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Item 3B2 - Monthly Financial Report Item 3132 CITY OF SOUTHLAI<,.,,E MONTHLY FINANCIAL REPORT March 2026 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference 7alFund .Vs.Rev. Positive Positive Page 3 e(2 months prior activity) Positive Positive Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Positive Page 4 Departmental Expenditures Summary Positive Positive Page 5 Positive =Positive variance or negative variance<1%compared to seasonal trends. Warning =Negative variance of 1-4%compared to seasonal trends Negative =Negative Variance of>4%compared to seasonal trends. City of Southlake Monthly Financial Report 1 4/14/2026 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: d 0.5% FINANCIAL ACTIVITY GDP is defined as the output of goods and services produced by labor and property located in the United States,The Bureau of Labor and Economic Analysis reported that the"third"estimated GDP for the 4th 5 YEAR TREND OF • • quarter of 2025 increased at a rate of 0.5%.In the $120,000,000 3rd quarter of 2025,GDP increased at a rate of 4.4%. Housing Starts: 2.80% $100,000,000 Single-family housing starts in January 2026 were at a seasonally adjusted rate of 935,000,which is 2.8% $80,000,000 below the revised December figure of 962,000. UNEMPLOYMENT RATES $60,000,000 National: 4.3% The National Unemployment rate for March 2026 decreased to 4.3%,compared to 4.4%in February $40,000,000 2026. State-wide: 4.3% $20,000,000 The Texas Unemployment rate for January 2026 (preliminary)remained unchanged at 4.3%when compared to December 2025. DFW Area: 3.6% 2022* 2023* 2024* 2025* 2026* *October-March ■Construction permit values The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for December 2025 decreased to pr 3.6% when compared to 4.0%in November 2025. City of Southlake Monthly Financial Report 2 4/14/2026 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2026 FY 2026 FY 2026 FY 2026 REVENUE FY 2026 EXPENDITURE 2025 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 636,258 $ 4,794,054 $ (4,157,796) $18,000,000 Nov $ 2,561,295 $ 3,902,817 $ (1,341,522) $16,000,000 Dec $ 7,631,235 $ 4,371,726 $ 3,259,509 Jan $ 15,423,225 $ 3,803,387 $ 11,619,838 $14,000,000 Feb $ 11,349,792 $ 4,138,303 $ 7,211,489 $12,000,000 Mar $ 3,196,501 $ 4,383,298 $ (1,186,797) Apr $ $ $ $10,000,000 May $ $ $ $8,000,000 Jun $ $ $ ZOA Jul $ - $ - $ _ $6,000,000 Aug $ $ $ $4,000,000 Sep $ Tot $ 40,798,306 $ 25,393,585 $ 15,404,721 $2,000,000 CHART OUTLOOK: POSITIVE I Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Year-to-date revenue is trending below budget.Staff will continue to monitor revenue and expenditures closely. REVENUE ANALYSIS GENERAL FUND SALES TAX 2026-2024 COMPARISON FY 2026 FY 2025 FY 2024 FY 2026 FY 2025 FY 2024 Oct $ 2,090,232 $ 1,792,542 $ 1,639,596 $3,000,000 Nov $ 1,911,949 $ 1,815,114 $ 1,701,432 ' Dec $ 2,832,105 $ 2,552,523 $ 2,383,801 $2,500,000 Jan $ 1,815,479 $ 1,722,503 $ 1,643,095 Feb $ 1,423,796 $ 1,470,957 $ 1,458,994 $2,000,000 Mar $ - $ 1,961,273 $ 1,859,641 Apr $ $ 1,828,118 $ 1,749,381 $1,500,000 t May $ - $ 1,836,616 $ 1,660,932 Jun $ $ 1,837,179 $ 1,777,233 $1,000,000 Jul $ - $ 1,806,454 $ 1,653,109 Aug $ 1,717,354 $ 1,710,382 $500,000 Sep $ 1,889,172 $ 1,690,978 Tot $ 10,073,561 $ 22,229,805 $ 20,928,572 $_ Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year-to-date collections are trending higher than FY 2025(7.7%)and FY 2024(14.1%)collections. February 2026 sales are lower than in February 2025(3.2%)and February 2024(1.5%).Year-to-date collections are above budget,so the outlook is considered positive.Staff will continue to monitor collections closely. City of Southlake Monthly Financial Report 3 4/14/2026 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2026 FY 2025 FY 2024 ■FY 2026 ■FY 2025 FY 2024 Oct $ 312,284 $ 415,744 $ 577,913 $16,000,000 Nov $ 2,105,365 $ 2,389,817 $ 2,012,904 $14,000,000 Dec $ 4,884,201 $ 4,489,786 $ 8,236,314 $12,000,000 Jan $ 12,750,099 $ 14,130,006 $ 10,376,818 $10,000,000 Feb $ 7,078,383 $ 5,620,386 $ 5,623,897 Mar $ 511,848 $ 640,868 $ 532,180 $8,000,000 Apr $ - $ 295,560 $ 257,466 $6,000,000 May $ - $ 205,571 $ 198,604 $4,000,000 ' Jun $ $ 460,606 $ 516,677 $2,000,000 . Jul* $ - $ (1,089,408) $ (1,139,094) $- Aug $ - $ 107,845 $ 88,418 $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun Ju Aug Sep $ - $ 21,654 $ 16,945 Tot $ 27,642,180 $ 27,688,435 $ 27,299,042 *Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of March,the 2026 YTD property tax collections($27,642,180)are slightly lower than 2025 YTD($27,686,607)by 0.2%and higher than the FY 2024 YTD($27,360,026)by approximately 1.0%. As indicated on the chart,the majority of the property tax revenue is collected in the second quarter of the fiscal year.YTD collections are trending below