Loading...
HomeMy WebLinkAboutR2026-077 20260518RESOLUTION NO. R2026-77 A Resolution of the City Council of the City of Pearland, Texas, accepting the City’s Investment Report for the quarter ending in March of 2026. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council hereby accepts the Quarterly Investment Report for the quarter ending in March of 2026. PASSED, APPROVED and ADOPTED this the 18th day of May, A.D., 2026. ________________________________ QUENTIN WILTZ MAYOR ATTEST: ________________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ______________________________ LAWRENCE G. PROVINS CITY ATTORNEY Docusign Envelope ID: 59AAAFD5-CCF1-8E61-8137-E468BBC48473 Resolution No. R2026-77 HilltopSecurities INVESTMENT REPORT City of Pearland January 1 to March 31, 2026 -.iii r v f ©Hilltop Securities Asset Management, LLC. All rights reserved. JAP Hilltop Securities. Contents Market Recap 3 Investment Officers' Certification 4 Portfolio Overview 5 Portfolio Overview 6 Asset Allocation 7 Credit Rating Summary 8 Benchmark Comparison 9 Fund Overview 10 Detail of Security Holdings 11 Earned Income 14 Investment Transactions 17 Investment Transactions Totals 18 Amortization and Accretion 19 Projected Cash Flows 20 Projected Cash Flows Totals 21 Disclosures & Disclaimers 22 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 2 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Market Recap Treasury yields moved significantly higher in March as investors repriced inflation risk tied to surging energy prices. The Two-yearTreasuryNote yield began the month around 3.40% and climbed as high as 4% late in the month before settling to around 3.80% at month - end. Meanwhile, stocks struggled throughout the month, with the S&P 500 posting four consecutive weekly declines and finishing 7% below its January high. The price of oil has nearly doubled since the U.S. and Israel launched strikes against Iran, who then effectively closed the Strait of Hormuz. Roughly 15% to 20% of global crude oil supply and almost 20% of global liquefied natural gas (LNG) shipments have been disrupted, prompting the International Energy Agency to call it the largest supply shock in the history of the oil market. WestTexas Intermediate crude oil surged from the mid $60's to over $100 by late -March, while gasoline, diesel and jet fuel prices rose sharply.The spike in oil prices has fed directly into higher short-term inflation expectations. The Federal Open Market Committee (FOMC) met March 17th and 18th, voting to hold the Fed Funds target rate at 3.50% to 3.75% for the second consecutive meeting. Chairman Powell and policymakers emphasized that higher energy prices risk delaying further progress on inflation and warned against assuming the shock would be transitory given repeated supply disruptions over the last five years. The updated dot plot showed fewer expected cuts in 2026, and futures markets moved to essentially price out any easing moves this year. Chair Powell described current policy as"near neutral"with limited room to respond unless labor market conditions deteriorate further. Economic data released during the month painted a mixed picture. The February jobs report showed payrolls falling by 92k, the fifth negative print in the last nine months, while prior months were also revised lower. The unemployment rate rose to 4.4% as job losses spread beyond cyclical sectors and into health care for the first time in years. While seasonal factors and strike activity played a role, the broader trend confirms that labor market momentum has stalled since last Spring. At the same time, inflation readings moved in the wrong direction, February PPI surged to a whopping 0.7% MoM and Core PCE remained elevated at 3.1 %YoY Fourth quarter GDP was revised down to just +0.7%, highlighting a sharp deceleration from the economy's strong mid -2025 pace. Consumer spending growth slowed significantly, particularly in services, and the impact from the government shutdown continues to affect official data.The Atlanta Fed's GDPNow model estimates 2.0% to 3.0% growth in the first quarter, but rising oil prices threaten to offset recent tax -cut -related gains in household cash flows, especially for lower -income consumers. Elsewhere, stress intensified in private credit, raising concerns about liquidity conditions in other markets as well. Multiple fund managers enacted redemption limits or halted withdrawals altogether as concerns grew about credit exposure to software companies and other Al -vulnerable businesses. Gold, which had rallied sharply earlier in the year, fell nearly 10% over the month as higher real rates and dollar strength outweighed the usual safe - haven demand. Looking ahead, markets enter April facing slow employment growth, resurging inflationary pressures from energy, and a Federal Reserve that has little flexibility. While a ceasefire or reopening of the Strait of Hormuz could spark a sharp relief rally, the baseline outlook has shifted toward elevated volatility and downside risks. Until there is clarity on energy supply and the durability of inflation pressures, the Fed is set to remain on hold, while markets remain vulnerable to further surprises. ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 3 Hilltop Securities. City of Pearland As of March 31, 2026 Investment Officers' Certification This report is prepared for the City of Pearland (the"Entity') in accordance with Chapter 2256 of the Texas Public Funds Investment Act ("PFIA'). Section 2256.023(a) of the PFIA states that:"Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of the investment transactions for all funds covered by this chapter for the preceding reporting period."This report is signed by the Entity's investment officers and includes the disclosures required in the PFIA. The investment portfolio complied with the PFIA and the Entity's approved Investment Policy and Strategy throughout the period. All investment transactions made in the portfolio during this period were made on behalf of the Entity and were made in full compliance with the PFIA and the approved Investment Policy. Investment Officers Tenecha Williams Interim Director of Finance Par L stir Danya Luong Controller chew Trim& Chan Tran Senior Financial Analyst ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 4 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Portfolio Overview Portfolio Summary Prior 31 Dec -25 Current 31 Mar -26 Pa r Value 517,772,078.07 510,433,053.56 Original Cost 517,854,468.72 510,506,459.84 Book Value 517,824,015.89 510,455,352.17 Market Value 518,123,912.02 510,564,871.01 Accrued Interest 1,193,568.82 1,550,935.96 Book Value Plus Accrued 519,017,584.71 512,006,288.14 Market Value Plus Accrued 519,317,480.84 512,115,806.97 Net Unrealized Gain/(Loss) 299,896.13 109,518.84 Asset Allocation • AGCY 1.96% AGCY CALL 1.96% • BANK DEP 2.83% • LGIP 30.29% • MMFUND 54.14% ▪ U 5 GOVT 8,82% Income Summary Current Period 1 Jan -26 to 31 Mar -26 Interest Income 4,809,788.80 Net Amortization/Accretion (20,654.84) Realized Gain/(Loss) 0.00 Net Income 4,789,133.96 Fiscal Year -to -Date 1 Oct -25 to 31 Mar -26 Net Income Transaction Summary 9,737,421.24 Portfolio Characteristics Prior 31 Dec -25 Current 31 Mar -26 Yield to Maturity 3.745% 3.572% Yield to Worst 3.745% 3.572% Days to Final Maturity 53 74 Days to Effective Maturity 53 67 Duration 1.56 1.34 Transaction Type Quantity Principal Interest Total Amount Realized Gain/Loss Buy 20,000,000.00 09,991,015.63) (9,476.90) (20,000,492.53) 0.00 Coupon 0.00 0.00 93,750.00 93,750.00 0.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 5 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Portfolio Overview Maturity Distribution by Security Type Top Ten Holdings 100x',6 5O% AGCY 1.90% AGCY CALL 11,96% • BANK DEP 2.83% • LGIP 30.29% • MMFUND 54.14% • US GOVT 8.92% 87.3 P.O 2.0 5.9 3.9 It tt to -1 -� -1 1 Maturity Distribution by Security Type Issuer Allocation Wf TXCLASS United States LOGIC TEXSTAR Federal Home Loan Banks Federal Farm Credit Banks Funding Corporation Regions 56.96% 21.17% 8.82% 6.98% 2.15% 1.96% 1.96% 0.01% Security Type Overnight 0-3 Months 3-6 Months 6-9 Months 9-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Portfolio Total AGCY AGCY CALL BANK DEP LGIP MMFUND US GOVT 14,427,638.79 154,641,139.32 276,364,275.45 4,996,763.19 10,047,818.00 9,986,727.57 10,000,000.00 20,041,92044 9,949,069.41 9,986,727.57 10,000,000.00 14,427,638.79 154,641,13932 276,364,275.45 45,035,571.05 Total 445,433,053.56 — 4,996,763.19 10,047,818.00 — 30,041,920.44 19,935,796.98 510,455,352.17 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 6 Hilltop Securities. City of Pearland As of March 31, 2026 Asset Allocation Asset Allocation by Security Type as of Asset Allocation by Security Type as of 31 -Dec -2025 • AGCY 1.93% • BANK DEP 1.23% • LGIP 2939% ▪ MMFUNO 60.48% • US GOVT 6.77% Book Value Basis Security Distribution 31 -Ma r-2026 • AGCY 1.96% • AGCY CALL 1.96% • BANK DEP 2.83% • LGIP 30.29% ▪ MMFUNIP 54.14% ▪ USGOVT 8.82% Security Type Prior Balance Prior Allocation 31 -Dec -25 31 -Dec -25 Change in Allocation Current Balance 31 -Mar -26 Current Allocation 31 -Mar -26 Yield to Maturity AGCY 9,985,287.62 1.93% 0.03% 9,986,727.57 1.96% 3.939% AGCY