PNC Acquires $16.6 Billion Loan Portfolio from Signature Bridge Bank

PNC Financial Acquires $16.6 Billion Loan Portfolio from Signature Bridge Bank

PNC Financial has announced an agreement to acquire a loan portfolio valued at $16.6 billion from Signature Bridge Bank, facilitated by the Federal Deposit Insurance Corp. as the receiver.

The portfolio primarily consists of capital commitment facilities, which are fund subscription lines of credit designed to assist private equity firms in managing liquidity and providing bridge financing for their investments. In a statement on Tuesday, PNC emphasized that this acquisition is "highly complementary," enhancing its offerings within the private equity sector.

The bank stated that the deal, which will be financed using its available cash, is expected to provide an immediate boost to its earnings, contributing approximately 10 cents per share in the fourth quarter of this year. Detailed information about the transaction and the portfolio will be shared in PNC’s upcoming third-quarter results, set for release on October 13.

Earlier this year, the FDIC closed Signature Bank amid concerns following the collapse of Silicon Valley Bank, which led to a wave of customer withdrawals. Subsequently, the FDIC transferred all deposits and most assets from Signature Bank to Signature Bridge Bank, which operates under a board appointed by the regulatory agency.

In early U.S. trading on Tuesday, PNC’s shares showed little movement.