budget. PERMIT REVENUE 2026-2024 COMPARISON FY 2026 FY 2025 FY 2024 FY 2026 FY 2025 FY 2024 Oct $ 119,457 $ 332,221 $ 110,053 $350,000 Nov $ 129,258 $ 121,292 $ 284,653 Dec $ 143,697 $ 104,932 $ 69,759 $300,000 Jan $ 119,083 $ 133,336 $ 90,986 Feb $ 127,714 $ 145,396 $ 93,595 $250,000 Mar $ 121,047 $ 135,536 $ 226,182 Apr $ - $ 137,408 $ 121,572 $200,000 May $ - $ 192,289 $ 198,453 Jun $ $ 152,593 $ 159,935 $150,000 Jul $ - $ 124,896 $ 135,053 $100,000 Aug $ $ 112,085 $ 100,564 Sep $ 117,989 $ 156,642 $50,000 Tot $ 760,256 $ 1,809,973 $ 1,747,447 CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits($47.6M+)issued for FY 2026 YTD is approximately 52.4% and 47.6%less than in FY 2025 and FY 2024, respectively. FY 2026 YTD permit revenue is 21.8%and 13.1%lower than in FY 2025 and 2024,respectively.The permit revenue year to date is trending slightly above budget,so the outlook is considered positive. City of Southlake Monthly Financial Report 4 4/14/2026 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2026 ACTUAL FY 2025 ACTUAL FY 2026 BUDGET FY 2025/2026 YTD YTD(MARCH) YTD(MARCH) YTD (MARCH) VARIANCE BUDGET VARIANCE FY 2025%SPENT CIVIC) $ 582,864 $ 545,008 $ 692,673 $ 37,856 $ 109,809 84.15% COMM $ 443,263 $ 456,847 $ 514,228 $ (13,584) $ 70,965 86.20% CS $ 2,884,349 $ 2,934,370 $ 3,817,565 $ (50,021) $ 933,216 75.55% CSO $ 275,801 $ 283,825 $ 382,305 $ (8,024) $ 106,504 72.14% DPS $ 11,506,732 $ 11,093,092 $ 14,960,403 $ 413,640 $ 3,453,671 76.91% ED $ 194,760 $ 242,689 $ 266,260 $ (47,929) $ 71,500 73.15% FIN $ 1,663,527 $ 1,535,203 $ 1,871,209 $ 128,324 $ 207,682 88.90% HR $ 316,342 $ 316,744 $ 553,194 $ (402) $ 236,852 57.18% IT $ 2,171,385 $ 2,028,692 $ 3,116,901 $ 142,693 $ 945,516 69.66% PDS $ 1,190,123 $ 1,105,469 $ 1,361,792 $ 84,654 $ 171,669 87.39% PW $ 2,554,476 $ 2,378,365 $ 3,205,863 $ 176,111 $ 651,387 79.68% SS $ 1,609,963 $ 1,348,730 $ 1,886,021 $ 261,233 $ 276,058 85.36% Totals $ 25,393,585 $ 24,269,034 $ 32,628,414 $ 1,124,551 $ 7,234,829 77.83% FY 2026 ACTUAL YTD(MARCH) FY 2025 ACTUAL YTD(MARCH) FY 2026 BUDGET YTD (MARCH) $18,000,000 $16,000,000 $14,000,000 - $12,000,000 - $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above,2026 expenditures are higher than 2025 expenditures for the same period,up 4.6%, primarily due to compensation changes and contract cost increases.The outlook is positive,as expenditures are on pace to stay within budget for the fiscal year. City of Southlake Monthly Financial Report 5 4/14/2026 March 24, 2026 The Marq Financial Review CEDC FINANCIAL DASHBOARD 10,1,2025 9/30/2026 •CR excludes 115580-60•accouals as of_- 3I2412026 11:36 AM CD ■ MARQ CC LH NET REVENUE:CURRENT&PREVIOUS YEAR ■OCR 11 LHR—Total Revenue LY 137.57%1 400K 49.K ® m 66K 57K 300K 200K 378K 60.00% 119.88% 65.00% 123.69% 36.00% 104.35% Target ATT Target ATT Target ATT 100K 2.13M 2.96M 1.91M 2.37M 219.99K 585.61K Revenue Expense Revenue Expense Revenue Expense OK ... .. .. ... Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 Jan 2026 Feb 2026 Mar 2026 THE MARQ MEMBERSHIP REVENUE(NET) THE A'IARQ RENTALS REVENUE(NET) ■CC-Rental-Revenue•LH-Rental-Rene nue 0Sum Rene nue LY 25OK ..... ..... .._. ...... 60K 1_5OK .. .. .. ... ..... 40K , 100K 20K..... OK OK ki Mar Apr 2025 May Jun 2025 Jul 2025 Aug Sep 2025 Oct 2025 Nov Dec 2025 Jan 2026 Feb 2026 Mar Mar Apr 2025 May Jun 2C25 Jul 2025 Aug Sep 2025 Oct 2025 Nov Dec Jan 2026 Feb 2026 Mar 2025 2025 2025 2025 2025 2025 2025 2025 2025 2025 2026 CHANTIHNS CLUB 1IEDIBERSHIP TRENDS 4� .............. :__------ ----3b93 3]3a 37�5 3�74 -------------,. ------- .... ..... 3�34 3�17 3b�4 3633 35�5 3535 3583 3579 3583 3574 3571 3551 3559 3591 3493 3485 3493 3541 3526 3472 3476 3517 3487 3453 3469 3K 2K 1K OK Jan 2024 Jul 2024 CC 11EMBERSHWS CHANGES BY FISCAL YEAR&MONTH-JOINS CC MEMBERSHIPS CHANGES BY FISCAL YEAR&MONTH-TERMS Fiscal Year f FY22 f FY23 FY24#FY25 f FY26 Fiscal Year f FY22#FY23 f FY24#FY25 f FY26 350 350 300 300 250 250 200 C 200 E 150 H 150 100 100 50 50 0 — 0 2 4 6 10 12 2 4 6 10 12 Fiscal Month Fiscal Month JOINS TERAW ATIONS 7 8 6 7 FY22 172 205 2091 254 173 192 239 3491 310 253 291 185 FY22 166 142 149 175' 158 135 150 190 2231 196 231 230 FY23 215 258 244 235 206 212 204 325 268 266 294 203 FY23 206 191 181 213 201 171 175 239 236 253 319 263 FY24 188 182 235 318 235 225 245 290 295 291 273 221 FY24 196 183 130 229 253 200 258 240 261 252 356 377 FY25 236 210 239 301 215 225 230 2531 227 239 245 202 FY25 294 204 196 256 250 196 2091 2571 233 256 2631 263 FY26 2151 227 282 2941 205 FY26 244 227 ls4 258 2471 NRITI-YEAR CC AIEIIBERSHIPS ANALYSIS BY 1NIBIBERSHIP TYPE-JOINS MULTI-YEAR CC AfEMBERSIU ANALYSIS BY MEMBERSHIP TYPE-TER1a1ATIONS $Adult Vamily Vamily No Child Watch GSenior OYouth •Adult&Family 0Famlly No Child Watch 2 Seri ior Youkh co ❑ co 400 m m � n o m 350 m N m N m m m N a N m 300 N .1 P 300 N �+ m h M1 N Ln N m 250ko N N N N p N p 0 IF 2CC ° 200 m E a m Ln a 6 .15(1 N m � W 1CC 1QF— m m 7p 7p W N 0 w N 50— 0 Q— F''22 FY23 FY24 FY25 FY26 FY22 FY23 FY24 FY25 FY26 JOINS TEKIIINATIONS Adult 316 340 388 421 422 Adult 237 290 326 396 311 Family 184 251 239 226 247 Family 138 214 223 271 251 Family No Child Watch 3551 398 327 356 311 Family No Child Watch 294 324 325 360 337 senior 1 961 150 139 151 180 Senior 61 103 96 113 129 Youth 1 751 73 721 56 66 Youth 591 61 83I 61 71 MDENMERStUPS BY TYPE 0 Fa m i ly No Child Watch 0 Ad ult i Fa rni ly ■Se ni or 4P Youth 5.23 11.85% — 33.2% 21.97% 27.75% Sales Tax Update �•= :sire. ._�. �;.