| 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 June 30, 2025 and December 31, 2024. TABLE 38: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES | | | | | | | | | | | | | | | | JUNE 30, 2025 | | (In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | | Available for Sale Debt Securities | | | | | | U.S. Government | $ | 8,288.1 | | $ | 12.2 | | $ | 14.3 | | $ | 8,286.0 | | | Obligations of States and Political Subdivisions | 320.8 | | — | | 14.0 | | 306.8 | | | Government Sponsored Agency | 15,929.8 | | 22.2 | | 113.1 | | 15,838.9 | | | Non-U.S. Government | 320.0 | | 1.1 | | 7.9 | | 313.2 | | | Corporate Debt | 94.5 | | — | | 1.1 | | 93.4 | | | Covered Bonds | 237.2 | | 0.5 | | 2.2 | | 235.5 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,964.2 | | 34.2 | | 27.5 | | 4,970.9 | | | Other Asset-Backed | 1,687.7 | | 7.1 | | 6.9 | | 1,687.9 | | | Commercial Mortgage-Backed | 527.6 | | 0.1 | | 9.9 | | 517.8 | | | Total Available for Sale Debt Securities | $ | 32,369.9 | | $ | 77.4 | | $ | 196.9 | | $ | 32,250.4 | | | Held to Maturity Debt Securities | | | | | | Obligations of States and Political Subdivisions | $ | 2,529.0 | | $ | 0.6 | | $ | 32.8 | | $ | 2,496.8 | | | Government Sponsored Agency | 8,443.5 | | 2.3 | | 853.9 | | 7,591.9 | | | Non-U.S. Government | 2,876.4 | | 0.6 | | 39.7 | | 2,837.3 | | | Corporate Debt | 297.5 | | — | | 7.0 | | 290.5 | | | Covered Bonds | 1,541.7 | | 0.1 | | 51.4 | | 1,490.4 | | | Certificates of Deposit | 536.2 | | — | | 0.2 | | 536.0 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,512.8 | | 3.9 | | 106.9 | | 4,409.8 | | | | | | | | Commercial Mortgage-Backed | 37.6 | | — | | 1.2 | | 36.4 | | | Other | 626.1 | | — | | 174.2 | | 451.9 | | | Total Held to Maturity Debt Securities | $ | 21,400.8 | | $ | 7.5 | | $ | 1,267.3 | | $ | 20,141.0 | | | Total Debt Securities | $ | 53,770.7 | | $ | 84.9 | | $ | 1,464.2 | | $ | 52,391.4 | |
| | | | | | | | | | | | | | | | DECEMBER 31, 2024 | | (In Millions) | AMORTIZED COST | GROSS UNREALIZED GAINS | GROSS UNREALIZED LOSSES | FAIR VALUE | | Available for Sale Debt Securities | | | | | | U.S. Government | $ | 7,388.9 | | $ | 1.5 | | $ | 22.9 | | $ | 7,367.5 | | | Obligations of States and Political Subdivisions | 311.2 | | — | | 13.6 | | 297.6 | | | Government Sponsored Agency | 13,410.5 | | 10.9 | | 132.5 | | 13,288.9 | | | Non-U.S. Government | 308.9 | | 0.2 | | 12.3 | | 296.8 | | | Corporate Debt | 166.6 | | 0.1 | | 2.9 | | 163.8 | | | Covered Bonds | 234.0 | | 0.5 | | 3.6 | | 230.9 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,617.0 | | 8.3 | | 42.2 | | 4,583.1 | | | Other Asset-Backed | 2,188.6 | | 7.0 | | 12.9 | | 2,182.7 | | | Commercial Mortgage-Backed | 603.4 | | 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 Agency | 8,635.0 | | 0.9 | | 1,081.3 | | 7,554.6 | | | Non-U.S. Government | 3,735.8 | | 0.2 | | 56.3 | | 3,679.7 | | | Corporate Debt | 351.6 | | — | | 11.0 | | 340.6 | | | Covered Bonds | 1,776.8 | | 0.1 | | 62.2 | | 1,714.7 | | | Certificates of Deposit | 336.0 | | — | | 0.3 | | 335.7 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 4,146.9 | | 1.4 | | 171.3 | | 3,977.0 | | | Other Asset-Backed | 107.1 | | 0.3 | | 0.1 | | 107.3 | | | Commercial Mortgage-Backed | 37.6 | | — | | 0.8 | | 36.8 | | | Other | 621.7 | | — | | 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 39: REMAINING MATURITY OF DEBT SECURITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | JUNE 30, 2025 | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO TEN YEARS | OVER TEN YEARS | TOTAL | | (In Millions) | AMORTIZED COST | FAIR VALUE | AMORTIZED COST | FAIR VALUE | AMORTIZED COST | FAIR VALUE | AMORTIZED COST | FAIR VALUE | AMORTIZED COST | FAIR VALUE | | Available for Sale Debt Securities | | | | | | | | | | | | U.S. Government | $ | 348.2 | | $ | 347.2 | | $ | 7,225.9 | | $ | 7,226.3 | | $ | 714.0 | | $ | 712.5 | | $ | — | | $ | — | | $ | 8,288.1 | | $ | 8,286.0 | | | Obligations of States and Political Subdivisions | — | | — | | 249.1 | | 238.7 | | 71.7 | | 68.1 | | — | | — | | 320.8 | | 306.8 | | | Government Sponsored Agency | 3,711.2 | | 3,693.8 | | 8,781.4 | | 8,749.7 | | 2,327.9 | | 2,306.5 | | 1,109.3 | | 1,088.9 | | 15,929.8 | | 15,838.9 | | | Non-U.S. Government | 122.3 | | 120.8 | | 197.7 | | 192.4 | | — | | — | | — | | — | | 320.0 | | 313.2 | | | Corporate Debt | 94.5 | | 93.4 | | — | | — | | — | | — | | — | | — | | 94.5 | | 93.4 | | | Covered Bonds | — | | — | | 237.2 | | 235.5 | | — | | — | | — | | — | | 237.2 | | 235.5 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 664.8 | | 663.5 | | 3,998.4 | | 4,014.7 | | 301.0 | | 292.7 | | — | | — | | 4,964.2 | | 4,970.9 | | | Other Asset-Backed | 153.7 | | 150.1 | | 1,032.0 | | 1,034.0 | | 420.7 | | 422.2 | | 81.3 | | 81.6 | | 1,687.7 | | 1,687.9 | | | Commercial Mortgage-Backed | 53.1 | | 52.7 | | 440.9 | | 436.9 | | 33.6 | | 28.2 | | — | | — | | 527.6 | | 517.8 | | | Total Available for Sale Debt Securities | $ | 5,147.8 | | $ | 5,121.5 | | $ | 22,162.6 | | $ | 22,128.2 | | $ | 3,868.9 | | $ | 3,830.2 | | $ | 1,190.6 | | $ | 1,170.5 | | $ | 32,369.9 | | $ | 32,250.4 | | | Held to Maturity Debt Securities | | | | | | | | | | | | Obligations of States and Political Subdivisions | $ | 173.5 | | $ | 173.0 | | $ | 1,425.2 | | $ | 1,418.0 | | $ | 827.7 | | $ | 807.6 | | $ | 102.6 | | $ | 98.2 | | $ | 2,529.0 | | $ | 2,496.8 | | | Government Sponsored Agency | 928.9 | | 851.7 | | 3,757.5 | | 3,432.1 | | 2,259.7 | | 2,013.4 | | 1,497.4 | | 1,294.7 | | 8,443.5 | | 7,591.9 | | | Non-U.S. Government | 1,880.5 | | 1,873.8 | | 995.9 | | 963.5 | | — | | — | | — | | — | | 2,876.4 | | 2,837.3 | | | Corporate Debt | 168.1 | | 167.2 | | 129.4 | | 123.3 | | — | | — | | — | | — | | 297.5 | | 290.5 | | | Covered Bonds | 264.1 | | 263.5 | | 1,188.5 | | 1,138.7 | | 89.1 | | 88.2 | | — | | — | | 1,541.7 | | 1,490.4 | | | Certificates of Deposit | 536.2 | | 536.0 | | — | | — | | — | | — | | — | | — | | 536.2 | | 536.0 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,235.9 | | 2,208.9 | | 2,270.9 | | 2,195.8 | | 6.0 | | 5.1 | | — | | — | | 4,512.8 | | 4,409.8 | | | | | | | | | | | | | | Commercial Mortgage-Backed | — | | — | | 37.6 | | 36.4 | | — | | — | | — | | — | | 37.6 | | 36.4 | | | Other | 63.7 | | 62.4 | | 328.0 | | 299.8 | | 47.2 | | 35.8 | | 187.2 | | 53.9 | | 626.1 | | 451.9 | | | Total Held to Maturity Debt Securities | $ | 6,250.9 | | $ | 6,136.5 | | $ | 10,133.0 | | $ | 9,607.6 | | $ | 3,229.7 | | $ | 2,950.1 | | $ | 1,787.2 | | $ | 1,446.8 | | $ | 21,400.8 | | $ | 20,141.0 | | | Total Debt Securities | $ | 11,398.7 | | $ | 11,258.0 | | $ | 32,295.6 | | $ | 31,735.8 | | $ | 7,098.6 | | $ | 6,780.3 | | $ | 2,977.8 | | $ | 2,617.3 | | $ | 53,770.7 | | $ | 52,391.4 | |
