NORTHERN TRUST CORP
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
NTRS$172.76+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000073124-25-000187
Items 2 and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market RiskCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000073124-25-000235
Items 2 and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures about Market RiskThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 283 previous paragraphs and 328 current paragraphs.
189 unchanged; 57 reworded; 61 added; 34 removed; 3 previous and 21 current paragraphs rearranged.
Tables are not compared: 31 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (61)
Current report
CONSOLIDATED RESULTS OF OPERATIONS
Current report
(1) For the three months ended June 30, 2024, Other Noninterest Income included a $878.4 million net gain related to Northern Trust’s participation in the Visa Exchange Offer, a $7.6 million impairment charge taken on certain investments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded to Other Operating Income. For the six months ended June 30, 2024 Other Noninterest Income also included a $189.3 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recorded in Investment Security Gains (Losses), net.
Current report
(2) For the three months ended June 30, 2024, Noninterest Expense included severance-related charges of $85.2 million, of which $81.8 million was recorded to Compensation expense and $3.4 million was recorded to Outside Services, a $70.0 million charitable contribution to the Northern Trust Foundation, recorded in Other Operating Expense, $16.4 million of software amortization acceleration and dispositions, recorded to Equipment and Software expense, and a $10.6 million legal settlement, recorded to Other Operating Expense. For the six months ended June 30, 2024, Noninterest Expense also included a $14.7 million increase to the Federal Deposit Insurance Corporation (FDIC) special assessment, recognized in Other Operating Expense.
Current report
Overview of Financial Results (continued)
Current report
Three months ended June 30, 2025 highlights:
Current report
•Revenue for the three months ended June 30, 2025 decreased from the prior-year quarter to $2.0 billion, reflecting:
Current report
◦Other Noninterest Income decreased to $156.3 million in the current quarter primarily driven by lower Other Operating Income as a result of the $878.4 million net gain related to Northern Trust’s participation in the the Visa exchange program, partially offset by a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded in the prior year.
Current report
◦Net Interest Income increased to $610.5 million in the current quarter primarily driven by the favorable impact of higher deposits, lower funding costs, and foreign exchange swap activity executed by our Treasury Department.
Current report
•Noninterest Expense decreased to $1.4 billion in the current quarter primarily due to lower Other Operating Expense and Compensation expense, partially offset by higher Employee Benefits expense and Equipment and Software expense.
Current report
Six months ended June 30, 2025 highlights:
Current report
•Revenue for the six months ended June 30, 2025 decreased from the prior-year period to $3.9 billion, reflecting:
Current report
◦Trust, Investment and Other Servicing Fees increased to $2.4 billion in the current period primarily driven by favorable markets and net new business.
Current report
◦Other Noninterest Income decreased to $314.4 million in the current period primarily driven by the $878.4 million net gain related to Northern Trust’s participation in the the Visa exchange program, partially offset by a $189.3 million AFS debt security loss, a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded in the prior year.
Current report
◦Net Interest Income increased to $1.2 billion in the current period primarily due to the favorable impact of higher deposits, lower funding costs and higher foreign exchange swap activity executed by our Treasury department.
Current report
•Noninterest Expense decreased to $2.8 billion in the current period primarily due to lower Other Operating Expense and Compensation expense, partially offset by higher Equipment and Software expense and Employee Benefits expense.
Current report
•There was a $17.5 million Provision for Credit Losses in the current period, as compared to a negative $0.5 million Provision for Credit Losses in the prior-year period. For additional information, refer to the Provision for Credit Losses within “Consolidated Results of Operations” section.
Current report
•The Provision for Income Taxes for the current period totaled $272.9 million, representing an effective tax rate of 25.1%. The Provision for Income Taxes for the prior-year period totaled $353.4 million, representing an effective tax rate of 24.1%.
Current report
Custody and Fund Administration fees increased both from the prior-year quarter and from the prior-year period primarily driven by favorable markets, favorable currency movements, and net new business.
Current report
Fee income in the regions (Central, East and West) increased both from the prior-year quarter and from the prior-year period, primarily due to favorable markets.
Current report
The following table presents Northern Trust’s AUM by reporting segment.
Current report
The following table presents Northern Trust’s AUM by investment type.
Current report
For the three months ended June 30, 2025 and six months ended June 30, 2025, Foreign Exchange Trading Income decreased compared to the prior-year quarter and the prior-year period primarily due to an unfavorable impact from foreign exchange swap activity executed by our Treasury department, partially offset by higher client volumes.
Current report
For the three months ended June 30, 2025 and six months ended June 30, 2025, Other Operating Income decreased compared to the prior-year quarter and prior-year period primarily due to the $878.4 million net gain related to Northern Trust’s participation in the Visa Exchange Offer, partially offset by a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded in the prior year.
Current report
Net Interest Income for the three months ended June 30, 2025, stated on an FTE basis, increased from the prior-year quarter, primarily driven by the favorable impact of higher deposits, lower funding costs, and foreign exchange swap activity executed by our Treasury Department. Average earning assets increased from the prior-year quarter, primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits.
Current report
Loans averaged $41.2 billion and increased $123.4 million, from $41.0 billion in the prior-year quarter.
