Darlington Building Society's commitment to looking after local interests has helped it to record results.

The region's second largest mutual institution saw a rise in mortgage balances, total assets and reserves for the year ended December 31, 2000.

In the year, the Darlington lent 43 per cent more money than it did in 1999, a total of £88m to 1,825 borrowers, helping them to buy, refinance, or improve their homes.

Nearly 11,500 households arranged their mortgage finance through the Darlington. Total loan balances were £343m, a 15 per cent rise on the previous year.

The society also attracted more than £265m from savers and depositors, boosting savings accounts by five per cent to almost 106,000 people. Balances in those accounts grew by almost 15 per cent (14.5 per cent) to £412m.

The Darlington increased its share of regional savings and mortgage markets by 43 per cent during the year, with lending far exceeding the growth in national mortgage lending.

The growth in mortgage lending was even more remarkable because the society focuses its lending to the North-East, where consumer confidence in the housing market has remained subdued.

All this helped the Darlington to record a 24 per cent leap in pre-tax profits to £3.2m. Its reserves were boosted by a further seven per cent to £31m.

Peter Rowley, chief executive of the Darlington, said: "These excellent results demonstrate the benefits of belonging to a strong local institution like Darlington Building Society, which is able to focus its resources on the continuous development of the local region in which it operates."

He added: "Our policy of looking after local interests was well rewarded with a record number of people choosing to do business with us. While banks and converted societies continue to withdraw from our operating area, closing branches and making customer relationships more remote, our commitment to investing in new improved facilities was demonstrated by the relocation of our Redcar and Bishop Auckland branches, as well as the opening of a new branch in Catterick Garrison."

The society also opened an innovative new mortgage shop to provide mortgage and independent financial advice.

The society has also recently launched its latest mortgage sale, following the success of last year's campaign. And investors have not forgotten the society's highly rated TESSA only ISA and cash mini ISA accounts, which are again proving popular.

Mr Rowley said: "We plan to introduce a number of exciting new products and services during 2001 which will further demonstrate that mutuality works for both the individuals who comprise the membership and the institute which serves them.