CALL 0.00 0.00% 1.96% 10,000,000.00 1.96% 4.100% BANK DEP 6,390,546.37 1.23% 1.59% 14,427,638.79 2.83% 0.290% LGIP 153,198,403.54 29.59% 0.71% 154,641,139.32 30.29% 3.770% MMFUND 313,183,128.16 60.48% (6.34%) 276,364,275.45 54.14% 3.540% US GOVT 35,066,650.20 6.77% 2.05% 45,035,571.05 8.82% 3.944% Portfolio Total 517,824,015.89 100.00% 510,455,352.17 100.00% 3.572% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 7 Hilltop Securities. City of Pearland As of March 31, 2026 Credit Rating Summary Rating Distribution Book Value Portfolio Alloc Secured Deposits (Insured or Collateralized) Demand Deposits 14,427,638.79 2.83% Total Secured Deposits 14,427,638.79 2.83% Local Government Investment Pools & Money Market Funds AAA 431,005,414.77 84.44% Total Local Government Investment Pools & Money Market Funds 431,005,414.77 84.44% Long Term Rating Distribution AA 65,022,298.61 12.74% Total Long Term Rating Distribution 65,022,298.61 12.74% Portfolio Total 510,455,352.17 100.00% Allocation by Rating 12.74, • AAA 84.44% • SD 2.83% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 8 Hilltop Securitiesw4* City of Pearland As of March 31, 2026 Benchmark Comparison 5,0096 4.00% 100% — City of Pea rland 6MonthCMT - TexStar v1` ° ¢ 4.1 y may' , '��, r?-) ' y, o `,�h ti .y1 , Y6;y� Yield Overview Apr -24 May -24 Jun -24 Jul -24 Aug -24 Sep -24 Oct -24 Nov -24 Dec -24 Jan -25 Feb -25 Mar -25 Apr -25 May -25 Jun -25 Jul -25 Aug -25 Sep -25 Oct -25 Nov -25 Dec -25 Jan -26 Feb -26 Mar -26 City of Pearland - 4.84 4.59 4.59 4.44 424 421 4.18 4.43 438 433 432 4.06 3.98 4.13 3.89 3.75 3.63 3.61 357 6 Month CMT 5.33 533 534 5.34 5.29 5.16 5.00 4.84 4.66 4.50 4.39 434 430 4.28 4.27 4.28 4.25 4.18 4.11 4.02 3.91 3.79 3.71 3.68 TexStar 531 531 531 5.31 5.29 5.13 4.87 4.71 4.56 4.39 4.36 434 433 430 4.28 4.30 4.29 4.21 4.12 3.98 3.82 3.71 3.68 3.65 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 9 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Fund Overview Fund Name Prior Book Value Prior Market Value Changes to Market Current Book Value Current Market Value Net Income Days to Final Mty YTM YTW Value 100 -General Fund 200 - Debt Service Fund 300- Special Revenue Fund 350 - Grant Fund 500-CIP Bond Fund 550 - Water & Sewer Bond Fund 600 - Water & Sewer Operating Fund 700- Internal Service Fund 800- Long-term Debt Fund 900-PEDC 920 - DAP 930-TIRZ 940- PID Smith Ranch Rd 32,011,372.12 32,097,254.50 38,339,854.41 70,415,456.48 70,437,108.91 25,112,708.05 25,112,708.05 (12,075,585.94) 13,037,122.11 13,037,122.11 13,735,12339 13,735,123.39 (5,883,709.75) 7,851,413.64 7,851,413.64 339,034.51 339,034.51 3,200.57 342,235.08 342,235.08 100,875,846.97 100,875,846.97 (3,886,603.40) 96,989,243.57 96,989,243.57 199,456,817.86 199,488,867.82 (33,991,112.22) 165,471,732.74 165,497,755.60 52,854,597.10 53,036,560.89 (5,102,291.60) 47,872,425.75 47,934,269.29 27,370,156.53 27,370,156.53 (431,228.91) 26,938,927.62 26,938,927.62 148,955.17 148,955.17 (148,955.17) 0.00 0.00 47263,619.65 47263,619.65 (247,606.35) 47,016,01330 47,016,013.30 4,670,345.91 4,670,345.91 (675,880.17) 3,994,465.74 3,994,465.74 13,985,438.63 13,985,438.63 10,880,640.48 24,866,079.11 24,866,079.11 0.00 0.00 5,660,237.04 5,660,237.04 5,660,237.04 772,906.50 0.00 113,382.66 17,473.95 1,191,653.75 1,576,447.67 364,493.54 216,117.39 0.00 217 3.726% 3.726% 1 3.542% 3.542% 1 3.725% 3.725% 1 3.776% 3.776% 1 3.674% 3.674% 63 3.638% 3.638% 248 3.740% 3.740% 1 3.553% 3.553% 403,948.56 1 3.700% 3.700% 5,655.57 1 0.510% 0.510% 127,054.37 1 3.029% 3.029% 0.00 1 0.000% 0.000% Total 517,824,015.89 518,123,912.02 (7,559,041.01) 510,455,352.17 510,564,871.01 4,789,133.96 74 3.572% 3.572% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 10 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Detail of Security Holdings CUSIP Security Maturity Next Call Purch Settle Date Security Description CPN Date Date Call Type Par Value Price Original Cost Book Value Type Mkt Market Value Days Days to YTM YTW Rating Price to Mty Call 100 -General Fund TXCLASS WF-GVIXX WFPRLDCOMCK LGIP Texas CLASS MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) BANK DEP Wells Fargo - Commercial Cking 3130BA2C0 03/24/26 AGCY CALL FHLB 3133ETJZ1 06/05/25 AGCY FFCB 3.776 03/31/26 03/31/26 0.000 03/31/26 15,652,836.20 100.000 15,652,836.20 15,652,836.20 100.000 15,652,836.20 1 34,715,772.71 100.000 34,715,772.71 34,715,772.71 100.000 34,715,772.71 1 60,120.00 100.000 60,120.00 60,120.00 100.000 60,120.00 1 3.776 3.776 AAA 3.540 3.540 AAA 0.000 0.000 SD 4.100 03/24/28 03/24/27 Quarterly 10,000,000.00 100.000 10,000,000.00 10,000,000.00 100.084 10,008,390.00 724 358 