As Prosperity Bancshares Inc. in Houston was rolling up small Texas banks in recent years, it often bumped up against Franklin Bank Corp., another acquisitive company in its hometown that on several occasions frustrated Prosperity by outbidding it.

It turns out that losing out to Franklin was not such a bad thing for Prosperity. When Franklin's $5.1 billion-asset thrift failed last week, Prosperity won the bidding for its 46 branches — at a cost far below what it might have once paid.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.