Pledged and Restricted Assets

3 Months Ended

Mar. 31, 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 $5.6 billion at both March 31, 2022 and December 31, 2021.

The following table presents Northern Trust's pledged assets.

TABLE 51: TYPE OF PLEDGED ASSETS


(In Billions)	MARCH 31, 2022		DECEMBER 31, 2021
Securities
Obligations of States and Political Subdivisions	$	3.5	$	3.7
Government Sponsored Agency and Other Securities	34.8		35.6
Loans	12.9		15.3
Total Pledged Assets	$	51.2	$	54.6

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

TABLE 52: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS


	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE				DERIVATIVE CONTRACTS
(In Millions)	MARCH 31, 2022		DECEMBER 31, 2021		MARCH 31, 2022		DECEMBER 31, 2021
Debt Securities
Available for Sale	$	328.1	$	524.1	$	23.3	$	17.6

The secured parties to these transactions have the right to repledge or sell the securities as it relates to $328.1 million and $524.1 million of the pledged collateral as of March 31, 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 53: ACCEPTED COLLATERAL


(In Millions)	MARCH 31, 2022		DECEMBER 31, 2021
Collateral that may be repledged or sold
Reverse repurchase agreements (1)	$	1,888.9	$	1,457.0
Derivative contracts	0.7		2.8
Collateral that may not be repledged or sold
Reverse repurchase agreements	800.0		650.0
Total Collateral Accepted	$	2,689.6	$	2,109.8

(1) The fair value of securities collateral that was repledged or sold totaled $1,663.0 million and $1,419.0 million at March 31, 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 three months ended March 31, 2022 and March 31, 2021.