DivestmentJun 12, 2026, 07:31 AM
United Community Banks to Sell Navitas for $1.9B
AI Summary
United Community Banks, Inc. announced a definitive agreement to sell its equipment finance business, Navitas Credit Corp. and NLFC Reinsurance Corp., to funds managed by Wafra Inc. for $1.9 billion in cash. This strategic divestment aims to reinforce United's focus on its core Southeastern banking business, enhance liquidity, and strengthen capital. The transaction is expected to generate a $109 million pre-tax earnings benefit and 3% accretion to tangible book value per share, while significantly reducing the risk profile of its loan portfolio.
Key Highlights
- United Community Banks to sell its Navitas equipment finance business for $1.9 billion in cash.
- The sale reflects a 7% premium to the par value of Navitas' loan portfolio.
- Expected one-time pre-tax earnings benefit of $109 million.
- Anticipated 3% accretion to tangible book value per share.
- Expected to generate 145 basis points of CET1 capital.
- Navitas accounted for 10% of United's loan portfolio and 50% of net charge-offs.
- Pro forma loan to deposit ratio will be 74% post-transaction.
- Transaction expected to close in the third quarter of 2026.
Price Impact
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