GREENVILLE, S.C., Sept. 03, 2024 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NYSE: UCB) (“United”) announced today the August 30^th closing of the sale of substantially all of its manufactured housing loan portfolio, totaling $318.2 million, to 21^st Mortgage Corporation, a division of Clayton Homes. The business was part of the Reliant Bancorp, Inc. acquisition in January of 2022. The portfolio had been in runoff following United’s decision to cease originations in the third quarter of 2023.

“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. “21^st 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 2% of loans, the portfolio represented 11% of our YTD net charge offs and 18% of our non-performing assets.” Harton continued, “After the one-time loss on the sale of the portfolio, we do not expect any ongoing effect on earnings.”

Including the approximately $11.5 million release of its associated reserve, transaction costs, and other accounting influences, United estimates an $0.18 per share impact to third quarter results. The transaction is slightly accretive to regulatory capital ratios.

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 $27.1 billion in assets, 203 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power’s award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United was named by American Banker as one of the “Best Banks to Work For” for the seventh consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. Additional information about United can be found at ucbi.com.