PNC Buys $16.6B of Signature Bank’s PE Loans

PNC Bank, a member of The PNC Financial Services Group, Inc., acquired a portfolio of capital commitments facilities, largely to private equity sponsors, from Signature Bridge Bank, N.A. through an agreement with the Federal Deposit Insurance Corporation (FDIC) as receiver.

The acquired portfolio represents $16.6 billion in total commitments, including $9 billion of funded loans. PNC said the transaction will be funded with cash on hand and is expected to be immediately accretive to its earnings and will represent approximately 0.10 cents per share in the fourth quarter of 2023.

PNC purchased the commitments and loans without any funding, guarantees or loss-sharing agreements from the FDIC.

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.

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.