Everything's bigger in Texas, and Beal Bank is no exception. One of the largest private financial services firms based in the state, Beal is a wholesale bank that buys and sells pools of loans and debt securities on the secondary market. It also engages in more traditional banking activities, offering certificates of deposit, money market accounts, IRAs, and savings accounts to businesses and consumers nationwide. However, it does not originate commercial or residential loans. The company has offices in Texas, New York, California, Florida, and other states. Beal Bank was founded in 1988 by chairman, primary owner, and famed poker player Andy Beal.
Beal Bank is also affiliated with Las Vegas-based Beal Bank Nevada, which was established in 2004; corporate finance firm Beal Capital Markets; and CSG Investment, an investment advisory firm focused on providing capital to companies that don't meet the requirements of more-traditional sources.
Beal Bank utilizes mathematical models, behavioral finance, game theory, and proprietary algorithms to assess possible investments. The company often buys loans at a discount from such government agencies as HUD and the FDIC, or from other financial institutions.
The bank's strategy has proven to be a good one, even during the recession. The company primarily sat out the credit boom, making few deals to buy loans from 2004 to 2007. Once the financial crisis struck Beal Bank took the opportunity to buy assets at discounted prices. It nearly tripled its assets from 2007 to 2009. That boosted net income and revenues. Profits nearly doubled for Beal bank in 2009.
Failed banks also have been attractive investments for Beal Bank. In late 2009 the company acquired the failed mortgage and auto lender New South Federal Savings Bank of Alabama in an FDIC-assisted transaction. It also acquired the failed Charter Bank, which had nearly 10 locations in New Mexico, in a similar transaction in early 2010.
In 2009 Beal Bank attempted to buy Trump Entertainment Casinos in Atlantic City.However, Donald Trump and his daughter Ivanka won the right to purchase the company out of bankruptcy. – less