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{{short description|American bank}}
{{infobox company
{{infobox company
|name= Beal Bank
| name = Beal Financial Corporation
| logo = Beal_Bank_2023_logo.png
| type = Private
| type = [[Privately held company|Private]]
| foundation = {{Start date|1988}}
| industry = [[Bank]]
| founder = [[Andrew Beal|D. Andrew "Andy" Beal]]
| foundation = {{Start date and age|1988|03|10}}
| homepage = {{URL|https://www.bealbank.com/}}
| location_city = [[Plano, Texas]]
| founder = [[Andrew Beal]]
| location_city = [[Plano, Texas]]
|logo=Beak Bank Logo.gif
| owner = [[Andrew Beal]]
| locations = 37
| homepage = {{URL|https://www.bealbank.com/}}
| industry = [[Bank|Banking]]
| footnotes = <ref name=bealbankfdic>{{Cite web | url=https://banks.data.fdic.gov/bankfind-suite/bankfind/details/32574 | title=Beal Bank | work=[[Federal Deposit Insurance Corporation]]}}</ref><ref name=bealbankusafdic>{{Cite web | url=https://banks.data.fdic.gov/bankfind-suite/bankfind/details/57833 | title=Beal Bank USA | work=[[Federal Deposit Insurance Corporation]]}}</ref>
| assets = $7.7 billion
{{Infobox company
| assets_year = 2017<ref name=cdr/>
| name = Beal Bank
| locations = 6
| assets = $4.843 billion (2024)
| footnotes = <ref>{{Cite web | url=https://cdr.ffiec.gov/public/ManageFacsimiles.aspx# | title=View -- Executive Summary Report | publisher=[[Federal Financial Institutions Examination Council]]}}</ref>
}}
{{Infobox company
| name = Beal Bank USA
| type = [[Bank]]
| foundation = {{Start date|2004|08|02}}
| location_city = [[Las Vegas, Nevada]]
| locations = 11
| assets = $18.030 billion (2024)
| footnotes = <ref>{{Cite web | url=https://cdr.ffiec.gov/public/ManageFacsimiles.aspx# | title=View -- Executive Summary Report | publisher=[[Federal Financial Institutions Examination Council]]}}</ref>
}}
}}
}}


'''Beal Financial Corporation''' is a [[bank holding company]] based in [[Plano, Texas]] that operates two federally chartered banks: Beal Bank, with 6 branches,<ref name=bealbankfdic/> and Beal Bank USA, headquartered in Las Vegas, Nevada, with 10 branches and a [[direct bank]].<ref name=bealbankusafdic/> It is on the [[list of largest banks in the United States]]. It was founded by and is entirely owned by [[billionaire]] [[Andrew Beal]] and specializes in acquiring [[distressed securities]] at discounted values. It acquires risky loans, but keeps a much higher equity buffer than other banks.<ref name=deposits/><ref>{{cite news | url=https://www.forbes.com/sites/nathanvardi/2015/04/15/the-billionaire-banker-ready-to-bet-on-oil/ | title=The Billionaire Banker Ready to Bet on Oil | first=Nathan | last=Vardi | work=[[Forbes]] | date=April 15, 2015 | url-access=limited}}</ref>
'''Beal Bank''' is an American bank, which was founded by Texas-based entrepreneur [[Andrew Beal|D. Andrew "Andy" Beal]].<ref>{{cite web|url=https://www.wsj.com/articles/SB110556884311724524|first=George|last=Anders|publisher=The Wall Street Journal|title=Maverick Banker in Texas Chases Distressed Assets}}</ref> It includes two separately chartered banks, Beal Bank and Beal Bank USA. Each entity is insured by the Federal Deposit Insurance Corporation (FDIC).<ref>[http://www2.fdic.gov/idasp/confirmation_outside.asp?inCert1=57833 FDIC certification information for Beal Bank USA, FDIC Certificate No. 57833]</ref><ref name=bbfdic>[http://www2.fdic.gov/idasp/externalConfirmation.asp?inCert1=32574 FDIC certificate information for Beal Bank, FDIC Certificate No. 32574]</ref>

