Beal Bank

Last updated
Beal Financial Corporation
Company type Private
Industry Bank
FoundedMarch 10, 1988;36 years ago (1988-03-10)
Founder Andrew Beal
Headquarters
Plano, Texas
Owner Andrew Beal
Website www.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 type Bank
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]

Contents

History

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]

Related Research Articles

Washington Mutual, Inc. was an American savings bank holding company based in Seattle. It was the parent company of WaMu Bank, which was the largest savings and loan association in the United States until its collapse in 2008.

Washington Federal Bank is an American bank based in Seattle, Washington. It operates over 200 branches throughout Washington, Oregon, Idaho, Nevada, Utah, Arizona, New Mexico, California, and Texas.

<span class="mw-page-title-main">Bank One Corporation</span> Former bank of the United States

Bank One Corporation was an American bank founded in 1968 and at its peak the sixth-largest bank in the United States. It traded on the New York Stock Exchange under the stock symbol ONE. The company merged with JPMorgan Chase & Co. on July 1, 2004, with its CEO Jamie Dimon taking the lead at the combined company. The company had its headquarters in the Bank One Plaza in the Chicago Loop in Chicago, Illinois, now the headquarters of Chase's retail banking division.

East West Bank is the primary subsidiary of East West Bancorp, Inc. It is the largest publicly traded bank headquartered in Southern California, ranking 42nd on the list of largest banks in the United States.

<span class="mw-page-title-main">PNC Financial Services</span> Major bank based in Pittsburgh

The PNC Financial Services Group, Inc. is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. Its banking subsidiary, PNC Bank, operates in 27 states and the District of Columbia, with 2,629 branches and 9,523 ATMs. PNC Bank is on the list of largest banks in the United States by assets and is one of the largest banks by number of branches, deposits, and number of ATMs.

Daniel Andrew Beal is an American banker, businessman, investor, and amateur mathematician. He is a Dallas-based businessman who accumulated wealth in real estate and banking. Born and raised in Lansing, Michigan, Beal is founder and chairman of Beal Bank and Beal Bank USA, as well as other affiliated companies. According to Bloomberg Billionaires Index, Beal has an estimated worth of US$9.49 billion as of December 2021.

Amresco was the new name given to "Financial Resource Management, Inc.", a subsidiary of the NCNB Texas National Bank in 1992.

Great Western Bank was a large retail bank that operated primarily in the Western United States. Great Western's headquarters were in Chatsworth, California. At one time, Great Western was one of the largest savings and loan in the United States, second only to Home Savings of America. The bank was acquired by Washington Mutual in 1997 for $6.8 billion.

H.F. Ahmanson & Co. was a California holding company named after Howard F. Ahmanson Sr. It was best known as the parent of Home Savings of America, once one of the largest savings and loan associations in the United States.

<span class="mw-page-title-main">BankAtlantic</span> Former Florida bank

BankAtlantic was a US bank that operated in the state of Florida until it was acquired in 2012 by BB&T Corporation. It provided consumer and business banking services to communities throughout Florida.

<span class="mw-page-title-main">MUFG Union Bank</span> Defunct American bank

Union Bank was an American national bank with 398 branches in California, Washington, and Oregon. It was owned by MUFG Americas Holdings Corporation and was acquired by U.S. Bancorp in December 2022. It was headquartered in New York City and had commercial branches in Dallas, Houston, New York City, and Chicago, and two international offices.

<span class="mw-page-title-main">Lincoln Savings and Loan Association</span>

The Lincoln Savings and Loan Association of Irvine, California, was the financial institution at the heart of the Keating Five scandal during the 1980s savings and loan crisis.

<span class="mw-page-title-main">MacAndrews & Forbes</span> American holding company

MacAndrews & Forbes Incorporated is an American diversified holding company wholly owned by billionaire investor Ronald Perelman. Current investments include leading participants across a wide range of industries, from cosmetics and entertainment to biotechnology and military equipment. The principal interests of MacAndrews & Forbes include AM General, Harland Clarke, Merisant, RetailMeNot, Revlon, Scantron, Scientific Games Corporation, SIGA Technologies, Valassis and vTv Therapeutics.

Hilltop Holdings Inc. is a financial holding company based in Dallas, Texas. It offers financial products and banking services through three primary subsidiaries: PlainsCapital Bank, PrimeLending, and HilltopSecurities.

Capitol Federal Savings Bank (CapFed) is a federally chartered and insured savings bank founded in 1893 and headquartered in Topeka, Kansas. Capitol Federal has 51 locations serving both the Kansas and Missouri sides of the Kansas City metropolitan area with personal and business financial services. It is owned by holding company Capitol Federal Financial Inc. for trading on the Nasdaq.

Guaranty Bank was a major bank based in Austin, which collapsed in 2009. It was formed in 1988 as part of Temple-Inland and in 2007 became a standalone company. At the time of its collapse, Guaranty was the second largest bank in Texas, with 162 branches across Texas and California, and had $13 billion in assets and held $12 billion in deposits. Major shareholders included billionaire investor Carl Icahn and hotel tycoon Robert Rowling, who jointly invested $600 million in the bank in 2008.

Bank United Corporation, headquartered in Houston, Texas, was a broad-based financial services provider and the largest publicly traded depository institution headquartered in Texas before its merger with Washington Mutual in 2001. Bank United Corp. conducted its business through its wholly owned subsidiary, Bank United, a federally chartered savings bank. The company operated a 155-branch community banking network in Texas, including 77 in the Dallas/Fort Worth Metroplex, 66 in the greater Houston area, five in Midland, four in Austin, and three in San Antonio; operated 19 SBA lending offices in 14 states; was a national middle market commercial bank with 23 regional offices in 16 states; originated mortgage loans through 11 wholesale offices in 10 states; operated a national mortgage servicing business serving approximately 324,000 customers, and managed an investment portfolio. As of June 30, 2000, Bank United Corp. had assets of $18.2 billion, deposits of $8.8 billion, and stockholder's equity of $823 million.

Crestar Bank was a bank headquartered in Richmond, Virginia with branches in Virginia and Maryland. It was the leading subsidiary of Crestar Financial Corporation. In 1998, it was acquired by SunTrust Banks. At that time, it was the largest independent bank in Virginia.

Pacific Premier Bancorp, Inc. is an American bank holding company under the Bank Holding Company Act of 1956 headquartered in Irvine, California, US. Its principal business focuses on Pacific Premier Bank, which offers a range of financial services to individuals, businesses, and professionals. The bank operates numerous branches in California, Arizona, Nevada, and Washington.

Gibraltar Savings Association was a Houston, Texas based savings and loan. Its failure in 1988 and resolution was one of the most expensive in the savings and loan crisis at an estimated cost of $2.875 billion.

References

  1. 1 2 3 "Beal Bank". Federal Deposit Insurance Corporation .
  2. 1 2 3 "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. 1 2 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. 1 2 3 4 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. 1 2 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 .
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.