XML 46 R34.htm IDEA: XBRL DOCUMENT v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following table presents the fair values of Northern Trust’s Level 3 liabilities as of March 31, 2026 and December 31, 2025, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates.
TABLE 30: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS
MARCH 31, 2026
FINANCIAL INSTRUMENTFAIR VALUEVALUATION TECHNIQUEUNOBSERVABLE INPUTSINPUT VALUES
WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares$22.4 millionDiscounted Cash FlowConversion Rate1.51x1.51x
Visa Class A Appreciation10.63%10.63%
Expected Duration11-23 months20 months
(1) Weighted average of expected duration based on scenario probability.
DECEMBER 31, 2025
FINANCIAL INSTRUMENTFAIR VALUEVALUATION TECHNIQUEUNOBSERVABLE INPUTSINPUT VALUES
WEIGHTED-AVERAGE INPUT VALUES(1)
Swaps Related to Sale of Certain Visa Class B Common Shares$29.7 millionDiscounted Cash FlowConversion Rate1.51x1.51x
Visa Class A Appreciation9.69%9.69%
Expected Duration14-26 months23 months
(1) Weighted average of expected duration based on scenario probability.
The following table presents the fair values of Northern Trust’s Level 3 assets that were adjusted to fair value on a nonrecurring basis during the three months ended March 31, 2026 and year ended December 31, 2025, as well as the valuation technique, significant unobservable inputs and quantitative information used to develop the significant unobservable inputs for such assets as of such dates.
TABLE 33: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS
MARCH 31, 2026
FINANCIAL INSTRUMENT
FAIR VALUE(1)
VALUATION TECHNIQUEUNOBSERVABLE INPUTSINPUT VALUESWEIGHTED-AVERAGE INPUT VALUES
Loans$1.3 millionMarket Approach
Discount factor applied to real estate collateral-dependent loans to reflect realizable value
25.0%25.0%
(1) Includes a real estate collateral-dependant loan.
DECEMBER 31, 2025
FINANCIAL INSTRUMENT
FAIR VALUE(1)
VALUATION TECHNIQUEUNOBSERVABLE INPUTSINPUT VALUESWEIGHTED-AVERAGE INPUT VALUES
Loans$1.3 millionMarket Approach
Discount factor applied to real estate collateral-dependent loans to reflect realizable value
40.0%40.0%
(1) Includes a real estate collateral-dependent loan.
Schedule of Recurring Basis Hierarchy Leveling
The following table presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, segregated by fair value hierarchy level.
TABLE 31: RECURRING BASIS HIERARCHY LEVELING
MARCH 31, 2026
(In Millions)LEVEL 1LEVEL 2LEVEL 3NETTINGASSETS/LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Governments$7,971.9 $— $— $— $7,971.9 
Obligations of States and Political Subdivisions— 311.9 — — 311.9 
Government Sponsored Agency— 18,529.1 — — 18,529.1 
Non-U.S. Government— 311.6 — — 311.6 
Corporate Debt— 66.1 — — 66.1 
Covered Bonds— 275.0 — — 275.0 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds— 5,014.7 — — 5,014.7 
CLOs— 3,293.4 — — 3,293.4 
Other Asset-Backed— 703.4 — — 703.4 
Commercial Mortgage-Backed— 436.1 — — 436.1 
Total Available for Sale Debt Securities7,971.9 28,941.3 — — 36,913.2 
Other Assets
Equity Securities(1)
85.0 74.0 — — 159.0 
Derivative Assets
Foreign Exchange Contracts— 3,753.7 — (2,088.5)1,665.2 
Interest Rate Contracts— 104.0 — (91.3)12.7 
Total Derivative Assets— 3,857.7 — (2,179.8)1,677.9 
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts— 3,639.4 — (2,753.8)885.6 
Interest Rate Contracts— 130.4 — (3.6)126.8 
Other Financial Derivatives(2)
— 1.3 22.4 — 23.7 
Total Derivative Liabilities$— $3,771.1 $22.4 $(2,757.4)$1,036.1 
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of March 31, 2026, derivative assets and liabilities shown above also include reductions of $245.4 million and $823.0 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment, seed capital investments to certain funds managed by Northern Trust, and Visa Class C common shares with a fair value of $85.0 million,$61.1 million, and $12.9 million, respectively, as of March 31, 2026.
(2) Other Financial Derivatives liabilities consists of swaps related to the sale of certain Visa Class B common shares and total return swap contracts.
DECEMBER 31, 2025
(In Millions)LEVEL 1LEVEL 2LEVEL 3NETTINGASSETS/LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Governments$8,172.4 $— $— $— $8,172.4 
Obligations of States and Political Subdivisions— 313.1 — — 313.1 
Government Sponsored Agency— 16,567.5 — — 16,567.5 
Non-U.S. Government— 527.2 — — 527.2 
Corporate Debt— 64.4 — — 64.4 
Covered Bonds— 273.5 — — 273.5 
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds— 4,984.3 — — 4,984.3 
CLOs— 2,154.9 — — 2,154.9 
Other Asset-Backed— 570.2 — — 570.2 
Commercial Mortgage-Backed— 409.0 — — 409.0 
Total Available for Sale Debt Securities8,172.4 25,864.1 — — 34,036.5 
Other Assets
Equity Securities(1)
85.0127.4 — — 212.4
Derivative Assets
Foreign Exchange Contracts— 1,988.8 — (1,696.1)292.7 
Interest Rate Contracts— 104.8 — (82.4)22.4 
Other Financial Derivatives(2)
— 0.7 — (0.7)— 
Total Derivative Assets— 2,094.3 — (1,779.2)315.1 
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts— 2,247.9 — (1,139.4)1,108.5 
Interest Rate Contracts— 130.4 — (5.0)125.4 
Other Financial Derivatives(3)
— 1.6 29.7 (31.3)— 
Total Derivative Liabilities$— $2,379.9 $29.7 $(1,175.7)$1,233.9 
Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2025, derivative assets and liabilities shown above also include reductions of $1.2 billion and $550.6 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.