Current report
Net Interest Income for the six months ended June 30, 2025, stated on an FTE basis, increased from the prior-year period, primarily driven by the favorable impact of higher deposits, lower funding costs, and foreign exchange swap activity executed by our Treasury department. Average earning assets increased from the prior-year period, primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits.
Current report
The net interest margin on an FTE basis increased from the prior-year period, primarily driven by lower funding costs, partially offset by lower yields on earning assets.
Current report
Federal Reserve and Other Central Bank Deposits averaged $40.4 billion and increased $4.5 billion, or 13%, from $35.9 billion in the prior-year period. Interest-Bearing Due from and Deposits with Banks averaged $5.1 billion and increased $391.8 million, or 8%, from $4.7 billion in the prior-year period.
Current report
Federal Funds Sold and Securities Purchased under Agreements to Resell averaged $554.7 million, a decrease of $70.6 million, or 11%, from $625.3 million in the prior-year period.
Current report
Loans averaged $41.1 billion and decreased $0.2 billion, from $41.3 billion in the prior-year period.
Current report
For the three and six months ended June 30, 2025, the Provision for Credit Losses was $16.5 million and $17.5 million, respectively. The provision for the three and six months ended June 30, 2025, resulted from an increase in specific reserves related to a small number of non-performing loans and an increase in the collective reserve resulting primarily from a worsening macroeconomic outlook, partially offset by sector and portfolio-specific improvements within the Commercial Real Estate (CRE) portfolio. Net recoveries in the current quarter were $0.3 million, reflecting $0.4 million of recoveries and $0.1 million of charge-offs. Net recoveries in the current-year period totaled $0.5 million reflecting $0.9 million of recoveries and $0.4 million of charge-offs.
Current report
For the three months ended June 30, 2024, there was a Provision for Credit Losses of $8.0 million which resulted from an increase in the collective reserve, driven by modest deterioration in credit quality in the commercial and institutional (C&I) portfolio and expectations for weaker Commercial Real Estate (CRE) prices. The prior-year quarter included $0.1 million net recoveries, reflecting $0.4 million of recoveries and $0.3 million of charge-offs.
Current report
For the six months ended June 30, 2024, there was a negative Provision for Credit Losses of $0.5 million primarily due to a decrease in the collective basis reserve, driven by one Commercial loan charge-off. Net charge-offs in the prior-year period totaled $10.3 million resulting from $11.4 million of charge-offs and $1.1 million of recoveries.
Current report
For the three months ended June 30, 2025, Compensation expense, the largest component of Noninterest Expense, decreased compared to the prior-year quarter primarily due to a severance related charge of $81.8 million in the prior-year quarter, partially offset by an increase in headcount, higher base pay adjustments and unfavorable currency movements in the current quarter.
Current report
For the three months ended June 30, 2025, Employee Benefits expense increased compared to the prior-year quarter primarily driven by higher medical costs and higher payroll taxes. For the six months ended June 30, 2025, Employee Benefits expense increased compared to the prior-year period primarily driven by higher medical costs.
Current report
For the three months ended June 30, 2025, Other Operating Expense decreased compared to the prior-year quarter primarily due to a $70 million charitable contribution and a $10.6 million legal settlement recorded in the prior year. For the six months ended June 30, 2025, Other Operating Expense decreased compared to the prior-year period primarily due to a $70 million charitable contribution and a $10.6 million legal settlement recorded in the prior year, as well as lower expense associated with supplemental compensation plans.
Current report
Income tax expense for the three months ended June 30, 2025 was $143.5 million, representing an effective tax rate of 25.4%, compared to $277.5 million in the prior-year quarter, representing an effective tax rate of 23.6%. The effective tax rate increased compared to the prior-year quarter primarily due to favorable discrete tax benefits recognized in the prior year in connection with state tax legislation and the resolution of state income tax audits.
Current report
Income tax expense for the six months ended June 30, 2025 was $272.9 million, representing an effective tax rate of 25.1%, compared to $353.4 million in the prior-year period, representing an effective tax rate of 24.1%. The effective tax rate increased compared to the prior-year period primarily due to favorable discrete tax benefits recognized in the prior year in connection with state tax legislation and the resolution of state income tax audits.
Current report
On July 4, 2025, The One Big Beautiful Bill Act (the “Bill”) was enacted into law. The significant provisions of the Bill include the permanent extension and modification of certain provisions of the Tax Cuts and Jobs Act, including international tax provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented in later years. The Company is evaluating the provisions of the Bill but it is not expected to have a material impact on our consolidated financial statements.
Current report
(3) Prior-year quarter items including severance-related charges, software amortization acceleration and dispositions, and a securities repositioning related to the supplemental pension plan, are allocated to the Reporting Segments based on the nature of the item.
Showing the first 40 of 61 passages. Open the source sections for the rest.
Removed paragraphs (34)
Previous report
FIRST QUARTER CONSOLIDATED RESULTS OF OPERATIONS
Previous report
Revenue for the three months ended March 31, 2025 increased to $1.9 billion in the current quarter primarily driven by an increase in Net Interest Income, Trust, Investment and Other Servicing fees, and Other Noninterest Income.
Previous report
Other Noninterest Income increased to $158.1 million in the current quarter primarily due to the $189.4 million available for sale debt security loss reflected in Investment Security Gains (Losses) in the first quarter of 2024.