•�,.'i: �i.: Three Year Revenue Comparison by Month $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 NO �Z, Fiscal Year 2024 ■Fiscal Year 2025 Fiscal Year 2026 EXPERIENCE SOUTHLAI<,.,.,E INVESTMENT REPORT City of Southlake October 1 to December 31, 2025 �1. i L � � I t \ I Hilltop Securities J�*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 Famed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Investment Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Investment Transactions Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Amortization and Accretion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Projected Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Projected Cash Flows Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Disclosures&Disclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 2 Hillto Securities � City of Southlake I� As of December 31,2025 Market Recap December saw the return of official government data following the 43 day shutdown.After deceleration,posting their smallest two month increase since the early months of the two months of relying on private sources,financial markets finally received delayed October pandemic.Economists warned that shutdown related distortions may unwind in the and November readings on inflation,the labor market,economic growth,and consumer coming months,but the overall picture reinforced the idea that the Fed's restrictive stance is sentiment. continuing to exert downward pressure on inflation. Labor market data remained overwhelmingly negative throughout December.Private The Federal Reserve delivered its third consecutive 25 basis point cut at the December 10 sector employment data showed more weakness ahead of the FOMC meeting,with the meeting,lowering the target range to 3.50%-3.75%.The vote was fractured,with three November ADP report revealing a 32k decline in payrolls,the largest monthly drop since dissents,the most since 2019,as Chicago's Goolsbee and Kansas City's Schmid argued for early 2023.Small businesses shed 120kjobs,the biggest pullback since May 2020,while no change while Governor Miran pushed for a larger 50 by move.Chair Powell described larger firms managed modest gains.Challenger's layoff data showed more than 1.17 million the decision as a"close call"noting that neither inflation nor employment data made a job cuts year to date,already the highest since 2020.By the time the BLS finally released its compelling case for easing,but the committee felt"well positioned to wait and see'heading combined October—November report,the unemployment rate had jumped to 4.6%,and into 2026.The updated Summary of Economic Projections offered mixed signals:the 2026 the underemployment rate rose sharply to 8.7%,reflecting a combination of lower survey GDP forecast was revised sharply higher to 2.3%,while core PCE was nudged down to 2.5%, participation,discouraged workers re entering the labor force,and softening in economic supporting the view that tariff related inflation pressures might be fading. conditions.Payrolls increased a modest 64k in November after a steep 105k decline in Later in the month,the economy delivered another surprise when Q3 GDP was revised up October,and the three month average pace of job growth slowed tojust 22k,down from to 4.3%,the strongest quarterly growth in two years and well above every major forecast. 62k prior to the shutdown. Personal consumption remained the engine of expansion,while net exports provided an The weakjob market has fed directly into collapsing consumer confidence.Both the unusually large boost as imports fell sharply.But the stronger growth also pushed the GDP University of Michigan and Conference Board measures slid toward multi decade lows, price index up to 3.8%,and the core PCE index rose to 2.9%,complicating the Fed's inflation with Michigan's current conditions index hitting its lowest reading in nearly fifty years. narrative and reinforcing the idea that rate cuts in early 2026 are assured.Strong GDP Confidence eroded further as households continued to struggle with higher prices,slower with rising unemployment will be a challenge for policymakers next year,especially in