4.100 4.100 M+ 3.875 06/05/28 10,000,000.00 99.820 9,982,000.00 9,986,727.57 100.000 9,999,990.00 797 3.939 3.939 M+ Total 100 -General Fund 200- Debt Service Fund TXCLASS WF-GVIXX LGIP Texas CLASS 3.776 03/31/26 MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 70,428,728.91 70,410,728.91 70,415,456.48 70,437,108.91 217 358 3.726 3.726 1 101,862.27 100.000 101,862.27 101,862.27 100.000 101,862.27 1 3.776 3.776 AAA 03/31/26 12,935,259.84 100.000 12,935,259.84 12,935,259.84 100.000 12,935,259.84 1 3.540 3.540 AAA Total 200 - Debt Service Fund 300 -Special Revenue Fund TXCLASS WF-GVIXX LGIP Texas CLASS 3.776 03/31/26 MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 13,037,122.11 13,037,122.11 13,037,122.11 13,037,122.11 1 3542 3542 6,143,234.91 100.000 6,143,234.91 6,143,234.91 100.000 6,143,234.91 1 3.776 3.776 AAA 03/31/26 1,708,178.73 100.000 1,708,178.73 1,708,178.73 100.000 1,708,178.73 1 3.540 3.540 AAA Total 300 - Special Revenue Fund 350- Grant Fund TXCLASS LGIP Texas CLASS 3.776 03/31/26 7,851,413.64 7,851,413.64 7,851,413.64 7,851,413.64 1 3.725 3.725 342,235.08 100.000 342,235.08 342,235.08 100.000 342,235.08 1 3.776 3.776 AAA Total 350 - Grant Fund 500- CIP Bond Fund LOGIC TEXSTAR TXCLASS LGIP LOGIC LGIP TexSTAR LGIP Texas CLASS 3.788 03/31/26 3.651 03/31/26 3.776 03/31/26 342,235.08 342,235.08 342,235.08 342,235.08 1 3.776 3.776 19,246,787.57 100.000 19,246,787.57 19,246,787.57 100.000 19,246,787.57 1 3.788 3.788 AAA 10,977,644.25 100.000 10,977,644.25 10,977,644.25 100.000 10,977,644.25 1 3.651 3.651 AAA 29,653,371.23 100.000 29,653,371.23 29,653,371.23 100.000 29,653,371.23 1 3.776 3.776 AAA ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 11 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Detail of Security Holdings CUSIP Security Maturity Next Call Purch Mkt Days Days to Settle Date Security Description CPN Date Date Call Type Par Value Price Original Cost Book Value Price Market Value YTM YTW Rating Type to Mty Call WF-GVIXX WFPRLDCOMCK MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) BANK DEP Wells Fargo - Commercial Cking 03/31/26 37,108,669.41 100.000 37,108,669.41 37,108,669.41 100.000 37,108,669.41 1 0.000 03/31/26 3.540 3.540 MA 2,771.11 100.000 2,771.11 2,771.11 100.000 2,771.11 1 0.000 0.000 SD Total 500-CIP Bond Fund 96,989,243.57 96,989,243.57 96,989,243.57 96,989,243.57 1 3.674 3.674 550 -Water & Sewer Bond Fund LOGIC LGIP LOGIC 3.788 03/31/26 16,363,769.14 100.000 16,363,769.14 16,363,769.14 100.000 16,363,769.14 1 3.788 3.788 MA TXCLASS LGIP Texas CLASS 3.776 03/31/26 14,818,674.70 100.000 14,818,674.70 14,818,674.70 100.000 14,818,674.70 1 3.776 3.776 MA WF-GVIXX MMFUND Wells Fargo Gay MM 03/31/26 109,253,593.01 100.000 109,253,593.01 109,253,593.01 100.000 109,253,593.01 1 3.540 3.540 AM Sweep (Allspring) (GVIXX) 91282CLH2 08/29/25 US GOVT U.S.TreasuryNote 3.750 08/31/26 5,000,000.00 99.844 4,992,187.50 4,996,763.19 99.992 4,999,609.35 153 3.910 3.910 AA+ 91282C1K8 08/29/25 US GOVT U.S.TreasuryNote 4.625 11/15/26 10,000,000.00 100.918 10,091,796.90 10,047,818.00 100.500 10,050,000.00 229 3.838 3.838 M+ 91282CMS7 03/24/26 US GOVT U.S.TreasuryNote 3.875 03/15/28 10,000,000.00 99.910 9,991,015.63 9,991,114.69 100.121 10,012,109.40 715 3.922 3.922 AA+ Total 550 - Water & Sewer Bond Fund 165,436,036.85 165,511,036.88 165,471,732.74 165/497,755.60 63 3.638 3.638 600 -Water & Sewer Operating Fund TXCLASS LGIP Texas CLASS 3.776 03/31/26 Wells Fargo Gov MM WF GVIXX MMFUND 03/31/26 Sweep (Allspring) (GVIXX) 91282CKR1 06/09/25 US GOVT U.S.TreasuryNote 4.500 05/15/27 91282CND9 06/09/25 US GOVT U.S.TreasuryNote 3.750 05/15/28 210,965.94 100.000 210,965.94 210,965.94 100.000 210,965.94 1 3.776 3.776 MA 27,661,584.65 100.000 27,661,584.65 27,661,584.65 100.000 27,661,584.65 1 3.540 3.540 MA 10,000,000.00 100.859 10,085,937.50 10,050,805.75 100.738 10,073,828.10 410 4.032 4.032 M+ 10,000,000.00 99.305 9,930,468.75 9,949,069.41 99.879 9,987,890.60 776 4.003 4.003 AA+ Total 600 -Water & Sewer Operating Fund 47,872,550.59 47,888,956.84 47,872,425.75 47,934,269.29 248 3.740 3.740 700- Internal Service Fund TXCLASS WF-GVIXX LGIP Texas CLASS 3.776 03/31/26 MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 9,267,220.52 100.000 9,267,220.52 9,267,220.52 100.000 9,267,220.52 1 3.776 3.776 MA 03/31/26 17,070,090.98 100.000 17,070,090.98 17,070,090.98 100.000 17,070,090.98 1 3.540 3.540 MA ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 12 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Detail of Security Holdings CUSIP Security Maturity Next Call Purch Mkt Days Days to Settle Date Security Description CPN Date Date Call