On the agenda: Marianna meeting — Datacenter (Jun 2)

City of Marianna
Workshop Meeting
June 2, 2026
4:30 PM
(Regular Meeting to follow at 6:00 PM)
Old City Hall Commission Room
2897 Jefferson Street
Marianna, FL 32446
1. Call To Order
2. Roll Call
Mayor and Commissioners

Allen Ward, II - Mayor/Commissioner District 3
Kenneth Hamilton - Mayor Pro Tem/Commissioner District 5
Travis Ephriam - Commissioner District 1
Rick Pettis - Commissioner District 2
Rico Williams - Commissioner District 4

3. Invocation And Pledge To The Flag
4. Workshop Discussion
4.A. Investment Policy - Regions Bank
Documents:
ASSET ALLOCATION DECK_ CITY OF MARIANNA_2026.PDF

4.B. AMI Gas Meter Replacement Project
Florida Gas Utility (FGU)
Documents:
MARIANNA AMI PRESENTATION.PDF

4.C. Natural Gas Financial Hedging
Florida Gas Utility (FGU)
Documents:
HEDGING INFORMATION - MARIANNA.PDF

5. Adjourn

HEDGING INFORMATION - MARIANNA.PDF

5. Adjourn
The City of Marianna is an Equal Opportunity Employer and a DrugFree Workplace. In accordance with the adopted Section 504
Policy, the City will take affirmative steps to reasonably
accommodate the disabled and ensure their needs are equitably
represented in City programs and activities. Pursuant to Title VI and
the Civil Rights Act of 1964, the City will not exclude from
participation in, deny the benefits of, or subject to discrimination
anyone on the grounds of race, color, national origin, sex, age,
disability, religion, language, income or family status. For assistance
with EEO, Title VII or Section 504 matters contact the Stormie
Bigham at 850 -482-4353. The City also has a Fair Housing
Ordinance. For assistance with Fair Housing matters contact Kay
Dennis at 850-482-2786. In accordance with the Americans with
Disabilities Act, persons needing a special accommodation to
participate in this meeting should contact the City Clerk’s Office at
850-482-4353 no later than 3 days prior to the meeting. The
Commission room is located at old City Hall at 2897 Jefferson
Street, Marianna, FL.

REGIONS ASSET MANAGEMENT

Investment Review &
Asset Allocation Process
June 2, 2026

City of Marianna
Presented By: John von Eschenbach

Internal Use

CITY OF MARIANNA IMA

Data as of: March 31, 2026
Managed Since: February 04, 2025

CITY OF MARIANNA IMA
As of 04/30/2026
Inception Date: 02/04/2025
Portfolio Manager: John von Eschenbach

2
For use in one-on-one presentation with advisory client only. Please see important disclaimers and disclosures at the end of this document.

CITY OF MARIANNA IMA
Portfolio Summary

Data as of: April 30, 2026
Managed Since: February 04, 2025

Asset Allocation
% of
Market Value Mkt Val
Cash and Equivalents
Total

$
$

17,821,805
17,821,805

100.0%
100.0%

$17.8M

Allocation Over Time

Annual Ending Market Value
$
18.8M

%
100

18.4M
80
18M
60

17.6M
17.2M

20

16.8M

0

16.4M
2025

2025

Cash
and
Equivalents

40

2026

2026

3
For use in one-on-one presentation with advisory client only. Please see important disclaimers and disclosures at the end of this document.

CITY OF MARIANNA IMA
Performance Summary

Data as of: April 30, 2026
Managed Since: February 04, 2025

By Asset Class

Market Value

3 Months

Year
to Date
(4 Months)

Total Fund -Gross
Total Fund -Net Fee

17,821,805
17,821,805

.87
.83

1.18
1.13

4.02
3.84

4.05
3.88

Cash and Equivalents

17,821,805

.87

1.18

4.00

3.99

.86

1.14

3.95

3.99

BofA Merrill Lynch US 3-Month Treasury Bill Index

1 Year

Inception
to Date
02/04/2025

4
For use in one-on-one presentation with advisory client only. Please see important disclaimers and disclosures at the end of this document.

