Current news for this company:
Franklin Bank, SSB - Agency, FHA/VA
Update - 2008-07-30: The Houston Business Journal reported Franklin Bank received a non-compliance notice from NASDAQ on 2008-07-23 for failing to maintain the required minimum share price of $1 for 30 consecutive days. The bank has 180 days, or until 2009-01-20, to regain compliance. In a press release, Franklin Bank said "This notification will not impact the listing of Franklin's common stock at this time."
"Franklin has previously disclosed receipt from Nasdaq of notifications of noncompliance with Nasdaq Marketplace Rule 4310(c)(14) (the "Reporting Rule") regarding Franklin's failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the three months ended March 31, 2008. As previously disclosed, Nasdaq has granted Franklin until September 15, 2008 to make these delayed filings. The July 23, 2008 letter from Nasdaq has no effect on Franklin's compliance with the Reporting Rule."
Update - 2008-06-17: Shares in Franklin Bank have fallen from previous highs of over $20.00 to 93 cents today. We've gathered a list of outstanding law suits:
Update - 2008-06-12: According to a Bloomberg article today, Franklin has announced it will shut down its warehouse lending unit. Citing an unnamed source, it states:
"The Houston-based company is "substantially exiting" the so-called warehouse-lending business, firing most of its 20 employees, said the person, who asked not to be identified because the move hasn't been announced."
There has still been no official announcement of the closure of their wholesale lending division.
Original listing - 2008-05-22: We recently heard Houston-based Franklin Bank shut down wholesale lending operations, but now the entire company appears to be teetering on the brink of failure.
According to Reuters, CEO Anthony Nocella "will accelerate his personal plans to retire" and has stepped down, and the bank's holding company faces an SEC probe that "comes on the heels of a 10-week internal investigation that the bank said uncovered a variety of accounting errors, largely related to residential mortgage loans."
This in from a tipster:
From a page on their web site about Retail Mortgage Loan Production Offices: "In just over three years, Franklin Bank has grown total assets to over $4 billion and has over 600 employees in 60 locations in 34 states." Allmortgagedetail.com reports average monthly origination volume across all channels in 2006 was $53.8 million, a drop from 2005's average of $67.2 million.
"Non-interest expense for the three and nine months ended September 30, 2007 increased $332,000, or 6%, and decreased $672,000, or 4%, respectively, compared to the same periods in 2006. The increase for the three months ended September 30, 2007 primarily related to charges associated with closing twelve retail mortgage offices during the third quarter as well as an increase in real estate owned expenses due to an increase in the number of foreclosed real estate properties. The decrease for the nine months ended September 30, 2007 was primarily due to decreases in salaries and benefits and loan expenses partly offset by an increase in real estate owned expenses. Salaries and benefits decreased $1.3 million, or 13%. This decrease was primarily the result of lower commissions due to the volume of originations. Loan expenses decreased $573,000, or 34%. This decrease was primarily due to the lower volume of originations. The increase in real estate owned expenses was due to an increase in the number of foreclosed real estate properties."
"Franklin's single family portfolio is also geographically diversified over 49 states." On closer look, it seems a full-third is in hard-set California, with the balance of more than half in Texas and Florida. From their latest Earnings Release dated 2007-12-31:
The Houston Business Chronicle reports Franklin "will appear before the NASDAQ listing qualifications panel May 22 [today] to argue for continued listing of its shares, pending the filing of outstanding financial statements."
truehollywood at 20:08 2008-07-14 said:Lew Ranieri, the co-inventor of the MBS, believes the mortgage industry can cut through its portfolio of troubled loans by aggressively reducing the principal amount owed on delinquent loans. Speaking at an FDIC meeting on Tuesday, Mr. Ranieri noted that "cutting the principal is better than putting the loan in foreclosure," adding that in a foreclosure "the costs can eat up the principal in a hurry." Because of his long history and expertise in the mortgage industry Mr. Ranieri has the ear of several regulatorsâ¦ Permalink
truehollywood at 08:27 2008-07-30 said:Franklin Bank Corp. on Tuesday said it had been notified by the NASDAQ stock market on July 23 that it no longer met listing requirements because its share price had been below the required minimum price of $1 for 30 consecutive days. Houston-based Franklin has until Jan. 20, 2009, to regain compliance. In the meantime the companyâs shares will continue to be listed on the NASDAQ under the ticker symbol FBTX. In May, Franklin chief executive Anthony Nocella resigned in the wake of an internal investigation that uncovered numerous accounting errors related to the bankâs residential mortgages and construction lending. Lewis Ranieri, Franklin chairman, filled in as CEO until the appointment in late June of Andy Black, president and chief operating officer of the Houston bank holding companyâs Franklin Bank operating subsidiary, as interim chief executive. Franklin Bank Corp. shares closed up 6 cents Tuesday at 62 cents. Permalink
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Important: This company is on our list of lending operations that are apparently ailing or which we think are worth watching for any other reason. We make no representation or claim that any company on this list will or will not continue as a going concern, or change in any other way, adverse or beneficial. If you have concerns about this company, we suggest contacting them directly and/or checking with other reliable sources.