Beal Bank

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Beal Bank and Beal Bank USA are banks founded by Texas-based entrepreneur D. Andrew Andy Beal. Headquartered in Dallas, TX, Beal Bank was founded in 1988.[1] Headquartered in Las Vegas, NV, Beal Bank USA (formerly Beal Bank Nevada) was founded in 2004.[2] As of June 2014, the banks had combined total assets of more than $8.1 billion and combined total capital of more than $3.2 billion.[3]

Both banks are members of and are insured by the Federal Deposit Insurance Corporation (FDIC). The banks offer deposit products to the public including CDs, money market accounts, statement savings accounts, and IRA CD accounts that are insured by the FDIC. The banks are considered wholesale banks because they do not offer consumer loans or checking accounts. Both banks purchase pools of non-agency residential first liens and commercial real estate-secured loans, and also fund commercial loans and participations in loans, through affiliates.

About Beal Bank[edit]

With 16 retail branches and online banking, Beal Bank reports capital in excess of $1 billion and assets in excess of $2.3 billion as of June 2014.[4] This equals capital of more than 47% of assets; the FDIC standard is 5% for a well-capitalized bank.[5]

Based on the Uniform Bank Performance Report (UBPR) on Beal Bank, from the Federal Financial Institutions Examination Council,[6] Beal Bank’s ROA is generally several times in excess of its peer group; insured savings banks with assets greater than $1 billion.[7] From 2009-2012 Beal Bank generally exceeded its peer group.[8]

In 2000, American Banker named Beal Bank the most profitable bank in the USA. At the time it had a five-year return on equity of 50 percent.[9]

About Beal Bank USA[edit]

Beal Bank USA has 21 retail branches and online banking, reporting capital in excess of $2.2 billion and assets in excess of $5.8 billion as of June 2014.[10]

This equals capital of approximately 39.7% of assets, also above the FDIC standard of 5% for a well-capitalized bank.[11]

Based on the UBPR on Beal Bank USA, Beal Bank USA’s ROA is generally several times in excess of its peer group; insured commercial banks with assets greater than $3 billion.[12]

Headquartered in Las Vegas, it was founded in 2004 as Beal Savings Bank. The bank was renamed Beal Bank Nevada in 2007,[13] and became Beal Bank USA in August 2011.

Affiliates[edit]

Through affiliated companies based in Dallas, both banks are active in commercial real estate acquisition as well as individual loan and loan portfolio acquisition. They also fund loans and participations in loans secured by real estate, energy, power, gas, manufacturing, timber, transportation and distribution, and other tangible assets. Affiliated companies include:

  • CSG Investments Inc.[14]
  • Loan Acquisition Corporation[15]
  • CLG Hedge Fund, LLC[16]
  • UmbrellaBank.com[17] an online-only bank that is a division of Beal Bank
  • MyCDBank.com[18] an online-only bank that is a division of Beal Bank USA

UmbrellaBank.com[edit]

UmbrellaBank.com is an online-only division of Beal Bank that offers certificates of deposit, money market accounts, statement savings accounts, and individual retirement accounts.[19] It was formerly owned by New South Federal Savings Bank, Birmingham, Alabama, but was closed by the FDIC in 2009. Beal Bank assumed management and operations with no loss of customer deposits.[20]

MyCDBank.com[edit]

myCDbank.com is an online-only division of Beal Bank USA that offers certificates of deposit, money market accounts, statement savings accounts, and individual retirement accounts.[21]

References[edit]

  1. ^ FDIC certificate information for Beal Bank, FDIC Certificate No. 32574
  2. ^ FDIC certification information for Beal Bank USA, FDIC Certificate No. 57833
  3. ^ Online searchable Uniform Banking Performance Reports from the FFIEC
  4. ^ Financial summary of Beal Bank on banking industry site depositaccounts.com
  5. ^ FDIC Law, Regulations, Related Acts: § 325.103 Capital measures and capital category definitions, B.1
  6. ^ Information about Uniform Bank Performance Reports on Federal Financial Institutions Examination Council site
  7. ^ Online searchable Uniform Banking Performance Reports from the FFIEC
  8. ^ White, Martha C. "Five Banks That Don't Suck." Big Money. 10 04 2009: n. page. Web. 4 Sep. 2012.
  9. ^ The Banker Who Said No, Bernard Condon, Nathan Vardi, Forbes.com, April 2009
  10. ^ Financial summary of Beal Bank USA on banking industry site depositaccounts.com
  11. ^ FDIC Law, Regulations, Related Acts: § 325.103 Capital measures and capital category definitions, B.1
  12. ^ Online searchable Uniform Banking Performance Reports from the FFIEC
  13. ^ (2007). "Beal Savings Bank to Be Renamed Beal Bank Nevada." PR Newswire. January 2.
  14. ^ public website for CSG Investments Inc.
  15. ^ public website for Loan Acquisition Corporation
  16. ^ public website for CLG Hedge Fund
  17. ^ UmbrellaBank.com
  18. ^ MyCDBank.com
  19. ^ Savings products offered to public on the UmbrellaBank.com site
  20. ^ Questions and answers from the FDIC about transition of former assets of New South Federal Savings Bank
  21. ^ Savings products offered to public on the MyCDBank.com site

External links[edit]