FDIC Problem Bank Watch List

The number of “Problem Banks” and financial institutions on the FDIC’s watch List rose to 829 at the end of the second quarter 2010, an increase of 54 from the end of the first quarter 2010, as bad loans in the commercial real-estate market weighed on bank balance sheets. The total assets of these problem banks decreased from $431.2 billion to $403.2 billion over the same period.

"Without question, the industry still faces challenges. But the banking sector is gaining strength. Earnings have grown, and most asset quality indicators are moving in the right direction," FDIC Chairman Sheila Bair said.

There were 702 on the FDIC's problem bank list at the end of 2009, up from 252 at the end of 2008.

FDIC officials expect the number of Bank Failures, to peak this year after climbing steadily over the past three years. Through August 2010, Federal and State Regulators have closed 118 banks.