Pledged Assets, Collateral and Restricted Assets

3 Months Ended

Mar. 31, 2024

Pledged Assets, Collateral and Restricted Assets

Pledged Assets, Accepted Collateral and Restricted Assets

Pledged Assets. For our liquidity management strategy, we may pledge loans and/or securities to various financial market utilities to allow for client payment, clearing and settlement processing as part of our custody services. We may pledge loans or securities to Central Banks, Federal Home Loan Bank (FHLB) of Chicago and third parties for various purposes, for example: securing public and trust deposits, repurchase agreements, borrowings and derivative contracts.

As of March 31, 2024 and December 31, 2023, respectively, $1.4 billion and $1.1 billion of collateral we pledge, related to loans and/or securities, is eligible to be repledged or sold by the secured party. The following table presents the carrying value of Northern Trust's pledged assets by type.

TABLE 51: TYPE OF PLEDGED ASSETS


(In Billions)	MARCH 31, 2024		DECEMBER 31, 2023
Debt Securities(1)	$	30.8	$	33.0
Loans(2)	10.6		10.3
Total Pledged Assets	$	41.4	$	43.3

(1) Debt securities are comprised of held to maturity and available for sale securities.

(2) Loans pledged at the FHLB of Chicago and the Federal Reserve Bank of Chicago.

Accepted Collateral. 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 52: ACCEPTED COLLATERAL


(In Millions)	MARCH 31, 2024		DECEMBER 31, 2023
Collateral that may be repledged or sold
Reverse repurchase agreements(1)(2)	$	66,327.9	$	62,767.8
Derivative contracts	3.6		12.2
Collateral that may not be repledged or sold
Reverse repurchase agreements	—		—
Total Collateral Accepted	$	66,331.5	$	62,780.0

(1) The fair value of securities collateral that was repledged or sold totaled $65.7 billion and $62.0 billion at March 31, 2024 and December 31, 2023, respectively.

(2) This includes collateral accepted as related to the sponsored member program. Refer to Note 20—Commitments and Contingent Liabilities for further information.

Restricted Assets. Certain cash may be restricted in terms of usage or withdrawal. As a result of the continuing military conflict 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 March 31, 2024 and December 31, 2023, these balances totaled $818.9 million and $722.2 million, respectively, and are reported in Cash and Due from Banks on the consolidated balance sheets.

At March 31, 2024 and December 31, 2023, Northern Trust held cash of $563.4 million and $575.2 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 average deposits required to meet Federal Reserve Bank reserve requirements for the three months ended March 31, 2024 and 2023, respectively.