The 2022 NCUA rules allowed credit unions with at least $500 million in assets and new credit unions to issue subordinated debt. The NCUA had already allowed low-income designated credit unions to issue subordinated debt, regardless of their asset size.

Growth continued to slow this year. At the end of September, 157 credit unions held $3.9 billion in subordinated debt, up 4% from the $3.8 billion held by 146 credit unions a year earlier. Subordinated debt was 2.2% of assets on both dates.

The 10 credit unions with new offers so far this year contributed at least $62.2 million to balances in the nine months ending Sept. 30 and added another $58 million so far in the fourth quarter, based on filing dates. Six of them took on subordinated debt for the first time or at least from a zero balance in September 2023. The 10 credit unions were:

• Rize Federal Credit Union of Los Angeles ($1.2 billion in assets, 716,18 members), which sold $25 million in subordinated debt from its first date of sale to its Nov. 26 filing out of $25 million offered. It paid $500,000 in commissions. It held no subordinated debt as of Sept. 30.
• Blue Federal Credit Union of Cheyenne, Wyo. ($2.1 billion in assets, 142,339 members), which sold $10 million in subordinated debt from Oct. 29 to Nov. 18 out of $10 million offered. It paid $129,000 in commissions. It held $15 million in subordinated debt on Sept. 30, up from none a year earlier. The $15 million was from a sale Dec. 21, 2023 to Jan. 3, which like this fall’s offering, was assisted by legal counsel Luse Gorman of Washington, D.C.
• Alabama ONE Credit Union of Tuscaloosa ($1.3 billion in assets, 93,807 members), which sold $23 million in subordinated debt from Sept. 26 to Oct. 11 out of $25 million offered. It paid $575,000 in commissions. It held $26 million in subordinated debt on Sept. 30, up by $21 million from a year earlier.
• Innovations Federal Credit Union of Panama City, Fla. ($473.1 million in assets, 24,514 members), which sold $13 million in subordinated debt from Aug. 28 to Sept. 12 out of $13 million offered. It paid $260,000 in commissions. It held no subordinated debt as of Sept. 30.
• Quorum Federal Credit Union of Purchase, N.Y. ($1.1 billion in assets, 67,782 members), which sold $8 million in subordinated debt from July 24 to Aug. 14 out of $8 million offered. It paid $160,000 in commissions. It held $13.7 million in subordinated debt on Sept. 30, up by $7.8 million from a year earlier.
• Inspire Federal Credit Union of Newtown, Pa. ($356.5 million in assets, 16,313 members), which sold $9 million in subordinated debt from March 14 to July 18 out of $9 million offered. It paid $180,000 in commissions. It held $15.2 million in subordinated debt on Sept. 30, up by $8.6 million from a year earlier.
• AltaOne Federal Credit Union of Ridgecrest, Calif. ($932.3 million in assets, 57,848 members), which sold $9.5 million in subordinated debt from June 14 to July 1 out of $20 million offered. It paid $400,000 in commissions. It held $20 million in subordinated debt on Sept. 30, up from none a year earlier.
• Gesa Credit Union of Richland, Wash. ($5.6 billion in assets, 291,761 members), which sold $20 million in subordinated debt from May 29 to June 24 out of $20 million offered. It paid $400,000 in commissions. It held $20 million in subordinated debt on Sept. 30, up from none a year earlier.
• Orlando Federal Credit Union of Orlando, Fla. ($376.9 million in assets, 27,200 members), which sold $3 million in subordinated debt May 3-20 out of $3 million offered. It paid no commissions. It held $3 million in subordinated debt on Sept. 30, up from none a year earlier.
• SkyOne Federal Credit Union of Los Angeles, Calif. ($1 billion in assets, 62,677 members), which sold $2.8 million in subordinated debt from Jan. 30 to Feb. 14 out of $2.8 million offered. It paid $55,000 in commissions. It held $15 million in subordinated debt on Sept. 30, up by $10 million from a year earlier.