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. Headquartered in Las Vegas, NV, Beal Bank USA (formerly Beal Bank Nevada) was founded in 2004. As of June 30, 2017, the banks had combined total assets of more than $7.4 billion and combined total capital of more than $2.7 billion.
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.
Beal Bank
With 16 retail branches and online banking, Beal Bank reports capital in excess of $573 million and assets in excess of $2.1 billion as of June 30, 2017. This equals capital of more than 44.05% of assets; the FDIC standard is 5% for a well-capitalized bank.
Based on the Uniform Bank Performance Report (UBPR) on Beal Bank, from the Federal Financial Institutions Examination Council, Beal Bank’s ROA is generally several times in excess of its peer group; insured savings banks with assets greater than $1 billion. From 2009-2012 Beal Bank generally exceeded its peer group.
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.
Beal Bank USA
Beal Bank USA has 21 retail branches and online banking, reporting capital in excess of $2.1 billion and assets in excess of $5.3 billion as of June 30, 2017.
This equals capital of approximately 30.27% of assets, also above the FDIC standard of 5% for a well-capitalized bank.
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.
Headquartered in Las Vegas, it was founded in 2004 as Beal Savings Bank. The bank was renamed Beal Bank Nevada in 2007, and became Beal Bank USA in August 2011.
Affiliates
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.
- Loan Acquisition Corporation
- CLG Hedge Fund, LLC
- UmbrellaBank.com an online-only bank that is a division of Beal Bank
- MyCDBank.com an online-only bank that is a division of Beal Bank USA
UmbrellaBank.com
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. 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.
MyCDBank.com
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.
References
External links
- Beal Bank and Beal Bank USA website
- UmbrellaBank.com
- MyCDBank.com
- CSG Investments Inc.
- Loan Acquisition Corporation
- CLG Hedge Fund, LLC
- CLG Energy Finance, LLC
- FDIC website
- An article on Andrew Beal on Forbes
