PNC Bank, based in Pittsburgh, acquired a portfolio of capital commitments facilities from Signature Bridge Bank through an agreement with the Federal Deposit Insurance Corporation (FDIC) as receiver.
The FDIC established Signature Bridge Bank, N.A., on March 12, 2023, after being appointed receiver of the former Signature Bank, New York 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, funded with cash on hand, is expected to be immediately accretive to PNC’s earnings, and will represent approximately 10 cents per share in the fourth quarter of 2023.
The facilities being acquired are primarily comprised of fund subscription lines to private equity sponsors to help them manage liquidity and bridge financing for investments. PNC has long participated in the capital commitments business, so the acquired portfolio is complementary. Further, it will build upon PNC’s diversified suite of offerings serving the private equity industry, including Harris Williams, Solebury, PNC Business Credit and Midland Loan Services.
The transaction will not have a material impact on PNC’s total assets, capital ratios or tangible book value per share.
The transaction closed Oct. 2. PNC purchased these commitments and loans without any funding, guarantees or loss-sharing agreements from the FDIC. More details will be provided on PNC’s third quarter earnings call on Oct. 13.