State Street(STT) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes State Street Corporation's financial performance and condition for the three and six months ended June 30, 2025, covering overall results, line of business performance, financial condition, and risk management. General State Street Corporation is a global financial services provider to institutional investors, managing $49.00 trillion in AUC/A and $5.12 trillion in AUM as of June 30, 2025 - State Street Corporation is a financial holding company providing services to institutional investors globally, with operations in over 100 geographic markets[10][11] - The company's operations are organized into two lines of business: Investment Servicing and Investment Management[12] Key Financial Metrics (as of June 30, 2025) | Metric | Value | | :----- | :-------------------------- | | AUC/A | $49.00 trillion | | AUM | $5.12 trillion | | Total Assets | $376.72 billion | | Total Deposits | $283.02 billion | | Total Shareholders' Equity | $27.31 billion | | Employees | ~52,000 | Overview of Financial Results For Q2 2025, diluted EPS increased 1% to $2.17, total revenue rose 8% due to higher fee revenue, and total expenses increased 11% due to a repositioning charge and higher incentive compensation. - Notable items in Q2 2025 included a $100 million repositioning charge for workforce rationalization and a $42 million Alpha-related client rescoping impact on revenue and expenses[50] - AUC/A increased 11% to $49.00 trillion and AUM increased 17% to $5.12 trillion as of June 30, 2025, primarily due to higher market levels and client flows/inflows[52][53] Three Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :------- | | Total fee revenue | $2,719 | $2,456 | 11% | | Net interest income | $729 | $735 | (1)% | | Total revenue | $3,448 | $3,191 | 8% | | Provision for credit losses | $30 | $10 | nm | | Total expenses | $2,529 | $2,269 | 11% | | Income before income tax expense | $889 | $912 | (3)% | | Net income | $693 | $711 | (3)% | | Net income available to common shareholders | $630 | $655 | (4)% | | Diluted EPS | $2.17 | $2.15 | 1% | | Return on average common equity | 10.8% | 11.9% | (110) bps | | Pre-tax margin | 25.8% | 28.6% | (280) bps | Six Months Ended June 30, 2025 vs. 2024 | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :------- | | Total fee revenue | $5,289 | $4,878 | 8% | | Net interest income | $1,443 | $1,451 | (1)% | | Total revenue | $6,732 | $6,329 | 6% | | Provision for credit losses | $42 | $37 | 14% | | Total expenses | $4,979 | $4,782 | 4% | | Income before income tax expense | $1,711 | $1,510 | 13% | | Net income | $1,337 | $1,174 | 14% | | Net income available to common shareholders | $1,227 | $1,073 | 14% | | Diluted EPS | $4.21 | $3.52 | 20% | | Return on average common equity | 10.7% | 9.8% | 90 bps | | Pre-tax margin | 25.4% | 23.9% | 150 bps | Consolidated Results of Operations This section details the consolidated financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, covering total revenue, net interest income, provision for credit losses, and expenses. Total Revenue Total revenue increased 8% in Q2 2025 and 6% in H1 2025, primarily driven by higher fee revenue, particularly from foreign exchange trading services, servicing fees, and management fees. - Servicing fee revenue increased 5% in both Q2 and H1 2025, driven by higher average market levels, net new business, and client activity, with currency translation contributing 1% to the Q2 increase[63] - Management fee revenue increased 10% in both Q2 and H1 2025, primarily due to higher average market levels and net inflows from prior periods[84] - Foreign exchange trading services revenue increased 28% in Q2 2025 and 19% in H1 2025, mainly due to higher volumes and increased spreads from FX volatility[92] - Newly announced asset servicing mandates totaled approximately $1.09 trillion of AUC/A in Q2 2025, with $3.98 trillion of AUC/A remaining to be installed in future periods[76] Total Revenue (Three Months Ended June 30) | Revenue Type | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Servicing fees | $1,304 | $1,239 | 5% | | Management fees | $562 | $511 | 10% | | Foreign exchange trading services | $431 | $336 | 28% | | Securities finance | $126 | $108 | 17% | | Software and processing fees | $230 | $214 | 7% | | Other fee revenue | $66 | $48 | 38% | | Total fee revenue | $2,719 | $2,456 | 11% | | Net interest income | $729 | $735 | (1)% | | Total revenue | $3,448 | $3,191 | 8% | Total Revenue (Six Months Ended June 30) | Revenue Type | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Servicing fees | $2,579 | $2,467 | 5% | | Management fees | $1,124 | $1,021 | 10% | | Foreign exchange trading services | $793 | $667 | 19% | | Securities finance | $240 | $204 | 18% | | Software and processing fees | $455 | $421 | 8% | | Other fee revenue | $98 | $98 | —% | | Total fee revenue | $5,289 | $4,878 | 8% | | Net interest income | $1,443 | $1,451 | (1)% | | Total revenue | $6,732 | $6,329 | 6% | Net Interest Income Net interest income (NII) decreased by 1% in both Q2 and H1 2025, primarily due to lower average short-end rates and a deposit mix shift, partially offset by loan growth and securities portfolio repricing. - Average total interest-earning assets increased to $304.65 billion (Q2 2025) and $297.12 billion (H1 2025), primarily due to higher client deposits and long-term debt[113] - Average loans increased to $45.28 billion (Q2 2025) and $44.51 billion (H1 2025), driven by growth in collateralized loan obligations and fund finance loans[119] Net Interest Income (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Interest income | $3,055 | $2,998 | 2% | | Interest expense | $2,326 | $2,263 | 3% | | Net interest income | $729 | $735 | (1)% | | Net interest margin (FTE) | 0.96% | 1.13% | (17) bps | Net Interest Income (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Interest income | $5,977 | $5,887 | 2% | | Interest expense | $4,534 | $4,436 | 2% | | Net interest income | $1,443 | $1,451 | (1)% | | Net interest margin (FTE) | 0.98% | 1.13% | (15) bps | Provision for Credit Losses The provision for credit losses increased to $30 million in Q2 2025 and $42 million in H1 2025, reflecting the evolving macroeconomic environment and higher loan loss reserves for certain commercial real estate loans. - The increase in provision for credit losses is primarily