CITY OF MARIANNA IMA
Investment Summary

Data as of: April 30, 2026
Managed Since: February 04, 2025

Trailing Time Periods

Investment Summary
Beginning Account Value
Net Contributions/Withdrawals
Fees Deducted
Income Earned
Market Appreciation
Ending Account Value

3 Months

Year
to Date
(4 Months)

1 Year

Inception
to Date
02/04/2025

17,674,486.66
.00
-7,275.25
154,593.95
.00
17,821,805.36

17,622,528.47
.00
-9,670.30
208,947.19
.00
17,821,805.36

17,163,205.78
.00
-30,955.18
795,634.83
-106,080.07
17,821,805.36

.00
17,000,000.00
-36,264.00
858,069.36
.00
17,821,805.36

.87

1.18

4.02

4.05

Performance Summary
Total Fund -Gross

Growth and Net Investment
$
20M

Account (02/04/2025)

Net Investment

16M
12M
8M
4M

4
26
/0
20

3
26
/0
20

2
26
/0
20

1
26
/0
20

2
25
/1
20

1
25
/1
20

0
25
/1
20

9
25
/0
20

8
25
/0
20

7
25
/0
20

6
25
/0
20

5
25
/0
20

4
25
/0
20

3
25
/0
20

2
25
/0
20

20

25
/0

1

0

5
For use in one-on-one presentation with advisory client only. Please see important disclaimers and disclosures at the end of this document.

CITY OF MARIANNA IMA
Holdings Detail

Data as of: April 30, 2026
Managed Since: February 04, 2025

Units

Unit Cost

Total Cost

Price

17,769,744.920

1.00

17,769,744.92
17,769,744.92

1.00

Market
Value

Weight

17,821,805.36
17,821,805.36

100.0
100.0

Unit
Income

Annual
Income

Current
Yield

.04

624,784.23
624,784.23

3.516
3.516

Cash and Equivalents
Cash Equivalents
Fidelity Government Portfolio
Total for Cash Equivalents
Total: Cash and Equivalents

17,769,744.92

17,821,805.36

100.0

624,784.23

3.516

Total

17,769,744.92

17,821,805.36

100.0

624,784.23

3.516

6
For use in one-on-one presentation with advisory client only. Please see important disclaimers and disclosures at the end of this document.

Regions Asset Management

Asset Allocation Process

7

Internal Use

Importance of Strategic Asset Allocation
• Asset allocation is the
diversification across different
asset classes.
• Studies have shown asset
allocation policy is the
dominant contributor to total
return of a portfolio when
evaluating various aspects of
the investment management
process.*

On average, security selection and
market timing account for only a
small residual portion of the variance
of actual returns.
Other
2.10%
Security Selection
4.60%

Market
Timing
1.80%

Strategic
Asset
Allocation
91.50%

*Source: Financial Analysts Journal: July/August 1986, May/June 1991 G.P. Brinson, B.D. Singer and G.L. Beebower

Internal Use

ASSET MANAGEMENT

8

Four Levels of Active Decisions

Determine Strategic Asset
Allocations

Implement Tactical Asset
Allocation Changes

Set Investment
Implementation

• Asset allocation determines
91.5%* of portfolio’s return
• Long-term focus (7-10
years) on capital market
expectations

• Make tactical adjustments
within stocks, bonds, and
diversified strategies
• Shorter-term focus (2-3
years) on risk / return
expectations

• Fulfillment options: Active /
Passive, SMA Manager /
Manager model / MF / ETF
• Unique needs – tax
considerations / distribution
requirements

Monitor, Rebalance and
Refine
• Continual monitoring of
progress toward client’s
goals
• Rebalance as necessary
• Refine the portfolio as
circumstances require

The Portfolio Manager coordinates this process for each client to
deliver a solution specifically tailored to meet their unique goals
and circumstances.

*Source: Financial Analysts Journal: July/August 1986, May/June 1991 G.P. Brinson, B.D. Singer and G.L. Beebower

Internal Use

ASSET MANAGEMENT

9

Strategic vs. Tactical
Traditionally, firms have employed two types of asset allocation strategies:
1.

Strategic (Static)
Asset class target allocations are established based upon long-term risk
and return expectations, typically 7-10 years.

›

Example: 40% equity target, 40% fixed income target and 20%
diversified strategies target



2.

Tactical (Dynamic)
Adjustments are made to target allocations based upon a short-term risk
and return expectations of the various asset classes, typically 2-3 years.

›


Example: 45% equity target with an allowable range of 30 – 50%

In Both Cases,


Portfolios will be rebalanced if allocations stray too far from targets



Target allocations will be revisited with changes in client objectives
10

Internal Use

ASSET MANAGEMENT

Efficient Frontier
Risk Return Tradeoff: Equity & Fixed Income
11%
85%

10%

Return

50%

8%

40%

7%

25%

Growth with Income
Balanced

Income with Growth
Current Income

6%
5%
4%

Aggressive

65%

9%

100% Stocks

100% Bonds

0%

2%

4%

6%

Time Period
1926-2025

8% 10% 12% 14% 16% 18% 20% 22%

Volatility (Standard Deviation)
Time Period: 1926-2025
Equity Index Source: S&P 500-Morningstar Direct
Fixed Income Index Source: 5-Year Intermediate Term Gov’t Bond-Ibbotson

