PNC Bank acquired a portfolio of $16.6 billion in capital commitments facilities from Signature Bridge Bank through an agreement with the Federal Deposit Insurance Corporation as receiver. The transaction closed on Oct. 2.
The FDIC established Signature Bridge Bank on March 12 after being appointed receiver of the former Signature Bank by the New York State Department of Financial Services.
The acquired portfolio represents $16.6 billion in total commitments, including $9 billion of funded loans. The transaction, to be funded with cash on hand, is expected to be immediately accretive to PNC’s earnings and will represent approximately 10 cents per share in Q4/23. The transaction will not have a material impact to PNC’s total assets, capital ratios or tangible book value per share. PNC purchased these commitments and loans without any funding, guarantees or loss-sharing agreements from the FDIC. Additional details on the acquired portfolio and the financial impact of the transaction will be provided on PNC’s third quarter earnings call, which is scheduled for Oct. 13.
The facilities being acquired are primarily comprised of fund subscription lines to private equity sponsors to help manage liquidity and bridge financing for investments. In addition, the acquisition will build upon PNC’s suite of offerings serving the private equity industry, including Harris Williams, Solebury, PNC Business Credit and Midland Loan Services.
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