Type Par Value Price Original Cost Book Value Price Market Value VIM YTW Rating Type to Mty Call WFPRLDBUS+ WFPRLDCOM+ BANK DEP Wells Fargo - Business Cking Plus BANK DEP Wells Fargo - Commercial Cking (Int) 0.480 03/31/26 0.480 03/31/26 515,935.47 100.000 515,935.47 515,935.47 100.000 515,935.47 1 0.480 0.480 SD 85,680.65 100.000 85,680.65 85,680.65 100.000 85,680.65 1 0.480 0.480 SD Total 700 -Internal Service Fund 900- PEDC TXCLASS WF-GVIXX LGIP Texas CLASS 3.776 03/31/26 MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 03/31/26 26,938,927.62 26,938,927.62 26,938,927.62 26,938,927.62 1 3.553 3.553 31,862,537.51 100.000 31,862,537.51 31,862,537.51 100.000 31,862,537.51 1 3.776 3.776 AAA 15,153,475.79 100.000 15,153,475.79 15,153,475.79 100.000 15,153,475.79 1 3.540 3.540 AAA Total 900 - PEDC 920- DAP RGNPRLDTSWP WF-GVIXX WFPRLDBUS+ MMFUND Regions BkTrustSweep 03/31/26 MMFUND Wells Fargo Gov MM 03/31/26 Sweep (Allspring) (GVIXX) BANK DEP Wells Fargo Business 0.480 03/31/26 Cking Plus 47,016,01330 47,016,013.30 47,016,013.30 47,016,01330 1 3.700 3.700 39,589.12 100.000 39,589.12 39,589.12 100.000 39,589.12 1 3.280 3.280 AAA 2,910.81 100.000 2,910.81 2,910.81 100.000 2,910.81 1 3.540 3.540 AAA 3,951,965.81 100.000 3,951,965.81 3,951,965.81 100.000 3,951,965.81 1 0.480 0.480 SD Total 920 - DAP 930-TIRZ WF-GVIXX WFPRLDCOM+ MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) BANK DEP Wells Fargo - Commercial Cking (Int) 3,994,465.74 3,994,465.74 3,994,465.74 3,994,465.74 1 0.510 0.510 03/31/26 20,715,150.40 100.000 20,715,150.40 20,715,150.40 100.000 20,715,150.40 1 3.540 3.540 AAA 0.480 03/31/26 4,150,928.71 100.000 4,150,928.71 4,150,928.71 100.000 4,150,928.71 1 0.480 0.480 SD Total 930 -TIRZ 940- PID Smith Ranch Rd WFPRLDCOMCK BANK DEP Wells Fargo Commercial 0.000 03/31/26 Cking 24,866,079.11 24,866,079.11 24,866,079.11 24,866,079.11 1 3.029 3.029 5,660237.04 100.000 5,660,237.04 5,660,237.04 100.000 5,660,237.04 1 0.000 0.000 SD Total 940 - PID Smith Ranch Rd 5,660,237.04 5,660,237.04 5,660,237.04 5,660,237.04 1 0.000 0.000 Grand Total 510,433,053.56 510,506,459.84 510,455,352.17 510,564,871.01 74 358 3572 3572 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 13 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Earned Income CUSIP Security Type Detailed Security Description Beginning Accrued Interest Interest Rec'd/ Earned Sold/Matured Interest Purchased Ending Accrued Disc Accr/Prem Net Realized Amort Gain/Loss Net Income 100 - General Fund TXCLASS WF-GVIXX WFPRLDCOMCK 3130BA2C0 3133ETJZ1 LGIP MMFUND BANK DEP AGCY CALL AGCY Texas CLASS Wells Fargo Gov MM Sweep (Allspring) (GVIXX) Wells Fargo - Commercial Cking FHLB 4.1 03/24/2028 FFCB 3.875 06/05/2028 0.00 93,933.11 0.00 0.00 27,986.11 175,433.04 491,186.29 0.00 7,972.22 96,875.00 175,433.04 468,352.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 116,766.51 0.00 7,972.22 124,861.11 0.00 0.00 0.00 0.00 1,439.94 0.00 0.00 0.00 0.00 0.00 175,433.04 491,186.29 0.00 7,972.22 98,314.94 Total 100 - General Fund 200- Debt Service Fund TXCLASS LGIP Texas CLASS WF-GVIV MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 121,91922 0.00 0.00 771,46655 0.00 0.00 643,785.93 0.00 0.00 0.00 0.00 0.00 249,599.84 0.00 0.00 1,439.94 0.00 0.00 0.00 0.00 0.00 772,90650 0.00 0.00 Total 200 - Debt Service Fund 300 -Special Revenue Fund TXCLASS WF-GVIXX LGIP Texas CLASS MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 0.00 0.00 19,217.29 0.00 57,451.29 55,931.37 0.00 57,451.29 54,153.91 0.00 0.00 0.00 0.00 0.00 20,994.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 57,451.29 55,931.37 Total 300 - Special Revenue Fund 350 -Grant Fund TXCLASS WF-GVIXX LGIP Texas CLASS MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVI)X) 19,217.29 0.00 10,452.17 113,382.66 3,200.57 14,273.38 111,60520 3,200.57 24,725.55 0.00 0.00 0.00 20,994.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 113,382.66 3,200.57 1427338 Total 350 -Grant Fund 500-CIP Bond Fund LOGIC LGIP TEXSTAR LGIP TXCLASS LGIP WF-GVIXX MMFUND LOGIC TexSTAR Texas CLASS Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 10,452.17 0.00 0.00 0.00 211,067.14 17,473.95 180,120.78 98,968.03 249,221.15 663,343.79 27,926.12 180,120.78 98,968.03 249,221.15 648,383.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 226,027.