securities	$	23,525	$	35,370	$	—			$	58,895
Other assets:
Derivative instruments:
Foreign exchange contracts	$	16	$	29,422	$	1	$	(18,262)	$	11,177
Interest rate contracts	5		23		—		(23)		5
Other derivative contracts	1		—		—		—		1
Total derivative instruments	22		29,445		1		(18,285)		11,183
Other	20		747		—		—		767
Total assets carried at fair value	$	23,601	$	66,296	$	1	$	(18,285)	$	71,613
Liabilities:
Accrued expenses and other liabilities:
Trading account liabilities:



Derivative instruments:
Foreign exchange contracts	$	—	$	28,904	$	—	$	(22,527)	$	6,377
Interest rate contracts	—		1		—		(1)		—
Other derivative contracts	—		219		—		—		219
Total derivative instruments	—		29,124		—		(22,528)		6,596

Total liabilities carried at fair value	$	—	$	29,124	$	—	$	(22,528)	$	6,596

(1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $1.86 billion and $6.10 billion, respectively, for cash collateral received from and provided to derivative counterparties.

(2) Consists entirely of non-agency CMBS.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Financial Instruments Not Carried at Fair Value

Estimates of fair value for financial instruments not carried at fair value in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. Disclosure of fair value estimates is not required by U.S. GAAP for certain items, such as lease financing, equity-method investments, obligations for pension and other post-retirement plans, premises and equipment, other intangible assets and income-tax assets and liabilities. Accordingly, aggregate fair-value estimates presented do not purport to represent, and should not be considered representative of, our underlying “market” or franchise value. In addition, because of potential differences in methodologies and assumptions used to estimate fair values, our estimates of fair value should not be compared to those of other financial institutions.

We use the following methods to estimate the fair values of our financial instruments:

For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value;
For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk; and
For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument.

The generally short duration of certain of our assets and liabilities results in a significant number of financial instruments for which fair value equals or closely approximates the amount recorded in our consolidated statement of condition. These financial instruments are reported in the following captions in our consolidated statement of condition: cash and due from banks; interest-bearing deposits with banks; securities purchased under resale agreements; accrued interest and fees receivable; deposits; securities sold under repurchase agreements; federal funds purchased; and other short-term borrowings.

In addition, due to the relatively short duration of certain of our loans, we consider fair value for these loans to approximate their reported value. The fair value of other types of loans, such as commercial loans, commercial real estate loans, purchased receivables and municipal loans is estimated using information obtained from independent third parties or by discounting expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. Commitments to lend have no reported value because their terms are at prevailing market rates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value, as they would be categorized within the fair value hierarchy, as of the dates indicated:


					Fair Value Hierarchy
(In millions)	Carrying Value		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
December 31, 2025
Financial Assets:
Cash and due from banks	$	4,433	$	4,433	$	4,433	$	—	$	—
Interest-bearing deposits with banks	126,930		126,930		—		126,930		—
Securities purchased under resale agreements	6,812		6,812		—		6,812		—

Investment securities held-to-maturity	38,171		34,166		563		33,603		—
Net loans(1)	46,589		46,417		—		44,862		1,555
Other(2)	15,490		15,490		—		15,490		—
Financial Liabilities:
Deposits:
Non-interest-bearing	$	35,267	$	35,267	$	—	$	35,267	$	—
Interest-bearing - U.S.	168,079		168,079		—		168,079		—
Interest-bearing - non-U.S.	71,004		71,004		—		71,004		—
Securities sold under repurchase agreements	841		841		—		841		—


Other short-term borrowings	3,821		3,821		—		3,821		—

Long-term debt	25,143		25,253		—		25,130		123
Other(2)	15,490		15,490		—		15,490		—

(1) Includes $92 million of loans classified as held-for-sale that were measured at fair value in level 2 as of December 31, 2025.

(2) Represents a portion of underlying client assets related to our prime services business, which clients have allowed us to transfer and re-pledge.


					Fair Value Hierarchy
(In millions)	Carrying Value		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
December 31, 2024
Financial Assets:
Cash and due from banks	$	3,145	$	3,145	$	3,145	$	—	$	—
Interest-bearing deposits with banks	112,957		112,957		—		112,957		—
Securities purchased under resale agreements	6,679		6,679		—		6,679		—

Investment securities held-to-maturity	47,727		41,906		5,354		36,552		—
Net loans(1)	43,026		42,839		—		41,097		1,742
Other(2)	6,752		6,752		—		6,752		—
Financial Liabilities:
Deposits:
Non-interest-bearing	$	33,180	$	33,180	$	—	$	33,180	$	—
Interest-bearing - U.S.	166,483		166,483		—		166,483		—
Interest-bearing - non-U.S.	62,257		62,257		—		62,257		—
Securities sold under repurchase agreements	3,681		3,681		—		3,681		—


Other short-term borrowings	9,840		9,840		—		9,840		—
Long-term debt	23,272		23,078		—		22,882		196
Other(2)	6,752		6,752		—		6,752		—

(1) Includes $14 million of loans classified as held-for-sale that were measured at fair value in level 2 as of December 31, 2024.

(2) Represents a portion of underlying client assets related to our prime services business, which clients have allowed us to transfer and re-pledge.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3. Investment Securities

Investment securities held by us are classified as either trading account assets, AFS, HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent.

Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity.

Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in other fee revenue in our consolidated statement of income. AFS securities are carried at fair value, with any allowance for credit losses recorded through the consolidated statement of income and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) from sales of available-for-sale securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts, with any allowance for credit losses recorded through the consolidated statement of income.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated:


	December 31, 2025								December 31, 2024
	Amortized Cost		Gross Unrealized				Fair Value		Amortized Cost		Gross Unrealized				Fair Value
(In millions)	Gains		Losses		Gains		Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	23,210	$	55	$	5	$	23,260	$	23,539	$	38	$	52	$	23,525
Mortgage-backed securities(1)	15,550		90		54		15,586		10,699		21		154		10,566
Total U.S. Treasury and federal agencies	38,760		145		59		38,846		34,238		59		206		34,091
Non-U.S. debt securities:
Mortgage-backed securities	2,573		6		1		2,578		2,426		5		1		2,430
Asset-backed securities(2)	2,081		5		1		2,085		1,865		5		2		1,868
Non-U.S. sovereign, supranational and non-U.S. agency	17,693		73		35		17,731		13,954		54		69		13,939
Other(3)	2,784		42		—		2,826		2,787		38		4		2,821
Total non-U.S. debt securities	25,131		126		37		25,220		21,032		102		76		21,058
Asset-backed securities:
Student loans(4)	63		1		—		64		89		1		—		90
Collateralized loan obligations(5)	2,904		2		1		2,905		3,447		6		—		3,453
Non-agency CMBS and RMBS(6)	—		3		—		3		1		3		—		4
Other	90		1		—		91		90		1		—		91
Total asset-backed securities	3,057		7		1		3,063		3,627		11		—		3,638
State and political subdivisions	25		—		—		25		56		—		—		56
Other U.S. debt securities	—		—		—		—		53		—		1		52




Total available-for-sale securities(7)(8)	$	66,973	$	278	$	97	$	67,154	$	59,006	$	172	$	283	$	58,895
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	573	$	—	$	3	$	570	$	5,417	$	—	$	55	$	5,362
Mortgage-backed securities(9)	32,876		9		3,965		28,920		36,101		2		5,677		30,426
Total U.S. Treasury and federal agencies	33,449		9		3,968		29,490		41,518		2		5,732		35,788
Non-U.S. debt securities:


Non-U.S. sovereign, supranational and non-U.S. agency	2,461		4		31		2,434		3,673		7		73		3,607

Total non-U.S. debt securities	2,461		4		31		2,434		3,673		7		73		3,607

Asset-backed securities:
Student loans(4)	2,261		5		24		2,242		2,536		4		29		2,511



Total asset-backed securities	2,261		5		24		2,242		2,536		4		29		2,511


Total held-to-maturity securities(7)(10)	$	38,171	$	18	$	4,023	$	34,166	$	47,727	$	13	$	5,834	$	41,906

(1) As of December 31, 2025 and 2024, the total fair value included $2.81 billion and $4.36 billion, respectively, of agency CMBS and $12.78 billion and $6.20 billion, respectively, of agency MBS.

(2) As of December 31, 2025 and 2024, the fair value includes non-U.S. collateralized loan obligations of $0.77 billion and $0.70 billion, respectively.

(3) As of December 31, 2025 and 2024, the fair value includes non-U.S. corporate bonds of $2.40 billion and $2.54 billion, respectively.

(4) Primarily comprises securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.

(5) Excludes CLO loans. Refer to Note 4 for additional information.

(6) Consists entirely of non-agency RMBS as of both December 31, 2025 and 2024.

(7) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended December 31, 2025 and 2024.

(8) As of December 31, 2025 and 2024, we had no allowance for credit losses on AFS investment securities.

(9) As of December 31, 2025 and 2024, the total amortized cost included $5.08 billion and $5.18 billion of agency CMBS, respectively.

(10) As of both December 31, 2025 and 2024, the allowance for credit losses on HTM investment securities was less than $1 million.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Aggregate investment securities with carrying values of approximately $74.14 billion and $86.70 billion as of December 31, 2025 and 2024, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.

In 2025, 2024 and 2023, proceeds from sales of AFS securities were approximately $16.00 billion, $10.97 billion and $4.92 billion, respectively, resulting in a pre-tax gain of approximately $4 million in 2025, and a pre-tax loss of approximately $79 million and $294 million in 2024 and 2023, respectively. The pre-tax gain in 2025 was primarily driven by sales of U.S. Treasury, mortgage-backed securities, supranational securities and foreign government bonds.

The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:


	As of December 31, 2025
	Less than 12 months				12 months or longer				Total
(In millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	756	$	2	$	2,063	$	3	$	2,819	$	5
Mortgage-backed securities	1,267		3		4,018		51		5,285		54
Total U.S. Treasury and federal agencies	2,023		5		6,081		54		8,104		59
Non-U.S. debt securities:
Mortgage-backed securities	617		1		73		—		690		1
Asset-backed securities	425		—		168		1		593		1
Non-U.S. sovereign, supranational and non-U.S. agency	3,871		28		1,943		7		5,814		35
Other	129		—		—		—		129		—
Total non-U.S. debt securities	5,042		29		2,184		8		7,226		37
Asset-backed securities:

Collateralized loan obligations	1,068		1		—		—		1,068		1


Total asset-backed securities	1,068		1		—		—		1,068		1





Total	$	8,133	$	35	$	8,265	$	62	$	16,398	$	97


	As of December 31, 2024
	Less than 12 months				12 months or longer				Total
(In millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	8,113	$	25	$	2,435	$	27	$	10,548	$	52
Mortgage-backed securities	3,742		59		4,360		95		8,102		154
Total U.S. Treasury and federal agencies	11,855		84		6,795		122		18,650		206






Non-U.S. debt securities:
Mortgage-backed securities	730		1		225		—		955		1
Asset-backed securities	387		—		506		2		893		2
Non-U.S. sovereign, supranational and non-U.S. agency	4,695		49		2,695		20		7,390		69
Other	312		2		116		2		428		4
Total non-U.S. debt securities	6,124		52		3,542		24		9,666		76
Asset-backed securities:
Student loans	12		—		—		—		12		—
Collateralized loan obligations	684		—		—		—		684		—
Non-agency CMBS and RMBS	—		—		—		—		—		—

Total asset-backed securities	696		—		—		—		696		—
State and political subdivisions	—		—		26		—		26		—

Other U.S. debt securities	3		—		49		1		52		1

Total	$	18,678	$	136	$	10,412	$	147	$	29,090	$	283

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of December 31, 2025. The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties.


	As of December 31, 2025
(In millions)	Under 1 Year				1 to 5 Years				6 to 10 Years				Over 10 Years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations	$	6,153	$	6,161	$	17,056	$	17,098	$	1	$	1	$	—	$	—	$	23,210	$	23,260
Mortgage-backed securities	81		80		1,639		1,638		1,092		1,083		12,738		12,785		15,550		15,586
Total U.S. Treasury and federal agencies	6,234		6,241		18,695		18,736		1,093		1,084		12,738		12,785		38,760		38,846
Non-U.S. debt securities:
Mortgage-backed securities	179		180		485		485		—		—		1,909		1,913		2,573		2,578
Asset-backed securities	56		56		329		330		929		932		767		767		2,081		2,085
Non-U.S. sovereign, supranational and non-U.S. agency	4,423		4,432		12,457		12,486		813		813		—		—		17,693		17,731
Other	796		800		1,958		1,996		30		30		—		—		2,784		2,826
Total non-U.S. debt securities	5,454		5,468		15,229		15,297		1,772		1,775		2,676		2,680		25,131		25,220
Asset-backed securities:
Student loans	6		6		—		—		9		10		48		48		63		64
Collateralized loan obligations	156		156		16		16		1,341		1,341		1,391		1,392		2,904		2,905
Non-agency CMBS and RMBS	—		—		—		—		—		3		—		—		—		3
Other	—		—		90		91		—		—		—		—		90		91
Total asset-backed securities	162		162		106		107		1,350		1,354		1,439		1,440		3,057		3,063
State and political subdivisions	25		25		—		—		—		—		—		—		25		25


Total	$	11,875	$	11,896	$	34,030	$	34,140	$	4,215	$	4,213	$	16,853	$	16,905	$	66,973	$	67,154
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations	$	463	$	461	$	103	$	102	$	—	$	—	$	7	$	7	$	573	$	570
Mortgage-backed securities	234		220		3,924		3,578		868		790		27,850		24,332		32,876		28,920
Total U.S. Treasury and federal agencies	697		681		4,027		3,680		868		790		27,857		24,339		33,449		29,490
Non-U.S. debt securities:


Non-U.S. sovereign, supranational and non-U.S. agency	1,108		1,102		1,259		1,240		94		92		—		—		2,461		2,434

Total non-U.S. debt securities	1,108		1,102		1,259		1,240		94		92		—		—		2,461		2,434
Asset-backed securities:
Student loans	127		125		424		423		413		414		1,297		1,280		2,261		2,242




Total asset-backed securities	127		125		424		423		413		414		1,297		1,280		2,261		2,242
Total	$	1,932	$	1,908	$	5,710	$	5,343	$	1,375	$	1,296	$	29,154	$	25,619	$	38,171	$	34,166

Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, adjusted as prepayments occur, resulting in amortization or accretion, accordingly.

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Allowance for Credit Losses on Debt Securities and Impairment of AFS Securities

An allowance for credit losses is recognized on HTM securities upon acquisition of the security, and on AFS securities when the fair value and expected future cash flows of the investment securities are less than their amortized cost basis. Our assessment of impairment involves an evaluation of economic and security-specific factors. Such factors are based on estimates, derived by management, which contemplate current market conditions and security-specific performance. To the extent that market conditions are worse than management’s expectations or due to idiosyncratic bond performance, the credit-related component of impairment, in particular, could increase and would be recorded in the provision for credit losses.

We conduct quarterly reviews of HTM securities on a collective (pool) basis when similar risk characteristics exist to determine whether an allowance for credit losses should be recognized. HTM securities are evaluated for expected credit loss utilizing a probability of default methodology, or discounted cash flows assessed against the amortized cost of the investment security excluding accrued interest.

We monitor the credit quality of the HTM investment securities using a variety of methods, including both external and internal credit ratings.

With respect to certain classes of debt securities, primarily U.S. Treasuries and agency securities (mainly issued by U.S. Government entities and agencies, as well as Group of Seven sovereigns), we consider the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero. Therefore, for those securities, we do not record expected credit losses.

We have elected to not record an allowance on accrued interest for HTM securities. Accrued interest on these securities is reversed against interest income when payment on a security is delinquent for greater than 90 days from the date of payment.

An AFS security is impaired when the current fair value of an individual security is below its amortized cost basis. An allowance for credit losses on impaired AFS securities is recorded when the present value of expected future cash flows of the investment security is less than its amortized cost basis, limited to the amount by which the security’s amortized cost basis exceeds the fair value. Investment securities will be written down to fair value through the consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value.

Our review of AFS investment securities for credit impairment generally includes:

the identification and evaluation of securities that have indications of potential impairment, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy;
the analysis of expected future cash flows of securities, based on quantitative and qualitative factors;
the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts;
the analysis of the underlying collateral for MBS and ABS;
the analysis of individual impaired securities, including the anticipated recovery period and the magnitude of the overall price decline;
evaluation of factors or triggers that could cause individual securities to be deemed impaired and those that would not support impairment; and
documentation of the results of these analyses.

Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of impairment of these debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.

As of December 31, 2025, 99% of our HTM and AFS investment portfolio is publicly rated investment grade.

After a review of the investment portfolio, taking into consideration then-current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considered the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $4.12 billion and $6.12 billion related to 1,342 and 1,564 securities as of December 31, 2025 and 2024, respectively, to be primarily related to changes in interest rates, and not the result of any material changes in the credit characteristics of the securities. The unrealized loss has not been recognized as of December 31, 2025, as management did not have the intent to sell, nor was it more likely than not that we would be required to sell these securities before the expected recovery of their amortized cost basis.

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4. Loans and Allowance for Credit Losses

Loans are generally recorded at their principal amount outstanding, net of the allowance for credit losses, unearned income, and any net unamortized deferred loan origination fees. Loans that are classified as held-for-sale are measured at lower of cost or fair value on an individual basis.

