NORTHERN TRUST CORP
For the period ended Sep 30, 2026. Filed Oct 29, 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.
Sep 30, 2026 · Filed Oct 29, 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 2026-06-30; 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 RiskCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0000073124-26-000066
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 317 previous paragraphs and 323 current paragraphs.
227 unchanged; 77 reworded; 18 added; 11 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 33 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 (18)
Current report
◦Net Interest Income increased to $671.4 million in the current quarter primarily driven by higher deposits, a favorable deposit mix, and lower funding costs.
Current report
•Noninterest Expense increased to $1.5 billion in the current quarter primarily due to increases in Equipment and Software expense, Other Operating Expense, and Compensation and Benefits expense.
Current report
Nine Months Ended September 30, 2026 highlights:
Current report
For the three months ended September 30, 2026, Other Operating Income increased compared to the prior-year quarter primarily due to a $34.0 million gain on the guardianship business sale and a gain of $14.7 million related to Northern Trust’s participation in the second Visa Exchange Offer. For the nine months ended September 30, 2026, Other Operating Income increased compared to the prior-year period primarily due to a $540.1 million gain related to Northern Trust’s participation in the second Visa Exchange Offer as well as a $34.0 million gain on the guardianship business sale.
Current report
The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by higher deposits, a favorable deposit mix, and lower funding costs.
Current report
For the three months ended September 30, 2026, there was a Provision for Credit Losses of $5.4 million which primarily resulted from the charge-off of one Commercial and Institutional (C&I) loan. For the nine months ended September 30, 2026, there was a negative Provision for Credit Losses of $3.0 million primarily in the C&I portfolio, driven by a strengthening macroeconomic outlook and improved credit quality, partially offset by the charge-off of one C&I loan. Net charge-offs in the current quarter were $11.0 million, reflecting $11.6 million of charge-offs and $0.6 million of recoveries. Net charge-offs in the current-year period were $10.6 million, reflecting $12.1 million of charge-offs and $1.5 million of recoveries.
Current report
For the three months ended September 30, 2025, there was a negative Provision for Credit Losses of $17.0 million which was driven by a decrease in collective reserves due to improved macroeconomic factors primarily impacting the C&I portfolio and improved projections for Residential Real Estate. For the nine months ended September 30, 2025, there was a Provision for Credit Losses of $0.5 million driven by an increase in specific reserves related to a small number of non-performing loans; partially offset by a decrease in the collective reserve due to an improved outlook for the Commercial Real Estate portfolio. The prior-year quarter included $0.4 million net charge-offs, reflecting $2.1 million of charge-offs and $1.7 million of recoveries. The prior-year period included $0.1 million net recoveries, reflecting $2.6 million of recoveries and $2.5 million of charge-offs.
Current report
For the three and nine months ended September 30, 2026, Other Operating Expense increased compared to the prior-year quarter and prior-year period primarily due to an increase in account servicing costs and distribution expenses for certain Northern Trust funds.
Current report
(3)The current-year quarter $34.0 million gain on the sale of the guardianship services business is included within Wealth Management Other Noninterest Income.
Current report
(4)Other includes the current-year quarter $14.7 million incremental gain related to Northern Trust's participation in the second Visa Exchange Offer and the reduction in the current year valuation allowance attributable to U.S. foreign tax credits.
Current report
(2) Other Segment Items include Occupancy, Equipment & Software and Other Operating Expense.
Current report
Net Interest Income stated on an FTE basis increased $65.7 million, or 19%, from the prior-year quarter primarily due to higher deposits, a favorable deposit mix, and lower funding costs. Net Interest Income stated on an FTE basis increased $212.6 million, or 21%, from the prior-year period, primarily due to higher deposits and lower funding costs.
Current report
The negative Provision for Credit Losses for the nine months ended September 30, 2026, was primarily in the C&I portfolio, driven by a strengthening macroeconomic outlook and improved credit quality.
Current report
Wealth Management Other Noninterest Income
Current report
Other Noninterest Income increased $31.6 million, or 81%, from the prior-year quarter and increased $35.7 million, or 33%, from the prior-year period, primarily driven by the $34.0 million gain on the sale of the guardianship services business.
Current report
Wealth Management Net Interest Income
Current report
Net cash used in financing activities of $12.0 billion for the nine months ended September 30, 2026 was primarily attributable to decreased levels of total deposits, repayments of long-term debt, and share repurchases, partially offset by increased levels of short-term borrowings.
