Treasury Council
Treasury strategy and balance sheet management
- 1.
The Fed stayed restrictive on July 29. The FOMC held the target range at `3.50%-3.75%` by a `9-3` vote, and the dissents were hawkish, not dovish: three members preferred a `25 bp` hike. The short end still competes for cash. As of the July 31 H.15 release using July 30 data, effective fed funds was `3.63%`, 3-month Treasury bills were `3.69%`, the 2-year Treasury was `4.23%`, and the 10-year Treasury was `4.68%`.
- 2.
System liquidity is still healthy. The July 31 H.8 shows total commercial bank deposits at `19.4011T` for the week ended July 22, with `2.5373T` in large time deposits and `16.8638T` in other deposits. The July 30 H.4.1 shows reserve balances at `2.9846T`. This is still not a macro liquidity crisis. FUB's issue remains funding quality, operating-balance capture, and treasury execution.
- 3.
The best internal deposit datapoint in the four-week window is still tactical, not structural. Brian reported on July 7 that June deposits were up `$37.5M` versus a `$283M` forecast and NIM improved `13 bps` month over month (`4 bps` core). Good month. Not proof the mix problem is solved.
- 4.
The late-July treasury signals are more encouraging than the early-July view, but still incomplete. On July 30, Treasury reported NIB deposits to total deposits had moved out of red, treasury-management fee revenue growth was about `17%`, and deposit growth was about `13%`. At the same time, NPS remained red because survey response rates were too low to trust the signal.
- 5.
Karen's segmented treasury pack still appears to be missing from the accessible July 4-August 1 review set. That matters. Treasury Council still does not have a current monthly instrument for segment economics, large-balance runoff, fee-waiver trends, or correspondent banking status. The last hard First Fidelity / wire-economics reference still traces to March 9.
- âșJuly 7 Q2 halftime:
- âșdeposits up `$37.5M` in June versus a `$283M` forecast
- âșNIM up `13 bps` month over month, including `4 bps` core
- âșJuly 30 treasury scorecard:
- âșNIB deposits to total deposits moved out of red
- âștreasury-management fee revenue growth about `17%`
- âșdeposit growth about `13%`
- âșThese are useful signals, but they are not a segmented balance-sheet view.
- âșThe room still lacks a current read on:
- âșNIB by segment
- âștop relationship runoff risk
- âșpricing exceptions and fee waivers
- âșcost of funds by balance class
- âșabout `3,000` administrative hours per month for about `1,000` requests
- âșabout `$105,000` monthly salary cost
- âșcustomer and account data fragmented across `9` systems
- âșmanual re-keying through email, Salesforce, Word/legal forms, and support processing
- âșslower onboarding delays treasury activation
- âșfragmented servicing reduces operating-balance attachment
- âșerrors and rework erode customer confidence and fee capture
- âșFUB currently cannot receive instant payments, creating deposit-friction risk
- âșone July 22 discussion cited about `$6M` of outflow via alternative payment apps such as Cash App
- âșthe proposal to activate Jack Henry PayCenter for RTP and FedNow receive capability carried an estimated annual cost of about `$63K`
- âșthe same discussion framed the deposit-retention opportunity at about `$2.1M`
- âșby July 30, Treasury had approved implementation of instant-payments receive via RTP and FedNow for consumer and business customers
- âșNPS remains red
- âșonboarding survey response is only about `10%`
- âșsurveys often go to signers rather than trainees
- âșthe team wants broader service and post-onboarding measurement, not a single narrow onboarding survey
- âșThe NPS number itself is not fully trustworthy yet.
- âșThe underlying process diagnosis is still credible: onboarding, service flow, workflow fragmentation, and cross-sell activation all need work.
- âșFUB current wire volume: about `17K/month`
- âșFirst Fidelity incremental volume estimate: about `6K/month`
- âșincremental Fed wire cost at that volume: about `$0.30/wire`
- âșFinestra per-wire cost: about `$1.74/wire`, with Karen to verify contract detail
- âșrelationship framing for Ryan: `8-figure NIB + $5/wire`
- âșAny shift in Fed language between now and the September meeting. The July meeting did not soften policy posture.
- âșWhether August internal deposit and NIB data confirm July's improving color or reveal another tactical bounce.
- âșWhether treasury can convert the NIB-out-of-red improvement into a segmented management discipline instead of a single scorecard anecdote.
- âșWhether NPS/CSAT measurement gets fixed fast enough to become decision-useful.
- âșWhether instant-payments receive actually ships on the stated fast timeline.
- âșWhether Karen's pack appears before the next meeting. If not, that is a management signal in its own right.
- 1.Ask Karen for the current treasury pack and make it a standing pre-read requirement.
- 2.Ask Ryan and Brian for current month-to-date deposits, NIB, deposit cost, and NIM/NII so the room is not anchored on June plus partial July signals.
- 3.Treat treasury workflow simplification as a balance-sheet issue, not a side systems project.
- 4.Confirm RTP/FedNow receive implementation dates, owner, and success metric.
- 5.Force a dated answer on First Fidelity: active, stalled, or dead.