From The Motley Fool · The Motley Fool Team · · 40s
United Community Banks: 3 Key Takeaways for Long-Term Investors
United Community Banks cuts credit risk by exiting Navitas, boosts loan growth with veteran hires, and positions for higher interest rates.
In brief
United Community Banks cuts credit risk by exiting Navitas, boosts loan growth with veteran hires, and positions for higher interest rates. United Community Banks reduced credit risk by selling Navitas, increased loan growth through veteran hires, and is well positioned for higher interest rates. Originally reported…
Exiting Navitas Lowers Risk
United Community Banks sold its equipment finance subsidiary Navitas to reduce nonperforming loans and credit losses.
“We simplified the business and reduced credit risk by exiting Navitas.”
Veteran Hires Drive Loan Growth
New hires increased loan production to $170 million in Q3, contributing 40% of funded loan growth.
“Production from new hires within the last year increased to approximately $170 million in the third quarter.”
Floating Rates Position for Higher Rates
Half of loans and securities are floating rate, positioning the bank for higher interest rates.
“We are well positioned for a higher for longer rate environment as approximately half of our loans and securities are floating rate.”
In short
United Community Banks reduced credit risk by selling Navitas, increased loan growth through veteran hires, and is well positioned for higher interest rates.