an wage gains,and a cooling job market.Retail categories tied to discretionary spending economy increasingly shaped by rapid technological changes and investment. showed weakening momentum,while hiring freezes broadened across cyclically sensitive As the year wraps,the economic landscape remains uncertain marked by strong top line sectors such as manufacturing,transportation,information services,and finance. growth but weakening labor momentum,easing inflation but distorted data,and a Fed that With October CPI data never collected,the November CPI release only provided year cut while signaling caution ahead.The path of monetary policy early in 2026 will hinge on over year changes.Even with the data disruptions,the numbers were striking,headline whether the economy's apparent strength proves durable or whether the growing signs of CPI unexpectedly fell from 3.0%to 2.7%,while core CPI softened from 3.0%to 2.6%, labor market softening begin to dominate the narrative. both reaching their lowest levels since early 2021.Shelter costs showed a questionable ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 3 Hillto Securities � City of Southlake I� As of December 31,2025 Investment Officers' Certification This report is prepared for the City of South lake(the"Entity)in accordance with Chapter 2256 of the Texas Public Funds Investment Investment Officers 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 Nicole Bradshaw 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. Nicole Bradshaw Deputy Director of Finance 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. $haren Jackson Sharen Jackson Chief Financial Officer ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 4 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Portfolio Overview Portfolio Summary Income Summary Portfolio Characteristics Prior Current Prior Current • D ParValue 344,261,419.51 347,591,811.30 Interest Income 3,364,974.19 Yield to Maturity 4.226% 3.934% Original Cost 343,398,429.31 346,604,211.73 Net Amortization/Accretion 119,659.45 Yield to Worst 4.226% 3.934% BookValue 343,613,191.75 346,887,852.37 Realized Gain/(Loss) 0.00 Days to Final Maturity 132 123 Market Value 344,085,259.66 347,400,400.95 Net Income 3,484,633.64 Days to Effective Maturity 132 123 Accrued Interest 1,144,636.03 1,254,609.05 Duration 1.04 0.85 BookValue Plus Accrued 344,757,827.78 348,142,461 A2 •. • •- Market Value Plus Accrued 345,229,895.69 348,655,010.00 Net Income 3,484,633.64 Net Unrealized Gain/(Loss) 472,067.91 512,548.58 Asset Allocation Transaction Summary QuantityTransactionType Buy 20,000,000.00 (19,824,609.38) (118,801.70) (19,943,411.08) 0.00 Maturity (4,000,000.00) 4,000,000.00 0.00 4,000,000.00 0.00 AGCY4.91% LGIP 60.62% Coupon 0.00 0.00 1,160,625.00 1,160,625.00 0.00 0 MMFUND 1.54% 0 US GOVT 32.94% ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 5 lake Hillto Securities. 31,City of So p As of December 202525 Portfolio Overview Maturity Distribution by Security Type Top Ten Holdings ■ AGCY4.91% LGIP 60.62% ■ MMFUND 1.54% Issuer Allocation ■ US GOVT 32.94% United States 32.94% 75% TEXSTAR 22.71% 62.2 TXCLASS 12.74% 50% TEXPOOL 12.63% LONESTRGOV 7.13% LONESTRCRP 5.39% 25% 15.7 Federal Farm Credit Banks Funding Corporation 3.46% 8.6 4.3 4.9 4,3 Invesco 1.54% 0% h Federal Home Loan Banks 1.44% ocr� o�ry o�r� °ter easy eaiS easy easy e� O, O 3� boo, 1ti 1ti ,1''S 3� Rh Maturity Distribution by Security Type SecurityType • PortfolioTotal AGCY 7,002,898.82 10,021,164.60 17,024,063.42 LGIP 210,266,889.53 210,266,889.53 MMFUND 5,324,921.77 5,324,921.77 USGOVT 15,010,559.55 9,987,627.00 15,001,710.41 29,823,855.94 44,448,224.75 114,271,977.65 Total 215,591,811.30 15,010,559.55 16,990,525.83 15,001,710.41 29,823,855.94 54,469,389.34 — — — 346,887,852.37 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 6 Hillto Securities � City of Southlake I� As of December 31,2025 Asset Allocation Asset Allocation by Security Type as of Asset Allocation by Security Type as of 30-Sep-2025 31-Dec-2025 AGCY 4.96% AGCY 4.91% LGIP 60.61% LGIP 60.62% MMFUND 5.81% MMFUND 1.54% US GOVT 28.61% US GOVT 32.94% Book Value Basis Security Distribution SecurityType Prior Balance PriorAllocation Change in Allocation Current Balance Current Allocation D• D- AGCY 17,029,657.97 4.96% (0.05%) 17,024,063.42 4.91% 4.413% LGIP 208,280,965.57 60.61% 0.00% 210,266,889.53 60.62% 3.866% MMFUND 19,980,453.94 5.81% (4.28%) 5,324,921.77 1.54% 3.710% USGOVT 98,322,114.27 28.61% 4.33% 114,271,977.65 32.94% 4.000% Portfolio Total 343,613,191.75 100.00% 346,887,85237 100.000/0 3.934% ©Hilltop Securities Asset Management,LLC.All rights reserved. Page lake Hillto Securities. 