Marty Fridson, editor of Forbes/Fridson Income Securities Investor is a leading expert in income investing, including more complex securities such as these two preferred stocks issued by leading regional banks.

Huntington Bancshares (HBAN) is a regional bank holding company with approximately $114 billion in total assets. HBAN oper- ates across Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia.

The company offers commercial and consumer banking services, mortgage banking, equipment leasing, treasury management, wealth management, and investment management services.

We are recommending the Huntington Bancshares 4.50% Fixed Rate, Series H Non-Cumulative Perpetual Par $25.00 (HBANP). This preferred is callable on 04/15/26, or any dividend payment date thereafter, at par plus any declared and unpaid dividends.

HBAN reported 2Q 2021 adjusted net income of $399.0 million or $0.35 per share, edging out analysts’ $0.32 estimates. Adjusted net income was up three-fold, as the recent quarter saw loan loss provisions decline by $116 million from a year earlier.

HBAN entered 2021 with solid capital and credit quality metrics, strong deposit growth, and improving loan demand, The company recently closed on its acquisition of TCF Financial Corp., resulting in one-time charges in the second quarter.

This issue is suitable for medium-risk taxable portfolios. Dividends are qualified and taxed at the 15%-20% rate. Buy at or below $26.00 for a 4.32% annualized yield and a 3.56% yield to call.

Signature Bank (SBNY) is a full-service commercial bank based in New York City, with more than $60 billion in total assets. The bank operates private client offices, primarily throughout the New York metropolitan area, in addition to offices in California and North Carolina.

SBNY also has a specialty finance subsidiary, Signature Financial LLC, providing equipment finance and leasing. The bank’s focus is serving privately owned businesses, their owners, and senior employees.

The bank offers a wide range of business and personal banking services, as well as investment, brokerage, wealth management, and insurance.

In 2Q 2021 SBNY reported record quarterly net income of $214.5 million or $3.57 per share, easily beating analysts’ $3.13 estimates. Bottom-line results jumped 83.0% from a year earlier on sharply lower loan loss provisions.

Strong net interest income growth was tempered by continued net interest margin compression. Non-interest income almost doubled from a year earlier, reflecting strong growth across all fee-based revenue components. Credit quality measures remain sound.

We are recommending the Signature Bank; 5.00% Fixed Rate Series A, Non-Cumulative Perpetual Par $25.00 (SBNYP). This preferred stock investment is suitable for medium-risk taxable portfolios. Dividends are taxed at the 15%-20% rate. Buy at or below $26.65, which represents a 4.69% current yield and a 3.35% yield to call.

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