AddedRisk Factors
We are subject to variability in our assets under custody and/or administration and assets under
STTState Street Corporation
State Street Corporation is one of the world’s leading providers of financial services to institutional investors, including investment servicing, markets and financing solutions and investment management. 10-K, Item 1
- Headquarters
- Boston, MA
- CEO
- Hanley Ronald P. O
- Next results
- around Jan 15, 2027
10-K 0000093751-26-000124 (2026-02-19) vs 10-K 0000093751-25-000111 (2025-02-13)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 24,678 | 23.9% |
| MD&A | Item 7 | 32,436 | 23.0% |
| Legal Proceedings | Item 3, via Note 13 – Contingencies | 1,260 | 16.7% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies | 1,737 | 25.8% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 300 words changed in this paragraph; it is 44% similar to last year's version.
In recent years, we have undertaken acquisitions, including our 2025 acquisition of PriceStats, our 2024 acquisition of CF Global, our 2021 acquisition of Mercatus and our 2018 acquisition of CRD. The integration of acquisitions presents risks that differ from the risks associated with our ongoing operations. Integration activities are complicated and time consuming and can involve significant unforeseen costs. We may not be able to effectively assimilate services, technologies, key personnel or businesses of acquired companies into our business or service offerings as anticipated, and we may not achieve related revenue growth or cost savings. We also face the risk of being unable to retain, or cross-sell our products or services to, the clients of acquired companies or joint ventures and the risk of being unable to cross-sell acquired products or services to our existing clients. In particular, some clients, including significant clients, of an acquired business may have the right to transition their business to other providers on short notice for convenience, fiduciary or other reasons and may take the opportunity of the acquisition or market, commercial, relationship, service satisfaction or other developments following the acquisition to terminate, reduce or renegotiate the fees or other terms of our relationship. Any such client losses, reductions or renegotiations likely will reduce the expected benefits of the acquisition, including revenues, cross-selling opportunities and market share, cause impairment to goodwill and other intangibles or result in reputational harm, which effects could be material, and we may not have recourse against the seller of the business or the client. The risk of client loss is even greater where the client is a competitor of ours or has key strategic commercial relationships with our competitors. Acquisitions of Investment Servicing businesses entail information technology systems conversions, which involve operational risks, as well as fiduciary and other risks associated with client retention. Acquisitions of Asset Management businesses similarly involve fiduciary and similar risks associated with client retention, distribution channels and additional servicing opportunities, as well as potential cultural conflicts. Acquisitions of technology firms can involve extensive information technology integration, with associated risk of defects, security breaches and resiliency lapses and product enhancement and development activities, the costs of which can be difficult to estimate, as well as heightened cultural and compliance concerns in integrating an unregulated firm into a bank regulatory environment. Joint ventures involve all of these risks, as well as risks associated with shared control and decision-making (even in majority-owned situations), minority rights and exit rights, which can delay, challenge or
Source: Item 1A, 10-K 0000093751-26-000124 vs Item 1A, 10-K 0000093751-25-000111
MD&A 204 words changed in this paragraph; it is 33% similar to last year's version.
The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues are also continue to be affected by such pressures today. Consequently, no assumption should be drawn as to future revenue run rate from announced servicing AUC/A wins, as the amount of revenue associated with AUC/A, once installed, can vary materially. On average, over the five years ended December 31, 2024, we estimate that pricing pressure with respect to existing clients has impacted our servicing fees by approximately (2)% annually, with the impact ranging from (2)% to (3)% in any given year and approximately (3)% and (2)% in 2024 and 2023, respectively. Pricing concessions can be a part of a contract renegotiation with a client including terms that may benefit us, such as extending the term of our relationship with the client, expanding the scope of services that we provide or reducing our dependency on manual processes through the standardization of the services we provide. In 2024, the impact was primarily driven by several multi-year renewals of large strategic clients. The timing of the impact of additional revenue generated by anticipated additional services and the amount of revenue generated may differ from expectations due to the impact of pricing concessions on existing services due to the necessary time required to onboard those new services or process changes, the nature of those services and client investment practices and other factors. These same market pressures also impact the fees we negotiate when we win business from new clients. materially between mandates.
Source: Item 7, 10-K 0000093751-26-000124 vs Item 7, 10-K 0000093751-25-000111
Accounting Policies 146 words changed in this paragraph; it is 49% similar to last year's version.
