State Street STT · USD

Revenue from Contracts with CustomersWe account for revenue from contracts with customers in accordance with ASC 606. The amount of revenue that we recognize is measured based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further discussed below. Revenue recognition guidance related to contracts with customers excludes our NII, revenue earned on security lending transactions entered into as principal, realized gains/losses on securities, revenue earned on foreign exchange activity, loans and related fees, and gains/losses on hedging and derivatives, to which we apply other applicable U.S. GAAP guidance.For contracts with multiple performance obligations, or contracts that have been combined, we allocate the contracts’ transaction price to each performance obligation using our best estimate of the standalone selling price. Our contractual fees are negotiated on a customer by customer basis and are representative of standalone selling price utilized for allocating revenue when there are multiple performance obligations.Substantially all of our services are provided as a distinct series of daily performance obligations that the customer simultaneously benefits from as they are performed. Payments may be made to third party service providers and the expense is recognized gross when we control those services as we are deemed the principal.Contract durations may vary from short- to long-term or may be open ended. Termination notice periods are in line with general market practice and typically do not include termination penalties. Therefore, for substantially all of our revenues, the duration of the contract and the enforceable rights and obligations do not extend beyond the services that are performed daily or at the transaction level. In instances where we have substantive termination penalties, the duration of the contract may extend through the date of substantive termination penalties.Investment ServicingRevenue from contracts with customers related to servicing fees is recognized over time as our customers benefit from the custody, administration, accounting, transfer agency and other related asset services as they are performed.

Commitments and GuaranteesThe following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and guarantees, as of the dates indicated:(In millions)December 31, 2025December 31, 2024Commitments:Unfunded credit facilities$35,697 $34,191 Guarantees(1):Indemnified securities financing$371,968 $310,814 Standby letters of credit569 908 (1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties.Unfunded Credit FacilitiesUnfunded credit facilities consist primarily of liquidity facilities provided to our fund and municipal counterparties, as well as commitments to purchase commercial real estate and commercial loans that have not yet settled.As of December 31, 2025, approximately 70% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.Indemnified Securities FinancingOn behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. We require the borrowers to maintain collateral in an amount in excess of 100% of the fair market value of the securities borrowed. Securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition.The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against the loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition.

Long-Term Debt(Dollars in millions)As of December 31,Issuance DateMaturity DateCoupon RateSeniorityInterest Due Dates20252024Parent Company and Non-Banking Subsidiary IssuancesFebruary 28, 2025February 28, 20284.536 %Senior notes2/28; 8/28$1,346 $— October 22, 2024October 22, 20274.330 %Senior notes4/22, 10/22(2)1,208 1,189 August 3, 2023August 3, 20265.272 %Senior notes2/3; 8/3(2)1,204 1,203 November 21, 2023November 21, 20295.684 %Fixed-to-floating rate senior notes5/21; 11/21(2)1,009 986 August 20, 2024February 20, 20294.530 %Fixed-to-floating rate senior notes2/20; 8/20(2)1,007 989 March 18, 2024March 18, 20274.993 %Senior notes3/18, 9/18(2)1,004 993 April 24, 2025April 24, 20304.834 %Senior notes4/24; 10/24(2)1,002 — May 18, 2023May 18, 20345.159 %Fixed-to-floating rate senior notes5/18; 11/18996 995 October 23, 2025October 23, 20364.784 %Fixed-to-floating rate senior notes4/23; 10/23(2)973 — March 3, 2021March 3, 2031(1)(3)2.200 %Senior subordinated notes3/3; 9/3846 845 October 22, 2024October 22, 20324.675 %Fixed-to-floating rate senior notes4/22; 10/22(2)813 789 January 24, 2020January 24, 2030(1)2.400 %Senior notes1/24, 7/24(2)777 784 February 28, 2025February 28, 20365.146 %Fixed-to-floating rate senior notes2/28; 8/28746 — May 19, 2016May 19, 2026(1)2.650 %Senior notes5/19; 11/19(2)745 728 January 26, 2023January 26, 20344.821 %Fixed-to-floating rate senior notes1/26, 7/26(2)728 702 April 24, 2025April 24, 20284.543 %Fixed-to-floating rate senior notes4/24; 10/24(2)699 — August 4, 2022August 4, 20334.164 %Fixed-to-floating rate senior notes2/4; 8/4(2)695 665 February 28, 2025February 28, 20304.729 %Senior notes2/28; 8/28647 — February 7, 2022February 7, 20282.203 %Fixed-to-floating rate senior notes2/7; 8/7(2)634 619 December 3, 2018December 3, 20294.141 %Fixed-to-floating rate senior notes6/3; 12/3(2)536 535 November 1, 2019November 1, 2034(3)3.031 %Fixed-to-floating rate senior subordinated notes5/1; 11/1(2)518 523 November 21, 2023November 21, 2034(3)6.123 %Fixed-to-floating rate senior subordinated notes5/21; 11/21(2)507 492 November 4, 2022November 4, 20285.820 %Fixed-to-floating rate senior notes5/4; 11/4(2)503 495 April 30, 2007June 15, 2047 Floating-rate Junior subordinated debentures3/15; 6/15; 9/15; 12/15500 500 October 29, 2020March 30, 20313.152 %Fixed-to-floating rate senior notes3/30, 9/30499 498 May 13, 2022May 13, 20334.421 %Fixed-to-floating rate senior notes5/13; 11/13498 498 November 18, 2021November 18, 20271.

