Morning Commentary: Southern National Bancorp notes on tap; U.S. Bancorp preferreds up

By James McCandless

San Antonio, Aug. 19 – While top traders were gaining ground, the overall preferred market was seeing an early decline with the Wells Fargo Hybrid & Preferred Securities Financial index starting down by 0.11%.

The primary market saw Southern National Bancorp of Virginia, Inc. release plans to price a $40 million offering of $1,000-par fixed-to-floating rate subordinated notes due August 2030 (Kroll: BBB-).

Janney Montgomery Scott LLC and Piper Sandler & Co. are the bookrunners.

The coupon is fixed until 2025, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable after a change in law, a tier 2 capital event or if the company is required to register as an investment company at par.

Far and away the leader in the secondary market, U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferred stock was moving higher.

The preferreds (NYSE: USBPrH) were up 16 cents to $22.34 on volume of about 681,000 shares.

Elsewhere in the banking and finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds were also improving.

The preferreds (NYSE: WFCPrZ) were tacking on 3 cents to $24.97 with about 58,000 shares trading.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was joining the trend.

The preferreds (NYSE: COFPrI) were reaching up 9 cents to $25.23 on volume of about 37,000 shares.

Rural lender Federal Agricultural Mortgage Corp.’s new 5.25% series F non-cumulative perpetual preferred stock was relatively active but unchanged so far.

The preferreds, trading under the temporary symbol “AGMFP,” were holding level at $25.57 with about 44,000 shares trading.

Meanwhile, asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were under pressure.

The notes (NYSE: LMHB) were shedding 2 cents to $25.76 on volume of about 34,000 notes.

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