Current report
During the three months ended September 30, 2026, Northern Trust experienced no actual GFX trading loss exceptions, meaning there were no days on which actual GFX trading losses exceeded the corresponding daily GFX VaR estimate.
Removed paragraphs (11)
Previous report
◦Net Interest Income increased to $675.5 million in the current quarter primarily driven by higher deposits and lower funding costs.
Previous report
Six Months Ended June 30, 2026 highlights:
Previous report
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 report
(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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous report
During the three months ended June 30, 2026, Northern Trust did not incur an actual GFX trading loss in excess of the daily GFX VaR estimate.
Reworded paragraphs (77)
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 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 third 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
(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 wording
(1) For the three months ended September 30, 2026, Other Noninterest Income included a $34.0 million gain on the sale of the guardianship service business and a $14.7 million gain related to Northern Trust’s participation in the second Visa Exchange Offer, both recorded in Other Operating Income. For the nine months ended September 30, 2026, Other Noninterest Income included a $540.1 million gain related to Northern Trust’s participation in the second Visa Exchange Offer, recorded in Other Operating Income, a $73.9 million loss on available for sale debt securities sold in conjunction with a repositioning of the portfolio, recognized in Investment Security Gains (Losses), and a $34.0 million gain on the sale of the guardianship service business, recorded in Other Operating Income.
Previous wording
(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 wording
(2) For the nine months ended September 30, 2026, Noninterest Expense included a $61.5 million charge related to software dispositions, recognized in Equipment and Software expense, as well as a $51.0 million severance-related charge and a $33.1 million expense related to the Invested as One equity grant to eligible employees, both recognized in Compensation and Benefits expense.
Previous wording
•Revenue for the three months ended June 30, 2026 increased from the prior-year quarter to $2.7 billion, reflecting:
Current wording
•Revenue for the three months ended September 30, 2026 increased from the prior-year quarter to $2.3 billion, reflecting:
Previous wording
◦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 wording
◦Trust, Investment and Other Servicing Fees increased to $1.4 billion in the current quarter primarily due to favorable markets.
Previous 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.
Current wording
◦Other Noninterest Income increased to $250.0 million in the current quarter primarily due to higher Other Operating Income, mainly driven by a gain of $34.0 million on the guardianship business sale and a gain of $14.7 million related to the second Visa Exchange Offer, 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.
Previous 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.
Current wording
•In the current quarter, there was a Provision for Credit Losses of $5.4 million, as compared to a negative Provision for Credit Losses of $17.0 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
•Revenue for the six months ended June 30, 2026 increased from the prior-year period to $4.9 billion, reflecting:
Current wording
•Revenue for the nine months ended September 30, 2026 increased from the prior-year period to $7.2 billion, reflecting:
Previous 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.
Current wording
◦Trust, Investment and Other Servicing Fees increased to $4.1 billion in the current year primarily due to favorable markets, net new business, and favorable currency movement.
Previous wording
◦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 wording
◦Other Noninterest Income increased to $1.1 billion in the current year primarily due to higher Other Operating Income, mainly driven by a $540.1 million gain related to Northern Trust’s participation in the second Visa Exchange Offer and a $34.0 million gain on the guardianship business sale, 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, recognized in Investment Security Gains (Losses), net.
Previous 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.
Current wording
◦Net Interest Income increased to $2.0 billion in the current year primarily driven by higher deposits and lower funding costs, partially offset by lower yields on interest-earning assets.
Previous wording
•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 wording
•Noninterest Expense increased to $4.6 billion in the current year primarily due to increases in Equipment and Software expense and Compensation and Benefits expense. The current-year period includes 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.
Previous wording
•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 wording
•In the current year, there was a negative Provision for Credit Losses of $3.0 million, as compared to a Provision for Credit Losses of $0.5 million in the prior-year period. For additional information, refer to the Provision for Credit Losses within the “Consolidated Results of Operations” section.
Previous 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.
Current wording
Custody and Fund Administration fees increased from the prior-year quarter primarily driven by favorable markets. Custody and Fund Administration fees increased from the prior-year period primarily driven by favorable markets, net new business and favorable currency movement.
Previous 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.
Current wording
Investment Management fees increased from the prior-year quarter primarily due to favorable markets. Investment Management fees increased from the prior-year period primarily due to favorable markets and net client inflows.
Previous wording
Wealth Management fees are 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 are impacted by both one-month and one-quarter lagged asset values.