due to the evolving macroeconomic environment and increased loan loss reserves for certain commercial real estate loans[129] Provision for Credit Losses | Period | 2025 (Millions) | 2024 (Millions) | % Change | | :----- | :-------------- | :-------------- | :------- | | Q2 | $30 | $10 | nm | | H1 | $42 | $37 | 14% | Expenses Total expenses increased 11% in Q2 2025 and 4% in H1 2025, driven by a $100 million repositioning charge, higher incentive compensation, increased technology investments, and currency translation impacts. - Total headcount decreased 1% as of June 30, 2025, due to operational simplification and technology, partially offset by growth in high-cost locations[134] Total Expenses (Three Months Ended June 30) | Expense Type | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Compensation and employee benefits | $1,280 | $1,099 | 16% | | Information systems and communications | $523 | $454 | 15% | | Transaction processing services | $260 | $250 | 4% | | Occupancy | $105 | $106 | (1)% | | Amortization of other intangible assets | $56 | $60 | (7)% | | Other expenses | $305 | $300 | 2% | | Total expenses | $2,529 | $2,269 | 11% | Total Expenses (Six Months Ended June 30) | Expense Type | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Compensation and employee benefits | $2,542 | $2,351 | 8% | | Information systems and communications | $1,020 | $886 | 15% | | Transaction processing services | $518 | $498 | 4% | | Occupancy | $208 | $209 | —% | | Amortization of other intangible assets | $110 | $120 | (8)% | | Other expenses | $581 | $718 | (19)% | | Total expenses | $4,979 | $4,782 | 4% | Repositioning Charges In Q2 2025, State Street recorded a $100 million repositioning charge related to compensation and employee benefits, primarily from workforce rationalization efforts aimed at driving operating efficiency. - A repositioning charge of $100 million was recorded in Q2 2025, primarily for workforce rationalization[139] Repositioning Charges Accrual Balance (Millions) | Metric | Dec 31, 2023 | Mar 31, 2024 | Jun 30, 2024 | Dec 31, 2024 | Mar 31, 2025 | Jun 30, 2025 | | :-------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Employee Related Costs | $207 | $188 | $151 | $96 | $82 | $163 | | Real Estate Actions | $1 | $1 | $1 | $0 | $0 | $0 | | Total | $208 | $189 | $152 | $96 | $82 | $163 | Income Tax Expense Income tax expense was $196 million in Q2 2025 and $374 million in H1 2025, with the effective tax rate decreasing slightly to 22.0% (Q2) and 21.9% (H1) due to higher discrete tax benefits. - The decrease in the effective tax rate for the six-month period was primarily due to higher discrete tax benefits in 2025[140] Income Tax Expense and Effective Tax Rate | Period | Income Tax Expense (Millions) | Effective Tax Rate | | :----- | :---------------------------- | :----------------- | | Q2 2025 | $196 | 22.0% | | Q2 2024 | $201 | 22.1% | | H1 2025 | $374 | 21.9% | | H1 2024 | $336 | 22.3% | Line of Business Information State Street operates two primary lines of business: Investment Servicing and Investment Management, offering back- and middle-office solutions, market and financing solutions, and a range of investment products including SPDR ETFs. - The company's operations are organized into two lines of business: Investment Servicing and Investment Management[141] - Investment Servicing provides custody, accounting, fund administration, transaction management, foreign exchange, brokerage, securities finance, and deposit services, including the State Street Alpha platform[142][143] - Investment Management offers equity, fixed income, cash, multi-asset, and alternative strategies, including SPDR ETFs and index funds[144] Investment Servicing The Investment Servicing line of business reported an 8% increase in total revenue for Q2 2025 and 6% for H1 2025, with income before income tax expense rising 12% in Q2 and 11% in H1. - Servicing fees increased 5% in both periods, driven by higher average market levels, net new business, and client activity, with currency translation contributing 1% to the Q2 increase[146] Investment Servicing Key Financials (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Servicing fees | $1,304 | $1,239 | 5% | | Foreign exchange trading services | $390 | $304 | 28% | | Securities finance | $119 | $101 | 18% | | Software and processing fees | $254 | $214 | 19% | | Other fee revenue | $51 | $36 | 42% | | Total fee revenue | $2,118 | $1,894 | 12% | | Net interest income | $726 | $730 | (1)% | | Total revenue | $2,844 | $2,624 | 8% | | Total expenses | $1,995 | $1,880 | 6% | | Income before income tax expense | $819 | $734 | 12% | | Pre-tax margin | 28.8% | 28.0% | 80 bps | Investment Servicing Key Financials (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Servicing fees | $2,579 | $2,467 | 5% | | Foreign exchange trading services | $727 | $612 | 19% | | Securities finance | $227 | $191 | 19% | | Software and processing fees | $479 | $421 | 14% | | Other fee revenue | $85 | $79 | 8% | | Total fee revenue | $4,097 | $3,770 | 9% | | Net interest income | $1,435 | $1,441 | —% | | Total revenue | $5,532 | $5,211 | 6% | | Total expenses | $4,014 | $3,843 | 4% | | Income before income tax expense | $1,476 | $1,331 | 11% | | Pre-tax margin | 26.7% | 25.5% | 120 bps | Investment Management The Investment Management line of business saw total revenue increase by 10% in Q2 2025 and 9% in H1 2025, with income before income tax expense growing 16% in Q2 and 20% in H1. - Management fees increased 10% in both periods, driven by higher average market levels and net inflows from prior periods[151] Investment Management Key Financials (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Management fees | $562 | $511 | 10% | | Foreign exchange trading services | $38 | $32 | 19% | | Securities finance | $7 | $7 | —% | | Other fee revenue | $15 | $12 | 25% | | Total fee revenue | $622 | $562 | 11% | | Net interest income | $3 | $5 | (40)% | | Total revenue | $625 | $567 | 10% | | Total expenses | $417 | $388 | 7% | | Income before income tax expense | $208 | $179 | 16% | | Pre-tax margin | 33.3% | 31.6% | 170 bps | Investment Management Key Financials (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :-------------------------- | :-------------- | :-------------- | :------- | | Management fees | $1,124 | $1,021 | 10% | | Foreign exchange trading services | $63 | $55 | 