31,City of So p As of December 202525 Credit Rating Summary Rating Distribution Allocation by Rating BookValue Portfolio Allocation Local Government Investment Pools&Money Market Funds AAA 215,591,811.30 62.15% Total Local Government Investment Pools&Money Market Funds 215,591,811.30 62.15% Long Term Rating Distribution AA+ 131,296,041.07 37.85% Total Long Term Rating Distribution 131,296,041.07 37.85% PortfolioTotal 346,887,852.37 100.000/0 ■ AAA 62.15% ■ AA+37.85% ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 8 Hillto Securities � City of Southlake I� As of December 31,2025 Benchmark Comparison - City of Southlake 6 Month CMT - 1 Year CMT - TexPool 5.00% 4.00% 3.00% Yield Overview City of Southlake 5.20 5.21 5.19 5.19 5.31 5.29 529 5.25 5.14 4.93 4.78 4.66 4.50 4.43 435 435 432 4.29 4.28 4.27 4.23 4.13 4.04 3.93 6 Month CMT 5.43 5.39 5.36 5.33 5.33 5.34 5.34 5.29 5.16 5.00 4.84 4.66 4.50 4.39 4.34 4.30 4.28 4.27 4.28 4.25 4.18 4.11 4.02 3.91 1 Year CMT 5.09 5.09 5.12 5.15 5.17 5.16 5.12 5.04 4.93 4.82 4.75 4.69 4.64 4.58 4.50 4.40 4.31 4.23 4.16 4.11 4.08 4.03 3.97 3.91 TexPool 5.35 5.33 5.32 5.31 5.32 5.31 5.32 5.30 5.16 4.91 4.73 4.56 4.39 4.36 4.33 4.34 4.31 4.30 4.31 4.31 4.25 4.14 3.99 3.83 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 9 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Fund Overview Fund Name Prior BookValue Prior MarketValue Changes to Market Current Book Value Current Market Value Netincome D. Value General Operating 343,613,191.75 344,085,259.66 3,315,141.29 346,887,852.37 347,400,400.95 3,484,633.64 123 3.934% 3.934% Total 343,613,191.75 344,085,259.66 3,315,14119 346,887,85237 347,40Q400.95 3A84,633.64 123 3.934% 3.934% ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 10 Hillto Securities � City of Southlake I� As of December 31,2025 Detail of Security Holdings CUSIP Settle Date Security Security Description CPN Maturity NextCall CallType ParValue Purch Original Cost BookValue Mkt MarketValue Days Daysto Type Date Date Price Price to Mty Call General Operating INVSCSLAK MMFUND In scoGov't&Agency 12/31/25 5,324,921.77 100.000 5,324,921.77 5,324,921.77 100.000 5,324,921.77 1 3.710 3.710 AAA LNSTCRP LGIP LoneStarCorpO/N 3.960 12/31/25 18,710,800.76 100.000 18,710,800.76 18,710,800.76 100.000 18,710,800.76 1 3.960 3.960 AAA LNSTGOV LGIP LoneStarGovO/N 3.810 12/31/25 24,729,703.10 100.000 24,729,703.10 24,729,703.10 100.000 24,729,703.10 1 3.810 3.810 AAA TEXPOOL LGIP TexPool 3.827 12/31/25 43,824,052.91 100.000 43,824,052.91 43,824,052.91 100.000 43,824,052.91 1 3.827 3.827 AAA TEXSTAR LGIP TexSTAR 3.825 12/31/25 78,793,532.72 100.000 78,793,532.72 78,793,532.72 100.000 78,793,532.72 1 3.825 3.825 AAA TXCLASS LGIP Texas CLASS 3.969 12/31/25 44,208,800.04 100.000 44,208,800.04 44,208,800.04 100.000 44,208,800.04 1 3.969 3.969 AAA 91282CJV4 06/18/25 USGOVT U.S.TreasuryNote 4.250 01/31/26 5,000,000.00 99.988 4,999,414.06 4,999,949.46 100.012 5,000,585.95 31 4.263 4.263 AA+ 91282CGR6 03/13/25 US GOVT U.S.Treasury Note 4.625 03/15/26 10,000,000.00 100.523 10,052,343.75 10,010,610.09 100.188 10,018,750.00 74 4.088 4.088 AA+ 91282CGV7 06/11/25 USGOVT U.S.TreasuryNote 3.750 04/15/26 10,000,000.00 99.633 9,963,281.25 9,987,627.00 100.047 10,004,687.50 105 4.192 4.192 AA+ 3133ERDZ1 05/10/24 AGCY FFCB 4.750 05/08/26 3,000,000.00 99.820 2,994,588.00 2,999,015.39 100.348 3,010,428.00 128 4.846 4.846 AA+ 3133ERGA3 06/24/24 AGCY FFCB 5.000 06/04/26 4,000,000.00 100.429 4,017,141.00 4,003,883.44 100.527 4,021,088.00 155 4.765 4.765 AA+ 91282CHM6 06/11/25 USGOVT U.S.TreasuryNote 4.500 07/15/26 10,000,000.00 100.367 10,036,718.75 10,018,429.78 100.512 10,051,171.90 196 4.150 4.150 AA+ 91282CLH2 02/21/25 USGOVT U.S.TreasuryNote 3.750 08/31/26 5,000,000.00 99.242 4,962,109.38 4,983,280.62 100.105 5,005,273.45 243 4.270 4.270 AA+ 91282CLS8 03/13/25 USGOVT U.S.Treasury Note 4.125 10/31/26 10,000,000.00 100.164 10,016,406.25 10,008,656.06 100.418 10,041,796.90 304 4.018 4.018 AA+ 91282CDK4 10/29/25 USGOVT U.S.TreasuryNote 1.250 11/30/26 10,000,000.00 97.516 9,751,562.50 9,791,187.16 97.941 9,794,140.60 334 3.599 3.599 AA+ 91282CME8 03/13/25 USGOVT U.S.TreasuryNote 4.250 12/31/26 10,000,000.00 100.422 10,042,187.50 10,024,012.72 100.703 10,070,312.50 365 4.002 4.002 AA+ 91282CMH1 03/13/25 USGOVT U.S.Treasury Note 4.125 01/31/27 10,000,000.00 100.227 10,022,656.25 10,013,393.29 100.633 10,063,281.20 396 3.997 3.997 AA+ 91282CMP3 10/29/25 US GOVT U.S.Treasury Note 4.125 02/28/27 10,000,000.00 100.730 10,073,046.88 10,063,714.94 100.664 10,066,406.20 424 3.558 3.558 AA+ 3133EP6K6 02/21/25 AGCY FFCB 4.500 03/26/27 5,000,000.00 100.467 5,023,355.05 5,014,066.74 101.091 5,054,570.00 450 4.263 4.263 AA+ 91282CKJ9 06/11/25 USGOVT U.S.Treasury Note 4.500 04/15/27 5,000,000.00 100.832 5,041,601.56 5,029,465.28 101.227 5,061,328.10 470 4.025 4.025 AA+ 912828ZS2 03/13/25 USGOVT U.S.TreasuryNote 0.500 05/31/27 10,000,000.00 92.676 9,267,578.13 9,526,398.00 95.910 9,591,015.60 516 3.984 3.984 AA+ 3130AWBZ2 