PNC Bank acquired $16.6 billion capital commitments facilities from Signature Bridge Bank in a cash deal Monday.
The agreement includes $9 billion of funded loans. The facilities in the deal are mostly made up of fund subscription lines to private-equity investors who use them to manage liquidity and bridge financing.
"PNC has long participated in the capital commitments business and the acquired portfolio is highly complementary," the bank said in a press release.
The purchase is expected to be immediately accretive to PNC’s earnings, the bank said, representing about 10 cents per share in the fourth quarter. Further details into the financial impact of the transaction will be provided on PNC’s earnings call Oct. 13.
New York’s Department of Financial Services closed Signature Bank in March “to protect depositors” and appointed the Federal Deposit Insurance Corp. as the bank’s receiver at that time.
The FDIC said the following month that Signature’s downfall fell squarely on the bank’s management.
Signature’s board and management “pursued rapid, unrestrained growth without developing and maintaining adequate risk management practices and controls appropriate for the size, complexity and risk profile of the institution,” according to an FDIC report.
New York Community Bank subsidiary Flagstar acquired a large segment of Signature for $2.7 billion. Since then, the FDIC has been looking to strike deals on Signature’s remaining pieces.
Those remaining pieces include roughly $33 billion portfolio of commercial real-estate loans that the FDIC is seeking a bid for by Nov. 1; and an $18.5 billion portfolio of 201 loans to PE firms, which was set to close Monday.
A PNC spokesperson confirmed that the $16.6 billion portfolio purchased by the bank is part of the $18.5 billion portfolio, but did not provide further comment. An FDIC spokesperson told Banking Dive the agency planned to post the complete sales results of that portfolio “shortly.”