FDIC's Problem Banks List Balloons

The second-quarter provision "absorbed almost one-third (31.9%) of the industry's net operating revenue," the report says.

The number of institutions filing quarterly reports with the FDIC fell slightly to 8,451 from 8,494 in the second quarter. Still, approximately 98% of all FDIC-insured institutions met or exceeded the highest regulatory capital requirements as of the end of June.

Bair, when asked, wouldn't comment about trends seen during the first two months of the third quarter.

"We don't think this credit cycle has bottomed out yet," she noted. "The number of banks and assets on the troubled bank list will continue to go up."