Interest income related to loans is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest income over the term of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to software and processing fees over the commitment period when funding is not known or expected.

The following table presents our recorded investment in loans, as of the dates indicated:


(In millions)	December 31, 2025		December 31, 2024

Subscription finance	$	13,138	$	11,544
Fund finance(1)	10,916		10,244
Collateralized loan obligations(2)	12,809		9,488
Commercial	2,851		3,881
Commercial real estate	2,471		2,842
Overdrafts	1,962		1,980
Other(3)	2,635		3,221
Total loans(4)(5)	46,782		43,200






































Allowance for credit losses	(193)		(174)
Loans, net of allowance for credit losses	$	46,589	$	43,026

(1) Fund finance loans primarily include loans to real money funds and business development companies of $8.30 billion and $1.75 billion, respectively, as of December 31, 2025, compared to $7.90 billion and $1.44 billion, respectively, as of December 31, 2024.

(2) Collateralized loan obligations include broadly syndicated and middle market CLO loans of $10.30 billion and $2.51 billion, respectively, as of December 31, 2025, compared to $8.39 billion and $1.10 billion, respectively, as of December 31, 2024.

(3) Includes securities finance loans and loans to municipalities of $2.52 billion and $0.12 billion, respectively, as of December 31, 2025 and $3.01 billion and $0.21 billion, respectively, as of December 31, 2024.

(4) Excluding overdrafts, floating rate loans and fixed rate loans totaled $42.37 billion and $2.45 billion, respectively, as of December 31, 2025. We have entered into interest rate swap agreements to hedge forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 for additional details.

(5) Non-U.S. loans totaled $18.78 billion and $16.79 billion as of December 31, 2025 and 2024, respectively.

We segregate our loans into two segments: commercial and financial and commercial real estate. We further classify commercial and financial loans as subscription finance, fund finance loans, collateralized loan obligations, commercial, overdrafts and other loans.

Certain loans are pledged as collateral for access to the Federal Reserve’s discount window. As of December 31, 2025 and 2024, the loans pledged as collateral totaled $15.11 billion and $13.90 billion, respectively.

We generally place loans on non-accrual status once principal or interest payments are 90 days contractually past due, or earlier if management determines that full collection is not probable. Loans 90 days past due, but considered both well-secured and in the process of collection, may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded, but unpaid interest is reversed and generally charged against interest income. For loans on non-accrual status, income is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated. As of December 31, 2025, we had four loans totaling $258 million on non-accrual status, of which no loans were more than 90 days contractually past due. As of December 31, 2024, we had two loans totaling $191 million on non-accrual status, of which one loan totaling $101 million was more than 90 days contractually past due.

In 2025, we originated $5.57 billion of CLO loans, consisting of $5.01 billion in broadly syndicated and $0.56 billion in middle market CLO loans, which were all investment grade as of December 31, 2025.

We sold $1.16 billion of total loans, which consisted entirely of commercial loans in 2025. We recorded a charge-off against the allowance for these loans of $15 million in 2025.

Allowance for Credit Losses

We recognize an allowance for credit losses in accordance with ASC 326 for financial assets held at amortized cost and off-balance sheet commitments. The allowance for credit losses is reviewed on a regular basis, and any provision for credit losses is recorded to reflect the amount necessary to maintain the allowance for expected credit losses at a level which represents what management does not expect to recover due to expected credit losses. For additional discussion on the allowance for credit losses for investment securities, please refer to Note 3.

When the allowance is recorded, a provision for credit loss expense is recognized in net income. The allowance for credit losses for financial assets (excluding investment securities, as discussed in Note 3) represents the portion of the amortized cost basis, including accrued interest for financial assets held at amortized cost, which management does not expect to recover due to expected credit losses and is presented on the statement of condition as an offset to the amortized cost basis. The accrued interest balance is presented separately on the statement of condition within accrued interest and fees receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The allowance for off-balance sheet commitments is presented within accrued expenses and other liabilities. Loans are charged off to the allowance for credit losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan, including a sale of a loan below its carrying value, or a portion of a loan is determined to be uncollectible.

The allowance for credit losses may be determined using various methods, including discounted cash flow methods, loss-rate methods, PD methods, and other quantitative or qualitative methods as determined by us. The method used to estimate expected credit losses may vary depending on the type of financial asset, our ability to predict the timing of cash flows, and the information available to us.

The allowance for credit losses as reported in our consolidated statement of condition is adjusted by the provision for credit losses, which is reported in earnings, and reduced by the charge-off of principal amounts, net of recoveries.

We measure expected credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. Each reporting period, we assess whether the assets in the pool continue to display similar risk characteristics.

For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured separately using one or more of the methods noted above. As of December 31, 2025, we had three loans totaling $98 million in the commercial and financial segment and 4 loans totaling $296 million in the commercial real estate segment that no longer met the similar risk characteristics of their collective pool. As of December 31, 2025, $120 million of our allowance for credit losses was related to these loans.

When the asset is collateral-dependent, which means when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, the allowance for credit losses are determined based on the fair value of the collateral, adjusted for the estimated costs to sell.

Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, factors and forecasts then prevailing may result in significant changes in the allowance for credit losses in those future periods.

We estimate credit losses over the contractual life of the financial asset, while factoring in prepayment activity, where supported by data, over a three year reasonable and supportable forecast period. We utilize a baseline, upside and downside scenario which are applied based on a probability weighting, in order to better reflect management’s expectation of expected credit losses given existing market conditions and the changes in the economic environment. The multiple scenarios are based on a three year horizon (or less depending on contractual maturity) and then revert linearly over a two year period to a ten-year historical average thereafter. The contractual term excludes expected extensions, renewals and modifications, but includes prepayment assumptions where applicable.

As part of our allowance methodology, we establish qualitative reserves to address any risks inherent in our portfolio that are not addressed through our quantitative reserve assessment. These factors may relate to, among other things, legislation changes or new regulation, credit concentration, loan markets, scenario weighting and overall model limitations. The qualitative adjustments are applied to our portfolio of financial instruments under the existing governance structure and are inherently judgmental.

Credit Quality

Credit quality for financial assets held at amortized cost is continuously monitored by management and is reflected within the allowance for credit losses.

We use an internal risk-rating system to assess our risk of credit loss for each loan. This risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner, and following a formal review and approval process, an internal credit rating based on our credit scale is assigned.

When computing allowance levels, credit loss assumptions are estimated using models that categorize asset pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall asset portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

Credit quality is assessed and monitored by evaluating various attributes in order to enable timely

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

detection of any concerns with the customer’s credit rating. The results of those evaluations are utilized in underwriting new loans and transactions with counterparties and in our process for estimation of expected credit losses.

In assessing the risk rating assigned to each individual loan, among the factors considered are the borrower's debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and source of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually. Management considers the ratings to be current as of December 31, 2025.

Our internal risk rating methodology assigns risk ratings to counterparties ranging from Investment Grade, Sub-Investment Grade, Special Mention, Substandard, Doubtful and Loss.

Investment Grade: Counterparties with strong credit quality and low expected credit risk and probability of default. Approximately 91% of our loans were rated as investment grade as of December 31, 2025 with external credit ratings, or equivalent, of “BBB-” or better.
Sub-Investment Grade: Counterparties that have the ability to repay but face significant uncertainties, such as adverse business or financial circumstances that could affect credit risk or economic downturns. Loans to counterparties rated as sub-investment grade account for approximately 8% of our loans as of December 31, 2025, and are concentrated in leveraged loans. Approximately 87% of those leveraged loans have an external credit rating, or equivalent, of “BB” or “B” as of December 31, 2025.
Special Mention: Counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.
Substandard: Counterparties with well-defined weakness that jeopardizes

repayment with the possibility we will sustain some loss.

Doubtful: Counterparties with well-defined weakness which make collection or liquidation in full highly questionable and improbable.
Loss: Counterparties which are uncollectible or have little value.

The following tables present our recorded investment in loans to counterparties by risk rating, as noted above, as of the dates indicated:


December 31, 2025	Commercial and Financial		Commercial Real Estate		Total Loans
(In millions)
Investment grade	$	40,854	$	1,402	$	42,256
Sub-investment grade	3,157		641		3,798
Special mention	110		132		242
Substandard	48		165		213
Doubtful	50		131		181

Total(1)(2)	$	44,219	$	2,471	$	46,690


December 31, 2024	Commercial and Financial		Commercial Real Estate		Total Loans
(In millions)
Investment grade	$	35,831	$	1,969	$	37,800
Sub-investment grade	4,278		409		4,687
Special mention	187		62		249
Substandard	48		211		259
Doubtful	—		191		191
Total(1)(2)	$	40,344	$	2,842	$	43,186

(1) Loans include $1.96 billion and $1.98 billion of overdrafts as of December 31, 2025 and 2024, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of December 31, 2025, $1.90 billion overdrafts were investment grade and $0.06 billion overdrafts were sub-investment grade.

(2) Total does not include $92 million and $14 million of loans classified as held-for-sale as of December 31, 2025 and 2024, respectively.

Financial assets held at amortized cost that are not loans are disaggregated based on product type. This includes our fees receivable balance, which have had no history of credit losses, and are evaluated collectively as a pool.

Securities purchased under a resale agreement and securities-financing within our principal business utilize the collateral maintenance provisions included within ASC 326. An allowance for credit losses is recognized for any remaining exposure based on counterparty type.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The allowance for credit losses for off-balance sheet credit exposures, recorded in accrued expenses and other liabilities in our consolidated statement of condition, represents management’s estimate of credit losses primarily in outstanding letters and lines of credit and other credit-enhancement facilities provided to our clients and outstanding as of the balance sheet date. The allowance is evaluated quarterly by management. Factors considered in evaluating the appropriate level of this allowance are similar to those considered with respect to the allowance for credit losses on financial assets held at amortized cost. Provisions to maintain the allowance at a level considered by us to be appropriate to absorb estimated credit losses in outstanding facilities are recorded in the provision for credit losses in our consolidated statement of income.

The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2025. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.


(In millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total(1)

Commercial and financial:
Risk Rating:
Investment grade	$	8,896	$	4,153	$	692	$	504	$	1,313	$	119	$	25,177	$	40,854
Sub-investment grade	911		1,224		109		46		133		111		623		3,157
Special mention	3		100		—		—		—		7		—		110
Substandard	—		48		—		—		—		—		—		48
Doubtful	—		—		10		—		40		—		—		50

Total commercial and financing	$	9,810	$	5,525	$	811	$	550	$	1,486	$	237	$	25,800	$	44,219

Commercial real estate:
Risk Rating:
Investment grade	$	—	$	41	$	166	$	328	$	318	$	549	$	—	$	1,402
Sub-investment grade	—		—		47		—		31		563		—		641
Special mention	66		—		—		20		—		46		—		132
Substandard	—		—		—		—		—		165		—		165
Doubtful	—		—		—		—		—		131		—		131

Total commercial real estate	$	66	$	41	$	213	$	348	$	349	$	1,454	$	—	$	2,471






















Total loans(2)	$	9,876	$	5,566	$	1,024	$	898	$	1,835	$	1,691	$	25,800	$	46,690

(1) Any reserve associated with accrued interest is not material. As of December 31, 2025, accrued interest receivable of $338 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.

(2) Total does not include $92 million of loans classified as held-for-sale as of December 31, 2025.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2024:


(In millions)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total(1)

Commercial and financial:
Risk Rating:
Investment grade	$	6,189	$	2,019	$	1,241	$	2,234	$	6	$	197	$	23,945	$	35,831
Sub-investment grade	2,441		347		198		633		99		198		362		4,278
Special mention	47		45		26		69		—		—		—		187
Substandard	—		—		12		36		—		—		—		48


Total commercial and financing	$	8,677	$	2,411	$	1,477	$	2,972	$	105	$	395	$	24,307	$	40,344

Commercial real estate:
Risk Rating:
Investment grade	$	41	$	63	$	488	$	278	$	128	$	971	$	—	$	1,969
Sub-investment grade	—		153		20		69		100		67		—		409
Special mention	—		—		—		—		—		62		—		62
Substandard	—		—		—		—		—		211		—		211
Doubtful	—		—		—		—		—		191		—		191

Total commercial real estate	$	41	$	216	$	508	$	347	$	228	$	1,502	$	—	$	2,842






















Total loans(2)	$	8,718	$	2,627	$	1,985	$	3,319	$	333	$	1,897	$	24,307	$	43,186

(1) Any reserve associated with accrued interest is not material. As of December 31, 2024, accrued interest receivable of $327 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.

(2) Total does not include $14 million of loans classified as held-for-sale as of December 31, 2024.

The following tables present the activity in the allowance for credit losses by portfolio and class for the years ended December 31, 2025 and 2024:


	Year End December 31, 2025
	Commercial and Financial
(In millions)	Commercial Loans		Other Loans(1)		Commercial Real Estate		Off-Balance Sheet Commitments		All Other		Total
Allowance for credit losses:
Beginning balance	$	68	$	4	$	102	$	9	$	—	$	183
Provision	16		1		41		(1)		2		59
Charge-offs(2)	(15)		—		(24)		—		—		(39)




Ending balance	$	69	$	5	$	119	$	8	$	2	$	203

(1) Primarily includes $2 million allowance for credit losses on both subscription finance and fund finance loans.

(2) Primarily related to a commercial real estate loan and certain commercial loans in 2025.


	Year Ended December 31, 2024
	Commercial and Financial
(In millions)	Commercial Loans		Other Loans(1)		Commercial Real Estate		Held-to-Maturity Securities		Off-Balance Sheet Commitments		Total
Allowance for credit losses:
Beginning balance	$	72	$	3	$	60	$	1	$	14	$	150
Provision	13		1		67		(1)		(5)		75
Charge-offs(2)	(17)		—		(25)		—		—		(42)




Ending balance	$	68	$	4	$	102	$	—	$	9	$	183

(1) Primarily includes $2 million allowance for credit losses on fund finance loans and $1 million related to subscription finance.

(2) Related to the sale of commercial real estate and commercial loans in 2024.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Loans are reviewed on a regular basis, and any provisions for credit losses that are recorded reflect management’s estimate of the amount necessary to maintain the allowance for loan losses at a level considered appropriate to absorb expected credit losses in the loan portfolio. In 2025, we recorded a $59 million provision for credit losses, primarily reflecting the evolving macroeconomic environment and an increase in loan loss reserves associated with certain commercial real estate and commercial loans. Allowance estimates remain subject to continued model and economic uncertainty and management may use qualitative adjustments in the allowance estimates. If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of December 31, 2025, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change.

Note 5. Goodwill and Other Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net tangible and other intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if circumstances arise or events occur that indicate an impairment of the carrying amount may exist.

Impairment of goodwill is deemed to exist if the carrying value of a reporting unit, including its allocation of goodwill and other intangible assets, exceeds its estimated fair value. Management reviews goodwill for impairment annually or more frequently if circumstances arise or events occur that indicate an impairment of the carrying amount may exist. We begin our review by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Events that may indicate impairment include significant or adverse changes in the business, economic or political climate, an adverse action or assessment by a regulator, unanticipated competition, and a more-likely-than-not expectation that we will sell or otherwise dispose of a business to which the goodwill or other intangible assets relate. If we conclude from the qualitative assessment of goodwill impairment that it is more likely than not that a reporting unit’s fair value is greater than its carrying amount, quantitative tests are not required. However, if we determine it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then we complete a quantitative assessment to determine if there is goodwill impairment. We may elect to bypass the qualitative assessment and complete a quantitative assessment in any given period.

In 2025, we assessed goodwill for impairment using a qualitative assessment. Based on our evaluation of the qualitative factors noted above, we determined it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying amount.

Other intangible assets represent purchased long-lived intangible assets, primarily client relationships, that can be distinguished from goodwill because of contractual rights or because the asset can be exchanged on its own or in combination with a related contract, asset or liability. Other intangible assets are initially measured at their acquisition date fair value, the determination of which requires management judgment, are amortized over their estimated useful lives and are subject to evaluation for impairment. Client relationships are amortized on a straight-line basis over periods ranging from five to twenty years, technology assets are amortized on a straight-line basis over periods ranging from three to ten years, and core deposit intangible assets are amortized on a straight-line basis over periods ranging from sixteen to twenty-two years, with such amortization recorded in other expenses in our consolidated statement of income.

Other intangible assets are supported by the future cash flows that are directly associated with and expected to arise as a direct result of the use of the intangible asset, less any costs associated with the intangible asset’s eventual disposition. We evaluate other intangible assets for impairment at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows from other groups of assets using the following process. First, we routinely assess whether impairment indicators are present. When impairment indicators are identified as being present, we compare the estimated future net undiscounted cash flows of the intangible asset with its carrying value. If the future net undiscounted cash flows are greater than the carrying value, then there is no impairment, but if the intangible asset’s net undiscounted cash flows are less than its carrying value, we are required to calculate impairment. An impairment is recognized by writing the intangible asset down to its fair value through a charge to other expenses in our consolidated statement of income. We evaluate intangible assets for indicators of impairment on a quarterly basis.

There were no impairments of goodwill or other intangible assets in 2025, 2024 and 2023.

