NORTHERN TRUST CORP
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
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, 2026 · Filed Jul 30, 2026
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 2026-03-31; filed 2026-04-30.
0000073124-26-000035
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 2026-06-30; filed 2026-07-30.
0000073124-26-000047
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 273 previous paragraphs and 317 current paragraphs.
213 unchanged; 51 reworded; 32 added; 9 removed; 0 previous and 21 current paragraphs rearranged.
Tables are not compared: 30 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 (32)
Current report
(1) For the three and six months ended June 30, 2026, Other Noninterest Income included a $525.4 million (pre-tax) gain related to Northern Trust’s participation in the second Visa, Inc. Exchange Offer, recorded in Other Operating Income and a $73.9 million (pre-tax) loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recognized in Investment Security Gains (Losses)
Current report
(2) For the three and six months ended June 30, 2026, Noninterest Expense included a $61.5 million (pre-tax) charge related to software dispositions, recognized in Equipment and Software expense, as well as $51.0 million (pre-tax) of severance-related charges and a $33.1 million (pre-tax) expense related to the Invested as One equity grant to eligible employees, both recognized in Compensation and Benefits expense.
Current report
◦Net Interest Income increased to $675.5 million in the current quarter primarily driven by higher deposits and lower funding costs.
Current report
•Noninterest Expense increased to $1.6 billion in the current quarter primarily due to a $61.5 million charge related to software dispositions recognized in Equipment and Software expense, as well as $51.0 million of severance-related charges and a $33.1 million expense related to the Invested as One equity grant to eligible employees, both recognized in Compensation and Benefits expense, all occurring in the current quarter.
Current report
Six Months Ended June 30, 2026 highlights:
Current report
•Revenue for the six months ended June 30, 2026 increased from the prior-year period to $4.9 billion, reflecting:
Current report
◦Other Noninterest Income increased to $883.3 million in the current year primarily due to higher Other Operating Income, mainly driven by a $525.4 million gain related to Northern Trust’s participation in the second Visa, Inc. Exchange Offer in the current quarter, as well as higher Foreign Exchange Trading Income and Securities Commissions and Trading Income, mainly driven by higher volumes resulting from client activity and market volatility, partially offset by a $73.9 million loss on the sale of AFS securities related to a repositioning of the portfolio in the current quarter, recognized in Investment Security Gains (Losses), net.
Current report
•Noninterest Expense increased to $3.1 billion in the current year primarily due to a $61.5 million charge related to software dispositions recognized in Equipment and Software expense, as well as $51.0 million of severance-related charges and a $33.1 million expense related to the Invested as One equity grant to eligible employees, both recognized in Compensation and Benefits expense, all occurring in the current quarter.
Current report
(1) Beginning in Q2 2026, Wealth Management Trust, Investment and Other Servicing Fees by region are combined into the Private Wealth line item. Prior periods have been revised.
Current report
Private Wealth fee income increased from the prior-year quarter and from the prior-year period primarily due to favorable markets.
Current report
For the three and six months ended June 30, 2026 Investment Securities Gains (Losses), net reflects a $73.9 million loss on the sale of available for sale debt securities in the current quarter related to a repositioning of the securities portfolio.
Current report
(7) Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.65% and 4.36% in 2026 and 2025, respectively. It includes balances and rates for FICC repurchase agreements and Non-FICC repurchase agreements of ($84.0 billion / 3.65%) and ($0.7 billion / 3.41%) for 2026 and ($62.0 billion / 4.36%) and ($0.6 billion / 4.17%) for 2025, respectively.
Current report
Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Average interest-earning deposits decreased 9%, from the prior-year quarter, primarily driven by strategic purchases in the securities portfolio.
Current report
Net Interest Income for the six months ended June 30, 2026, stated on an FTE basis, increased from the prior-year period, primarily driven by higher deposits levels and lower funding costs, partially offset by lower asset yields.
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 interest-earning assets.
Current report
Average Loans was relatively flat compared the prior-year period as an increase in short term advances, primarily related to the processing of custodied client investments, was partially offset by a decrease in Commercial and Institutional loans and Private Client loans.