Previous report
Net Interest Income increased to $568.1 million in the current quarter primarily driven by higher deposits and lower funding costs.
Previous report
Noninterest Expense of $1.4 billion in the current quarter is primarily due to higher Equipment and Software expense, Compensation expense, and Outside Services expense, partially offset by a decrease in Other Operating Expense.
Previous report
Consolidated assets under management increased compared to the prior-year quarter, primarily reflecting the impact of favorable markets.
Previous report
N/M - Not meaningful
Previous report
Other Operating Income decreased compared to the prior-year quarter, primarily due to lower income associated with a market value decrease in supplemental compensation plans. The lower income associated with the supplemental compensation plans resulted in a related decrease in supplemental compensation plan expense reported in Other Operating Expense.
Previous report
Loans averaged $41.1 billion and decreased $510.4 million, or 1%, from $41.6 billion in the prior-year quarter, primarily reflecting lower levels of residential real estate loans and decreases in other loans, partially offset by higher levels of private client loans, commercial and institutional loans, commercial real estate loans, and Non-U.S. loans. Residential real estate loans averaged $6.1 billion and decreased $177.4 million, or 3%, from $6.3 billion for the prior-year quarter. Private client loans averaged $14.7 billion and increased $1.3 billion, or 10%, from $13.4 billion for the prior-year quarter. Commercial and institutional loans averaged $10.8 billion and increased $160.2 million, or 2%, from $10.6 billion for the prior-year quarter. Commercial real estate loans averaged $5.3 billion and increased $87.5 million, or 2%, from $5.2 billion for the prior-year quarter. Non-U.S. loans averaged $2.9 billion and increased $81.8 million, or 3%, from $2.8 billion for the prior-year quarter.
Previous report
In the current quarter, there was a Provision for Credit Losses of $1.0 million, as compared to a negative Provision for Credit Losses of $8.5 million in the prior-year quarter. The Provision for Credit Losses in the current quarter resulted from an increase in the collective reserve, primarily driven by increased projected macroeconomic uncertainty, partially offset by sector and portfolio-specific improvements within the Commercial Real Estate (CRE) portfolio.
Previous report
The negative Provision for Credit Losses in the prior-year quarter was primarily due to a decreases in both individual and collective reserves. The decrease in individual reserves was driven by one Commercial and Institutional (C&I) loan that was charged-off. The decrease in collective reserve was primarily in the C&I portfolio, driven by improvement in the quality of the portfolio, and in the CRE portfolio, driven by improved macroeconomic factors.
Previous report
Net recoveries in the current quarter were $0.2 million, reflecting $0.5 million of recoveries and $0.3 million of charge-offs. The prior-year quarter included $10.4 million net charge-offs, reflecting $11.1 million of charge-offs and $0.7 million of recoveries.
Previous report
Other Operating Expense decreased compared to the prior-year quarter, primarily due to a $12.5 million FDIC special assessment recorded in the prior year and lower supplemental compensation plan expense in the current quarter. The lower supplemental compensation plan expense in the prior year quarter resulted from related market value decreases in supplemental compensation plans reported in Other Operating Income.
Previous report
Income tax expense for the three months ended March 31, 2025 was $129.4 million, representing an effective tax rate of 24.8%, compared to $75.9 million in the prior-year quarter, representing an effective tax rate of 26.1%.
Previous report
The effective tax rate decreased compared to the prior-year quarter primarily due to higher tax benefits associated with share-based compensation and a lower state effective tax rate.
Previous report
REPORTING SEGMENTS (continued)
Previous report
(1)Financial measures stated on an FTE basis.
Previous report
(2)Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense.
Previous report
Asset Servicing Net Income
Previous report
For the quarter ended March 31, 2025, Net Income increased $13.4 million, or 8%, from the prior-year quarter, primarily due to higher Trust, Investment and Other Servicing Fees and Net Interest Income, partially offset by higher Noninterest Expense.
Previous report
For the quarter ended March 31, 2025, Net Interest Income stated on an FTE basis increased $30.8 million, or 11%, from the prior-year quarter, primarily driven by higher deposit balances and lower funding costs.
Previous report
For the quarter ended March 31, 2025, there was a Provision for Credit Losses of $2.1 million compared to a negative Provision for Credit Losses of $5.8 million in the prior-year quarter. The Provision for Credit Losses for the three months ended March 31, 2025 reflected an increase in collective reserves driven by increased macroeconomic uncertainty.
Previous report
Asset Servicing Noninterest Expense
Previous report
For the quarter ended March 31, 2025, Noninterest Expense, which includes the direct expense of the reporting segment, indirect expense allocations for product and operating support and indirect expense allocations for certain corporate support services, increased $41.3 million, or 5%, from the prior-year quarter primarily due to higher indirect expense allocations.
Previous report
REPORTING SEGMENTS (continued)
Previous report
Wealth Management Net Income
Previous report
For the quarter ended March 31, 2025, Net Income increased $11.1 million, or 5%, from the prior-year quarter primarily due to higher Trust, Investment and Other Servicing Fees, partially offset by higher Noninterest Expense.
Previous report
Wealth Management Other Noninterest Income
Previous report
For the quarter ended March 31, 2025, Other Noninterest Income decreased $5.0 million, or 13%, from the prior-year quarter primarily due to a decrease in other allocated income.
