Beal Bank

Beal Bank is an American bank, which was founded by Texas-based entrepreneur D. Andrew "Andy" Beal.[2] It includes two separately chartered banks, Beal Bank and Beal Bank USA. Each entity is insured by the Federal Deposit Insurance Corporation (FDIC).[3][4]

Beal Bank
TypePrivate
IndustryBanking
Founded1988 (1988)
FounderD. Andrew "Andy" Beal
Headquarters
Plano, Texas
Number of locations
17
Total assets$39.6 billion (2023[1])
Websitewww.bealbank.com

As wholesale banks, they do not offer consumer loans or checking accounts,[5] and generally purchase loans within the secondary market rather than originating them.[6] As of March 31, 2023, the banks had combined total assets of more than $39.6 billion and combined total capital of more than $3.7 billion.[7][8][1]

History

Beal Bank was founded in 1988 in Dallas, TX.[9] Throughout the 1990s, the company purchased undervalued real estate and savings and loan assets.

In 2000, the company purchased more than $1 billion of commercial loans from the Small Business Administration. The company moved its headquarters from Dallas to Plano after buying the former headquarters of the petroleum company, FINA Inc. and began increasing its staff.[10] Throughout its history, Beal Bank has purchased undervalued assets, including power company bonds during the California electricity crisis and debt backed by jetliners following September 11 attacks in 2001.[11] The company acquired the Torrance, California-based Southern Pacific Bank, its three branches and $834 million in deposits in 2003.[12] In 2004, it opened Beal Savings Bank, which later became Beal Bank USA, in Las Vegas, Nevada.

Between 2004-2007, the company slowed its asset acquisition and began to let its loans run off. During this time, assets shrank from $7.7 billion to $2.9 billion.[13][14] From 2008-2009, Beal Bank expanded, hiring analysts and evaluating mortgage bonds, debt and other assets being sold by financial institutions as a result of the financial crisis of 2007-2008. By 2009, the company had purchased nearly $5 billion in assets, including $1.8 billion in residential loans, a $465 million loan to the chemical company Lyondell and some of the assets of 15 failed banks around the U.S. As a result, total reported net income rose from $281 million in 2008 to $559 million in 2009, and its assets increased to $9.2 billion.[15] In 2009, Beal Bank acquired New South Federal Savings Bank in Alabama.[16] New South's online-only banking subsidiary, UmbrellaBank.com, continues to operate as a division of Beal Bank.[17]

In January 2010, Beal Bank acquired Charter Bank of Santa Fe after the bank began having problems with its commercial loans before its assets were transferred to Beal Bank.[18] Its branches were later sold to Washington Federal in June 2011.[19]

In 2015, Beal Bank through affiliates originated around $1.5 billion in loans with $3.3 billion in equity capital and a leverage ratio of nearly 50 percent.[20] In 2017, the company had $2.3 billion in equity capital.

Operations

Beal Bank
Beal Bank
TypeBank
Founded1988 (1988)
FounderD. Andrew "Andy" Beal
Headquarters
Plano, Texas
Number of locations
6
Total assets$7.6 billion (2023)[1]
Number of employees
142 (2022)[8]
Websitewww.bealbank.com

Beal Bank opened in 1988, with $3 million in capital operating from a single branch in Carrollton, Texas.[21][22] The bank initially bought assets from Resolution Trust Corporation, a government-owned company that liquidated real estate and savings-and-loan assets.[23] Throughout the late 1980s and 1990s, the bank purchased the assets from failing savings and loans banks, including the maximum number of mortgage assets allowed by law from a San Antonio bank in 1989.[24] By 1996, the bank was considered the most profitable bank in Texas,[25] and reported a net income of $44.8 million, revenue of $143.5 million and $1.2 billion in assets.[26][27]

As of March 31, 2023, Beal Bank reported capital in excess of $794 million and assets around $7.6 billion.[1] Beal Bank has 6 branches in 4 states and offers certificate of deposit accounts, money market accounts, statement savings accounts, and IRA CDs.[28][29]

