Loans

6 Months Ended

Jun. 30, 2026

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

TABLE 43: LOANS


(In Millions)	JUNE 30, 2026		DECEMBER 31, 2025
Commercial(1)
Commercial and Institutional	$	6,776.0	$	6,595.3
Commercial Real Estate	5,316.2		5,272.2
Subscription Finance	4,187.8		3,603.4
Fund Finance	1,544.5		1,357.7
Other	3,538.8		3,602.4
Total Commercial	21,363.3		20,431.0
Personal(2)
Private Client	15,891.9		15,169.3
Residential Real Estate	6,050.5		6,121.0
Other	516.3		227.0
Total Personal	22,458.7		21,517.3
Total Loans	$	43,822.0	$	41,948.3

(1) Commercial loans include $2.8 billion and $2.2 billion of Non-U.S. exposure as of June 30, 2026, and December 31, 2025, respectively.

(2) Personal loans include $822.1 million and $657.4 million of Non-U.S. exposure as of June 30, 2026, and December 31, 2025, respectively.

As of January 1, 2026, Northern Trust refined the presentation of its commercial loan segment to enhance the alignment of segment reporting with business needs, risk characteristics, and management’s approach to monitoring and managing credit performance. As part of this refinement, Subscription Finance and Fund Finance were introduced as separate loan classes. Subscription Finance includes loans to private equity funds that are secured by investors’ contractual commitments to fund capital calls. Fund Finance includes loans and credit lines to all other collective investment funds and to investment managers primarily established for short-term liquidity needs. Fund Finance borrowers generally maintain highly diversified portfolios of liquid securities. Prior period disclosures have been revised to conform to the current period presentation.

Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value 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 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 June 30, 2026 and December 31, 2025, equity credit lines totaled $249.4 million and $294.0 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 98% and 96% of the total equity credit lines, respectively.

Short term advances, primarily related to the processing of custodied client investments, totaled $5.2 billion and $4.5 billion at June 30, 2026 and December 31, 2025, respectively. Demand deposit overdrafts reclassified as loan balances, primarily in the other personal class, totaled $7.5 million and $12.0 million as of June 30, 2026 and December 31, 2025, 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 June 30, 2026, compared with $6.8 million of loans classified as held for sale as of December 31, 2025. No loans were sold during the three months ended June 30, 2026, and $22.9 million of loans were sold during the six months ended June 30, 2026. There were no loans sold for the three and six months ended June 30, 2025.

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 PD. 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 ratings 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;

•Subscription Finance: leverage, return volatility, liquidity, asset quality, and capital levels;

•Fund Finance: leverage, return volatility, liquidity, asset quality, and capital levels;

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

Loan segment and class balances as of June 30, 2026 and December 31, 2025 are provided in the following table, 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 44: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR


June 30, 2026	TERM LOANS												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2026		2025		2024		2023		2022		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	105.6	$	381.0	$	379.6	$	68.3	$	43.2	$	165.2	$	1,156.7	$	57.2	$	2,356.8
4 to 5 Category	323.8		542.5		590.8		310.3		246.1		206.7		1,925.1		27.9		4,173.2
6 to 9 Category	—		40.2		34.1		44.3		29.3		3.3		80.0		14.8		246.0
Total Commercial and Institutional	429.4		963.7		1,004.5		422.9		318.6		375.2		3,161.8		99.9		6,776.0
C&I Gross Charge-offs	—		—		—		—		—		(0.4)		—		—		(0.4)
Commercial Real Estate
Risk Rating:
1 to 3 Category	80.8		198.5		83.0		52.5		36.5		138.3		14.3		—		603.9
4 to 5 Category	459.8		930.5		605.9		1,083.9		763.7		491.4		193.3		22.8		4,551.3
6 to 9 Category	—		71.9		31.7		15.1		38.2		4.1		—		—		161.0
Total Commercial Real Estate	540.6		1,200.9		720.6		1,151.5		838.4		633.8		207.6		22.8		5,316.2

Subscription Finance
Risk Rating:
1 to 3 Category	518.4		—		90.5		12.8		—		71.7		3,071.2		—		3,764.6
4 to 5 Category	11.2		1.8		—		26.3		—		—		381.8		—		421.1
6 to 9 Category	—		—		—		—		—		—		2.1		—		2.1
Total Subscription Finance	529.6		1.8		90.5		39.1		—		71.7		3,455.1		—		4,187.8

Fund Finance
Risk Rating:
1 to 3 Category	553.9		—		—		0.4		—		32.1		341.3		—		927.7
4 to 5 Category	379.2		8.5		—		—		—		—		229.1		—		616.8