15% | | Securities finance | $13 | $13 | —% | | Other fee revenue | $13 | $19 | (32)% | | Total fee revenue | $1,213 | $1,108 | 9% | | Net interest income | $8 | $10 | (20)% | | Total revenue | $1,221 | $1,118 | 9% | | Total expenses | $848 | $808 | 5% | | Income before income tax expense | $373 | $310 | 20% | | Pre-tax margin | 30.5% | 27.7% | 280 bps | Financial Condition State Street's financial condition is shaped by client deposits and short-term investments, primarily invested in a diversified portfolio of high-quality investment securities and short-duration financial instruments, with total assets of $376.72 billion as of June 30, 2025. Investment Securities The carrying value of investment securities increased to $113.89 billion as of June 30, 2025, from $106.62 billion at December 31, 2024, with approximately 97% rated "AA" or higher and an average duration of 2.0 years. - Approximately 97% of the investment securities portfolio was rated "AA" or higher as of June 30, 2025, and December 31, 2024[163] - The average duration of the investment securities portfolio, including hedges, was 2.0 years as of June 30, 2025[163] Carrying Values of Investment Securities (Millions) | Security Type | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Available-for-sale: | | | | U.S. Treasury and federal agencies | $41,678 | $34,091 | | Non-U.S. debt securities | $25,250 | $21,058 | | Asset-backed securities | $3,619 | $3,638 | | State and political subdivisions | $30 | $56 | | Other U.S. debt securities | $26 | $52 | | Total available-for-sale | $70,603 | $58,895 | | Held-to-maturity: | | | | U.S. Treasury and federal agencies | $37,589 | $41,518 | | Non-U.S. debt securities | $3,299 | $3,673 | | Asset-backed securities | $2,398 | $2,536 | | Total held-to-maturity | $43,286 | $47,727 | Loans Total loans increased to $47.28 billion as of June 30, 2025, from $43.20 billion at December 31, 2024, primarily driven by growth in fund finance loans and collateralized loan obligations, with the allowance for loan losses increasing slightly to $179 million. - Average core loans (excluding overdrafts) increased to $41.89 billion (Q2 2025) and $41.26 billion (H1 2025), driven by growth in collateralized loan obligations and fund finance loans[119] - The allowance for credit losses increased by $9 million to $192 million as of June 30, 2025, primarily due to increased loan loss reserves for certain commercial real estate loans, partially offset by charge-offs[185][187] U.S. and Non-U.S. Loans (Millions) | Loan Type | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Domestic: | | | | Fund finance | $17,366 | $16,347 | | Leveraged loans | $2,878 | $2,742 | | Overdrafts | $2,101 | $1,208 | | Collateralized loan obligations in loan form | $50 | $50 | | Other commercial and financial | $1,935 | $3,220 | | Commercial real estate | $2,551 | $2,842 | | Foreign: | | | | Fund finance | $7,120 | $6,601 | | Leveraged loans | $1,168 | $1,082 | | Overdrafts | $1,909 | $772 | | Collateralized loan obligations in loan form | $10,201 | $8,336 | | Total loans | $47,279 | $43,200 | | Allowance for loan losses | ($179) | ($174) | | Loans, net of allowance | $47,100 | $43,026 | Risk Management State Street manages various material risks inherent in the financial services industry, including credit, liquidity, operational, information technology, market, model, and strategic risks, through established policies, metrics, and stress testing. - State Street is exposed to various material risks, including credit and counterparty risk, liquidity risk, operational risk, information technology risk, market risk, model risk, and strategic risk[190] Credit and Counterparty Risk Management Credit risk is managed through an allowance for credit losses on both on-balance sheet and off-balance sheet exposures, with the Q2 2025 estimate reflecting the evolving macroeconomic environment and increased loan loss reserves for commercial real estate loans. - Credit risk is defined as the risk of financial loss if a counterparty is unable or unwilling to repay borrowings or settle a transaction[192] - The allowance for credit losses is recorded for on-balance sheet and off-balance sheet credit exposures, with estimates based on multiple economic scenarios (baseline, upside, downside)[193] - In Q2 2025, the allowance estimate increased due to the macroeconomic environment and higher loan loss reserves for commercial real estate loans, partially offset by charge-offs[194] Liquidity Risk Management State Street manages liquidity risk globally and on a stand-alone basis, employing limits, metrics, and stress testing, with the Parent Company's average daily LCR at 107% for Q2 2025 and both the Parent Company and State Street Bank exceeding the 100% minimum NSFR requirement. - Liquidity risk is managed through limits, metrics, early warning indicators, and routine stress testing, evaluating internal and external scenarios[197] - As a systemically important financial institution (G-SIB), State Street is subject to heightened regulatory liquidity requirements, including LCR and NSFR[200] Liquidity Ratios (Q2 2025) | Metric | Parent Company | State Street Bank | | :----- | :------------- | :---------------- | | Average Daily LCR | 107% | ~136% | | NSFR (as of June 30, 2025) | Above 100% | Above 100% | Operational Risk Management Operational risk is defined as the risk of loss from inadequate or failed internal processes, people, systems, or external events, with global market volatility and geopolitical tensions potentially elevating operational and information technology risk exposures. - Operational risk is the risk of loss from inadequate or failed internal processes, people, and systems or from external events[229] - Volatility in global markets and geopolitical tensions can increase operational risk and information technology risk exposures, including cyber-threats[230] Information Technology Risk Management Information technology risk encompasses risks associated with the use, ownership, operation, and adoption of IT, including non-compliance, security incidents, control gaps, and new technology adoption, where failures or attacks could result in significant costs and reputational damage. - Information technology risk is associated with the use, ownership, operation, and adoption of IT, including non-compliance, security incidents, and internal control gaps[232] - Failures, damage, attacks, or