Internal Use

ASSET MANAGEMENT

11

Current Asset Allocation Without Diversified Strategies Positioning
Historical**

Return

Std, Dev

CME***

Equity
100%

Fixed
Income
0%

Equity:
85-100%
Fixed Income:
0%
Cash:
0% to 15%

10.49%
(100%)*

19.57%
(100%)*

6.79%

Equity
85%

Fixed
Income
15%

Equity:
70% to 100%
Fixed Income: 0% to 30%
Cash:
0% to 10%

9.91%
(95%)*

16.67%
(85%)*

6.43%

Growth w/Income Objective- Current 65/35/0
-Majority of assets in equities
-Long-term investment horizon
-Income as a secondary consideration
-Relatively risk tolerant

Equity
65%

Fixed
Income
35%

Equity:
50% to 80%
Fixed Income: 20% to 50%
Cash:
0% to 10%

9.00%
(86%)*

12.89%
(66%)*

5.96%

Balanced Objective- Current 50/50/0
-Balanced between equities and fixed income
-Long-term investment horizon
-Balances need for income and growth
-Average tolerance for risk

Equity
50%

Fixed
Income
50%

Equity:
35% to 65%
Fixed Income: 35% to 65%
Cash:
0% to 10%

8.20%
(78%)*

10.21%
(52%)*

5.61%

Income w/Growth Objective- Current 40/60/0
-Majority of assets in fixed income
-Medium to long-term investment horizon
-Focus primarily on income with some growth
-Moderate tolerance for risk

Equity
40%

Fixed
Income
60%

Equity:
25% to 55%
Fixed Income: 45% to 75%
Cash:
0% to 10%

7.61%
(73%)*

8.56%
(44%)*

5.37%

Equity
25%

Fixed
Income
75%

Equity:
10% to 40%
Fixed Income: 60% to 90%
Cash:
0% to 10%

6.67%
(64%)*

6.50%
(33%)*

5.02%

Equity
0%

Fixed
Income
100%

Equity:
0%
Fixed Income: 85% to100%
Cash:
0% to 15%

4.89%
(47%)*

5.63%
(29%)*

4.43%

Growth Objective- Current 85/15/0
-Dominated by equities
-Long-term investment horizon
-Emphasizes long-term capital growth
-Relatively risk tolerant

Current Income Objective- Current 25/75/0
-Dominated by fixed income
-Medium term investment horizon
-Low risk tolerance
Enhanced Income-Current 0/100/0
-No equity exposure
-Medium term investment horizon
-Emphasizes income
-Low risk tolerance

Longer
LongerTerm
Term
More
Volatility
More Volatility

Aggressive Growth- Current 100/0/0
-No fixed income exposure
-Long-term investment horizon
-Emphasizes long-term capital growth
-Relatively risk tolerant

Range

Shorter Term
Less Volatility

Strategic Allocation

*Comparison to all equity portfolio; **Time period 1/1/1926 to 12/31/2025; ***10 Year Capital Market Expectations (CMEs) are provided by Regions Asset Management. Please see Important Disclosure. Equity Index Source:
12S&P 500Morningstar Direct; Fixed Income Index Source: 5-Year Intermediate Term Gov’t Bond-Ibbotson until 12.31.24. Beginning 1.1.25 Fixed Incomes Source: Bloomberg Intermediate US Treasury TR USD-Morningstar Direct;
Current Asset Allocation Positioning implemented 5.17.22.

Internal Use

ASSET MANAGEMENT

Historical Portfolio Statistics (1926-2025)
Fixed Income
Equity
Compounded Annual Return

4.9%

6.7%

7.6%

8.2%

9.0%

9.9%

10.5%

Standard Deviation

5.6%

6.5%

8.6%

10.2%

12.9%

16.7%

19.6%

Highest Return

29.1%

27.2%

26.0%

27.9%

35.7%

46.2%

54.0%

Lowest Return

-9.4%

-12.6%

-18.7%

-22.8%

-29.0%

-37.2.%

-43.3%

Range

38.5%

39.8%

44.8%

50.7%

64.7%

83.4%

97.3%

Percent Periods Positive

88%

87%

82%

80%

78%

76%

74%

Percent Periods Negative

12%

13%

18%

20%

22%

24%

26%

Source: Prepared by Regions Asset Management using data from Morningstar. Equity index is represented by the S&P 500. Fixed Income index is represented by the Ibbotson 5 Year Intermediate Term
Government Bond. All statistics are based on calendar year returns from 1926-2025. Current Asset Allocation Positioning implemented 5.17.22.

