US-based bank holding company PNC Bank has acquired a portfolio of capital commitments facilities worth $16.6bn from Signature Bridge Bank in agreement with Federal Deposit Insurance Corporation (FDIC).
In March this year, FDIC created the Signature Bridge Bank to control the operations of Signature Bank, after it was closed.
The New York State Department of Financial Services closed the bank and appointed the FDIC as receiver, which assumed all deposits and loan portfolios of Signature Bridge Bank.
The acquired portfolio represents $16.6bn in total commitments, including $9bn of funded loans.
PNC Bank funded the transaction, which will not have a material impact on its total assets, capital ratios or tangible book value per share, using available cash on hand,
The commitments and loans have been purchased without any funding, guarantees or loss-sharing agreements from the FDIC, said the US bank holding company.
PNC Bank, in its statement, said: “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 and the acquired portfolio is highly complementary.
“In addition, the acquisition 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.”
PNC Bank, a part of the PNC Financial Services Group, is one of the largest diversified financial services institutions in the US.
The bank delivers retail and business banking services to its customers and communities, including a full range of lending products.
It also provides corporate banking, real estate finance, asset-based lending, wealth management and asset management services for corporations and government entities.
