The number of troubled banks rose 36 percent in the second quarter, the Federal Deposit Insurance Corp.reported, as combined losses among banks insured by the agency totaled $3.7 billion.
By comparison, the banks covered by the FDIC had $4.8 billion in profits in the second quarter of 2008.
The FDIC said there were 416 banks on its "Problems List" in June, up from 305 at the end of March. Banks are typically put on the list for failing to maintain adequate capital levels, among other regulatory concerns.
So far this year, the agency has closed or taken over the operations of 81 banks, including 24 in the second quarter. As recent as last Friday, the FDIC shut down four banks, including Texas-based Guaranty Trust.
Provisions for loan losses by the FDIC-insured banks totaled $66.9 billion in the second quarter, up 32.8 percent from a year earlier. Nearly three out of 10 insured institutions reported a net loss for the quarter.
"Deteriorating loan quality is having the greatest impact on industry earnings as insured institutions continue to set aside reserves to cover loan losses," FDIC Chairman Sheila Bair said in a statement.
"Of all the major earnings components, the amount that insured institutions added to their reserves for loan losses was, by far, the largest drag on industry earnings compared to a year ago."
The FDIC earlier this year announced a special assessment to cover anticipated losses prompted by the collapse of the housing market. The agency said the surcharge had raised $5.5 billion. Nevertheless, the FDIC loss reserve fund declined to $10.4 billion from $13 billion in the first quarter.
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