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 both periods 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 CRE portfolio. The prior-year quarter included $0.3 million net recoveries, reflecting $0.4 million of recoveries and $0.1 million of charge-offs. The prior-year period included $0.5 million net recoveries, reflecting $0.9 million of recoveries and $0.4 million of charge-offs.
Current report
Income tax expense for the six months ended June 30, 2026 was $447.6 million, representing an effective tax rate of 25.4%, compared to $272.9 million in the prior-year period, representing an effective tax rate of 25.1%.
Current report
(3)The current quarter charges related to software dispositions and severance are included in the Reporting Segments with $100.6 million recorded to Asset Servicing and $11.9 million recorded to Wealth Management.
Current report
(4)Other includes the current quarter $525.4 million gain related to Northern Trust's participation in the second Visa Exchange Offer, the $73.9 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, and the $33.1 million Invested as One equity grant to eligible employees.
Current report
(3)The current quarter charges related to software dispositions and severance are included in the Reporting Segments with $100.6 million recorded to Asset Servicing and $11.9 million recorded to Wealth Management.
Current report
(4)Other includes the current quarter $525.4 million gain related to Northern Trust's participation in the second Visa Exchange Offer, the $73.9 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, and the $33.1 million Invested as One equity grant to eligible employees.
Current report
Foreign Exchange Trading Income increased$37.9 million, or 62%, from the prior-year quarter and increased $65.0 million, or 52%, from the prior-year period, primarily due to higher trading volumes driven by client activity and market volatility, particularly in Asia-Pacific markets.
Current report
Wealth Management Foreign Exchange Trading Income (Loss)
Current report
Foreign Exchange Trading Income (Loss) increased $8.6 million, or 83%, from the prior-year quarter and $10.5 million, or 67%, from the prior-year period, primarily driven by the favorable impact from lower foreign exchange swap activity executed by our Treasury department that is allocated to Wealth Management.
Current report
Other—Noninterest Income
Current report
Other Noninterest Income increased $450.3 million and $456.8 million from the prior-year quarter and prior-year period, respectively, primarily due to the current quarter $525.4 million gain related to Northern Trust's participation in the second Visa Exchange Offer, partially offset by the $73.9 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio.
Current report
Other—Noninterest Expense
Current report
Other Noninterest Expense increased $27.7 million from the prior-year quarter primarily due to the current quarter $33.1 million Invested as One equity grant to eligible employees. Other Noninterest Expense increased $19.5 million from the prior-year period driven by the current quarter $33.1 million Invested as One equity grant to eligible employees, partially offset by lower non-allocated occupancy expense primarily arising from early lease exits.
Current report
CONSOLIDATED BALANCE SHEETS
Current report
Net cash provided by financing activities of $1.6 billion for the six months ended June 30, 2026 was primarily attributable to increased levels of total deposits and short term borrowings, partially offset by share repurchases.
Removed paragraphs (9)
Previous report
•Noninterest Expense increased to $1.5 billion in the current quarter primarily due to higher Compensation and Benefits and Equipment and Software expense.
Previous report
Fee income in the regions (Central, East and West) increased from the prior-year quarter primarily due to favorable markets and new business.
Previous report
Net charge-offs in the current quarter were $0.1 million, reflecting $0.4 million of charge-offs and $0.3 million of recoveries. The prior-year quarter included $0.2 million net recoveries, reflecting $0.5 million of recoveries and $0.3 million of charge-offs.
Previous report
REPORTING SEGMENTS (continued)
Previous report
(2)Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense.
Previous report
Foreign Exchange Trading Income increased$27.0 million, or 42%, from the prior-year quarter primarily driven by higher volumes due to market volatility.
Previous report
REPORTING SEGMENTS (continued)
Previous report
CONSOLIDATED BALANCE SHEET
Previous report
Net cash used in financing activities of $3.1 billion for the three months ended March 31, 2026 was primarily attributable to the decreased levels of total deposits, repayments of long-term debt, and treasury share purchases.
