Business and Capital Market Analysis !!!

By: John Letzing, MarketWatch reporter based in San Francisco.

SAN FRANCISCO (MarketWatch) - Houston-based Franklin Bank S.S.B. was closed by regulators Friday, the 18th bank failure this year amid the ongoing credit crisis.

The Federal Deposit Insurance Corporation said in a statement that Franklin Bank (FBTX) had total assets of $5.1 billion as of Sept. 30 and $3.7 billion in total deposits.

El Campo, Texas-based Prosperity Bank will assume Franklin Bank's deposits for a premium of 1.7%, and Franklin's 46 offices will reopen as Prosperity branches, the FDIC said.

In addition, Prosperity Bank will purchase roughly $850 million of Franklin Bank's assets, according to the regulator. The FDIC estimated that Franklin Bank's failure will cost its Deposit Insurance Fund between $1.4 billion and $1.6 billion.
Shares of Franklin Bank slid more than 80% lower in after-hours trading, to $0.04 cents.

List of failure bank this year (2008)

1. Freedom Bank, FL October 31, 2008
2. Alpha Bank & Trust, Alpharetta October 24, 2008
3. Meridian Bank, Eldred October 10, 2008
4. Main Street Bank, Northville October 10, 2008
5. Washington Mutual Bank & Washington Mutual Bank FSB September 25, 2008
6. Ameribank September 18, 2008
7. Silver State Bank September 5, 2008
8. Integrity Bank August 29, 2008
9. The Columbian Bank and Trust August 22, 2008
10. First Priority Bank August 1, 2008
11. First Heritage Bank July 25, 2008
12. First National Bank of Nevada July 25, 2008
13. IndyMac Bank July 11, 2008
14. First Integrity Bank, NA May 30, 2008
15. ANB Financial, NA May 9, 2008
16. Hume Bank March 7, 2008
17. Douglass National Bank January 25, 2008
    

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Source:

1. Franklin Bank Taken Over, 18th Failure This Year.
2. Bank Watch & Failure List