Darlington building society has announced one of the most successful years in its 144-year history.

The society's chairman, Mr William Baker Baker, reported the good news to members at last week's annual meeting.

Speaking at the society's Sentinel House headquarters in Darlington, he said DBS offered more outlets in the County Durham, North Yorkshire and Tees valley areas than any other building society or mortgage bank during the year ended December 31, 2000.

"We succeeded in growing our strong local franchise, relocating existing representation, adding new ones and upgrading others," he said.

"We increased our range of products, diversified operations, developed new services, and, despite the continuing programme of investment in the people, products and processes that strengthen communities, we achieved excellent financial results for the permanent benefit of existing and future members."

Gross advances, total loans, gross receipts, the number of savings accounts, members' balances, assets and reserves all reached record levels.

"In all aspects it was an excellent year for the society," he said

Mr Baker Baker drew attention to an outstanding performance in mortgage lending in 2000.

He said the society's policy of charging borrowers a lower rate than many competitors had been well rewarded in 2000 when it lent a record amount of just under £88m - 43pc more than the previous year - to 1,825 borrowers.

More than 11,300 households now have a mortgage with DBS. Total loan balances of almost £343m ended the year more than 15pc higher than 12 months previously.

Another record was the £265m attracted from savers and depositors. At the year end, the society administered 106,000 savings accounts, and total balances held by members and depositors amounted to £412m, 14.5pc higher than the previous year.

Total assets grew by 14pc to more than over £445m, "a level of growth that is among the highest in the sector," according to Mr Baker Baker.

Over the last year DBS has moved its long-established branches in Redcar and Bishop Auckland to bigger sites; opened a new mortgage shop in Duke Street, Darlington, and a new branch at Catterick Garrison and developed its community branches.

Mr Baker Baker said: "We will continue this development policy and capitalise on any other providers' decisions to close or 'rationalise' branches, be they high street banks or building societies."

The meeting voted overwhelmingly to re-elect Mr Richard Dyke and elect Mrs Margaret Fay, managing director of Tyne Tees Television, as non-executive directors.

Tribute was paid to Sir R Colin Harrison who retired as a non-executive director after 24 years' service.

In conclusion, Mr Baker Baker said his report demonstrated the society's ability to thrive in an ever more competitive arena in which consumers' expectations continued to rise.

He added: "The board and senior management are obliged to consider the strategic options available as those expectations rise and the markets in which we operate evolve.

"As the society's performance has shown, the interests of our existing and future members are best served by the institution's mutual ownership. There is no long-term advantage in varying that status."