unauthorized access to IT systems could lead to significant costs, reputational damage, and impact business activities[233] Market Risk Management Market risk, defined as the risk of loss from broad market movements, is present in both trading and non-trading activities, with State Street using VaR and stressed VaR methodologies to measure trading-related market risk daily, reporting no back-testing exceptions in recent quarters. - Market risk is the risk of loss from broad market movements, such as changes in interest rates, credit spreads, and foreign exchange rates, affecting both trading and non-trading activities[234] - The company uses Value-at-Risk (VaR) and stressed VaR to measure trading-related market risk daily, with no back-testing exceptions in Q2 2025, Q1 2025, and Q2 2024[239][248] Ten-Day Value-at-Risk (VaR) Associated with Trading Activities (Q2 2025) | Category | Average (Thousands) | Maximum (Thousands) | Minimum (Thousands) | | :---------------- | :------------------ | :------------------ | :------------------ | | State Street Markets | $6,256 | $9,700 | $4,100 | | Global Treasury | $2,688 | $5,416 | $571 | | Diversification | ($2,247) | ($5,387) | ($101) | | Total VaR | $6,697 | $9,729 | $4,570 | Ten-Day Stressed Value-at-Risk (Stressed VaR) Associated with Trading Activities (Q2 2025) | Category | Average (Thousands) | Maximum (Thousands) | Minimum (Thousands) | | :---------------- | :------------------ | :------------------ | :------------------ | | State Street Markets | $45,081 | $94,077 | $22,994 | | Global Treasury | $10,520 | $15,811 | $5,363 | | Diversification | ($9,857) | ($12,500) | ($7,081) | | Total Stressed VaR | $45,744 | $97,388 | $21,276 | Model Risk Management Model risk management aims to mitigate risks arising from the widespread use of sophisticated models in financial decision-making, as model failure could significantly impact financial performance. - Model risk management mitigates risks from the widespread use of models in financial decision-making, as model failure could harm financial performance[265] Strategic Risk Management Strategic risk is defined as the impact on earnings or capital from adverse business decisions, improper implementation of initiatives, or lack of responsiveness to industry changes, managed with a long-term focus through business plans, formal review processes, and stress-testing. - Strategic risk is the impact on earnings or capital from adverse business decisions, improper strategic implementation, or unresponsiveness to industry changes[267] - Strategic risk is managed with a long-term focus, incorporating business plans, formal review processes for new proposals, and assessment techniques like scenario analysis and stress-testing[270] Capital State Street manages its capital to ensure it is commensurate with its risk profile, complies with regulatory requirements, and provides financial flexibility for strategic initiatives, being subject to additional capital surcharges and buffers as a G-SIB. - Capital management ensures alignment with risk profile, regulatory compliance, and financial flexibility for strategic initiatives[271] - As a G-SIB, State Street is subject to additional capital surcharges and buffers, including a 2% SLR buffer at the holding company and a 3% buffer at State Street Bank[272] - CET1 capital increased by $0.99 billion as of June 30, 2025, compared to December 31, 2024, due to higher net income and improved AOCI, partially offset by dividends and share repurchases[292] - Total advanced approaches RWA increased by $4.05 billion, and total standardized approach RWA increased by $11.40 billion as of June 30, 2025, compared to December 31, 2024, mainly due to higher repo-style transactions and loan balances[299][300] Regulatory Capital Ratios (State Street Corporation, June 30, 2025) | Ratio | Basel III Advanced Approaches | Basel III Standardized Approach | 2025 Minimum Requirements (Including Buffers) | | :-------------------- | :---------------------------- | :------------------------------ | :-------------------------------------------- | | Common equity tier 1 capital | 12.5% | 10.7% | 8.0% | | Tier 1 capital | 15.5% | 13.3% | 9.5% | | Total capital | 17.0% | 14.8% | 11.5% | | Tier 1 leverage | 5.3% | 5.3% | 4.0% | | Supplementary leverage ratio | 6.3% | 6.3% | N/A (buffer applies) | Off-Balance Sheet Arrangements State Street engages in off-balance sheet arrangements, primarily indemnified securities lending, where it indemnifies clients against borrower failure, with indemnified securities on loan totaling $366.34 billion as of June 30, 2025. - State Street indemnifies clients for the fair market value of securities lent in its securities lending program against borrower failure[325] Indemnified Securities Financing (Millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Fair value of indemnified securities financing | $366,337 | $310,814 | | Fair value of collateral held by us, as agent | $383,573 | $325,611 | Recent Accounting Developments State Street is evaluating recently issued accounting standards, including ASU 2024-03 (Income Statement - Expense Disaggregation Disclosures) and ASU 2023-09 (Income Taxes - Improvements to Income Tax Disclosures), not expecting a material impact from ASU 2023-09. - State Street is evaluating ASU 2024-03 (Income Statement - Expense Disaggregation Disclosures) and ASU 2023-09 (Income Taxes - Improvements to Income Tax Disclosures)[357] - The adoption of ASU 2023-09 is not expected to have a material impact on the company's financial statements[357] Quantitative and Qualitative Disclosures About Market Risk This section refers to the detailed market risk management disclosures provided earlier in the Management's Discussion and Analysis, specifically under the "Market Risk Management" section. - Quantitative and qualitative disclosures about market risk are incorporated by reference from the "Market Risk Management" section of the Management's Discussion and Analysis[329] Controls and Procedures As of June 30, 2025, management, including the CEO and CFO, concluded that State Street's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during Q2 2025. - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[330] - No material changes occurred in internal control over financial reporting during the quarter ended June 30, 2025[331] Consolidated Financial Statements