Internal Use

ASSET MANAGEMENT

13

Range of Total Returns for Selected Allocations
Annual Total Returns, 1926-2025
Portfolio Allocation

60%
50%

Equities

Fixed
Income

85%

15%

11.25%

50%

50%

8.69%

25%

75%

6.86%

46%

40%
28%

30%

27%

Annual Avg.
Total Return

28%

25%
20%

20%

17%

Rolling Return Minimum/Maximum Periods

Min.
Max.
Min.
Max.
Min.
Max.

19%

3 Year
1929-1931
1995-1997
1929-1931
1995-1997
1929-1931
1984-1986

18%

5 Year
1928-1932
1995-1999
1928-1932
1982-1986
1928-1932
1982-1986

18%

10%

-3%

-4%

-10%

-12%

-13%

15%
3%

1%

0%

10 Year
1999-2008
1989-1998
1999-2008
1982-1991
1937-1946
1982-1991

14%
3%

0%

-9%

-20%
-23%

-30%
-40%
-50%

-22%

-37%

1 – Yr.

3 – Yr.

5 – Yr.

10 – Yr.

Source: Prepared by Regions Asset Management using data from Morningstar. Equity index is represented by the S&P 500. Fixed Income index is represented by the Ibbotson 5 Year Intermediate
Term Government Bond. All statistics are based on calendar year returns from 1926-2025. Current Asset Allocation Positioning implemented 5.17.22.

Internal Use

ASSET MANAGEMENT

14

Current Positioning – Overall
Tactical Asset Allocation

Equity

Neutral

Neutral

Fixed Income

Diversified Strategies
Cash

Outlook

Neutral
Neutral

Strategic
Target*

40%

40%

20%
0%

Tactical
Target*

Rationale
•

The S&P 500’s valuation remains stretched by historical standards, but positive earnings revisions for
2026 and 2027 are supportive of further upside in the coming quarters. Economic surprises skewed
positively prior to the government shutdown, and we anticipate fiscal spending and less restrictive
monetary policy to boost economically sensitive sectors this year. Concerns surrounding outsized
spending on AI infrastructure are worth monitoring as they could provide opportunities to own longerterm winners at better valuations.

•

Small and mid-cap (SMid) U.S. stocks have the potential for a catch-up trade in coming quarters as we
expect the U.S. economy to grow by around 2.5% in ‘26, benefitting more economically sensitive sectors.
Greater clarity/confidence regarding the path forward for monetary policy and for the U.S. economy
could spur inflows into SMid in the near-term, and an uptick in M&A is another potential tailwind.

•

Investment-grade (IG) corporate bonds are beholden to the path taken by rates in the belly of the
Treasury curve, and we see little downside for Treasury yields in the 5- to 10-year portion of the curve at
present, likely limiting upside for higher quality corporates.

•

HY corporates rallied to close out the year and have continued to garner investor capital to kick off the
new year, pulling credit spreads to two-decade low levels around 250-basis points. Less restrictive
monetary policy and U.S. economic growth we believe will buoy corporate bonds in the coming year but
further spread tightening from here would likely be an opportunity to lower exposure.

•

Foreign bonds are attractive diversifiers, but should be sized appropriately due to elevated volatility,
particularly emerging markets bonds.

•

We expect interest rate volatility to ramp up this year, and with lofty equity valuations in place, alternative
strategies continue to hold appeal and we believe will continue to play a valuable supporting role within
portfolios.

•

Given our expectation that the FOMC will continue cutting the Fed funds rate in the coming year, investors
should consider moving some portion of their cash/money market holdings into longer duration bonds to
lock-in current yields farther out on the curve.

40%

40%

20%
0%

*Asset allocation weightings based on a balanced portfolio.
Asset allocation weightings and rationales reflect the firm’s views as of the last Investment Working Group meeting held on 1/21/26

Internal Use

ASSET MANAGEMENT

15

Correlation Benefits (10 Years)