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,473.95 180,120.78 98,968.03 249,221.15 663,343.79 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 14 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Earned Income CUSIP Security Type Detailed Security Description Beginning Accrued Interest Interest Rec'd/ Earned Sold/Matured Interest Purchased Ending Accrued Disc Accr/Prem Net Realized Amort Gain/Loss Net Income WFPRLDCOMCK BANK DEP Wells Fargo - Commercial Cking 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 500 - CIP Bond Fund 550 -Water & Sewer Bond Fund LOGIC TXCLASS WF-GVIXX 91282CLH2 91282CJK8 91282CMS7 LGIP LGIP MMFUND US GOVT US GOVT US GOVT LOGIC Texas CLASS Wells Fargo Gov MM Sweep (Allspring) (GVIXX) U.S. Treasury Note 3.75 08/31/2026 U.S. Treasury Note 4.62511/15/2026 U.S.Treasury Note 3.875 03/15/2028 211,067.14 1,191,653.75 1,176,693.64 0.00 153,140.13 153,140.13 0.00 109,797.21 109,797.21 440,526.07 1,160,578.87 1,240,649.76 63,708.56 46,345.78 93,750.00 60,048.34 114,986.19 0.00 0.00 8,423.92 0.00 0.00 226,02725 0.00 0.00 1,191,653.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 360,455.18 0.00 0.00 16,304.35 1,912.93 0.00 175,034.53 (18,836.42) (9,476.90) 17,900.82 99.06 0.00 153,140.13 0.00 109,797.21 0.00 1,160,578.87 0.00 48,258.71 0.00 96,149.77 0.00 8,522.98 Total 550 -Water & Sewer Bond Fund 600 -Water & Sewer Operating Fund TXCLASS WF-GVIXX 91282CKR1 91282CND9 LGIP MMFUND US GOVT US GOVT Texas CLASS Wells Fargo Gov MM Sweep (Allspring) (GVIXX) U.S. Treasury Note 4.5 05/15/2027 U.S. Treasury Note 3.75 05/15/2028 564,282.98 1,593,272.10 1,597,337.10 0.00 43,264.64 58,425.41 48,687.85 30,759.49 133,893.91 111,878.45 93,232.04 30,759.49 132,403.21 0.00 0.00 (9,476.90) 0.00 0.00 0.00 0.00 569,694.87 0.00 44,755.34 170,303.87 141,919.89 (16,824.43) 0.00 0.00 (10,964.75) 5,694.40 0.00 1,576,447.67 0.00 0.00 0.00 0.00 30,759.49 133,893.91 100,913.70 98,926.44 Total 600 -Water & Sewer Operating Fund 700- Internal Service Fund TXCLASS WF-GVIXX WFPRLDBUS+ WFPRLDCOM+ LGIP MMFUND BANK DEP BANK DEP Texas CLASS Wells Fargo Gov MM Sweep (Allspring) (GVIXX) Wells Fargo - Business Cking Plus Wells Fargo - Commercial Cking (Int) 150,377.90 0.00 44,805.31 0.00 0.00 369,763.90 86,666.68 128,389.05 939.31 122.35 163,162.70 86,666.68 131,235.32 939.31 122.35 0.00 0.00 0.00 0.00 0.00 356,979.10 0.00 41,959.04 0.00 0.00 (5,270.35) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 364,493.54 86,666.68 128,389.05 939.31 12235 Total 700 -Internal Service Fund 900-PEDC 44,805.31 216,11739 218,963.66 0.00 41,959.04 0.00 0.00 216,11739 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 15 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Earned Income CUSIP Security Type Detailed Security Description Beginning Accrued Interest Interest Rec'd/ Interest Ending Disc Accr/Prem Net Realized Earned Sold/Matured Purchased Accrued Amort Gain/Loss Net Income TXCLASS WF-GVIXX LGIP Texas CLASS MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) 0.00 297,977.21 297,977.21 39,440.45 105,971.35 109,275.11 0.00 0.00 0.00 36,136.69 0.00 0.00 297,977.21 0.00 0.00 105,971.35 Total 900- PEDC 920 -DAP RGNPRLDTSWP MMFUND Regions BkTrust Sweep WF-GVIXX MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) WFPRLDBUS+ BANK DEP Wells Fargo - Business Cking Plus 39,440.45 403,948.56 407,25232 0.00 36,136.69 0.00 0.00 403,948.56 132.66 491.03 485.89 0.00 137.80 0.00 0.00 491.03 7.58 18.93 19.57 0.00 6.94 0.00 0.00 18.93 0.00 5,145.61 5,145.61 0.00 0.00 0.00 0.00 5,145.61 Total 920 - DAP 930-TIRZ WF-GVIXX MMFUND Wells Fargo Gov MM Sweep (Allspring) (GVIXX) WFPRLDCOM+ BANK DEP Wells Fargo - Commercial Cking (Int) 14024 5,65557 5,651.07 0.00 144.74 0.00 0.00 5,65557 31,866.12 122,443.72 104,910.16 0.00 49,399.68 0.00 0.00 122,443.72 0.00 4,610.65 4,610.65 0.00 0.00 0.00 0.00 4,610.65 Total 930 -TIRZ 940- PID Smith Ranch Rd WFPRLDCOMCK BANK DEP Wells Fargo - Commercial Cking 31,866.12 127,05437 109,520.81 0.00 49,399.68 0.00 0.00 127,054.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 940 - PID Smith Ranch Rd 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Grand Total 1,193,568.82 4,809,788.80 4,461,898.55 (9,476.90) 1,550,935.96 (20,654.84) 0.00 4,789,133.96 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 16 Hilltop Securitiesw40 City of Pearland January 1, 2026 - March 31, 2026 Investment Transactions CUSIP Trade Date Settle Date Security Type Security Description Coupon Maturity Call Date Par Value Price Date Principal Amount Interest Realized Gain/ Purchased/ Total Amount YTM YTW Loss Received 100 -General Fund Buy 3130BA2C0 03/20/26 03/24/26 AGCY CALL FIILB 4.100 03/24/28 03/24/27 10,000,000.00 100.000 10,000,000.00 0.00 10,000,000.00 0.00 4.100 4.100 Total Buy 550 -Water & Sewer Bond Fund Buy 91282CMS7 03/20/26 03/24/26 US GOVT U.S. Treasury Note 3.875 03/15/28 10,000,000.00 10,000,000.00 0.00 10,000,000.00 0.00 10,000,000.00 99.910 9,991,015.63 9,476.90 10,000,492.53 0.00 3.922 3.922 Total Buy Coupon 91282CLH2 02/28/26 02/28/26 US GOVT U.S. Treasury Note 10,000,000.00 3.750 08/31/26 0.00 9,991,015.63 9,476.90 10,000,49253 0.00 0.00 93,750.00 93,750.00 0.00 Total Coupon 0.00 0.00 93,750.00 93,750.00 0.