06/11/25 AGCY FHLB 4.125 06/11/27 5,000,000.00 100.195 5,009,738.25 5,007,097.86 100.778 5,038,910.00 527 4.023 4.023 AA+ 91282CFB2 06/11/25 USGOVT U.S.Treasury Note 2.750 07/31/27 5,000,000.00 97.457 4,872,851.56 4,905,062.33 98.871 4,943,554.70 577 4.001 4.001 AA+ 91282CFH9 02/21/25 USGOVT U.S.TreasuryNote 3.125 08/31/27 5,000,000.00 97.316 4,865,820.31 4,910,190.90 99.426 4,971,289.05 608 4.260 4.260 AA+ Total General 347,591,811.30 346,604,211.73 346,887,852.37 347,400,400.95 123 3.934 3.934 Operating Grand Total 347,591,81130 346,604,211.73 346,887,85237 347,40Q400.95 123 3.934 3.934 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 1 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Earned Income Sold/MaturedCLISIP Security Detailed Security Description Beginning Accrued Interest Interest Rec'd/ Interest Ending Disc Accr/Prern Net Realized Net Income Type Earned General Operating 91282CGA3 USGOVT U.S.Treasury Note 4.0 12/15/2025 47,213.11 32,786.89 80,000.00 0.00 0.00 7,213.73 0.00 40,000.62 INVSCSLAK MMFUND I nvesco Gov't&Agency MM 62,069.03 75,290.77 127,253.91 0.00 10,105.89 0.00 0.00 75,290.77 LNSTCRP LGIP LoneStar Corp O/N 0.00 192,234.55 192,234.55 0.00 0.00 0.00 0.00 192,234.55 LNSTGOV LGIP LoneStar Gov O/N 0.00 245,924.70 245,924.70 0.00 0.00 0.00 0.00 245,924.70 TEXPOOL LGIP TexPool 0.00 407,451.95 407,451.95 0.00 0.00 0.00 0.00 407,451.95 TEXSTAR LGIP TexSTAR 0.00 783,956.37 783,956.37 0.00 0.00 0.00 0.00 783,956.37 TXCLASS LGIP Texas CLASS 0.00 456,356.39 456,356.39 0.00 0.00 0.00 0.00 456,356.39 91282CJV4 USGOVT U.S.Treasury Note 4.25 01/31/2026 35,801.63 53,125.00 0.00 0.00 88,926.63 154.98 0.00 53,279.98 91282CGR6 US GOVT U.S.Treasury Note 4.625 03/15/2026 20,441.99 117,541.44 0.00 0.00 137,983.43 (13,371.62) 0.00 104,169.82 91282CGV7 US GOVT U.S.Treasury Note 3.75 04/15/2026 173,155.74 94,701.41 187,500.00 0.00 80,357.14 10,953.75 0.00 105,655.15 3133ERDZ1 AGCY FFCB 4.75 05/08/2026 56,604.17 35,625.00 71,250.00 0.00 20,979.17 701.60 0.00 36,326.60 3133ERGA3 AGCY FFCB 5.0 06/04/2026 65,000.00 50,000.00 100,000.00 0.00 15,000.00 (2,273.80) 0.00 47,726.20 91282CHM6 US GOVT U.S.Treasury Note 4.5 07/15/2026 95,380.43 112,500.00 0.00 0.00 207,880.43 (8,401.34) 0.00 104,098.66 91282CLH2 USGOVT U.S.Treasury Note 3.75 08/31/2026 16,056.63 47,651.93 0.00 0.00 63,708.56 6,333.51 0.00 53,985.44 91282CLS8 USGOVT U.S.Treasury Note 4.125 10/31/2026 172,622.28 104,276.89 206,250.00 0.00 70,649.17 (2,592.23) 0.00 101,684.66 91282CDK4 USGOVT U.S.Treasury Note 1.25 11/30/2026 0.00 21,917.97 62,500.00 (51,571.04) 10,989.01 39,624.66 0.00 61,542.63 91282CME8 USGOVT U.S.Treasury Note 4.25 12/31/2026 107,404.89 106,269.14 212,500.00 0.00 1,174.03 (5,845.44) 0.00 100,423.70 91282CMH1 USGOVT U.S.Treasury Note 4.125 01/31/2027 69,497.28 103,125.00 0.00 0.00 172,622.28 (3,011.89) 0.00 100,113.11 91282CMP3 USGOVT U.S.Treasury Note 4.125 02/28/2027 0.00 72,928.18 0.00 (67,230.66) 140,158.84 (9,331.94) 0.00 63,596.24 3133EP6K6 AGCY FFCB 4.5 03/26/2027 3,125.00 56,250.00 0.00 0.00 59,375.00 (2,827.76) 0.00 53,422.24 91282CKJ9 US GOVT U.S.Treasury Note 4.5 04/15/2027 103,893.44 56,820.84 112,500.00 0.00 48,214.29 (5,612.91) 0.00 51,207.93 912828ZS2 USGOVT U.S.Treasury Note 0.5 05/31/2027 16,803.28 12,592.33 25,000.00 0.00 4,395.60 81,653.89 0.00 94,246.21 3130AWBZ2 AGCY FHLB 4.125 06/11/2027 63,020.83 51,562.50 103,125.00 0.00 11,458.33 (1,194.59) 0.00 50,367.91 91282CFB2 USGOVT U.S.Treasury Note 2.75 07/31/2027 23,165.76 34,375.00 0.00 0.00 57,540.76 14,451.51 0.00 48,826.51 91282CFH9 US GOVT U.S.Treasury Note 3.125 08/31/2027 13,380.52 39,709.94 0.00 0.00 53,090.47 13,035.35 0.00 52,745.30 Total General 1,144,636.03 3,364,974.19 3,373,802.87 (118,801.70) 1,254,609.05 119,659.45 0.00 3,484,633.64 Operating Grand Total 1,144,636.03 3,364,974.19 3,373,802.87 (118,801.70) 1,254,609.05 119,659.45 0.00 3,484,633.64 CHilltop Securities Asset Management,LLC.All rights reserved. Page 12 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Investment Transactions Maturity Principal Interest Realized Gain/ CUSIP Trade Date Settle Date SecurityType Security Description Coupon Date Call Date ParValue Price Amount Purchased/ Total Amount Loss YTM YTW Received General Operating Buy 91282CMP3 10/28/25 10/29/25 US GOVT U.S.Treasury Note 4.125 02/28/27 10,000,000.00 100.730 10,073,046.88 67,230.66 10,140,277.54 0.00 3.558 3.558 91282CDK4 10/28/25 10/29/25 USGOVT U.S.Treasury Note 1.250 11/30/26 10,000,000.00 97.516 9,751,562.50 51,571.04 9,803,133.54 0.00 3.599 3.599 Total Buy 20,000,000.00 19,824,609.38 118,801.70 19,943,411.08 0.00 Coupon 91282CKJ9 10/15/25 10/15/25 US GOVT U.S.Treasury Note 4.500 04/15/27 0.00 0.00 112,500.00 112,500.00 0.00 - - 91282CGV7 10/15/25 10/15/25 US GOVT U.S.Treasury Note 3.750 04/15/26 0.00 0.00 187,500.00 187,500.00 0.00 - - 91282CLS8 10/31/25 