MERCO

Charter #64766 | CA

100M-500M (1077 CUs) Micro
63 100M-500M in CA

MERCO has 6 strengths but faces 9 concerns

Key Strengths

Areas where this CU excels compared to peers

  • + Emerging Performer: Top 0.3% in tier
  • + Organic Growth Engine: Top 6.4% in tier
  • + ROA 1.60% above tier average
  • + Net Interest Margin 1.48% above tier average
  • + Fee Income Per Member: Top 1.6% in tier
  • + Efficiency Ratio: Top 2.5% in tier

Key Concerns

Areas that may need attention

  • - Shrinking Wallet Share: Bottom 4.6% in tier
  • - Indirect Auto Dependency: Bottom 7.0% in tier
  • - Credit Quality Pressure: Bottom 14.0% in tier
  • - Liquidity Overhang: Bottom 27.7% in tier
  • - Delinquency rate 0.64% above tier average
  • - Indirect Auto Concentration (%): Bottom 0.9% in tier
  • - Net Charge-Off Rate: Bottom 1.3% in tier
  • - AMR Growth Rate: Bottom 3.4% in tier
  • - Loan Growth Rate: Bottom 6.1% in tier

Core Metrics

As of 2025-Q3

Metric Current vs Tier Tier Avg State Avg (CA) National Avg Tier Percentile
Members 15,883
+3.6% YoY+1.4% QoQ
 +254 15,628
-3.4% YoY
 59,606
+5.7% YoY
 33,089
+6.1% YoY
 60th in tier
Assets $202.9M
+3.9% YoY-1.7% QoQ
 $-28.4M $231.3M
-0.0% YoY
 $1.2B
+6.2% YoY
 $547.7M
+7.8% YoY
 51st in tier
Loans $125.1M
-7.9% YoY-1.6% QoQ
 $-22.7M $147.8M
-1.4% YoY
 $845.5M
+7.1% YoY
 $388.7M
+8.6% YoY
 50th in tier
Deposits $175.7M
+1.4% YoY-2.3% QoQ
 $-24.6M $200.3M
-0.0% YoY
 $1.0B
+8.8% YoY
 $464.6M
+9.3% YoY
 51st in tier
ROA 2.4%
+568.0% YoY-26.6% QoQ
 +1.6% 0.8%
+15.5% YoY
 0.6%
+30.0% YoY
 0.7%
+273.4% YoY
 Top 1.2% in tier
NIM 5.1%
+7.1% YoY+3.2% QoQ
 +1.5% 3.6%
+6.9% YoY
 3.3%
+6.5% YoY
 3.7%
+5.0% YoY
 Top 2.2% in tier
Efficiency Ratio 50.5%
-22.1% YoY+11.6% QoQ
 -26.8% 77.3%
-3.0% YoY
 79.3%
-6.2% YoY
 79.1%
-3.3% YoY
 Bottom 2.5% in tier
Delinquency Rate 1.5%
+16.3% YoY+7.5% QoQ
 +0.6 0.9%
+7.6% YoY
 0.7%
-38.7% YoY
 1.2%
-0.9% YoY
 Top 14.5% in tier
Loan To Share 71.2%
-9.2% YoY+0.7% QoQ
 -1.5% 72.7%
-1.5% YoY
 68.8%
-1.5% YoY
 68.0%
-1.7% YoY
 43rd in tier
AMR $18,941
-6.1% YoY-3.4% QoQ
 $-5K $24,363
+2.9% YoY
 $28,514
+2.8% YoY
 $19,418
+1.3% YoY
 29th in tier
CD Concentration 20.0%
-9.1% YoY-14.8% QoQ
 -4.5% 24.4%
+4.2% YoY
 21.7%
+4.2% YoY
 19.6%
+6.2% YoY
 50th in tier
Indirect Auto % 71.7%
-2.0% YoY-0.7% QoQ
 +57.7% 14.0%
-5.8% YoY
 9.5%
-6.9% YoY
 7.9%
-2.9% YoY
 50th in tier

Signature Analysis

Strengths (2)

Emerging Performer

growth
#7 of 627 • Top 0.3% in tier

Profitable credit union with positive returns. May represent growth potential worth exploring.

Why This Signature
Return on Assets: 2.39%
(Tier: 0.77%, National: 0.71%)
better than tier avg
Member Growth (YoY): 3.62%
(Tier: 0.88%, National: 9.37%)
better than tier avg
627 of 1077 Community CUs have this signature | 852 nationally
↑ Growing +13 CUs YoY | Rank improving

Organic Growth Engine

growth
#118 of 603 • Top 6.4% in tier

Growing membership while maintaining profitability. Healthy fundamentals in place.

