On November 7, 2008, Franklin Bank, SSB, Houston, TX was closed by the Texas Department of Savings and Mortgage Lending and the Federal Deposit Insurance Corporation (FDIC)
was named Receiver. No advance notice is given to the
public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking
account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct
deposit, and other relationships with the institution. The FDIC has compiled the following information which should
answer many of your questions.
The FDIC has issued a press release
the institution's closure. If you represent a media outlet and would
like information about the closure, please contact
David Barr at 202-898-6992.
All deposit accounts have been transferred to
Prosperity Bank, El Campo, TX ("assuming
and will be available immediately. On Saturday, November 8, 2008,
the former Franklin Bank, SSB locations will reopen as branches of
Your transferred deposits will be separately insured from any accounts
you may already have at Prosperity Bank for six
months after the failure of Franklin Bank, SSB. Checks
that were drawn on Franklin Bank, SSB that did not
clear before the institution closed will be honored as long as there are
sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC
representative regarding deposit insurance by calling: 1-800-591-2845.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
You may withdraw your funds from any transferred
account without an early withdrawal penalty until you enter into a new deposit
agreement with Prosperity Bank as long as
the deposits are not pledged as collateral for loans. You may view more
information about Prosperity Bank by visiting their web site.
The Automated Teller Machines (ATM) and online service will remain available.
As of Saturday, November 8, 2008, you may continue to use the services
to which you previously had access, such as,
safe deposit boxes, night deposit boxes, wire services, etc.
Your checks will be processed as usual. All outstanding checks
will be paid against your available insured balance(s) as if no change
had occurred. Your new bank will
contact you soon regarding any changes in the terms of your account. If
you have a problem with a merchant refusing to accept your check, please
contact your branch
office. An account representative will
clear up any confusion about the validity of your checks.
All interest accrued through Friday, November 7, 2008, will be paid
at your same rate. Prosperity Bank will
be reviewing rates and will provide further information soon. You
will be notified of any changes.
Your automatic direct deposit(s) and/or automatic withdrawal(s) will be
transferred automatically to your new bank. If
you have any questions or special requests, you may contact a representative
of your assuming institution at your
If you had a loan with Franklin Bank, SSB, you should
continue to make your payments as usual. The terms of your loan
will not change under the terms of the loan contract because they are contractually
agreed to your promissory note with the failed institution. Checks
should be made payable as usual and sent to the same address until further
notice. If you have further questions regarding an existing loan, you may call 1-800-373-7840.
For all questions regarding new loans and the lending policies of Prosperity Bank, please contact your branch office.
Determination of Insufficient Assets to Satisfy Claims Against Financial Institution in Receivership
SUMMARY: The FDIC has determined that insufficient assets exist in the receivership of Franklin Bank, SSB, Houston, TX to make any distribution to general unsecured claims, and therefore such claims will recover nothing and have no value.
DATES: The FDIC made its determination on February 22, 2013.
If you have questions regarding this notice, you may contact an FDIC Claims Agent at (972) 761–8677. Written correspondence may also be mailed to:
FDIC as Receiver of Franklin Bank, SSB
Attention: Claims Agent
1601 Bryan Street
Dallas, Texas 75201
SUPPLEMENTARY INFORMATION: On November 7, 2008, Franklin Bank, S.S.B., Houston, Texas, (FIN #10021) was closed by the Texas Department of Savings and Mortgage Lending, and the Federal Deposit Insurance Corporation (''FDIC'') was appointed as its receiver ("Receiver"). In complying with its statutory duty to resolve the institution in the method that is least costly to the deposit insurance fund (see 12 U.S.C. 1823(c)(4)), the FDIC facilitated a transaction with
Prosperity Bank, El Campo, Texas, to assume all deposits and a portion of the assets of the failed institution.
Section 11(d)(11)(A) of the FDI Act, 12 U.S.C. 1821(d)(11)(A), sets forth the order of priority for distribution of amounts realized from the liquidation or other resolution of an insured depository institution to pay claims. Under the statutory order of priority, administrative expenses and deposit liabilities must be paid in full before any distribution may be made to general unsecured creditors or any lower priority claims.
As of December 31, 2012, the maximum value of assets that could be available for distribution by the Receiver, together with maximum possible recoveries on professional liability claims against directors, officers, and other professionals, plus anticipated maximum recoveries from pending transactions was $714,420,467. As of the same date, administrative expenses and depositor liabilities equaled $1,031,660,492, exceeding available assets and potential recoveries by $317,240,025. Accordingly, the FDIC has determined that insufficient assets exist to make any distribution on general unsecured creditor claims (and any lower priority claims) and therefore all such claims, asserted or unasserted, will recover nothing and have no value.
DATED: February 22, 2013
Federal Register/Vol. 78, No. 40/Thursday, February 28, 2013/Notices Pg. 13671
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site
outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance
coverage on custodial accounts deposited in a failed FDIC Insured Institution.
The FDIC as receiver for Franklin Bank, S.S.B., Houston, Texas, has transferred to Prosperity Bank, El Campo, Texas, all Qualified Financial Contracts to which Franklin Bank, S.S.B. was a party. Qualified Financial Contracts include swaps, options, futures, forwards, repurchase agreements and any other Qualified Financial Contract as defined in 12 U.S.C. Section 1821(e)(8)(D).
See related FDIC press release (PR-113-2008) dated November 07, 2008, for further information regarding Franklin Bank, S.S.B..