NORTHERN TRUST CORP
For the period ended Sep 30, 2025. Filed Oct 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.
Sep 30, 2025 · Filed Oct 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 2025-06-30; 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 RiskCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000073124-25-000247
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 328 previous paragraphs and 323 current paragraphs.
220 unchanged; 67 reworded; 35 added; 33 removed; 8 previous and 1 current paragraphs rearranged.
Tables are not compared: 34 previous and 33 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 (35)
Current report
◦Other Noninterest Income decreased to $169.1 million in the current quarter primarily driven by the $68.1 million gain on the sale of an equity investment in the prior-year quarter, partially offset by lower expenses in the current quarter associated with existing Visa Class B swap agreements.
Current report
◦Net Interest Income increased to $590.8 million in the current quarter primarily driven by lower funding costs.
Current report
Nine Months Ended September 30, 2025 highlights:
Current report
Securities Lending increased from the prior-year period primarily due to higher loan volumes.
Current report
For the nine months ended September 30, 2025, Security Commissions and Trading Income increased compared to the prior-year period primarily driven by higher revenue from core brokerage.
Current report
The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by lower funding costs, partially offset by lower yield on interest-earning assets.
Current report
Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Interest-earning deposits decreased 5%, from the prior-year quarter, primarily due to reinvesting into the securities portfolio.
Current report
Average Loans increased 4%, from the prior-year quarter, primarily driven by an increase in average Private Client loans.
Current report
Average Interest-Bearing Deposits increased 4% from the prior-year quarter, primarily due to increased client activity and higher liquidity as a result of market volatility. Average Non-U.S. Offices Interest-Bearing Deposits comprised 65% and 67% of total average Interest-Bearing Deposits for the three months ended September 30, 2025 and 2024, respectively.
Current report
Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Average Federal Reserve and Other Central Bank Deposits increased 6% from the prior-year period. Average Interest-Bearing Due from and Deposits with Banks increased 8% from the prior-year period. The increase in interest-earning deposits compared to the prior-year is primarily driven by higher client deposits.
Current report
Average Loans increased 1%, from the prior-year period, primarily driven by an increase in average Private Client loans, partially offset by a decrease in average Commercial and Institutional loans.
Current report
For the three months ended September 30, 2025, there was a negative Provision for Credit Losses of $17.0 million, as compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter. The negative provision in the current quarter resulted from a decrease in collective reserves driven by improved macroeconomic factors primarily impacting the Commercial and Institutional (C&I) portfolio and improved projections for Residential Real Estate (RRE). The provision in the prior-year quarter resulted from an increase in collective reserves driven by a small number of downgrades and extensions in the C&I portfolio, as well as, an increase in individual reserves driven by the default of one C&I loan.
Current report
Net charge-offs in the current quarter were $0.4 million, reflecting $2.1 million of charge-offs and $1.7 million of recoveries. The prior-year quarter included $2.4 million net recoveries, reflecting $2.4 million of recoveries and de minimus charge-offs.
Current report
For the nine months ended September 30, 2025, there was a Provision for Credit Losses of $0.5 million, as compared to a Provision for Credit Losses of $7.5 million in the prior-year period. The provision in the current-year period was primarily due to an increase in specific reserves related to a small number of non-performing loans; partially offset by a decrease in the collective reserve driven by an improved outlook for the Commercial Real Estate (CRE) portfolio. The provision in the prior-year period was primarily due to an increase in collective reserves, partially offset by a decrease in individual reserves. The increase in collective reserves was primarily driven by a small number of downgrades and extensions in the C&I portfolio and by expectations for weaker prices in the CRE portfolio. The decrease in individual reserves was driven by one C&I loan charge-off in the first quarter, partially offset by the default of one C&I loan in the third quarter.
Current report
Net recoveries in the current-year period totaled $0.1 million, reflecting $2.6 million of recoveries and 2.5 million of charge-offs. The prior-year period included $7.9 million net charge-offs, reflecting $11.4 million of charge-offs and $3.5 million of recoveries.
Current report
For the nine months ended September 30, 2025, Other Operating Expense decreased compared to the prior-year period primarily due to a $70.0 million charitable contribution, a $10.6 million legal settlement, and $14.7 million of additional expense related to the FDIC special assessment, all recorded in the prior year period.