Previous report
For the quarter ended March 31, 2025, there was a negative Provision for Credit Losses of $0.9 million compared to a negative Provision for Credit Losses of $1.7 million in the prior-year quarter. The negative Provision for Credit Losses for the three months ended March 31, 2025 resulted from a decrease in the collective reserve due to sector and portfolio-specific improvements in CRE, partially offset by increased macroeconomic uncertainty.
Previous report
Wealth Management Noninterest Expense
Previous report
For the quarter ended March 31, 2025, Noninterest Expense, which includes the direct expenses of the reporting segment, indirect expense allocations for product and operating support and indirect expense allocations for certain corporate support services, increased $27.4 million, or 6%, from the prior-year quarter primarily reflecting higher indirect expense allocations and higher expense associated with equity incentives.
Previous report
For the quarter ended March 31, 2025, Other Noninterest Expense decreased $15.8 million from the prior-year quarter, primarily due to the prior-year FDIC special assessment.
Reworded paragraphs (57)
Previous wording
The following is management’s discussion and analysis of the financial condition and results of operations (MD&A) of Northern Trust Corporation (Corporation) for the first quarter of 2025. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2024. Investors also should read the section titled “Forward-Looking Statements.”
Current wording
The following is management’s discussion and analysis of the financial condition and results of operations (MD&A) of Northern Trust Corporation (Corporation) for the second quarter of 2025. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2024. Investors also should read the section titled “Forward-Looking Statements.”
Previous wording
The Corporation is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing and Wealth Management clients primarily by the Asset Management business. Except where the context requires otherwise, the terms “Northern Trust,” “we,” “us,” “our,” “its,” or similar terms mean the Corporation and its subsidiaries on a consolidated basis.
Current wording
The Corporation is a leading provider of asset servicing, wealth management, asset management and banking solutions to corporations, institutions, families and individuals. The Corporation focuses on managing and servicing client assets through its two client-focused reporting segments: Asset Servicing and Wealth Management. Asset management and related services are provided to Asset Servicing and Wealth Management clients primarily by the Asset Management business. Except where the context requires otherwise, the terms “Northern Trust,” “we,” “us,” “our,” “its,” or similar terms mean the Corporation and its subsidiaries on a consolidated basis.
Previous wording
Trust, Investment and Other Servicing Fees increased to $1.2 billion in the current quarter, primarily due to favorable markets.
Current wording
◦Trust, Investment and Other Servicing Fees increased to $1.2 billion in the current quarter primarily due to favorable markets and net new business.
Previous wording
In the current quarter, there was a Provision for Credit Losses of $1.0 million, as compared to a negative Provision for Credit Losses of $8.5 million in the prior-year quarter. For additional information, refer to the Provision for Credit Losses within the “First Quarter Consolidated Results of Operations” section.
Current wording
•In the current quarter, there was a Provision for Credit Losses of $16.5 million, as compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter. For additional information, refer to the Provision for Credit Losses within the “Consolidated Results of Operations” section.
Previous wording
The Provision for Income Taxes in the current quarter totaled $129.4 million, representing an effective tax rate of 24.8%. The Provision for Income Taxes in the prior-year quarter totaled $75.9 million, representing an effective tax rate of 26.1%.
Current wording
•The Provision for Income Taxes in the current quarter totaled $143.5 million, representing an effective tax rate of 25.4%. The Provision for Income Taxes in the prior-year quarter totaled $277.5 million, representing an effective tax rate of 23.6%.
Previous wording
Investment Management fees increased from the prior-year quarter, primarily due to favorable markets and net new business.
Current wording
Investment Management fees increased both from the prior-year quarter and from the prior-year period primarily due to favorable markets and net new business.
Previous wording
Wealth Management fee income is calculated primarily based on market values and is impacted by both one-month and one-quarter lagged asset values. Fee income in the regions increased from the prior-year quarter, primarily due to favorable markets. Global Family Office fee income increased from the prior-year quarter, primarily due to asset inflows and favorable markets.
Current wording
Wealth Management fee income is calculated primarily based on market values and is impacted by both one-month and one-quarter lagged asset values.
Previous wording
As noted above, AUC/A and assets under management (AUM) are two of the primary drivers of our Trust, Investment and Other Servicing Fees. For the purposes of disclosing AUC/A, to the extent that both custody and administration services are provided, the value of the assets is included only once in this amount. The following table presents AUC/A by reporting segment.
Current wording
As noted above, AUC/A and AUM are two of the primary drivers of our Trust, Investment and Other Servicing Fees. For the purposes of disclosing AUC/A, to the extent that both custody and administration services are provided, the value of the assets is included only once in this amount. The following table presents AUC/A by reporting segment.
Previous wording
Consolidated assets under custody decreased from the prior quarter, primarily driven by client asset outflows, partially offset by favorable currency translation. Consolidated assets under custody increased from the prior-year quarter, primarily reflecting favorable markets, partially offset by client asset outflows.
Current wording
Total assets under custody increased from the prior-quarter and prior-year quarter primarily driven by favorable markets and favorable currency translation.
Previous wording
The following table presents the allocation of Northern Trust’s assets under management by reporting segment.
Current wording
The following table presents the allocation of Northern Trust’s AUM by reporting segment.