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The following table presents changes in the carrying amount of goodwill during the periods indicated for each of our goodwill reporting units:


(In millions)	Investment Servicing		Investment Management		Total
Goodwill:











Ending balance December 31, 2023	$	7,346	$	265	$	7,611
Acquisitions(1)	189		—		189

Foreign currency translation	(107)		(2)		(109)
Ending balance December 31, 2024	7,428		263		7,691
Acquisitions	243		—		243

Foreign currency translation	220		5		225
Ending balance December 31, 2025	$	7,891	$	268	$	8,159

(1) Investment Servicing includes the impact of the consolidation of one of our joint ventures in India.

The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:


(In millions)	Investment Servicing		Investment Management		Total
Other intangible assets:
Ending balance December 31, 2023	$	1,293	$	27	$	1,320
Acquisitions	7		13		20
Amortization	(216)		(14)		(230)
Foreign currency translation	(21)		—		(21)
Ending balance December 31, 2024	1,063		26		1,089
Acquisitions	34		—		34
Amortization	(216)		(7)		(223)
Foreign currency translation	35		—		35
Ending balance December 31, 2025	$	916	$	19	$	935

The following tables present the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:


December 31, 2025	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In millions)
Other intangible assets:
Client relationships	$	2,831	$	(2,144)	$	687
Technology	405		(293)		112
Core deposits	703		(597)		106
Other	121		(91)		30
Total	$	4,060	$	(3,125)	$	935

December 31, 2024	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In millions)
Other intangible assets:
Client relationships	$	2,706	$	(1,919)	$	787
Technology	401		(252)		149
Core deposits	677		(540)		137
Other	95		(79)		16
Total	$	3,879	$	(2,790)	$	1,089

Amortization expense related to other intangible assets was $223 million, $230 million and $239 million in 2025, 2024 and 2023, respectively.

Expected future amortization expense for other intangible assets recorded as of December 31, 2025 is as follows:


(In millions)	Future Amortization
Years Ended December 31,
2026	$	222
2027	185
2028	132
2029	68
2030	56

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 6. Other Assets

The following table presents the components of other assets as of the dates indicated:


(In millions)	December 31, 2025		December 31, 2024
Securities borrowed(1)	$	38,233	$	37,451
Derivative instruments, net	4,155		11,183
Bank-owned life insurance	3,965		3,856

Investments in joint ventures and other unconsolidated entities(2)	3,753		3,317
Collateral, net	1,603		3,216
Right-of-use assets	865		818
Prepaid expenses	837		738
Deferred tax assets, net of valuation allowance(3)	627		701
Accounts receivable	621		504
Income taxes receivable	256		144

Receivable for securities settlement	102		57

Other(4)	3,451		2,529
Total	$	58,468	$	64,514

(1) Refer to Note 11, for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions.

(2) Includes equity securities without readily determinable fair values that are accounted for under the ASC 321 measurement alternative of $585 million and $341 million as of December 31, 2025 and 2024, respectively. For the year ended December 31, 2025, no impairments were recognized in other fee revenue related to such equity securities.

(3) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction.

(4) Includes advances of $1.57 billion and capitalized costs to fulfill contracts with customers of $1.19 billion as of December 31, 2025, compared to $1.04 billion and $0.92 billion, respectively, as of December 31, 2024.

Note 7. Deposits

We had $2.67 billion and $5.78 billion of time deposits outstanding, of which $0.25 billion and $0.08 billion were non-U.S. time deposits as of December 31, 2025 and 2024, respectively. Time deposits included amounts in excess of the FDIC insurance limits, or other uninsured accounts not subject to any country specific deposit insurance limits, of $2.67 billion and $5.77 billion as of December 31, 2025 and 2024, respectively. As of December 31, 2025, uninsured time deposits of $1.16 billion were scheduled to mature in less than three months and $1.51 billion in three to six months. Demand deposit overdrafts of $1.96 billion and $1.98 billion were included as loan balances at December 31, 2025 and 2024, respectively.

Note 8. Short-Term Borrowings

Our short-term borrowings primarily include securities sold under repurchase agreements and FHLB funding recorded in other short-term borrowings.

Collectively, short-term borrowings had weighted-average interest rates of 4.49% and 5.03% in 2025 and 2024, respectively.

The following tables present information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31:


(Dollars in millions)	Securities Sold Under Repurchase Agreements						Other(1)
	2025			2024				2025			2024
Balance as of December 31	$	841		$	3,681			$	3,750		$	9,815

Average outstanding during the year	2,198			3,163				9,396			11,128
Weighted-average interest rate as of year-end	0.73		%	5.62		%		4.33		%	4.77		%
Weighted-average interest rate during the year	4.32			4.93				4.62			5.19

(1) Primarily includes FHLB borrowings.

Obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. Applicable securities with a fair value of $1.07 billion underlying the repurchase agreements remained in our investment securities portfolio as of December 31, 2025.

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The following table presents information about these securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2025.


	Securities Sold				Repurchase Agreements(1)
(In millions)	Amortized Cost		Fair Value		Amortized Cost

Overnight maturity	$	1,058	$	1,072	$	841

(1) Collateralized by investment securities.

We maintain an agreement with a clearing organization (FICC) that enables us to net securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of the clearing organization when specific netting criteria are met. The impact of this netting was $242.73 billion on average in 2025 compared to $191.26 billion in 2024, primarily due to higher FICC repo volumes.

State Street Bank currently maintains a line of credit of CAD $1.40 billion, or approximately $1.02 billion, as of December 31, 2025, to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancellable by either party with prior notice. As of both December 31, 2025 and 2024, there was no balance outstanding on this line of credit.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 9. Long-Term Debt


(Dollars in millions)						As of December 31,
Issuance Date	Maturity Date	Coupon Rate		Seniority	Interest Due Dates	2025		2024
Parent Company and Non-Banking Subsidiary Issuances
February 28, 2025	February 28, 2028	4.536	%	Senior notes	2/28; 8/28	$	1,346	$	—
October 22, 2024	October 22, 2027	4.330	%	Senior notes	4/22, 10/22(2)	1,208		1,189
August 3, 2023	August 3, 2026	5.272	%	Senior notes	2/3; 8/3(2)	1,204		1,203
November 21, 2023	November 21, 2029	5.684	%	Fixed-to-floating rate senior notes	5/21; 11/21(2)	1,009		986
August 20, 2024	February 20, 2029	4.530	%	Fixed-to-floating rate senior notes	2/20; 8/20(2)	1,007		989
March 18, 2024	March 18, 2027	4.993	%	Senior notes	3/18, 9/18(2)	1,004		993
April 24, 2025	April 24, 2030	4.834	%	Senior notes	4/24; 10/24(2)	1,002		—
May 18, 2023	May 18, 2034	5.159	%	Fixed-to-floating rate senior notes	5/18; 11/18	996		995
October 23, 2025	October 23, 2036	4.784	%	Fixed-to-floating rate senior notes	4/23; 10/23(2)	973		—
March 3, 2021	March 3, 2031(1)(3)	2.200	%	Senior subordinated notes	3/3; 9/3	846		845
October 22, 2024	October 22, 2032	4.675	%	Fixed-to-floating rate senior notes	4/22; 10/22(2)	813		789
January 24, 2020	January 24, 2030(1)	2.400	%	Senior notes	1/24, 7/24(2)	777		784
February 28, 2025	February 28, 2036	5.146	%	Fixed-to-floating rate senior notes	2/28; 8/28	746		—
May 19, 2016	May 19, 2026(1)	2.650	%	Senior notes	5/19; 11/19(2)	745		728
January 26, 2023	January 26, 2034	4.821	%	Fixed-to-floating rate senior notes	1/26, 7/26(2)	728		702
April 24, 2025	April 24, 2028	4.543	%	Fixed-to-floating rate senior notes	4/24; 10/24(2)	699		—
August 4, 2022	August 4, 2033	4.164	%	Fixed-to-floating rate senior notes	2/4; 8/4(2)	695		665
February 28, 2025	February 28, 2030	4.729	%	Senior notes	2/28; 8/28	647		—
February 7, 2022	February 7, 2028	2.203	%	Fixed-to-floating rate senior notes	2/7; 8/7(2)	634		619
December 3, 2018	December 3, 2029	4.141	%	Fixed-to-floating rate senior notes	6/3; 12/3(2)	536		535
November 1, 2019	November 1, 2034(3)	3.031	%	Fixed-to-floating rate senior subordinated notes	5/1; 11/1(2)	518		523
November 21, 2023	November 21, 2034(3)	6.123	%	Fixed-to-floating rate senior subordinated notes	5/21; 11/21(2)	507		492
November 4, 2022	November 4, 2028	5.820	%	Fixed-to-floating rate senior notes	5/4; 11/4(2)	503		495
April 30, 2007	June 15, 2047	Floating-rate		Junior subordinated debentures	3/15; 6/15; 9/15; 12/15	500		500
October 29, 2020	March 30, 2031	3.152	%	Fixed-to-floating rate senior notes	3/30, 9/30	499		498
May 13, 2022	May 13, 2033	4.421	%	Fixed-to-floating rate senior notes	5/13; 11/13	498		498
November 18, 2021	November 18, 2027	1.684	%	Fixed-to-floating rate senior notes	5/18; 11/18(2)	498		497
February 7, 2022	February 7, 2033	2.623	%	Fixed-to-floating rate senior notes	2/7; 8/7(2)	490		465
August 3, 2023	August 3, 2026	Floating-rate		Senior notes	2/3; 5/3; 8/3; 11/3	300		299
October 22, 2024	October 22, 2027	Floating-rate		Senior notes	1/22; 4/22; 7/22; 10/22	299		299
April 24, 2025	April 24, 2028	Floating-rate		Senior notes	1/24; 4/24; 7/24; 10/24	299		—
June 21, 1996	June 15, 2026(1)	7.350	%	Senior notes	6/15; 12/15	150		150
May 15, 1998	May 15, 2028	Floating-rate		Junior subordinated debentures	2/15; 5/15; 8/15; 11/15	100		100
August 18, 2015	August 18, 2025(1)	3.550	%	Senior notes	2/18; 8/18(2)	—		1,285
May 18, 2023	May 18, 2026(4)	5.104	%	Fixed-to-floating rate senior notes	5/18; 11/18	—		999
January 26, 2023	January 26, 2026(4)	4.857	%	Fixed-to-floating rate senior notes	1/26, 7/26(2)	—		499
November 4, 2022	November 4, 2026(4)	5.751	%	Fixed-to-floating rate senior notes	5/4; 11/4(2)	—		498
March 30, 2020	March 30, 2026(4)	2.901	%	Fixed-to-floating rate senior notes	3/30; 9/30(2)	—		497
February 7, 2022	February 6, 2026(4)	1.746	%	Fixed-to-floating rate senior notes	2/6; 8/6(2)	—		299


State Street Bank issuances and lease obligations
November 25, 2024	November 25, 2026(1)	4.594	%	Senior notes	5/25, 11/25	1,148		1,146
November 25, 2024	November 23, 2029(1)	4.782	%	Senior notes	5/23, 11/23	797		796
November 25, 2024	November 25, 2026(1)	Floating-rate		Senior notes	2/25; 5/25; 8/25; 11/25	300		299
Long-term finance leases and equipment financing						122		116
Total long-term debt						$	25,143	$	23,272

(1) We may not redeem notes prior to their maturity.

(2) We have entered into interest rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2025 and 2024, these fair value hedges decreased the carrying value of long-term debt by $3 million and $220 million, respectively. Refer to Note 10 for additional information about fair value hedges.

(3) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines.

(4) We redeemed the notes prior to original maturity date.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

State Street Bank

As of December 31, 2025 and 2024, $106 million and $79 million, respectively, of long-term finance leases was related to information technology equipment. Refer to Note 20 for additional information.

Note 10. Derivative Financial Instruments

We use derivative financial instruments to support our clients’ needs and to manage our interest rate, currency and other market risks. These financial instruments consist of FX contracts such as forwards, futures and options contracts; interest rate contracts such as interest rate swaps (cross currency and single currency) and futures; and other derivative contracts. Derivative instruments used for risk management purposes that are highly effective in offsetting the risk being hedged are generally designated as hedging instruments in hedge accounting relationships, while others are economic hedges and not designated in hedge accounting relationships. Derivatives in hedge accounting relationships are disclosed according to the type of hedge, such as fair value, cash flow or net investment. Derivatives designated as hedging instruments in hedge accounting relationships are carried at fair value with change in fair value recognized in the consolidated statement of income or other comprehensive income (OCI), as appropriate. Derivatives not designated in hedge accounting relationships include those derivatives entered into to support client needs and derivatives used to manage interest rate, currency and other market risks associated with certain assets and liabilities. Such derivatives are carried at fair value with changes in fair value recognized in the consolidated statement of income.

Derivatives Not Designated as Hedging Instruments

We provide foreign exchange forward contracts and options in support of our client needs, and also act as a dealer in the currency markets. As part of our trading activities, we assume positions in both the foreign exchange and interest rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange and interest rate options, interest rate forward contracts, and interest rate futures. The entire change in the fair value of derivatives utilized in our trading activities are recorded in foreign exchange trading services revenue. We also utilize derivatives in our asset and liability management activities and to manage other market risks. The entire change in fair value of such derivatives are recorded in net interest income and other fee revenue, respectively.

We enter into stable value wrap derivative contracts with unaffiliated stable value funds that allow a stable value fund to provide book value coverage to its participants. These derivatives contracts qualify as guarantees as described in Note 12.

We grant deferred cash awards to certain of our employees as part of our employee incentive compensation plans. We account for these awards as derivative financial instruments, as the underlying referenced shares are not equity instruments of ours. The fair value of these derivatives is referenced to the value of units in State Street-sponsored investment funds or funds sponsored by other unrelated entities. We re-measure these derivatives to fair value quarterly, and record the change in value in compensation and employee benefits expenses in our consolidated statement of income.

Derivatives Designated as Hedging Instruments

In connection with our asset and liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk for certain assets and liabilities. At both the inception of the hedge and on an ongoing basis, we formally assess and document the effectiveness of a derivative designated in a hedging relationship and the likelihood that the derivative will be an effective hedge in future periods. We discontinue hedge accounting prospectively when we determine that the derivative is no longer highly effective in offsetting changes in fair value or cash flows of the underlying risk being hedged, the derivative expires, terminates or is sold, or management discontinues the hedge designation.

The risk management objective of a highly effective hedging strategy that qualifies for hedge accounting must be formally documented. The hedge documentation includes the derivative hedging instrument, the asset or liability or forecasted transaction, type of risk being hedged and method for assessing hedge effectiveness of the derivative prospectively and retrospectively. We use quantitative methods including regression analysis and cumulative dollar offset method, comparing the change in the fair value of the derivative to the change in fair value or the cash flows of the hedged item. We may also utilize qualitative methods such as matching critical terms and evaluation of any changes in those critical terms. Effectiveness is assessed and documented quarterly and if determined that the derivative is not highly effective at hedging the designated risk hedge accounting is discontinued.

Fair Value Hedges

Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities, including

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long-term debt and AFS securities. We use interest rate and FX contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates and FX rates, respectively.

Changes in the fair value of the derivative and changes in fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. If a hedge is terminated, but the hedged item was not derecognized, all remaining adjustments to the carrying amount of the hedged item are amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item.

Cash Flow Hedges

Derivatives designated as cash flow hedges are utilized to offset the variability of cash flows of recognized assets, liabilities or forecasted transactions. We have entered into FX contracts to hedge the change in cash flows attributable to FX movements in foreign currency denominated investment securities. Additionally, we have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans and Deposit Facility Interest Rate (DFR) indexed ECB deposits. The interest rate swaps synthetically convert the interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the EURIBOR and DFR.

Changes in fair value of the derivatives designated as cash flow hedges are initially recorded in AOCI and then reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. If the hedge relationship is terminated, the change in fair value on the derivative recorded in AOCI is reclassified into earnings consistent with the timing of the hedged item. During the fourth quarter of 2025 approximately $31 million of net losses associated with terminated cash flow hedges were reclassified from AOCI, and we expect net losses of approximately $29 million to be reclassified from AOCI in the first quarter of 2026. The net loss associated with cash flow hedges expected to be reclassified from AOCI within 12 months of December 31, 2025 is approximately $42 million, which includes a net loss of approximately $48 million related to terminated hedges. These losses could differ from amounts recognized in future periods due to changes in interest rates, hedge de-designations or the addition

of other hedges after December 31, 2025. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge terms, any related derivative values recorded in AOCI are immediately recognized in earnings. The maximum length of time over which forecasted cash flows are hedged is 5 years.

Net Investment Hedges

Derivatives categorized as net investment hedges are entered into to protect the net investment in our foreign operations against adverse changes in exchange rates. We use FX forward contracts to convert the foreign currency risk to U.S. dollars to mitigate our exposure to fluctuations in FX rates. The changes in fair value of the FX forward contracts are recorded, net of taxes, in the foreign currency translation component of OCI.

The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset and liability management activities as of the dates indicated:


(In millions)	December 31, 2025		December 31, 2024
Derivatives not designated as hedging instruments:
Interest rate contracts:



Futures	$	97,035	$	47,222
Foreign exchange contracts:
Forward, swap and spot	2,768,458		2,612,945
Options purchased	436		466
Options written	110		145
Futures	472		359






Other:
Futures	159		155
Stable value contracts(1)	12,271		25,271
Deferred value awards(2)	222		253
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements	42,708		33,302
Foreign exchange contracts:
Forward and swap	12,350		10,260

(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.