1.00 = Perfect Correlation, investments’ performances move in the same direction and in constant proportion to each other.
0.99 – 0.75 = High Correlation, investments’ performances are highly related to each other.
0.74 – 0.01 = Low Correlation, investments’ performances are somewhat independent of each other.
0.00 = No Correlation, investments’ performances have no similar traits. Performances appear random relative to each other.
-0.01 - -0.74 = Low Negative Correlation, investments’ performances are somewhat independent of each other.
-0.75 - -0.99 = High Negative Correlation, investments move in opposite directions and in similar proportions to each other.
-1.00 = Perfect Negative Correlation, One investment’s positive performance is exactly countered by another’s negative performance
Data Source: eVestment Alliance and Morningstar. Indexes used – Large Cap: S&P 500 Index; Small/Mid Cap: Russell 2500 Index; International Developed: MSCI World ex US NR Index; Emerging Markets: MSCI
EM NR Index; Domestic Investment Grade Bonds: Bloomberg US Aggregate Index; International Bonds: Bloomberg Global Aggregate ex US Index; HY Taxable Bonds: Bloomberg US Corporate High Yield
Index; EM Bonds: JPM EMBI Global Index; Investment Grade Muni Bonds: Bloomberg US 1-15 Year Municipals Index ; HY Muni Bonds: Bloomberg US Municipals: High Yield Index; Hedge Funds: HFRX Global
Hedge Fund Index; Managed Futures: SG Trend Index; Hedge Fund-Credit: HFRX Fixed Income-Credit Index; Event Driven: HFRX Event Driven Index; Market Neutral: HFRX Equity Market Neutral Index; Hedged
Equity: HFRX Equity Hedge Index; Global Macro: HFRX Macro-Discretionary Thematic Index. All correlation coefficients calculated are based on daily return data for period 1/1/16 to 12/31/25. This chart is for
16
illustrative purposes only. Please see important disclosure.

Internal Use

ASSET MANAGEMENT

Market Themes: US Inflation

17
WEALTH MANAGEMENT

Market Themes: Oil Shock

Source: Trading Economics

18
WEALTH MANAGEMENT

Market Themes: Labor Markets

19
WEALTH MANAGEMENT

Market Returns
Trailing
3-Months

YTD

3/31/2026

3/31/2026

S&P 500 Index (Large Cap Stocks)

-4.3%

S&P 500 Growth Index (Large Cap Growth)

2025

2024

2023

2022

2021

2020

5-Year
Trailing

-4.3%

17.4%

25.5%

26.3%

-18.1%

29.5%

17.6%

12.1%

-8.1%

-8.1%

21.1%

37.3%

30.0%

-29.4%

32.6%

32.9%

12.6%

S&P 500 Value Index (Large Cap Value)

0.0%

0.0%

13.3%

12.2%

22.2%

-5.2%

26.0%

0.5%

10.7%

S&P 1000 Index (Small to Mid Cap)

2.8%

2.8%

7.2%

12.1%

16.3%

-14.0%

25.5%

12.8%

6.2%

S&P 400 Mid Cap Index (Mid Cap)

2.5%

2.5%

7.7%

13.7%

16.4%

-13.1%

25.0%

13.5%

6.9%

S&P 600 Small Cap Index (Small Cap)

3.5%

3.5%

6.2%

8.5%

16.1%

-16.1%

26.9%

11.2%

4.5%

MSCI World Ex-US (Foreign Stocks)

-0.7%

-0.7%

32.4%

5.5%

15.6%

-16.0%

7.4%

11.1%

7.0%

MSCI EAFE Index (Foreign Developed Stocks)

-1.2%

-1.2%

31.3%

3.7%

18.2%

-14.5%

10.5%

8.5%

7.9%

MSCI EM Index (Emerging Stocks)

-0.2%

-0.2%

33.2%

7.8%

9.8%

-20.1%

-2.4%

18.1%

3.7%

Bloomberg US Agg Bond (Core Bond)

0.0%

0.0%

7.2%

1.4%

5.5%

-13.0%

-1.4%

7.4%

0.3%

Bloomberg Global Agg Ex USD (International Bond)

-1.1%

-1.1%

8.1%

-1.6%

5.7%

-16.2%

-4.7%

9.2%

-1.5%

Bloomberg National Muni (Municipal Bond)

-0.2%

-0.2%

4.4%

0.9%

6.4%

-8.5%

1.5%

5.2%

0.8%

Bloomberg High Yield Corporate (High Yield Bond)

-0.5%

-0.5%

8.6%

8.2%

13.4%

-11.2%

5.3%

7.1%

4.2%

Bloomberg US Treasury TIPS (Inflation-Protected Bond)

0.3%

0.3%

7.0%

1.8%

3.9%

-11.8%

6.3%

10.7%

1.5%

Bloomberg 1-3M T-Bill Index (Money Market)

0.9%

0.9%

4.3%

5.3%

5.1%

1.5%

0.0%

0.5%

3.4%

-0.6%

-0.6%

7.2%

5.2%

3.1%

-4.4%

3.8%

6.6%

2.5%

Equities

Fixed Income

Diversified Strategies
HFRX Global Hedge Fund Index (Liquid Alternative)

Source: Prepared by Regions Asset Management using data from Bloomberg. Past performance is not an indication of future results.
Please see important disclosure at the end of this presentation

