United Community Banks agrees to sell Navitas to Wafra for $1.9B
United Community Banks (NYSE:UCB) entered into a definitive agreement to sell its specialty equipment finance business, comprising Navitas Credit Corp. and NLFC Reinsurance Corp., to investment funds managed by private equity firm Wafra.
The all-cash transaction is valued at approximately $1.9 billion, representing a strategic decision by the regional lender to optimize its balance sheet and lower its overall credit risk profile.
The agreed-upon cash purchase price reflects a 7% premium to the par value of Navitas’ outstanding loan portfolio.
By divesting the segment, United expects to realize a one-time pre-tax earnings benefit of $109 million, driving an approximate 3% immediate accretion to its tangible book value per share.
Furthermore, the transaction will materially strengthen the bank’s regulatory capital position, adding an estimated 145 basis points to its Common Equity Tier 1 (CET1) capital ratio upon completion.
The divestiture allows the banking group to shed a highly cyclical credit segment.
While the equipment finance division accounts for 10% of United’s total loan portfolio, it generated roughly 50% of the institution's aggregate net charge-offs over the 12-month period ended March 31, 2026.
Stripping this volatility from the balance sheet aligns with management's objective to focus resources entirely on its core relationship-banking franchise across the Southeastern U.S.
The deal is targeted to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions.
Under the terms of the agreement, Navitas' existing executive leadership team and employee base are slated to transition with the operating business to Wafra-managed TopCo modules.