(2) Represents grants of deferred value awards to employees; refer to discussion in this note under “Derivatives Not Designated as Hedging Instruments.”

Notional amounts are provided here as an indication of the volume of our derivative activity and serve as a reference to calculate the fair values of the derivative.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. Fair value measurement for derivatives is further discussed in Note 2, and the impact of master netting agreements is provided in Note 11.


	Derivative Assets(1)				Derivative Liabilities(2)
(In millions)	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	14,200	$	29,116	$	13,993	$	28,904


Other derivative contracts	1		1		159		219
Total	$	14,201	$	29,117	$	14,152	$	29,123

Derivatives designated as hedging instruments:
Foreign exchange contracts	$	24	$	323	$	104	$	—
Interest rate contracts	34		28		5		1
Total	$	58	$	351	$	109	$	1

(1) Derivative assets are included within other assets in our consolidated statement of condition.

(2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition.

The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:


		Years Ended December 31,
		2025		2024		2023
(In millions)	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Foreign exchange trading services revenue	$	1,040	$	862	$	803
Foreign exchange contracts	Interest expense	191		274		(54)
Interest rate contracts	Foreign exchange trading services revenue	(3)		21		(2)
Other derivative contracts	Other fee revenue	(10)		(12)		(3)





Other derivative contracts(1)	Compensation and employee benefits	(81)		(189)		(121)
Total		$	1,137	$	956	$	623

(1) Amount in 2024 reflects a deferred compensation expense acceleration of $79 million.

The following tables show the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:


	December 31, 2025
			Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)	Carrying Amount of Hedged Assets/Liabilities		Active		De-designated(1)
Long-term debt	$	15,553	$	(76)	$	72
Available-for-sale securities(2)(3)	22,804		99		—


	December 31, 2024
			Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)	Carrying Amount of Hedged Assets/Liabilities		Active		De-designated(1)
Long-term debt	$	15,951	$	(323)	$	103
Available-for-sale securities(2)(3)	18,666		(376)		1

(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.

(2) Included in these amounts is the amortized cost of the financial assets designated in under the portfolio layer hedging relationships (hedged item is the hedged layer of a closed portfolio of financial assets expected to remain outstanding at the end of the hedging relationship). At December 31, 2025 and 2024, the amortized cost of the closed portfolios used in these hedging relationships was $3.30 billion and $3.32 billion, respectively, of which $1.73 billion and $1.82 billion, respectively, was designated under the portfolio layer hedging relationship. At December 31, 2025 and 2024, the cumulative adjustment associated with these hedging relationships was $21 million and $(26) million, respectively.

(3) Carrying amount represents amortized cost.

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As of December 31, 2025 and 2024, the total notional amount of the interest rate swaps of fair value hedges was $36.12 billion and $31.12 billion, respectively.

The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:


		Years Ended December 31,								Years Ended December 31,
		2025		2024		2023				2025		2024		2023
(In millions)	Location of Gain (Loss) on Derivative in Consolidated Statement of Income	Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income						Hedged Item in Fair Value Hedging Relationship	Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income	Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income
Derivatives designated as fair value hedges:


Interest rate contracts	Net interest income	$	(424)	$	(55)	$	(164)	Available-for-sale securities(1)	Net interest income	$	423	$	55	$	164
Interest rate contracts	Net interest income	247		17		202		Long-term debt	Net interest income	(247)		(17)		(202)
Foreign exchange contracts	Other fee revenue	(18)		21		—		Available-for-sale securities	Other fee revenue	18		(21)		—

Total		$	(195)	$	(17)	$	38			$	194	$	17	$	(38)

(1) For the year ended December 31, 2025, approximately $362 million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to approximately $93 million of net unrealized losses in the same period of 2024.



	Years Ended December 31,								Years Ended December 31,
	2025		2024		2023		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income		2025		2024		2023
(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative							Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts(1)	$	(7)	$	(6)	$	14	Net interest income		$	(136)	$	(200)	$	(210)
Foreign exchange contracts	—		59		91		Net interest income		—		254		2
Total derivatives designated as cash flow hedges	$	(7)	$	53	$	105			$	(136)	$	54	$	(208)

Derivatives designated as net investment hedges:
Foreign exchange contracts	$	(783)	$	540	$	(89)			$	—	$	—	$	—
Total derivatives designated as net investment hedges	(783)		540		(89)				—		—		—
Total	$	(790)	$	593	$	16			$	(136)	$	54	$	(208)

(1) As of December 31, 2025, the maximum maturity date of the underlying hedged items is approximately 5.0 years.

Derivatives Netting and Credit Contingencies

Netting

Derivatives receivable and payable as well as cash collateral from the same counterparty are netted in the consolidated statement of condition for those counterparties with whom we have legally binding master netting agreements in place. In addition to cash collateral received and transferred presented on a net basis, we also receive and transfer collateral in the form of securities, which mitigate credit risk but are not eligible for netting. Additional information on netting is provided in Note 11.

Credit Contingencies

Certain of our derivatives are subject to master netting agreements with our derivative counterparties containing credit risk-related contingent features, which requires us to maintain an investment grade credit rating with the various credit rating agencies. If our rating falls below investment grade, we would be in violation of the provisions, and counterparties to the derivatives could request immediate payment or demand full overnight collateralization on derivative instruments in liability positions. The aggregate fair value of all derivatives with credit contingent features and in a net liability position as of December 31, 2025 totaled approximately $3.49 billion, against which we provided $1.84 billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of December 31, 2025, the maximum additional collateral we would be required to post to our counterparties is approximately $1.65 billion.

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Note 11. Offsetting Arrangements

Certain of our transactions are subject to master netting agreements that allow us to net receivables and payables by contract and settlement type. For those legally enforceable contracts, we net receivables and payables with the same counterparty on our statement of condition.

In addition to netting receivables and payables with our derivatives counterparty where a legal and enforceable netting arrangement exists, we also net related cash collateral received and transferred up to the fair value exposure amount.

With respect to our securities financing arrangements, we net balances outstanding on our consolidated statement of condition for those transactions that met the netting requirements and were transacted under a legally enforceable netting arrangement with the counterparty.

Securities received as collateral under securities financing or derivatives transactions can be transferred as collateral in many instances. The securities received as proceeds under secured lending transactions are recorded at a value that approximates fair value in other assets in our consolidated statement of condition with a related liability to return the collateral, if we have the right to transfer or re-pledge the collateral.

As of December 31, 2025 and 2024, the value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $19.21 billion and $11.41 billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $12.11 billion and $2.76 billion, respectively.

The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:


Assets:	December 31, 2025
	Gross Amounts of Recognized Assets(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts Not Offset in Statement of Condition
(In millions)					Cash and Securities Received(4)			Net Amount(5)
Derivatives:
Foreign exchange contracts	$	14,224	$	(7,618)		$	6,606		$	—	$	6,606
Interest rate contracts(6)	34		(5)			29			—		29


Other derivative contracts	1		—			1			—		1
Cash collateral and securities netting	NA		(2,481)			(2,481)			(956)		(3,437)
Total derivatives	14,259		(10,104)			4,155			(956)		3,199
Other financial instruments:


Resale agreements and securities borrowing(7)(8)	297,824		(252,779)			45,045			(42,683)		2,362
Total derivatives and other financial instruments	$	312,083	$	(262,883)		$	49,200		$	(43,639)	$	5,561

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Assets:	December 31, 2024
	Gross Amounts of Recognized Assets(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Assets Presented in Statement of Condition			Gross Amounts Not Offset in Statement of Condition
(In millions)					Cash and Securities Received(4)			Net Amount(5)
Derivatives:
Foreign exchange contracts	$	29,439	$	(16,424)		$	13,015		$	—	$	13,015
Interest rate contracts(6)	28		(1)			27			—		27


Other derivative contracts	1		—			1			—		1
Cash collateral and securities netting	NA		(1,860)			(1,860)			(1,197)		(3,057)
Total derivatives	29,468		(18,285)			11,183			(1,197)		9,986
Other financial instruments:
Resale agreements and securities borrowing(7)(8)	276,151		(232,021)			44,130			(42,589)		1,541
Total derivatives and other financial instruments	$	305,619	$	(250,306)		$	55,313		$	(43,786)	$	11,527

(1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

(2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.

(3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

(4) Includes securities in connection with our securities borrowing transactions.

(5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

(6) Variation margin payments presented as settlements rather than collateral.

(7) Included in the $45.05 billion as of December 31, 2025 were $6.81 billion of resale agreements and $38.24 billion of collateral provided related to securities borrowing. Included in the $44.13 billion as of December 31, 2024 were $6.68 billion of resale agreements and $37.45 billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions.

(8) Offsetting of resale agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.

NA Not applicable

The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:


Liabilities:	December 31, 2025
	Gross Amounts of Recognized Liabilities(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts Not Offset in Statement of Condition
(In millions)					Cash and Securities Received(4)			Net Amount(5)
Derivatives:
Foreign exchange contracts	$	14,097	$	(7,617)		$	6,480		$	—	$	6,480
Interest rate contracts(6)	5		(5)			—			—		—
Other derivative contracts	159		—			159			—		159
Cash collateral and securities netting	NA		(1,614)			(1,614)			(757)		(2,371)
Total derivatives	14,261		(9,236)			5,025			(757)		4,268
Other financial instruments:


Repurchase agreements and securities lending(7)(8)	273,785		(252,779)			21,006			(20,165)		841
Total derivatives and other financial instruments	$	288,046	$	(262,015)		$	26,031		$	(20,922)	$	5,109

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Liabilities:	December 31, 2024
	Gross Amounts of Recognized Liabilities(1)(2)		Gross Amounts Offset in Statement of Condition(3)			Net Amounts of Liabilities Presented in Statement of Condition			Gross Amounts Not Offset in Statement of Condition
(In millions)					Cash and Securities Received(4)			Net Amount(5)
Derivatives:
Foreign exchange contracts	$	28,904	$	(16,424)		$	12,480		$	—	$	12,480
Interest rate contracts(6)	1		(1)			—			—		—
Other derivative contracts	219		—			219			—		219
Cash collateral and securities netting	NA		(6,103)			(6,103)			(1,572)		(7,675)
Total derivatives	29,124		(22,528)			6,596			(1,572)		5,024
Other financial instruments:
Repurchase agreements and securities lending(7)(8)	250,032		(232,021)			18,011			(17,835)		176
Total derivatives and other financial instruments	$	279,156	$	(254,549)		$	24,607		$	(19,407)	$	5,200

(1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

(2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.

(3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

(4) Includes securities provided in connection with our securities lending transactions.

(5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

(6) Variation margin payments presented as settlements rather than collateral.

(7) Included in the $21.01 billion as of December 31, 2025 were $0.84 billion of repurchase agreements and $20.17 billion of collateral received related to securities lending transactions. Included in the $18.01 billion as of December 31, 2024 were $3.68 billion of repurchase agreements and $14.33 billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 12 for additional information with respect to principal securities finance transactions.

(8) Offsetting of repurchase agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.

NA Not applicable

The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency MBS. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes us to counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels.

The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:




	As of December 31, 2025										As of December 31, 2024
(In millions)	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	243,596	$	—	$	—	$	—	$	243,596	$	223,095	$	350	$	1,277	$	2,500	$	227,222

Total	243,596		—		—		—		243,596		223,095		350		1,277		2,500		227,222
Securities lending transactions:
U.S. Treasury and agency securities	175		—		—		—		175		152		—		—		—		152
Corporate debt securities	29		—		—		—		29		193		—		—		—		193
Equity securities	11,279		—		1		3,215		14,495		11,181		13		—		4,519		15,713
Other(1)	15,490		—		—		—		15,490		6,752		—		—		—		6,752
Total	26,973		—		1		3,215		30,189		18,278		13		—		4,519		22,810
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	270,569	$	—	$	1	$	3,215	$	273,785	$	241,373	$	363	$	1,277	$	7,019	$	250,032

(1) Represents a security interest in underlying client assets related to our prime services business, which assets clients have allowed us to transfer and re-pledge.

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Note 12. Commitments and Guarantees

The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and guarantees, as of the dates indicated:


(In millions)	December 31, 2025		December 31, 2024
Commitments:
Unfunded credit facilities	$	35,697	$	34,191
Guarantees(1):
Indemnified securities financing	$	371,968	$	310,814
Standby letters of credit	569		908

(1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties.

Unfunded Credit Facilities

Unfunded credit facilities consist primarily of liquidity facilities provided to our fund and municipal counterparties, as well as commitments to purchase commercial real estate and commercial loans that have not yet settled.

As of December 31, 2025, approximately 70% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.

Indemnified Securities Financing

On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. We require the borrowers to maintain collateral in an amount in excess of 100% of the fair market value of the securities borrowed. Securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition.

The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against the loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition.

The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated:


(In millions)	December 31, 2025		December 31, 2024
Fair value of indemnified securities financing	$	371,968	$	310,814
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing	393,584		325,611
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements	51,762		63,655
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements	55,943		68,507

In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either our client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of December 31, 2025 and 2024, we had approximately $38.24 billion and $37.45 billion, respectively, of collateral provided and approximately $20.17 billion and $14.33 billion, respectively, of collateral received from clients in connection with our participation in principal securities finance transactions.

Stable Value Protection

Stable value funds wrapped by us are high quality diversified portfolios of short intermediate duration fixed-income investments. Stable value contracts are derivative contracts that also qualify as guarantees. The notional amount under non-hedging derivatives, provided in Note 10, generally represents our maximum exposure under these derivatives contracts. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds.

Standby Letters of Credit

Standby letters of credit provide credit enhancement to our municipal clients to support the issuance of capital markets financing.

FICC Guarantee

We are a direct and sponsoring member of FICC. As a sponsoring member within FICC, we enter into repurchase and resale transactions in eligible securities with sponsored clients and with other FICC members and, pursuant to FICC Government Securities Division rules, submit, novate and net the

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transactions. We may sponsor clients to clear their eligible repurchase transactions with FICC, backed by our guarantee to FICC of the prompt and full payment and performance of our sponsored member clients’ respective obligations. We generally obtain a security interest from our sponsored clients in the high quality securities collateral that they receive, which is designed to mitigate our potential exposure to FICC.

Additionally, as a member of certain industry clearing and settlement exchanges, we may be required to pay a pro rata share of the losses incurred by the organization and provide liquidity support in the event of the default of another member to the extent that the defaulting member’s clearing fund obligation and the prescribed loss allocation is depleted. It is difficult to estimate our maximum possible exposure under the membership agreements, since this would require an assessment of future claims that may be made against us that have not yet occurred. At both December 31, 2025 and 2024, we did not record any liabilities under these arrangements.

For additional information on our repurchase and reverse repurchase agreements, please refer to Note 11 to the consolidated financial statements in this Form 10-K.

Note 13. Contingencies

Legal and Regulatory Matters

In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary awards or payments, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome or development in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation.

We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue our estimate of the amount of

loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter (collectively, “factors influencing reasonable estimates”).

As of December 31, 2025, our aggregate accruals for loss contingencies for legal, regulatory and related matters totaled approximately $43 million, including potential fines by government agencies and civil litigation with respect to the matters specifically discussed below. To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation.

As of December 31, 2025, for those matters for which we have accrued probable loss contingencies and for other matters for which loss is reasonably possible (but not probable) in future periods, and for which we are able to estimate a range of reasonably possible loss, our estimate of the aggregate reasonably possible loss (in excess of any accrued amounts) ranges up to approximately $60 million. Our estimate with respect to the aggregate reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably possible loss will change from time to time. As a result, actual results may vary significantly from the current estimate.

In certain pending matters, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss, and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed

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above. This is due to, among other factors, the factors influencing reasonable estimates described above. An adverse outcome in one or more of the matters for which we have not estimated the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that our actual losses from any legal or regulatory proceeding for which we have provided an estimate of the reasonably possible loss could significantly exceed such estimate, and given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, no conclusion as to our ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss.

The following discussion provides information with respect to significant legal, governmental and regulatory matters.

Edmar Financial Company, LLC et al v. Currenex, Inc. et al

In August 2021, two former Currenex clients filed a putative civil class action lawsuit in the Southern District of New York alleging antitrust violations, fraud and a civil Racketeer Influenced and Corrupt Organization Act violation against Currenex, State Street and others.

Pension Risk Transfer Litigation

State Street Global Advisors Trust Company (Trust Co) is named as a defendant in a series of purported class action complaints filed by participants in pension plans where, in each case, Trust Co was hired as independent fiduciary on behalf of the pension plan to conduct an ERISA-compliant due diligence review of potential insurers who could assume the plan’s liabilities and satisfy its payment obligations through the purchase of a group annuity contract, consistent with DOL guidance. The complaints, collectively, allege violations of ERISA’s fiduciary and prohibited transaction rules against Trust Co, the plan sponsors, and others.

German Tax Matter

In connection with a routine audit including the period 2013-2015, German tax authorities have determined that State Street should have withheld, and is secondarily liable for, certain taxes on dividends paid on securities of German issuers held as collateral over dividend record dates in client lending transactions with counterparties outside of Germany. This determination is subject to review in proceedings in which State Street will in due course contest these conclusions, in addition to separately seeking relief from those determined to be primarily liable.