Reworded paragraphs (51)
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 2026. 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, 2025. 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 2026. 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, 2025. Investors also should read the section titled “Forward-Looking Statements.”
Previous wording
•Revenue for the three months ended March 31, 2026 increased from the prior-year quarter to $2.2 billion, reflecting:
Current wording
•Revenue for the three months ended June 30, 2026 increased from the prior-year quarter to $2.7 billion, reflecting:
Previous wording
◦Other Noninterest Income increased to $210.2 million in the current quarter primarily due to higher Foreign Exchange Trading Income and Securities Commissions and Trading Income mainly driven by higher volumes resulting from market volatility. Securities Commissions and Trading Income also increased from the prior-year due to growth in outsourced trading activity.
Current wording
◦Other Noninterest Income increased to $673.0 million in the current quarter primarily due to higher Other Operating Income, mainly driven by a $525.4 million gain related to Northern Trust’s participation in the second Visa, Inc. Exchange Offer in the current quarter, as well as higher Foreign Exchange Trading Income and Securities Commissions and Trading Income, mainly driven by higher volumes resulting from client activity and market volatility, partially offset by a $73.9 million loss on the sale of AFS securities related to a repositioning of the portfolio in the current quarter, recognized in Investment Security Gains (Losses), net.
Previous wording
•In the current quarter, there was a negative Provision for Credit Losses of $3.0 million, as compared to a Provision for Credit Losses of $1.0 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 $5.3 million, as compared to a Provision for Credit Losses of $16.5 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
◦Trust, Investment and Other Servicing Fees increased to $1.3 billion in the current quarter primarily due to favorable markets, net new business, and favorable currency movement.
Current wording
◦Trust, Investment and Other Servicing Fees increased to $2.7 billion in the current year primarily due to favorable markets, net new business, and favorable currency movement.
Previous wording
◦Net Interest Income increased to $654.0 million in the current quarter primarily driven by higher deposit levels, partially offset by lower interest rates.
Current wording
◦Net Interest Income increased to $1.3 billion in the year primarily driven by higher deposit levels and lower funding costs, partially offset by lower asset yields.
Previous wording
Custody and Fund Administration fees increased from the prior-year quarter primarily driven by favorable markets, favorable currency movements and net new business.
Current wording
Custody and Fund Administration fees increased from the prior-year quarter primarily driven by favorable markets and net new business. Custody and Fund Administration fees increased from the prior-year period primarily driven by favorable markets, favorable currency movements and net new business.
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 from both the the prior-year quarter and the prior-year period primarily due to favorable markets and net client inflows.
Previous wording
Securities Lending increased from the prior-year quarter primarily due to higher volumes.
Current wording
Securities Lending increased from both the prior-year quarter and prior-year period primarily due to higher trading volumes and spreads.
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.
Current wording
Wealth Management fees are calculated primarily based on market values and is impacted by both one-month and one-quarter lagged asset values.
Previous wording
Global Family Office fee income increased from the prior-year quarter primarily due to favorable markets and client inflows.
Current wording
Global Family Office fee income increased from the prior-year period primarily due to favorable markets and client inflows.
Previous wording
Total assets under custody/administration and assets under custody increased from the prior-year quarter primarily driven by favorable markets.
Current wording
Total assets under custody/administration and assets under custody increased from the prior quarter, primarily driven by favorable markets and net client inflows. Total assets under custody/administration and assets under custody increased from the prior-year quarter, primarily driven by favorable markets, partially offset by unfavorable currency translation
Previous wording
Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net client inflows.
Current wording
Total assets under management increased compared to the prior quarter and the prior-year quarter primarily reflecting favorable markets and net client inflows.
Previous wording
For the three months ended March 31, 2026, Foreign Exchange Trading Income increased compared to the prior-year quarter primarily due to higher volumes driven by market volatility.
Current wording
For the three and six months ended June 30, 2026, Foreign Exchange Trading Income increased compared to the prior-year quarter and prior-year period, primarily due to higher trading volumes driven by client activity and market volatility, particularly in Asia-Pacific markets.
