Loans

3 Months Ended

Mar. 31, 2025

Amounts outstanding for Loans, by segment and class, are shown in the following table.

TABLE 41: LOANS


(In Millions)	MARCH 31, 2025		DECEMBER 31, 2024
Commercial
Commercial and Institutional(1)	$	10,540.6	$	10,537.1
Commercial Real Estate	5,319.1		5,314.2
Non-U.S.(1)	2,180.2		2,113.9

Other	1,442.6		2,313.6
Total Commercial	19,482.5		20,278.8
Personal
Private Client	14,319.2		15,848.8
Residential Real Estate	6,113.0		6,109.9
Non-U.S.	525.3		674.7
Other	393.3		478.4
Total Personal	21,350.8		23,111.8
Total Loans	$	40,833.3	$	43,390.6

(1) Commercial and institutional and commercial-non-U.S. combined include $3.9 billion and $4.1 billion of private equity capital call finance loans at March 31, 2025 and December 31, 2024, respectively.

Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest-only with variable interest rates. In general, Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of March 31, 2025 and December 31, 2024, equity credit lines totaled $260.6 million and $250.3 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 98% and 97% of the total equity credit lines, respectively.

Included within the other commercial, non-U.S.commercial, and other personal classes are short duration advances, primarily related to the processing of custodied client investments, totaling $2.9 billion and $3.8 billion at March 31, 2025 and December 31, 2024, respectively. Demand deposit overdrafts reclassified as loan balances, primarily in other personal, totaled $21.5 million and $47.6 million as of March 31, 2025 and December 31, 2024, respectively. Loans classified as held for sale are recorded at the lower of cost or fair value. There were no loans classified as held for sale as of March 31, 2025 and December 31, 2024. There were no loans sold for the three months ended March 31, 2025 and March 31, 2024.

Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans. Northern Trust uses a variety of credit quality indicators to assess the credit risk of loans at the segment, class, and individual credit exposure levels.

As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting and management reporting. Risk ratings are used for ranking the credit risk of borrowers and their probability of default. Each borrower is rated using one of a number of ratings models, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower ratings models, by loan class.

•Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels;

•Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support;

•Other Commercial: leverage, profit margin, liquidity, asset size and capital levels;

•Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels;

•Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio;

•Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and

•Other Personal: cash-flow-to-debt and net worth ratios.

While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually.

Loan segment and class balances as of March 31, 2025 and December 31, 2024 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list, defaulted, and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.

TABLE 42: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR


March 31, 2025	TERM LOANS												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2025		2024		2023		2022		2021		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	49.7	$	452.8	$	216.9	$	350.8	$	411.4	$	365.6	$	4,716.5	$	26.2	$	6,589.9
4 to 5 Category	55.8		791.4		469.0		353.1		331.6		167.4		1,333.4		53.6		3,555.3
6 to 9 Category	10.0		46.9		90.6		59.8		62.3		8.3		107.6		9.9		395.4
Total Commercial and Institutional	115.5		1,291.1		776.5		763.7		805.3		541.3		6,157.5		89.7		10,540.6
C&I Gross Charge-offs	—		—		—		—		—		(0.2)		—		—		(0.2)
Commercial Real Estate
Risk Rating:
1 to 3 Category	41.8		119.3		204.2		211.1		76.9		61.9		24.0		14.0		753.2
4 to 5 Category	76.8		726.1		1,581.2		972.6		529.4		285.9		205.3		5.2		4,382.5
6 to 9 Category	—		1.5		—		171.3		6.0		4.6		—		—		183.4
Total Commercial Real Estate	118.6		846.9		1,785.4		1,355.0		612.3		352.4		229.3		19.2		5,319.1
Commercial Real Estate Gross Charge-offs	—		—		—		(0.1)		—		—		—		—		(0.1)
Non-U.S.
Risk Rating:
1 to 3 Category	687.8		78.8		—		—		—		110.9		617.4		—		1,494.9
4 to 5 Category	405.8		73.9		73.9		0.8		—		52.8		64.2		—		671.4
6 to 9 Category	0.5		—		—		13.4		—		—		—		—		13.9
Total Non-U.S.	1,094.1		152.7		73.9		14.2		—		163.7		681.6		—		2,180.2







Other
Risk Rating:
1 to 3 Category	793.3		—		—		—		—		—		—		—		793.3
4 to 5 Category	649.3		—		—		—		—		—		—		—		649.3
6 to 9 Category	—		—		—		—		—		—		—		—		—
Total Other	1,442.6		—		—		—		—		—		—		—		1,442.6

Total Commercial	2,770.8		2,290.7		2,635.8		2,132.9		1,417.6		1,057.4		7,068.4		108.9		19,482.5
Commercial Gross Charge-offs	—		—		—		(0.1)		—		(0.2)		—		—		(0.3)
Personal
Private Client
Risk Rating:
1 to 3 Category	6.7		249.1		91.7		114.5		46.6		33.8		5,597.6		93.8		6,233.8
4 to 5 Category	37.9		553.7		541.3		305.2		179.2		292.2		5,599.1		529.0		8,037.6
6 to 9 Category	—		0.2		15.8		—		—		—		31.8		—		47.8
Total Private Client	44.6		803.0		648.8		419.7		225.8		326.0		11,228.5		622.8		14,319.2
Private Client Gross Charge-offs	—		—		—		—		—		—		—		—		—
Residential Real Estate
Risk Rating:
1 to 3 Category	101.7		179.1		147.6		372.6		364.1		1,064.7		174.6		—		2,404.4
4 to 5 Category	29.7		240.1		268.4		672.6		702.7		1,504.3		217.5		2.1		3,637.4
6 to 9 Category	—		—		—		6.7		3.9		33.3		27.3		—		71.2
Total Residential Real Estate	131.4		419.2		416.0		1,051.9		1,070.7		2,602.3		419.4		2.1		6,113.0

Non-U.S.
Risk Rating:
1 to 3 Category	—		3.2		0.9		—		—		15.9		131.6		—		151.6
4 to 5 Category	—		19.1		15.9		15.0		39.1		8.7		249.4		7.1		354.3
6 to 9 Category	—		7.8		—		—		—		11.6		—		—		19.4
Total Non-U.S.	—		30.1		16.8		15.0		39.1		36.2		381.0		7.1		525.3

Other
Risk Rating:
1 to 3 Category	294.9		—		—		—		—		—		—		—		294.9
4 to 5 Category	98.2		—		—		—		—		—		—		—		98.2
6 to 9 Category	0.2		—		—		—		—		—		—		—		0.2
Total Other	393.3		—		—		—		—		—		—		—		393.3

Total Personal	569.3		1,252.3		1,081.6		1,486.6		1,335.6		2,964.5		12,028.9		632.0		21,350.8
Personal Gross Charge-offs	—		—		—		—		—		—		—		—		—
Total Loans	$	3,340.1	$	3,543.0	$	3,717.4	$	3,619.5	$	2,753.2	$	4,021.9	$	19,097.3	$	740.9	$	40,833.3
Total Loans Gross Charge-offs	$	—	$	—	$	—	$	(0.1)	$	—	$	(0.2)	$	—	$	—	$	(0.3)


December 31, 2024	TERM LOANS												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2024		2023		2022		2021		2020		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	462.1	$	238.2	$	367.9	$	466.2	$	82.2	$	277.2	$	4,364.8	$	26.5	$	6,285.1
4 to 5 Category	708.3		506.4		392.5		428.3		82.3		144.2		1,585.1		59.7		3,906.8
6 to 9 Category	34.8		89.3		65.8		70.2		2.3		2.3		73.6		6.9		345.2
Total Commercial and Institutional	1,205.2		833.9		826.2		964.7		166.8		423.7		6,023.5		93.1		10,537.1
C&I Gross Charge-offs	—		(7.3)		(5.4)		—		—		—		—		—		(12.7)
Commercial Real Estate
Risk Rating:
1 to 3 Category	123.2		256.3		224.4		203.7		13.8		43.7		52.6		—		917.7
4 to 5 Category	610.1		1,574.2		1,070.4		424.8		173.2		174.4		198.0		5.2		4,230.3
6 to 9 Category	14.0		15.8		125.7		6.0		4.3		0.4		—		—		166.2
Total Commercial Real Estate	747.3		1,846.3		1,420.5		634.5		191.3		218.5		250.6		5.2		5,314.2
CRE Gross Charge-offs	—		—		(2.4)		—		—		—		—		—		(2.4)
Non-U.S.
Risk Rating:
1 to 3 Category	707.1		—		—		—		70.6		28.8		614.9		—		1,421.4
4 to 5 Category	480.5		83.9		0.8		25.0		—		27.9		59.9		—		678.0
6 to 9 Category	0.9		—		13.6		—		—		—		—		—		14.5
Total Non-U.S.	1,188.5		83.9		14.4		25.0		70.6		56.7		674.8		—		2,113.9
Other
Risk Rating:
1 to 3 Category	1,142.4		—		—		—		—		—		—		—		1,142.4
4 to 5 Category	1,171.2		—		—		—		—		—		—		—		1,171.2
Total Other	2,313.6		—		—		—		—		—		—		—		2,313.6
Other Gross Charge-offs	—		—		—		—		—		—		—		—		—
Total Commercial	5,454.6		2,764.1		2,261.1		1,624.2		428.7		698.9		6,948.9		98.3		20,278.8
Commercial Gross Charge-offs	—		(7.3)		(7.8)		—		—		—		—		—		(15.1)
Personal
Private Client
Risk Rating:
1 to 3 Category	251.3		33.9		84.4		37.9		7.9		44.6		6,993.2		93.3		7,546.5
4 to 5 Category	249.0		660.2		384.0		390.5		123.5		181.3		5,734.8		535.3		8,258.6
6 to 9 Category	—		16.1		—		—		—		—		27.6		—		43.7
Total Private Client	500.3		710.2		468.4		428.4		131.4		225.9		12,755.6		628.6		15,848.8
Residential Real Estate
Risk Rating:
1 to 3 Category	197.5		150.5		436.7		375.2		325.7		743.6		114.3		—		2,343.5
4 to 5 Category	212.7		263.6		647.2		706.0		652.1		938.1		270.2		2.1		3,692.0
6 to 9 Category	1.7		—		6.8		3.9		2.3		32.5		27.2		—		74.4
Total Residential Real Estate	411.9		414.1		1,090.7		1,085.1		980.1		1,714.2		411.7		2.1		6,109.9
RRE Gross Charge-offs	—		—		—		—		—		(0.1)		—		—		(0.1)
Non-U.S.
Risk Rating:
1 to 3 Category	3.3		1.0		—		—		—		6.0		369.6		—		379.9
4 to 5 Category	19.5		16.0		15.2		39.1		—		19.6		170.3		7.2		286.9
6 to 9 Category	7.8		—		—		—		—		0.1		—		—		7.9
Total Non-U.S.	30.6		17.0		15.2		39.1		—		25.7		539.9		7.2		674.7
Other
Risk Rating:
1 to 3 Category	168.5		—		—		—		—		—		—		—		168.5
4 to 5 Category	309.9		—		—		—		—		—		—		—		309.9
Total Other	478.4		—		—		—		—		—		—		—		478.4
Other Gross Charge-offs	—		—		—		—		—		(0.3)		—		—		(0.3)
Total Personal	1,421.2		1,141.3		1,574.3		1,552.6		1,111.5		1,965.8		13,707.2		637.9		23,111.8
Personal Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	(0.4)	$	—	$	—	$	(0.4)
Total Loans	6,875.8		3,905.4		3,835.4		3,176.8		1,540.2		2,664.7		20,656.1		736.2		43,390.6
Total Loans Gross Charge-Offs	$	—	$	(7.3)	$	(7.8)	$	—	$	—	$	(0.4)	$	—	$	—	$	(15.5)

Past Due Status. Past due status is based on the length of time from the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current.

The following table provides balances and delinquency status of accrual and nonaccrual loans by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of March 31, 2025 and December 31, 2024.

TABLE 43: DELINQUENCY STATUS


	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS
March 31, 2025
Commercial
Commercial and Institutional	$	10,468.5	$	20.3	$	17.5	$	0.4	$	10,506.7	$	33.9	$	10,540.6	$	15.1
Commercial Real Estate	5,290.6		4.5		14.3		4.1		5,313.5		5.6		5,319.1		5.6
Non-U.S.	2,179.7		—		—		—		2,179.7		0.5		2,180.2		—

Other	1,442.6		—		—		—		1,442.6		—		1,442.6		—
Total Commercial	19,381.4		24.8		31.8		4.5		19,442.5		40.0		19,482.5		20.7
Personal
Private Client	13,876.6		347.8		12.1		80.7		14,317.2		2.0		14,319.2		—
Residential Real Estate	6,058.8		19.9		2.9		0.3		6,081.9		31.1		6,113.0		26.2
Non-U.S.	459.5		0.8		65.0		—		525.3		—		525.3		—
Other	393.3		—		—		—		393.3		—		393.3		—
Total Personal	20,788.2		368.5		80.0		81.0		21,317.7		33.1		21,350.8		26.2
Total Loans	$	40,169.6	$	393.3	$	111.8	$	85.5	$	40,760.2	$	73.1	$	40,833.3	$	46.9
	Other Real Estate Owned										$	—
	Total Nonaccrual Assets										$	73.1


	ACCRUAL														NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS
December 31, 2024
Commercial
Commercial and Institutional	$	10,486.9	$	12.8	$	0.7	$	6.9	$	10,507.3	$	29.8	$	10,537.1	$	10.5
Commercial Real Estate	5,304.9		3.3		—		0.4		5,308.6		5.6		5,314.2		5.6
Non-U.S.	2,113.0		—		0.4		—		2,113.4		0.5		2,113.9		—
Other	2,313.6		—		—		—		2,313.6		—		2,313.6		—
Total Commercial	20,218.4		16.1		1.1		7.3		20,242.9		35.9		20,278.8		16.1
Personal
Private Client	15,677.6		87.7		15.2		66.0		15,846.5		2.3		15,848.8		0.7
Residential Real Estate	6,063.4		17.2		2.5		9.0		6,092.1		17.8		6,109.9		17.8
Non-U.S	673.1		1.6		—		—		674.7		—		674.7		—
Other	478.4		—		—		—		478.4		—		478.4		—
Total Personal	22,892.5		106.5		17.7		75.0		23,091.7		20.1		23,111.8		18.5
Total Loans	$	43,110.9	$	122.6	$	18.8	$	82.3	$	43,334.6	$	56.0	$	43,390.6	$	34.6
	Other Real Estate Owned										$	—
	Total Nonaccrual Assets										$	56.0

Interest income that would have been recorded for nonaccrual loans in accordance with their original terms was $0.6 million and $0.7 million for the three months ended March 31, 2025, and 2024 respectively.

Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of March 31, 2025 and December 31, 2024, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. Northern Trust had loans with a carrying value of $3.5 million for which formal foreclosure proceedings were in process as of March 31, 2025 and December 31, 2024.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Northern Trust may provide payment relief by modifying the terms of the original loans for borrowers experiencing financial difficulties. Loan modifications to borrowers experiencing financial difficulty involve primarily extensions of term, deferrals of principal and interest, interest rate concessions, and other modifications or a combination thereof. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms.

Loan modifications to borrowers experiencing financial difficulty involve deferral of principal and interest and totaled $13.8 million and $0.3 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

The effectiveness of Northern Trust’s modification efforts is measured by the loans’ respective past-due status under the modified terms as of the end of the period. As of March 31, 2025, there were no loans that were past due and modified in the previous 12 months. As of March 31, 2024, loans that were modified in the previous 12 months and 30-89 days past due totaled $0.5 million and 90 days or greater past due totaled $7.8 million. For the three months ended March 31, 2025, Northern Trust had no charge-offs related to modifications to borrowers experiencing financial difficulty that had been modified in the last 12 months. For the three months ended March 31, 2024, Northern Trust charged-off $8.2 million related to modifications to borrowers experiencing financial difficulty that had been modified in the last 12 months.

There were no undrawn loan commitments or standby letters of credit issued to financially distressed borrowers for which Northern Trust has modified the payment terms of the loans as of March 31, 2025 and December 31, 2024.