With the closure of two more banks -- Security Pacific Bank, California and Franklin Bank, SSB, Texas on Friday, the number of federally insured banks that have failed thus far this year, has reached 19.
The California Department of Financial Institutions closed Security Pacific Bank, which had total assets of $561.1 million and total deposits of $450.1 million on Friday and named the Federal Deposit Insurance Corporation, or FDIC receiver.
The FDIC, which insures bank deposits in the U.S., said that Pacific Western Bank would assume all deposits of Security Pacific for a premium of 2%. In addition to assuming all of the failed bank's deposits, Pacific Western will purchase approximately $51.8 million of assets, while the FDIC will retain the remaining assets for later disposition.
The four branches of Security Pacific will reopen on Monday as branches of Pacific Western. Depositors of the failed bank will automatically become depositors of Pacific Western.
Yet another bank to be closed the same day by the regulators was Franklin Bank, SSB, Texas. The Texas Department of Savings and Mortgage Lending closed Franklin Bank, which had total assets of $5.1 billion and total deposits of $3.7 billion and named the FDIC receiver.
Prosperity Bank, El Campo, Texas, a subsidiary of Prosperity Bancshares, Inc. (PRSP) would assume all deposits of Franklin Bank for a 1.7% premium. Franklin Bank's 46 offices will reopen as branches of Prosperity Bank.
Shares of Franklin Bank Corp. (FBTX), the parent company of Franklin Bank, S.S.B., took a pounding, losing 33.33% to close at $0.26 on Friday. In after-hours, the stock fell 80.77%, setting a new low of $0.05.
The bankruptcy filing of troubled investment bank Lehman Brothers Holdings Inc. on September 15, 2008, is the biggest in corporate history, in terms of assets held, dwarfing the earlier ones. Lehman Brothers had $639 billion of assets and $613 billion in debt at the time of filing.
Less than three weeks after it was seized by federal regulators due to a massive run on deposits, mortgage lender IndyMac Bancorp Inc. filed for Chapter 7 bankruptcy protection on July 31, 2008. IndyMac had $32.7 billion in assets and its liabilities ranged between $100 million and $500 million.
Washington Mutual Inc., also known as WaMu, the 119-year-old Seattle-based bank, filed for Chapter 11 bankruptcy on September 27. The company listed assets of $32.9 billion and debts of $8.2 billion at the time of filing.
According to the FDIC, only three U.S. banks failed in 2007, while not a single bank went bust in 2005 or 2006.
With 19 banks having failed thus far this year, it remains to be seen if the list is set to grow even more in coming days.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.