As [[Wholesale banking|wholesale banks]], they do not offer [[Loans|consumer loans]] or [[Transaction account|checking accounts]],<ref>{{citeweb|url=https://www.bizjournals.com/southflorida/stories/2009/11/09/daily61.html|title=Texas Billionaire Beal Seeks Failed Florida Bank}}</ref> and generally purchase loans within the secondary market rather than originating them.<ref>{{citeweb|url=https://www.forbes.com/2009/04/03/banking-andy-beal-business-wall-street-beal.html#7dcc09e51a4d|title=The Banker Who Said No}}</ref> As of March 31, 2018, the banks had combined total assets of more than $7.7 billion and combined total capital of more than $2.7 billion.<ref name=cdr>[https://cdr.ffiec.gov/public/ManageFacsimiles.aspx?ReportType=283 Online searchable Uniform Banking Performance Reports from the FFIEC]</ref>


==History==
==History==
Beal Bank was founded on March 10, 1988 in Dallas, TX by [[Andrew Beal]].<ref name=bealbankfdic/><ref>{{cite news | url=https://www.bizjournals.com/southflorida/stories/2009/11/09/daily61.html | title=Texas Billionaire Beal Seeks Failed Florida Bank | first=Brian | last=Bandell | work=[[American City Business Journals]] | date=November 9, 2009 | url-access=subscription}}</ref><ref name=maverick>{{cite news | url=https://www.wsj.com/articles/SB110556884311724524 | title=Maverick Banker in Texas Chases Distressed Assets | first=George | last=Anders | work=[[The Wall Street Journal]] | date=January 13, 2005 | url-access=subscription}}</ref> It began with $3 million in capital and a single branch in [[Carrollton, Texas]].<ref>{{cite news | url=https://www.dallasnews.com/business/2010/02/21/beal-bank-owner-paved-his-own-road-to-becoming-dallas-richest-man/ | title=Beal Bank Owner Paved His Own Road to Becoming Dallas' Richest Man | work=[[The Dallas Morning News]] | date=February 21, 2010}}</ref><ref>{{cite news | url=https://www.dallasobserver.com/news/love-and-rockets-6392592 | title=Love & Rockets | first=Joe | last=Pappalardo | work=[[Dallas Observer]] | date=March 1, 2001}}</ref> During the [[savings and loan crisis]], the bank purchased assets and real estate from failing banks and the [[Resolution Trust Corporation]], a government-owned company that liquidated real estate and savings-and-loan assets.<ref name=deposits>{{cite news | url=https://www.washingtonpost.com/business/2011/07/03/gIQA9RhE6H_story.html |title=His hedge against risk: Bank deposits | first=Anthony | last=Effinger | newspaper=[[The Washington Post]] | date=July 9, 2011 | url-access=subscription}}</ref><ref name=maverick/> By 1996, the bank was the most profitable bank in Texas.<ref>{{cite news | url=https://www.bizjournals.com/dallas/stories/1996/07/15/story4.html | title=The Thrill is Gone: Beal Looks Beyond RTC Loans | first=David | last=Welch | work=[[American City Business Journals]] | date=July 15, 1996 | url-access=subscription}}</ref><ref>{{cite news | url=https://www.bizjournals.com/dallas/stories/1998/03/16/story1.html | title=Beal Aerospace Ready for Launch | first=Jeff | last=Bounds | work=[[American City Business Journals]] | date=March 16, 1998 | url-access=subscription}}</ref><ref>{{cite news | url=https://www.dmagazine.com/publications/d-magazine/2000/february/the-beal-conjecture/ | title=The Beal Conjecture | first=Melinda | last=RICE | work=[[D Magazine]] | date=February 1, 2000}}</ref>
Beal Bank was founded in 1988 in Dallas, TX.<ref>{{citeweb|url=https://www.gamingtoday.com/casino_games/article/31334-Andy_Beal_has_made_his_mark_in_business_and_poker_worlds|title=Andy Beal Has Made His Mark in Business and Poker Worlds}}</ref> Throughout the 1990s, the company purchased undervalued real estate and savings and loan assets.


