We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PNC Financial (PNC) Buys $16.6B Loans of Signature Bridge Bank
Read MoreHide Full Article
The PNC Financial Services Group, Inc. (PNC - Free Report) , through an agreement with the Federal Deposit Insurance Corporation ("FDIC"), purchased a portfolio of capital commitment facilities from Signature Bridge Bank, N.A.
The FDIC closed Signature Bank in March amid the regional banking crisis and transferred all of the bank’s deposits and substantially all of its assets to Signature Bridge Bank.
Particularly, PNC has purchased a portfolio of $16.6 billion in total commitments. The portfolio being acquired primarily consists of credit lines to private equity firms. These credit lines help firms to manage liquidity and get financing for investments. Of this, more than half or $9 billion of the acquired portfolio was in funded loans.
PNC acquired these commitments and loans without agreements related to funding, guarantees or loss-sharing from the FDIC.
Given PNC’s exposure to the fund banking business, the acquired portfolio is highly complementary and, hence, is a strategic fit. In addition, the acquisition will leverage PNC's diversified suite of services to cater to the private equity industry.
The transaction will be funded with cash on hand. It is expected to be immediately accretive to the bank’s earnings by 10 cents per share in fourth-quarter 2023. Nonetheless, the transaction will have immaterial impacts on PNC's total assets, capital ratios and tangible book value per share.
Shares of PNC have declined 2.5% against the industry’s rise of 1% over the past six months.
PNC joins JPMorgan Chase (JPM - Free Report) , First Citizens BancShares (FCNCA - Free Report) and New York Community Bancorp (NYCB - Free Report) to absorb assets of the banks that failed this March.
JPM bought the bulk of First Republic’s $228 billion of assets (adding to its huge $3.7 trillion assets balance) and assumed deposits worth $92 billion by paying $10.6 billion.
Signature Bank and Silicon Valley Bank were seized by the FDIC and then sold to New York Community Bancorp and First Citizens, respectively.
NYCB, through its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bank, while not buying any digital asset banking, crypto-related assets or the fund banking business. FCNCA assumed Silicon Valley Bank’s assets worth $110 billion, deposits worth $56 billion and loans worth $72 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PNC Financial (PNC) Buys $16.6B Loans of Signature Bridge Bank
The PNC Financial Services Group, Inc. (PNC - Free Report) , through an agreement with the Federal Deposit Insurance Corporation ("FDIC"), purchased a portfolio of capital commitment facilities from Signature Bridge Bank, N.A.
The FDIC closed Signature Bank in March amid the regional banking crisis and transferred all of the bank’s deposits and substantially all of its assets to Signature Bridge Bank.
Particularly, PNC has purchased a portfolio of $16.6 billion in total commitments. The portfolio being acquired primarily consists of credit lines to private equity firms. These credit lines help firms to manage liquidity and get financing for investments. Of this, more than half or $9 billion of the acquired portfolio was in funded loans.
PNC acquired these commitments and loans without agreements related to funding, guarantees or loss-sharing from the FDIC.
Given PNC’s exposure to the fund banking business, the acquired portfolio is highly complementary and, hence, is a strategic fit. In addition, the acquisition will leverage PNC's diversified suite of services to cater to the private equity industry.
The transaction will be funded with cash on hand. It is expected to be immediately accretive to the bank’s earnings by 10 cents per share in fourth-quarter 2023. Nonetheless, the transaction will have immaterial impacts on PNC's total assets, capital ratios and tangible book value per share.
Shares of PNC have declined 2.5% against the industry’s rise of 1% over the past six months.
Image Source: Zacks Investment Research
PNC currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PNC joins JPMorgan Chase (JPM - Free Report) , First Citizens BancShares (FCNCA - Free Report) and New York Community Bancorp (NYCB - Free Report) to absorb assets of the banks that failed this March.
JPM bought the bulk of First Republic’s $228 billion of assets (adding to its huge $3.7 trillion assets balance) and assumed deposits worth $92 billion by paying $10.6 billion.
Signature Bank and Silicon Valley Bank were seized by the FDIC and then sold to New York Community Bancorp and First Citizens, respectively.
NYCB, through its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bank, while not buying any digital asset banking, crypto-related assets or the fund banking business. FCNCA assumed Silicon Valley Bank’s assets worth $110 billion, deposits worth $56 billion and loans worth $72 billion.