Internal Use

WEALTH MANAGEMENT

20

Fixed Income

Fixed Income: Overview & Outlook
Bullish

Bearish

3-month
2-year
5-year
10-year
30-year

Yields as of February 28, 2026
US Treasuries
3.66%
3.37%
3.50%
3.94%
4.61%

Summary View: Neutral
• The Federal Open Market Committee (FOMC) was set to stand pat on rates when it met in mid-March even
before the conflict in the Middle East broke out, but on the heels of the rapid and unsettling rise in energy
prices the FOMC was all but certain to leave rates unchanged, which is what they did. Fed funds futures are
now pricing in just one 25-basis point cut this calendar year, which is reasonable, but the longer energy
prices remain elevated the greater the likelihood that rate cuts get completely priced out for 2026.
• Investment-grade (IG) corporate bonds remain beholden to the path taken by rates in the belly of the
Treasury curve, and we see little downside for Treasury yields in the 5- to 10-year portion of the curve at
present, likely limiting total return potential for higher quality corporate issues. The credit spread over the
Treasury curve for the Bloomberg U.S. Corporate index sat at 92-basis points in mid-March, a 13-basis
point move higher since mid-February. While the recent spread widening makes IG corporates more
appealing, with economic uncertainty elevated, we anticipate risk appetite to remain subdued and for
investors to require greater compensation, i.e. yield, for taking on credit risk in this environment. As a
result, we would wait for greater dislocations and spread widening before allocating additional capital to
IG corporates.
• Credit spreads on high yield bonds have widened since bottoming in mid-January, and by mid-March sat
at 312-basis points, or 65-basis points above the January low. With a yield-to-worst (YTW) of 7.25% on the
Bloomberg U.S. High Yield Corporate index, high yield corporates now hold greater appeal, and the
current credit spread better compensates investors for taking credit risk. However, given that the
economic backdrop is less certain than before, we would expect risk appetite to remain in check in the
near-term until some clarity can be found. We maintain an exposure to high yield in-line with our strategic
target.
• We are neutral on developed market sovereigns abroad and U.S. dollar denominated emerging market
debt to diversify fixed income portfolios, clip a relatively attractive coupon, and reduce U.S. interest rate
beta. Developed market sovereign bonds could be challenged by energy prices putting upward pressure
on inflation, potentially leading some central banks abroad to hike policy rates in response. Emerging
market central banks also face this risk, but most have been less aggressive in easing and may be able to
stand pat as opposed to being forced to tighten policy into a short-term energy supply driven shock.

Total Return
Bloomberg US Agg Bond Index
Bloomberg High Yield Corp Index
Bloomberg Global Agg Ex USD Index
($Hedged)
Bloomberg EM USD Aggregate Index
Bloomberg US Treasury TIPS Index
Bloomberg 1-3M T-Bill Index
Source: Prepared by Regions Asset Management using data from Bloomberg.

Internal Use

WEALTH MANAGEMENT

YTD
2/28/2026

2025

2024

2023

1.7%
0.7%

7.2%
8.6%

1.4%
8.2%

5.5% -13.0% -1.4%
13.4% -11.2% 5.3%

1.7%

4.8%

3.4%

7.1%

-11.2% -1.3%

1.6%
1.6%
0.6%

11.0%
7.0%
4.3%

6.6%
1.8%
5.3%

9.1%
3.9%
5.1%

-15.3% -1.6%
-11.8% 6.3%
1.5% 0.0%
21

2022

2021

Please see important disclosure at the end of this presentation

Market Themes: US Monetary Policy
FOMC Managed To Cut 50bps Last Year, No Cuts Priced For ‘26
Inflation Concerns & Uncertainty In Labor Has FOMC On Hold

Sources: Regions Multi-Asset Solutions, Bloomberg; All data in percentage terms. Data as of 3/31/26 unless otherwise indicated.
Past performance is not an indication of future results. Certain statements may be forward-looking and are based on current expectations and assumptions. These 22
statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially.
Internal Use

WEALTH MANAGEMENT

Market Theme: Fixed Income Rates
Rates Moving Higher Early In March As Price Of Oil Rises
Only Time Will Tell If The Market Is Over/Under Estimating Impact

Source: Prepared by Regions Asset Management using data from Bloomberg as of 03/31/26. Past performance is not an indication of future results.
Certain statements may be forward-looking and are based on current expectations and assumptions. These statements are not guarantees of future
performance and involve risks and uncertainties that may cause actual results to differ materially.
Internal Use