We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if Equity investments where we have the ability to exercise significant influence over the operations of the investee. For investee are generally accounted for under the equity method of accounting and are recorded in other assets. Income or losses from investments accounted for under the equity method, our share of income or loss is method are recorded in other fee revenue in our consolidated statement of income. Investments Equity investments that do not meeting meet the criteria for equity-method treatment are measured at fair value through earnings, except for investments in low-income housing and production tax credit entities (see Note 14 for further information) or where a one of two U.S. GAAP exceptions applies. The first exception allows Federal Reserve Bank stock, Federal Home Loan Bank stock and exchange memberships to remain accounted for at cost, less impairment. The second exception is for equity investments where fair market value is not readily available, which are accounted for under at cost, less impairment, adjusted for any observable price changes in orderly transactions for the cost method identical or a similar investment of accounting. the same issuer, with any such changes reflected in other fee revenue.
Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000093751-26-000124 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000093751-25-000111
Legal Proceedings 58 words changed in this paragraph; it is 50% similar to last year's version.
Source: Item 3, via Note 13 – Contingencies, 10-K 0000093751-26-000124 vs Item 3, via Note 13 – Contingencies, 10-K 0000093751-25-000111
Every change, by type
Sentences and paragraphs of STT's Risk Factors and MD&A, 10-K 2026-02-19 against 10-K 2025-02-13. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Transactions of this nature also involve a number of risks and financial, accounting, tax, regulatory, strategic, client relationship, managerial, operational, cybersecurity, cultural and employment challenges, which could adversely affect our consolidated results of operations and financial
AddedRisk Factors
affect us, particularly if we face increased uncertainty and unpredictability in managing our businesses.” Further, we hold a portfolio of U.S. state and municipal bonds, the value of which may be affected by the budget deficits that a number of states and municipalities currently face, resulting in risks associated with this portfolio.
AddedRisk Factors
Management Activities” in our Management’s Discussion and Analysis in this Form 10-K.
AddedRisk Factors
This was observed during the 2008 financial crisis, when economic, market, political and other factors contributed to the perception of many financial institutions and sovereign issuers as being less credit worthy. This led to credit downgrades of numerous
AddedRisk Factors
•Subcustodian risks: With the exception of the United States, Canada, Germany and the United Kingdom, we maintain subcustodian
AddedRisk Factors
agree to indemnify our clients from any loss that would arise on a default by the counterparty under these repurchase arrangements if the proceeds from the disposition of the securities or other financial assets held as collateral are less than the amount of the repayment obligation by the client’s counterparty. In such instances of counterparty default, for both securities lending and repurchase agreements, we, rather than our client, are exposed to the risks associated with collateral value.
AddedRisk Factors
constant, increases or decreases in volumes or bid-offer spreads across product mix tend to result in corresponding changes in client-related FX revenue.
AddedRisk Factors
Our return of capital to shareholders through common share repurchases and common stock dividends may be variable and is subject to various business and financial factors and regulatory requirements and approvals of our Board of Directors.
AddedRisk Factors
Stock purchases under our common share repurchase program may be made using various types of transactions, including open market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction may not be ratable over the duration of the program, may vary from reporting period to reporting period and will depend on several factors, including our capital position and our financial performance, investment opportunities, market conditions, the nature and timing of implementation of revisions to the Basel III framework and the amount of common stock issued as part of employee compensation programs. The common share repurchase program does not have specific price targets and may be suspended at any time. For information regarding our common share repurchases, refer to “Market for Registrant’s Common Equity” included under Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in this Form 10-K.
AddedRisk Factors
Federal and state banking regulations place certain restrictions on dividends paid by subsidiary banks to the parent holding company. In addition, banking regulators have the authority to prohibit bank holding companies from paying dividends. For information concerning limitations on dividends from our subsidiary banks, refer to “Related Stockholder Matters” included under Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, and to Note 15 to the consolidated financial statements in this Form 10-K. Our common stock and preferred stock dividends, including the declaration, timing and amount thereof, are subject to consideration and approval by the Board at the relevant times.
AddedRisk Factors
However, our ability to access the capital markets, if needed, on a timely basis or at all will depend on a number of factors, such as the state of
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RewordedRisk Factors
If we experience diminished financial strength or stability, actual or perceived, due to the effects of market or regulatory developments, announced or rumored business developments, consolidated results of operations, a decline in our stock price or a downgrade to our credit rating, our counterparties may be less willing to enter into transactions, secured or unsecured, with us, our clients may reduce or place limits on the level of service we provide to them or seek to transfer the business, in whole or in part, to other service providers or our prospective clients may select other service providers.
