HOUSTON, Aug. 8, 2008 (PRIME NEWSWIRE) -- The Board of Directors of Franklin Bank Corp. (Nasdaq:FBTX) (AMEX:FBK-P.LF) ("Franklin") has resolved not to declare or pay the dividend on Franklin's Series A Non-Cumulative Perpetual Preferred Stock (the "Preferred Stock") scheduled for September 15, 2008.
Dividends on the Preferred Stock are non-cumulative. To the extent that any dividends payable on the Preferred Stock are not declared and paid, in full or otherwise, such unpaid dividends do not cumulate and are not payable. Franklin has no obligation to declare dividends on the Preferred Stock or to pay interest or any sum in lieu of interest with respect to undeclared dividends. However, if Franklin fails to pay dividends on the Preferred Stock for six quarterly dividend periods (whether or not consecutive), the size of Franklin's board of directors will be increased by two and the holders of the Preferred Stock will have the right to vote to fill the two vacancies created thereby until Franklin pays dividends for four consecutive dividend periods.
Corporate Overview
Franklin Bank Corp., headquartered in Houston, Texas, was formed in April 2002. Franklin's common stock initiated trading on NASDAQ Stock Market ("Nasdaq") in December 2003 under the ticker symbol FBTX. In May 2006, Franklin raised additional capital through an offering of the Preferred Stock that is now trading on The American Stock Exchange ("AMEX") under the ticker symbol FBK-P.LF.
Through the Franklin Bank, S.S.B. (the "Bank"), Franklin offers a wide variety of commercial products that allows it to serve customers in communities, as well as on a national basis. The Bank focuses on providing high-quality personalized service through its "trusted financial advisors" and strives to meet all of the financial needs of its customers. In addition to various deposit and loan products, the Bank offers retail brokerage services. For more information, you can visit its website at http://www.bankfranklin.com. The Bank is FDIC insured and an equal housing lender.
The Franklin Bank logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3366
Forward Looking Statements
This announcement includes forward-looking statements. These forward-looking statements include comments with respect to the goals, objectives, expectations, strategies, and the results of Franklin's operations and business. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. Franklin does not undertake, and hereby disclaims, any duty to update these forward-looking statements even though the situation and circumstances may change in the future.
