Introduction to Merck Employees Credit Union

Merck Employees Credit Union officially got its credit union charter in the year 1936. The credit union falls under the category: manufacturing – all other. In terms of its lending activity, the credit union is mainly engaged in providing mortgages and lines of credit. These loans represent 77% of its total lending. Merck Employees Credit Union’s total assets are larger than 96% of credit unions in the United States. The National Credit Union Administration (NCUA) insures deposits at credit unions in addition to regulating and supervising them. The NCUA was formed by the U.S. Congress in 1970. The company has a total of 4 branches and employs a total of 26 employees.

Who Can Join?

To be eligible to join the credit union you must be an employee or former employee of Merck & Co., Inc., Schering Plough, Inc. or Organon. Family members of current or former Merck & Co., Inc., Schering Plough, Inc. or Organaon and family members of any existing member of the credit union are also eligible to join.

Overview of the Credit Union’s Assets and Liabilities

As previously indicated, the credit union currently has total assets of $2,395 million, which makes it larger than 96% of credit unions in the United States. Merck Employees Credit Union also has net loans outstanding to customers of $171 million and a deposit base of $2,125 million. In addition, the credit union has a loan to deposit ratio of 8%, which is lower than its peer group average of 74%. Generally speaking, a lower loan to deposit ratio is better as it implies that the credit union is funding more of its lending activities with deposits. Lastly, Merck Employees Credit Union’s loan portfolio mainly consists of mortgages and lines of credit and other real estate loans which represent 77% and 13% of its loan book and had outstanding balances of $132 million and $22 million, respectively.

Contact and Other Helpful Information

  • Main Office Address: 126 E Lincoln Ave, Rahway, NJ 07065-4607
  • Website:
  • Phone: (732) 594-3317
  • Charter Number: 1454
  • Charter Year: 1936
  • Employees: 26
  • Routing Number: 221278213
  • Membership: Merck Employees Credit Union has a membership base of 24,935 which is significantly larger than the average credit union operating in the state of New Jersey. The average credit union in the state has 6,674 members. Over the past three years, the credit union’s total base of members has declined by 1%.

Merck Employees Credit Union: Financial Overview

merck employees-balance-sheet-metrics

Detailed above is a chart showing the progression of four important balance sheet items over the past year for Merck Employees Credit Union. Assets and total loans for the credit union have increased by 12.3% and increased by 4.1%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has grown by 10.0%. Lastly, the credit union’s deposits have grown by 44.5%. The net worth of a credit union provides us with an idea of how the credit union has performed over the years. It is the total value that the credit union has created for its members since inception. Merck Employees Credit Union has a total net worth of $253 million. This implies that the credit union has a net worth per member of $10,137 which is greater than the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

merck employees-selected-performance-metrics

The chart above compares Merck Employees Credit Union’s performance on three metrics to credit unions in its peer group and also shows the credit union’s performance on each metric in the prior year. These are some of the important measures for a credit union’s performance that we look at. Starting with the company’s return on assets, on this metric Merck Employees Credit Union is below the average credit union in its peer set and over the past year ROA has improved with a total change of 0.04%. Return on assets tells us how productive a company is being with its asset base. We look at the delinquency rate within a loan portfolio as a way to assess the performance and quality of a credit union’s loan book. A lower delinquency rate indicates a better performing portfolio. Merck Employees Credit Union has a delinquency rate that is above its peer group average and when compared with the prior year, we can see that it has improved substantially. The net worth ratio for the credit union is 10.6% and has declined compared with the prior year figure of 11.4%. The credit union is also well above its peer group average of 9.8% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.


Overall, we believe Merck Employees Credit Union deserves a rating of 3.3 out of 5.0, which is above average. Finally, please note that the rating information presented is based on our proprietary scoring system. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.