Pledged and Restricted Assets

12 Months Ended

Dec. 31, 2019

Financial Instruments Owned and Pledged as Collateral [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 Federal Home Loan Bank borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, for potential Federal Reserve Bank discount window borrowings, and for derivative contracts.

The following table presents Northern Trust's pledged assets.

TABLE 141: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2019		2018
Securities
Obligations of States and Political Subdivisions	$	1.0	$	0.6
Government Sponsored Agency and Other Securities	33.4		30.9
Loans	7.7		8.1
Total Pledged Assets	$	42.1	$	39.6

Collateral required for these purposes totaled $8.5 billion and $9.3 billion at December 31, 2019 and 2018, respectively. The following table presents the available for sale debt securities pledged as collateral that are included in pledged assets.

TABLE 142: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2019		DECEMBER 31, 2018		DECEMBER 31, 2019		DECEMBER 31, 2018
Debt Securities
Available for Sale	$	487.1	$	151.5	$	14.4	$	29.0

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $487.2 million and $151.5 million of the pledged collateral as of December 31, 2019 and 2018, 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 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 December 31, 2019 or 2018.

TABLE 143: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2019		2018
Collateral that may be repledged or sold
Repurchase agreements	$	707.8	$	426.2
Derivative contracts	16.8		15.4
Collateral that may not be repledged or sold
Repurchase agreements	—		605.0

Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $1.5 billion in 2019 as compared to $1.7 billion in 2018.