United Community Banks, Inc. and 21st Mortgage Corporation Close Sale of Manufactured Housing Loan Portfolio
United Community Banks, Inc. (NYSE: UCB) has closed the sale of its manufactured housing loan portfolio, valued at $318.2 million, to 21st Mortgage This portfolio, acquired from Reliant Bancorp in 2022, had been in runoff since Q3 2023. The sale is expected to have an $0.18 per share impact on third quarter results but is slightly accretive to regulatory capital ratios. While representing only 2% of loans, the portfolio accounted for 11% of YTD net charge-offs and 18% of non-performing assets. United's CEO, Lynn Harton, stated that this move reduces the bank's risk profile and removes a management distraction.
United Community Banks, Inc. (NYSE: UCB) ha chiuso la vendita del suo portafoglio di prestiti per abitazioni prefabbricate, del valore di 318,2 milioni di dollari, a 21st Mortgage. Questo portafoglio, acquisito da Reliant Bancorp nel 2022, era in fase di dismissione dall'inizio del terzo trimestre 2023. Si prevede che la vendita avrà un impatto di $0,18 per azione sui risultati del terzo trimestre, ma sia leggermente accrescitivo per i rapporti di capitale regolamentare. Pur rappresentando solo il 2% dei prestiti, il portafoglio ha contribuito all'11% delle svalutazioni nette dall'inizio dell'anno e al 18% degli attivi non performanti. Il CEO di United, Lynn Harton, ha dichiarato che questa mossa riduce il profilo di rischio della banca e rimuove una distrazione gestionale.
United Community Banks, Inc. (NYSE: UCB) ha cerrado la venta de su cartera de préstamos para viviendas fabricadas, valorada en 318.2 millones de dólares, a 21st Mortgage. Esta cartera, adquirida de Reliant Bancorp en 2022, había estado en fase de disminución desde el tercer trimestre de 2023. Se espera que la venta tenga un impacto de $0.18 por acción en los resultados del tercer trimestre, pero es ligeramente accretiva para los índices de capital regulatorio. Aunque representa solo el 2% de los préstamos, la cartera representó el 11% de las bajas netas acumuladas en el año y el 18% de los activos no rentables. El CEO de United, Lynn Harton, afirmó que este movimiento reduce el perfil de riesgo del banco y elimina una distracción administrativa.
United Community Banks, Inc. (NYSE: UCB)는 제조 주택 대출 포트폴리오의 판매를 완료했습니다, 그 가치는 3억 1,820만 달러입니다. 이 포트폴리오는 2022년 Reliant Bancorp로부터 인수되었으며, 2023년 3분기부터 단계적으로 축소되고 있었습니다. 이번 판매는 3분기 결과에 대해 주당 $0.18의 영향이 있을 것으로 예상됩니다, 그러나 규제 자본 비율에는 약간의 긍정적인 영향을 미칠 것입니다. 대출의 2%에 불과하지만, 이 포트폴리오는 연초부터의 순손실의 11%와 부실자산의 18%를 차지했습니다. United의 CEO인 Lynn Harton은 이번 조치가 은행의 위험 프로필을 줄이고 관리의 방해 요소를 제거한다고 언급했습니다.
United Community Banks, Inc. (NYSE: UCB) a achevé la vente de son portefeuille de prêts pour logements manufacturés, d'une valeur de 318,2 millions de dollars, à 21st Mortgage. Ce portefeuille, acquis auprès de Reliant Bancorp en 2022, était en phase de liquidation depuis le troisième trimestre 2023. La vente devrait avoir un impact de 0,18 $ par action sur les résultats du troisième trimestre, mais est légèrement accretive pour les ratios de capital réglementaire. Bien qu'il ne représente que 2 % des prêts, le portefeuille a compté pour 11 % des créances irrécouvrables depuis le début de l'année et 18 % des actifs non performants. Le PDG de United, Lynn Harton, a déclaré que cette décision réduit le profil de risque de la banque et élimine une distraction pour la direction.
United Community Banks, Inc. (NYSE: UCB) hat den Verkauf seines Portfolios an Finanzierungen für Fertighäuser, im Wert von 318,2 Millionen US-Dollar, an 21st Mortgage abgeschlossen. Dieses Portfolio, das 2022 von Reliant Bancorp erworben wurde, befand sich seit dem dritten Quartal 2023 im Rückgang. Der Verkauf wird voraussichtlich einen Einfluss von 0,18 USD pro Aktie auf die Ergebnisse des dritten Quartals haben, ist jedoch für die regulatorischen Kapitalquoten leicht positiv. Obwohl es nur 2% der Kredite ausmacht, verursachte das Portfolio 11% der Nettobausschreibungen seit Jahresbeginn und 18% der notleidenden Vermögenswerte. Der CEO von United, Lynn Harton, erklärte, dass dieser Schritt das Risikoprofil der Bank reduziert und eine Ablenkung im Management entfernt.
- Sale of $318.2 million manufactured housing loan portfolio, reducing risk profile
- Slightly accretive to regulatory capital ratios
- Removal of a management distraction
- Exit from a business segment with higher charge-offs and non-performing assets
- $0.18 per share negative impact on third quarter results
- One-time loss on the sale of the portfolio
Insights
The sale of United Community Banks' manufactured housing loan portfolio is a strategic move with mixed financial implications. While it reduces the bank's risk profile and eliminates a management distraction, it comes at a cost of
The
This transaction reflects a broader trend in the banking sector of portfolio optimization and risk management. United's decision to divest its manufactured housing loan portfolio to a specialized lender like 21st Mortgage demonstrates a focus on core competencies and streamlined operations. This move could potentially improve investor perception of United's risk profile and management strategy.
The market's reaction will likely depend on how effectively United redeploys the capital from this sale. Investors should watch for any signals of the bank's future growth strategy or potential acquisitions. The slight accretion to regulatory capital ratios may provide United with more flexibility in capital allocation decisions, potentially benefiting shareholders in the long run.
GREENVILLE, S.C., Sept. 03, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (“United”) announced today the August 30th closing of the sale of substantially all of its manufactured housing loan portfolio, totaling
“Rather than continue to slowly liquidate the portfolio through normal collections, we took this opportunity to accelerate our exit from this business,” said Lynn Harton, Chairman and CEO. “21st Mortgage Corporation is the premier lender in this area with great capability to service the customers. In addition to removing a management distraction, the sale also reduces our risk profile slightly. While only
Including the approximately
Stephens Inc. served as United’s exclusive financial advisor for the transaction.
About United Community Banks, Inc.
United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management and mortgage services. As of June 30, 2024, United Community Banks, Inc. had
CAUTIONARY STATEMENT
This Press Release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial conditions to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to general competitive, economic, political, regulatory and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this Press Release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward[1]Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2023 and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”). Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United. United qualifies all forward-looking statements by these cautionary statements.
For more information:
Jefferson Harralson
Chief Financial Officer
(864) 240-6208
Jefferson_Harralson@ucbi.com
FAQ
What is the value of the manufactured housing loan portfolio sold by United Community Banks (UCB)?
How will the sale of the loan portfolio affect UCB's third quarter results in 2024?
What percentage of UCB's loans and non-performing assets did the sold portfolio represent?
When did United Community Banks (UCB) cease originations in the manufactured housing loan business?