This section presents the unaudited consolidated financial statements of State Street Corporation for the periods ended June 30, 2025, including statements of income, comprehensive income, condition, changes in shareholders' equity, and cash flows, along with detailed notes on accounting policies and various financial components. Consolidated Statement of Income (unaudited) The unaudited Consolidated Statement of Income shows net income of $693 million for Q2 2025 and $1,337 million for H1 2025, with diluted EPS of $2.17 for Q2 and $4.21 for H1 2025. Consolidated Statement of Income (Unaudited) - Key Figures | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | H1 2025 (Millions) | H1 2024 (Millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Total fee revenue | $2,719 | $2,456 | $5,289 | $4,878 | | Net interest income | $729 | $735 | $1,443 | $1,451 | | Total revenue | $3,448 | $3,191 | $6,732 | $6,329 | | Provision for credit losses | $30 | $10 | $42 | $37 | | Total expenses | $2,529 | $2,269 | $4,979 | $4,782 | | Income before income tax expense | $889 | $912 | $1,711 | $1,510 | | Net income | $693 | $711 | $1,337 | $1,174 | | Net income available to common shareholders | $630 | $655 | $1,227 | $1,073 | | Diluted EPS | $2.17 | $2.15 | $4.21 | $3.52 | Consolidated Statement of Comprehensive Income (unaudited) The unaudited Consolidated Statement of Comprehensive Income shows total comprehensive income of $1,164 million for Q2 2025 and $2,116 million for H1 2025, including net income and other comprehensive income (loss) components. Consolidated Statement of Comprehensive Income (Unaudited) - Key Figures | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | H1 2025 (Millions) | H1 2024 (Millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Net income | $693 | $711 | $1,337 | $1,174 | | Other comprehensive income (loss) | $471 | $55 | $779 | $40 | | Total comprehensive income | $1,164 | $766 | $2,116 | $1,214 | Consolidated Statement of Condition The unaudited Consolidated Statement of Condition shows total assets of $376,717 million as of June 30, 2025, an increase from $353,240 million at December 31, 2024, with total liabilities and shareholders' equity also increasing. Consolidated Statement of Condition (Unaudited) - Key Figures (Millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Cash and due from banks | $4,020 | $3,145 | | Interest-bearing deposits with banks | $118,835 | $112,957 | | Investment securities available-for-sale | $70,603 | $58,895 | | Investment securities held-to-maturity | $43,286 | $47,727 | | Loans (net of allowance) | $47,100 | $43,026 | | Goodwill | $7,918 | $7,691 | | Other intangible assets | $1,014 | $1,089 | | Other assets | $67,344 | $64,514 | | Total assets | $376,717 | $353,240 | | Non-interest-bearing deposits | $34,569 | $33,180 | | Interest-bearing deposits | $248,455 | $228,740 | | Total deposits | $283,024 | $261,920 | | Long-term debt | $25,911 | $23,272 | | Total liabilities | $349,410 | $327,914 | | Preferred stock | $3,559 | $2,816 | | Common stock | $504 | $504 | | Retained earnings | $30,373 | $29,582 | | Accumulated other comprehensive income (loss) | ($1,321) | ($2,100) | | Treasury stock, at cost | ($16,506) | ($16,198) | | Total shareholders' equity | $27,307 | $25,326 | Consolidated Statement of Changes in Shareholders' Equity (unaudited) The unaudited Consolidated Statement of Changes in Shareholders' Equity shows an increase in total shareholders' equity to $27,307 million as of June 30, 2025, from $25,326 million at December 31, 2024, driven by net income and other comprehensive income, partially offset by common stock repurchases and dividends. Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - Key Figures (Millions) | Metric | Dec 31, 2024 | Mar 31, 2025 | Jun 30, 2025 | | :-------------------------------- | :----------- | :----------- | :----------- | | Balance, beginning of period | $25,326 | $26,692 | $26,692 | | Net income | $644 | $693 | $693 | | Other comprehensive income (loss) | $308 | $471 | $471 | | Preferred stock issued | $743 | $0 | $0 | | Common stock acquired | ($100) | ($303) | ($303) | | Cash dividends declared (Common) | ($220) | ($217) | ($217) | | Cash dividends declared (Preferred) | ($46) | ($63) | ($63) | | Balance, end of period | $26,692 | $27,307 | $27,307 | Consolidated Statement of Cash Flows (unaudited) The unaudited Consolidated Statement of Cash Flows shows net cash used in operating activities of $6,045 million for H1 2025, net cash used in investing activities of $14,991 million, and net cash provided by financing activities of $21,911 million, with cash and due from banks increasing by $875 million to $4,020 million. Consolidated Statement of Cash Flows (Unaudited) - Key Figures (Millions) | Activity | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Net cash used in operating activities | ($6,045) | ($8,488) | | Net cash used in investing activities | ($14,991) | ($22,174) | | Net cash provided by financing activities | $21,911 | $29,513 | | Net increase (decrease) in cash and due from banks | $875 | ($1,149) | | Cash and due from banks at end of period | $4,020 | $2,898 | Note 1. Summary of Significant Accounting Policies This note outlines State Street's accounting and financial reporting policies, which conform to U.S. GAAP, emphasizing that the consolidated financial statements are unaudited and involve management estimates and assumptions. - State Street's accounting and financial reporting policies conform to U.S. GAAP[351] - The consolidated financial statements are unaudited and involve management estimates and assumptions[353][354] - The company held accounts in Russia subject to sanctions, totaling approximately $2.0 billion as of June 30, 2025[356] Note 2. Fair Value State Street carries various financial instruments at fair value on a recurring basis, including trading account assets/liabilities, AFS debt securities, and derivatives, categorized into a three-level valuation hierarchy based on the observability of market inputs. - Financial assets and liabilities carried at fair value on a recurring basis include trading account assets/liabilities, AFS debt securities, and derivative financial instruments[358] - Fair value measurements are categorized into a three-level valuation hierarchy based on the observability of market inputs[361] Total Assets Carried at Fair Value (Millions) | Category | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Trading account assets | $791 | $768 | | Available-for-sale investment securities | $70,603 | $58,895 | | Derivative instruments | $9,475 | $11,183 | | Other assets | $777 | $767 | | Total assets carried at fair value | $81,646 | $71,613 | Note 3. Investment Securities Investment securities are classified as trading, AFS, or HTM, with total amortized cost of AFS and HTM securities at $70,552 million and $43,286 million, respectively, as of June 30, 2025, and over 99% of the portfolio is publicly rated investment grade. - Investment securities are classified as trading account assets, available-for-sale (AFS), or held-to-maturity (HTM)[368] - Over 99% of the HTM and AFS investment portfolio is publicly rated investment grade as of June 30, 2025[384] - No allowance for credit losses was recorded on HTM and AFS investment securities as of June 30, 2025, and no provision or charge-offs were recorded in Q2 2025[384] Investment Securities Amortized Cost and Fair Value (Millions) | Security Type | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Amortized Cost (Dec 31, 2024) | Fair Value (Dec 31, 2024) | | :-------------------------------- | :----------------------------- | :------------------------- | :---------------------------- | :-------------------------- | | Available-for-sale: | | | | | | U.S. Treasury and federal agencies | $41,791 | $41,678 | $34,238 | $34,091 | | Non-U.S. debt securities | $25,095 | $25,250 | $21,032 | $21,058 | | Asset-backed securities | $3,609 | $3,619 | $3,627 | $3,638 | | State and political subdivisions | $30 | $30 | $56 | $56 | | Other U.S. debt securities | $27 | $26 | $53 | $52 | | Total available-for-sale | $70,552 | $70,603 | $59,006 | $58,895 | | Held-to-maturity: | | | | | | U.S. Treasury and federal agencies | $37,589 | $32,854 | $41,518 | $35,788 | | Non-U.S. debt securities | $3,299 | $3,263 | $3,673 | $3,607 | | Asset-backed securities | $2,398 | $2,368 | $2,536 | $2,511 | | Total held-to-maturity | $43,286 | $38,485 | $47,727 | $41,906 | Note 4. Loans and Allowance for Credit Losses Loans are segregated into commercial and financial, and commercial real estate segments, with total loans increasing to $47,279 million as of June 30, 2025, and the allowance for credit losses increasing to $179 million, reflecting macroeconomic conditions and commercial real estate loan loss reserves. - Loans are segregated into commercial and financial loans and commercial real estate loans, reflecting their risk characteristics and assessment methods[387] - The allowance for credit losses increased to $192 million as of June 30, 2025, primarily due to the evolving macroeconomic environment and increased loan loss reserves for certain commercial real estate loans[419] - Approximately 87% of loans were rated as investment grade as of June 30, 2025[411] Recorded Investment in Loans (Millions) | Loan Segment | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Domestic Commercial and financial | $24,326 | $23,567 | | Domestic Commercial real estate | $2,551 | $2,842 | | Foreign Commercial and financial | $20,385 | $16,777 | | Total loans | $47,262 | $43,186 | | Allowance for credit losses | ($179) | ($174) | | Loans, net of allowance | $47,100 | $43,026 | Note 5. Goodwill and Other Intangible Assets Goodwill increased to $7,918 million as of June 30, 2025, from $7,691 million at December 31, 2024, primarily due to foreign currency translation, while other intangible assets decreased to $1,014 million, with amortization of $110 million in H1 2025. Goodwill (Millions) | Segment | Dec 31, 2023 | Dec 31, 2024 | Jun 30, 2025 | | :---------------- | :----------- | :----------- | :----------- | | Investment Servicing | $7,346 | $7,428 | $7,650 | | Investment Management | $265 | $263 | $268 | | Total Goodwill | $7,611 | $7,691 | $7,918 | Other Intangible Assets (Millions) | Metric | Dec 31, 2023 | Dec 31, 2024 | Jun 30, 2025 | | :-------------------- | :----------- | :----------- | :----------- | | Ending balance | $1,320 | $1,089 | $1,014 | | Amortization (H1 2025) | N/A | N/A | ($110) | Note 6. Other Assets Other assets totaled $67,344 million as of June 30, 2025, up from $64,514 million at December 31, 2024, with key components including securities borrowed ($39,952 million), derivative instruments ($9,475 million), and bank-owned life insurance ($3,911 million). Components of Other Assets (Millions) | Asset Type | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Securities borrowed | $39,952 | $37,451 | | Derivative instruments, net | $9,475 | $11,183 | | Bank-owned life insurance | $3,911 | $3,856 | | Collateral, net | $3,710 | $3,216 | | Investments in joint ventures and other unconsolidated entities | $3,342 | $3,317 | | Right-of-use assets | $875 | $818 | | Prepaid expenses | $866 | $738 | | Deferred tax assets, net | $691 | $701 | | Receivable for securities settlement | $431 | $57 | | Income taxes receivable | $416 | $144 | | Accounts receivable | $294 | $504 | | Other | $3,381 | $2,529 | | Total | $67,344 | $64,514 | Note 7. Derivative Financial Instruments State Street uses derivative financial instruments for client needs and risk management, including FX contracts and interest rate contracts, with notional amounts of derivatives not designated as hedging instruments totaling $3.16 trillion as of June 30, 2025, primarily foreign exchange forward, swap, and spot contracts. - Derivative financial instruments are used to support client needs and manage interest rate, currency, and other market risks[426] - The aggregate fair value of derivatives with credit contingent features in a net liability position was approximately $5.75 billion as of June 30, 2025, with a maximum additional collateral requirement of $3.73 billion if triggered[444] Notional Amounts of Derivative Financial Instruments (Millions) | Derivative Type | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Not designated as hedging instruments: | | | | Foreign exchange contracts (Forward, swap and spot) | $3,046,843 | $2,612,945 | | Interest rate contracts (Futures) | $64,124 | $47,222 | | Stable value contracts | $18,894 | $25,271 | | Designated as hedging instruments: | | | | Interest rate contracts (Swap agreements) | $41,540 | $33,302 | | Foreign exchange contracts (Forward and swap) | $11,056 | $10,260 | Note 8. Offsetting Arrangements State Street nets derivatives and