In 2000, the company acquired $1 billion of face value in commercial loans from the [[Small Business Administration]] at a discount.<ref name=maverick/>
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, Texas|Plano]] after buying the former headquarters of the petroleum company, [[Petrofina|FINA Inc.]] and began increasing its staff.<ref>{{citeweb|url=https://www.bizjournals.com/dallas/stories/2000/09/04/story1.html|title=Beal Nabs Fina Campus}}</ref> 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.<ref>{{citeweb|url=https://www.forbes.com/sites/nathanvardi/2013/01/23/billionaire-banker-targeting-big-banks-over-mortgages/#7b9c690f173b|title=Billionaire Banker Targeting Big Banks Over Mortgages}}</ref> The company acquired the Torrance, California-based Southern Pacific Bank, its three branches and $834 million in deposits in 2003.<ref>{{citeweb|url=http://articles.latimes.com/2003/feb/08/business/fi-rup8.2|title=Regulators Close Southern Pacific}}</ref> In 2004, it opened Beal Savings Bank, which later became Beal Bank USA, in Las Vegas, Nevada.


After the [[September 11 attacks]], the company invested in distressed securities of airline companies.<ref name=maverick/><ref>{{cite news | url=https://www.forbes.com/sites/nathanvardi/2013/01/23/billionaire-banker-targeting-big-banks-over-mortgages/ | title=Billionaire Banker Targeting Big Banks Over Mortgages | first=Nathan | last=Vardi | work=[[Forbes]] | date=January 23, 2013 | url-access=limited}}</ref><ref>{{Cite news | url=https://economictimes.indiatimes.com/news/international/andy-beals-road-to-become-a-billionaire-with-fdic-assets/articleshow/9122012.cms | title=Andy Beal's road to become a billionaire with FDIC assets | agency=[[Bloomberg News]] | work=[[The Economic Times]] | date=July 6, 2011}}</ref>
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.<ref>{{citeweb|url=http://www.businessinsider.com/texas-billionaire-andy-beal-half-the-countrys-banks-could-go-bust-2009-4|title=Texas Billionaire Andy Beal: Half The Country's Banks Could Go Bust}}</ref><ref>{{citeweb|url=https://www.cnbc.com/id/30192117|title=Five Banks that Don't Suck}}</ref> 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|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 [[LyondellBasell|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.<ref>{{citeweb|url=https://www.forbes.com/2010/03/01/beal-bank-business-credit-lending.html#2605ea0e5591|title=Billionaire Banker's Blowout Year}}</ref> In 2009, Beal Bank acquired New South Federal Savings Bank in Alabama.<ref>{{citeweb|url=https://www.lexology.com/library/detail.aspx?g=a370cdb1-c6c2-4ff4-9aa1-1a464916b0fd|title=Beal Bank Assumes Deposits of New South Federal Savings Bank}}</ref> New South's online-only banking subsidiary, UmbrellaBank.com, continues to operate as a division of Beal Bank.<ref>[http://www.fdic.gov/bank/individual/failed/newsouth_q_and_a.html Questions and answers from the FDIC about transition of former assets of New South Federal Savings Bank]</ref>


In 2003, the company acquired Southern Pacific Bank based in [[Torrance, California]], with three branches and $834 million in deposits, after it was shut down by regulators.<ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2003-feb-08-fi-rup8.2-story.html |title=Regulators Close Southern Pacific | work=[[Los Angeles Times]] | date=February 8, 2003 | url-access=limited}}</ref>
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.<ref>{{citeweb|url=http://www.santafenewmexican.com/news/local_news/charter-bank-quietly-reopens-under-new-ownership/article_071eb367-18a1-5f42-82c8-66c58ea0e369.html|title=Charter Bank Quietly Reopens Under New Ownership}}</ref> Its branches were later sold to Washington Federal in June 2011.<ref>{{citeweb|url=https://www.abqjournal.com/161612/exbank-officials-sued-for-8m.html|title=Ex-Bank Officials Sued for $8M}}</ref>


On August 2, 2004, it opened Beal Savings Bank headquartered in [[Las Vegas, Nevada]]. It was renamed Beal Bank USA in 2012.<ref name=bealbankusafdic/><ref>{{cite news | url=https://vegasinc.lasvegassun.com/business/2014/dec/31/beal-banks-lv-headquarters-tiny-its-22b-deposits-p/ | title=Beal Bank's L.V. Headquarters Are Tiny, But Its $2.2B in Deposits Pack a Punch | first=Eli | last=Segall | work=[[Las Vegas Sun]] | date=December 31, 2014}}</ref>
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.<ref>{{citeweb|url=https://www.forbes.com/sites/nathanvardi/2015/04/15/the-billionaire-banker-ready-to-bet-on-oil/#21efc19928f5|title=The Billionaire Banker Ready to Bet on Oil}}</ref> In 2017, the company had $2.3 billion in equity capital.


