United Community Banks, Inc. (UCB), a bank holding company, Friday announced that it has agreed to sell its equipment finance business, consisting of Navitas Credit Corp. and NLFC Reinsurance Corp for $1.9 billion in cash.
Navitas Credit Corp. and NLFC Reinsurance Corp. collectively called Navitas will be sold to funds managed by Wafra Inc. acting through Navitas TopCo LLC.
With this sale, the bank intends to focus on its core Southeastern relationship banking business while enhancing United's liquidity and capital strength.
As per the bank holding company, the sale of Navitas reflects a 9 percent premium to the par value of Navitas loan portfolio and will result in a one-time pre-tax earnings benefit of $109 million which in turn indicates a 3 percent accretion to tangible book value per share.
This sale is also expected to reduce the risk profile of United's loan portfolio as the equipment finance business represents 10 percent of the total portfolio while accounting for approximately 50 percent of United's net charge-offs for the last twelve months ending March 31.
The transaction is expected to close in the third quarter of 2026.
In pre-market activity, UCB shares were trading at $35, up 2.13% on the New York Stock Exchange.
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