Investing.com -- PNC Financial (NYSE:PNC) has agreed to purchase a portfolio of loans worth $16.6 billion from Signature Bridge Bank in an agreement with the Federal Deposit Insurance Corp. as receiver.
The so-called capital commitments facilities are primarily comprised of fund subscription lines of credit to private equity groups to help them manage liquidity and bridge financing for investments, PNC said in a statement on Tuesday.
PNC, the eighth-largest U.S. lender by assets, called the acquisition "highly complementary," saying it will add to its products serving the private equity industry.
The bank noted that the transaction, which it will fund with cash on hand, will be "immediately accretive" to its earnings, representing around 10 cents per share in the fourth quarter of this year. Additional details on the deal and the portfolio will be included in PNC's third-quarter results on Oct. 13, it said.
In March, the FDIC shuttered Signature Bank after concerns around the collapse of Silicon Valley Bank led to a rush of deposit withdrawals by customers. The FDIC later moved all of Signature Bank's deposits and most of its assets to Signature Bridge Bank, which is operating under a board appointed by the financial watchdog.
Shares in PNC hovered around the flatline in early U.S. trading on Tuesday.