Total Fund Finance	933.1		8.5		—		0.4		—		32.1		570.4		—		1,544.5


Other
Risk Rating:
1 to 3 Category	1,846.2		—		—		—		—		—		—		—		1,846.2
4 to 5 Category	1,543.1		—		—		—		—		146.3		—		—		1,689.4
6 to 9 Category	3.2		—		—		—		—		—		—		—		3.2
Total Other	3,392.5		—		—		—		—		146.3		—		—		3,538.8

Total Commercial	5,825.2		2,174.9		1,815.6		1,613.9		1,157.0		1,259.1		7,394.9		122.7		21,363.3
Commercial Gross Charge-offs	—		—		—		—		—		(0.4)		—		—		(0.4)
Personal
Private Client
Risk Rating:
1 to 3 Category	160.0		101.6		145.1		86.4		57.8		40.0		5,339.9		83.0		6,013.8
4 to 5 Category	212.7		521.8		462.3		129.8		267.5		194.4		7,537.0		459.7		9,785.2
6 to 9 Category	—		17.1		42.5		14.9		—		—		18.4		—		92.9
Total Private Client	372.7		640.5		649.9		231.1		325.3		234.4		12,895.3		542.7		15,891.9
Private Client Gross Charge-offs	—		—		—		(0.2)		—		—		—		—		(0.2)
Residential Real Estate
Risk Rating:
1 to 3 Category	178.2		356.6		194.7		172.8		527.7		1,719.1		221.7		—		3,370.8
4 to 5 Category	157.6		246.7		171.4		149.5		326.8		1,314.5		226.8		1.8		2,595.1
6 to 9 Category	—		1.0		—		—		8.7		62.7		12.2		—		84.6
Total Residential Real Estate	335.8		604.3		366.1		322.3		863.2		3,096.3		460.7		1.8		6,050.5


Other
Risk Rating:
1 to 3 Category	298.9		—		—		—		—		—		—		—		298.9
4 to 5 Category	217.4		—		—		—		—		—		—		—		217.4

Total Other	516.3		—		—		—		—		—		—		—		516.3

Total Personal	1,224.8		1,244.8		1,016.0		553.4		1,188.5		3,330.7		13,356.0		544.5		22,458.7
Personal Gross Charge-offs	—		—		—		(0.2)		—		—		—		—		(0.2)
Total Loans	$	7,050.0	$	3,419.7	$	2,831.6	$	2,167.3	$	2,345.5	$	4,589.8	$	20,750.9	$	667.2	$	43,822.0
Total Loans Gross Charge-offs	$	—	$	—	$	—	$	(0.2)	$	—	$	(0.4)	$	—	$	—	$	(0.6)


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
Risk Rating:
1 to 3 Category	$	276.9	$	425.1	$	87.8	$	205.4	$	111.8	$	149.5	$	1,205.7	$	57.6	$	2,519.8
4 to 5 Category	561.4		661.5		353.9		263.7		219.0		116.6		1,566.1		35.7		3,777.9
6 to 9 Category	88.8		19.9		50.3		46.2		21.9		2.7		57.5		10.3		297.6
Total Commercial and Institutional	927.1		1,106.5		492.0		515.3		352.7		268.8		2,829.3		103.6		6,595.3
C&I Gross Charge-offs	—		—		—		—		—		(1.4)		—		—		(1.4)
Commercial Real Estate
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 Commercial Real Estate	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)
Subscription Finance
Risk Rating:
1 to 3 Category	281.3		68.0		15.4		—		—		74.9		2,879.3		—		3,318.9
4 to 5 Category	—		—		16.1		—		—		—		268.4		—		284.5

Total Subscription Finance	281.3		68.0		31.5		—		—		74.9		3,147.7		—		3,603.4

Fund Finance
Risk Rating:
1 to 3 Category	322.6		—		—		14.9		—		37.6		443.7		—		818.8
4 to 5 Category	404.3		—		0.4		—		—		—		134.2		—		538.9

Total Fund Finance	726.9		—		0.4		14.9		—		37.6		577.9		—		1,357.7

Other
Risk Rating:
1 to 3 Category	1,886.3		51.2		—		—		—		—		24.4		—		1,961.9
4 to 5 Category	1,440.3		18.6		—		—		—		173.6		7.0		—		1,639.5
6 to 9 Category	1.0		—		—		—		—		—		—		—		1.0
Total Other	3,327.6		69.8		—		—		—		173.6		31.4		—		3,602.4