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 17 Hilltop Securities. City of Pearland January 1, 2026 - March 31, 2026 Investment Transactions Totals Transaction Type Quantity Principal Amount Interest Total Amount Realized G/L YTM YTW Total Buy Total Coupon 20,000,000.00 0.00 (19,991,015.63) 0.00 (9,476.90) 93,750.00 (20,000,492.53) 93,750.00 0.00 0.00 4.011 4.011 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 18 Hilltop Securities. City of Pearland January 1, 2026 - March 31, 2026 Amortization and Accretion CUSIP Settle Date Security Type Detailed Security Description Purchase Qty Orig Price Original Cost Amort/Accr for Total Amort/Accr Remaining Disc/ Ending Book Period Since Purch Premium Value 100 -General Fund 3130BA2C0 03/24/26 AGCY CALL 3133ETJZ1 06/05/25 AGCY FHLB 4.1 03/24/2028 FFCB 3.875 06/05/2028 10,000,000.00 100.000 10,000,000.00 0.00 0.00 0.00 10,000,000.00 10,000,000.00 99.820 9,982,000.00 1,439.94 4,727.57 (13,272.43) 9,986,727.57 Total 100 - General Fund 550 - Water & Sewer Bond Fund 91282CLH2 08/29/25 US GOVT U.S.Treasury Note 3.75 08/31/2026 91282CJK8 08/29/25 US GOVT U.S.Treasury Note 4.625 11/15/2026 91282CMS7 03/24/26 US GOVT U.S.Treasury Note 3.875 03/15/2028 20,000,000.00 19,982,000.00 1,439.94 4,72757 (13,272.43) 19,986,727.57 I 5,000,000.00 99.844 4,992,187.50 1,912.93 4,575.69 (3236.81) 4,996,763.19 10,000,000.00 100.918 10,091,796.90 (18,836.42) (43,978.90) 47,818.00 10,047,818.00 10,000,000.00 99.910 9,991,015.63 99.06 99.06 (8,885.31) 9,991,114.69 Total 550 -Water & Sewer Bond Fund 600 - Water & Sewer Operating Fund 91282CKR1 06/09/25 US GOVT U.S. Treasury Note 4.5 05/15/2027 91282CND9 06/09/25 US GOVT U.S.Treasury Note 3.75 05/15/2028 25,000,000.00 25,075,000.03 (16,824.43) (39,304.14) 35,695.89 25,035,695.89 10,000,000.00 100.859 10,085,937.50 (10,964.75) (35,131.75) 50,805.75 10,050,805.75 10,000,000.00 99.305 9,930,468.75 5,694.40 18,600.66 (50,930.59) 9,949,069.41 Total 600 -Water & Sewer Operating Fund 20,000,000.00 20,016,406.25 (5,27035) (16,531.09) (124.84) 19,999,875.16 Grand Total 65,000,000.00 65,073,406.28 (20,654.84) (51,107.67) 22,298.61 65,022,298.61 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 19 Hilltop Securitiesw40 City of Pearland March 31, 2026 to March 31, 2027 Projected Cash Flows CUSIP Detailed Security Description Post Date Interest Principal Total Amount 100 -General Fund 3133ETJZ1 3130BA2C0 3133ETJZ1 3130BA2C0 550 - Water & Sewer Bond Fund 91282CJK8 91282CLH2 91282CLH2 91282CMS7 91282CJK8 91282CJK8 91282CMS7 600- Water & Sewer Operating Fund 91282CKR1 91282CND9 91282CKR1 91282CND9 FFCB 3.875 06/05/2028 FHLB 4.103/24/2028 FFCB 3.875 06/05/2028 FHLB 4.103/24/2028 U.S.Treasury Note 4.625 11 /15/2026 U.S.Treasury Note 3.75 08/31/2026 U.S.Treasury Note 3.75 08/31/2026 U.S.Treasury Note 3.875 03/15/2028 U.S.Treasury Note 4.625 11 /15/2026 U.S.Treasury Note 4.625 11 /15/2026 U.S.Treasury Note 3.875 03/15/2028 U.S.Treasury Note 4.5 05/15/2027 U.S.Treasury Note 3.75 05/15/2028 U.S.Treasury Note 4.5 05/15/2027 U.S.Treasury Note 3.75 05/15/2028 06/05/26 09/24/26 12/07/26 03/24/27 05/15/26 08/31/26 08/31/26 09/15/26 11/16/26 11/16/26 03/15/27 05/15/26 05/15/26 11/16/26 11/16/26 193,750.00 205,000.00 193,750.00 205,000.00 231,250.00 93,750.00 193,750.00 231,250.00 193,750.00 225,000.00 187,500.00 225,000.00 187,500.00 5,000,000.00 10,000,000.00 193,750.00 205,000.00 193,750.00 205,000.00 231,250.00 93,750.00 5,000,000.00 193,750.00 231,250.00 10,000,000.00 193,750.00 225,000.00 187,500.00 225,000.00 187,500.00 Grand Total 2,566,250.00 15,000,000.00 17,566,250.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 20 Hilltop Securities. City of Pearland March 31, 2026 to March 31, 2027 Projected Cash Flows Totals Month and Year Interest Principal Total Amount May 2026 June 2026 August 2026 September 2026 November 2026 December 2026 March 2027 643,750.00 193,750.00 93,750.00 398,750.00 643,750.00 193,750.00 398,750.00 5,000,000.00 10,000,000.00 643,750.00 193,750.00 5,093,750.00 398,750.00 10,643,750.00 193,750.00 398,750.00 Total 2,566,250.00 15,000,000.00 17,566,250.00 515,000,000 510,000,000 55,000,000 May -26 lu n-20 Intai_ A Principal Aug .' Nov-, Dec -26 Mar -27 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 21 Hilltop Securitiesw40 City of Pearland As of March 31, 2026 Disclosures & Disclaimers As a courtesy to investors this information: (1) is provided