RewordedRisk Factors
Our ability to continue to attract these deposits, and other short-term funding sources such as certificates of deposit, is subject to variability based on a number of factors, including volume and volatility in global financial markets, the volume of client settlement related settlement-related activities, the interest rates that we are prepared to pay for these deposits, the loss or gain of one or more clients, client interest in reducing non-interest-bearing deposits, the perception of safety of these deposits or short-term obligations relative to alternative short-term investments available to our clients, including the capital markets, and the classification of certain deposits for regulatory purposes and related discussions we may have from time to time with clients regarding better balancing our clients’ cash management needs with our economic and regulatory objectives.
RewordedRisk Factors
These reductions may reflect changes in one or more different factors, including our business prospects and related capital needs, our capital position, proposed acquisitions or other uses of capital, the models used in our capital planning process, the supervisory models used by the Federal Reserve to stress our balance sheet, the Federal Reserve’s hypothetical economic scenarios for the supervisory stress testing process, the Federal Reserve’s stress testing instructions and the Federal Reserve’s supervisory expectations for the capital planning process.
RewordedRisk Factors
New products and services, such as State Street Alpha and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, often also involve dependencies on third parties to, among other things, access or support innovative technologies, develop new distribution channels or form collaborative product and service offerings, and can require complex strategic alliances and joint venture relationships.
RewordedRisk Factors
The occurrence of any one or more of these events may negatively affect our clients’, our counterparties’ or financial markets participants’ (including providers of financial market infrastructure) facilities, operations or personnel or may otherwise disrupt our or their business activities and resiliency capabilities, including our or their provision of products and services or the value of our or their portfolio investments, perhaps materially.
RewordedRisk Factors
Moreover, aside from any governmental enforcement or litigation activity, activity directed at us, public criticism levelled at sustainability sustainability- or ESG ESG-related investing practices, including memberships in certain climate-oriented investor groups, could result in reduced investor demand for sustainability- groups or ESG-related products, which could in turn negatively effect our assets under management and resulting fee revenues. enforcement or litigation
RewordedRisk Factors
Our settlement-related activities and obligations are also subject to regulatory risk, including the risk of regulators globally accelerating the timeline to settlement, such as the SEC’s recent rule to shorten the standard settlement cycle for securities transactions in the United States from trade date plus two business days (T+2) to trade date plus one business day (T+1) in May 2024.
RewordedRisk Factors
Any such lapses or deficiencies may materially and adversely affect our business and consolidated results of operations or consolidated financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the lapses or deficiencies, expose us to regulatory or legal proceedings, subject us to fines, penalties or judgments or harm our reputation.
RewordedRisk Factors
We have also become members of various organizations focused on climate change and other sustainability or ESG issues. issues, in order to participate in industry discussions on these topics, but we remain independent at all times in making investment decisions, developing our proxy voting and engagement policies and voting our clients’ proxies.
RewordedRisk Factors
Since the 2008 financial crisis, the level of client deposits held by us has tended to increase during times of market disruption; however, since such deposits are considered to be transitory, we have historically deposited so-called excess deposits with U.S. and non-U.S. central banks and in other highly liquid instruments.
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These requirements are distinct of from typical financial reporting constructs, constructs given their focus on the disclosure of future sustainability- or ESG-related goals metrics or targets, and targets, the strategy require distinct strategies and governance designed to achieve those targets, and reporting of relevant metrics delineating progress towards those targets. achieve.
RewordedRisk Factors
We also face potential risks associated with the enactment of various U.S. state laws aimed at sustainability- or ESG-related investing practices and proxy voting. voting, which could present conflicting or inconsistent regulatory obligations across U.S. state jurisdictions that are applicable to our management and proxy voting of public client assets in those states.
Quiet changesRisk Factors
For clients and fund investors who want an investment solution that purposefully takes into consideration sustainability or ESG factors, we offer investment funds and strategies that consider sustainability or ESG factors as a material component of the investment strategy or index methodology.
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In addition, impacts associated with a climate transition, including climate change-related legislative and regulatory initiatives and expectations, retrofitting of assets, purchasing carbon credits or paying carbon taxes, may result in operational changes and additional expenditures that could adversely affect us. us, perhaps materially.
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These risks may include negative market perception, diminished sales effectiveness effectiveness, and reputational, regulatory and litigation consequences associated with “greenwashing” claims or driven by association with clients, industries or products that may be inconsistent with our stated positions on climate change issues.
