Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are held by the counterparty until the repurchase.

The following tables summarize information related to securities purchased under agreements to resell and securities sold under agreements to repurchase.

TABLE 58: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL



($ In Millions)	2018			2017
Balance at December 31	$	1,031.2		$	1,303.3
Average Balance During the Year	1,478.3			1,832.0
Average Interest Rate Earned During the Year	2.22		%	1.48		%
Maximum Month-End Balance During the Year	1,942.0			2,064.1

TABLE 59: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE



($ In Millions)	2018			2017
Balance at December 31	$	168.3		$	834.0
Average Balance During the Year	525.2			738.9
Average Interest Rate Paid During the Year	1.48		%	0.81		%
Maximum Month-End Balance During the Year	981.3			834.0

TABLE 60: REPURCHASE AGREEMENTS ACCOUNTED FOR AS SECURED BORROWINGS



	December 31, 2018
(In Millions)	Remaining Contractual Maturity of the Agreements
Repurchase Agreements	Overnight and Continuous
U.S. Treasury and Agency Securities	$	168.3
Total Borrowings	168.3
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 27	168.3
Amounts related to agreements not included in Note 27	—