State of Texas et al v. Blackrock, Inc. et al

In November 2024, eleven state Attorneys General filed a complaint in Federal Court in the Eastern District of Texas against State Street, BlackRock and Vanguard, alleging antitrust violations on the theory that the three companies conspired to artificially suppress coal supply, resulting in harm to American consumers in the form of higher electricity costs.

Income Taxes

In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits were approximately $248 million and $237 million as of December 31, 2025 and 2024, respectively.

We are presently under audit by a number of tax authorities. The earliest tax year open to examination in jurisdictions where we have material operations is 2018. Management believes that we have sufficiently accrued liabilities as of December 31, 2025 for potential tax exposures.

Note 14. Variable Interest Entities

We are involved, in the normal course of our business, with various types of special purpose entities, some of which meet the definition of VIEs. When evaluating a VIE for consolidation, we must determine whether or not we have a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that we do not have a variable interest in the VIE, no further analysis is required and we do not consolidate the VIE. If we hold a variable interest in a VIE, we are required by U.S. GAAP to consolidate that VIE when we have a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. We are determined to have a controlling financial interest in a VIE when we have both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change.

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Asset-Backed Investment Securities

We invest in various forms of ABS, which we carry in our investment securities portfolio. These ABS meet the U.S. GAAP definition of asset securitization entities, which are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs since we do not have control over their activities. Additional information about our ABS is provided in Note 3.

Interests in Investment Funds

In the normal course of business, we manage various types of investment funds through State Street Investment Management in which our clients are investors, including State Street Investment Management commingled investment vehicles and other similar investment structures. The majority of our AUM are contained within such funds. The services we provide to these funds generate management fee revenue. From time to time, we may invest cash in the funds in order for the funds to establish a performance history for newly-launched strategies, referred to as seed capital, or for other purposes.

With respect to our interests in funds that meet the definition of a VIE, a primary beneficiary assessment is performed to determine if we have a controlling financial interest. As part of our assessment, we consider all the facts and circumstances regarding the terms and characteristics of the variable interest(s), the design and characteristics of the fund and the other involvements of the enterprise with the fund. If consolidation of certain funds is required, we retain the specialized investment company accounting rules followed by the underlying funds. When we no longer control these funds due to a reduced ownership interest or other reasons, the funds are de-consolidated and accounted for under another accounting method if we continue to maintain investments in the funds.

As of both December 31, 2025 and 2024, we had no consolidated funds. As of December 31, 2025 and 2024, we managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $22 million and $19 million as of December 31, 2025 and 2024, respectively, and represented the carrying value of our investments, which are recorded in other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds.

Our conclusion to consolidate a fund may vary from period to period, most commonly as a result of

fluctuation in our ownership interest as a result of changes in the number of fund shares held by either us or by third parties. Given that the funds follow specialized investment company accounting rules which prescribe fair value, a de-consolidation generally would not result in gains or losses for us.

The net assets of any consolidated fund are solely available to settle the liabilities of the fund and to settle any investors’ ownership redemption requests, including any seed capital invested in the fund by us. We are not contractually required to provide financial or any other support to any of our funds. In addition, neither creditors nor equity investors in the funds have any recourse to our general credit.

We also held investments in low-income housing, production and investment tax credit entities, considered VIEs for which we were not deemed to be the primary beneficiary. As of December 31, 2025 and 2024, our potential maximum loss exposure related to these unconsolidated entities totaled $0.96 billion and $1.10 billion, respectively, most of which represented the carrying value of our investments, which are recorded in other assets in our consolidated statement of condition.

We account for our low-income housing tax credit investments (LIHTC) and production tax credit investments under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized based on a percentage of the actual income tax credits and other income tax benefits allocated in the current period versus the total estimated income tax credits and other income tax benefits expected to be received over the life of the investment. The net benefit, representing the difference between amortization of the investment balance, recognition of the income tax credits and recognition of other income tax benefits from the investment is recognized as a component of income tax expense.

As of December 31, 2025, we had investments in LIHTC and production tax credit investments of $608 million and $268 million, respectively, which are included in other assets in our consolidated statement of condition. Contingent contributions related to the renewable energy production tax credit investments were $86 million at December 31, 2025. These contributions are contingent on production and expected to be paid through 2034. Deferred contributions related to LIHTC investments were $81 million at December 31, 2025. These deferred contributions are payable in accordance with the respective agreements and are expected to be paid through 2042.

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The following table presents the impact of our tax credit programs for which we have elected to apply proportional amortization accounting on our consolidated statement of income for the periods indicated:


	Years Ended December 31,
(In millions)	2025		2024





Income recorded on investments within other fee revenue	$	17	$	29
Income recorded in total revenue	17		29

Tax credits and benefits recognized in income tax expense	236		256
Proportional amortization recognized in income tax expense	(191)		(207)
Net benefits included in income tax expense	45		49
Net benefit attributable to tax-advantaged investments included in the consolidated statement of income for which proportional amortization has been elected	$	62	$	78

Note 15. Shareholders’ Equity

Preferred Stock

The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of December 31, 2025:


Preferred Stock(1):	Issuance Date	Depositary Shares Issued	Amount outstanding (In millions)		Ownership Interest Per Depositary Share	Liquidation Preference Per Share	Liquidation Preference Per Depositary Share	Per Annum Dividend Rate	Dividend Payment Frequency	Carrying Value as of December 31, 2025 (In millions)		Redemption Date(2)

Series G	April 2016	20,000,000	$	500	1/4,000th	100,000	25	5.35%(3)	Quarterly	$	493	March 15, 2026
Series I	January 2024	1,500,000	1,500		1/100th	100,000	1,000	6.700% through March 14, 2029; resets March 15, 2029 and every subsequent five year anniversary at the five- year U.S. Treasury rate plus 2.613%	Quarterly	1,481		March 15, 2029
Series J	July 2024	850,000	850		1/100th	100,000	1,000	6.700% through September 14, 2029; resets September 15, 2029 and every subsequent five year anniversary at the five-year U.S. Treasury rate plus 2.628%	Quarterly	842		September 15, 2029
Series K	February 2025	750,000	750		1/100th	100,000	1,000	6.450% through September 14, 2030; resets September 15, 2030 and every subsequent five year anniversary at the five- year U.S. Treasury rate plus 2.135%	Quarterly	743		September 15, 2030

(1) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(2) On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(3) The dividend rate for the floating rate period of the Series G preferred stock that begins on March 15, 2026 and all subsequent floating rate periods will remain at the current fixed rate in accordance with the LIBOR Act and the contractual terms of the Series G preferred stock.

On February 6, 2025, we issued 750,000 depositary shares, each representing a 1/100th ownership interest in a share of fixed rate reset, non-cumulative perpetual preferred stock, Series K, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), in a public offering. The aggregate proceeds, net of underwriting discounts, commissions and other issuance costs, were approximately $743 million.

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The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:















	Years Ended December 31,
	2025						2024
(Dollars in millions, except per share amounts)	Dividends Declared per Share		Dividends Declared per Depositary Share		Total		Dividends Declared per Share		Dividends Declared per Depositary Share		Total
Preferred Stock:

Series D	$	—	$	—	$	—	$	1,475	$	0.37	$	11

Series F	—		—		—		2,336		23.36		6
Series G	5,350		1.34		27		5,350		1.34		27
Series H	—		—		—		6,251		62.51		31
Series I	6,700		67.00		100		5,863		58.63		88
Series J	6,700		67.00		57		2,643		26.43		22
Series K	5,536		55.36		42		—		—		—
Total					$	226					$	185

In February 2026, we declared dividends on our series G, I, J and K preferred stock of approximately $1,338, $1,675, $1,675 and $1,613, respectively, per share, or approximately $0.33, $16.75, $16.75 and $16.13, respectively, per depositary share. These dividends total approximately $7 million, $25 million, $14 million and $12 million on our Series G, I, J and K preferred stock, respectively, which will be paid in March 2026.

Common Stock

On January 19, 2024, we announced a common share repurchase program, approved by the Board and superseding all prior programs, authorizing the purchase of up to $5.0 billion of our common stock beginning in the first quarter of 2024. During 2025, we repurchased $1.2 billion of our common stock and since its inception we have repurchased an aggregate of $2.5 billion of our common stock under the 2024 Program through December 31, 2025. The program has no set expiration date.

The table below presents the activity under our common share repurchase program for the periods indicated:


	Years Ended December 31,
	2025					2024
	Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)		Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
2024 Program	11.5	$	104.05	$	1,200	15.1	$	85.89	$	1,300

The table below presents the dividends declared on common stock for the periods indicated:


	Years Ended December 31,
		2025	2024
			Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock			$	3.20	$	909	$	2.90	$	859

In February 2026, we declared a common stock dividend of $0.84 per share, payable on April 13, 2026, to shareholders of record on April 1, 2026.

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Accumulated Other Comprehensive Income (Loss)

The following table presents the after-tax components of AOCI and changes for the periods indicated, net of related taxes:



(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Investment Securities(1)		Net Unrealized Losses on Retirement Plans		Foreign Currency Translation		Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries		Total








Balance as of December 31, 2022	$	(359)	$	(1,817)	$	(143)	$	(1,751)	$	359	$	(3,711)
Other comprehensive income (loss) before reclassifications	75		442		(3)		351		(90)		775
Increase (decrease) due to amounts reclassified from accumulated other comprehensive income	153		428		1		—		—		582
Other comprehensive income (loss)	228		870		(2)		351		(90)		1,357
Balance as of December 31, 2023	(131)		(947)		(145)		(1,400)		269		(2,354)
Other comprehensive income (loss) before reclassifications	39		15		14		(768)		540		(160)
Increase (decrease) due to amounts reclassified from accumulated other comprehensive income	(40)		452		2		—		—		414
Other comprehensive income (loss)	(1)		467		16		(768)		540		254
Balance as of December 31, 2024	(132)		(480)		(129)		(2,168)		809		(2,100)
Other comprehensive income (loss) before reclassifications	(5)		224		36		1,375		(783)		847
Increase (decrease) due to amounts reclassified from accumulated other comprehensive income	104		105		1		—		—		210
Other comprehensive income (loss)	99		329		37		1,375		(783)		1,057
Balance as of December 31, 2025	$	(33)	$	(151)	$	(92)	$	(793)	$	26	$	(1,043)

(1) Includes after-tax net unamortized unrealized gains (losses) of $(267) million, $(374) million and $(530) million as of December 31, 2025, 2024 and 2023, respectively, related to AFS investment securities previously transferred to HTM.

The following table presents after-tax reclassifications into earnings for the periods indicated:




















	Years Ended December 31,
	2025		2024		2023
(In millions)	Amounts Reclassified into Earnings						Affected Line Item in Consolidated Statement of Income



Investment securities:
Net realized (gains) losses from sales of available-for-sale securities, net of related taxes of $(2), $21 and $81 respectively	$	(2)	$	59	$	213	Net gains (losses) from sales of available-for-sale securities
Losses reclassified from accumulated other comprehensive income into income, net of related taxes of $47, $137 and $81 respectively	107		393		215		Net interest income


Cash flow hedges:
Losses (gains) reclassified from accumulated other comprehensive income into income, net of related taxes of $31, $(14) and $55 respectively	104		(40)		153		Net interest income
Retirement plans:
Amortization of actuarial losses, net of related taxes of nil, nil and nil respectively	1		2		1		Compensation and employee benefits expenses



Total amounts reclassified from accumulated other comprehensive income	$	210	$	414	$	582

Note 16. Regulatory Capital

We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors.

As required by the Dodd-Frank Act, we and State Street Bank, as advanced approaches banking organizations, are subject to a “capital floor” in the calculation and assessment of regulatory capital adequacy by the U.S. Agencies. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches.

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As of December 31, 2025, we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of December 31, 2025, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since December 31, 2025 that have changed the capital categorization of State Street Bank.

The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank as of the dates indicated.


					State Street Corporation												State Street Bank
(Dollars in millions)					Basel III Advanced Approaches December 31, 2025			Basel III Standardized Approach December 31, 2025			Basel III Advanced Approaches December 31, 2024			Basel III Standardized Approach December 31, 2024			Basel III Advanced Approaches December 31, 2025			Basel III Standardized Approach December 31, 2025			Basel III Advanced Approaches December 31, 2024			Basel III Standardized Approach December 31, 2024
Common shareholders’ equity:
Common stock and related surplus					$	11,209		$	11,209		$	11,226		$	11,226		$	13,333		$	13,333		$	13,333		$	13,333
Retained earnings					31,392			31,392			29,582			29,582			16,401			16,401			15,977			15,977
Accumulated other comprehensive income (loss)					(1,043)			(1,043)			(2,100)			(2,100)			(815)			(815)			(1,805)			(1,805)
Treasury stock, at cost					(17,276)			(17,276)			(16,198)			(16,198)			—			—			—			—
Total					24,282			24,282			22,510			22,510			28,919			28,919			27,505			27,505
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities					(8,921)			(8,921)			(8,320)			(8,320)			(8,342)			(8,342)			(8,054)			(8,054)
Other adjustments(1)					(549)			(549)			(391)			(391)			(419)			(419)			(278)			(278)
Common equity tier 1 capital					14,812			14,812			13,799			13,799			20,158			20,158			19,173			19,173
Preferred stock					3,559			3,559			2,816			2,816			—			—			—			—


Tier 1 capital					18,371			18,371			16,615			16,615			20,158			20,158			19,173			19,173
Qualifying subordinated long-term debt					1,872			1,872			1,861			1,861			524			524			530			530

Adjusted allowance for credit losses					18			203			—			183			18			203			—			183

Total capital					$	20,261		$	20,446		$	18,476		$	18,659		$	20,700		$	20,885		$	19,703		$	19,886
Risk-weighted assets:
Credit risk(2)					$	60,594		$	125,138		$	63,252		$	124,281		$	56,438		$	121,747		$	57,883		$	121,785
Operational risk(3)					51,638			NA			49,350			NA			50,025			NA			47,538			NA
Market risk					2,125			2,125			2,000			2,000			2,125			2,125			2,000			2,000
Total risk-weighted assets					$	114,357		$	127,263		$	114,602		$	126,281		$	108,588		$	123,872		$	107,421		$	123,785
Adjusted quarterly average assets					$	332,978		$	332,978		$	318,470		$	318,470		$	328,034		$	328,034		$	314,754		$	314,754

Capital Ratios:	2025 Minimum Requirements(4)		2024 Minimum Requirements(4)
Common equity tier 1 capital	8.0	%	8.0	%	13.0		%	11.6		%	12.0		%	10.9		%	18.6		%	16.3		%	17.8		%	15.5		%
Tier 1 capital	9.5		9.5		16.1			14.4			14.5			13.2			18.6			16.3			17.8			15.5
Total capital	11.5		11.5		17.7			16.1			16.1			14.8			19.1			16.9			18.3			16.1
Tier 1 leverage(5)	4.0		4.0		5.5			5.5			5.2			5.2			6.1			6.1			6.1			6.1

(1) Other adjustments within CET1 capital primarily include disallowed deferred tax assets, cash flow hedges that are not recognized at fair value on the balance sheet, and the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities.

(2) Under the advanced approaches, credit risk RWA includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches.

(3) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs.

(4) Minimum requirements include a CCB of 2.5% and a SCB of 2.5% for the advanced approaches and the standardized approach, respectively, a G-SIB surcharge of 1.0% and a countercyclical buffer of 0%.Our SCB requirement remains at 2.5% for the period from October 1, 2025 through September 30, 2026, based on the results of the 2025 supervisory stress test. Additionally, in February 2026 the Federal Reserve Board voted to maintain the current SCB requirements until 2027.

(5) State Street Bank is required to maintain a minimum Tier 1 leverage ratio of 5% as it is the insured depository institution subsidiary of State Street Corporation, a U.S. G-SIB.

NA Not applicable

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 17. Net Interest Income

The following table presents the components of interest income and interest expense, and related NII, for the periods indicated:


	Years Ended December 31,
(In millions)		2025		2024		2023
Interest income:
Interest-bearing deposits with banks		$	2,911	$	3,634	$	2,869
Investment securities:
Investment securities available-for-sale		2,995		2,680		1,744
Investment securities held-to-maturity		917		1,090		1,262


Total investment securities		3,912		3,770		3,006
Securities purchased under resale agreements		672		686		312
Trading account assets		4		—		—
Loans		2,286		2,271		1,862
Other interest-earning assets		1,859		1,616		1,131
Total interest income		11,644		11,977		9,180
Interest expense:
Interest-bearing deposits		6,382		6,627		4,991
Securities sold under repurchase agreements		95		156		34
Federal funds purchased		—		—		3
Other short-term borrowings		434		577		40
Long-term debt		1,230		1,086		888
Other interest-bearing liabilities		543		608		465
Total interest expense		8,684		9,054		6,421
Net interest income		$	2,960	$	2,923	$	2,759

Note 18. Equity-Based Compensation

We record compensation expense for equity-based awards, such as deferred stock and performance awards, based on the closing price of our common stock on the date of grant, adjusted if appropriate, based on the eligibility of the award to receive dividends.

Compensation expense related to equity-based and cash-settled stock awards with service-only conditions and terms that provide for a graded vesting schedule is recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. Compensation expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria. Compensation expense for common stock awards granted to employees meeting early retirement eligibility criteria is fully expensed on the grant date.

Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution.

The 2017 Stock Incentive Plan, (the 2017 Plan), was amended and restated and approved by shareholders in May 2023 for issuance of stock and stock based awards. Awards may be made under the 2017 Plan for (i) up to 15.1 million shares of common stock plus (ii) up to an additional 28.5 million shares that were available to be issued under the 2006 Equity Incentive Plan, (the 2006 Plan), or may become available for issuance under the 2006 Plan due to expiration, termination, cancellation, forfeiture or repurchase of awards granted under the 2006 Plan. As of December 31, 2025, a total of 21.3 million shares from the 2006 Plan have been added to and may be issued from the 2017 Plan. As of December 31, 2025, a cumulative total of 27.4 million shares have been awarded under the 2017 Plan, compared to cumulative totals of 24.7 million shares and 21.7 million shares as of December 31, 2024 and 2023, respectively.

The 2017 Plan allows for shares withheld in payment of the exercise price of an award or in satisfaction of tax withholding requirements, shares forfeited due to employee termination, shares expired under option awards, or shares not delivered when performance conditions have not been met, to be added back to the pool of shares available for issuance under the 2017 Plan. From inception to December 31, 2025, 8.2 million shares had been awarded under the 2017 Plan but not delivered, and have become available for re-issue. As of December 31, 2025, a total of 17.2 million shares were available for future issuance under the 2017 Plan.

For deferred stock awards granted under the Plans, no common stock is issued at the time of grant and the award does not possess dividend and voting rights. Generally, these grants vest over zero to four years. Performance awards granted are earned over a performance period based on the achievement of defined goals, generally over three years. Payment for performance awards is made in shares of our common stock equal to its fair market value per share, based on the performance of certain financial ratios, after the conclusion of each performance period.

Beginning with 2012, malus-based forfeiture provisions were included in deferred stock awards granted to employees identified as “material risk-takers,” as defined by management. These malus-based forfeiture provisions provide for the reduction or cancellation of unvested deferred compensation, such as deferred stock awards and performance-based awards, if it is determined that a material risk-

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taker made risk-based decisions that exposed us to inappropriate risks that resulted in a material unexpected loss at the business-unit, line-of-business or corporate level. In addition, awards granted to certain of our senior executives, as well as awards granted to individuals in certain jurisdictions, may be subject to recoupment after vesting (if applicable) and delivery to the individual in specified circumstances generally relating to fraud or willful misconduct by the individual that results in material harm to us or a material financial restatement.

Compensation expense related to deferred stock awards and performance awards, which we record as a component of compensation and employee benefits expense in our consolidated statement of income, was $268 million, $223 million and $208 million for the years ended December 31, 2025, 2024 and 2023, respectively. Such expense for 2025, 2024 and 2023 excluded an expense of $18 million, $3 million and $12 million, respectively, associated with acceleration of expense in connection with targeted staff reductions. This expense was included in the severance-related portion of the associated restructuring or repositioning charges recorded in each respective year.

For the years ended December 31, 2025, 2024 and 2023, no stock appreciation rights were exercised. As of December 31, 2025, there was no unrecognized compensation cost related to stock appreciation rights.


	Shares (In thousands)	Weighted-Average Grant Date Fair Value
Deferred Stock Awards:








Outstanding as of December 31, 2023	4,968	$	75.72
Granted	2,551	68.70
Vested	(2,513)	73.62
Forfeited	(147)	73.35
Outstanding as of December 31, 2024	4,859	73.20
Granted	2,185	94.24
Vested	(2,440)	77.72
Forfeited	(137)	79.25
Outstanding as of December 31, 2025	4,467	80.83

The total fair value of deferred stock awards vested for the years ended December 31, 2025, 2024 and 2023, based on the weighted average grant date fair value in each respective year, was $190 million, $185 million and $185 million, respectively. As of December 31, 2025, total unrecognized compensation cost related to deferred stock awards, net of estimated forfeitures, was $172 million, which is expected to be recognized over a weighted-average period of 2.3 years.


	Shares (In thousands)	Weighted-Average Grant Date Fair Value
Performance Awards:








Outstanding as of December 31, 2023	2,206	$	74.33
Granted	363	63.49
Forfeited	(28)	80.01
Paid out	(502)	65.70
Outstanding as of December 31, 2024	2,039	74.44
Granted	598	88.47
Forfeited	(28)	75.81
Paid out	(422)	80.27
Outstanding as of December 31, 2025	2,187	77.14

The total fair value of performance awards vested for the years ended December 31, 2025, 2024 and 2023, based on the weighted average grant date fair value in each respective year, was $34 million, $33 million and $43 million, respectively. As of December 31, 2025, total unrecognized compensation cost related to performance awards, net of estimated forfeitures, was $36 million, which is expected to be recognized over a weighted-average period of 2.3 years.


	Shares (In thousands)	Weighted-Average Grant Date Fair Value
Cash-Settled Restricted Stock Awards:








Outstanding as of December 31, 2023	27	$	83.37
Granted	40	69.96

Paid out	(38)	76.11
Outstanding as of December 31, 2024	29	74.52

Paid out	(17)	76.78
Outstanding as of December 31, 2025	12	71.46

The total fair value of cash-settled restricted stock awards vested during the years ended December 31, 2025 and 2024, based on the weighted average grant date fair value, was $1 million and $3 million, respectively. As of December 31, 2025, there was no unrecognized compensation cost related to cash-settled restricted stock awards.

We utilize either treasury shares or authorized but unissued shares to satisfy the issuance of common stock under our equity incentive plans. We do not have a specific policy concerning purchases of our common stock to satisfy stock issuances. We have a general policy concerning purchases of our common stock to meet issuances under our employee benefit plans, including other corporate purposes. Various factors determine the amount and timing of our purchases of our common stock, including regulatory reviews and approvals or non-objections, our regulatory capital requirements, the number of shares we expect to issue under employee benefit plans, market conditions (including the trading price of our common stock), and legal considerations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

These factors can change at any time, and the number of shares of common stock we will purchase or when we will purchase them cannot be assured. Additional information on our common stock purchase program is provided in Note 15.

Note 19. Employee Benefits

Defined Benefit Pension and Other Post-Retirement Benefit Plans

State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. The U.S. defined benefit pension plan was frozen as of December 31, 2007 and no new employees were eligible to participate after that date. We have agreed to contribute sufficient amounts as necessary to meet the benefits paid to plan participants and to fund the plan’s service cost, plus interest. U.S. employee account balances earn annual interest credits until the employee begins receiving benefits. Non-U.S. employees participate in local defined benefit plans which are funded as required in each local jurisdiction. In addition to the defined benefit pension plans, we have non-qualified unfunded SERPs that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. State Street Bank and certain of its U.S. subsidiaries also participate in a post-retirement plan that provides health care benefits for certain retired employees. The total expense for these tax-qualified and non-qualified plans was $16 million, $17 million and $16 million in 2025, 2024 and 2023, respectively.

We recognize the funded status of our defined benefit pension plans and other post-retirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated statement of position. The assets held by the defined benefit pension plans are largely made up of common, collective funds that are liquid and invest principally in U.S. equities and high-quality fixed-income investments. The majority of these assets fall within Level 2 of the fair value hierarchy. The benefit obligations associated with our primary U.S. and non-U.S. defined benefit plans, non-qualified unfunded supplemental retirement plans and post-retirement plans were $1.11 billion, $18 million and nil, respectively, as of December 31, 2025 and $1.10 billion, $19 million and less than $1 million, respectively, as of December 31, 2024. As the primary defined benefit plans are frozen, the benefit obligation will only vary over time as a result of changes in market interest rates, the life expectancy of the plan participants and payments made from the plans. The primary U.S. and non-U.S. defined benefit pension plans were overfunded by $71 million and $26 million as of December 31, 2025 and 2024,

respectively. The non-qualified supplemental retirement plans were underfunded by $18 million and $19 million as of December 31, 2025 and 2024, respectively. The other post-retirement benefit plans had liabilities of nil and were underfunded by less than $1 million as of December 31, 2025 and 2024, respectively. The underfunded status is included in other liabilities.

Defined Contribution Retirement Plans

We contribute to employer-sponsored U.S. and non-U.S. defined contribution plans. Our contribution to these plans was $226 million, $212 million and $194 million in 2025, 2024 and 2023, respectively.

Note 20. Occupancy Expense and Information Systems and Communications Expense

Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization expense in 2025, 2024 and 2023 was $892 million, $824 million and $829 million, respectively.

We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments.

As of December 31, 2025 and 2024, we had finance leases for information technology equipment of $89 million and $67 million, respectively, recorded in premises and equipment, with the related liability of $106 million and $79 million, respectively, recorded in long-term debt, in our consolidated statement of condition.

Finance lease right-of-use asset amortization is recorded in information systems and communications expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. Accumulated amortization of the finance lease right-of-use assets was $182 million as of December 31, 2025. Interest expense related to the finance lease obligation reflected in NII was $3 million in both 2025 and 2024.

As of December 31, 2025, aggregate net book value of the operating lease right-of-use assets recorded in other assets was $865 million, with the related lease liability recorded in accrued expenses and other liabilities in our consolidated statement of condition.

We have entered into non-cancellable operating leases for premises and equipment. Nearly all of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense.

As of December 31, 2025, we have additional operating and finance leases, primarily for office space and equipment, that have not yet commenced with approximately $80 million of undiscounted future minimum lease payments. These leases will largely commence in fiscal year 2026 with lease terms ranging from 2 to 10 years.

None of our leases contain residual value guarantees.

The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for 2025:


	Years Ended December 31,
(In millions)	2025		2024
Finance lease:
Amortization of right-of-use assets	$	47	$	48
Interest on lease liabilities	3		3
Total finance lease expense	50		51
Sublease income	—		—
Net finance lease expense	50		51
Operating lease:
Operating lease expense	179		168


Sublease income	(13)		(17)
Net operating lease expense	166		151
Net lease expense	$	216	$	202

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	3	$	3
Operating cash flows from operating leases	193		179
Financing cash flows from finance leases	43		46
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	214	$	174
Finance leases	64		—

The following table presents future minimum lease payments under non-cancellable leases as of December 31, 2025:


(In millions)	Operating Leases		Finance Leases		Total
2026	$	174	$	34	$	208
2027	154		29		183
2028	136		29		165
2029	101		22		123
2030	83		—		83
Thereafter	410		—		410
Total future minimum lease payments	1,058		114		1,172
Less imputed interest	(195)		(8)		(203)
Total	$	863	$	106	$	969

The following table presents details related to remaining lease terms and discount rate as of December 31, 2025 and 2024:


	December 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years):
Finance leases	3.4		1.4
Operating leases	8.3		8.1
Weighted-average discount rate:
Finance leases	5	%	3	%
Operating leases	5	%	4	%

Note 21. Expenses

The following table presents the components of other expenses for the periods indicated:


	Years Ended December 31,
(In millions)		2025		2024		2023
Professional services		$	444	$	465	$	428
Amortization of other intangible assets		223		230		239

Sales advertising and public relations		174		142		142
Securities processing		58		78		49
Bank operations		50		51		45
Donations		28		28		27
Regulatory fees and assessments(1)		(10)		142		464
Other		521		433		359
Total other expenses		$	1,488	$	1,569	$	1,753

(1) Includes an FDIC special assessment release of $60 million in 2025 and an FDIC special assessment charge of $99 million and $387 million in 2024 and 2023, respectively, related to FDIC’s recovery of estimated losses to the Deposit Insurance Fund associated with the closures of Silicon Valley Bank and Signature Bank reflected in other expenses.

Repositioning Charges

In 2025, we recorded net repositioning charges of $326 million, including $211 million of compensation and employee benefits expenses related to workforce rationalization, $69 million of occupancy costs associated with real estate footprint optimization, and other charges of $24 million and $22 million relating to operating model changes reflected in information systems and communications and other expenses, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In 2024, we recorded a net repositioning release of $2 million, including a $15 million release reflected in compensation and employee benefits expenses, partially offset by $13 million of occupancy charges related to footprint optimization.

The following table presents aggregate activity for repositioning charges for the periods indicated:


(In millions)	Employee Related Costs		Other		Total
Accrual Balance at December 31, 2022	$	83	$	5	$	88
Accruals for Repositioning Charges	182		21		203
Payments and Other Adjustments	(58)		(25)		(83)
Accrual Balance at December 31, 2023	207		1		208
Accruals for Repositioning Charges	(15)		13		(2)
Payments and Other Adjustments	(96)		(14)		(110)
Accrual Balance at December 31, 2024	96		—		96
Accruals for Repositioning Charges	211		115		326
Payments and Other Adjustments	(99)		(115)		(214)
Accrual Balance at December 31, 2025	$	208	$	—	$	208

Note 22. Income Taxes

We use an asset-and-liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it is more likely than not that the position will be sustained. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction.

The following table presents the components of income tax expense (benefit) for the periods indicated:


	Years Ended December 31,
(In millions)	2025		2024		2023
Current:
Federal	$	375	$	108	$	160
State	96		68		79
Non-U.S.	404		387		317
Total current expense	875		563		556
Deferred:
Federal	(133)		77		(77)
State	(1)		2		(63)
Non-U.S.	45		66		(44)
Total deferred expense (benefit)	(89)		145		(184)
Total income tax expense (benefit)	$	786	$	708	$	372

The Company adopted ASU 2023-09, Improvements to Income Tax Disclosures, prospectively for annual periods beginning after December 31, 2024. The following table presents a reconciliation of the U.S. federal statutory tax rate to our effective income tax rate for the year ended December 31, 2025 (after adoption of ASU 2023-09):


	Years Ended December 31,
(Dollars in millions)	2025
U.S. federal income tax rate	$	783	21.0	%
Changes from statutory rate:
State and local income taxes, net of federal income tax effect(1)	81		2.2
Foreign tax effects	45		1.2

Effects of cross-border tax laws(2)	7		0.2




Tax Credits(3)	(68)		(1.8)




Nontaxable or nondeductible items	(27)		(0.8)


Changes in unrecognized tax benefits	(35)		(0.9)
Effective tax rate	$	786	21.1	%

(1) State taxes in Massachusetts, New York State and New York City made up the majority (greater than 50%) of the tax effect in this category.

(2) Effects of cross-border tax laws includes the period expense for global intangible low-taxed income.

(3) Business tax credits include research, low-income housing, production and investment tax credits.

The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated:


	Years Ended December 31,
	2024		2023
U.S. federal income tax rate	21.0	%	21.0	%
Changes from statutory rate:
State taxes, net of federal benefit	1.8		2.4
Tax-exempt income	(1.0)		(1.5)
Business tax credits(1)	(2.0)		(3.6)
Foreign tax differential	1.0		(0.6)

Foreign tax credit (benefits)/ limitations(2)	0.6		(2.0)




Change in Valuation Allowance	(0.5)		(0.2)
Other, net	(0.1)		0.6
Effective tax rate	20.8	%	16.1	%

(1) Business tax credits include research, low-income housing, production and investment tax credits.

(2) Foreign tax credit (benefits)/limitations includes the period expense for global intangible low-taxed income.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Certain earnings of our foreign subsidiaries are considered indefinitely reinvested, and no state, local, or foreign withholding tax liabilities have been recorded on these amounts as the related tax effects are not practicable to estimate. Any future distribution of these earnings is expected to be exempt from U.S. federal income tax but could result in state, local, and foreign withholding taxes. Although foreign withholding taxes may be creditable for U.S. federal income tax purposes, limitations on foreign tax credit utilization could result in a net tax cost.

The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated:


	December 31,
(In millions)	2025		2024
Deferred tax assets:
Other amortizable assets	$	176	$	189
Tax credit carryforwards	656		577
Lease obligations	248		214
Deferred compensation	229		111
Restructuring charges and other reserves	166		227
NOL and other carryforwards	154		147
Pension plan	13		21
Foreign currency translation	24		63
Unrealized losses on investment securities, net	52		184
Total deferred tax assets	1,718		1,733
Valuation allowance for deferred tax assets	(198)		(172)
Deferred tax assets, net of valuation allowance	$	1,520	$	1,561
Deferred tax liabilities:
Fixed and intangible assets	$	654	$	634
Investment basis differences	45		47
Right-of-use assets	240		198
Other	33		40
Total deferred tax liabilities	$	972	$	919

The table below summarizes the deferred tax assets, carryforwards and related valuation allowances recognized as of December 31, 2025:


(In millions)	Deferred Tax Asset		Valuation Allowance		Expiration
Other amortizable assets	$	176	$	(69)	None
Tax credits	656		—		2042-2045
NOLs - Non-U.S.	130		(110)		2026-2042, None
NOLs - U.S.	21		(17)		2026-2041, None
Other carryforwards	2		(2)		None

Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be realized. Management has determined that a valuation allowance is not required for the remaining deferred tax assets because it is more likely than not that there will be sufficient taxable income of the appropriate nature within the carryforward periods to realize these assets.

At December 31, 2025, 2024 and 2023, the gross unrecognized tax benefits, excluding interest,

were $248 million, $237 million and $237 million, respectively. Of this, the amounts that would reduce the effective tax rate, if recognized, are $230 million, $220 million and $197 million, respectively. The reduction in the effective tax rate includes the federal benefit for unrecognized state tax benefits.

