Franklin Bank Corp. Submits Call Report for Second Quarter 2008

HOUSTON, July 31, 2008 (PRIME NEWSWIRE) -- On July 30, 2008, Franklin Bank, S.
S. B. (the "Bank"), a subsidiary of Franklin Bank Corp. (Nasdaq:FBTX)
(AMEX:FBK-P.LF) ("Franklin"), submitted to the Federal Deposit Insurance
Corporation (the "FDIC") a call report as of and for the six months ended June
30, 2008 (the "June Call Report"). According to the June Call Report, at June
30, 2008, the Bank was well capitalized.

The Bank is required to submit to the FDIC, on a quarterly basis, its
Consolidated Reports of Condition and Income, referred to herein as "call
reports." The Bank's call reports are prepared in accordance with instructions
issued by the Federal Financial Institutions Examination Council and include a
balance sheet, income statement, changes in equity capital and other supporting
schedules as of the end of the period covered by each call report. The publicly
available portions of the Bank's call reports are available on the FDIC's
website at http://www4.fdic.gov/call_tfr_rpts/.

The financial results reported in the Bank's call reports submitted to the FDIC
reflect the operations of the Bank only, and do not include holding company
operations of Franklin. In addition, financial information contained in the
Bank's call reports is unaudited and has not been reviewed by Franklin's
independent accountants. As previously reported, Franklin's filing of its annual
report on Form 10-K, including its audited financial statements, for the year
ended December 31, 2007 has been delayed. While the June Call Report reflects
the best information available as of the time of its submission, the information
in the June Call Report is subject to possible revision in connection with the
audit of Franklin's financial statements since the books and records of Franklin
for 2007 have not yet been closed. Accordingly, the information contained in the
June Call Report is subject to these and the other qualifications contained in
this press release.

Corporate Overview

Franklin Bank Corp., headquartered in Houston, Texas, was formed in April 2002.
Franklin's common stock initiated trading on Nasdaq in December 2003 under the
ticker symbol FBTX. In May 2006, Franklin raised additional capital through an
offering of Franklin's Series A Non-Cumulative Perpetual Preferred Stock that is
now trading on The American Stock Exchange ("AMEX") under the ticker symbol
FBK-P.LF.

Through 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. You are cautioned not to
place undue reliance on these forward-looking statements as a number of factors
could cause future results to differ materially from these statements.

Forward-looking statements may be influenced in particular by factors such as
fluctuations in interest rates and stock indices, the effects of competition in
the areas in which Franklin operates, and changes in economic, political,
regulatory and technological conditions, including continuation for a prolonged
period of current conditions in the housing, mortgage and credit markets. Other
specific risks related to Franklin include the following: the result of the
Bank's regulator examinations, the results of the final audit of Franklin's
financial statements for 2007; Franklin's ability to effectively implement the
recommendations of its Audit Committee arising out of the Audit Committee's
previously disclosed investigation; the actions of the Nasdaq and AMEX
concerning the continued listing of Franklin's securities for trading on such
exchanges, and the actions of other regulatory agencies which may be taken in
response to the Audit Committee's investigation and the findings thereof;
potential inability to successfully implement its growth business strategy; the
integration of businesses that may be acquired; Franklin's limited operating
history; the potential unavailability of external financing; reliance on
brokered deposits; the geographic concentration of its business, commercial real
estate and consumer loan portfolios, including a significant concentration in
California; the potential unavailability of single family loans for bulk
purchase; the portion of the single family loan portfolio that is less than one
year old; fraud and negligence by loan applicants and others with whom Franklin
does business; credit risk associated with smaller borrowers in its mortgage
banker finance operation; the effect of changes in the extensive regulatory
scheme to which Franklin or the Bank is subject; the possibility that allowance
for credit losses may be insufficient to cover actual losses; interruption in or
breach of the information systems; the potential inability to obtain the
third-party information services on which it relies; and environmental risks
associated with foreclosure on real estate properties. Franklin cautions that
the foregoing list is not exhaustive. Investors should carefully consider the
aforementioned factors as well as other uncertainties and events.

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CONTACT: Franklin Bank Corp.
Andy Black
(713) 339-8999