The Federal Deposit Insurance Corporation (FDIC) has revealed that more than a tenth of the USs 7,830 banks are at risk of closure in the second quarter of 2010.
The number of institutions on the FDICs Problem List rose 7 percent from 775 in the first three months of 2010 to 829 in the second quarter.
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Total assets at the problem banks fell from $431bn to $403bn during the quarter.
The number of bank failures in the US has already reached 118 this year, setting a much faster pace than the total 140 seized banks last year. The FDIC said for the first time in 38 years no new institutions were added during the quarter.
The number of FDIC-insured institutions reporting financial results fell by 104 in the second quarter, from 7,934 to 7,830. This is the first time in almost a decade that the number of reporting institutions has fallen by more than 100 in a single quarter (the number declined by 113 in the third quarter of 2000).
Lending by US banks remains subdued; net loans and lease balances declined by $95.7bn, or 1.3% and loan balances across all major loan categories fell during the quarter.
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By GlobalDataUS banks total assets slipped 1% to $136.2bn.
The banks second quarter combined net profit stood at $21.6bn, reversing the $4.4bn combined net loss in the second quarter of 2009. This is the highest quarterly earnings since the third quarter of 2007 when the global recession began to take hold.
66.5% of the banks reported higher year-on-year quarterly net income, but 20% still reported a net loss.