Beal Bank USA
Beal Bank USA
TypeBank
Founded2004 (2004)
Headquarters
Las Vegas, Nevada
Number of locations
11
Total assets$32 billion (2023)[1]
Number of employees
85 (2022)[7]
Websitewww.bealbank.com/bbusa/Home

Beal Bank USA is headquartered in Las Vegas, and shares a common brand with Beal Bank. It was founded in 2004 as Beal Savings Bank,[30] and was renamed Beal Bank Nevada in 2007,[31] and Beal Bank USA in 2011.[32]

Beal Bank USA has 11 branches across 10 states. As of March 31, 2023, it reported capital in excess of $2.9 billion and assets in excess of $32 billion.[1]

Other affiliates

Through affiliated companies, both banks are active in commercial real estate acquisition as well as individual loan and loan portfolio acquisition. They also originate and fund loans and loan participations secured by real estate, energy, power, gas, manufacturing, timber, transportation and distribution, and other tangible assets.[29] Affiliated companies include: CSG Investments Inc. and CLG Hedge Fund, LLC. UmbrellaBank.com (a division of Beal Bank) and MyCDBank.com (a division of Beal Bank USA) are online banking affiliates.

References
  1. "Statement of Condition". Beal Bank. 31 March 2023.
  2. Anders, George. "Maverick Banker in Texas Chases Distressed Assets". The Wall Street Journal.
  3. "FDIC certification information for Beal Bank USA, FDIC Certificate No. 57833". Archived from the original on 2014-04-16. Retrieved 2013-03-10.
  4. "FDIC certificate information for Beal Bank, FDIC Certificate No. 32574". Archived from the original on 2013-01-19. Retrieved 2013-03-10.
  5. "Texas Billionaire Beal Seeks Failed Florida Bank".
  6. "The Banker Who Said No". Forbes.
  7. "FDIC: Institution Directory - Beal Bank USA".
  8. "FDIC: Institution Directory - Beal Bank".
  9. "Andy Beal Has Made His Mark in Business and Poker Worlds".
  10. "Beal Nabs Fina Campus".
  11. "Billionaire Banker Targeting Big Banks Over Mortgages". Forbes.
  12. "Regulators Close Southern Pacific". Los Angeles Times.
  13. "Texas Billionaire Andy Beal: Half The Country's Banks Could Go Bust". Business Insider.
  14. "Five Banks that Don't Suck". CNBC.
  15. "Billionaire Banker's Blowout Year". Forbes.
  16. "Beal Bank Assumes Deposits of New South Federal Savings Bank".
  17. Questions and answers from the FDIC about transition of former assets of New South Federal Savings Bank
  18. "Charter Bank Quietly Reopens Under New Ownership".
  19. "Ex-Bank Officials Sued for $8M".
  20. "The Billionaire Banker Ready to Bet on Oil". Forbes.
  21. "Beal Bank Owner Paved His Own Road to Becoming Dallas' Richest Man".
  22. "Love & Rockets".
  23. "Andrew Beal Business". The Washington Post.
  24. "Maverick Banker in Texas Chases Distressed Assets".
  25. "The Thrill is Gone: Beal Looks Beyond RTC Loans".
  26. "Beal Aerospace Ready for Launch".
  27. "The Beal Conjecture".
  28. "Company Overview of Beal Bank, SSB". Bloomberg News.
  29. "Dallas 500 Andrew Beal". Archived from the original on 2018-07-03. Retrieved 2018-07-03.
  30. "Beal Bank's L.V. Headquarters Are Tiny, But Its $2.2B in Deposits Pack a Punch".
  31. (2007). "Beal Savings Bank to Be Renamed Beal Bank Nevada." PR Newswire. January 2.
  32. "Company Overview of Beal Bank USA". Bloomberg.
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