(1) Equity securities consists of a money market investment, seed capital investments to certain funds managed by Northern Trust, and Visa Class C common shares with a fair value of $85.0 million and $112.5 million, and $14.9 million, respectively, as of December 31, 2025.
(2) Other Financial Derivatives assets consists of total return swap contracts.
(3) Other Financial Derivatives liabilities consists of swaps related to the sale of certain Visa Class B common shares and total return swap contracts.
Schedule of Changes in Level 3 Liabilities
The following table presents the changes in Level 3 liabilities for the three months ended March 31, 2026 and 2025.
TABLE 32: CHANGES IN LEVEL 3 LIABILITIES
(In Millions)SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
THREE MONTHS ENDED MARCH 31,20262025
Fair Value at January 1
$29.7 $27.2 
Total Losses:
Included in Earnings(1)
(2.8)5.6 
Purchases, Issues, Sales, and Settlements
Settlements(4.5)(3.3)
Fair Value at March 31
$22.4 $29.5 
(1) Losses are recorded in Other Operating Income on the consolidated statements of income.
Schedule of Fair Value of Financial Instruments
The following tables present the carrying value and estimated fair value, including the fair value hierarchy level, of Northern Trust’s financial instruments that are not measured at fair value on the consolidated balance sheets as of March 31, 2026 and December 31, 2025. The following tables exclude those items measured at fair value on a recurring basis.
TABLE 34: FAIR VALUE OF FINANCIAL INSTRUMENTS
MARCH 31, 2026
  ESTIMATED FAIR VALUE
(In Millions)BOOK VALUETOTAL ESTIMATED FAIR VALUELEVEL 1LEVEL 2LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks$5,816.0 $5,816.0 $5,816.0 $— $— 
Federal Reserve and Other Central Bank Deposits41,836.1 41,836.1 — 41,836.1 — 
Interest-Bearing Deposits with Banks1,856.0 1,856.0 — 1,856.0 — 
Federal Funds Sold and Securities Purchased under Agreements to Resell1,678.9 1,678.9 — 1,678.9 — 
Debt Securities - Held to Maturity24,286.2 23,138.0 — 23,138.0 — 
Loans
Held for Investment42,334.4 51,320.7 — — 51,320.7 
Held for Sale10.0 10.0 — 10.0 — 
Other Assets1,654.2 1,650.2 91.5 1,558.7 — 
FINANCIAL LIABILITIES
Deposits139,698.2 139,733.9 — 139,733.9 — 
Federal Funds Purchased1,974.3 1,974.3 — 1,974.3 — 
Securities Sold Under Agreements to Repurchase330.5 330.5 — 330.5 — 
Other Borrowings7,839.5 7,858.2 — 7,858.2 — 
Senior Notes3,345.5 3,386.9 — 3,386.9 — 
Long-Term Debt2,881.6 2,947.3 — 2,947.3 — 
Unfunded Commitments364.9 364.9 — 364.9 — 
Other Liabilities39.7 39.7 — — 39.7 
    
DECEMBER 31, 2025
  ESTIMATED FAIR VALUE
(In Millions)BOOK VALUETOTAL ESTIMATED FAIR VALUELEVEL 1LEVEL 2LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks$5,873.1 $5,873.1 $5,873.1 $— $— 
Federal Reserve and Other Central Bank Deposits53,524.9 53,524.9 — 53,524.9 — 
Interest-Bearing Deposits with Banks1,729.4 1,729.4 — 1,729.4 — 
Federal Funds Sold and Securities Purchased under Agreements to Resell2,654.1 2,654.1 — 2,654.1 — 
Debt Securities - Held to Maturity23,429.6 22,381.2 — 22,381.2 — 
Loans
Held for Investment41,777.1 41,661.2 — — 41,661.2 
Held for Sale6.8 6.8 — 6.8 — 
Other Assets1,668.6 1,664.8 86.3 1,578.5 — 
FINANCIAL LIABILITIES
Deposits142,797.7 142,348.6 — 142,348.6 — 
Federal Funds Purchased2,141.1 2,141.1 — 2,141.1 — 
Securities Sold Under Agreements to Repurchase292.2 292.2 — 292.2 — 
Other Borrowings7,158.3 7,185.5 — 7,185.5 — 
Senior Notes3,351.5 3,405.5 — 3,405.5 — 
Long-Term Debt3,484.4 3,596.8 — 3,596.8 — 
Unfunded Commitments373.0 373.0 — 373.0 — 
Other Liabilities37.9 37.9 — — 37.9