The UK’s smallest building society, Century Building Society, looks set to disappear in a proposed merger with Scottish Building Society.
Subject to confirmation by the Financial Services Authority and ratification from members of Century, it will become part of the UK’s oldest building society on 1 February 2013.
Going forward, the enlarged organisation, which will combine Scottish’s £333m assets with Century’s £25m, will retain the Scottish Building Society name and will remain an independent, Scottish, mutual organisation.
It should see Scottish climb above Hanley Economic, Marsden and possibly Tipton & Coseley building societies, edging it closer to the largest 20 societies in the country.
Meanwhile, the Century office in Edinburgh will close, leaving City of Derry Building Society as the UK’s smallest, with assets of around £40m.
Scottish Building Society chairman Alexa Henderson said: “We are looking forward to finalising the terms of the merger and to welcoming the members of Century Building Society as members of the enlarged society in due course.
“The members of both societies will benefit from the financial strength of the combined society and the Scottish will continue to operate as it always has – a traditional building society, offering good value savings and mortgage products and excellent customer service for the benefit of our members.”
Max Gaunt, Chairman of Century, added: “ As both societies’ head offices are in Edinburgh, the Scottish are the obvious merger partner, thereby ensuring that the Century’s members are able to continue to benefit from membership of an independent, Scottish, mutual building society.
“The directors of Century Building Society strongly encourage the Society’s members to vote in favour of the merger.”
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