Closed Friday, November 7, 2008 · Houston, Harris County, Texas
Franklin Bank, SSB
By total assets Franklin Bank, SSB is the 40th-largest of the 3,375 bank failures since 1934 for which the FDIC records a size, counted in dollars of the day. No bank in Texas had failed for six years, since Bank of Sierra Blanca closed in 2002. Franklin Bank reported a net loss in three of Franklin Bank's final nine reporting years.
On the books, 2000 to 2008
Total assets peaked at $5.9 billion in the first quarter of 2008 and were 14% lower at the final report. Equity capital went from 9.3% of assets in the fourth quarter of 2000 to 3.4% at the last report. By then 15% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $383 million, was booked in 2008 in only part of the year.* 2008: January to September only, the last report before closing.
Size against the other 2008 failures
Total assets of each 2008 failure, log scale; Franklin Bank in red.
By assets it ranked fourth of the 25 failures in 2008. Within Texas it ranks sixth by size of the 738 failures recorded since 1934. Across the failures of 2008, the median estimated loss came to 37% of assets. Ranked by estimated loss, it is 66th of 2,944 failures since 1934. In the size ranking of that year, just above it was Downey Savings and Loan Association, F.A. of Newport Beach, California ($12.8 billion, loss 1.2% of assets); just below, PFF Bank & Trust of Pomona, California ($3.7 billion, loss 7.0% of assets). Every 2008 failure in the explorer.
The only other bank closed that day was Security Pacific Bank of Los Angeles, California.
Failures in Texas
It was one of two banks in Texas to fail in 2008. The next was Sanderson State Bank of Sanderson, on December 12, 2008. Harris County has 99 failed banks on FDIC record since 1934. Closest in time: 1st National Bank of Texas (1992), First City, Texas - Houston, National Association (1992), Westheimer National Bank (1993), Fidelity National Bank (1993), North Houston Bank (2009).