Franklin Completes Conversion To a Commercial Bank Charter
SOUTHFIELD, Mich. - Franklin Savings Bank said on Monday that it completed its conversion to a nationally chartered commercial bank from a federal savings bank.
Franklin, now Franklin Bank, became the first thrift in the nation to seek a bank conversion. It did so in September 1989, one month after enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Regulators approved the move after Franklin, which has about $400 million in assets, made commitments to increase capital.
Capital Notes Sale
In July 1990, Franklin sold $7 million of subordinated capital notes.
In December 1990, Franklin received conditional approval from the Office of the Comptroller of the Currency to convert to a commercial bank. This followed the approval by the Office of Thrift Supervision for Franklin to leave its jurisdiction. One condition was that Franklin to leave its jurisdiction. One condition was that Franklin raise core capital to 4% of assets and risk-based capital to 8% of assets before final approval of the conversion plan.
In July of this year, Franklin sold 920,000 shares of noncumulative convertible preferred stock at $10 a share. Franklin's core, tangible, and risk-based capital ratios of 5.12%, 5.12%, and 9.77% now exceed all current requirements.
As a commercial bank, Franklin said, it will expand its products and services, initially concentrating on commercial deposits. The bank also anticipates offering annuities through its branches and is considering trust services.