Citing deterioration in the housing and mortgage markets, Franklin Bank Corp., Houston, has announced a decision to increase its allowance for credit losses by approximately $20 million.Franklin said it expects credit costs for its commercial loan portfolio to range from $5.0 million to $7.5 million next year. The company said its total allowance for credit losses will grow from 0.42% to 0.91%, while the reserve for the builder finance portfolio will increase from 0.52% to 1.72% and the overall commercial loan reserve will rise from 0.61% to 1.33%. "Franklin's management believes that this effort to anticipate issues, rather than wait for them, should remove the perceived risk to our institution from both the builder finance and mortgage portfolios," the company said. Franklin Bank can be found on the Web at http://www.bankfranklin.com.