Previous wording
Global Family Office fee income increased from the prior-year period primarily due to favorable markets and client inflows.
Current wording
Global Family Office fee income increased from the prior-year quarter and 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 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
Current wording
Total assets under custody/administration and assets under custody increased from the prior-year quarter, primarily driven by favorable markets and net client inflows.
Previous wording
Total assets under management increased compared to the prior quarter and the prior-year quarter primarily reflecting favorable markets and net client inflows.
Current wording
Total assets under management increased compared to the prior-year quarter primarily reflecting favorable markets and net client inflows.
Previous 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.
Current wording
For the three and nine months ended September 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, and the favorable impact from lower foreign exchange swap activity executed by our Treasury department.
Previous 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.
Current wording
For the three and nine months ended September 30, 2026, Security Commissions and Trading Income increased compared to the prior-year quarter and prior-year period primarily driven by higher volumes due to growth in outsourced trading activity.
Previous wording
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 wording
For the nine months ended September 30, 2026, Investment Security Gains (Losses), net reflects a $73.9 million loss on the sale of available for sale debt securities related to a repositioning of the securities portfolio.
Previous 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.
Current wording
(3)Includes the impact of balance sheet netting under master netting arrangements of approximately $69.0 billion and $62.7 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 3.72% 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.
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 3.76% and 4.41% in 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 3.65% 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 wording
(7) Excluding the impact of netting, the average interest rate on Securities Sold under Agreements to Repurchase would be approximately 3.69% and 4.37% in 2026 and 2025, respectively.
Previous 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.
Current wording
Net Interest Income for the three months ended September 30, 2026, stated on an FTE basis, increased from the prior-year quarter, primarily driven by higher deposits, a favorable deposit mix, and lower funding costs.
Previous 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 decreased 9%, from the prior-year quarter, primarily driven by strategic purchases in the securities portfolio.
Current wording
Interest-earning deposits include 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 quarter, primarily driven by higher client deposits.
Previous 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).
Current wording
Average Securities increased 14% from the prior-year quarter, reflecting higher deposits and strategic purchases of investment securities, primarily in the AFS portfolio. Average taxable Securities were $54.7 billion in the current quarter and $46.9 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 $7.9 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 $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).
Current wording
Average Loans increased 1% compared to the prior-year quarter, driven by an increase in Subscription Finance loans and short-term advances, primarily related to the processing of custodied client investments, partially offset by a decrease in Fund Finance loans, Commercial and Institutional loans, and Private Client 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 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 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 $1.3 billion, $959.4 million, $342.7 million, $110.0 million, and $69.1 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
Previous 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.
Current wording
Average Interest-Bearing Deposits increased 5% 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% of total average Interest-Bearing Deposits for both the three months ended September 30, 2026 and 2025.
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, 2026.
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, 2026 and nine months ended September 30, 2025.
Previous wording
(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 wording
(3)Includes the impact of balance sheet netting under master netting arrangements of approximately $80.3 billion and $62.2 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
(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.
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.
Previous wording
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 wording
Net Interest Income for the nine months ended September 30, 2026, stated on an FTE basis, increased from the prior-year period, primarily driven by higher deposits and lower funding costs, partially offset by lower yields on interest-earning assets.
Previous wording
The net interest margin on an FTE basis increased from the prior-year quarter, primarily driven by lower funding costs.
Current wording
The net interest margin on an FTE basis increased from the prior-year period, primarily driven by higher deposits and lower funding costs, partially offset by lower yields on interest-earning assets.
Previous 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.
Current wording
Interest-earning deposits include 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 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 wording
Average Securities increased 15% from the prior-year period reflecting higher deposits and strategic purchases of investment securities primarily in the AFS portfolio. Average taxable Securities were $53.2 billion in the current period and $45.0 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 $8.0 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).
Previous wording
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 wording
Average Loans were relatively flat compared with the prior-year period primarily due to an increase in Subscription Finance loans and short-term advances, primarily related to the processing of custodied client investments, partially offset by a decrease in Commercial and Institutional loans and Fund Finance loans.
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 $1.8 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.
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 $1.6 billion, $986.7 million, $342.7 million, $99.0 million, and $69.1 million, respectively, which are recorded in Other Assets on the consolidated balance sheets.
Showing the first 40 of 77 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
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 3.75% and 4.44% in 2026 and 2025, respectively.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•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.
Previous report — wording carried elsewhere
(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.