cash collateral from the same counterparty in its consolidated statement of condition when legally binding master netting agreements exist, with the value of securities received as collateral that can be re-pledged totaling $4.90 billion as of June 30, 2025. - Derivatives receivable/payable and cash collateral are netted in the consolidated statement of condition under legally binding master netting agreements[443] - As of June 30, 2025, the value of securities received as collateral from third parties that could be transferred or re-pledged totaled $4.90 billion[446] Note 9. Commitments and Guarantees Off-balance sheet commitments and guarantees include unfunded credit facilities totaling $35,127 million as of June 30, 2025, with approximately 71% expiring within one year, and indemnified securities financing amounting to $366,337 million. - Approximately 71% of unfunded commitments to extend credit expire within one year as of June 30, 2025[456] - As a sponsoring member in FICC, State Street provides a guarantee for customer obligations, mitigating risk through security interests in collateral[459] Off-Balance Sheet Commitments and Guarantees (Millions) | Type | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Unfunded credit facilities | $35,127 | $34,191 | | Indemnified securities financing | $366,337 | $310,814 | | Standby letters of credit | $780 | $908 | Note 10. Contingencies State Street is involved in various legal and regulatory matters, with aggregate accruals for loss contingencies totaling approximately $6 million as of June 30, 2025, and an estimated aggregate reasonably possible loss (in excess of accrued amounts) ranging up to $45 million for certain matters. - State Street is involved in disputes, litigation, and governmental/regulatory inquiries, with resolutions inherently difficult to predict[462] - As of June 30, 2025, aggregate accruals for loss contingencies for legal, regulatory, and related matters totaled approximately $6 million[466] - The estimated aggregate reasonably possible loss (in excess of accrued amounts) for certain matters ranges up to approximately $45 million as of June 30, 2025[467] - Significant legal matters include Edmar Financial Company, LLC et al v. Currenex, Inc. et al, Pension Risk Transfer Litigation, German Tax Matter, and State of Texas et al v. Blackrock, Inc. et al[471][472][475][476] Note 11. Variable Interest Entities State Street manages certain investment funds and holds investments in low-income housing and production tax credit entities, which are considered VIEs, with potential maximum loss exposure related to unconsolidated funds of $22 million and for unconsolidated tax credit entities of $1.02 billion as of June 30, 2025. - State Street manages certain investment funds and holds investments in low-income housing and production tax credit entities, which are considered Variable Interest Entities (VIEs)[480][481] Potential Maximum Loss Exposure from Unconsolidated VIEs (Millions) | Type of VIE | June 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Investment Funds | $22 | $19 | | Low-income housing and production tax credit entities | $1,020 | $1,100 | Note 12. Shareholders' Equity Total shareholders' equity increased to $27,307 million as of June 30, 2025, with this note detailing preferred stock issuances, common stock repurchases, and dividends, including $300 million of common stock repurchased and common stock dividends of $0.76 per share declared in Q2 2025. - In Q2 2025, State Street repurchased $300 million of common stock under its 2024 share repurchase program[491] Preferred Stock Issued and Outstanding (June 30, 2025) | Series | Issuance Date | Amount Outstanding (Millions) | Per Annum Dividend Rate | Redemption Date | | :----- | :------------ | :---------------------------- | :---------------------- | :-------------- | | G | April 2016 | $500 | 5.35% | March 15, 2026 | | I | January 2024 | $1,500 | 6.700% (fixed-to-floating) | March 15, 2029 | | J | July 2024 | $850 | 6.700% (fixed-to-floating) | September 15, 2029 | | K | February 2025 | $750 | 6.450% (fixed-to-floating) | September 15, 2030 | Common Stock Dividends Declared | Period | Dividends Declared per Share | Total (Millions) | | :----- | :--------------------------- | :--------------- | | Q2 2025 | $0.76 | $217 | | Q2 2024 | $0.69 | $207 | | H1 2025 | $1.52 | $437 | | H1 2024 | $1.38 | $415 | Note 13. Regulatory Capital State Street and State Street Bank exceeded all regulatory capital adequacy requirements as of June 30, 2025, with State Street Bank categorized as "well capitalized," and the company is subject to the U.S. Basel III framework and a G-SIB surcharge. - State Street and State Street Bank exceeded all regulatory capital adequacy requirements as of June 30, 2025, with State Street Bank categorized as "well capitalized"[497] Regulatory Capital Ratios (State Street Corporation, June 30, 2025) | Ratio | Basel III Advanced Approaches | Basel III Standardized Approach | 2025 Minimum Requirements (Including Buffers) | | :-------------------- | :---------------------------- | :------------------------------ | :-------------------------------------------- | | Common equity tier 1 capital | 12.5% | 10.7% | 8.0% | | Tier 1 capital | 15.5% | 13.3% | 9.5% | | Total capital | 17.0% | 14.8% | 11.5% | | Tier 1 leverage | 5.3% | 5.3% | 4.0% | Note 14. Net Interest Income This note provides a detailed breakdown of interest income and interest expense, showing total interest income of $3,055 million and total interest expense of $2,326 million for Q2 2025, resulting in net interest income of $729 million. Net Interest Income Components (Millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Interest-bearing deposits with banks | $792 | $929 | $1,561 | $1,927 | | Total investment securities | $987 | $949 | $1,952 | $1,815 | | Securities purchased under resale agreements | $179 | $166 | $344 | $333 | | Loans | $574 | $563 | $1,130 | $1,109 | | Other interest-earning assets | $523 | $391 | $990 | $703 | | Total interest income | $3,055 | $2,998 | $5,977 | $5,887 | | Interest-bearing deposits | $1,693 | $1,637 | $3,259 | $3,277 | | Securities sold under repurchase agreements | $35 | $43 | $86 | $82 | | Other short-term borrowings | $114 | $167 | $250 | $268 | | Long-term debt | $322 | $267 | $619 | $525 | | Other interest-bearing liabilities | $162 | $149 | $320 | $284 | | Total interest