United Community Banks, Inc. (NYSE:UCB) stock edged higher on Friday after the regional lender announced a $1.9 billion cash deal to sell its equipment finance business.

United Community Banks To Sell Equipment Finance Business

United on Friday announced a definitive agreement to sell its equipment finance business, consisting of Navitas Credit Corp. and NLFC Reinsurance Corp., to funds managed by Wafra Inc. for $1.9 billion in cash.

The transaction strengthens United’s focus on its core relationship banking franchise across the Southeast while boosting liquidity and capital levels.

The sale price represents a 7% premium to the par value of Navitas’ loan portfolio. United expects the transaction to generate a one-time pre-tax earnings benefit of $109 million, increase tangible book value per share by about 3%, and add 145 basis points to its CET1 capital ratio.

Lower Risk Profile, Stronger Liquidity

United said the deal will significantly reduce risk within its loan portfolio. Navitas accounts for about 10% of total loans but represented roughly 50% of net charge-offs during the 12 months ended March 31, 2026.

Following the sale, United expects to receive $1.9 billion in net cash proceeds, resulting in a pro forma loan-to-deposit ratio of 74%. The bank plans to initially invest excess liquidity in lower-risk securities with a weighted average yield of 4% to 4.5% and a duration of less than two years.

United said it will evaluate several capital deployment options after the transaction closes, including organic growth, balance sheet optimization, share repurchases, and selective in-market acquisitions.

Navitas’ management team and employees are expected to remain with the business after the sale. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions.

Earnings And Analyst Outlook

The next major catalyst for the stock arrives with the July 22, 2026 (estimated) earnings report.

  • EPS Estimate: 73 cents (Up from 66 cents YoY)
  • Revenue Estimate: $280.70 million (Up from $260.24 million YoY)
  • Valuation: P/E of 12.6x (Indicates value opportunity relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $38.75. Recent analyst moves include:

  • Stephens & Co.: Overweight (Raises forecast to $40.00) (April 28)
  • DA Davidson: Buy (Maintains forecast to $39.00) (April 22)
  • Piper Sandler: Neutral (Raises forecast to $36.00) (April 22)

United Community Banks Price Action

UCB Stock Price Activity: United Community Banks shares were up 1.05% at $34.63 at the time of publication on Friday, according to Benzinga Pro data.

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