Income TaxesWe use an asset-and-liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it is more likely than not that the position will be sustained. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction.The following table presents the components of income tax expense (benefit) for the periods indicated:Years Ended December 31,(In millions)202520242023Current:Federal$375 $108 $160 State96 68 79 Non-U.S.404 387 317 Total current expense875 563 556 Deferred:Federal(133)77 (77)State(1)2 (63)Non-U.S.45 66 (44)Total deferred expense (benefit)(89)145 (184)Total income tax expense (benefit)$786 $708 $372 The Company adopted ASU 2023-09, Improvements to Income Tax Disclosures, prospectively for annual periods beginning after December 31, 2024. The following table presents a reconciliation of the U.S. federal statutory tax rate to our effective income tax rate for the year ended December 31, 2025 (after adoption of ASU 2023-09):Years Ended December 31,(Dollars in millions)2025U.S. federal income tax rate$783 21.0 %Changes from statutory rate:State and local income taxes, net of federal income tax effect(1)81 2.2 Foreign tax effects45 1.2 Effects of cross-border tax laws(2)7 0.2 Tax Credits(3)(68)(1.8)Nontaxable or nondeductible items(27)(0.8)Changes in unrecognized tax benefits(35)(0.9)Effective tax rate$786 21.1 %(1) State taxes in Massachusetts, New York State and New York City made up the majority (greater than 50%) of the tax effect in this category.(2) Effects of cross-border tax laws includes the period expense for global intangible low-taxed income. (3) Business tax credits include research, low-income housing, production and investment tax credits.

Cybersecurity risk is an integral part of our enterprise risk management and is managed as part of our overall information technology risk under the direction of our Chief Information Security Officer (CISO). Our CISO is an executive vice president at State Street and is responsible for our overall information security program.Before joining State Street, our CISO worked at a global information technology firm for more than 10 years, holding various positions, including senior vice president and chief security officer, and, prior to that, chief information security officer for that firm’s software division. Earlier on, she held leadership and general manager roles at an information management firm and an information security firm, each based in both the United States and Europe. She has worked with the World Economic Forum as a member of their Global Future Council on Cybersecurity. She holds a Doctor of Philosophy in information security and a Bachelor of Science in computer science.We recognize the significance of cyber-attacks and take steps to mitigate the risks associated with them. We invest in building and maintaining a mature cybersecurity program to leverage people, technology and processes to protect our systems and the data in our care. We have also implemented a program to help us better measure and manage cybersecurity risk, including those risks we face when we engage third parties for products and services.We design our information and systems access restrictions referencing the National Institute of Standards and Technology 800-53R5 and NIST CSF 2.0 Framework and use the supplemental requirements as implementation guidance. Our information security policies and standards are reviewed and updated for new regulatory changes and/or mandates. These standards are applicable to all corporate functions, business units, subsidiaries and controlled affiliates across the enterprise. Annual audits are conducted by internal and external parties to measure compliance and adherence to the standards.All employees and third parties that have access to our systems or networks are required to adhere to our cybersecurity policy and standards. Our centralized information security group provides education and training. This training includes a required annual online training class for all employees and third parties that have access to our systems or networks, multiple simulated phishing attacks and regular information security awareness materials.

DepositsWe had $2.67 billion and $5.78 billion of time deposits outstanding, of which $0.25 billion and $0.08 billion were non-U.S. time deposits as of December 31, 2025 and 2024, respectively. Time deposits included amounts in excess of the FDIC insurance limits, or other uninsured accounts not subject to any country specific deposit insurance limits, of $2.67 billion and $5.77 billion as of December 31, 2025 and 2024, respectively. As of December 31, 2025, uninsured time deposits of $1.16 billion were scheduled to mature in less than three months and $1.51 billion in three to six months. Demand deposit overdrafts of $1.96 billion and $1.98 billion were included as loan balances at December 31, 2025 and 2024, respectively.

ExpensesThe following table presents the components of other expenses for the periods indicated:Years Ended December 31,(In millions)202520242023Professional services$444 $465 $428 Amortization of other intangible assets223 230 239 Sales advertising and public relations174 142 142 Securities processing58 78 49 Bank operations50 51 45 Donations28 28 27 Regulatory fees and assessments(1)(10)142 464 Other521 433 359 Total other expenses$1,488 $1,569 $1,753 (1) Includes an FDIC special assessment release of $60 million in 2025 and an FDIC special assessment charge of $99 million and $387 million in 2024 and 2023, respectively, related to FDIC’s recovery of estimated losses to the Deposit Insurance Fund associated with the closures of Silicon Valley Bank and Signature Bank reflected in other expenses.Repositioning ChargesIn 2025, we recorded net repositioning charges of $326 million, including $211 million of compensation and employee benefits expenses related to workforce rationalization, $69 million of occupancy costs associated with real estate footprint optimization, and other charges of $24 million and $22 million relating to operating model changes reflected in information systems and communications and other expenses, respectively.In 2024, we recorded a net repositioning release of $2 million, including a $15 million release reflected in compensation and employee benefits expenses, partially offset by $13 million of occupancy charges related to footprint optimization.

Fair ValueFair Value MeasurementsWe carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders’ equity in our consolidated statement of condition.We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management’s assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below.Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange-traded equity securities.Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.