Safe and Sound

CARTER

SPRINGHILL, LA
4
Star Rating
Started in 1954, CARTER is an NCUA-insured credit union headquartered in SPRINGHILL, LA. Regulatory filings show the credit union having assets of $270.3 million, as of June 30, 2017.

Members have $220.0 million on deposit tended by 88 full-time employees. With that footprint, the credit union currently holds loans and leases worth $220.0 million. CARTER's 24,856 members currently have $182.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CARTER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

CARTER received a score of 4 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

CARTER appears to be weaker than its peers in this area, with a capitalization ratio of 7.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having lots of these kinds of assets suggests a credit union may have to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, CARTER scored 36 out of a possible 40 points, less than the national average of 38.15 points.

An above-average ratio of troubled assets of 12.00 percent in our test was a potential area of concern for CARTER.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

CARTER scored 20 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 12.00 percent in our test, higher than the average for all credit unions.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.