AddedMD&A
◦NII increased 1% compared to 2024, primarily driven by 11% growth in average interest-earnings assets, partially offset by a 10 bps decline in NIM.
AddedMD&A
•Notable items reduced income before income tax expense by $344 million in 2025, including repositioning charges of $326 million and other notable items of $18 million, net.
AddedMD&A
•In 2024, notable items reduced income before income tax expense by $188 million, including a net loss on sale of investment securities of $81 million related to an investment portfolio repositioning, a deferred compensation expense acceleration of approximately $79 million and other notable items of $30 million, net.
AddedMD&A
The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues continue to be affected by such pressures today. Consequently, no assumption should be drawn as to future revenue run rate from announced servicing AUC/A wins, as the amount of revenue associated with AUC/A, once installed, can vary materially between mandates.
AddedMD&A
NII increased 1% in 2025 compared to 2024, primarily driven by 11% growth in average interest-earnings assets, partially offset by a 10 bps decline in NIM.
AddedMD&A
Average investment securities were $110.59 billion in 2025, compared to $104.78 billion in 2024, primarily driven by growth in U.S. Treasuries.
AddedMD&A
securities lending transaction and we receive securities as collateral that we are permitted to transfer or re-pledge. Combined with our prime services liabilities, revenue from these activities generates securities finance fee revenue as well as net interest income.
AddedMD&A
Total headcount decreased 2% as of December 31, 2025 compared to December 31, 2024, primarily driven by our continued efforts to simplify our operations through organization design and technology and automation efforts. These impacts were partially offset by headcount growth in high-cost locations primarily to support clients and revenue generation.
AddedMD&A
(1) Weighted-average yields are calculated based on the effective yield of each security owned at the end of the period, excluding the effect of related hedges, weighted based on the face value of each security.
AddedMD&A
We segregate our loans into two segments: commercial and financial and commercial real estate. We further classify commercial and financial loans as subscription finance, fund finance loans, collateralized loan obligations, commercial, overdrafts and other loans.
AddedMD&A
Our subscription finance portfolio consists of revolving lines of credit that allow private equity and private credit fund managers to borrow against uncalled investor capital commitments. These facilities are secured by the limited partners’ commitments and the fund’s right to call capital, enabling managers across strategies, including private equity/buyout, private debt, infrastructure, secondaries, and real estate to manage capital calls, fund asset acquisitions, and mitigate timing mismatches. The uncalled capital commitments securing these facilities are predominantly from institutional investors.
AddedMD&A
Our fund finance portfolio primarily consists of loans to real money funds (RMF). RMF facilities
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REPOSITIONING CHARGES (In millions) Employee Real Estate Total Related Costs Actions Accrual Balance at December 31, 2021 $ 68 $ 6 $ 74 Accruals for Repositioning Charges 58 20 78 Payments and other adjustments (43) (21) (64) Other Total Accrual Balance at December 31, 2022 $ 83 $ 5 $ 88 Accruals for Repositioning Charges 182 21 203 Payments and other adjustments (58) (25) (83) Accrual Balance at December 31, 2023 207 1 208 Accruals for Repositioning Charges (15) 13 (2) Payments and other adjustments (96) (14) (110) Accrual Balance at December 31, 2024 96 — 96 Accruals for Repositioning Charges 211 115 326 Payments and other adjustments (99) (115) (214) Accrual Balance at December 31, 2025 $ 96 208 $ — $ 96 208
RewordedMD&A
There are three ways in which a model can be deemed “Not approved for Use” given a validation: 1) the aggregation of the model scoring within MRM’s model risk rating system is poor enough to result in a “high” rating, 2) the scoring of one or more model risk rating system element(s) is deemed “critical” resulting in an automatic “high” rating irrespective of the other elements as the “critical” element(s) undermines the model, or 3) the remediation action is not properly taken by the due date resulting in a severe compliance breach that undercuts the model rating.
RewordedMD&A
Unforeseen external events, including natural disasters, terrorist attacks, pandemics, global conflicts, or volatility in the global equity and fixed income markets driven by recent policy developments and heightened geopolitical tensions (including changes in trade policy of the United States and of other geopolitical events (including the nations, ongoing wars conflicts in Ukraine and in the Middle East), East and the recent shutdown of the U.S. federal government) may result in stress on the operating environment and increase operational risk.
