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The portfolio included funded loans that were worth $9 billion. The facilities of Signature Bank that were acquired by PNC were made up of a fund subscription line to private equity sponsors that can aid them in managing liquidity and bridge financing for investments.
The bank said that the purchase was projected to not have any material effect on the totality of PNC’s assets, capital ratios, or tangible book value on a per-share basis. The acquisition of the commitments and loans were also made without funding, guarantees, or loss-sharing agreements from the Federal Deposit Insurance Corp. (FDIC).
What happened to Signature Bank?
The FDIC has been the appointed receiver of Signature Bank since March, following a decision by the New York State Department of Financial Services (DFS). The bank was seized by the DFS when it lost faith in its management and its depositors left.
A report by CNBC said that the sudden collapse of Silicon Valley Bank, causing the withdrawal of more than $10 billion in deposits, which was the third-largest bank failure in the history of the US, prompted the regulator take over.
The bank was then handed to the FDIC which eventually sold its deposits and some of its loans to a unit of New York Community Bancorp Inc.
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