Members of the $1.3 billion Constitution Corporate FCU now own a $2.4 million deficit that's guaranteed by the National Credit Union Share Insurance Fund.

Fortunes have changed drastically in the past 9 months for the Wallingford, Conn.-based Constitution, which had $67 million in member capital shares as of Dec. 30, 2008. Roughly $18.5 million in MCS remained as of Aug. 31. Net loss as of Sept. 30 year-to-date is $77.4 million, a $15 million increase from August's $62.5 million YTD net loss.

NCUA spokesman John McKechnie said he can't discuss "specific supervisory matters," but he did acknowledge the regulator is "closely supervising the institution."

"There are potential cost implications whenever any credit union has a negative capital position," he said. "The NCUA's supervision approach is to pursue a long-term least cost resolution strategy. This can include allowing an institution to continue operations if it makes economic sense to do so."

Constitution issued a statement that said it will continue to provide uninterrupted service to members, including the payment of all dividends on deposits.

"Constitution's board of directors and management remain in place and are committed to improving the profitability of the corporate. We continue to operate under tight cost controls and work in close contact with the regulators," the statement said.