Previous wording
For the three months ended March 31, 2026, Security Commissions and Trading Income increased compared to the prior-year quarter primarily due to higher volumes due to market volatility and growth in outsourced trading activity.
Current wording
For the three and six months ended June 30, 2026, Security Commissions and Trading Income increased compared to the prior-year quarter and prior-year period, primarily due to higher volumes as a result of market volatility and growth in outsourced trading activity.
Previous wording
For the three months ended March 31, 2026 Other Operating Income increased compared to the prior-year quarter primarily due to a market value increase in supplemental compensation plans and lower expense associated with the Visa Class B swaps.
Current wording
For the three and six months ended June 30, 2026, Other Operating Income increased compared to the prior-year quarter and prior-year period, primarily due to a $525.4 million gain related to Northern Trust’s participation in the second Visa, Inc. Exchange Offer.
Previous wording
(3)Includes the impact of balance sheet netting under master netting arrangements of approximately $88.1 billion and $62.0 billion in 2026 and 2025, respectively, primarily related to our involvement in FICC. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Current wording
(3)Includes the impact of balance sheet netting under master netting arrangements of approximately $84.0 billion and $62.0 billion in 2026 and 2025, respectively, primarily related to our involvement in FICC. Northern Trust nets securities sold under repurchase agreements against those purchased under resale agreements when the GAAP requirements to net are met.
Previous wording
(4)Excluding the impact of netting, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 3.76% and 4.46% in 2026 and 2025, respectively. It includes balances and rates for FICC reverse repurchase agreements, Non-FICC reverse repurchase agreements and federal funds sold of ($88.1 billion / 3.77%), ($1.1 billion / 3.02%), and ($0.4 million / 3.85%) for 2026 and ($62.1 billion / 4.46%), ($0.3 billion / 4.34%), and ($1.3 million / 4.61%) for 2025, respectively.
Current wording
(4)Excluding the impact of netting, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 3.72% and 4.43% in 2026 and 2025, respectively. It includes balances and rates for FICC reverse repurchase agreements, Non-FICC reverse repurchase agreements and federal funds sold of ($84.1 billion / 3.72%), ($0.4 billion / 4.04%), and ($0.8 million / 3.85%) for 2026 and ($62.1 billion / 4.45%), ($0.7 billion / 2.88%), and ($1.1 million / 4.61%) for 2025, respectively.
Previous wording
Net Interest Income for the three months ended March 31, 2026, stated on an FTE basis, increased from the prior-year quarter, primarily driven by higher deposits, partially offset by lower interest rates
Current wording
Net Interest Income for the three months ended June 30, 2026, stated on an FTE basis, increased from the prior-year quarter, primarily driven by higher deposits and lower funding costs.
Previous wording
Average Securities increased 15% from the prior-year quarter, reflecting strategic purchases of investment securities with modest duration and higher client deposits. Average taxable Securities were $51.6 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 $8.1 billion in the current quarter and $8.0 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).
Current wording
Average Securities increased 17% from the prior-year quarter, reflecting strategic purchases of investment securities, primarily in the AFS portfolio. Average taxable Securities were $53.4 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 $8.0 billion in the current quarter and $8.3 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 Loans of $40.9 billion was relatively flat compared to the prior-year quarter, primarily driven by a decrease in Subscription Finance loans, partially offset by an increase in Fund Finance loans. For additional discussion relating to the revised loan classes within the Commercial loan segment, refer to Note 5- Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Current wording
Average Loans of $41.6 billion increased 1% compared to the prior-year quarter, primarily driven by an increase in short term advances, primarily related to the processing of custodied client investments, and Subscription Finance loans, partially offset by a decrease in Commercial and Institutional loans. For additional discussion relating to the revised loan classes within the Commercial loan segment, refer to Note 5- Loans to the consolidated financial statements provided in Item 1. Consolidated Financial Statements (unaudited).
