Shepshed Building Society joins with The Nottingham
The Nottingham and Shepshed building societies will merge in July 2013, with Shepshed’s three branches being rebranded under The Nottingham name.
Shepshed Building Society, which has branches in Shepshed and Loughborough, Leicestershire; and Ruddington, Nottinghamshire, has struggled to grow in the face of economic downturn and increased competition, prompting it to seek a merger.
It has assets of around £93 million and 7,000 customers, compared with the Nottingham’s much larger assets of £2.4 billion and 200,000 members.
Members of Shepshed Building Society will not receive a windfall as a result of the merger.
The building society’s directors will resign when the merger takes place, but no jobs will be lost and the three branches will remain open for at least three years under the terms of the deal.
The Shepshed’s mortgage borrowers and savers will remain on the same rates and will be able to use all of the Nottingham’s branches.
David Marlow, chief executive of Nottingham Building Society, said: “The board of Shepshed believe its members’ interests will be best served by being part of a larger society.
“We are looking to forward to giving their members access to our full range of products and services.”
While the Shepshed’s members will miss out on a windfall, members of Barnsley Building Society look set to receive an unexpected bonus.
The Barnsley merged with Yorkshire Building Society during the financial crisis, after it believed it had lost £10m deposited with two failed Icelandic banks .
Under the Yorkshire banner, it has now recovered £8.8 million in total from Kaupthing Singer & Friedlander and Heritable Bank and is returning money to savers as it promised to do at the time of the merger.
The Barnsley’s savers will receive 3.31 per cent of the savings they had with the building society on October 21 2008, up to a maximum of £5,000, while borrowers will receive a flat payment of £250.
“The Yorkshire made a commitment at the time of the merger to pursue recovery of these investments and, if successful, consider an ex-gratia payment from the proceeds to eligible Barnsley Building Society members,” the building society said.
“The Yorkshire is confident that £8.8m is the largest possible amount it could reasonably expect to be recovered from the investments.”