The following table presents activity related to unrecognized tax benefits as of the dates indicated:


	December 31,
(In millions)	2025		2024		2023
Beginning balance	$	237	$	237	$	285
Decrease related to agreements with tax authorities	(2)		(22)		(32)
Increase related to tax positions taken during current year	48		36		39
Increase/(Decrease) related to tax positions taken during prior years	23		11		(34)
Decreases related to a lapse of the applicable statute of limitations	(58)		(25)		(21)
Ending balance	$	248	$	237	$	237

Management believes that we have sufficient accrued liabilities as of December 31, 2025 for tax exposures and related interest expense.

Income tax expense included related interest and penalties of approximately $9 million, $8 million and $7 million in 2025, 2024 and 2023, respectively. Total accrued interest and penalties were approximately $29 million as of December 31, 2025, and $21 million as of both December 31, 2024 and 2023.

The table below summarizes income taxes paid for the year ended December 31, 2025 (after adoption of ASU 2023-09):


(In millions)	Year Ended December 31, 2025

U.S. Federal	$	78
U.S. State:

New York State	28
Other	33
Total U.S. State	61
Foreign:
United Kingdom	110
Canada	54
Luxembourg	46
Ireland	36
India	34
Italy	31



Other	144
Total Foreign	455
Total income taxes paid	$	594

Total income taxes paid for the years ended December 31, 2024 and 2023, were $451 million and $423 million, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 23. Earnings Per Common Share

Basic EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of equity-based awards. The effect of equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive.

The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

The following table presents the computation of basic and diluted earnings per common share for the periods indicated:


	Years Ended December 31,
(Dollars in millions, except per share amounts)	2025		2024		2023
Net income	$	2,945	$	2,687	$	1,944
Less:
Preferred stock dividends	(226)		(202)		(122)
Dividends and undistributed earnings allocated to participating securities(1)	(2)		(2)		(1)
Net income available to common shareholders	$	2,717	$	2,483	$	1,821
Average common shares outstanding (In thousands):
Basic average common shares	284,545		297,883		322,337
Effect of dilutive securities: equity-based awards	4,474		4,343		4,231
Diluted average common shares	289,019		302,226		326,568
Anti-dilutive securities(2)	9		14		1,251
Earnings per common share:
Basic	$	9.55	$	8.33	$	5.65
Diluted(3)	9.40		8.21		5.58

(1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

(2) Represents equity-based awards outstanding, but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided in Note 18.

(3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.

Note 24. Line of Business Information

Our operations are organized into two lines of business, which represent our reportable segments: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities.

Our servicing and management fee revenue from the Investment Servicing and Investment Management business lines, including foreign exchange trading services and securities finance activities, represents approximately 70% of our consolidated total revenue. The remaining 30% is composed of software and processing fees, including front office software and data and lending related and other fees, as well as NII, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.

Revenue and expenses are directly charged or allocated to our lines of business through

management information systems. Our CODM is the chief executive officer. The line of business results are regularly provided to the CODM to evaluate the performance of each line of business and to inform how resources are allocated between those lines of business to best achieve management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following is a summary of our line of business results for the periods indicated.

























	Years Ended December 31,
	Investment Servicing									Investment Management									Other						Total
(Dollars in millions)	2025			2024			2023			2025			2024			2023			2025		2024		2023		2025			2024			2023
Revenue:
Servicing fees	$	5,324		$	5,016		$	4,922		$	—		$	—		$	—		$	—	$	—	$	—	$	5,324		$	5,016		$	4,922
Management fees	—			—			—			2,398			2,124			1,876			—		—		—		2,398			2,124			1,876
Foreign exchange trading services	1,441			1,248			1,140			170			138			125			3		15		—		1,614			1,401			1,265
Securities finance	481			415			402			24			23			24			—		—		—		505			438			426
Software and processing fees	927			888			811			—			—			—			(24)		—		—		903			888			811
Other fee revenue	209			188			145			27			35			35			—		66		—		236			289			180
Total fee revenue	8,382			7,755			7,420			2,619			2,320			2,060			(21)		81		—		10,980			10,156			9,480
Net interest income	2,945			2,899			2,740			15			24			19			—		—		—		2,960			2,923			2,759
Total other income	4			2			—			—			—			—			—		(81)		(294)		4			(79)			(294)
Total revenue	11,331			10,656			10,160			2,634			2,344			2,079			(21)		—		(294)		13,944			13,000			11,945
Provision for credit losses	59			75			46			—			—			—			—		—		—		59			75			46
Expenses:
Compensation and employee benefits	4,220			4,078			4,033			604			555			520			211		64		191		5,035			4,697			4,744
Information systems and communications	1,960			1,743			1,568			92			86			94			42		—		41		2,094			1,829			1,703
Transaction processing services	875			825			777			175			173			180			—		—		—		1,050			998			957

Other	1,001			1,041			1,035			904			841			746			70		124		398		1,975			2,006			2,179
Total expenses	8,056			7,687			7,413			1,775			1,655			1,540			323		188		630		10,154			9,530			9,583
Income before income tax expense	$	3,216		$	2,894		$	2,701		$	859		$	689		$	539		$	(344)	$	(188)	$	(924)	$	3,731		$	3,395		$	2,316
Pre-tax margin	28		%	27		%	27		%	33		%	29		%	26		%							27		%	26		%	19		%

Average assets (in billions)	$	339.9		$	308.5		$	271.5		$	3.6		$	3.2		$	3.2								$	343.5		$	311.7		$	274.7

The “Other” columns presented in the previous table, represent amounts that are not allocated to our two lines of business. The following provides additional information about the items included in the line of business results “Other” column for the periods indicated.


	Years Ended December 31,
	Other
(Dollars in millions)	2025		2024		2023
Foreign exchange trading services(1)	$	3	$	15	$	—
Client rescoping (revenue impact)(2)	(24)		—		—
Other fee revenue(3)	—		66		—
Gains (losses) related to investment securities, net(4)	—		(81)		(294)
Deferred incentive compensation expense acceleration(5)	—		(79)		—
Net repositioning (charges) release(6)	(326)		2		(203)
Client rescoping (expense impact)(2)	(18)		—		—
Other notable items(7)	21		(111)		(427)
Total	$	(344)	$	(188)	$	(924)

(1) Amount consists of a revenue-related recovery associated with the proceeds from a 2018 foreign exchange benchmark litigation resolution, which is reflected in foreign exchange trading services revenue.

(2) Amount related to a client rescoping which decreased income before income taxes by $42 million, of which $24 million is reflected in front office software and data revenue and $18 million is reflected in information systems and communications expenses.

(3) Amount consists of a $66 million gain on sale of equity investment, which is reflected in other fee revenue.

(4) Includes the loss on the sale of investment securities of $81 million and $294 million in 2024 and 2023, respectively, related to the repositioning of the investment portfolio.

(5) Deferred compensation expense acceleration of $79 million in 2024 reflected in compensation and employee benefits, associated with an amendment of certain outstanding deferred cash incentive compensation awards to align our deferred pay mix with peers.

(6) Amount in 2025 includes a charge of $211 million, reflected in compensation and employee benefits primarily from workforce rationalization, a $69 million charge reflected in occupancy costs associated with real estate footprint optimization and other repositioning charges of $24 million and $22 million, reflected in information systems and communications and other expenses, respectively, relating to operating model changes. The amount in 2024 includes a $15 million release related to compensation and employee benefits, partially offset by $13 million related to occupancy costs associated with real estate footprint, and net repositioning charges in 2023 includes $182 million reflected in compensation and employee benefits expenses related to workforce rationalization and $21 million of occupancy costs related to real estate footprint optimization.

(7) Amount in 2025 primarily includes an FDIC special assessment release of $60 million and legal and related costs of $40 million reflected in other expenses. Amounts in 2024 and 2023 are primarily related to the FDIC special assessment of $99 million and $387 million, respectively, reflected in other expenses. Other notable items also include a $12 million charge in 2024 reflected in other expenses and $41 million in 2023 reflected in information systems and communications, primarily related to operating model changes.

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STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 25. Revenue from Contracts with Customers

We account for revenue from contracts with customers in accordance with ASC 606. The amount of revenue that we recognize is measured based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further discussed below. Revenue recognition guidance related to contracts with customers excludes our NII, revenue earned on security lending transactions entered into as principal, realized gains/losses on securities, revenue earned on foreign exchange activity, loans and related fees, and gains/losses on hedging and derivatives, to which we apply other applicable U.S. GAAP guidance.

For contracts with multiple performance obligations, or contracts that have been combined, we allocate the contracts’ transaction price to each performance obligation using our best estimate of the standalone selling price. Our contractual fees are negotiated on a customer by customer basis and are representative of standalone selling price utilized for allocating revenue when there are multiple performance obligations.

Substantially all of our services are provided as a distinct series of daily performance obligations that the customer simultaneously benefits from as they are performed. Payments may be made to third party service providers and the expense is recognized gross when we control those services as we are deemed the principal.

Contract durations may vary from short- to long-term or may be open ended. Termination notice periods are in line with general market practice and typically do not include termination penalties. Therefore, for substantially all of our revenues, the duration of the contract and the enforceable rights and obligations do not extend beyond the services that are performed daily or at the transaction level. In instances where we have substantive termination penalties, the duration of the contract may extend through the date of substantive termination penalties.

Investment Servicing

Revenue from contracts with customers related to servicing fees is recognized over time as our customers benefit from the custody, administration, accounting, transfer agency and other related asset services as they are performed. At contract inception, no revenue is estimated as the fees are dependent on assets under custody and/or administration and/or actual transactions which are susceptible to market factors outside of our control. Therefore, revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under custody or transactions are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as sub-custodians, are generally recognized gross as we control those services and are deemed to be a principal in such arrangements.

Foreign exchange trading services revenue includes revenue generated from providing access and use of electronic trading platforms and other trading, transition management and brokerage services. Electronic FX services are dependent on the volume of actual transactions initiated through our electronic exchange platforms. Revenue is recognized over time using a time-based measure as access to, and use of, the electronic exchange platforms is made available to the customer and the activity is determinable. Revenue related to other trading, transition management and brokerage services is recognized when the customer obtains the benefit of such services which may be over time or at a point in time upon trade execution.

Securities finance revenue is related to services for providing agency lending programs to State Street Investment Management managed investment funds and third-party investment managers and asset owners. This securities finance revenue is recognized over time using a time-based measure as our customers benefit from these lending services.

Revenue related to the front office solutions provided by CRD is primarily driven by the sale of licenses and SaaS arrangements, including professional services such as consulting and implementation services, software support and maintenance. Revenue for a sale of software to be installed on-premises is recognized at a point in time when the customer benefits from obtaining access to and use of the software license. Revenue for a SaaS-related arrangement is recognized over time as services are provided.

Investment Management

Revenue from contracts with customers related to investment management, investment research and investment advisory services provided through State Street Investment Management is recognized over time as our customers benefit from the services as they are performed. Substantially all of our investment management fees are determined by the value of assets under management and the investment strategies employed. At contract inception, no revenue is estimated as the fees are dependent on assets under management which are susceptible to market factors outside of our control.

Therefore, substantially all of our Investment Management services revenue is recognized using a time-based

State Street Corporation | 169

STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

output method as the customers benefit from the services over time and as the assets under management are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as payments to others in unitary fee arrangements, are generally recognized on a gross basis when State Street Investment Management controls those services and is deemed to be a principal in such transactions.

Revenue by category

In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The amounts in the “Other” columns were not allocated to our business lines.


	Year Ended December 31, 2025
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		2025
Servicing fees	$	5,324	$	—	$	5,324	$	—	$	—	$	—	$	—	$	—	$	—	$	5,324
Management fees	—		—		—		2,398		—		2,398		—		—		—		2,398
Foreign exchange trading services	414		1,027		1,441		170		—		170		—		3		3		1,614
Securities finance	212		269		481		—		24		24		—		—		—		505
Software and processing fees	731		196		927		—		—		—		(24)		—		(24)		903
Other fee revenue	—		209		209		—		27		27		—		—		—		236
Total fee revenue	6,681		1,701		8,382		2,568		51		2,619		(24)		3		(21)		10,980
Net interest income	—		2,945		2,945		—		15		15		—		—		—		2,960
Total other income	—		4		4		—		—		—		—		—		—		4
Total revenue	$	6,681	$	4,650	$	11,331	$	2,568	$	66	$	2,634	$	(24)	$	3	$	(21)	$	13,944

	Year Ended December 31, 2024
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		2024
Servicing fees	$	5,016	$	—	$	5,016	$	—	$	—	$	—	$	—	$	—	$	—	$	5,016
Management fees	—		—		—		2,124		—		2,124		—		—		—		2,124
Foreign exchange trading services	386		862		1,248		138		—		138		—		15		15		1,401
Securities finance	185		230		415		—		23		23		—		—		—		438
Software and processing fees	685		203		888		—		—		—		—		—		—		888
Other fee revenue	—		188		188		—		35		35		—		66		66		289
Total fee revenue	6,272		1,483		7,755		2,262		58		2,320		—		81		81		10,156
Net interest income	—		2,899		2,899		—		24		24		—		—		—		2,923
Total other income	—		2		2		—		—		—		—		(81)		(81)		(79)
Total revenue	$	6,272	$	4,384	$	10,656	$	2,262	$	82	$	2,344	$	—	$	—	$	—	$	13,000


	Year Ended December 31, 2023
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		Topic 606 revenue		All other revenue		Total		2023
Servicing fees	$	4,922	$	—	$	4,922	$	—	$	—	$	—	$	—	$	—	$	—	$	4,922
Management fees	—		—		—		1,876		—		1,876		—		—		—		1,876
Foreign exchange trading services	344		796		1,140		125		—		125		—		—		—		1,265
Securities finance	225		177		402		—		24		24		—		—		—		426
Software and processing fees	627		184		811		—		—		—		—		—		—		811
Other fee revenue	—		145		145		—		35		35		—		—		—		180
Total fee revenue	6,118		1,302		7,420		2,001		59		2,060		—		—		—		9,480
Net interest income	—		2,740		2,740		—		19		19		—		—		—		2,759
Total other income	—		—		—		—		—		—		—		(294)		(294)		(294)
Total revenue	$	6,118	$	4,042	$	10,160	$	2,001	$	78	$	2,079	$	—	$	(294)	$	(294)	$	11,945

State Street Corporation | 170

STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Contract balances

As of December 31, 2025 and 2024, net receivables of $3.51 billion and $3.08 billion, respectively, are included in accrued interest and fees receivable and other assets, representing amounts billed or currently billable related to revenue from contracts with customers. As performance obligations are satisfied, we have an unconditional right to payment and billing is generally performed monthly or quarterly.

We had $131 million and $144 million of deferred revenue as of December 31, 2025 and 2024, respectively. Deferred revenue is a contract liability which represents payments received and accounts receivable recorded in advance of providing services and is included in accrued expenses and other liabilities in the consolidated statement of condition. In the year ended December 31, 2025, we recognized revenue of $121 million relating to deferred revenue of $144 million as of December 31, 2024.

Transaction price allocated to the remaining performance obligations represents future, non-cancellable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancellable amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2025, total remaining non-cancelable performance obligations for services and products not yet delivered, primarily comprised of software license sales and SaaS, were approximately $2.07 billion. We expect to recognize approximately half of this amount in revenue over the next three years, with the remainder to be recognized thereafter.

No adjustments are made to the promised amount of consideration for the effects of a significant financing component as the period between when we transfer a promised service to a customer and when the customer pays for that service is expected to be one year or less.

Note 26. Non-U.S. Activities

We define our non-U.S. activities as those revenue-producing business activities that arise from clients that are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible.

Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities.

The following table presents our U.S. and non-U.S. financial results for the periods indicated:














	Years Ended December 31,
	2025						2024						2023
(In millions)	Non-U.S.(1)		U.S.		Total		Non-U.S.(1)		U.S.		Total		Non-U.S.(1)		U.S.		Total
Total revenue	$	5,936	$	8,008	$	13,944	$	5,485	$	7,515	$	13,000	$	5,108	$	6,837	$	11,945
Income before income tax expense	1,493		2,238		3,731		1,376		2,019		3,395		1,057		1,259		2,316

(1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.

Non-U.S. assets were $95.68 billion and $88.35 billion as of December 31, 2025 and 2024, respectively.

