United Community Banks Repositions $2.6 Billion Securities Portfolio After Navitas Sale
MT Newswires Live
Sep 08
United Community Banks (UCB) said Tuesday that it completed a strategic balance sheet repositioning after the Sept. 1 sale of Navitas generated about $2 billion in proceeds.
The bank sold about $2.6 billion of lower-yielding securities and is redeploying proceeds into cash and short-duration securities yielding about 4.5%, it said.
United said it expects an estimated $300 million pretax loss, net of a partially offsetting $64 million pretax gain from the Navitas sale, from the repositioning, resulting in a Q3 net loss, while its CET1 ratio is expected to remain above 13%.
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