U.S. Congressman Bets on Bank Preferred Shares: What Exchange Transaction Occurred Two Days After the Merger?

On March 17, Republican Representative Neal Dunn (R–FL-2, a urologist) disclosed in his STOCK Act report that on February 2 he executed transactions totaling between $1,001 and $15,000 in two preferred‐stock issues: Cadence Bank 5.50% Series A Preferred and Huntington Bancshares 5.50% Series L Preferred (trading as HBANZ). The filings classify these as Type E transactions, reflecting a share‐exchange following Huntington’s February 1 acquisition of Cadence, under which Cadence’s Series A Preferred automatically converted into Huntington’s new Series L Preferred.

Cadence Bank, a midsize regional bank headquartered in the U.S. South and Texas, saw its Series A Preferred trading in a narrow range around $20.70—below its $25 par value—offering a 5.50% coupon and a reputation for dividend stability. Huntington Bancshares, a mid-to-large regional bank with over $200 billion in assets, earned favorable net-income and capital‐ratio reviews for 2025 and closed its acquisition of Cadence on February 1, bolstering its loan and deposit base. After conversion, each Cadence Series A Preferred share became one share of Huntington’s 5.50% Series L Preferred, further subdivided into 1/1,000-share American Depositary Shares under the ticker HBANZ. As of mid-March, HBANZ traded around $21.30 (52-week range: $20.71–$22.23), slightly below February levels but maintaining a stable box range that reflects ongoing rate expectations and dividend appeal.

Dunn, a member of the Republican “Doctor Caucus,” sits on the House Energy and Commerce Committee and serves as vice‐chair of its Health Subcommittee, placing him at the center of federal health and regulatory policymaking. He was also the founding board chair of Florida’s Summit Bank and has repeatedly reported purchases of regional‐bank preferred stocks—including Cadence’s—which has led observers to note his significant personal interest in financial‐sector capital instruments. Even if the reported exchanges were purely merger‐driven technical adjustments rather than active buy or sell decisions, his ownership of bank preferred shares directly connects his personal finances to legislation on consumer finance, data protection, and health‐care financing—areas overseen by his committee that materially affect regional banks’ profitability and capital costs.

Moreover, Dunn announced on January 13 that he will not seek re-election in 2026, entering a lame-duck period during which he continues to adjust his individual financial holdings. That activity has drawn scrutiny both inside and outside Congress at a time when bipartisan proposals to ban members and their families from trading individual stocks are gaining traction in both the House and Senate. Against this backdrop, even a technical merger‐exchange disclosure could intensify criticism over why a key policymaker with deep ties to banking still holds individual financial instruments.