DealsJun 12, 2026, 07:41 AM
United Community Banks to Sell Equipment Finance Business for $1.9B
AI Summary
United Community Banks, Inc. announced the execution of a definitive agreement to sell its equipment finance business, consisting of Navitas Credit Corp. and NLFC Reinsurance Corp., to funds managed by Wafra Inc. for $1.9 billion in cash. This strategic divestment aims to enhance United's liquidity and capital strength by focusing on its core Southeastern relationship banking business. The transaction is expected to yield a one-time pre-tax earnings benefit of $109 million and significantly reduce the risk profile of United's loan portfolio. The sale is anticipated to close in the third quarter of 2026.
Key Highlights
- United Community Banks Inc. to sell its equipment finance business (Navitas) for $1.9 billion cash.
- Transaction expected to result in a one-time pre-tax earnings benefit of $109 million.
- Sale is expected to generate 145 basis points of CET1 capital.
- The equipment finance business represents 10% of United's total loan portfolio and 50% of its net charge-offs.
- Net cash proceeds of $1.9 billion will result in a pro forma loan to deposit ratio of 74%.
- Navitas' executive leadership team and employees are expected to remain with the business.
- Transaction is expected to close in the third quarter of 2026.
Price Impact
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