PNC Bank buys $16.6 bln capital commitment portfolio from Signature Bridge Bank (updated)

Signature Bank

03/10/2023 14:49

(Adds details from statement and background throughout)
       Oct 3 (Reuters) - PNC Financial Services'  PNC.N 
banking unit said on Tuesday that it had bought a portfolio of
capital commitments from Signature Bridge Bank worth $16.6
billion in an agreement with the Federal Deposit Insurance Corp
as receiver.
    The portfolio comprises fund subscription credit lines
extended to private-equity firms to help manage liquidity and
bridge financing for investments and includes $9 billion of
funded loans.
         "PNC has long participated in the capital commitments
business and the acquired portfolio is highly complementary,"
the bank said in a statement.
  
        The popularity of the credit vehicles has soared over
the past decade among PE and private real-estate investment
firms.
  
         The transaction, to be funded with cash on hand, is
expected to immediately add to PNC's earnings, and will
represent about 10 cents per share in the fourth quarter of
2023, PNC Bank said.
  
         PNC Bank purchased these commitments and loans without
any funding, guarantees or loss-sharing agreements from the
FDIC, the company added.
  
        The FDIC closed Signature Bank in March amid an
intensifying regional banking crisis and transferred all of its
deposits and substantially all of its assets to Signature Bridge
Bank, a full-service financial institution that is operating
under a board appointed by the watchdog.
  
     
  

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Anil D'Silva)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))