Previous wording
The following table presents activity in consolidated assets under management by product.
Current wording
The following table presents activity in consolidated AUM by product.
Previous wording
Investment Security Gains (Losses), net reflects the $189.4 million available for sale debt security loss related to a repositioning of the portfolio in the prior-year quarter.
Current wording
For the six months ended June 30, 2024, Investment Security Gains (Losses), net reflects a $189.3 million available for sale debt security loss related to repositioning of the portfolio.
Previous wording
The following tables present an analysis of average daily balances and interest rates affecting Net Interest Income and an analysis of Net Interest Income changes.
Current wording
The following tables present an analysis of average daily balances and interest rates changes affecting Net Interest Income and an analysis of Net Interest Income changes for the three months ended June 30, 2025.
Previous wording
(2)Includes the impact of balance sheet netting under master netting arrangements of approximately $62.0 billion and $60.2 billion for the three months ended March 31, 2025 and 2024, respectively. Excluding the impact of netting for the three months ended March 31, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.46% and 5.46%, respectively. Excluding the impact of netting for the three months ended March 31, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.37% and 5.39%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Current wording
(2)Includes the impact of balance sheet netting under master netting arrangements of approximately $62.0 billion and $62.9 billion for the three months ended June 30, 2025 and 2024, respectively. Excluding the impact of netting for the three months ended June 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.43% and 5.46%, respectively. Excluding the impact of netting for the three months ended June 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.36% and 5.39%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Previous wording
(2)Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $21.5 million and $(158.6) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $22.1 million and $(162.8) million, respectively
Current wording
(2)Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $(11.9) million and $(158.4) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $(11.4) million and $(159.5) million, respectively.
Previous wording
Notes: Net Interest Income (FTE), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for Loans, Securities and Other Interest-Earning assets. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. See Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income which reflects the applied FTE adjustment. A reconciliation of Net Interest Income and net interest margin on a GAAP basis to Net Interest Income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
Current wording
Notes: Net Interest Income (FTE adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for Loans, Securities and Other Interest-Earning assets. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. See Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income which reflects the applied FTE adjustment. A reconciliation of Net Interest Income and net interest margin on a GAAP basis to Net Interest Income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
Previous wording
The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by lower funding costs.
Current wording
The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by lower funding costs, partially offset by lower yields on earning assets.
Previous wording
Federal Reserve and Other Central Bank Deposits averaged $37.2 billion and increased $1.3 billion, or 4%, from $35.9 billion in the prior-year quarter. Interest-Bearing Due from and Deposits with Banks averaged $4.9 billion and increased $500.0 million, or 10%, from $4.4 billion in the prior-year quarter.
Current wording
Federal Reserve and Other Central Bank Deposits averaged $43.7 billion and increased $7.7 billion, or 22%, from $35.9 billion in the prior-year quarter. Interest-Bearing Due from and Deposits with Banks averaged $5.3 billion and increased $321.7 million, or 6%, from $5.0 billion in the prior-year quarter.
Previous wording
Average Securities were $52.0 billion and increased $3.5 billion, from $48.5 billion in the prior-year quarter. Average taxable Securities were $44.0 billion in the current quarter and $43.3 billion in the prior-year quarter. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.0 billion in the current quarter and $5.2 billion in the prior-year quarter.
Current wording
Average Securities were $52.3 billion and increased $2.3 billion, or 5%, from $50.0 billion in the prior-year quarter. Average taxable Securities were $44.0 billion in the current quarter and $43.9 billion in the prior-year quarter. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.3 billion in the current quarter and $6.1 billion in the prior-year quarter.
Previous wording
Federal Funds Sold and Securities Purchased under Agreements to Resell averaged $394.5 million and decreased $123.9 million, or 24%, from $518.4 million in the prior-year quarter.
Current wording
Federal Funds Sold and Securities Purchased under Agreements to Resell averaged $713.2 million and decreased $19.0 million, or 3%, from $732.2 million in the prior-year quarter.
Previous wording
Average Other Interest-Earning Assets include collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $1.1 billion, $865.6 million, $342.7 million, $85.0 million, and $70.0 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
Current wording
Average Other Interest-Earning Assets include collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $1.3 billion, $860.2 million, $342.7 million, $85.0 million, and $70.0 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
Previous wording
Northern Trust utilizes a diverse mix of funding sources. Average Interest-Bearing Deposits increased $3.3 billion, or 4%, to an average of $99.0 billion in the current quarter from $95.7 billion in the prior-year quarter. Average Non-U.S. Offices Interest-Bearing Deposits comprised 65% and 67% of total average Interest-Bearing Deposits for the three months ended March 31, 2025 and 2024, respectively. Average other interest-bearing liabilities decreased $82.5 million, to an average of $16.7 billion in the current quarter from $16.8 billion in the prior-year quarter. The balances within short-term borrowing classifications vary based on funding requirements and strategies, interest rate levels, changes in the volume of lower-cost deposit sources, and the availability of collateral to secure these borrowings.
