2013

members review including2013 the summary financial statement for the year ended 31 March 2013 2013

serving the black country for over 150 years 1 20132013 2013 20132013 2013 contents

Welcome from the Chief Executive 3

Chairman’s Statement 4 - 5

Progress 6 - 7

Tradition 8 - 9

Mortgages 10

Savings 11

Community and branches 12 - 13

Summary Financial Statement 14 - 18

Directors seeking election or re-election 19 - 20

Remaining members of the Board 21

Corporate Governance & Director’s Remuneration Report 22 - 23

Making more of your membership 24

List of charges 25

Annual reminders 26

Registered Office: Dudley House, Stone Street, Dudley, West Midlands DY1 1NP. Telephone: 01384 231414. Fax: 01384 233250. Email: [email protected] Twitter: @DudleyBS

2 2013 2013 20132013 2013 welcome to your 2012/13 members review

First, it was a great honour to be invited to become the Chief Executive of Dudley Building Society and I am pleased to be able to report a successful year for the Dudley.

While economic conditions remain difficult, particularly in our West Midlands heartland, I am very confident that the Dudley can become the sort of organisation that the Board and I envisage. That will be highly member focused with a concentration on providing members with a safe place for their money. Across our product range Jeremy Wood, Chief Executive. we will offer good value in a clear and open way. I firmly believe in mutuality as a viable alternative to the shareholder owned business model. To succeed, however, mutuals must establish themselves as very easy to deal with.

I hope you will take a few moments to read your Members Review which will keep you informed of the progress being made at your Society. Details enclosed include a summary of the Dudley’s performance for the year ended 31 March 2013 and an update on our key areas of focus for the coming year.

You will hopefully have noticed our new logo being used for the first time here - I am sure you will agree it is a vibrant step forward for the Dudley Building Society brand. We have stayed faithful to our heritage but created a modern identity. This is symbolic of our plans to establish the Dudley as a progressive modern mutual.

Thank you for your valued support. Jeremy Wood, Chief Executive.

2013 3 2013 20132013 chairman’s statement

financial highlights Pre-tax profits £159,000 (2012: £19,000). Reserves £17.9m (2012: £17.7m). Management expenses net of other income ratio 1.10% (2012: 1.07%). Mortgage lending of £27.7m (2012: £27.3m). Anna East, Chairman.

In this, my first report to members, I am pleased to comment on an improvement in profitability which puts your Society in a strong position to reap the benefits of the many changes being implemented at the Dudley.

In the financial year we welcomed a new Chief Executive, Jeremy Wood, who has been working with the Board to agree plans for taking the Society forward. We are confident that the changes which will be introduced will bring considerable benefits to members.

The changes the Board believes are necessary will see a modernisation programme introduced to the Society. Investment in IT systems, some of our processes and in our people is essential to bring forward the changes that we feel are needed for the Society to be able to compete in a marketplace which is changing rapidly. Many of the changes will be seen during the coming year.

Economic conditions remain difficult. Whilst the Government’s Funding for Lending Scheme (FLS) has had an impact on the market in driving down both mortgage and savings’ rates, sustained growth in the mortgage market is yet to be seen. The West Midlands has been particularly badly impacted by the

4 2013 2013 20132013 2013 downturn that the UK as a whole has suffered. Arrears on mortgages have been falling and it remains important that we work closely with borrowers facing repayment difficulties to find the most appropriate solution.

Despite the challenging conditions, new mortgage lending of £27.7m was completed and we continue to offer mortgages to parts of the market that need a more specialised approach to underwriting. First-time buyers, shared ownership applicants and those wishing to self-build are amongst the borrowers regularly assessed and approved within the limits and guidelines laid down by the Board.

Our savers have felt the brunt of the downward movement in interest rates. Wherever possible, the Society holds rates for a period after closing accounts to new savers. Our ability to pay better rates is being frustrated by a combination of low rates in the market as a whole and bearing additional costs such as the Financial Services Compensation Scheme to whom we have now paid £300,000 over the last three years, and have provided a further £379,000 with regard to future anticipated payments as at 31 March 2013.

May I take this opportunity to thank our members for their support over the last year and, finally, special thanks to our employees who have continued to work exceptionally hard through a period of change.

The Board and I believe that the Society is very well placed to take advantage of the many opportunities that exist for independent regional building societies like the Dudley.

Anna East, Chairman.

23 May 2013

2013 5 2013 20132013 progress

Dudley Building Society is building for the future. The progress being made by the Dudley across all areas of the business has stepped up during the year and the development will continue during 2013 -14.

