United Community Banks Sells Navitas to Wafra in $1.9bn Deal

United Community Banks (United) has agreed to sell its equipment finance business, Navitas Credit Corp, to investment firm Wafra in a $1.9 billion cash deal, marking one of the largest strategic portfolio reshuffles by a US regional bank this year.

The transaction, expected to close in Q3 2026, subject to customary conditions, includes Navitas and NLFC Reinsurance Corp.

United chairman and chief executive Lynn Harton told analysts that the sale would strengthen its capital position and allow it to concentrate on its core banking operations across the southeastern United States.

He added that United had capped Navitas at 10% of total loans and had already begun scaling back its growth before deciding on a sale.

The purchase price represents a 7% premium to the par value of Navitas' loan portfolio. United expects the deal to generate a one-off pre-tax gain of about $109 million and increase its common equity tier 1 capital ratio by 145 basis points.

"Navitas has distinguished itself in the equipment finance industry by growing successfully through multiple cycles while consistently serving its customers and delivering strong financial performance," said Edward Tsai, Head of Real Assets & Infrastructure at Wafra.

Navitas, based in Ponte Vedra, Florida, specialises in financing equipment purchases for small and mid-sized businesses. United acquired the business in 2018, but its contribution to earnings has been overshadowed by rising credit losses. The unit accounted for roughly half of the bank's net charge-offs in the 12 months to March 31, despite representing only around 10% of total loans.