Beginning in 2004, the bank became a major lender to [[Donald Trump]]'s casino properties while they went through bankruptcy, also offering to acquire the casinos outright.<ref name=bet>{{Cite news | url=https://www.nytimes.com/2019/03/29/business/energy-environment/andrew-beal-california.html | title=A Texan’s Big Bet on a Fossil-Fuel Future for California | first1=Ivan | last1=Penn | first2=Thomas | last2=Kaplan | work=[[The New York Times]] | date=March 29, 2019 | url-access=limited}}</ref>
==Operations==
===Beal Bank===
{{infobox company
|name= Beal Bank
| type = [[Bank]]
| foundation = {{Start date|1988}}
| founder = [[Andrew Beal|D. Andrew "Andy" Beal]]
| homepage = {{URL|https://www.bealbank.com/}}
| location_city = [[Plano, Texas]]
| logo=
| locations = 19
| assets = $1.89 billion (2017)<ref name=fdicrep>{{cite web|url=https://www5.fdic.gov/idasp/confirmation_outside.asp?inCert1=32574|title=Beal Bank}}</ref>
| num_employees = 251 (2017)<ref name=fdicrep/>
}}


Between 2004 and 2007, the company slowed its asset acquisition and began to let its loans run off, as the founder was correctly worried about an impending crisis. Assets shrank from $7.7 billion to $2.9 billion.<ref>{{cite news | url=https://www.businessinsider.com/texas-billionaire-andy-beal-half-the-countrys-banks-could-go-bust-2009-4 | title=Texas Billionaire Andy Beal: Half The Country's Banks Could Go Bust | first=Joe | last=Weisenthal | work=[[Business Insider]] | date=April 4, 2009}}</ref>
Beal Bank opened in 1988, with $3 million in capital operating from a single branch in [[Carrollton, Texas]].<ref>{{cite web|url=https://www.dallasnews.com/business/business/2010/02/21/Beal-Bank-owner-paved-his-own-2879|title=Beal Bank Owner Paved His Own Road to Becoming Dallas' Richest Man}}</ref><ref>{{cite web|url=http://www.dallasobserver.com/news/love-and-rockets-6392592|title=Love & Rockets}}</ref> The bank initially bought assets from [[Resolution Trust Corporation]], a government-owned company that liquidated real estate and savings-and-loan assets.<ref>{{cite web|url=https://www.washingtonpost.com/business/2011/07/03/gIQA9RhE6H_story.html?utm_term=.34abd5fd4687|title=Andrew Beal Business}}</ref> 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.<ref>{{cite web|url=https://www.wsj.com/articles/SB110556884311724524|title=Maverick Banker in Texas Chases Distressed Assets}}</ref> By 1996, the bank was considered the most profitable bank in Texas,<ref>{{cite web|url=https://www.bizjournals.com/dallas/stories/1996/07/15/story4.html|title=The Thrill is Gone: Beal Looks Beyond RTC Loans}}</ref> and reported a net income of $44.8 million, revenue of $143.5 million and $1.2 billion in assets.<ref>{{cite web|url=https://www.bizjournals.com/dallas/stories/1998/03/16/story1.html|title=Beal Aerospace Ready for Launch}}</ref><ref>{{cite web|url=https://www.dmagazine.com/publications/d-magazine/2000/february/the-beal-conjecture/|title=The Beal Conjecture}}</ref>