Current report
(1)Financial measures stated on an FTE basis. The FTE adjustment was $5.5 million and $7.1 million for three months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.
Current report
(3) Prior-year quarter includes a gain related to the sale of an equity investment.
Current report
(1)Financial measures stated on an FTE basis. The FTE adjustment was $15.8 million and $21.3 million for nine months ended September 30, 2025 and 2024, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.
Current report
Asset Servicing Foreign Exchange Trading Income
Current report
Foreign Exchange Trading Income increased$6.0 million, or 10%, from the prior-year quarter and increased $8.8 million, or 5% from the prior-year period, primarily driven by higher trading volumes.
Current report
Other Noninterest Income increased$10.3 million, or 15%, from the prior-year quarter and increased $19.4 million, or 10% from the prior-year period, primarily driven by Security Commissions and Trading Income due to higher core brokerage income.
Current report
The negative Provision for Credit Losses for the three and nine months ended September 30, 2025, reflected a decrease in the collective reserve driven by improved macroeconomic factors primarily in the C&I portfolio.
Current report
Asset Servicing (continued)
Current report
Asset Servicing Noninterest Expense
Current report
Noninterest Expense increased $44.9 million, or 5%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.
Current report
Wealth Management Foreign Exchange Trading Income (Loss)
Current report
Foreign Exchange Trading Income decreased $11.8 million, or 98%, from the prior-year period, primarily driven by the allocation of losses from Treasury swap activity.
Current report
Wealth Management Noninterest Expense
Current report
Noninterest Expense increased $27.4 million, or 6%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.
Current report
Other Noninterest Expense decreased $8.8 million, or 62%, from the prior-year quarter primarily due to lower expense related to the FDIC Special Assessment. Other Noninterest Expense decreased $115.3 million, or 82%, from the prior-year period, primarily due to a $70.0 million charitable contribution, $14.7 million FDIC special assessment, and $10.6 million legal settlement, all recorded in the prior-year period.
Current report
CONSOLIDATED BALANCE SHEET
Current report
The following table summarizes selected consolidated balance sheet information.
Current report
Moody's downgraded the long-term credit rating of the U.S. from Aaa to Aa1 in May 2025. As a result, U.S. treasuries and government sponsored agency securities are now AA rated in the table dated September 30, 2025 above.
Current report
In September 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (ASU 2025-06). ASU 2025-06 changes the cost capitalization threshold by removing the accounting consideration given to software project development stages and replaces it with the following criteria that must be met for entities to begin capitalizing software costs: (1) management has authorized and committed to funding the project and (2) it is ‘probable’ the project will be completed and the software used to perform its intended function (referred to as the ‘probable-to-complete’ threshold). In addition, ASU 2025-06 specifies that entities must apply the disclosure requirements in ASC 360-10, Property, Plant, and Equipment—Overall to capitalized internal-use software and related amortization, regardless of how the internal-use software is classified on the balance sheet. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, although early adoption is permitted. ASU 2025-06 is not expected to have a material impact on Northern Trust’s consolidated balance sheets or consolidated statements of income upon adoption.
Removed paragraphs (33)
Previous 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.
Previous 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.
Previous report
Six months ended June 30, 2025 highlights:
Previous 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.
Previous 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.
Previous report
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 report
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 report
Loans averaged $41.2 billion and increased $123.4 million, from $41.0 billion in the prior-year quarter.
Previous 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.
Previous 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.
Previous report
Loans averaged $41.1 billion and decreased $0.2 billion, from $41.3 billion in the prior-year period.
Previous report
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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
(4) Includes the net gain related to Northern Trust’s participation in the Visa Exchange Offer in the prior-year quarter.
Previous report
Other Noninterest Income increased$11.2 million, or 19%, from the prior-year quarter and increased $9.1 million, or 7% from the prior-year period, primarily driven by an increase in securities commissions and trading income and a loss resulting from a securities positioning related to the supplemental pension plan recorded in the prior year.
Previous report
The Provision for Credit Losses for thethree and six months ended June 30, 2025, reflected an increase in the collective reserve resulting primarily from a worsening macroeconomic outlook.
