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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

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 June 30, 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 32: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS

JUNE 30, 2026

FINANCIAL INSTRUMENT

FAIR VALUE

VALUATION TECHNIQUE

UNOBSERVABLE INPUTS

INPUT VALUES

WEIGHTED-AVERAGE INPUT VALUES(1)

Swaps Related to Sale of Certain Visa Class B Common Shares

$23.0 million

Discounted Cash Flow

Conversion Rate

1.50

Visa Class A Appreciation

12.88%

Expected Duration

37 months

34 months

(1) Weighted average of expected duration based on scenario probability.

DECEMBER 31, 2025

FINANCIAL INSTRUMENT

FAIR VALUE

VALUATION TECHNIQUE

UNOBSERVABLE INPUTS

INPUT VALUES

WEIGHTED-AVERAGE INPUT VALUES(1)

Swaps Related to Sale of Certain Visa Class B Common Shares

$29.7 million

Discounted Cash Flow

Conversion Rate

1.51

Visa Class A Appreciation

9.69%

Expected Duration

26 months

23 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 six months ended June 30, 2026 and the 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 35: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS

JUNE 30, 2026

FINANCIAL INSTRUMENT

FAIR VALUE(1)

VALUATION TECHNIQUE

UNOBSERVABLE INPUTS

INPUT VALUES

WEIGHTED-AVERAGE INPUT VALUES

Loans

$1.3 million

Market Approach

Discount factor applied to real estate collateral-dependent loans to reflect realizable value

25.0%

(1) Includes a real estate collateral-dependent loan.

DECEMBER 31, 2025

FINANCIAL INSTRUMENT

FAIR VALUE(1)

VALUATION TECHNIQUE

UNOBSERVABLE INPUTS

INPUT VALUES

WEIGHTED-AVERAGE INPUT VALUES

Loans

$1.3 million

Market Approach

Discount factor applied to real estate collateral-dependent loans to reflect realizable value

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 June 30, 2026 and December 31, 2025, segregated by fair value hierarchy level.

TABLE 33: RECURRING BASIS HIERARCHY LEVELING


	JUNE 30, 2026
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/LIABILITIES AT FAIR VALUE
Debt Securities
Available for Sale
U.S. Governments	$	7,883.3	$	—	$	—	$	—	$	7,883.3

Government Sponsored Agency	—		19,302.8		—		—		19,302.8
Non-U.S. Government	—		408.5		—		—		408.5
Corporate Debt	—		271.4		—		—		271.4
Covered Bonds	—		275.7		—		—		275.7

Sub-Sovereign, Supranational and Non-U.S. Agency Bonds	—		4,670.4		—		—		4,670.4
CLOs	—		3,453.7		—		—		3,453.7
Other Asset-Backed	—		1,345.7		—		—		1,345.7
Commercial Mortgage-Backed	—		511.6		—		—		511.6



Total Available for Sale Debt Securities	7,883.3		30,239.8		—		—		38,123.1
Other Assets
Equity Securities(1)	110.0		450.9		—		—		560.9
Derivative Assets
Foreign Exchange Contracts	—		3,294.6		—		(1,768.9)		1,525.7
Interest Rate Contracts	—		80.2		—		(61.2)		19.0
Other Financial Derivatives(2)	—		0.3		—		(0.3)		—
Total Derivative Assets	—		3,375.1		—		(1,830.4)		1,544.7
Other Liabilities
Derivative Liabilities
Foreign Exchange Contracts	—		3,159.4		—		(2,729.3)		430.1
Interest Rate Contracts	—		138.8		—		—		138.8
Other Financial Derivatives(3)	—		0.1		23.0		(23.1)		—
Total Derivative Liabilities	$	—	$	3,298.3	$	23.0	$	(2,752.4)	$	568.9

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 June 30, 2026, derivative assets and liabilities shown above also include reductions of $202.7 million and $1,124.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties.

(1) Equity securities consists of a money market investment, Visa Class C common shares, and seed capital investments to certain funds managed by Northern Trust with a fair value of $110.0 million, $370.7 million, and $80.2 million, respectively, as of June 30, 2026.

(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.