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 [[2007–2008 financial crisis]]. By 2009, the company had purchased nearly $5 billion in assets, including $1.8 billion in residential loans, a $465 million loan to [[LyondellBasell]], and assets from 15 failed banks in the U.S.<ref>{{cite news | url=https://www.forbes.com/2010/03/01/beal-bank-business-credit-lending.html | title=Billionaire Banker's Blowout Year | first=Nathan | last=Vardi | work=[[Forbes]] | date=March 1, 2010 | url-access=limited}}</ref><ref>{{cite news | url=https://www.forbes.com/2009/04/03/banking-andy-beal-business-wall-street-beal.html | title=The Banker Who Said No | first=Nathan | last=Vardi | work=[[Forbes]] | date=July 11, 2012 | url-access=limited}}</ref>
As of December 31, 2017, Beal Bank reported capital in excess of $600 million and assets around $2 billion.<ref>{{cite web|url=https://research.fdic.gov/bankfind/detail.html?bank=32574&name=Beal%20Bank,%20SSB&searchName=BEAL%20BANK&searchFdic=&city=&state=&zip=&address=&searchWithin=&activeFlag=&tabId=1#|title= Financial summary of Beal Bank}}</ref><ref>[http://www.fdic.gov/regulations/laws/rules/2000-4500.html#2000part325.103 FDIC Law, Regulations, Related Acts: § 325.103 Capital measures and capital category definitions, B.1]</ref> Beal Bank has 16 branches in 11 states and offers [[Certificate of deposit|certificate of deposit accounts]], [[Money market account|money market accounts]], statement savings accounts, and [[Individual retirement account|IRA]] CDs.<ref>{{cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=3119826|title=Company Overview of Beal Bank, SSB}}</ref><ref name=dallasmagazine>{{cite web|url=http://interactive.dmagazine.com/content/dallas-500-2017-living-legends/andrew-beal-2/|title=Dallas 500 Andrew Beal}}</ref>


In April 2009, the company moved its headquarters from [[Dallas]] to [[Plano, Texas|Plano]] after buying the former headquarters of [[Petrofina]].<ref>{{cite news
===Beal Bank USA===
| url=https://www.bizjournals.com/dallas/stories/2000/09/04/story1.html | title=Beal Nabs Fina Campus | first=Hala | last=Habal | work=[[American City Business Journals]] | date=September 3, 2000 | url-access=subscription}}</ref>
{{infobox company
|name= Beal Bank USA
| type = [[Bank]]
| foundation = {{Start date|2004}}
| founder =
| homepage = {{URL|https://www.bealbank.com/bbusa/Home}}
| location_city = [[Las Vegas, Nevada]]
| parent=
| logo=
| locations = 21
| assets = $5.59 billion (2017)<ref name=fdicusa>{{cite web|url=https://www5.fdic.gov/idasp/confirmation_outside.asp?inCert1=57833|title=Beal Bank USA}}</ref>
| num_employees = 133 (2017)<ref name=fdicusa/>
}}


In December 2009, Beal Bank acquired New South Federal Savings Bank based in [[Irondale, Alabama]], with $1.5 billion in assets.<ref>{{Cite news | url=https://www.bizjournals.com/dallas/stories/2009/12/14/daily53.html | title=Beal Bank acquires assets of failed New South Federal Savings Bank | first=Chad Eric | last=Watt | work=[[American City Business Journals]] | date=December 18, 2009 | url-access=subscription}}</ref><ref>{{Cite web | url=https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/newsouth.html | title=Failed Bank Information for New South Federal Savings Bank, Irondale, AL | work=[[Federal Deposit Insurance Corporation]]}}</ref>
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,<ref>{{cite web|url=https://vegasinc.lasvegassun.com/business/2014/dec/31/beal-banks-lv-headquarters-tiny-its-22b-deposits-p/|title=Beal Bank's L.V. Headquarters Are Tiny, But Its $2.2B in Deposits Pack a Punch}}</ref> and was renamed Beal Bank Nevada in 2007,<ref>(2007). "Beal Savings Bank to Be Renamed Beal Bank Nevada." PR Newswire. January 2.</ref> and Beal Bank USA in 2011.<ref>{{cite web|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=25984913|publisher=Bloomberg|title=Company Overview of Beal Bank USA}}</ref>