Current wording
Northern Trust utilizes a diverse mix of funding sources. Average Interest-Bearing Deposits increased $8.8 billion, or 9%, to an average of $105.6 billion in the current quarter from $96.8 billion in the prior-year quarter. Average Non-U.S. Offices Interest-Bearing Deposits comprised 66% and 65% of total average Interest-Bearing Deposits for the three months ended June 30, 2025 and 2024, respectively. Average other interest-bearing liabilities decreased $470.8 million, or 3% to an average of $17.0 billion in the current quarter from $17.4 billion in the prior-year quarter. The balances within short-term borrowing classifications vary based on funding requirements and strategies, interest rate levels, changes in the volume of lower-cost deposit sources, and the availability of collateral to secure these borrowings.
Previous wording
Outside Services expense increased compared to the prior-year quarter, primarily due to an increase in consulting services.
Current wording
For the three months ended June 30, 2025, Outside Services expense decreased compared to the prior-year quarter primarily due to a decrease in consulting services.
Previous wording
Equipment and Software expense increased compared to the prior-year quarter, primarily due to higher software amortization and higher software support and rental expense.
Current wording
For the three and six months ended June 30, 2025, Equipment and Software expense increased compared to the prior-year quarter and the prior-year period primarily due to higher software amortization and higher software support and rental expense, partially offset by $16.4 million of software acceleration and disposition charges recorded in the prior year.
Previous wording
Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.
Current wording
Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing an FTP methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Additionally, segment information is presented on an FTE basis as management believes an FTE presentation provides a clearer indication of net interest income. The adjustment to an FTE basis has no impact on Net Income.
Previous wording
In addition to income and expenses associated with non-recurring activities, Other includes expenses for Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $5.6 million and $7.3 million for the three months ended March 31, 2025 and 2024, respectively, in order to reconcile the segment results that are reported on an internal management-reporting basis into consolidated results.
Current wording
In addition to income and expenses associated with non-recurring activities, Other includes expenses for Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $4.7 million and $10.3 million for the three and six months ended June 30, 2025 respectively, and $6.9 million and $14.2 million for the three and six months ended June 30, 2024 , respectively, in order to reconcile the segment results that are reported on an internal management-reporting basis into consolidated results.
Previous wording
Effective January 2025, certain operations support activities were moved out of Asset Servicing and Wealth Management in connection with the formation of the Enterprise Chief Operating Office. The Enterprise Chief Operating Office provides operational support to Asset Servicing and Wealth Management. Its expenses are included within Other and are fully allocated to Asset Servicing and Wealth Management. Prior-year segment results have been recast to reflect the organizational changes.
Current wording
Effective January 2025, certain operations support activities were moved out of Asset Servicing and Wealth Management in connection with the formation of the Enterprise Chief Operating Office. The Enterprise Chief Operating Office provides operational support to Asset Servicing and Wealth Management. Its expenses are included within Other and are fully allocated to Asset Servicing and Wealth Management. Prior-year segment results have been recast, where practical, to reflect the organizational changes.
Previous wording
The following table presents the earnings contributions and average assets of Northern Trust’s reporting segments for the three month periods ended March 31, 2025 and 2024.
Current wording
The following table presents the earnings contributions and average assets of Northern Trust’s reporting segments for the three- and six- month periods ended June 30, 2025 and 2024.
Previous wording
Net Interest Income, stated on an FTE basis, increased from the prior-year quarter, primarily driven by higher deposits and lower funding costs. Average earning assets increased from the prior-year quarter, primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits
Current wording
For thethree months ended June 30, 2025, Net Interest Income stated on an FTE basis increased $64.5 million, or 23%, from the prior-year quarter, primarily driven by the favorable impact of higher deposits. For the six months ended June 30, 2025, Net Interest Income stated on an FTE basis increased $95.6 million, or 17% from the prior-year period, primarily due to the favorable impact of higher deposits and lower funding costs.
Previous wording
For the quarter ended March 31, 2025, Other Noninterest Income increased $187.7 million from the prior-year quarter, primarily due to the prior-year loss on sale of available for sale debt securities arising from a repositioning of the portfolio.
Current wording
For the three months ended June 30, 2025, Other Noninterest Income decreased $878.2 million, from the prior-year quarter primarily due to the $878.4 million gain related to the net impact from Northern Trust’s participation in the Visa Exchange Offer in the prior-year quarter. For the six months ended June 30, 2025, Other Noninterest Income decreased $690.5 million from the prior-year period primarily due to the net gain from Northern Trust’s participation in the Visa Exchange Offer, partially offset by the loss on sale of available for sale debt securities arising from a repositioning of the portfolio, both of which occurred in the prior-year period.
Previous wording
Average balances are considered to be a better measure of balance sheet trends, as period-end balances can be impacted by the timing of deposit and withdrawal activity involving large client balances. Average earning assets increased from the prior-year quarter, primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits.
Current wording
Average balances are considered to be a better measure of balance sheet trends, as period-end balances can be impacted by the timing of deposit and withdrawal activity involving large client balances. Average earning assets increased from the prior-year quarter and prior-year period primarily driven by an increase in placements with the Federal Reserve and other central banks driven by higher deposits.
Previous wording
Select Earning Assets. Average securities increased from the prior-year quarter reflecting the impact of repositioning and reinvesting in short-term and long-term securities. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4—Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Current wording
Select Earning Assets. Average securities increased from the prior-year quarter and prior-year period reflecting runoff reinvestments and portfolio repositioning. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4—Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Previous wording
Client Deposits. Average Interest-Bearing Deposits increased from the prior-year quarter primarily due to an increase in client balances as a result of seasonal and strategic client activity. Demand and Other Noninterest-Bearing Deposits increased from the prior-year quarter driven by seasonal activity.
