Scotland’s smallest building society is set to be swallowed by the country’s oldest mutual after coming under pressure because of increased competition and the economic downturn.
Edinburgh-based Century Building Society, which was founded in 1899 and has around 3,500 members, also said regulatory burdens and the current low interest environment were behind its proposed merger with Scottish Building Society.
Subject to approval by Century’s members and the Financial Services Authority, the deal is expected to be completed in February and will see the Century name disappear and its sole office on Albany Street close.
Chief executive Norman Mackenzie said it was too early to say what impact the deal will have on the society’s six staff. He and his fellow directors will resign when the merger takes effect.
He said the burden of regulation was “just not sustainable for the society”, although it remained profitable.
Scottish Building Society chairman Alexa Henderson said: “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.”
Founded in 1848 as the Edinburgh Property Investment Company, the Scottish has more than 38,000 members and assets of £375 million. That compares with assets of £25m at Century.