Florida, Georgia, Illinois home to America's most troubled banks

The number of U.S. banks holding less capital to cushion against losses than regulators require reached 116 in the second quarter -- more than triple than 30 that earned that dubious classification last year, according to a new study by research firm SNL Financial and TheStreet.com. The three most vulnerable states: Georgia, Florida, and Illinois. Already hit hard by bank failures, these three have more financial institutions on the brink than the other 47 states.

How strong a predictor of trouble is being "undercapitalized" (as the government puts it)? Of 89 undercapitalized banks documented at the end of March in a study, 35 have failed.