United Community Banks, Inc., 21st Mortgage Corporation Close Sale of Manufactured Housing Loan Portfolio

United Community Banks, Inc. (NYSE: UCB) announced the Aug. 30 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.

Officials said the portfolio had been in decline following United’s decision to cease originations in the third quarter of 2023.

Clayton became part of Warren Buffett’s Berkshire Hathaway family of companies in 2003. United Community Banks is the financial holding company for Greenville, South Carolina-based United Community, a top 100 U.S. financial institution 

“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. “21st 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."

Harton added, “While only 2 percent of loans, the portfolio represented 11 percent of our YTD net charge offs and 18 percent of our non-performing assets. 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.

Officials said the transaction is slightly accretive to regulatory capital ratios.   

Stephens Inc. served as United’s exclusive financial advisor for the transaction.

Southern Financial Corp Announces $5.1M Private Placement

The Southern Financial Corporation, parent company of The Southern Bank, announced the completion of a private placement offering of shares of its common stock to accredited individual investors.

Officials said the private placement resulted in gross proceeds to the company of $5,062,500.

Southern Financial intends to use the proceeds from the private placement to support The Southern Bank's continued growth in its South Carolina and Georgia markets and for general corporate purposes, the officials said.

“We are immensely grateful for the exceptional support and confidence shown by our investors,” said Jamin M. Hujik, CEO and president of The Southern Financial Corporation. “This new capital will enhance our services and broaden our reach, ultimately benefiting our clients and shareholders.”

With over $318 million in total assets, the bank operates branches in Greenville, Spartanburg, and Aiken, South Carolina, and Gibson, Hephzibah, Sardis, and Waynesboro, Georgia.

Sonoco Announces Review of Strategic Alternatives for Thermoformed & Flexibles Packaging Business

Hartsville, South Carolina-based Sonoco Products Company (NYSE: SON), a global leader in sustainable packaging, said it has initiated a review of strategic alternatives for the company’s Thermoformed & Flexible Packaging business, a part of the company’s Consumer Packaging segment.

Officials said exploring alternatives for the TFP business is expected to accelerate Sonoco’s portfolio simplification strategy, improve pro forma leverage and further increase shareholder value.

Sonoco’s TFP is a market leading thermoformed and flexible packaging business serving a range of customers in food, retail and medical markets.

TFP provides a variety of packaging to value-added categories including snacks, condiments, health care, prepared meals, fresh products and coffee and pets. On a pro forma standalone basis, TFP had revenue of $1.3 billion in 2023.

“We continue our strategy of focusing on fewer bigger businesses and investing to deploy our differentiated operating model. We expect that this next step will accelerate our strategy and further drive improved results,” said Howard Coker, president and chief executive officer of Sonoco.

Coker added, “We are excited about the opportunities we have to invest in and improve our industrial paper products, rigid paper containers, and metal packaging businesses. These businesses have improved meaningfully since we initiated this strategy, and we believe we will achieve even greater returns with this more focused portfolio.”

Officials said that as a result of the expanded divestiture plans, Sonoco has modified its financing plans for its pending acquisition of Eviosys.

The company now intends to finance the Eviosys acquisition through a combination of prepayable debt, longer-term bond financing and/or cash on hand, the officials said.

With increased debt reduction from divestitures and cash from operations, Sonoco expects to further reduce net leverage from previous estimates within 24 months of the Eviosys acquisition.

As a result, Sonoco no longer anticipates issuing equity to fund the Eviosys acquisition, the officials said.

The strategic review process of TFP is underway and Sonoco expects to complete it in the fourth quarter of 2024.

With net sales of approximately $6.8 billion in 2023, Sonoco has approximately 22,000 employees working in more than 300 operations around the world, serving some of the world’s best-known brands. 

Charleston International Airport Sees 15 Percent Increase in Passengers Through TSA Checkpoint During Labor Day Holiday

Charleston International Airport (CHS) announced a significant 15 percent increase in passenger traffic passing through TSA checkpoints during the Labor Day holiday period this year.

The Labor Day weekend, a critical travel period known for its busy airport traffic, saw a notable uptick in passenger volume.

Officials said that from Aug. 30 to Sept. 2, 2024, CHS welcomed many travelers, underscoring both the resurgence of travel post-pandemic and the airport's role in connecting the Charleston region to national and international destinations.

"Seeing a 15 percent increase in passenger traffic during such a pivotal holiday period is incredibly encouraging," said Elliott Summey, CEO of Charleston International Airport.

Summey added, "This growth not only highlights Charleston International Airport's status as a preferred travel hub but also reflects our team's hard work and dedication in ensuring a smooth and efficient travel experience for all passengers."

Officials said the significant uptick in passenger numbers underscores the airport's strategic investments in infrastructure and service improvements, including expanded TSA lanes, a new 5,700-space parking garage, upgraded facilities, and enhanced customer support.

"We extend our heartfelt gratitude to our passengers for their continued support and patience," Summey continued. "Our team worked diligently to prepare for this busy period, and their efforts have paid off. We are committed to maintaining this high standard of service and ensuring that every traveler has a positive experience at Charleston International Airport."

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