ALEXANDRIA, Va. -- Almost 20% of insured shares were in credit unions with a rating of CAMEL 3 or higher last year and the NCUSIF's equity ratio fell to 1.24% last month, NCUA Chief Financial Officer Mary Ann Woodson told the NCUA Board today.

She said that 13.6% of insured shares were in CAMEL 3 credit unions and there were 1,668 institutions last year, compared with 1,534 in 2008. In 2009, 5.8% of insured shares were in CAMEL 4 or 5 institutions and there were 351 such institutions last year, compared with 271 in 2008.

There were 28 failures of federally insured credit unions in 2009, compared with 18 in 2008.

Woodson said the equity ratio drop from 1.27% at the end of November to 1.24% was caused by the agency having to set aside more money for its reserve accounts to pay out when credit unions fail and because of the increased number of insured shares in credit unions.

The NCUSIF lost $68.3 million in December and its net income for 2009 was $191.2 million.

The NCUSIF's insurance loss expense for natural person credit unions was 78.4 million in December and $625.1 million in 2009.

NCUA Chairman Debbie Matz said she was "very concerned" about the increase in the CAMEL 3, 4, and 5 credit unions and that's why the agency has ordered examiners to be proactive in trying to work with credit unions to solve problems and wants them to "step up their administrative actions." She said she is especially concerned about losses from bad loans that were made because the credit union failed to do sufficient due diligence.