In January 2010, Beal Bank acquired Charter Bank of Santa Fe.<ref>{{cite news | url=https://www.santafenewmexican.com/news/local_news/charter-bank-quietly-reopens-under-new-ownership/article_071eb367-18a1-5f42-82c8-66c58ea0e369.html |title=Charter Bank Quietly Reopens Under New Ownership | first=Bob | last=Quick | work=[[The Santa Fe New Mexican]] | date=January 25, 2010 | url-access=subscription}}</ref> Its branches were sold to [[WaFd Bank]] in June 2011.<ref>{{Cite news | url=https://www.bizjournals.com/albuquerque/news/2011/06/09/washington-federal-buys-charter-bank.html | title=Washington Federal buys Charter Bank | work=[[American City Business Journals]] | date=June 9, 2011 | url-access=subscription}}</ref>
Beal Bank USA has 21 branches across 19 states. As of December 31, 2017, it reported capital in excess of $2.4 billion and assets in excess of $5.5 billion.<ref>{{cite web|url=https://www5.fdic.gov/idasp/confirmation_outside.asp?inCert1=57833|title= Financial summary of Beal Bank USA}}</ref>


In 2016, the bank acquired Sundevil Holdings LLC, the owner of two gas-fired power plants in Arizona, for a credit bid of $150 million after the company filed bankruptcy. It sold the units for $330 million in 2017.<ref>{{Cite news | url=https://www.wsj.com/articles/beal-bank-wins-court-approval-to-buy-sundevil-power-plants-1472060856 | title=Beal Bank Wins Court Approval to Buy Sundevil Power Plants | first=Lillian | last=Rizzo | work=[[The Wall Street Journal]] | date=August 24, 2016 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/6tslkhg6uf4rbalvtoacna2 | title=Beal seeks FERC approval to sell Gila River units to Salt River Project | first=Usman | last=Khalid | work=[[S&P Global]] | date=November 21, 2017}}</ref> Beal argued before federal regulators that California policies discriminated against generators powered by fossil fuels and “left [the state] dependent on energy sources that are unreliable for round-the-clock power”. Regulators determined in June 2019 that clean-energy providers had been “receiving unfair subsidies that allowed them to submit low bids to power purchasers”. According to the ''New York Times'', Beal’s complaint against this discrimination aimed to “create a fair market and ensure system reliability, not to impede California’s transition to a carbon-free electric grid”.<ref name=bet/>
===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.<ref name=dallasmagazine/> Affiliated companies include: CSG Investments Inc., Loan Acquisition Corporation, CLG Hedge Fund, LLC. UmbrellaBank.com (a division of Beal Bank) and MyCDBank.com (a division of Beal Bank USA) are online banking affiliates.
In November 2020, the bank acquired the $1 billion Campus at [[Legacy West]] development via foreclosure.<ref>{{Cite news | url=https://www.bizjournals.com/dallas/news/2020/11/12/lender-takes-over-deed-of.html | title=Beal Bank subsidiary takes over control of The Campus at Legacy West | first=Ryan | last=Salchert | work=[[American City Business Journals]] | date=November 12, 2020 | url-access=subscription}}</ref>

In 2022, the bank invested heavily in [[Treasury Inflation-Protected Securities]].<ref>{{Cite news | url=https://www.marketwatch.com/story/andy-beal-americas-richest-banker-makes-a-massive-bond-bet-on-inflation-f524dc1e | title=Andy Beal, America’s richest banker, makes a massive bond bet on inflation | first=Nathan | last=Vardi | work=[[MarketWatch]] | date=April 19, 2023 | url-access=subscription}}</ref>


==References==
==References==
{{Reflist|3}}
{{Reflist}}


==External links==
==External links==
* {{Official website|https://www.bealbank.com/}}
*[http://www.clgenergyfinance.com/ CLG Energy Finance, LLC]
*[http://www.clghedgefund.com/ CLG Hedge Fund, LLC]
*[http://www.csginvestments.com/ CSG Investments Inc.]
*[http://loanacquisitioncorp.com/ Loan Acquisition Corporation]
*[http://www.MyCDBank.com MyCDBank.com]
*[http://www.umbrellabank.com UmbrellaBank.com]


