United Community Banks (UCB) Investor update summary

Transaction overview

• Definitive agreement to sell equipment finance business (Navitas Credit Corp. and NLFC Reinsurance Corp.) to Wafra for $1.9 billion in cash, representing a 7.1% premium over receivables sold.

• Transaction expected to close in Q3 2026, subject to customary closing conditions and regulatory approvals.

• Sale will release $42 million in loan loss reserves and generate a one-time pre-tax earnings benefit of $109 million, with a post-tax impact of $81 million.

• Tangible book value per share expected to increase by $0.67, or about 3%, rising to $22.85 post-transaction.

• Navitas' executive team and employees will remain with the business post-sale.

Financial and capital impact

• CET1 capital ratio projected to rise by 145 basis points to 14.5% pro forma, with $1.9 billion incremental capital and liquidity.

• Pro forma loan-to-deposit ratio will be 74%, with excess liquidity to be reinvested in lower-risk securities yielding 4.0-4.5%.

• Near-term earnings expected to decline by about 9% due to lower yields from securities, but EPS projected to return to neutral or slightly accretive levels with reinvestment or buybacks.

• Margin expected to decline by 30 basis points initially, but recover as liquidity is redeployed.

• Deposit costs expected to remain flat in the near term, with potential for slight increases later in the year.

Strategic rationale and future initiatives

• Monetizes a non-core asset, reducing risk in the loan portfolio and allowing renewed focus on core relationship-based and commercial banking.

• Proceeds will be initially invested in securities, with plans to redeploy into organic loan growth, share repurchases, and small in-market M&A.

• Recent hiring of revenue producers increased by 18% since September 30th, supporting future loan growth.

• Peach State acquisition replaces about 25% of loans sold and fits the strategy of small, in-market M&A.

• Buybacks and other capital deployment options, including M&A, are under consideration.