United Community Banks completes balance sheet repositioning to cut interest rate risk

The repositioning is expected to result in an estimated pre-tax loss of about $300 million, partly offset by a $64 million pre-tax gain on Navitas.

The board executive committee also authorized a $100 million increase to the share repurchase program through Dec. 31, 2027, subject to regulatory approvals.

United Community Banks completed a balance sheet repositioning following the Sept. 1 Navitas sale that generated about $2 billion in proceeds.

The company reclassified $2.2 billion of held-to-maturity securities to available-for-sale, then sold about $2.6 billion of lower-yielding securities.

Proceeds were shifted into cash and short-duration securities yielding about 4.5%, cutting duration to about 2 years from about 5.5 years.