Previous report
For the three and six months ended June 30, 2025, Other Noninterest Expense decreased $90.8 million, or 90%, from the prior-year quarter and decreased $106.6 million, or 84%, from the prior-year period, primarily due to a $70.0 million charitable contribution and $10.6 million legal settlement both recorded in the prior year.
Previous report
CONSOLIDATED BALANCE SHEETS
Previous report
The following tables summarize selected consolidated balance sheet information.
Previous report
TABLE 21: SELECT AVERAGE CONSOLIDATED BALANCE SHEET INFORMATION
Previous report
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 report
CONSOLIDATED BALANCE SHEETS (continued)
Previous report
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 report
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 report
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 report
Nonaccrual Loans and Other Real Estate Owned (continued)
Previous report
Allowance for Credit Losses (continued)
Previous report
In July 2023, the U.S. banking regulators issued the Basel III Endgame Proposal, which would change how risk-based capital requirements are determined for banking organizations, including Northern Trust. The proposal would eliminate the existing advanced approach methodologies for determining RWA and replace it with a new expanded risk-based approach. Finalization of the Basel III Endgame proposal remains uncertain. The Corporation continues to monitor developments and potential impacts.
Previous report
REGULATORY CAPITAL (continued)
Reworded paragraphs (67)
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 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.”
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 third quarter of 2025. The following should be read in conjunction with the consolidated financial statements and related footnotes included in this report as well as the Annual Report on Form 10-K for the year ended December 31, 2024. Investors also should read the section titled “Forward-Looking Statements.”
Previous wording
(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 wording
(1) For the three months ended September 30, 2024, Other Noninterest Income included a $68.1 million pre-tax gain related to the sale of an equity investment, recorded in Other Operating Income. For the nine months ended September 30, 2024, Other Noninterest Income included a $878.4 million net gain related to Northern Trust’s participation in the Visa Exchange Offer, a $7.6 million impairment charge taken on certain investments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded to Other Operating Income, as well as a $189.3 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recorded in Investment Security Gains (Losses), net.
Previous wording
(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 wording
(2) For the nine months ended September 30, 2024, Noninterest Expense included severance-related charges of $85.2 million, of which $81.8 million was recorded to Compensation expense and $3.4 million was recorded to Outside Services, a $70.0 million charitable contribution to the Northern Trust Foundation, recorded in Other Operating Expense, $16.4 million of software amortization acceleration and dispositions, recorded to Equipment and Software expense, as well as a $14.7 million increase to the Federal Deposit Insurance Corporation (FDIC) special assessment and a $10.6 million legal settlement, both recorded to Other Operating Expense.
Previous wording
•Revenue for the three months ended June 30, 2025 decreased from the prior-year quarter to $2.0 billion, reflecting:
Current wording
•Revenue for the three months ended September 30, 2025 increased from the prior-year quarter to $2.0 billion, reflecting:
Previous 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.
Current wording
◦Trust, Investment and Other Servicing Fees increased to $1.3 billion in the current quarter primarily due to favorable markets.
Previous wording
•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 wording
•Noninterest Expense increased to $1.4 billion in the current quarter primarily due to higher Compensation and Equipment and Software expense.
Previous 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.
Current wording
•In the current quarter, there was a negative Provision for Credit Losses of $17.0 million, as compared to a Provision for Credit Losses of $8.0 million in the prior-year quarter. For additional information, refer to the Provision for Credit Losses within the “Consolidated Results of Operations” section.
Previous 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%.
Current wording
•The Provision for Income Taxes in the current quarter totaled $161.9 million, representing an effective tax rate of 26.1%. The Provision for Income Taxes in the prior-year quarter totaled $136.2 million, representing an effective tax rate of 22.7%.
Previous wording
•Revenue for the six months ended June 30, 2025 decreased from the prior-year period to $3.9 billion, reflecting:
Current wording
•Revenue for the nine months ended September 30, 2025 decreased from the prior-year period to $6.0 billion, reflecting:
Previous wording
◦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 wording
◦Trust, Investment and Other Servicing Fees increased to $3.7 billion in the current period primarily driven by favorable markets and net new business.