expense | $2,326 | $2,263 | $4,534 | $4,436 | | Net interest income | $729 | $735 | $1,443 | $1,451 | Note 15. Expenses This note provides a detailed breakdown of other expenses and repositioning charges, with total other expenses of $305 million and a $100 million repositioning charge recorded for workforce rationalization in Q2 2025. - A $100 million repositioning charge related to compensation and employee benefits from workforce rationalization was recorded in Q2 2025[504] Components of Other Expenses (Millions) | Expense Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Professional services | $107 | $111 | $217 | $221 | | Sales advertising and public relations | $39 | $34 | $64 | $59 | | Regulatory fees and assessments | $13 | $9 | $26 | $150 | | Donations | $8 | $1 | $12 | $26 | | Other | $109 | $112 | $216 | $213 | | Total other expenses | $305 | $300 | $581 | $718 | Note 16. Earnings Per Common Share This note details the computation of basic and diluted EPS, with basic EPS at $2.20 and diluted EPS at $2.17 for Q2 2025, and basic EPS at $4.27 and diluted EPS at $4.21 for H1 2025. Earnings Per Common Share (Unaudited) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income available to common shareholders (Millions) | $630 | $655 | $1,227 | $1,073 | | Basic EPS | $2.20 | $2.18 | $4.27 | $3.56 | | Diluted EPS | $2.17 | $2.15 | $4.21 | $3.52 | | Average common shares outstanding (Basic, thousands) | 286,281 | 300,564 | 287,415 | 301,278 | | Average common shares outstanding (Diluted, thousands) | 290,490 | 304,765 | 291,596 | 305,354 | Note 17. Line of Business Information This note provides a summary of financial results for State Street's two reportable segments: Investment Servicing and Investment Management, along with unallocated "Other" amounts, which the Chief Executive Officer uses to evaluate performance and allocate resources. - State Street's operations are organized into two reportable segments: Investment Servicing and Investment Management[507] - The Chief Executive Officer (CODM) uses line of business results to evaluate performance and allocate resources[508] Line of Business Income Before Tax Expense (Millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Investment Servicing | $819 | $734 | $1,476 | $1,331 | | Investment Management | $208 | $179 | $373 | $310 | | Other | ($138) | ($1) | ($138) | ($131) | | Total | $889 | $912 | $1,711 | $1,510 | Note 18. Revenue from Contracts with Customers This note disaggregates revenue by line of business and revenue stream, distinguishing between Topic 606 revenue and other revenue, with total remaining non-cancellable performance obligations of approximately $2.19 billion as of June 30, 2025. - Revenue is disaggregated by two lines of business and by revenue stream, distinguishing between Topic 606 revenue and other revenue[517] - As of June 30, 2025, total remaining non-cancellable performance obligations for services and products not yet delivered were approximately $2.19 billion[524] - Approximately half of the remaining non-cancellable performance obligations are expected to be recognized in revenue over the next three years[524] Note 19. Non-U.S. Activities This note presents financial results for non-U.S. activities, defined as revenue-producing business activities from clients serviced or managed outside the U.S., with non-U.S. total revenue of $2,856 million and income before income tax expense of $665 million for H1 2025. - Non-U.S. activities are defined as revenue-producing business activities from clients serviced or managed outside the U.S[526] - Non-U.S. assets were $100.52 billion as of June 30, 2025, up from $80.95 billion in 2024[530] Non-U.S. Financial Results (Millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Total revenue | $1,474 | $1,388 | $2,856 | $2,732 | | Income before income tax expense | $356 | $351 | $665 | $642 | Review Report of Independent Registered Public Accounting Firm Ernst & Young LLP reviewed the unaudited condensed consolidated interim financial statements for State Street Corporation and found no material modifications needed for conformity with U.S. GAAP, also confirming their unqualified audit opinion on the consolidated financial statements as of December 31, 2024. - Ernst & Young LLP reviewed the unaudited condensed consolidated interim financial statements and found no material modifications needed for conformity with U.S. GAAP[533] - An unqualified audit opinion was expressed on the consolidated financial statements as of December 31, 2024[534] PART II. OTHER INFORMATION Item 2. Unregistered Sales of Equity Securities and Use of Proceeds State Street repurchased $300 million of its common stock in Q2 2025 under the $5.0 billion common share repurchase program approved in January 2024, which has no set expiration date and is not expected to be fully executed in 2025. - State Street repurchased $300 million of common stock in Q2 2025 under its $5.0 billion 2024 share repurchase program[559] Common Share Repurchase Activity (Q2 2025) | Period | Shares Acquired (Millions) | Average Cost per Share | Total Acquired (Millions) | | :-------------------- | :------------------------- | :--------------------- | :------------------------ | | April 1 - April 30, 2025 | 3.497 | $85.78 | $300 | | May 1 - May 31, 2025 | — | — | — | | June 1 - June 30, 2025 | — | — | — | | Total | 3.497 | $85.78 | $300 | Item 5. Other Information This section discusses securities trading plans of directors and executive officers, noting that a significant portion of executive compensation is in deferred equity awards, and that no executive officers or directors adopted or terminated a Rule 10b5-1 trading plan in Q2 2025. - Executive compensation includes deferred equity awards, aligning with shareholder performance[562] - Executive officers may use Rule 10b5-1 trading plans for securities transactions[563] - No executive officers or directors adopted or terminated a Rule 10b5-1 trading plan or non-Rule 10b5-1 trading arrangement in Q2 2025[564] Item 6. Exhibits This item lists the exhibits filed with the Form 10-Q, including employment agreements, compensation arrangements, certifications, and Inline XBRL documents for the financial statements. - Exhibits include employment agreements, compensation arrangements, certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), and Inline XBRL documents for financial statements[568]