for informational purposes only; (2) should not be construed as an offer to sell or a solicitation of an offer to buy any security; and (3) does not replace customer statements. This report is designed to provide general information and is not intended to provide specific legal, investment, accounting, tax or other professional advice. It is important to review and save all source documents provided by a product sponsor or brokerage firm which may contain notices, disclosures and other information important to you and may also serve as a reference. If conflicts between this report and sponsor reports or confirmations exist, the information provided by the product sponsors shall prevail. Fees and sales charges paid may not be reflected in the information. The information and data contained herein is obtained from sources believed to be reliable but its accuracy or completeness is not guaranteed. Additionally, the information may contain assets held away from HTS, therefore investors should contact customer service or other representatives from the respective distributors or issuers to determine SIPC coverage for heldaway assets. HTS and HSAM do not guarantee the information contained herein or its accuracy or completeness regarding contributions, withdrawals, protected values. All information is subject to further review with client to validate final values. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations.They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment. S&P rates the creditworthiness of individual bonds from: AAA highest to D lowest. Investing in fixed income securities involves interest rate risk, credit risk, and inflation risk. Interest rate risk is the possibility that bond prices will decrease because of an interest rate increase. When interest rates rise, bond prices and the values of fixed income securities fall. When interest rates fall, bond prices and the values of fixed income securities rise. Credit risk is the risk that a company will not be able to pay its debts, including the interest on its bonds. Inflation risk is the possibility that the interest paid on an investment in bonds will be lower than the inflation rate, decreasing purchasing power. Cash alternatives typically include money market securities and U.S. treasury bills. Investing in such cash alternatives involves inflation risk. In addition, investments in money market securities may involve credit risk and a risk of principal loss. Because money market securities are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency, there is no guarantee the value of your investment will be maintained at $1.00 per share, and your shares, when sold, may be worth more or less than what you originally paid for them. U.S.Treasury bills are subject to market risk if sold prior to maturity. Market risk is the possibility that the value, when sold, might be less than the purchase price. Investing in stock securities involves volatility risk, market risk, business risk, and industry risk.The prices of most stocks fluctuate.Volatility risk is the chance that the value of a stock will fall. Market risk is the chance that the prices of all stocks will fall due to conditions in the economic environment. Business risk is the chance that a specific company's stock will fall because of issues affecting it. Industry risk is the chance that a set of factors particular to an industry group will adversely affect stock prices within the industry. Securities offered by HTS: (1) are not FDIC (Federal Deposit Insurance Corporation) insured; (2) are not bank deposits; (3) are not guaranteed by any bank or by any other federal government agency. None of the named entities are affiliates of HTS or HSAM.Hilltop Securities Asset Management (HSAM) is an SEC -registered investment advisor. Hilltop Securities Inc. (HTS) is a registered broker -dealer, registered investment adviser and municipal advisor firm that does not provide tax or legal advice. Member of FINRA & SIPC. HTS and HSAM are wholly owned subsidiaries of Hilltop Holdings, Inc. (NYSE: HTH) located at 717 N. Harwood St., Suite 3400, Dallas, Texas 75201, (214) 859-1800, 833-4HILLTOP. Copyright 2025, S&P Global Market Intelligence. Reproduction of any information, data or material, including ratings ("Content") in any form is prohibited except with the prior written permission of the relevant party. Such party, its affiliates and suppliers ("Content Providers") do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall. Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not statements of fact. ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 22