Previous wording
◦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 wording
◦Other Noninterest Income decreased to $483.5 million in the current period primarily driven by the $878.4 million net gain related to Northern Trust’s participation in the Visa exchange program and a $68.1 million gain on the sale of an equity investment, partially offset by a $189.3 million AFS debt security loss, a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of security repositioning related to the supplemental pension plan, all recorded in the prior-year period.
Previous wording
◦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 wording
◦Net Interest Income increased to $1.8 billion in the current period primarily due to the favorable impact of higher deposits, lower funding costs and higher foreign exchange swap activity executed by our Treasury department.
Previous wording
•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 wording
•There was a $0.5 million Provision for Credit Losses in the current period, as compared to a $7.5 million Provision for Credit Losses in the prior-year period. For additional information, refer to the Provision for Credit Losses within “Consolidated Results of Operations” section.
Previous wording
•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 wording
•The Provision for Income Taxes for the current period totaled $434.8 million, representing an effective tax rate of 25.5%. The Provision for Income Taxes for the prior-year period totaled $489.6 million, representing an effective tax rate of 23.7%.
Previous wording
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 wording
Custody and Fund Administration fees increased both from the prior-year quarter and from the prior-year period primarily driven by favorable markets, net new business, and favorable currency movements.
Previous 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.
Current wording
Investment Management fees increased both from the prior-year quarter and from the from the prior-year period primarily due to favorable markets.
Previous wording
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 wording
Global Family Office fee income increased from the prior-year period, primarily due to favorable markets.
Previous wording
Total assets under custody increased from the prior-quarter and prior-year quarter primarily driven by favorable markets and favorable currency translation.
Current wording
Total assets under custody/administration and assets under custody increased from the prior-year quarter primarily driven by favorable markets and favorable currency translation, partially offset by asset outflows.
Previous wording
Total AUM increased compared to the prior-year quarter primarily reflecting favorable markets and net new business.
Current wording
Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net new business.
Previous wording
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 wording
For the three months ended September 30, 2025 Other Operating Income decreased compared to the prior-year quarter primarily driven by the $68.1 million gain on the sale of an equity investment in the prior-year quarter, partially offset by lower expenses in the current quarter associated with existing Visa Class B swap agreements. For the nine months ended September 30, 2025, Other Operating Income decreased compared to the prior-year period primarily driven by the $878.4 million gain related to Northern Trust’s participation in the Visa exchange program and a $68.1 million gain on the sale of an equity investment, partially offset by a $7.6 million charge for investment impairments and a $6.5 million loss recognized as a result of a securities repositioning related to the supplemental pension plan, all recorded in the prior-year period.
Previous 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.
Current wording
For the nine months ended September 30, 2024, Investment Security Gains (Losses), net reflects a $189.3 million available for sale debt security loss related to repositioning of the portfolio.
Previous wording
Net interest margin is the difference between what we earn on our assets and what we pay for deposits and other sources of funding. The direction and level of interest rates are important factors in our earnings. Net interest margin is calculated by dividing annualized Net Interest Income by average interest-earning assets.
Current wording
Net interest margin is the difference between what we earn on our assets and what we pay for deposits and other sources of funding relative to average interesting-earning assets. The direction and level of interest rates are important factors in our earnings. Net interest margin is calculated by dividing annualized Net Interest Income by average interest-earning assets.
Previous 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.
Current wording
(2)Includes the impact of balance sheet netting under master netting arrangements of approximately $62.7 billion and $64.3 billion for the three months ended September 30, 2025 and 2024, respectively. Excluding the impact of netting for the three months ended September 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.41% and 5.43%, respectively. Excluding the impact of netting for the three months ended September 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.37% and 5.34%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Previous wording
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 wording
Net Interest Income for the three months ended September 30, 2025, stated on an FTE basis, increased from the prior-year quarter, primarily driven by lower funding costs.
Previous 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.
