Shepshed Building Society joins with The Nottingham

| September 13, 2015
Shepshed Building Society joins with The Nottingham

The Nottingham and Shepshed building societies will merge in July 2013, with Shepshed鈥檚 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 拢93 million and 7,000 customers, compared with the Nottingham鈥檚 much larger assets of 拢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鈥檚 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鈥檚 mortgage borrowers and savers will remain on the same rates and will be able to use all of the Nottingham鈥檚 branches.

David Marlow, chief executive of Nottingham Building Society, said: 鈥淭he board of Shepshed believe its members鈥 interests will be best served by being part of a larger society.

鈥淲e are looking to forward to giving their members access to our full range of products and services.鈥

While the Shepshed鈥檚 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 拢10m deposited with two failed Icelandic banks .

Under the Yorkshire banner, it has now recovered 拢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 拢5,000, while borrowers will receive a flat payment of 拢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 拢8.8m is the largest possible amount it could reasonably expect to be recovered from the investments.”

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