Current wording
Client Deposits. Average Interest-Bearing Deposits increased from the prior-year quarter and prior-year period primarily due to increased client activity as a result of market volatility and portfolio rebalancing.
Previous wording
Short-Term Borrowings. Short-term borrowings includes Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Other Borrowings. These balances are primarily driven by sponsored member program activity and sources of strategic funding needs.
Current wording
Short-Term Borrowings. Short-term borrowings includes Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Other Borrowings. These balances are primarily driven by sources of strategic funding needs.
Previous wording
Stockholders’ Equity. During the three months ended March 31, 2025, the Corporation declared cash dividends totaling $148.2 million to common stockholders, and cash dividends totaling $16.2 million to preferred stockholders. During the three months ended March 31, 2024, the Corporation declared cash dividends totaling $153.4 million to common stockholders, and cash dividends totaling $16.2 million to preferred stockholders.
Current wording
Stockholders’ Equity. During the three and six months ended June 30, 2025, the Corporation declared cash dividends totaling $146.2 million and $294.4 million to common stockholders, and cash dividends totaling $4.7 million and $20.9 million to preferred stockholders, respectively. During the three and six months ended June 30, 2024, the Corporation declared cash dividends totaling $154.3 million and $307.7 million to common stockholders, and cash dividends totaling $4.7 million and $20.9 million to preferred stockholders, respectively.
Previous wording
For the three months ended March 31, 2024, the Corporation repurchased 1,647,526 shares of common stock, at a total cost of $132.0 million ($80.11 average price per share), including 373,623 shares withheld to satisfy tax withholding obligations related to share-based compensation.
Current wording
For the three and six months ended June 30, 2025, the Corporation repurchased 3,374,980 and 5,991,218 shares of common stock, respectively, at a total cost of $339.4 million ($100.57 average price per share) and $626.6 million ($104.59 average price per share), respectively, including 10,622 and 421,754 shares withheld to satisfy tax withholding obligations related to share-based compensation, respectively.
Previous wording
For the three months ended March 31, 2025, the Corporation repurchased 2,616,238 shares of common stock at a total cost of $287.2 million ($109.79 average price per share), including 411,132 shares withheld to satisfy tax withholding obligations related to share-based compensation.
Current wording
For the three and six months ended June 30, 2024, the Corporation repurchased 3,001,216 and 4,648,742 shares of common stock respectively, at a total cost of $250.8 million ($83.57 average price per share), $382.8 million ($82.35 average price per share), respectively, including 9,394 and 383,017 shares, respectively, withheld to satisfy tax withholding obligations related to share-based compensation.
Previous wording
Nonaccrual assets of $73.1 million as of March 31, 2025 increased $17.1 million, or 31%, from December 31, 2024, primarily due to downgrades of certain Residential Real Estate and Commercial and Institutional loans. In addition to the negative impact on Net Interest Income and the risk of credit losses, nonaccrual assets also increase operating costs due to the expense associated with collection efforts. Changes in the level of nonaccrual assets may be indicative of changes in the credit quality of one or more loan classes. Changes in credit quality impact the allowance for credit losses through the resultant adjustment of the allowance evaluated on an individual basis and the quantitative and qualitative factors used in the determination of the allowance evaluated on a collective basis within the allowance for credit losses.
Current wording
Nonaccrual assets of $92.8 million as of June 30, 2025, were $36.8 million, or 66%, higher than December 31, 2024, primarily due to downgrades of a small number of loans across multiple segments. In addition to the negative impact on Net Interest Income and the risk of credit losses, nonaccrual assets also increase operating costs due to the expense associated with collection efforts. Changes in the level of nonaccrual assets may be indicative of changes in the credit quality of one or more loan classes. Changes in credit quality impact the allowance for credit losses through the resultant adjustment of the allowance evaluated on an individual basis and the quantitative and qualitative factors used in the determination of the allowance evaluated on a collective basis within the allowance for credit losses.
Previous wording
The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust. Underwriting standards generally reflect conservative loan-to-value ratios and debt service coverage requirements. Recourse to owners through guarantees also is commonly required. For additional information relating to the loans portfolio, refer to Note 5—Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Current wording
For additional information relating to the loans portfolio, refer to Note 5—Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Previous wording
As of March 31, 2025, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $167.1 million, $32.8 million, $6.7 million, and $0.7 million, respectively. As of December 31, 2024, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $168.0 million, $30.4 million, $6.5 million, and $1.0 million, respectively. There was no allowance for credit losses related to AFS debt securities as of March 31, 2025. There was a $0.2 million allowance for credit losses related to AFS debt securities as of December 31, 2024. For additional information relating to the Allowance for Credit Losses and the changes in the Allowance for Credit Losses during the three months ended March 31, 2025 and March 31, 2024 due to charge-offs, recoveries and provisions for credit losses, refer to Note 6—Allowance for Credit Losses.