Previous wording
Average Interest-Bearing Deposits increased 11% from the prior-year quarter, primarily due to increased liquidity and client activity as a result of market volatility, and growth across institutional and personal clients. Average Non-U.S. Offices Interest-Bearing Deposits comprised 68% and 65% of total average Interest-Bearing Deposits for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Average Interest-Bearing Deposits increased 3% from the prior-year quarter, primarily due to increased liquidity and client activity as a result of market volatility and growth across institutional and personal clients. Average Non-U.S. Offices Interest-Bearing Deposits comprised 65% and 66% of total average Interest-Bearing Deposits for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
(7) Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.68% and 4.37% in 2026 and 2025, respectively. It includes balances and rates for FICC repurchase agreements and Non-FICC repurchase agreements of ($88.1 billion / 3.69%) and ($0.5 billion / 3.35%) for 2026 and ($62.1 billion / 4.37%) and ($0.4 billion / 4.11%) for 2025, respectively.
Current wording
(7)Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.67% and 4.36%, in 2026 and 2025, respectively. It includes balances and rates for FICC repurchase agreements and Non-FICC repurchase agreements of ($86.0 billion / 3.67%) and ($0.6 billion / 3.38%) for 2026 and ($62.0 billion / 4.37%) and ($0.5 billion / 4.14%) for 2025, respectively.
Previous wording
Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Interest-earning deposits increased 16%, from the prior-year quarter, primarily driven by higher client deposits.
Current wording
Interest-earning deposits includes Federal Reserve and Other Central Bank Deposits and Interest-Bearing Due from and Deposits with Banks. Average interest-earning deposits increased 2% from the prior-year period, primarily driven by higher client deposits.
Previous 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 $1.9 billion, $1.0 billion, $342.7 million, $85.0 million, and $69.2 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 $1.8 billion, $1.0 billion, $342.7 million, $93.4 million, and $69.1 million respectively, which are recorded in Other Assets on the consolidated balance sheets.
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 2026 vs. 2025 change in Federal Funds Sold and Securities Purchased under Agreements to Resell attributed to the average balance and the average rate would be $260.8 million and $(120.7) million, respectively. Excluding the impact of netting, the 2026 vs. 2025 change in Securities Sold under Agreements to Repurchase attributed to the average balance and the average rate would be $248.6 million and $(117.4) million, respectively.
Current wording
(2)Changes due to average balance and average rate exclude the impact of balance sheet netting noted in Table 14: Average Consolidated Balance Sheets with Analysis of Net Interest Income.
Previous wording
For the three months ended March 31, 2026, there was a negative Provision for Credit Losses of $3.0 million, as compared to a Provision for Credit Losses of $1.0 million in the prior-year quarter. The negative provision in the current quarter resulted from a decrease in the collective reserve, partially offset by an increase in individual reserves. The decrease in the collective reserve was primarily driven by improved credit quality of the Commercial and Institutional (C&I) portfolio, partially offset by increased macroeconomic uncertainty. The increase in the individual reserve was driven by a small number of non-performing loans. The provision in the prior-year 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 portfolio.
Current wording
For the three and six months ended June 30, 2026, there was a negative Provision for Credit Losses of $5.3 million and $8.3 million, respectively. The negative provision in the current quarter resulted from a decrease in the collective reserve, partially offset by an increase in individual reserves. The decrease in the collective reserve was primarily driven by a strengthening macroeconomic outlook and improved credit quality for the Commercial Real Estate (CRE) and Commercial and Institutional (C&I) portfolios. The increase in the individual reserve was driven by a small number of non-performing loans. The negative provision in the current-year period was primarily in the C&I portfolio, driven by a strengthening macroeconomic outlook and improved credit quality; partially offset by an increase in specific reserves related to a small number of non-performing loans. Net recoveries in the current quarter were $0.4 million, reflecting $0.6 million of recoveries and $0.2 million of charge-offs. Net recoveries in the current-year period were $0.3 million, reflecting $0.9 million of recoveries and $0.6 million of charge-offs.
Previous wording
For the three months ended March 31, 2026, Compensation and Benefits expense, the largest component of Noninterest Expense, increased compared to the prior-year quarter primarily due to higher annual base pay adjustments, higher incentives, an increase in pension expense, and unfavorable currency movement.
