Franklin Bank Corp. in Houston has named Alan E. Master, its president since May, as chief executive officer.
Founder and chairman Lewis S. Ranieri had been interim CEO since Anthony Nocella resigned in May as president and CEO after a 10-week probe uncovered problems in loan accounting. Mr. Ranieri will remain chairman of the $5.6 billion-asset company.
Mr. Master has been a director of the holding company and of Franklin Bank since 2002.
In a press release late Thursday, Mr. Ranieri said, "Alan's appointment permits me, as chairman, to devote my time to Franklin's continuing efforts to raise additional capital for use in the bank's operations."
Franklin has not said how much more capital it is seeking, but analysts have suggested this year that it could require more than $225 million to shore up its loan-loss reserves. The company's thrift unit, Franklin Bank, lost more than $137 million in the first two quarters, according to Federal Deposit Insurance Corp. data.
Franklin's shares have lost roughly 95% of their value in the last year and are now trading at about 60 cents.
