The struggling building society was expected to reveal a loss of around £17m for the first six months of the year –– but the deal revealed on Monday means its customers will now form part of the biggest building society in the country.

A spokesman for The Derbyshire confirmed it would continue to run as a separate brand with the same products and services and stressed there were no plans for any branch closures.

Said The Derbyshire chief executive Graham Picken: "I am pleased that The Derbyshire has come to an agreement with Nationwide that assures the future for our savers and borrowers.

"The board recognised a number of financial uncertainties facing The Derbyshire, and has taken this prudent and pre-emptive action in seeking a solution to secure the interests of our members over the long-term.

"I have every confidence that The Derbyshire members will benefit from being part of the enlarged society."

Industry giant Nationwide has announced that it will also take over The Cheshire Building Society.