United Community Banks Sells $2.6bln Securities to Reposition Balance Sheet

By Mintesinot Nigussie  |  September 9, 2026

United Community Banks has sold 2.6 billion US dollars of securities as part of a balance-sheet restructuring following the completion of its acquisition of Navitas Bancshares.

The Georgia-based banking group said the transaction is intended to reposition its securities portfolio, increase liquidity and improve future earnings potential. Proceeds from the sale will be redeployed into cash and short-duration securities, which the bank expects to generate an average yield of about 4.5 percent.

The securities sold had an average yield of 2.20 percent, a duration of about 5.5 years and an estimated average life of 6.5 years. United Community had previously reclassified 2.2 billion US dollars of securities from held-to-maturity to available-for-sale to facilitate the restructuring.

The transaction is expected to result in a pretax loss of about 300 million US dollars. This will be partly offset by an estimated 64 million US dollars pretax gain from the Navitas transaction, with the combined impact expected to result in a net loss for the third quarter.

Despite the quarterly loss, the bank expects to remain profitable for the first nine months of the year.

United Community said its Common Equity Tier 1 ratio is expected to be about 14.5 percent following the Navitas acquisition and above 13 percent on a pro forma basis, leaving the bank with capital capacity to support future growth.

The restructuring comes as United Community expands its revenue-generating operations. The bank said the number of revenue producers has increased by about 20 percent, while its acquisition of Peach State is expected to further strengthen its presence in key markets.

The bank also plans to return capital to shareholders. It has authorised 50 million US dollars in share repurchases and increased its existing buyback authorisation by another 100 million US dollars, extending the programme through December 31, 2027.

United Community said the balance-sheet repositioning is expected to reduce exposure to longer-duration securities while allowing the bank to deploy capital into assets with shorter maturities and higher yields.

Source: FSX Business News