Current wording
For the three and six months ended June 30, 2026 Compensation and Benefits expense, the largest component of Noninterest Expense, increased compared to the prior-year quarter and prior year period, primarily due to the current quarter severance charge of $51.0 million, higher incentives, the $33.1 million Invested as One equity grant to eligible employees, annual base pay adjustments and an increase in pension expense.
Previous wording
For the three months ended March 31, 2026 Equipment and Software expense increased compared to the prior-year quarter primarily due to higher software support expense and higher software amortization.
Current wording
For the three and six months ended June 30, 2026 Equipment and Software expense increased compared to the prior-year quarter and the prior year period, primarily due to software dispositions of $61.5 million in the current quarter, higher software support and higher amortization.
Previous wording
Income tax expense for the three months ended March 31, 2026 was $175.1 million, representing an effective tax rate of 25.0%, compared to $129.4 million in the prior-year quarter, representing an effective tax rate of 24.8%.
Current wording
Income tax expense for the three months ended June 30, 2026 was $272.5 million, representing an effective tax rate of 25.6%, compared to $143.5 million in the prior-year quarter, representing an effective tax rate of 25.4%.
Previous wording
In addition to income and expenses associated with non-recurring activities, Other includes expenses for the Chief Operating Office, Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $7.6 million and $5.6 million for the three months ended March 31, 2026 and 2025, 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 the Enterprise Chief Operating Office, Asset Management, corporate and other support functions not directly incurred by, but ultimately allocated back to Asset Servicing and Wealth Management. Other also includes the FTE adjustments of $7.6 million and $15.2 million for the three and six months ended June 30, 2026, respectively, and $4.7 million and $10.3 million for the three and six months ended June 30, 2025, respectively, in order to reconcile the segment results that are reported on an internal management-reporting basis into consolidated results.
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, 2026 and 2025.
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, 2026 and 2025.
Previous wording
(1)Financial measures stated on an FTE basis. The FTE adjustment was $7.6 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.
Current wording
(1)Financial measures stated on an FTE basis. The FTE adjustment was $7.6 million and $4.7 million for the three months ended June 30, 2026 and 2025, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.
Previous wording
Other Noninterest Income increased$16.3 million, or 24%, from the prior-year quarter primarily in Security Commissions and Trading Income due to higher volumes driven by market volatility and growth in outsourced trading activity.
Current wording
Other Noninterest Income increased$18.7 million, or 26%, from the prior-year quarter and increased $35.0 million, or 25%, from the prior-year period, primarily in Security Commissions and Trading Income due to higher volumes driven by market volatility and growth in outsourced trading activity.
Previous wording
Net Interest Income stated on an FTE basis increased $78.0 million, or 24%, from the prior-year quarter primarily due to the favorable impact of higher deposits and lower funding costs.
Current wording
Net Interest Income stated on an FTE basis increased $68.9 million, or 20%, from the prior-year quarter and increased $146.9 million, or 22%, from the prior-year period, primarily due to the favorable impact of higher deposits and lower funding costs.
Previous wording
The negative Provision for Credit Losses for the three months ended March 31, 2026 reflected a decrease in the collective reserve driven by improved credit quality of the C&I portfolio, partially offset by an increase in macroeconomic uncertainty.
Current wording
The negative Provision for Credit Losses for the three and six months ended June 30, 2026, reflected a decrease in the collective reserve primarily in the C&I portfolio, driven by a strengthening macroeconomic outlook and improved credit quality.
Previous wording
Noninterest Expense increased $42.1 million, or 8%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.
Current wording
Noninterest Expense increased $145.8 million, or 16%, from the prior-year quarter and increased $202.4 million, or 11%, from the prior-year period, primarily driven by higher indirect expense allocations for certain corporate support services and $100.6 million of the current quarter charges related to software dispositions and severance.
Previous wording
The Provision for Credit Losses for the three months ended March 31, 2026, reflected an increase in the individual reserve driven by a small number of non-performing loans, partially offset by a decrease in the collective reserve driven by improved credit quality of the C&I portfolio.
