Pledged and Restricted Assets

12 Months Ended

Dec. 31, 2021

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 131: TYPE OF PLEDGED ASSETS

	FOR THE YEAR ENDED DECEMBER 31,
(In Billions)	2021		2020
Securities
Obligations of States and Political Subdivisions	$	3.7	$	2.9
Government Sponsored Agency and Other Securities	35.6		32.5
Loans	15.3		12.1
Total Pledged Assets	$	54.6	$	47.5

Collateral required for these purposes totaled $5.6 billion and $5.7 billion at December 31, 2021 and 2020, respectively.

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

TABLE 132: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS

	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	DECEMBER 31, 2021		DECEMBER 31, 2020		DECEMBER 31, 2021		DECEMBER 31, 2020
Debt Securities
Available for Sale	$	524.1	$	33.0	$	17.6	$	27.1

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $524.1 million and $33.5 million of the pledged collateral as of December 31, 2021 and 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.

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

TABLE 133: ACCEPTED COLLATERAL

	FOR THE YEAR ENDED DECEMBER 31,
(In Millions)	2021		2020
Collateral that may be repledged or sold
Reverse repurchase agreements(1)	$	1,457.0	$	1,179.8
Derivative contracts	2.8		0.9
Collateral that may not be repledged or sold
Reverse repurchase agreements	650.0		500.0
Total Collateral Accepted	$	2,109.8	$	1,680.7

(1) The fair value of securities collateral that was repledged or sold totaled $1,419.0 million at December 31, 2021. There was no repledged or sold collateral as of December 31, 2020.

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. Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.4 billion in 2020.