[[Category:1988 establishments in Texas]]
[[Category:American companies established in 1988]]
[[Category:Banks based in Texas]]
[[Category:Banks based in Texas]]
[[Category:Banks based in the Dallas–Fort Worth metroplex]]
[[Category:Banks established in 1988]]
[[Category:Companies based in Plano, Texas]]
[[Category:Companies based in Plano, Texas]]
[[Category:1988 establishments in Texas]]
[[Category:Banks established in 1988]]

Latest revision as of 17:17, 25 August 2024

Beal Financial Corporation
Company typePrivate
IndustryBank
FoundedMarch 10, 1988; 36 years ago (1988-03-10)
FounderAndrew Beal
Headquarters
Plano, Texas
OwnerAndrew Beal
Websitewww.bealbank.com
Footnotes / references
[1][2]
Beal Bank
Number of locations
6
Total assets$4.843 billion (2024)
Footnotes / references
[3]
Beal Bank USA
Company typeBank
FoundedAugust 2, 2004 (2004-08-02)
Headquarters
Las Vegas, Nevada
Number of locations
11
Total assets$18.030 billion (2024)
Footnotes / references
[4]

Beal Financial Corporation is a bank holding company based in Plano, Texas that operates two federally chartered banks: Beal Bank, with 6 branches,[1] and Beal Bank USA, headquartered in Las Vegas, Nevada, with 10 branches and a direct bank.[2] It is on the list of largest banks in the United States. It was founded by and is entirely owned by billionaire Andrew Beal and specializes in acquiring distressed securities at discounted values. It acquires risky loans, but keeps a much higher equity buffer than other banks.[5][6]

History

[edit]

Beal Bank was founded on March 10, 1988 in Dallas, TX by Andrew Beal.[1][7][8] It began with $3 million in capital and a single branch in Carrollton, Texas.[9][10] During the savings and loan crisis, the bank purchased assets and real estate from failing banks and the Resolution Trust Corporation, a government-owned company that liquidated real estate and savings-and-loan assets.[5][8] By 1996, the bank was the most profitable bank in Texas.[11][12][13]

In 2000, the company acquired $1 billion of face value in commercial loans from the Small Business Administration at a discount.[8]

After the September 11 attacks, the company invested in distressed securities of airline companies.[8][14][15]

In 2003, the company acquired Southern Pacific Bank based in Torrance, California, with three branches and $834 million in deposits, after it was shut down by regulators.[16]

On August 2, 2004, it opened Beal Savings Bank headquartered in Las Vegas, Nevada. It was renamed Beal Bank USA in 2012.[2][17]

Beginning in 2004, the bank became a major lender to Donald Trump's casino properties while they went through bankruptcy, also offering to acquire the casinos outright.[18]

Between 2004 and 2007, the company slowed its asset acquisition and began to let its loans run off, as the founder was correctly worried about an impending crisis. Assets shrank from $7.7 billion to $2.9 billion.[19]

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 2007–2008 financial crisis. By 2009, the company had purchased nearly $5 billion in assets, including $1.8 billion in residential loans, a $465 million loan to LyondellBasell, and assets from 15 failed banks in the U.S.[20][21]

In April 2009, the company moved its headquarters from Dallas to Plano after buying the former headquarters of Petrofina.[22]

In December 2009, Beal Bank acquired New South Federal Savings Bank based in Irondale, Alabama, with $1.5 billion in assets.[23][24]

In January 2010, Beal Bank acquired Charter Bank of Santa Fe.[25] Its branches were sold to WaFd Bank in June 2011.[26]

In 2016, the bank acquired Sundevil Holdings LLC, the owner of two gas-fired power plants in Arizona, for a credit bid of $150 million after the company filed bankruptcy. It sold the units for $330 million in 2017.[27][28] Beal argued before federal regulators that California policies discriminated against generators powered by fossil fuels and “left [the state] dependent on energy sources that are unreliable for round-the-clock power”. Regulators determined in June 2019 that clean-energy providers had been “receiving unfair subsidies that allowed them to submit low bids to power purchasers”. According to the New York Times, Beal’s complaint against this discrimination aimed to “create a fair market and ensure system reliability, not to impede California’s transition to a carbon-free electric grid”.[18]