10/31/25 USGOVT U.S.Treasury Note 4.125 10/31/26 0.00 0.00 206,250.00 206,250.00 0.00 - - 3133ERDZ1 11/08/25 11/08/25 AGCY FFCB 4.750 05/08/26 0.00 0.00 71,250.00 71,250.00 0.00 - - 912828ZS2 11/30/25 11/30/25 USGOVT U.S.Treasury Note 0.500 05/31/27 0.00 0.00 25,000.00 25,000.00 0.00 - - 91282CDK4 11/30/25 11/30/25 USGOVT U.S.Treasury Note 1.250 11/30/26 0.00 0.00 62,500.00 62,500.00 0.00 - - 3133ERGA3 12/04/25 12/04/25 AGCY FFCB 5.000 06/04/26 0.00 0.00 100,000.00 100,000.00 0.00 - - 3130AWBZ2 12/11/25 12/11/25 AGCY FHLB 4.125 06/11/27 0.00 0.00 103,125.00 103,125.00 0.00 - - 91282CGA3 12/15/25 12/15/25 US GOVT U.S.Treasury Note 4.000 12/15/25 0.00 0.00 80,000.00 80,000.00 0.00 - - 91282CME8 12/31/25 12/31/25 USGOVT U.S.Treasury Note 4.250 12/31/26 0.00 0.00 212,500.00 212,500.00 0.00 - - Total Coupon 0.00 0.00 1,160,625.00 1,160,625.00 0.00 Maturity 91282CGA3 12/15/25 12/15/25 US GOVT U.S.Treasury Note 4.000 12/15/25 (4,000,000.00) 100.000 4,000,000.00 0.00 4,000,000.00 0.00 - - Total Maturity (4,000,000.00) 4,000,000.00 0.00 4,000,000.00 0.00 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 13 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Investment Transactions Totals TransactionType Quantity Principal Amount Interest Total Amount Realized G/L YTM YTW Total Buy 20,000,000.00 (19,824,609.38) (118,801.70) (19,943,411.08) 0.00 3.578 3.578 Total Maturity (4,000,000.00) 4,000,000.00 0.00 4,000,000.00 0.00 4.902 4.902 Total Coupon 0.00 0.00 7,160,625.00 1,160,625.00 0.00 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 14 Hillto Securities � City of Southlake I� October 1,2025-December 31,2025 Amortization and Accretion CUSIP Settle Date Security Detailed Security Description Purchase Qty Orig Price Original Cost Amort/Accrfor Total Amort/Accr Remaining Disc/ Ending:•. Type . Since Purch Premium Value - General Operating 91282CGA3 06/24/24 USGOVT U.S.Treasury Note 4.0 12/15/2025 0.00 0.000 0.00 7,213.73 0.00 0.00 0.00 91282CJV4 06/18/25 USGOVT U.S.Treasury Note 4.25 01/31/2026 5,000,000.00 99.988 4,999,414.06 154.98 535.40 (50.54) 4,999,949.46 91282CGR6 03/13/25 US GOVT U.S.Treasury Note 4.625 03/15/2026 10,000,000.00 100.523 10,052,343.75 (13,371.62) (41,733.66) 10,610.09 10,010,610.09 91282CGV7 06/11/25 US GOVT U.S.Treasury Note 3.75 04/15/2026 10,000,000.00 99.633 9,963,281.25 10,953.75 24,345.75 (12,373.00) 9,987,627.00 3133ERDZ1 05/10/24 AGCY FFCB 4.75 05/08/2026 3,000,000.00 99.820 2,994,588.00 701.60 4,427.39 (984.61) 2,999,015.39 3133ERGA3 06/24/24 AGCY FFCB 5.0 06/04/2026 4,000,000.00 100.429 4,017,141.00 (2,273.80) (13,257.56) 3,883.44 4,003,883.44 91282CHM6 06/11/25 USGOVT U.S.Treasury Note 4.5 07/15/2026 10,000,000.00 100.367 10,036,718.75 (8,401.34) (18,288.97) 18,429.78 10,018,429.78 91282CLH2 02/21/25 USGOVT U.S.Treasury Note 3.75 08/31/2026 5,000,000.00 99.242 4,962,109.38 6,333.51 21,171.24 (16,719.38) 4,983,280.62 91282CLS8 03/13/25 USGOVT U.S.Treasury Note 4.12510/31/2026 10,000,000.00 100.164 10,016,406.25 (2,592.23) (7,750.19) 8,656.06 10,008,656.06 91282CDK4 10/29/25 USGOVT U.S.Treasury Note 1.25 11/30/2026 10,000,000.00 97.516 9,751,562.50 39,624.66 39,624.66 (208,812.84) 9,791,187.16 91282CME8 03/13/25 USGOVT U.S.Treasury Note 4.25 12/31/2026 10,000,000.00 100.422 10,042,187.50 (5,845.44) (18,174.78) 24,012.72 10,024,012.72 91282CMH1 03/13/25 USGOVT U.S.Treasury Note 4.12501/31/2027 10,000,000.00 100.227 10,022,656.25 (3,011.89) (9,262.96) 13,393.29 10,013,393.29 91282CMP3 10/29/25 US GOVT U.S.Treasury Note 4.125 02/28/2027 10,000,000.00 100.730 10,073,046.88 (9,331.94) (9,331.94) 63,714.94 10,063,714.94 3133EP6K6 02/21/25 AGCY FFCB 4.5 03/26/2027 5,000,000.00 100.467 5,023,355.05 (2,827.76) (9,288.31) 14,066.74 5,014,066.74 91282CKJ9 06/11/25 USGOVT U.S.Treasury Note 4.5 04/15/2027 5,000,000.00 100.832 5,041,601.56 (5,612.91) (12,136.28) 29,465.28 5,029,465.28 912828ZS2 03/13/25 US GOVT U.S.Treasury Note 0.5 05/31/2027 10,000,000.00 92.676 9,267,578.13 81,653.89 258,819.87 (473,602.00) 9,526,398.00 3130AWBZ2 06/11/25 AGCY FHLB 4.125 06/11/2027 5,000,000.00 100.195 5,009,738.25 (1,194.59) (2,640.39) 7,097.86 5,007,097.86 91282CFB2 06/11/25 US GOVT U.S.Treasury Note 2.75 07/31/2027 5,000,000.00 97A57 4,872,851.56 14,451.51 32,210.77 (94,937.67) 4,905,062.33 91282CFH9 02/21/25 USGOVT U.S.Treasury Note 3.125 08/31/2027 5,000,000.00 97.316 4,865,820.31 13,035.35 44,370.59 (89,809.10) 4,910,190.90 Total General 132,000,000.00 131,012,400.43 119,659.45 283,640.64 (703,958.93) 131,296,041.07 Operating Grand Total 132,000,000.00 131,012AM.43 119,659.45 283,640.64 (703,958.93) 131,296,041.07 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 15 Hillto Securities � City of Southlake I� December 31, 2025 to December 31, 2026 Projected Cash Flows CUSIP Detailed Security Description Post Date Interest Principal Total Amount General