Current wording
The negative Provision for Credit Losses for the three months ended June 30, 2026, reflected a decrease in the collective reserve driven by a strengthening macroeconomic outlook and improved credit quality for the CRE and C&I portfolios; partially offset by an increase in the individual reserve driven by a small number of non-performing loans
Previous wording
Noninterest Expense increased $56.5 million, or 6%, from the prior-year quarter, primarily driven by higher indirect expense allocations for certain corporate support services.
Current wording
Noninterest Expense increased $48.5 million, or 9%, from the prior-year quarter and $90.5 million, or 9%, from the prior-year period, primarily driven by higher indirect expense allocations for certain corporate support services and $11.9 million of the current quarter charges related to software dispositions and severance.
Previous wording
During the three months ended March 31, 2026, the Corporation declared cash dividends totaling $150.8 million to common stockholders, and cash dividends totaling $16.2 million to preferred stockholders. 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.
Current wording
During the three and six months ended June 30, 2026, the Corporation declared cash dividends totaling $148.8 million and $299.6 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, 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.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (21)
Current report — wording carried from elsewhere
◦Trust, Investment and Other Servicing Fees increased to $1.3 billion in the current quarter primarily due to favorable markets, net client inflows, and net new business.
Current report — wording carried from elsewhere
•In the current year, there was a negative Provision for Credit Losses of $8.3 million, as compared to a Provision for Credit Losses of $17.5 million in the prior-year quarter. For additional information, refer to the Provision for Credit Losses within the “Consolidated Results of Operations” section.
Current report — wording carried from elsewhere
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 $1.7 billion, $986.1 million, $342.7 million, $101.8 million, and $69.1 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
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, 2026.
Current report — wording carried from elsewhere
TABLE 15: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME
Current report — wording carried from elsewhere
(1)Rate calculations are based on actual balances rather than the rounded amounts presented in the table above.
Current report — wording carried from elsewhere
(2)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
(3)Includes the impact of balance sheet netting under master netting arrangements of approximately $86.0 billion and $62.0 billion in 2026 and 2025, respectively, primarily related to our involvement in FICC. 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
(4)Excluding the impact of netting, the average interest rate on Federal Funds Sold and Securities Purchased under Agreements to Resell would be approximately 3.74% and 4.45% in 2026 and 2025, respectively. It includes balances and rates for FICC reverse repurchase agreements, Non-FICC reverse repurchase agreements and federal funds sold of ($86.1 billion / 3.74%), ($0.8 billion / 3.31%), and ($0.6 million / 3.85%) for 2026 and ($62.1 billion / 4.45%), ($0.5 billion / 3.36%), and ($1.2 million / 4.61%) for 2025, respectively.
Current report — wording carried from elsewhere
(5)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
(6)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
(9) 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section.
Current report — wording carried from elsewhere
Average Securities increased 16%, from the prior-year period reflecting strategic purchases of investment securities primarily in the AFS portfolio. Average taxable Securities were $52.4 billion in the current period and $44.0 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 $8.1 billion in the current period and $8.2 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).
Current report — wording carried from elsewhere
Average Interest-Bearing Deposits increased 7% from the prior-year period, primarily due to increased client activity and higher liquidity as a result of market volatility and growth across institutional and personal clients. Average non-U.S. offices interest-bearing deposits comprised 67% and 66% of total average interest-bearing deposits for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
TABLE 17: ANALYSIS OF NET INTEREST INCOME CHANGES DUE TO VOLUME AND RATE YTD(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 exclude the impact of balance sheet netting noted in Table 20: Average Consolidated Balance Sheets with Analysis of Net Interest Income.
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
(1)Financial measures stated on an FTE basis. The FTE adjustment was $15.2 million and $10.3 million for the six months ended June 30, 2026 and 2025, respectively, and is eliminated within “Other” in order for “Total Consolidated” to reconcile with the Consolidated Statement of Income.
Current report — wording carried from elsewhere
(3) Other Borrowings primarily includes advances from the Federal Home Loan Bank of Chicago.