Pledged and Restricted Assets

6 Months Ended

Jun. 30, 2022

Pledged 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. Collateral required for these purposes totaled $8.1 billion and $5.6 billion at June 30, 2022 and December 31, 2021, respectively.

The following table presents Northern Trust's pledged assets.

TABLE 55: TYPE OF PLEDGED ASSETS


(In Billions)	JUNE 30, 2022		DECEMBER 31, 2021
Securities
Obligations of States and Political Subdivisions	$	3.3	$	3.7
Government Sponsored Agency and Other Securities	33.5		35.6
Loans	12.2		15.3
Total Pledged Assets	$	49.0	$	54.6

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

TABLE 56: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS


	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	JUNE 30, 2022		DECEMBER 31, 2021		JUNE 30, 2022		DECEMBER 31, 2021
Debt Securities
Available for Sale	$	1,144.7	$	524.1	$	22.7	$	17.6

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $1,144.7 million and $524.1 million of the pledged collateral as of June 30, 2022 and December 31, 2021, 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.

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

TABLE 57: ACCEPTED COLLATERAL


(In Millions)	JUNE 30, 2022		DECEMBER 31, 2021
Collateral that may be repledged or sold
Reverse repurchase agreements (1)	$	4,157.3	$	1,457.0
Derivative contracts	17.2		2.8
Collateral that may not be repledged or sold
Reverse repurchase agreements	700.0		650.0
Total Collateral Accepted	$	4,874.5	$	2,109.8

(1) The fair value of securities collateral that was repledged or sold totaled $3,692.0 million and $1,419.0 million at June 30, 2022 and December 31, 2021, respectively.

Restricted Assets. 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. There were no deposits required to meet Federal Reserve Bank reserve requirements for both the six months ended June 30, 2022 and June 30, 2021.