Pledged Assets

6 Months Ended

Jun. 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 57: TYPE OF PLEDGED ASSETS


(In Billions)	JUNE 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	12.2		7.7
Total Pledged Assets	$	43.8	$	42.1

Collateral required for these purposes totaled $9.0 billion and $8.5 billion at June 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 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, 2020		DECEMBER 31, 2019		JUNE 30, 2020		DECEMBER 31, 2019
Debt Securities
Available for Sale	$	35.0	$	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 $35.0 million and $487.2 million of the pledged collateral as of June 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 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 June 30, 2020 or December 31, 2019.

TABLE 59: ACCEPTED COLLATERAL


(In Millions)	JUNE 30, 2020		DECEMBER 31, 2019
Collateral that may be repledged or sold
Repurchase agreements	$	1,505.5	$	707.8
Derivative contracts	3.5		16.8

Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.8 billion for the six months ended June 30, 2020. As a result of the current 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 $1.5 billion for both the three and six months ended June 30, 2019.