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 provision for credit losses for AFS securities of $0.9 million and $0.7 million for the three and six months ended June 30, 2025, respectively. There was a $0.1 million provision for credit losses and a $0.6 million release of credit reserves for AFS securities for the three and six months ended June 30, 2024, respectively. There was a $0.9 million allowance for credit losses for AFS securities as of June 30, 2025, which was related to sub-sovereign, supranational and non-U.S. agency bonds and corporate debt securities. 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 June 30, 2025 and December 31, 2024. TABLE 40: AVAILABLE FOR SALE DEBT SECURITIES IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED | | | | | | | | | | | | | | | | | | | | | | JUNE 30, 2025 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | | (In Millions) | FAIR
VALUE | UNREALIZED
LOSSES | FAIR
VALUE | UNREALIZED
LOSSES | FAIR
VALUE | UNREALIZED
LOSSES | | U.S. Government | $ | 4,757.3 | | $ | 5.5 | | $ | 843.1 | | $ | 8.8 | | $ | 5,600.4 | | $ | 14.3 | | | Obligations of States and Political Subdivisions | — | | — | | 306.8 | | 14.0 | | 306.8 | | 14.0 | | | Government Sponsored Agency | 4,068.7 | | 14.0 | | 5,957.7 | | 99.1 | | 10,026.4 | | 113.1 | | | Non-U.S. Government | — | | — | | 193.6 | | 7.9 | | 193.6 | | 7.9 | | | Corporate Debt | — | | — | | 42.6 | | 0.5 | | 42.6 | | 0.5 | | | Covered Bonds | — | | — | | 123.9 | | 2.2 | | 123.9 | | 2.2 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 250.7 | | 0.5 | | 754.5 | | 26.3 | | 1,005.2 | | 26.8 | | | Other Asset-Backed | 19.8 | | — | | 285.6 | | 6.9 | | 305.4 | | 6.9 | | | Commercial Mortgage-Backed | 56.8 | | — | | 262.4 | | 9.9 | | 319.2 | | 9.9 | | | Total | $ | 9,153.3 | | $ | 20.0 | | $ | 8,770.2 | | $ | 175.6 | | $ | 17,923.5 | | $ | 195.6 | |
Note: One corporate debt AFS securities with a fair value of $41.7 million and unrealized losses of $0.6 million and one sub-sovereign, supranational and non-U.S. agency bonds AFS security with a fair value of $31.9 million and unrealized loss of $0.7 million have been excluded from the table above as these AFS securities have a $0.9 million allowance for credit losses reported as of June 30, 2025. Refer to the discussion further below and Note 6, “Allowance for Credit Losses” for further information. | | | | | | | | | | | | | | | | | | | | | | DECEMBER 31, 2024 | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | | (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 Agency | 3,298.8 | | 14.5 | | 6,373.8 | | 118.0 | | 9,672.6 | | 132.5 | | | Non-U.S. Government | 54.9 | | 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 Bonds | 881.9 | | 2.6 | | 720.5 | | 39.6 | | 1,602.4 | | 42.2 | | | Other Asset-Backed | 35.4 | | — | | 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 June 30, 2025, 759 AFS debt securities with a combined fair value of $17.9 billion were in an unrealized loss position without an allowance for credit losses, with their unrealized losses totaling $195.6 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 $255.1 million. Unrealized losses on AFS debt securities without an allowance for credit losses are primarily attributable to changes in market interest rates and credit spreads since their purchase. The following table provides the amortized cost of HTM debt securities by credit ratings using ratings from Moody’s S&P Global or Fitch Ratings. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security. TABLE 41: AMORTIZED COST OF HELD TO MATURITY DEBT SECURITIES BY CREDIT RATING | | | | | | | | | | | | | | | | | | | | | | JUNE 30, 2025 | | ($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | | | | | | | | | Obligations of States and Political Subdivisions | $ | 1,016.4 | | $ | 1,512.6 | | $ | — | | $ | — | | $ | — | | $ | 2,529.0 | | | Government Sponsored Agency | 8,443.5 | | — | | — | | — | | — | | 8,443.5 | | | Non-U.S. Government | 356.5 | | 965.4 | | 1,190.0 | | 364.5 | | — | | 2,876.4 | | | Corporate Debt | — | | 193.7 | | 103.8 | | — | | — | | 297.5 | | | Covered Bonds | 1,541.7 | | — | | — | | — | | — | | 1,541.7 | | | Certificates of Deposit | 503.2 | | — | | — | | — | | 33.0 | | 536.2 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 3,458.7 | | 1,020.9 | | 32.0 | | 1.2 | | — | | 4,512.8 | | | | | | | | | | Commercial Mortgage-Backed | — | | 37.6 | | — | | — | | — | | 37.6 | | | Other | 54.7 | | — | | — | | — | | 571.4 | | 626.1 | | | Total Held to Maturity | $ | 15,374.7 | | $ | 3,730.2 | | $ | 1,325.8 | | $ | 365.7 | | $ | 604.4 | | $ | 21,400.8 | | | Percent of Total Held to Maturity | 72 | % | 17 | % | 6 | % | 2 | % | 3 | % | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | DECEMBER 31, 2024 | | ($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | | | | | | | | | Obligations of States and Political Subdivisions | $ | 1,024.3 | | $ | 1,523.9 | | $ | — | | $ | — | | $ | — | | $ | 2,548.2 | | | Government Sponsored Agency | 8,635.0 | | — | | — | | — | | — | | $ | 8,635.0 | | | Non-U.S. Government | 700.0 | | 704.2 | | 2,020.1 | | 311.5 | | — | | $ | 3,735.8 | | | Corporate Debt | — | | 191.5 | | 160.1 | | — | | — | | $ | 351.6 | | | Covered Bonds | 1,776.8 | | — | | — | | — | | — | | $ | 1,776.8 | | | Certificates of Deposit | 316.6 | | — | | — | | — | | 19.4 | | $ | 336.0 | | | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 3,132.8 | | 984.5 | | 28.5 | | 1.1 | | — | | $ | 4,146.9 | | | Other Asset-Backed | 107.1 | | — | | — | | — | | — | | $ | 107.1 | | | Commercial Mortgage-Backed | 37.6 | | — | | — | | — | | — | | $ | 37.6 | | | Other | 50.7 | | — | | — | | — | | 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 Maturity | 71 | % | 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 June 30, 2025 and December 31, 2024, respectively, comprised of securities rated A or higher. Investment Security Gains and Losses. There were no sales of debt securities and no net investment security gains (losses) for the three and six months ended June 30, 2025. Proceeds of $31.2 million from the sale of certain other asset-backed debt securities resulted in an investment security gain of $0.1 million for the three months ended June 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 six months ended June 30, 2024. TABLE 42: INVESTMENT SECURITY GAINS AND LOSSES | | | | | | | | | | | | | | | | THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | | (In Millions) | 2025 | 2024 | 2025 | 2024 | | Gross Realized Debt Securities Gains | $ | — | | $ | 0.1 | | $ | — | | $ | 185.2 | | | Gross Realized Debt Securities Losses | — | | — | | — | | (374.5) | | | Investment Security Gains (Losses), net | $ | — | | $ | 0.1 | | $ | — | | $ | (189.3) | |
TABLE 43: INVESTMENT SECURITY GAINS AND LOSSES BY SECURITY TYPE | | | | | | | | | | | | | | | | THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | | (In Millions) | 2025 | 2024 | 2025 | 2024 | | 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 | — | | 0.1 | | — | | (56.5) | | | | | | | | Commercial Mortgage-Backed | — | | — | | — | | (22.6) | | | | | | | | Investment Security Gains (Losses), net | $ | — | | $ | 0.1 | | $ | — | | $ | (189.3) | |
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