State Street Corporation | 171

STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 27. Parent Company Financial Statements

The following tables present the financial statements of the Parent Company without consolidation of its banking and non-banking subsidiaries, as of and for the years indicated:

Statement of Income - Parent Company


	Years Ended December 31,
(In millions)	2025		2024		2023
Cash dividends from consolidated banking subsidiary	$	2,600	$	1,250	$	4,550
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities	316		58		320
Other, net	593		516		274
Total revenue	3,509		1,824		5,144
Interest expense	1,235		1,170		975
Other expenses	257		239		198
Total expenses	1,492		1,409		1,173
Income tax benefit	(209)		(232)		(224)
Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities	2,226		647		4,195

Equity in undistributed income (loss) of consolidated subsidiaries and unconsolidated entities:
Consolidated banking subsidiary	425		1,522		(2,464)
Consolidated non-banking subsidiaries and unconsolidated entities	294		518		213
Net income	$	2,945	$	2,687	$	1,944

Statement of Condition - Parent Company


	As of December 31,
(In millions)	2025		2024
Assets:
Interest-bearing deposits with consolidated banking subsidiary	$	627	$	438
Trading account assets	539		499
Investment securities available-for-sale	428		378
Investments in:
Consolidated banking subsidiary	28,919		27,504
Consolidated non-banking subsidiaries	11,584		10,487
Unconsolidated entities	104		114
Notes and other receivables from:
Consolidated banking subsidiary	142		170
Consolidated non-banking subsidiaries and unconsolidated entities	10,805		9,211

Other assets	218		127
Total assets	$	53,366	$	48,928
Liabilities:
Notes and other payables to:
Consolidated banking subsidiary	$	9	$	—
Consolidated non-banking subsidiaries and unconsolidated entities	2,082		2,063
Accrued expenses and other liabilities	679		652
Long-term debt	22,755		20,887
Total liabilities	25,525		23,602
Shareholders’ equity	27,841		25,326
Total liabilities and shareholders’ equity	$	53,366	$	48,928

State Street Corporation | 172

STATE STREET CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Statement of Cash Flows - Parent Company


	Years Ended December 31,
(In millions)	2025		2024		2023
Net cash provided by operating activities	$	2,283	$	622	$	4,194
Investing Activities:
Net (decrease) increase in interest-bearing deposits with consolidated banking subsidiary	(189)		221		(199)
Proceeds from sales and maturities of available-for-sale securities	1,670		1,120		830
Purchases of available-for-sale securities	(1,701)		(1,204)		(836)
Investments in consolidated banking and non-banking subsidiaries	(11,102)		(9,330)		(10,784)
Sale or repayment of investment in consolidated banking and non-banking subsidiaries	9,100		7,875		7,920


Net cash used in investing activities	(2,222)		(1,318)		(3,069)
Financing Activities:


Proceeds from issuance of long-term debt, net of issuance costs	5,722		4,281		6,221
Payments for long-term debt	(4,100)		(2,000)		(2,500)
Proceeds from issuance of preferred stock, net of issuance costs	743		2,350		—
Payments for redemption of preferred stock	—		(1,500)		—

Repurchases of common stock	(1,200)		(1,319)		(3,781)
Repurchases of common stock for employee tax withholding	(106)		(83)		(95)
Payments for cash dividends	(1,120)		(1,033)		(970)
Net cash (used in) provided by financing activities	(61)		696		(1,125)
Net change	—		—		—
Cash and due from banks at beginning of year	—		—		—
Cash and due from banks at end of year	$	—	$	—	$	—

State Street Corporation | 173

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

Distribution of Average Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential

The following table presents consolidated average statements of condition and NII for the years indicated:


	Years Ended December 31,
	2025						2024						2023
(Dollars in millions; fully taxable-equivalent basis)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
Assets:
Interest-bearing deposits with non-U.S. banks	$	52,533	$	1,122	2.14	%	$	49,279	$	1,533	3.11	%	$	39,071	$	1,260	3.22	%
Interest-bearing deposits with U.S. banks	41,013		1,789		4.36		39,475		2,101		5.32		30,812		1,609		5.22
Securities purchased under resale agreements	8,232		672		8.16		6,789		686		10.10		1,764		312		17.67

Trading account assets	807		4		0.45		782		—		—		711		—		—
Investment securities:
U.S. Treasury and federal agencies(1)	76,512		2,440		3.19		70,914		2,013		2.84		69,890		1,594		2.28
State and political subdivisions(1)	34		1		2.70		265		9		3.52		621		14		2.33
Other investments	34,040		1,471		4.32		33,605		1,750		5.21		35,254		1,402		3.98

Loans	45,789		2,287		5.00		39,660		2,272		5.73		34,800		1,863		5.35

Other interest-earning assets	35,754		1,859		5.20		25,300		1,616		6.39		18,098		1,131		6.25
Total interest-earning assets(1)	294,714		11,645		3.95		266,069		11,980		4.50		231,021		9,185		3.98
Cash and due from banks	4,134						3,674						3,925
Other assets	44,657						41,980						39,750
Total assets	$	343,505					$	311,723					$	274,696

Liabilities and shareholders’ equity:
Interest-bearing deposits:
Time	$	4,951	$	228	4.61	%	$	2,103	$	116	5.51	%	$	4,352	$	243	5.59	%
Savings	151,357		5,116		3.38		133,795		5,416		4.05		105,852		3,733		3.53
Non-U.S.	71,904		1,038		1.44		64,144		1,095		1.71		62,689		1,015		1.62
Total interest-bearing deposits	228,212		6,382		2.80		200,042		6,627		3.31		172,893		4,991		2.89
Securities sold under repurchase agreements	2,198		95		4.32		3,163		156		4.93		3,904		34		0.87
Federal funds purchased	—		—		—		—		—		—		65		3		4.82

Other short-term borrowings	9,590		434		4.53		11,425		577		5.05		1,120		40		3.60
Long-term debt	25,006		1,230		4.92		20,394		1,086		5.32		17,355		888		5.12
Other interest-bearing liabilities	4,027		543		13.47		4,826		608		12.59		3,891		465		11.96
Total interest-bearing liabilities	269,033		8,684		3.23		239,850		9,054		3.77		199,228		6,421		3.22
Non-interest-bearing deposits:

Demand	22,394						23,695						30,065
Non-U.S.(2)	2,396						1,874						2,153
Other liabilities	22,621						21,192						19,073
Shareholders’ equity	27,061						25,112						24,177
Total liabilities and shareholders’ equity	$	343,505					$	311,723					$	274,696
Net interest income, fully taxable-equivalent basis			$	2,961					$	2,926					$	2,764
Excess of rate earned over rate paid					0.72	%					0.73	%					0.75	%
Net interest margin(3)					1.00						1.10						1.20

(1) Fully taxable-equivalent revenue is a method of presentation in which the tax savings achieved by investing in tax-exempt investment securities and certain leases are included in interest income with a corresponding charge to income tax expense. This method facilitates the comparison of the performance of these assets. The adjustments are computed using a federal income tax rate of 21% for periods ending in 2025, 2024 and 2023, adjusted for applicable state income taxes, net of the related federal tax benefit. The fully taxable-equivalent adjustments included in interest income presented above were $1 million, $3 million and $5 million for the years ended December 31, 2025, 2024 and 2023, respectively, and were substantially related to tax-exempt securities (state and political subdivisions).

(2) Non-U.S. non-interest-bearing deposits were $3.57 billion, $2.14 billion and $2.81 billion as of December 31, 2025, 2024 and 2023, respectively.

(3) NIM is calculated by dividing fully taxable-equivalent NII by average total interest-earning assets.

State Street Corporation | 174

SUPPLEMENTAL FINANCIAL DATA (CONTINUED)

The following table summarizes changes in fully taxable-equivalent interest income and interest expense due to changes in volume of interest-earning assets and interest-bearing liabilities, and due to changes in interest rates. Changes attributed to both volumes and rates have been allocated based on the proportion of change in each category.


Years Ended December 31,	2025 Compared to 2024						2024 Compared to 2023
(Dollars in millions; fully taxable-equivalent basis)	Change in Volume		Change in Rate		Net (Decrease) Increase		Change in Volume		Change in Rate		Net (Decrease) Increase
Interest income related to:
Interest-bearing deposits with non-U.S. banks	$	101	$	(512)	$	(411)	$	329	$	(56)	$	273
Interest-bearing deposits with U.S. banks	82		(394)		(312)		452		40		492
Securities purchased under resale agreements	146		(160)		(14)		888		(514)		374
Trading account assets	—		4		4		—		—		—
Investment securities:
U.S. Treasury and federal agencies	159		268		427		23		396		419
State and political subdivisions	(8)		—		(8)		(8)		3		(5)
Other investments	23		(302)		(279)		(66)		414		348

Loans	351		(336)		15		260		149		409

Other interest-earning assets	668		(425)		243		450		35		485
Total interest-earning assets	1,522		(1,857)		(335)		2,328		467		2,795
Interest expense related to:
Deposits:
Time	157		(45)		112		(126)		(1)		(127)
Savings	711		(1,011)		(300)		985		698		1,683
Non-U.S.	133		(190)		(57)		24		56		80
Securities sold under repurchase agreements	(48)		(13)		(61)		(6)		128		122
Federal funds purchased	—		—		—		(3)		—		(3)

Other short-term borrowings	(93)		(50)		(143)		371		166		537
Long-term debt	245		(101)		144		155		43		198
Other interest-bearing liabilities	(101)		36		(65)		112		31		143
Total interest-bearing liabilities	1,004		(1,374)		(370)		1,512		1,121		2,633
Net interest income	$	518	$	(483)	$	35	$	816	$	(654)	$	162

State Street Corporation | 175


ACRONYMS


ABS	Asset-backed securities	HQLA(1)	High-quality liquid assets
AFS	Available-for-sale	HRC	Human Resources Committee
AML	Anti-money laundering	HTM	Held-to-maturity
AOCI	Accumulated other comprehensive income (loss)	IDI	Insured Depository Institution
ASU	Accounting Standards Update	LCR(1)	Liquidity coverage ratio
AUC/A	Assets under custody and/or administration	LDA model	Loss distribution approach model
AUM	Assets under management	LIBOR	London Interbank Offered Rate
BCCC	Business Conduct and Compliance Committee	LTD	Long-term debt
bps	Basis points	MBS	Mortgage-backed securities
CAP	Capital adequacy process	MRC	Model Risk Committee
CCB	Capital conservation buffer	MRM	Model Risk Management
CECL	Current Expected Credit Loss	MVG	Model Validation Group
CET1(1)	Common equity tier 1	NII	Net interest income
CFTC	Commodity Futures Trading Commission	NIM	Net interest margin
CLO	Collateralized loan obligation	NOL	Net Operating Loss
CMBS	Commercial mortgage-backed securities	NSFR(1)	Net stable funding ratio
CMRC	Credit and Market Risk Committee	OCC	Office of the Comptroller of the Currency
CODM	Chief Operating Decision Maker	OFAC	Office of Foreign Assets Control
COSO	Committee of Sponsoring Organizations of the Treadway Commission	ORM	Operational risk management
CC	Credit Committee	OTC	Over-the-counter
CRD	Charles River Development	PCA	Prompt corrective action
CRO	Chief Risk Officer	PCAOB	Public Company Accounting Oversight Board
CVA	Credit valuation adjustment	PD(1)	Probability-of-default
DFAST	Dodd-Frank Act Stress Test	P&L	Profit-and-loss
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010	RC	Risk Committee
DORA	Digital Operational Resilience Act	RMBS	Residential mortgage-backed securities
E&A Committee	Examining and Audit Committee	RWA(1)	Risk-weighted assets
ECB	European Central Bank	SA-CCR	Standardized approach for counterparty credit risk
EGRRCPA	Economic Growth, Regulatory Relief, and Consumer Protection Act	SaaS	Software as a service
EPS	Earnings per share	SCB	Stress Capital Buffer
ERC	Enterprise Risk Committee	SEC	Securities and Exchange Commission
ERM	Enterprise Risk Management	SIFI	Systemically important financial institutions
ESG	Environmental, social and governance	SLB	Stress Leverage Buffer
eSLR(1)	Enhanced supplementary leverage ratio	SLR(1)	Supplementary leverage ratio
ETF	Exchange-Traded Fund	SOFR	Secured Overnight Financing Rate
EURIBOR	Euro Interbank Offered Rate	SPDR	Spider; Standard and Poor's depository receipt
E.U.	European Union	SPOE Strategy	Single Point of Entry Strategy
EVE	Economic value of equity	SSIF	State Street Intermediate Funding, LLC
FDIC	Federal Deposit Insurance Corporation	TLAC(1)	Total loss-absorbing capacity
FHLB	Federal Home Loan Bank of Boston	TMRC	Trading and Markets Risk Committee
FICC	Fixed Income Clearing Corporation	TOPS	Technology and Operations Committee
FTE	Fully taxable-equivalent	TORC	Technology and Operational Risk Committee
FSOC	Financial Stability Oversight Council	UCITS	Undertakings for Collective Investments in Transferable Securities
FX	Foreign exchange	U.K.	United Kingdom
GAAP	Generally accepted accounting principles	UOM	Unit of measure
GBP	British Pound Sterling	U.S.	United States of America
GCR	Global credit review	USD	U.S. dollar
GDPR	General data protection regulation	VaR	Value-at-Risk
G-SIB	Global systemically important bank	VIE	Variable interest entity

(1) As defined by the applicable U.S. regulations.

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GLOSSARY

















Asset-backed securities: A financial security backed by collateralized assets, other than real estate or mortgage backed securities.Assets under custody and/or administration: Assets that we hold directly or indirectly on behalf of clients under a safekeeping or custody arrangement or for which we provide administrative services for clients. To the extent that we provide more than one AUC/A service (including back and middle office services) for a client’s assets, the value of the asset is only counted once in the total amount of AUC/A. Assets under management: The total market value of client assets for which we provide investment management strategy services, advisory services and/or distribution services generating management fees based on a percentage of the assets’ market values. These client assets are not included on our balance sheet. Assets under management include managed assets lost but not liquidated. Lost business occurs from time to time and it is difficult to predict the timing of client behavior in transitioning these assets as the timing can vary significantly. Certificates of deposit: A savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment.Collateralized loan obligations: A loan or security backed by a pool of debt, primarily senior secured leveraged loans. CLOs are similar to collateralized mortgage obligations, except for the different type of underlying loan. With a CLO, the investor receives scheduled loan or debt payments from the underlying loans, assuming most of the risk in the event borrowers default, but is offered greater diversity and the potential for higher-than-average returns.Commercial real estate: Property intended to generate profit from capital gains or rental income. CRE loans are term loans secured by commercial and multifamily properties. We seek CRE loans with strong competitive positions in major domestic markets, stable cash flows, modest leverage and experienced institutional ownership.Deposit beta: A measure of how much of an interest rate increase or decrease is expected to be passed on to client interest-bearing accounts, on average.Doubtful: Doubtful loans meet the same definition of substandard loans (i.e., well-defined weaknesses that jeopardize repayment with the possibility that we will sustain some loss) with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable.Economic value of equity: A measure designed to estimate the fair value of assets, liabilities and off-balance sheet instruments based on a discounted cash flow model.Exchange-Traded Fund: A type of exchange-traded investment product that offer investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets and, in return, to receive an interest in that investment pool. ETF shares are traded on a national stock exchange and at market prices that may or may not be the same as the net asset value. Exposure-at-default: A measure used in the calculation of regulatory capital under Basel III final rule. It can be defined as the expected amount of loss a bank may be exposed to upon default of an obligor. Global systemically important bank: A financial institution whose distress or disorderly failure, because of its size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity, which will be subject to additional capital requirements. Held-to-maturity investment securities: We classify investments in debt securities as held-to-maturity only if we have the positive intent and ability to hold those securities to maturity. Investments in debt securities classified as held-to-maturity are measured subsequently at amortized cost in the statement of financial position.			High-quality liquid assets: Cash or assets that can be converted into cash at little or no loss of value in private markets and are considered unencumbered.Investment grade: A rating of loans to counterparties with strong credit quality and low expected credit risk and probability of default. It applies to counterparties with a strong capacity to support the timely repayment of any financial commitment. Liquidity coverage ratio: The ratio of high-quality liquid assets divided by expected total net cash outflows over a 30-day stress period. A Basel III framework requirement for banks and bank holding companies to measure liquidity, it is designed to ensure that certain banking institutions, including us, maintain a minimum amount of unencumbered HQLA sufficient to withstand the net cash outflow under a hypothetical standardized acute liquidity stress scenario for a 30-day stress period.Net asset value: The amount of net assets attributable to each share/unit of the fund at a specific date or time.Net stable funding ratio: The ratio of the amount of available stable funding relative to the amount of required stable funding. This ratio should be equal to at least 100% on an ongoing basis. On-premises: Locally installed software. Prime services: The securities lending business previously referred to as enhanced custody. Probability of default: A measure of the likelihood that a credit obligor will enter into default status.Qualified financial contracts: Securities contracts, commodity contracts, forward contracts, repurchase agreements, swap agreements and any other contract determined by the FDIC to be a qualified financial contract. Risk-weighted assets: A measurement used to quantify risk inherent in our on and off-balance sheet assets by adjusting the asset value for risk. RWA is used in the calculation of our risk-based capital ratios. Software-enabled revenue: Includes SaaS, maintenance and support revenue, FIX, brokerage, and value-add services.Special mention: Loans that consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.Sub-investment grade (previously referred to as Speculative): Loans that consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.Substandard: Loans that consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss.Supplementary leverage ratio: The ratio of our tier 1 capital to our total leverage exposure, which measures our capital adequacy relative to our on and off-balance sheet assets.Total loss-absorbing capacity: The sum of our tier 1 regulatory capital plus eligible external long-term debt issued by us.Value-at-Risk: Statistical model used to measure the potential loss in value of a portfolio that could occur in normal markets condition, over a defined holding period, within a certain confidence level.Variable interest entity: An entity that: (1) lacks enough equity investment at risk to permit the entity to finance its activities without additional financial support from other parties; (2) has equity owners that lack the right to make significant decisions affecting the entity’s operations; and/or (3) has equity owners that do not have an obligation to absorb or the right to receive the entity’s losses or return.

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