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Treasury Investment Board reports $40.9 million portfolio, $905,000 year-to-date income
Summary
At a brief meeting, the Treasury Investment Board was told its combined Huntington and Fifth Third portfolios totaled about $40.9 million at the end of the second quarter 2025 and had earned roughly $905,000 year-to-date; staff described recent moves into certificates of deposit and treasuries and a laddering strategy amid delayed Fed rate cuts.
The Treasury Investment Board heard a second-quarter 2025 investment report saying the board’s combined Huntington and Fifth Third accounts ended the quarter at just over $40,900,000 and that the portfolio has earned about $905,000 year-to-date, the Finance Director said.
The report matters because the portfolio’s interest income is a revenue source for the jurisdiction and staff has moved cash into longer-term instruments to lock in yield ahead of anticipated changes in the federal funds rate. The Finance Director said the board’s interest income as of June stands at 68% of the budget estimate.
Board members were told that staff had about $853,000 in money-market funds at the end of the quarter and that $750,000 of that amount has since been invested in certificates of deposit that settled in the current month and mature in 2029. The Finance Director said the portfolio’s cost basis rose by about $4,900,000 compared with the first quarter, largely because staff moved $4,600,000 from an overnight ICS account at Huntington into investments in treasuries, which the director described as having credit risk equivalent to CDs but offering higher yield.
For the quarter, Huntington and Fifth Third combined produced a net total of $336,000 in income. The remaining balance in the ICS account with Huntington stood at $5,400,000 and that account earned just over $62,000 during the quarter; the Finance Director reported the current rate there is 3.7%. In total, the portfolio earned just under $400,000 in the quarter.
Staff described a laddering approach to investments, with a preference for instruments maturing in 2029 and 2030 where yields are acceptable and noted that a “fair amount” of the portfolio is maturing in 2026 and 2027. The Finance Director said recent three-year CD rates have been about 3.75% to 3.85% and that market expectations for Federal Reserve policy have shifted: cuts to the federal funds rate that were anticipated earlier in the year are now expected to be postponed until the Fed meeting in September, according to market participants referenced by staff.
No formal board action on investment strategy was taken at the meeting; the presentation was received and board members had no questions at the time of the report. The meeting record shows that the board approved the minutes from the April 24, 2025 meeting as submitted and set the next meeting for Oct. 23, 2025. The board adjourned at 7:00 p.m.
