United Community Banks Sells Equipment Finance Business to Wafra

United Community Banks, Inc. announced on June 12, 2026, the execution of a definitive agreement to sell its equipment finance business, which includes Navitas Credit Corp. and NLFC Reinsurance Corp., to funds managed by Wafra Inc. The transaction is valued at $1.9 billion in cash.

The sale aims to reinforce United Community Banks' focus on its core relationship banking business in the Southeastern U.S., while simultaneously enhancing the bank's liquidity and capital strength. The equipment finance business constituted approximately 10% of United Community Banks' total loan portfolio, but accounted for about 50% of the bank's net charge-offs over the twelve months ending March 31, 2026. This divestiture is expected to significantly reduce the risk profile of United Community Banks' loan portfolio.

United Community Banks anticipates the transaction will result in a one-time pre-tax earnings benefit of $109 million. Furthermore, the deal is projected to add approximately 3% to the tangible book value per share and generate 145 basis points of additional Common Equity Tier 1 (CET1) capital. The net cash proceeds of $1.9 billion will provide United Community Banks with a substantial liquidity position, leading to a pro forma loan-to-deposit ratio of 74%.

In the short term, the excess liquidity is expected to be reinvested in lower-risk securities, targeting an aggregate weighted average yield between 4.0-4.5% and a duration of less than two years. The transaction is anticipated to close in the third quarter of 2026, subject to customary closing conditions.