Pledged Assets

9 Months Ended

Sep. 30, 2020

Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for derivative contracts.

The following table presents Northern Trust's pledged assets.

TABLE 61: TYPE OF PLEDGED ASSETS


(In Billions)	SEPTEMBER 30, 2020		DECEMBER 31, 2019
Securities
Obligations of States and Political Subdivisions	$	1.6	$	1.0
Government Sponsored Agency and Other Securities	30.0		33.4
Loans	11.8		7.7
Total Pledged Assets	$	43.4	$	42.1

Collateral required for these purposes totaled $7.6 billion and $8.5 billion at September 30, 2020 and December 31, 2019, respectively.

The following table presents the available for sale debt securities pledged as collateral that are included in pledged assets.

TABLE 62: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS


	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE						DERIVATIVE CONTRACTS
(In Millions)	SEPTEMBER 30, 2020		DECEMBER 31, 2019		SEPTEMBER 30, 2020		DECEMBER 31, 2019
Debt Securities
Available for Sale	$	268.6	$	487.1	$	30.0	$	14.4

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $268.6 million and $487.2 million of the pledged collateral as of September 30, 2020 and December 31, 2019, respectively.

Northern Trust accepts financial assets as collateral that it is and is not permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts. The following table presents the fair value of securities accepted as collateral. There was no repledged or sold collateral at September 30, 2020 or December 31, 2019.

TABLE 63: ACCEPTED COLLATERAL


(In Millions)	SEPTEMBER 30, 2020		DECEMBER 31, 2019
Collateral that may be repledged or sold
Reverse repurchase agreements	$	1,533.4	$	707.8
Derivative contracts	30.6		16.8

Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.5 billion for the nine months ended September 30, 2020. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement to zero percent on March 26, 2020. During 2019, deposits maintained to meet Federal Reserve Bank reserve requirements averaged $1.6 billion and $1.5 billion for the three and nine months ended September 30, 2019, respectively.