United Community Banks, Inc. (NYSE: UCB) today 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., acting through Navitas TopCo LLC.
The sale of Navitas reinforces United’s focus on its core Southeastern relationship banking business while enhancing United’s liquidity and capital strength.
The sale features what the company calls attractive monetization of equipment finance business, with an estimated cash purchase price of $1.9 billion, reflecting a 7% premium to the par value of Navitas’ loan portfolio.
United expects the Transaction to result in a one-time pre-tax earnings benefit of $109 million, which is expected to result in 3% accretion to tangible book value per share. The Transaction is also expected to generate 145 basis points of CET1 capital.
The sale of Navitas will meaningfully reduce the risk profile of United’s loan portfolio. The equipment finance business represents 10% of United’s total loan portfolio, while accounting for approximately 50% of United’s net charge-offs for the last twelve months ended March 31, 2026.
Net cash proceeds of $1.9 billion will result in a unique liquidity position for United, with a pro forma loan to deposit ratio of 74%. In the short term, excess liquidity is expected to be reinvested in lower-risk securities with an aggregate weighted average yield between 4.0-4.5% and target duration of less than two years.
UCB shares gained 35 cents, or 1%, to $34.62.
