Pledged and Restricted Assets

6 Months Ended

Jun. 30, 2021

Transfers and Servicing [Abstract]

Pledged and Restricted Assets

Pledged and Restricted Assets

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 57: TYPE OF PLEDGED ASSETS

(In Billions)	JUNE 30, 2021		DECEMBER 31, 2020
Securities
Obligations of States and Political Subdivisions	$	3.3	$	2.9
Government Sponsored Agency and Other Securities	33.3		32.5
Loans	14.6		12.1
Total Pledged Assets	$	51.2	$	47.5

Collateral required for these purposes totaled $7.0 billion and $5.7 billion at June 30, 2021 and December 31, 2020, respectively.

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

TABLE 58: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	JUNE 30, 2021		DECEMBER 31, 2020		JUNE 30, 2021		DECEMBER 31, 2020
Debt Securities
Available for Sale	$	535.2	$	33.0	$	29.6	$	27.1

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $536.1 million and $33.5 million of the pledged collateral as of June 30, 2021 and December 31, 2020, respectively.

Northern Trust accepts financial assets as collateral that it may, in some instances, be permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts. There was no repledged or sold collateral at June 30, 2021 or December 31, 2020.

The following table presents the fair value of securities accepted as collateral.

TABLE 59: ACCEPTED COLLATERAL

(In Millions)	JUNE 30, 2021		DECEMBER 31, 2020
Collateral that may be repledged or sold
Reverse repurchase agreements	$	147.8	$	1,179.8
Derivative contracts	14.9		0.9
Collateral that may not be repledged or sold
Reverse repurchase agreements	800.0		500.0

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. Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.8 billion for the six months ended June 30, 2020.