Members of City of Derry Building Society are to be asked to approve the group’s merger with the Progressive Building Society.
The City of Derry’s Building Society on Carlisle Road.
It was announced yesterday the two groups were to merge which will see the combined company have in excess of 100,000 members.
Progressive is much the larger of the two – with assets in excess of £1.6 billion and around 100,000 members – and its name will be retained after the merger.
City of Derry has assets of £42.6 million and around 2,500 members.
No bonuses will be payable to members of either society arising from the merger and there will also be no compulsory redundancies.
However, the long-term future of a City of Derry presence on Foyleside is uncertain after the Progressive revealed a branch office would be retained in Derry for at least three years and a decision would be made on the “preferred location in due course.”
City of Derry is currently located in Carlisle Road on Derry’s cityside.
In a statement, the board of the City of Derry said it recognised its long-term future depended on investment in back-office systems and product ranges.
It added “the resources for this investment can only readily come from the economies of scale, organisational depth and financial strength associated with size.”
It said the merger would “enable the members of the City of Derry to join a strong, thriving regional building society, with similar objectives and values.”
The merger will need to be approved by City of Derry’s members and the Prudential Regulation Authority.
Darina Armstrong, the Progressive’s chief executive, said: “We are looking forward to finalising the terms of the merger and to welcoming the members of City of Derry 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.
“The Progressive 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.”
Ms Armstrong concluded: “A branch office will be retained in Londonderry for at least three years and a decision will be made on the preferred location in due course.”
The City of Derry Building Society was established in 1876. As a mutual organisation the Society is owned by its investing and borrowing members. The Society’s accounts are available to anyone resident in Northern Ireland although, in practice, most business originates from the Derry area.
The Society is a signatory to the Banking Code and is a member of the Building Societies Association.
It is authorised and regulated by the Financial Services Authority and participates in the Financial Services Compensation Scheme.
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