United Community Banks agrees to sell equipment finance unit to Wafra funds for $1.9 billion

United Community Banks, Inc. (NYSE: UCB) signed a definitive agreement on June 12, 2026, to sell its equipment finance business to funds managed by Wafra Inc. 9 billion in cash. The business consists of Navitas Credit Corp.

Collectively called Navitas. The buyer is Navitas TopCo LLC acting for the Wafra funds. The purchase price reflects a 7% premium to the par value of Navitas' loan portfolio. United expects the transaction to produce a one-time pre-tax earnings benefit of $109 million and 3% accretion to tangible book value per share.

The deal is also expected to generate 145 basis points of CET1 capital. The equipment finance business represents 10% of United's total loan portfolio as of the announcement. That same business accounted for approximately 50% of United's net charge-offs for the twelve months ended March 31, 2026.

9 billion will result in a pro forma loan-to-deposit ratio of 74%. 5% and target duration of less than two years. The company said it will evaluate a range of capital deployment alternatives after closing, which may include organic growth, balance sheet optimization, share repurchases, and small in-market acquisitions.

Said: "Over the past eight years, Navitas has been a valuable contributor to United, delivering strong growth and returns for our business. In fact, for the past several quarters, we have had to restrain Navitas' growth to remain within our self-imposed portfolio limits.

We have also expanded our core franchise since we acquired Navitas, which has resulted in better in-market relationship-based growth opportunities within the community bank franchise.