WASHINGTON, DC-A new report by the Treasury Department showswhat other earlier data has suggested: small banks are in trouble.This particular data point comes from a May report to Congress onthe status of TARP repayments. It found that 101 bailed-out banksthat participated in the program have missed paying the governmenta dividend. Nearly all of these banks are small institutions. That101 figure is a 25% increase from February.

On the whole, the program is doing well, according to thereport, which also said that the total amount repaid by banks tothe program has surpassed the amount of outstanding debt for thefirst time. In May, total repayments reached $194 billion, whilethe outstanding debt is $190 billion. There are some caveats tothis milestone, however. Namely, the outstanding debt amount doesnot include $106 billion that has been committed to institutionsbut has yet to be paid out. With that added to the final tally, theoutstanding debt becomes $296 billion.

The news about the small banks is especially disconcerting,though, coming on the heels of other indications that theseinstitutions--most of which are burdened with sour real estateloans--are not regaining their financial health as quickly as theirlarger counterparts.