Loans

12 Months Ended

Dec. 31, 2025

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

TABLE 57: LOANS


	DECEMBER 31,
(In Millions)	2025		2024
Commercial
Commercial and Institutional(1)	$	9,995.0	$	10,537.1
Commercial Real Estate	5,272.2		5,314.2
Non-U.S.(1)	2,190.1		2,113.9
Other	2,973.7		2,313.6
Total Commercial	20,431.0		20,278.8
Personal
Private Client	14,550.4		15,848.8
Residential Real Estate	6,077.3		6,109.9
Non-U.S.	657.4		674.7
Other	232.2		478.4
Total Personal	21,517.3		23,111.8
Total Loans	$	41,948.3	$	43,390.6

(1) Commercial and institutional and commercial-non-U.S. combined include $4.1 billion of private equity related loans, which consists primarily of capital call facilities at both December 31, 2025 and 2024.

Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value ratio of 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. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2025 and 2024, equity credit lines totaled $294.0 million and $250.3 million, respectively. Equity credit lines for which first liens were held by Northern Trust represented 96% and 97% of the total equity credit lines as of December 31, 2025 and 2024, 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 $4.5 billion and $3.8 billion at December 31, 2025 and 2024, respectively. Demand deposit overdrafts reclassified as loan balances, primarily in the other personal class, totaled $12.0 million and $47.6 million at December 31, 2025 and 2024, respectively. There were $6.8 million in loans classified as held for sale as of December 31, 2025. There were no loans classified as held for sale as of December 31, 2024. Loans classified as held for sale are recorded at the lower of cost or fair value. There were $3.1 million in loans sold during the year ended December 31, 2025 and no loans sold during the year ended December 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 or subjective assessment tools, 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 rating models, by loan class:

•Commercial and Institutional: cash flow leverage, profit margin, liquidity, balance sheet leverage;

•Commercial Real Estate: debt service coverage, collateral coverage, debt yield, leasing status, guarantor support;

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

•Commercial - Other: cash flow leverage, profit margin, liquidity, balance sheet leverage, type of collateral, collateral coverage;

•Residential Real Estate: payment history, credit bureau scores, collateral coverage;

•Private Client: cash-flow-to-debt and net worth ratios, leverage, type of collateral, collateral coverage; and

•Personal - Other: debt to income metrics, income amounts, sources of income, type of collateral, collateral coverage.

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.

Loans in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down-cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss. Loans in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have fewer financial resources to manage through economic downturns. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss. Loans in the “6 to 9” category have elevated credit risk profiles that are monitored through internal watch lists. Borrowers associated with these risk profiles may have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse economic cycles. As a result of these characteristics, these credits, which include all nonaccrual credits, have elevated risk of default or are currently in default.

Loan segment and class balances as of December 31, 2025 and 2024 are provided in the following tables, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (Watch List, including accrual 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 58: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR


DECEMBER 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 (C&I)
Risk Rating:
1 to 3 Category	$	340.7	$	425.1	$	87.8	$	220.3	$	111.9	$	149.5	$	4,294.6	$	57.6	$	5,687.5
4 to 5 Category	528.0		661.5		354.3		263.7		218.9		116.6		1,844.1		35.7		4,022.8
6 to 9 Category	88.7		19.9		50.3		33.4		21.9		2.7		57.5		10.3		284.7
Total C&I	957.4		1,106.5		492.4		517.4		352.7		268.8		6,196.2		103.6		9,995.0
C&I Gross Charge-offs	—		—		—		—		—		(1.4)		—		—		(1.4)
Commercial Real Estate (CRE)
Risk Rating:
1 to 3 Category	118.5		98.7		80.8		52.6		157.3		20.8		37.9		—		566.6
4 to 5 Category	946.7		654.8		1,325.1		831.4		404.3		198.7		195.1		22.9		4,579.0
6 to 9 Category	71.9		2.0		6.8		45.5		—		0.4		—		—		126.6
Total CRE	1,137.1		755.5		1,412.7		929.5		561.6		219.9		233.0		22.9		5,272.2
CRE Gross Charge-offs	—		—		—		(2.1)		—		—		—		—		(2.1)
Non-U.S.
Risk Rating:
1 to 3 Category	696.5		119.2		15.4		—		—		112.5		258.6		—		1,202.2
4 to 5 Category	634.3		18.6		16.1		—		—		173.6		131.5		—		974.1
6 to 9 Category	1.0		—		—		12.8		—		—		—		—		13.8
Total Non-U.S.	1,331.8		137.8		31.5		12.8		—		286.1		390.1		—		2,190.1




Other
Risk Rating:
1 to 3 Category	1,730.0		—		—		—		—		—		—		—		1,730.0
4 to 5 Category	1,243.7		—		—		—		—		—		—		—		1,243.7
Total Other	2,973.7		—		—		—		—		—		—		—		2,973.7