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LONG-TERM CONTRACTUAL CASH OBLIGATIONS December 31, 2024 2025 Payments Due by Period (In millions) Less than 1 1-3 4-5 Over 5 Total year years years years Long-term debt(1)(2) $ 1,285 3,846 $ 9,595 6,590 $ 4,520 5,775 $ 7,756 8,810 $ 23,156 25,021 Operating leases 182 286 206 342 1,016 174 290 184 410 1,058 Finance lease and equipment financing obligations(2) 55 26 — — 81 Tax liability — 34 58 22 — — 22 114 Total contractual cash obligations $ 1,522 4,054 $ 9,929 6,938 $ 4,726 5,981 $ 8,098 9,220 $ 24,275 26,193
RewordedMD&A
On October 22, 2024, April 24, 2025, we issued $1.2 billion aggregate principal amount of 4.330% fixed rate senior notes due 2027, $300 million aggregate principal amount of floating rate senior notes due 2027, and $800 2028, $700 million aggregate principal amount of 4.675% 4.543% fixed-to-floating rate senior notes due 2032. 2028 and $1 billion aggregate principal amount of 4.834% fixed rate senior notes due 2030.
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Benefit (Exposure) Benefit (Exposure) Parallel shifts: +100 bps shock $ 82 $ 236 $ 318 $ 19 $ 292 $ 311 $ (26) $ 274 $ 248 –100 bps shock (84) (218) (302) (16) (254) (270) 4 (227) (223) Steeper yield curve: +100 bps shift in long-end rates(1) 12 16 28 28 22 50 28 11 39 -100 bps shift in short-end rates(1) (67) (202) (269) 13 (233) (220) 35 (215) (180) Flatter yield curve: +100 bps shift in short-end rates(1) 67 220 287 (9) 270 261 (53) 262 209 -100 bps shift in long-end rates(1) (23) (16) (39) (29) (22) (51) (30) (11) (41)
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Common equity tier 1 capital balance, beginning of period $ 13,799 $ 13,799 $ 12,971 $ 12,971 $ 14,547 $ 14,547 Net income 2,945 2,945 2,687 2,687 1,944 1,944 Changes in treasury stock, at cost (1,078) (1,078) (1,173) (1,173) (3,689) (3,689) Dividends declared (1,135) (1,135) (1,062) (1,062) (958) (958) Goodwill and other intangible assets, net of associated deferred tax liabilities (601) (601) 150 150 75 75 Accumulated other comprehensive income (loss)(1) 1,057 1,057 254 254 1,357 1,357 Other adjustments(1) (175) (175) (28) (28) (305) (305) Changes in common equity tier 1 capital 1,013 1,013 828 828 (1,576) (1,576) Common equity tier 1 capital balance, end of period 14,812 14,812 13,799 13,799 12,971 12,971 Additional tier 1 capital:
RewordedMD&A
Net increase (decrease) in investment securities-wholesale (234) (585) (1,927) (10) (1,000) (1,614) Net increase (decrease) in loans and overdrafts (1,467) 919 405 1,008 2,241 1,734 Net increase (decrease) in securitization exposures 630 628 359 595 592 339 Net increase (decrease) in repo-style transaction exposures 324 (558) 932 4,302 2,968 1,851 Net increase (decrease) in over-the-counter derivatives exposures(1) (1,731) 2,595 25 (7,660) 10,778 (311) Net increase (decrease) in all other(2) (180) (957) 308 2,622 (526) 1,490 Net increase (decrease) in credit risk-weighted assets (2,658) 2,042 102 857 15,053 3,489 Net increase (decrease) in market risk-weighted assets 125 (475) 987 125 (475) 987 Net increase (decrease) in operational risk-weighted assets 2,288 5,582 1,005 NA NA Total risk-weighted assets, end of period $ 114,357 $ 114,602 $ 107,453 127,263 $ 126,281 $ 111,703
RewordedMD&A
Investment Servicing Line of Business Results, increased 2% 6% in 2024 2025 compared to 2023, 2024, primarily due to as reflecting higher average market levels and net new business, excluding a previously disclosed client transition, were partially offset by pricing headwinds, a previously disclosed client transition and lower client activity and adjustments, including asset mix shift. business.
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Quiet changesMD&A
Additional information about all of our loan segments, as well as their underlying classes, is provided in Note 4 to the consolidated financial statements in this Form 10-K.
Quiet changesMD&A
Limit breaches are addressed by ERM risk managers in conjunction with the business units, escalated as appropriate, and reviewed by the TMRC if material. TMRC.
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