Safe and Sound

CARTER

SPRINGHILL, LA
3
Star Rating
CARTER is a SPRINGHILL, LA-based, NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having assets of $278.4 million, as of December 31, 2017.

Members have $229.8 million on deposit tended by 87 full-time employees. With that footprint, the credit union has amassed loans and leases worth $229.8 million. Its 25,298 members currently have $176.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CARTER exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial strength, capital is important. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, CARTER received a score of 4 out of a possible 30 points, falling short of the national average of 15.65.

CARTER had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these kinds of assets may eventually be required to use capital to cover losses, shrinking 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

CARTER scored 32 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, CARTER scored 18 out of a possible 30, beating the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 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.