Total Commercial	6,400.0		1,999.8		1,936.6		1,459.7		914.3		774.8		6,819.3		126.5		20,431.0
Commercial Gross Charge-offs	—		—		—		(2.1)		—		(1.4)		—		—		(3.5)
Personal
Private Client
Risk Rating:
1 to 3 Category	144.9		130.7		133.0		58.7		46.6		33.3		5,588.1		38.7		6,174.0
4 to 5 Category	400.2		566.3		128.9		313.5		151.0		181.3		6,070.8		540.5		8,352.5
6 to 9 Category	—		—		15.2		—		—		—		8.7		—		23.9
Total Private Client	545.1		697.0		277.1		372.2		197.6		214.6		11,667.6		579.2		14,550.4
Private Client Gross Charge-offs	—		—		—		—		—		(0.1)		—		—		(0.1)
Residential Real Estate (RRE)
Risk Rating:
1 to 3 Category	357.1		138.8		131.9		343.3		334.6		993.1		232.3		—		2,531.1
4 to 5 Category	250.8		264.2		232.0		567.5		635.8		1,306.3		194.4		1.9		3,452.9
6 to 9 Category	1.0		—		0.9		8.1		31.3		31.5		20.5		—		93.3
Total RRE	608.9		403.0		364.8		918.9		1,001.7		2,330.9		447.2		1.9		6,077.3
RRE Gross Charge-offs	—		—		—		—		—		(0.1)		—		—		(0.1)
Non-U.S.
Risk Rating:
1 to 3 Category	5.1		—		—		—		0.6		11.4		224.7		—		241.8
4 to 5 Category	29.1		14.6		12.8		8.8		22.8		9.6		280.2		7.4		385.3
6 to 9 Category	22.6		7.6		—		—		—		0.1		—		—		30.3
Total Non-U.S.	56.8		22.2		12.8		8.8		23.4		21.1		504.9		7.4		657.4
Other
Risk Rating:
1 to 3 Category	86.0		—		—		—		—		—		—		—		86.0
4 to 5 Category	146.2		—		—		—		—		—		—		—		146.2
Total Other	232.2		—		—		—		—		—		—		—		232.2
Other Gross Charge-offs	(0.2)		—		—		—		—		—		—		—		(0.2)
Total Personal	1,443.0		1,122.2		654.7		1,299.9		1,222.7		2,566.6		12,619.7		588.5		21,517.3
Personal Gross Charge-offs	(0.2)		—		—		—		—		(0.2)		—		—		(0.4)
Total Loans	$	7,843.0	$	3,122.0	$	2,591.3	$	2,759.6	$	2,137.0	$	3,341.4	$	19,439.0	$	715.0	$	41,948.3
Total Loans Gross Charge-offs	$	(0.2)	$	—	$	—	$	(2.1)	$	—	$	(1.6)	$	—	$	—	$	(3.9)


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 (C&I)
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 C&I	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)
CRE
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 CRE	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

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
RRE
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 RRE	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 of December 31, 2025 and 2024.

TABLE 59: 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
December 31, 2025
Commercial
Commercial and Institutional	$	9,865.0	$	80.2	$	0.8	$	9.3	$	9,955.3	$	39.7	$	9,995.0	$	21.3
Commercial Real Estate	5,222.1		37.3		3.6		9.2		5,272.2		—		5,272.2		—
Non-U.S.	2,189.5		—		—		—		2,189.5		0.6		2,190.1		—

Other	2,973.7		—		—		—		2,973.7		—		2,973.7		—
Total Commercial	20,250.3		117.5		4.4		18.5		20,390.7		40.3		20,431.0		21.3
Personal
Private Client	14,403.3		128.8		8.5		3.1		14,543.7		6.7		14,550.4		—
Residential Real Estate	6,007.0		11.7		25.5		3.4		6,047.6		29.7		6,077.3		26.9
Non-U.S.	657.4		—		—		—		657.4		—		657.4		—
Other	232.2		—		—		—		232.2		—		232.2		—
Total Personal	21,299.9		140.5		34.0		6.5		21,480.9		36.4		21,517.3		26.9
Total Loans	$	41,550.2	$	258.0	$	38.4	$	25.0	$	41,871.6	$	76.7	$	41,948.3	$	48.2


	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

Interest income that would have been recorded for nonaccrual loans in accordance with their original terms was $4.1 million in 2025, $2.1 million in 2024, and $3.4 million in 2023.

Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of December 31, 2025 and 2024, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. As of December 31, 2025 and 2024, Northern Trust had loans with a carrying value of $7.9 million and $3.5 million, respectively, for which formal foreclosure proceedings were in process.

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 extension of term, deferrals of principal and interest, interest rate concessions, and other modifications or a combination thereof and totaled $51.3 million, $7.2 million and $40.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Northern Trust considers payment deferrals of less than 90 days as insignificant, absent any material modifications to other loan terms.

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 December 31, 2025, of loans that were modified in the previous 12 months, there were no loans 30-89 days past due and $18.4 million 90 days and greater past due in accordance with their modified terms. As of December 31, 2024, of the loans that were modified in the previous 12 months, there were no loans 30-89 days past due and $1.3 million 90 days and greater past due in accordance with their modified terms. As of December 31, 2023, of the loans that were modified in the previous 12 months, there were $4.7 million 30-89 days past due and $16.2 million 90 days and greater past due in accordance with their modified terms. All modification to borrowers experiencing financial difficulty continue to be reported as non-accrual loans until the requirements for returning to performing status are met. Northern Trust charged off $2.0 million, $8.5 million and $2.0 million for the years ended December 31, 2025, 2024 and 2023, respectively, related to loan modifications to borrowers experiencing financial difficulty.

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