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	149.9		130.7		133.0		58.7		47.2		44.6		5,813.0		38.7		6,415.8
4 to 5 Category	429.2		581.0		141.7		313.5		151.0		184.2		6,350.9		547.9		8,699.4
6 to 9 Category	22.6		7.6		15.2		—		—		—		8.7		—		54.1
Total Private Client	601.7		719.3		289.9		372.2		198.2		228.8		12,172.6		586.6		15,169.3
Private Client Gross Charge-offs	—		—		—		—		—		(0.1)		—		—		(0.1)
Residential Real Estate (RRE)
Risk Rating:
1 to 3 Category	357.1		138.7		131.8		343.3		334.6		993.2		232.3		—		2,531.0
4 to 5 Category	256.2		264.2		232.1		576.3		658.6		1,313.0		194.3		1.9		3,496.6
6 to 9 Category	1.0		—		0.9		8.1		31.3		31.6		20.5		—		93.4
Total Residential Real Estate	614.3		402.9		364.8		927.7		1,024.5		2,337.8		447.1		1.9		6,121.0
RRE Gross Charge-offs	—		—		—		—		—		(0.1)		—		—		(0.1)
Other
Risk Rating:
1 to 3 Category	86.0		—		—		—		—		—		—		—		86.0
4 to 5 Category	141.0		—		—		—		—		—		—		—		141.0
Total Other	227.0		—		—		—		—		—		—		—		227.0
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)

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 June 30, 2026 and December 31, 2025.

TABLE 45: 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
June 30, 2026
Commercial
Commercial and Institutional	$	6,721.3	$	6.8	$	3.3	$	—	$	6,731.4	$	44.6	$	6,776.0	$	2.4
Commercial Real Estate	5,204.6		92.7		11.1		5.7		5,314.1		2.1		5,316.2		2.1
Subscription Finance	4,166.7		19.6		1.5		—		4,187.8		—		4,187.8		—
Fund Finance	1,544.3		—		0.2		—		1,544.5		—		1,544.5		—
Other	3,538.3		—		—		—		3,538.3		0.5		3,538.8		—
Total Commercial	21,175.2		119.1		16.1		5.7		21,316.1		47.2		21,363.3		4.5
Personal
Private Client	15,693.1		84.0		91.8		17.6		15,886.5		5.4		15,891.9		—
Residential Real Estate	6,024.4		1.1		1.6		4.7		6,031.8		18.7		6,050.5		17.7
Other	516.3		—		—		—		516.3		—		516.3		—
Total Personal	22,233.8		85.1		93.4		22.3		22,434.6		24.1		22,458.7		17.7
Total Loans	$	43,409.0	$	204.2	$	109.5	$	28.0	$	43,750.7	$	71.3	$	43,822.0	$	22.2


	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, 2025
Commercial
Commercial and Institutional	$	6,509.6	$	39.2	$	0.8	$	6.0	$	6,555.6	$	39.7	$	6,595.3	$	21.3
Commercial Real Estate	5,222.1		37.3		3.6		9.2		5,272.2		—		5,272.2		—
Subscription Finance	3,562.4		41.0		—		—		3,603.4		—		3,603.4		—
Fund Finance	1,354.4		—		—		3.3		1,357.7		—		1,357.7		—
Other	3,601.8		—		—		—		3,601.8		0.6		3,602.4		—
Total Commercial	20,250.3		117.5		4.4		18.5		20,390.7		40.3		20,431.0		21.3
Personal
Private Client	15,022.2		128.8		8.5		3.1		15,162.6		6.7		15,169.3		—
Residential Real Estate	6,050.7		11.7		25.5		3.4		6,091.3		29.7		6,121.0		26.9
Other	227.0		—		—		—		227.0		—		227.0		—
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

Interest income that would have been recorded for nonaccrual loans in accordance with their original terms was $1.1 million and $2.0 million for the three and six months ended June 30, 2026, respectively, and $1.3 million and $1.9 million for the three and six months ended June 30, 2025, respectively.

Northern Trust may obtain physical possession of real estate via foreclosure or an in-substance repossession. As of June 30, 2026 and December 31, 2025, Northern Trust did not hold any foreclosed real estate properties as a result of obtaining physical possession. As of June 30, 2026 and December 31, 2025, Northern Trust had loans with a carrying value of $3.1 million and $7.9 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 $12.0 million and $19.7 million for the three and six months ended June 30, 2026 respectively, and $18.9 million and $32.7 million for the three and six months ended June 30, 2025, 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 June 30, 2026, among loans modified within the previous 12 months, $0.6 million were 30-89 days past due and $0.6 million were 90 days or more past due. As of June 30, 2025, loans that were modified in the previous 12 months and 30-89 days past due totaled $4.4 million. There were no loan modifications 90 days past due or more. All modifications to borrowers experiencing financial difficulty continue to be reported as non-accrual loans until the requirements for returning to performing status are met. There were no charge-offs related to modifications to borrowers experiencing financial difficulty that had been modified in the last 12 month for the three and six months ended June 30, 2026, and there were $0.1 million in charge-offs for the three and six months ended June 30, 2025.

There were no undrawn loan commitments and $0.1 million in standby letters of credit issued to financially distressed borrowers for which Northern Trust has modified the payment terms of the loans as of June 30, 2026. 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 December 31, 2025.