Operating 91282CHM6 U.S.Treasury Note 4.5 07/15/2026 01/15/26 225,000.00 225,000.00 91282CFB2 U.S.Treasury Note 2.75 07/31/2027 02/02/26 68,750.00 68,750.00 91282CJV4 U.S.Treasury Note 4.25 01/31/2026 02/02/26 106,250.00 106,250.00 91282CJV4 U.S.Treasury Note 4.25 01/31/2026 02/02/26 5,000,000.00 5,000,000.00 91282CMH1 U.S.Treasury Note 4.125 01/31/2027 02/02/26 206,250.00 206,250.00 91282CFH9 U.S.Treasury Note 3.125 08/31/2027 03/02/26 78,125.00 78,125.00 91282CLH2 U.S.Treasury Note 3.75 08/31/2026 03/02/26 93,750.00 93,750.00 91282CMP3 U.S.Treasury Note 4.125 02/28/2027 03/02/26 206,250.00 206,250.00 91282CGR6 U.S.Treasury Note 4.625 03/15/2026 03/16/26 231,250.00 231,250.00 91282CGR6 U.S.Treasury Note 4.625 03/15/2026 03/16/26 10,000,000.00 10,000,000.00 3133EP6K6 FFCB 4.5 03/26/2027 03/26/26 112,500.00 112,500.00 91282CGV7 U.S.Treasury Note 3.75 04/15/2026 04/15/26 187,500.00 187,500.00 91282CGV7 U.S.Treasury Note 3.75 04/15/2026 04/15/26 10,000,000.00 10,000,000.00 91282CKJ9 U.S.Treasury Note 4.5 04/15/2027 04/15/26 112,500.00 112,500.00 91282CLS8 U.S.Treasury Note 4.12510/31/2026 04/30/26 206,250.00 206,250.00 3133ERDZ1 FFCB 4.75 05/08/2026 05/08/26 71,250.00 71,250.00 3133ERDZ1 FFCB 4.75 05/08/2026 05/08/26 3,000,000.00 3,000,000.00 912828ZS2 U.S.Treasury Note 0.5 05/31/2027 06/01/26 25,000.00 25,000.00 91282CDK4 U.S.Treasury Note 1.25 11/30/2026 06/O1/26 62,500.00 62,500.00 3133ERGA3 FFCB 5.0 06/04/2026 06/04/26 100,000.00 100,000.00 3133ERGA3 FFCB 5.0 06/04/2026 06/04/26 4,000,000.00 4,000,000.00 3130AWBZ2 FHLB 4.125 06/11/2027 06/11/26 103,125.00 103,125.00 91282CME8 U.S.Treasury Note 4.25 12/31/2026 06/30/26 212,500.00 212,500.00 91282CHM6 U.S.Treasury Note 4.5 07/15/2026 07/15/26 225,000.00 225,000.00 91282CHM6 U.S.Treasury Note 4.5 07/15/2026 07/15/26 10,000,000.00 10,000,000.00 91282CFB2 U.S.Treasury Note 2.75 07/31/2027 07/31/26 68,750.00 68,750.00 91282CMH 1 U.S.Treasury Note 4.125 01/31/2027 07/31/26 206,250.00 206,250.00 91282CFH9 U.S.Treasury Note 3.12508/31/2027 08/31/26 78,125.00 78,125.00 91282CLH2 U.S.Treasury Note 3.75 08/31/2026 08/31/26 93,750.00 93,750.00 91282CLH2 U.S.Treasury Note 3.75 08/31/2026 08/31/26 5,000,000.00 5,000,000.00 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 16 Hillto Securities � City of Southlake I� December 31, 2025 to December 31, 2026 Projected Cash Flows CUSIP Detailed Security Description Post Date Interest Principal Total Amount 91282CMP3 U.S.Treasury Note4.125 02/28/2027 08/31/26 206,250.00 206,250.00 3133EP6K6 FFCB 4.5 03/26/2027 09/28/26 112,500.00 112,500.00 91282CKJ9 U.S.Treasury Note 4.5 04/15/2027 10/15/26 112,500.00 112,500.00 91282CLS8 U.S.Treasury Note 4.12510/31/2026 11/02/26 206,250.00 206,250.00 91282CLS8 U.S.Treasury Note 4.12510/31/2026 11/02/26 10,000,000.00 10,000,000.00 912828ZS2 U.S.Treasury Note 0.5 05/31/2027 11/30/26 25,000.00 25,000.00 91282CDK4 U.S.Treasury Note 1.25 11/30/2026 11/30/26 62,500.00 62,500.00 91282CDK4 U.S.Treasury Note 1.25 11/30/2026 11/30/26 10,000,000.00 10,000,000.00 3130AWBZ2 FHLB 4.125 06/11/2027 12/11/26 103,125.00 103,125.00 91282CME8 U.S.Treasury Note 4.25 12/31/2026 12/31/26 212,500.00 212,500.00 91282CME8 U.S.Treasury Note 4.25 12/31/2026 12/31/26 10,000,000.00 10,000,000.00 Grand Total 4,121,250.00 77,000,000.00 81,121,250.00 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 1 Hillto Securities � City of Southlake I� December 31, 2025 to December 31, 2026 Projected Cash Flows Totals Month .Year Interest Principal Total Amount January 2026 225,000.00 225,000.00 February 2026 381,250.00 5,000,000.00 5,381,250.00 March 2026 721,875.00 10,000,000.00 10,721,875.00 April 2026 506,250.00 10,000,000.00 10,506,250.00 May 2026 71,250.00 3,000,000.00 3,071,250.00 June 2026 503,125.00 4,000,000.00 4,503,125.00 July 2026 500,000.00 10,000,000.00 10,500,000.00 August 2026 378,125.00 5,000,000.00 5,378,125.00 September 2026 112,500.00 112,500.00 October 2026 112,500.00 112,500.00 November 2026 293,750.00 20,000,000.00 20,293,750.00 December 2026 315,625.00 10,000,000.00 10,315,625.00 Total 4,121,250.00 77,OOOAW.00 81,121,250.00 ■ Interest ■ Principal $30,000,000 $20,000,000 $10,000,000 $ Jan-26 Fe - Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 ©Hilltop Securities Asset Management,LLC.All rights reserved. Page 18 Hillto Securities � City of Southlake I� As of December 31,2025 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 offuture 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 offixed 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 offactors 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 ofthe 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. 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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. OHilltop Securities Asset Management,LLC.All rights reserved. Page 19