WEALTH MANAGEMENT

23

Important Disclosure
Trust and investment management services are offered through Regions Wealth Management, a business group of Regions Bank. The information contained herein was gathered from sources believed
to be reliable but is not guaranteed by Regions Bank nor is it to be considered all-inclusive. It is not meant to replace or supersede the information provided on your statement of account, which is the
official record of all activity and balances in your account for the period of time specified on the account statement. Further, the information does not purport to be a complete analysis of any security,
company or industry mentioned. The rationales contained in this presentation are the result of internal Working Groups and Committees within Regions Wealth Management, and do not necessarily
reflect the opinion of Regions Bank or its affiliates. The rationales are included for informative purposes only, and to provide thought processes behind the investment decisions made on behalf of some
clients. Opinions regarding any securities and/or sectors mentioned are subject to change at any time. Neither the information nor any opinion expressed shall constitute a solicitation for the purchase
or sale of any security.
This presentation is intended for the sole use of the present or prospective client named and is not to be distributed to any other party. The presentation also may contain information concerning your
current portfolio asset allocation, if applicable, a selected portfolio asset allocation (or reallocation if you currently maintain a portfolio), including selected information concerning the proposed
investment managers or investment vehicles to be used for your portfolio, and certain types of analytical information concerning your proposed portfolio or certain broad market indices. The
presentation is not intended as nor does it constitute tax or legal advice. You should consult your own lawyer, accountant or other professional advisor when planning to implement a strategy. All charts
presented are illustrations provided for informational purposes only and are not indicative of present or future results. The presentation should not be considered to be investment advice. No
guarantee is given that any specific investment or strategy referenced or described herein will be profitable or will achieve results equal to or exceeding historical, simulated or hypothetical results
presented. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio or assure a profit or protect against loss in any given market environment. Some strategies may
involve above average turnover which could negatively impact any net after tax gain experienced within a taxable account.
The Capital Market Expectations (“CME’s”) are Regions Asset Management estimates based on historical performance and the current market environment. We do not present the CME’s as actual future
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performance that may be realized, and should not be relied upon. The forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice, interpreted as a
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may never do so. They have inherent limitations because they are not based on actual transactions, but are based on the historical returns of the selected investments and various assumptions of past
and future events. The results do not represent, and are not necessarily indicative of, the results that may be achieved in the future; actual returns may vary significantly.
The S&P 500 “Index’’ is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Regions Investment Management. Copyright© 2021 S&P Dow Jones Indices LLC, a
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their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
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Some investment commentary referenced in this document has been excerpted from the Regions Wealth Management Economic & Market Commentary. In all cases, while the commentary accurately
reflects the opinions of the Analyst by whom it is written, it does not necessarily reflect the opinion of Regions Bank or its affiliates.
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Copyright 2025 Regions Bank, Member FDIC.

Internal Use

ASSET MANAGEMENT

Are Not Insured by Any Federal Government Agency | Are Not a Condition of Any Banking Activity

City of Marianna
June 2, 2026

Florida Gas Utility (FGU)
• Non-profit municipal joint action agency
• 27 Municipal Members throughout Florida
– Marianna has been a member of FGU since 1992

• Providing natural gas services for over 30 years

Advanced Metering Infrastructure (AMI)
Benefits
• Lower Costs – Reduces manual and drive-by reading which reduces
labor, fuel, and vehicle expenses

• Billing Accuracy – Ensures precise billing while reducing errors, missed
reads, and revenue loss

• Real-Time Data – Provides near real-time usage data for better system
visibility and forecasting

• Enhanced Safety – Detects abnormal gas flow quickly to identify leaks
and reduce risk

Project Scope
Transition to a complete AMI gas system by replacing old
meters and retrofitting healthy meters with ITRON modules
Total Gas Meter Count: 1,313

Replace

Evaluate
Condition

Retrofit

517

355

441

• Replace – Obsolete models over 10 years old
• Evaluate Condition – Obsolete models under 10 years old and
modern models over 10 years old
• Retrofit – Modern models under 10 years old

Meter & Module Selection – Devtech
(Sole Source)

 Devtech is the Florida provider for ITRON gas modules and

Honeywell meters
 Modules will come pre-installed on new meters
 ITRON modules also being used in the water meter project

Installation Bid Comparison
Utilities One

PMR

Lee’s

Equix

Install Meter w/ Module
(Res/Comm)

$194

$375

$260/$360

$405/$555

Install Module on
Existing Meter

$62

$75

$105

$238

$80/reg

$120/reg

$137/reg

6 Months

4 Months

4 Months

Meter Set Work
$98 / $168 / $286
and cost+5%
(Change Regulator, etc.)
Project Duration

1 Year

Cost Comparison

50/50 Replacement – Replace 657, Retrofit 656
PMR

Utilities One

Meters

$194,651

$194,651

Modules

$150,318

$150,318

Installation

$295,575

$168,130

Training

$4,500

$4,500

Variables Labor

-

$174,664

Regulators

$52,560

$55,188

Contingencies

$69,760

$74,745

TOTAL

$767,364

$822,196

Considerations
Labor charge is based off
replacing 50% of the
regulators and minor work
being performed to the other
50%.
In a previous meter
replacement project that
FGU managed for a Member,
45% of regulators were
replaced.

