Pledged and Restricted Assets

12 Months Ended

Dec. 31, 2022

Financial Instruments Owned and Pledged as Collateral [Abstract]

Pledged and Restricted Assets

Pledged and Restricted Assets

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.

The following table presents Northern Trust’s pledged assets.

TABLE 129: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2022		2021
Securities
Obligations of States and Political Subdivisions	$	3.2	$	3.7
Government Sponsored Agency and Other Securities	28.2		35.6
Loans	11.8		15.3
Total Pledged Assets	$	43.2	$	54.6

Collateral required for these purposes totaled $8.7 billion and $5.6 billion at December 31, 2022 and 2021, respectively.

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

TABLE 130: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2022		DECEMBER 31, 2021		DECEMBER 31, 2022		DECEMBER 31, 2021
Debt Securities
Available for Sale	$	464.7	$	524.1	$	34.7	$	17.6

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $464.7 million and $524.1 million of the pledged collateral as of December 31, 2022 and 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 131: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2022		2021
Collateral that may be repledged or sold
Reverse repurchase agreements(1)	$	12,119.4	$	1,457.0
Derivative contracts	5.0		2.8
Collateral that may not be repledged or sold
Reverse repurchase agreements	450.0		650.0
Total Collateral Accepted(2)	$	12,574.4	$	2,109.8

(1) The fair value of securities collateral that was repledged or sold totaled $11.5 billion at December 31, 2022. There was $1.4 billion repledged or sold collateral at December 31, 2021.

(2) Higher total accepted collateral was due to increased sponsored member program activity.

Restricted Assets. Certain cash may be restricted in terms of usage or withdrawal. As a result of current events involving Ukraine and the Russian Federation and related sanctions and legal restrictions in place, cash balances denominated in Russian rubles received for the benefit of certain clients in our Asset Servicing business are subject to distribution restrictions. As of December 31, 2022, these balances totaled $330.4 million and are reported in Cash and Due from Banks on the consolidated balance sheet.

At December 31, 2022 and 2021, Northern Trust held cash of $574.2 million and $641.6 million, respectively, to meet non-U.S. reserve requirements. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the U.S. reserve requirement to zero percent on March 26, 2020. There were no deposits required to meet Federal Reserve Bank reserve requirements at December 31, 2022 and 2021.