Why This Signature
Member Growth (YoY): 3.62%
(Tier: 0.88%, National: 9.37%)
better than tier avg
Return on Assets: 2.39%
(Tier: 0.77%, National: 0.71%)
better than tier avg
Indirect Auto %: 71.65%
(Tier: 13.96%, National: 7.90%)
but worse than tier avg
603 of 1077 Community CUs have this signature | 917 nationally
→ Stable (608→603 CUs) -5 CUs YoY | Rank improving

Concerns (4)

Shrinking Wallet Share

decline
#47 of 244 • Bottom 4.6% in tier

Average member relationship declining year-over-year. Members may be moving money elsewhere or reducing engagement.

Why This Signature
AMR Growth (YoY): -6.08%
(Tier: 3.68%, National: 4.19%)
worse than tier avg
244 of 1077 Community CUs have this signature | 346 nationally
↓ Shrinking -221 CUs YoY | New qualifier

Indirect Auto Dependency

risk
#114 of 525 • Bottom 7.0% in tier

Significant portion of loan portfolio in indirect auto (>15%). This concentration creates dependency on dealer relationships.

Why This Signature
Asset Growth (YoY): 3.90%
(Tier: 4.61%, National: 3.04%)
worse than tier avg
Indirect Auto %: 71.65%
(Tier: 13.96%, National: 7.90%)
worse than tier avg
Member Growth (YoY): 3.62%
(Tier: 0.88%, National: 9.37%)
but better than tier avg
525 of 1077 Community CUs have this signature | 768 nationally
↓ Shrinking -18 CUs YoY | Rank worsening

Credit Quality Pressure

risk
#346 of 736 • Bottom 14.0% in tier

Delinquencies are rising year-over-year. Credit risk is building - they may need better underwriting tools.

Why This Signature
Delinquency Change (YoY): 0.21% points
(Tier: 0.04% points, National: 0.07% points)
worse than tier avg
736 of 1077 Community CUs have this signature | 1002 nationally
↓ Shrinking -199 CUs YoY | Rank worsening

Liquidity Overhang

risk
#429 of 552 • Bottom 27.7% in tier

Very high net worth ratio (>12%). Strong capital position may indicate opportunity to deploy capital more productively.

Why This Signature
Net Worth Ratio: 12.32%
(Tier: 11.95%, National: 14.51%)
but better than tier avg
Loan-to-Share Ratio: 71.22%
(Tier: 74.56%, National: 67.96%)
worse than tier avg
552 of 1077 Community CUs have this signature | 691 nationally
↑ Growing +65 CUs YoY | New qualifier

Metric Rankings

See how this credit union ranks across all tracked metrics compared to peers.

Strengths: Metrics in the top 25% (75th percentile or higher) | Concerns: Metrics in the bottom 25% (25th percentile or lower)

Comparing against 1077 peers in tier

Top Strengths (7 metrics)

13
Return on Assets (ROA)
profitability
Value: 2.39%
Peer Avg: 0.79%
#13 of 1077 Top 1.1% in 100M-500M tier
18
Fee Income Per Member
profitability
Value: $405.37
Peer Avg: $174.31
#18 of 1077 Top 1.6% in 100M-500M tier
24
Net Interest Margin (NIM)
profitability
Value: 5.06%
Peer Avg: 3.58%
#24 of 1077 Top 2.1% in 100M-500M tier
28
Efficiency Ratio
profitability
Value: 50.51%
Peer Avg: 77.28%
#28 of 1077 Top 2.5% in 100M-500M tier
146
First Mortgage Concentration (%)
balance_sheet
Value: 10.78%
Peer Avg: 30.43%
#146 of 1077 Top 13.5% in 100M-500M tier
161
Member Growth Rate
growth
Value: 3.62%
Peer Avg: 0.72%
#161 of 1077 Top 14.9% in 100M-500M tier
243
Members Per Employee (MPE)
engagement
Value: 387.390
Peer Avg: 332.881
#243 of 1077 Top 22.5% in 100M-500M tier

Top Weaknesses (5 metrics)

1068
Indirect Auto Concentration (%)
balance_sheet
Value: 71.65%
Peer Avg: 13.34%
#1068 of 1077 Bottom 0.9% in 100M-500M tier
1064
Net Charge-Off Rate
risk
Value: 2.04%
Peer Avg: 0.47%
#1064 of 1077 Bottom 1.3% in 100M-500M tier
1041
AMR Growth Rate
growth
Value: -6.08%
Peer Avg: 3.64%
#1041 of 1077 Bottom 3.4% in 100M-500M tier
1012
Loan Growth Rate
growth
Value: -7.92%
Peer Avg: 3.45%
#1012 of 1077 Bottom 6.1% in 100M-500M tier
922
Total Delinquency Rate (60+ days)
risk
Value: 1.50%
Peer Avg: 0.86%
#922 of 1077 Bottom 14.5% in 100M-500M tier