Project Timeline
Meters and Modules: 6-month lead time
6-month installation to begin upon material arrival
Total Estimated Project Duration: ~ 12 months

Recommendation
Florida Gas Utility recommends that Marianna proceeds with
awarding the Installation contract to Precision Meter Repair and
approving a total project budget not to exceed $800,000.

Natural Gas
Financial Hedging
June 2, 2026

1

Hedging is a type of investment that is
intended to reduce the risk of adverse price
movements in an asset

What is
Hedging?

All commodities can be hedged – corn,
apples, gasoline, natural gas

There are several
hedging products
available

Recommend starting
with Futures Contracts
or Call Options

2

Why Do We Hedge?
 Hedging is NOT an attempt to “beat the market”
 It reduces risk of price volatility
 Helps achieve budget goals & rate stability
 Should be viewed as an insurance policy

3

When Should
We Hedge?

 A good hedging policy is ongoing
 However, many don’t hedge until prices increase
 Utilities tend to become complacent once prices
drop and stabilize

4

Natural gas prices are currently very low
• Prices have been between $3.00-$4.00/dth ($0.30$0.40/therm)

Current
Forecast

Prices are projected to rise for a few reasons:
• More LNG is coming online
• Datacenters – large volumes, large budgets
• No new gas pipeline infrastructure; cuts & bottlenecks
• Recent cold set new pricing precedents; likely to happen
again
• Potential market impact if Iran war continues

5

1-year curve:

3-year curve:
NYMEX Henry Hub Futures - Settle Date 5/19/26

NYMEX Henry Hub Futures - Settle Date 5/19/26
$5.00

$5.50

$4.50

$5.00

$4.00

$4.50
$4.00

$3.50

$3.50

$2.50
$2.00

$/Dth

$/Dth

$3.00

$3.00
$2.50
$2.00

$1.50

$1.50

$1.00

$1.00

$0.50

$0.50

$0.00

$0.00

6

Current Forecast

7

Products

 There are several hedging products available
 Recommended:
 Futures Contracts – set price (what you pay)
 Call Options – set ceiling price (the most you will pay)
 Has an additional premium

8

Products - Examples
NYMEX Henry Hub Futures VS Member Call Option

$5.00

$5.00

$4.50

$4.50

$4.00

$4.00

$3.50

$3.50

$3.00

$3.00

$/Dth

$/Dth

NYMEX Henry Hub Futures VS Member Futures Contract

$2.50

$2.50

$2.00

$2.00

$1.50

$1.50

$1.00

$1.00

$0.50

$0.50

$0.00

$0.00
Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27
Member Price Paid With Futures Contract
Hypothetical Futures Contract Price

NYMEX Settle Date - 05/19/2026

Jul-27

Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27
Member Price Paid with Call Option
Hypothetical Call Option Price

NYMEX Settle Date - 05/19/2026

9

Products – Examples
2022 Basis Blowout

10

Call Option – Example
Strike Price (dth) Premium/Therm

% of Strike Price

June 26 – May 27

$4.00

$0.0320

8.0%

June 26 – May 27

$4.50

$0.0205

4.6%

June 26 – May 27

$5.00

$0.0166

3.3%

 Current price for a 1 year strip is $3.50 (futures price)

11

Quantity
 Proposing a rolling program. Hedge up to:

75%

of the City’s usage up to 12 months out

50%

of the City’s usage up to 24 months out

25% of the City’s usage up to 36 months out
12

75% Hedging Senario
50% Hedging Senario
25% Hedging Senerio

Total Consumption

May-29

Apr-29

Mar-29

Feb-29

Jan-29

Dec-28

Nov-28

Oct-28

Sep-28

Aug-28

Jul-28

Jun-28

May-28

Apr-28

Mar-28

Feb-28

Jan-28

Dec-27

Nov-27

Oct-27

Sep-27

Aug-27

Jul-27

Jun-27

May-27

Apr-27

Mar-27

Feb-27

Jan-27

Dec-26

Nov-26

Oct-26

Sep-26

Aug-26

Jul-26

Jun-26

Quantity (Dth)

Quantity - Illustration

30000

25000

20000

15000

10000

5000

0

13

Based on $/therm in City’s budget

Strike Price

Monthly, seasonal, yearly options to hit targets

Can stack multiple positions

14

Additional Information

Parameters provide
flexibility to take
advantage of
favorable market
opportunities

Can terminate
directive at any time
on a forward going
basis

15

Recommendation

 Approve “rolling” hedging directive
 Product – Futures Contracts and/or Call Options (and associated premium)
 Quantity – Up to 75% for year 1, 50% for year 2, and 25% for year 3
 Strike price – budgeted $/therm

16