"The combination will create a leading specialist lender that we believe will benefit from enhanced scale, product offerings and a robust and diversified funding platform."
The Boards of OneSavings Bank and Charter Court Financial Services have reached agreement on the terms of their merger.
Following completion, OSB shareholders will own approximately 55% and Charter Court shareholders 45% of the new group.
In a statement today, the firms confirmed that Andy Golding and April Talintyre, currently CEO and CFO of OneSavings Bank, will retain their positions in the Combined Group.
Malcolm Williamson, chairman of Charter Court, will become chairman of the new Group and OneSavings Bank's chairman, David Weymouth, will become deputy chairman.
Four non-executive directors of Charter Court will join the six current non-executive directors on the OSB Board, with Noël Harwerth joining as senior independent director.
Ian Lonergan, currently CEO of Charter Court, will assume the role of integration director of the Combined Group for up to 18 months to bring together OSB's and Charter Court's capabilities.
Sebastien Maloney, currently CFO of Charter Court, will be retained as an adviser to the Combined Group for up to 12 months to facilitate integration.
David Weymouth, chairman of OSB, said: "I am very pleased that we are today announcing the combination of OSB and Charter Court, two businesses that have demonstrated remarkable growth and returns in the specialist lending market segment over the last decade. The combination will create a leading specialist lender that we believe will benefit from enhanced scale, product offerings and a robust and diversified funding platform.
"Both businesses bring complementary strengths which we fully expect will position the combined business to continue to deliver for its customers and shareholders. The OSB Board and management team have built a strong, customer-focused approach that we believe can develop from strength to strength through the combination with Charter Court and continue to grow the businesses within the fragmented specialist lending segment."
Malcolm Williamson, chairman of Charter Court, commented: "I am delighted that we are announcing the combination of OSB and Charter Court. The strategic fit of the two banks is compelling and will bring together complementary strengths and capabilities to enhance our customer proposition and create a leading specialist lender that is very well positioned to deliver sustainable returns and take advantage of future growth opportunities.
"Since Charter Court's foundation in 2008, the Charter Court management team has achieved a tremendous amount in building Charter Court into one of the UK's leading specialist banks. To now be bringing together the complementary strengths of Charter Court and OSB is a great opportunity and excellent base from which to continue a growth strategy. I am honoured to be asked and look forward to being chairman of the Board of the Combined Group."