	DECEMBER 31, 2025
(In Millions)	LEVEL 1		LEVEL 2		LEVEL 3		NETTING		ASSETS/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 Securities	8,172.4		25,864.1		—		—		34,036.5
Other Assets
Equity Securities(1)	85.0		127.4		—		—		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 and six months ended June 30, 2026 and 2025.

TABLE 34: CHANGES IN LEVEL 3 LIABILITIES


(In Millions)	SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
THREE MONTHS ENDED JUNE 30,	2026		2025
Fair Value at April 1	$	22.4	$	29.5
Total (Gains) Losses:
Included in Earnings(1)	5.9		(0.2)
Purchases, Issues, Sales, and Settlements
Settlements	(5.3)		(6.5)
Fair Value at June 30	$	23.0	$	22.8

(1) (Gains) Losses are recorded in Other Operating Income on the consolidated statements of income.


(In Millions)	SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
SIX MONTHS ENDED JUNE 30,	2026		2025
Fair Value at January 1	$	29.7	$	27.2
Total Losses:
Included in Earnings(1)	3.1		5.4
Purchases, Issues, Sales, and Settlements
Settlements	(9.8)		(9.8)
Fair Value at June 30	$	23.0	$	22.8

(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 June 30, 2026 and December 31, 2025. The following tables exclude those items measured at fair value on a recurring basis.

TABLE 36: FAIR VALUE OF FINANCIAL INSTRUMENTS


	JUNE 30, 2026
					ESTIMATED FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL ESTIMATED FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks	$	5,736.9	$	5,736.9	$	5,736.9	$	—	$	—
Federal Reserve and Other Central Bank Deposits	50,636.2		50,636.2		—		50,636.2		—
Interest-Bearing Deposits with Banks	1,544.9		1,544.9		—		1,544.9		—
Federal Funds Sold and Securities Purchased under Agreements to Resell	426.5		426.5		—		426.5		—
Debt Securities - Held to Maturity	23,492.1		22,353.5		—		22,353.5		—
Loans
Held for Investment	43,661.1		43,526.1		—		—		43,526.1

Other Assets	1,629.9		1,623.4		87.4		1,536.0		—
FINANCIAL LIABILITIES
Deposits	145,580.0		145,609.7		—		145,609.7		—
Federal Funds Purchased	1,568.9		1,568.9		—		1,568.9		—
Securities Sold Under Agreements to Repurchase	175.6		175.6		—		175.6		—
Other Borrowings	8,627.2		8,637.4		—		8,637.4		—
Senior Notes	3,331.2		3,378.7		—		3,378.7		—
Long-Term Debt	2,073.3		2,149.3		—		2,149.3		—
Unfunded Commitments	323.6		323.6		—		323.6		—
Other Liabilities	35.7		35.7		—		—		35.7


	DECEMBER 31, 2025
					ESTIMATED FAIR VALUE
(In Millions)	BOOK VALUE		TOTAL ESTIMATED FAIR VALUE		LEVEL 1		LEVEL 2		LEVEL 3
FINANCIAL ASSETS
Cash and Due from Banks	$	5,873.1	$	5,873.1	$	5,873.1	$	—	$	—
Federal Reserve and Other Central Bank Deposits	53,524.9		53,524.9		—		53,524.9		—
Interest-Bearing Deposits with Banks	1,729.4		1,729.4		—		1,729.4		—
Federal Funds Sold and Securities Purchased under Agreements to Resell	2,654.1		2,654.1		—		2,654.1		—
Debt Securities - Held to Maturity	23,429.6		22,381.2		—		22,381.2		—
Loans
Held for Investment	41,777.1		41,661.2		—		—		41,661.2
Held for Sale	6.8		6.8		—		6.8		—
Other Assets	1,668.6		1,664.8		86.3		1,578.5		—
FINANCIAL LIABILITIES
Deposits	142,797.7		142,348.6		—		142,348.6		—
Federal Funds Purchased	2,141.1		2,141.1		—		2,141.1		—
Securities Sold Under Agreements to Repurchase	292.2		292.2		—		292.2		—
Other Borrowings	7,158.3		7,185.5		—		7,185.5		—
Senior Notes	3,351.5		3,405.5		—		3,405.5		—
Long-Term Debt	3,484.4		3,596.8		—		3,596.8		—
Unfunded Commitments	373.0		373.0		—		373.0		—
Other Liabilities	37.9		37.9		—		—		37.9