In November 2020, the bank acquired the $1 billion Campus at Legacy West development via foreclosure.[29]

In 2022, the bank invested heavily in Treasury Inflation-Protected Securities.[30]

References

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  1. ^ a b c "Beal Bank". Federal Deposit Insurance Corporation.
  2. ^ a b c "Beal Bank USA". Federal Deposit Insurance Corporation.
  3. ^ "View -- Executive Summary Report". Federal Financial Institutions Examination Council.
  4. ^ "View -- Executive Summary Report". Federal Financial Institutions Examination Council.
  5. ^ a b Effinger, Anthony (July 9, 2011). "His hedge against risk: Bank deposits". The Washington Post.
  6. ^ Vardi, Nathan (April 15, 2015). "The Billionaire Banker Ready to Bet on Oil". Forbes.
  7. ^ Bandell, Brian (November 9, 2009). "Texas Billionaire Beal Seeks Failed Florida Bank". American City Business Journals.
  8. ^ a b c d Anders, George (January 13, 2005). "Maverick Banker in Texas Chases Distressed Assets". The Wall Street Journal.
  9. ^ "Beal Bank Owner Paved His Own Road to Becoming Dallas' Richest Man". The Dallas Morning News. February 21, 2010.
  10. ^ Pappalardo, Joe (March 1, 2001). "Love & Rockets". Dallas Observer.
  11. ^ Welch, David (July 15, 1996). "The Thrill is Gone: Beal Looks Beyond RTC Loans". American City Business Journals.
  12. ^ Bounds, Jeff (March 16, 1998). "Beal Aerospace Ready for Launch". American City Business Journals.
  13. ^ RICE, Melinda (February 1, 2000). "The Beal Conjecture". D Magazine.
  14. ^ Vardi, Nathan (January 23, 2013). "Billionaire Banker Targeting Big Banks Over Mortgages". Forbes.
  15. ^ "Andy Beal's road to become a billionaire with FDIC assets". The Economic Times. Bloomberg News. July 6, 2011.
  16. ^ "Regulators Close Southern Pacific". Los Angeles Times. February 8, 2003.
  17. ^ Segall, Eli (December 31, 2014). "Beal Bank's L.V. Headquarters Are Tiny, But Its $2.2B in Deposits Pack a Punch". Las Vegas Sun.
  18. ^ a b Penn, Ivan; Kaplan, Thomas (March 29, 2019). "A Texan's Big Bet on a Fossil-Fuel Future for California". The New York Times.
  19. ^ Weisenthal, Joe (April 4, 2009). "Texas Billionaire Andy Beal: Half The Country's Banks Could Go Bust". Business Insider.
  20. ^ Vardi, Nathan (March 1, 2010). "Billionaire Banker's Blowout Year". Forbes.
  21. ^ Vardi, Nathan (July 11, 2012). "The Banker Who Said No". Forbes.
  22. ^ Habal, Hala (September 3, 2000). "Beal Nabs Fina Campus". American City Business Journals.
  23. ^ Watt, Chad Eric (December 18, 2009). "Beal Bank acquires assets of failed New South Federal Savings Bank". American City Business Journals.
  24. ^ "Failed Bank Information for New South Federal Savings Bank, Irondale, AL". Federal Deposit Insurance Corporation.
  25. ^ Quick, Bob (January 25, 2010). "Charter Bank Quietly Reopens Under New Ownership". The Santa Fe New Mexican.
  26. ^ "Washington Federal buys Charter Bank". American City Business Journals. June 9, 2011.
  27. ^ Rizzo, Lillian (August 24, 2016). "Beal Bank Wins Court Approval to Buy Sundevil Power Plants". The Wall Street Journal.
  28. ^ Khalid, Usman (November 21, 2017). "Beal seeks FERC approval to sell Gila River units to Salt River Project". S&P Global.
  29. ^ Salchert, Ryan (November 12, 2020). "Beal Bank subsidiary takes over control of The Campus at Legacy West". American City Business Journals.
  30. ^ Vardi, Nathan (April 19, 2023). "Andy Beal, America's richest banker, makes a massive bond bet on inflation". MarketWatch.
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