Current wording
As of June 30, 2025, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $180.5 million, $34.7 million, $6.9 million, and $1.1 million, respectively. As of December 31, 2024, the Allowance for Credit Losses related to loans, undrawn loan commitments and standby letters of credit, HTM debt securities, and other financial assets, was $168.0 million, $30.4 million, $6.5 million, and $1.0 million, respectively. There was a $0.9 million and $0.2 million allowance for credit losses related to AFS debt securities as of June 30, 2025 and December 31, 2024, respectively. For additional information relating to the Allowance for Credit Losses and the changes in the Allowance for Credit Losses during the three and six months ended June 30, 2025 and June 30, 2024 due to charge-offs, recoveries and provisions for credit losses, refer to Note 6—Allowance for Credit Losses.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (21)
Current report — wording carried from elsewhere
Global Family Office fee income increased both from the prior-year quarter and from the prior-year period, primarily due to asset inflows and favorable markets.
Current report — wording carried from elsewhere
Total AUM increased compared to the prior quarter primarily reflecting favorable markets.
Current report — wording carried from elsewhere
Total AUM increased compared to the prior-year quarter primarily reflecting favorable markets and net new business.
Current report — wording carried from elsewhere
The following tables present an analysis of average daily balances and interest rate changes affecting Net Interest Income and an analysis of Net Interest Income changes for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
TABLE 16: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME
Current report — wording carried from elsewhere
(1)Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
Current report — wording carried from elsewhere
(2)Includes the impact of balance sheet netting under master netting arrangements of approximately $62.0 billion and $61.6 billion for the six months ended June 30, 2025 and 2024, respectively. Excluding the impact of netting for the six months ended June 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.45% and 5.46%, respectively. Excluding the impact of netting for the six months ended June 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.36% and 5.39%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Current report — wording carried from elsewhere
(3)Average balances include nonaccrual loans.
Current report — wording carried from elsewhere
(4)Other Interest-Earning Assets include certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets.
Current report — wording carried from elsewhere
(5)Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits on the consolidated balance sheets.
Current report — wording carried from elsewhere
(6)Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
Current report — wording carried from elsewhere
(7)Rate calculations are based on actual balances rather than the rounded amounts presented in the table above.
Current report — wording carried from elsewhere
(8)A reconciliation of Net Interest Income on a GAAP basis to Net Interest Income on an FTE basis is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A.
Current report — wording carried from elsewhere
TABLE 17: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE(1)
Current report — wording carried from elsewhere
(1)Changes not due solely to average balance changes or rate changes are allocated proportionately to average balance and rate based on their relative absolute magnitudes.
Current report — wording carried from elsewhere
(2)Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 20: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $10.7 million and $(318.1) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $11.9 million and $(323.5) million, respectively.
Current report — wording carried from elsewhere
Notes: Net Interest Income (FTE Adjusted), a non-GAAP financial measure, includes adjustments to a fully taxable equivalent basis for Loans, Securities and Other Interest-Earning assets. The adjustments are based on a federal income tax rate of 21.0%, where the rate is adjusted for applicable state income taxes, net of related federal tax benefit. See Table 16: Average Consolidated Balance Sheets with Analysis of Net Interest Income which reflects the applied FTE adjustment. A reconciliation of Net Interest Income and net interest margin on a GAAP basis to Net Interest Income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided in “Reconciliation to Fully Taxable Equivalent” within this MD&A. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
Current report — wording carried from elsewhere
Interest revenue on cash collateral positions is reported above within Interest-Bearing Due from and Deposits with Banks, Loans and within Other Interest-Earning Assets. Interest expense on cash collateral positions is reported above within Savings, Money Market and Other and in Non-U.S. Offices Interest-Bearing Deposits. Related cash collateral received from and deposited with derivative counterparties is recorded net of the associated derivative contract in Other Assets and Other Liabilities, respectively.
Current report — wording carried from elsewhere
Average Securities were $52.2 billion and increased $2.9 billion, or 6%, from $49.3 billion in the prior-year period. Average taxable securities were $44.0 billion in the current period and $43.6 billion in the prior-year period. Average nontaxable securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.2 billion in the current period and $5.7 billion in the prior-year period.
Current report — wording carried from elsewhere
Average Other Interest-Earning Assets include collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $1.2 billion, $862.9 million, $342.7 million, $85.0 million, and $70.0 million respectively, which are recorded in Other Assets on the consolidated balance sheets.
Current report — wording carried from elsewhere
Northern Trust utilizes a diverse mix of funding sources. Average Interest-Bearing Deposits increased $6.1 billion, or 6%, to an average of $102.3 billion in the current period from $96.2 billion in the prior-year period. Average non-U.S. offices interest-bearing deposits comprised 66% of total average interest-bearing deposits for both the six months ended June 30, 2025 and 2024. Other average interest-related funding decreased $276.0 million, or 2%, to an average of $16.8 billion in the current period from $17.1 billion in the prior-year period. The balances within short-term borrowing classifications vary based on funding requirements and strategies, interest rate levels, changes in the volume of lower-cost deposit sources, and the availability of collateral to secure these borrowings.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table presents Northern Trust’s assets under management by reporting segment.
Previous report — wording carried elsewhere
The following table presents Northern Trust’s assets under management by investment type.
Previous report — wording carried elsewhere
The simulation cannot precisely estimate NII sensitivity given uncertainty in the assumptions. The following key assumptions are incorporated into the simulation: