XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Securities
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
The following tables provide the amortized cost, fair values, and remaining maturities of AFS debt securities and HTM debt securities by security type as of September 30, 2025 and December 31, 2024.
TABLE 37: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES
SEPTEMBER 30, 2025
(In Millions)AMORTIZED COSTGROSS UNREALIZED GAINSGROSS UNREALIZED LOSSESFAIR VALUE
Available for Sale Debt Securities
U.S. Government$8,147.9 $15.6 $8.5 $8,155.0 
Obligations of States and Political Subdivisions322.0 — 11.3 310.7 
Government Sponsored Agency16,505.3 35.6 99.4 16,441.5 
Non-U.S. Government321.9 0.7 7.3 315.3 
Corporate Debt107.7 — 0.8 106.9 
Covered Bonds274.0 0.6 1.8 272.8 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds4,989.6 23.5 26.4 4,986.7 
Other Asset-Backed1,807.0 7.7 4.5 1,810.2 
Commercial Mortgage-Backed498.9 — 8.8 490.1 
Total Available for Sale Debt Securities$32,974.3 $83.7 $168.8 $32,889.2 
Held to Maturity Debt Securities
Obligations of States and Political Subdivisions$2,476.0 $2.6 $16.9 $2,461.7 
Government Sponsored Agency8,512.4 7.4 795.9 7,723.9 
Non-U.S. Government3,405.6 0.3 35.1 3,370.8 
Corporate Debt407.2 — 6.0 401.2 
Covered Bonds1,543.4 0.2 46.2 1,497.4 
Certificates of Deposit912.0 0.1 0.2 911.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds5,047.4 3.3 82.2 4,968.5 
Commercial Mortgage-Backed37.6 — 1.0 36.6 
Other633.3 — 167.0 466.3 
Total Held to Maturity Debt Securities$22,974.9 $13.9 $1,150.5 $21,838.3 
Total Debt Securities$55,949.2 $97.6 $1,319.3 $54,727.5 
DECEMBER 31, 2024
(In Millions)AMORTIZED COSTGROSS UNREALIZED GAINSGROSS UNREALIZED LOSSESFAIR VALUE
Available for Sale Debt Securities
U.S. Government$7,388.9 $1.5 $22.9 $7,367.5 
Obligations of States and Political Subdivisions311.2 — 13.6 297.6 
Government Sponsored Agency13,410.5 10.9 132.5 13,288.9 
Non-U.S. Government308.9 0.2 12.3 296.8 
Corporate Debt166.6 0.1 2.9 163.8 
Covered Bonds234.0 0.5 3.6 230.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds4,617.0 8.3 42.2 4,583.1 
Other Asset-Backed2,188.6 7.0 12.9 2,182.7 
Commercial Mortgage-Backed603.4 0.3 13.5 590.2 
Total Available for Sale Debt Securities$29,229.1 $28.8 $256.4 $29,001.5 
Held to Maturity Debt Securities
Obligations of States and Political Subdivisions$2,548.2 $— $89.3 $2,458.9 
Government Sponsored Agency8,635.0 0.9 1,081.3 7,554.6 
Non-U.S. Government3,735.8 0.2 56.3 3,679.7 
Corporate Debt351.6 — 11.0 340.6 
Covered Bonds1,776.8 0.1 62.2 1,714.7 
Certificates of Deposit336.0 — 0.3 335.7 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds4,146.9 1.4 171.3 3,977.0 
Other Asset-Backed107.1 0.3 0.1 107.3 
Commercial Mortgage-Backed37.6 — 0.8 36.8 
Other621.7 — 172.5 449.2 
Total Held to Maturity Debt Securities$22,296.7 $2.9 $1,645.1 $20,654.5 
Total Debt Securities$51,525.8 $31.7 $1,901.5 $49,656.0 
TABLE 38: REMAINING MATURITY OF DEBT SECURITIES
SEPTEMBER 30, 2025ONE YEAR OR LESSONE TO FIVE YEARSFIVE TO TEN YEARSOVER TEN YEARSTOTAL
(In Millions)AMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUEAMORTIZED COSTFAIR VALUE
Available for Sale Debt Securities
U.S. Government$298.8 $298.9 $7,589.1 $7,596.2 $260.0 $259.9 $— $— $8,147.9 $8,155.0 
Obligations of States and Political Subdivisions— — 249.7 241.2 72.3 69.5 — — 322.0 310.7 
Government Sponsored Agency4,292.4 4,282.4 9,139.9 9,120.7 2,156.8 2,138.6 916.2 899.8 16,505.3 16,441.5 
Non-U.S. Government188.4 185.3 133.5 130.0 — — — — 321.9 315.3 
Corporate Debt86.3 85.6 21.4 21.3 — — — — 107.7 106.9 
Covered Bonds61.7 61.7 212.3 211.1 — — — — 274.0 272.8 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds858.3 854.0 3,829.4 3,839.2 301.9 293.5 — — 4,989.6 4,986.7 
Other Asset-Backed240.6 236.9 986.6 991.8 458.0 459.5 121.8 122.0 1,807.0 1,810.2 
Commercial Mortgage-Backed111.3 111.0 354.0 350.7 33.6 28.4 — — 498.9 490.1 
Total Available for Sale Debt Securities$6,137.8 $6,115.8 $22,515.9 $22,502.2 $3,282.6 $3,249.4 $1,038.0 $1,021.8 $32,974.3 $32,889.2 
Held to Maturity Debt Securities
Obligations of States and Political Subdivisions$177.5 $177.3 $1,428.5 $1,427.2 $810.4 $799.1 $59.6 $58.1 $2,476.0 $2,461.7 
Government Sponsored Agency881.4 807.8 4,155.7 3,841.5 2,052.0 1,835.0 1,423.3 1,239.6 8,512.4 7,723.9 
Non-U.S. Government1,943.9 1,939.4 1,461.7 1,431.4 — — — — 3,405.6 3,370.8 
Corporate Debt144.0 143.2 263.2 258.0 — — — — 407.2 401.2 
Covered Bonds444.5 443.0 1,011.4 967.2 87.5 87.2 — — 1,543.4 1,497.4 
Certificates of Deposit912.0 911.9 — — — — — — 912.0 911.9 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds2,093.0 2,073.5 2,948.4 2,889.9 6.0 5.1 — — 5,047.4 4,968.5 
Commercial Mortgage-Backed— — 37.6 36.6 — — — — 37.6 36.6 
Other60.4 58.9 341.2 313.4 44.5 34.9 187.2 59.1 633.3 466.3 
Total Held to Maturity Debt Securities$6,656.7 $6,555.0 $11,647.7 $11,165.2 $3,000.4 $2,761.3 $1,670.1 $1,356.8 $22,974.9 $21,838.3 
Total Debt Securities $12,794.5 $12,670.8 $34,163.6 $33,667.4 $6,283.0 $6,010.7 $2,708.1 $2,378.6 $55,949.2 $54,727.5 
Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments.
Credit Quality. AFS debt securities impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit-related include, but are not limited to, the severity of the impairment; the cause of the impairment; the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred.
There was a negative provision for credit losses for AFS securities of $0.9 million and $0.2 million for the three and nine months ended September 30, 2025, respectively. There was a negative provision for credit losses of $0.4 million and $1.0 million for AFS securities for the three and nine months ended September 30, 2024, respectively. There was no allowance for credit losses for AFS securities as of September 30, 2025. There was a $0.2 million allowance for credit losses for AFS securities as of December 31, 2024, which was related to corporate debt securities. The process for identifying credit losses for AFS securities is based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security. For additional information, please refer to Note 6, “Allowance for Credit Losses.”
The following table provides information regarding AFS debt securities with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of September 30, 2025 and December 31, 2024.
TABLE 39: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED
SEPTEMBER 30, 2025LESS THAN 12 MONTHS12 MONTHS OR LONGERTOTAL
(In Millions)FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES
U.S. Government$2,261.8 $1.6 $896.7 $6.9 $3,158.5 $8.5 
Obligations of States and Political Subdivisions— — 310.7 11.3 310.7 11.3 
Government Sponsored Agency2,012.4 6.7 6,540.1 92.7 8,552.5 99.4 
Non-U.S. Government — — 195.3 7.3 195.3 7.3 
Corporate Debt21.3 0.1 85.6 0.7 106.9 0.8 
Covered Bonds36.1 0.2 63.3 1.6 99.4 1.8 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds117.7 — 878.7 26.4 996.4 26.4 
Other Asset-Backed105.0 — 273.0 4.5 378.0 4.5 
Commercial Mortgage-Backed113.1 — 259.5 8.8 372.6 8.8 
Total$4,667.4 $8.6 $9,502.9 $160.2 $14,170.3 $168.8 
Note: There were no AFS securities with an allowance for credit losses reported as of September 30, 2025. Refer to the discussion further below and Note 6, “Allowance for Credit Losses” for further information.
DECEMBER 31, 2024LESS THAN 12 MONTHS12 MONTHS OR LONGERTOTAL
(In Millions)FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES		FAIR
VALUE		UNREALIZED
LOSSES
U.S. Government$4,477.5 $11.1 $532.3 $11.8 $5,009.8 $22.9 
Obligations of States and Political Subdivisions— — 297.5 13.6 297.5 13.6 
Government Sponsored Agency3,298.8 14.5 6,373.8 118.0 9,672.6 132.5 
Non-U.S. Government54.9 0.1 181.6 12.2 236.5 12.3 
Corporate Debt— — 76.9 1.6 76.9 1.6 
Covered Bonds— — 119.6 3.6 119.6 3.6 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds881.9 2.6 720.5 39.6 1,602.4 42.2 
Other Asset-Backed35.4 — 405.4 12.9 440.8 12.9 
Commercial Mortgage-Backed— — 376.1 13.5 376.1 13.5 
Total$8,748.5 $28.3 $9,083.7 $226.8 $17,832.2 $255.1 
Note: One corporate debt AFS security with a fair value of $38.9 million and unrealized losses of $1.3 million has been excluded from the table above as it has a $0.2 million allowance for credit losses reported as of December 31, 2024. Refer to the discussion further below and Note 6, “Allowance for Credit Losses” for further information.
As of September 30, 2025, 729 AFS debt securities with a combined fair value of $14.2 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $168.8 million. As of December 31, 2024, 767 AFS debt securities with a combined fair value of $17.8 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $255.1 million. Unrealized losses on AFS debt securities without an allowance for credit losses are primarily attributable to changes in market interest rates and credit spreads since their purchase.
The following table provides the amortized cost of HTM debt securities by credit ratings using ratings from Moody’s, S&P Global or Fitch Ratings. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security.
TABLE 40: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING
SEPTEMBER 30, 2025
($ In Millions)AAAAAABBBNOT RATEDTOTAL
Obligations of States and Political Subdivisions$1,002.6 $1,473.4 $— $— $— $2,476.0 
Government Sponsored Agency— 8,512.4 — — — 8,512.4 
Non-U.S. Government596.1 1,196.5 1,268.7 344.3 — 3,405.6 
Corporate Debt159.4 150.5 97.3 — — 407.2 
Covered Bonds1,290.2 253.2 — — — 1,543.4 
Certificates of Deposit— 861.3 — — 50.7 912.0 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds3,819.0 1,176.7 50.5 1.2 — 5,047.4 
Commercial Mortgage-Backed— 37.6 — — — 37.6 
Other53.3 — — — 580.0 633.3 
Total Held to Maturity$6,920.6 $13,661.6 $1,416.5 $345.5 $630.7 $22,974.9 
Percent of Total Held to Maturity30 %59 %6 %2 %3 %100 %

DECEMBER 31, 2024
($ In Millions)AAAAAABBBNOT RATEDTOTAL
Obligations of States and Political Subdivisions$1,024.3 $1,523.9 $— $— $— $2,548.2 
Government Sponsored Agency8,635.0 — — — — $8,635.0 
Non-U.S. Government700.0 704.2 2,020.1 311.5 — $3,735.8 
Corporate Debt— 191.5 160.1 — — $351.6 
Covered Bonds1,776.8 — — — — $1,776.8 
Certificates of Deposit316.6 — — — 19.4 $336.0 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds3,132.8 984.5 28.5 1.1 — $4,146.9 
Other Asset-Backed107.1 — — — — $107.1 
Commercial Mortgage-Backed37.6 — — — — $37.6 
Other50.7 — — — 571.0 $621.7 
Total Held to Maturity$15,780.9 $3,404.1 $2,208.7 $312.6 $590.4 $22,296.7 
Percent of Total Held to Maturity71 %15 %10 %1 %3 %100 %
Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 95% and 96% of the HTM portfolio at September 30, 2025 and December 31, 2024, respectively, comprised of securities rated A or higher. Moody's downgraded the long-term credit rating of the U.S. from Aaa to Aa1 in May 2025. As a result, government sponsored agency securities are now AA rated in the table dated September 30, 2025 above.
Investment Security Gains and Losses. There were no sales of debt securities and no net investment security gains (losses) for the three and nine months ended September 30, 2025.
There were no sales of debt securities and no net investment security gains (losses) for the three months ended September 30, 2024. Proceeds of $2.0 billion from the sale of debt securities resulted in an investment security loss of $189.3 million for the nine months ended September 30, 2024.
TABLE 41: INVESTMENT SECURITY GAINS AND LOSSES
THREE MONTHS ENDED SEPTEMBER 30,NINE MONTHS ENDED SEPTEMBER 30,
(In Millions)2025202420252024
Gross Realized Debt Securities Gains$— $— $— $185.2 
Gross Realized Debt Securities Losses— — — (374.5)
Investment Security Gains (Losses), net$— $— $— $(189.3)
TABLE 42: INVESTMENT SECURITY GAINS AND LOSSES BY SECURITY TYPE
THREE MONTHS ENDED SEPTEMBER 30,NINE MONTHS ENDED SEPTEMBER 30,
(In Millions)2025202420252024
U.S. Government$— $— $— $(34.8)
Obligations of States and Political Subdivisions— — — — 
Government Sponsored Agency— — — (23.0)
Corporate Debt— — — — 
Covered Bonds— — — (4.2)
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds— — — (48.2)
Other Asset-Backed— — — (56.5)
Commercial Mortgage-Backed— — — (22.6)
Investment Security Gains (Losses), net$— $— $— $(189.3)