United Community Banks, 21st Mortgage close sale of housing loan portfolio

United Community Banks announced the August 30th closing of the sale of substantially all of its manufactured housing loan portfolio, totaling $318.2 million, to 21st 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. 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.

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