Current wording
Average Securities increased 10% from the prior-year quarter, reflecting strategic purchases of investment securities primarily in the AFS portfolio with modest duration and reinvesting maturities at higher yields Average taxable Securities were $46.9 billion in the current quarter and $44.0 billion in the prior-year quarter. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.3 billion in the current quarter and $6.3 billion in the prior-year quarter. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4-Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
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 $1.2 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 wording
Average Other Interest-Earning Assets includes collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $994.6 million, $879.7 million, $342.7 million, $85.0 million, and $70.0 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
Previous 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.
Current wording
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
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 wording
The following tables present an analysis of average daily balances and interest rate changes affecting Net Interest Income and an analysis of Net Interest Income changes for the nine months ended September 30, 2025.
Previous wording
(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 wording
(2)Includes the impact of balance sheet netting under master netting arrangements of approximately $62.2 billion and $62.5 billion for the nine months ended September 30, 2025 and 2024, respectively. Excluding the impact of netting for the nine months ended September 30, 2025 and 2024, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 4.44% and 5.45%, respectively. Excluding the impact of netting for the nine months ended September 30, 2025 and 2024, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 4.36% and 5.37%, respectively. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Previous wording
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 wording
Net Interest Income for the nine months ended September 30, 2025, stated on an FTE basis, increased from the prior-year period, primarily driven by the favorable impact of higher deposits and lower funding costs.
Previous wording
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 wording
The net interest margin on an FTE basis increased from the prior-year period, primarily driven by the favorable impact of lower funding costs, partially offset by lower yields on interest-earning assets.
Previous wording
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 wording
Average Securities increased 7%, from the prior-year period reflecting strategic purchases of investment securities primarily in the AFS portfolio. Average taxable Securities were $45.0 billion in the current period and $43.7 billion in the prior-year period. Average nontaxable Securities, which represent securities that are primarily exempt from U.S. federal and state income taxes, were $8.2 billion in the current period and $5.9 billion in the prior-year period. For additional discussion relating to the securities portfolio, refer to the “Asset Quality” section in this MD&A and to Note 4-Securities to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
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 $1.3 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.
Current wording
Average Other Interest-Earning Assets includes collateral deposits with certain securities depositories and clearing houses, certain community development investments, Federal Home Loan Bank stock, a money market investment, and Federal Reserve stock of $1.1 billion, $868.5 million, $342.7 million, $85.0 million, and $70.0 million respectively, which are recorded in Other Assets on the consolidated balance sheets.
Previous 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.
Current wording
Average Interest-Bearing Deposits increased 6% from the prior-year period, primarily due to increased client activity and higher liquidity as a result of market volatility. Average non-U.S. offices interest-bearing deposits comprised 66% of total average interest-bearing deposits for both the nine months ended September 30, 2025 and 2024.
Previous wording
TABLE 15: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE(1)
Current wording
TABLE 16: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE QTD(1)
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 $(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.
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 $(17.5) million and $(161.6) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $(21.4) million and $(153.3) million, respectively.
Previous wording
TABLE 17: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE(1)
Current wording
TABLE 17: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE YTD(1)
Previous wording
(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 wording
(2)Changes due to average balance and average rate include the impact of balance sheet netting as noted in Table 20: Average Consolidated Balance Sheets with Analysis of Net Interest Income. Excluding the impact of netting, the 2025 vs. 2024 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $(7.1) million and $(479.4) million, respectively. Excluding the impact of netting, the 2025 vs. 2024 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $(10.1) million and $(476.2) million, respectively.
Previous wording
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 wording
For the three months ended September 30, 2025, Compensation expense, the largest component of Noninterest Expense, increased compared to the prior-year quarter primarily due to base pay adjustments, increased headcount, and higher incentives.
Previous wording
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 wording
For the nine months ended September 30, 2025, Employee Benefits expense increased compared to the prior-year period primarily driven by higher medical costs.
Showing the first 40 of 67 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
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 (8)
Previous report — wording carried elsewhere
Total AUM increased compared to the prior quarter primarily reflecting favorable markets.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
(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.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
(2) Other Interest-Earning Assets includes certain community development investments, collateral deposits with certain securities depositories and clearing houses, Federal Home Loan Bank and Federal Reserve stock, and money market investments which are classified in Other Assets on the consolidated balance sheets.
Previous report — wording carried elsewhere
(3) Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Short-term borrowings includes Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Other