PNC Buys Former Signature Bank Private Equity Loan Book

PNC Bank has acquired a portfolio of Signature Bank’s loans and financing facilities for private equity funds from the Federal Deposit Insurance Corporation (FDIC).

The loan book is worth approximately $16.6 billion, according to a statement from the Pennsylvania-headquartered bank. This includes $9 billion in funded loans.

The bank did not disclose the price paid for the loan book, but said it was paid for in cash. It purchased the loans outright and has not entered into any risk- or loss-sharing arrangements with the FDIC.

“PNC has long participated in the capital commitments business and the acquired portfolio is highly complementary,” the bank said in a statement. “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.”

The portfolio was previously run by Signature Bank before its collapse in March. It then passed to Signature Bridge Bank, an entity set up by the FDIC to take on the bank’s assets and liabilities.

New York Community Bancorp acquired the bulk of Signature Bank’s business a few days after the collapse. Approximately $60 billion worth of loans remained with the bridge bank and FDIC.

In June, Customers Bank purchased a $631 million loan book linked to venture capital funds from the FDIC, which is understood to have been part of the Signature Bank business.

Signature Bank was closed down by New York State regulators in March as the bank was hit by a wave of withdrawals from customers spooked by its involvement in the crypto-asset industry.

The intervention came after Signature Bank had seen its share price fall substantially due to its exposure to crypto-related companies, despite repeated attempts by the bank to reassure investors and stakeholders of its ongoing strength.

The collapse coincided with that of Silicon Valley Bank, while First Republic Bank fell just a few weeks later.