UPDATE 1-Franklin Bank received propsals for unit

(Adds information about company, quotes from statement)

NEW YORK, Nov 2 (Reuters) - Texas-based community bank Franklin Bank Corp FBTX.O said on Sunday it had received proposals from parties to strengthen the capital position of its subsidiary Franklin Bank SSB.

It is in talks with parties about the terms and timing of a potential transaction which would restore Franklin Bank SSB, for regulatory purposes, to being well-capitalized, it said.

"Consummation of any one of the proposals would restore the Bank's capital category, for regulatory purposes, to the well capitalized category," it said.

Franklin Bank was founded in 2001 to create a Texas-based community bank concentrated outside the major metropolitan areas, according to its Web site. It bought Franklin Bank S.S.B., in Austin, Texas, in April 2002. (Reporting by Megan Davies, editing by Richard Chang)