The key areas of focus for the Dudley are dominated by our commitment to improving the way we provide service to members and ensuring the facilities we offer are welcoming, modern and fit for purpose.

The Society is in the process of renewing its IT system with the implementation continuing through the coming year. The upgrade will not affect your dealings with us and the new system will be a platform from which we will develop greater capability for processing and managing your accounts, as well as flexibility in meeting your needs.

We have also begun to prepare for the introduction of the Mortgage Market Review (MMR) from April 2014. The purpose of MMR is to make the mortgage market work better for consumers - to ensure you are offered, and are able to take out, a mortgage you can afford.

In practice this means we have to introduce new internal processes but our priority is to ensure our mortgage service for existing and new members remains of the highest quality and unaffected in terms of service delivery. MMR will provide greater peace of mind for borrowers that our processes are meeting the requirements of the regulator.

The most evident changes we are set to introduce are updates to our visual identity and facilities.

We hope you have already noted that we have updated the Society logo to a more modern evolution of the brand which we believe reflects our values of blending the modern with the traditional. Our heritage is extremely important to us and therefore we have retained our symbolic castle, but with a modern touch. We hope you like it and we can’t wait to hear your feedback. We will be introducing the new identity over the coming months as we commence a branch refurbishment programme. Starting with Gornal Wood,

6 2013 2013 20132013 2013 our intention is to refresh your local branch to ensure the facilities you use are welcoming and inviting - inside and out. And don’t worry - the friendly welcome and attentive service you have come to expect from our staff will be present and correct, as always.

Examples of how our branch signage has changed over time.

The proposed designs for the new signage for our Gornal Wood branch.

2013 7 2013 20132013 tradition

While the Dudley is making considerable moves to improve and update our processes and facilities to position ourselves as a leading provider for the developing marketplace, the values which drive our philosophy - providing excellent service, being easy to deal with, being approachable and friendly, engaging with local communities, and providing straightforward products - will continue to be the bedrock of the Dudley.

We are proud of our mutual status and our history of providing mortgages and savings accounts to members both local and further afield. Our continued success owes much to the long term relationships we have developed with members and generations of members over the years.

A perfect example of such a relationship is Roger Hancox. This year Mr Hancox celebrated 50 years as a Dudley Building Society member and he continues to enjoy the qualities that make the Dudley different:

“I remember my first experience with Dudley Building Society – my dad opened a Fully Paid Share account for me at the Dudley branch. He opened it with £120, and that bought one share. That was in January 1963.

“Funnily enough we moved to Liverpool in August of that year but I kept my account with the Dudley and when we moved back to the Black Country I continued my account with the Dudley.

“I’ve got to know the staff over the years, Meg and Vanessa in particular, and I have always felt the service given by Dudley Building Society is second to none.”

8 2013 2013 20132013 2013 Roger Hancox celebrates 50 years as a Dudley Building Society member in 2013. Shown here with Dudley Building Society Head of Marketing, Matt Ward.

2013 9 2013 20132013 mortgages

We have refocused our energies on mortgage lending in the first months of 2013. After a period of consolidation we have made pleasing progress in both mainstream residential lending and niche markets in which the Society has always performed strongly.

The launch of our lowest ever fixed rate mortgage in this financial year and the lifting of previous geographical lending restrictions signals our intent to increase our share of the market. With our ongoing commitment to underwriting individual applications and continued high regard for the levels of service provided, we are confident that progress will continue.

Our strengths lie in our underwriting and ability to understand and process individual borrowers’ needs quickly. Add to that our professional and friendly approach and a range of products to meet current market requirements and you have a very attractive proposition.

We have expertise in Buy to Let, Shared Ownership, Shared Equity and Self-Build as well as standard residential lending. We intend to take part in the Funding for Lending Scheme and look forward to the challenge of making progress both locally and nationally in the coming year.

to find out more about our latest mortgage offers and rates please call into your local branch or visit www.dudleybuildingsociety.co.uk.

10 2013 2013 20132013 2013 savings

The Dudley continues to focus on providing savings accounts which are transparent, safe and offer long-term value. Market conditions have seen interest rates fall in recent months due to the impact of the Funding for Lending Scheme and while we were loathe to reduce our savings rates - a move the Dudley has never previously undertaken - we eventually had to take steps to ensure we did not remain out of line with offerings across the market.

Samantha Ward, savings manager says: “We understand the frustrations savers continue to experience. Our focus is to continue providing savings accounts which offer competitive long-term value, with no short-term incentives which might mislead.

“A number of new savings accounts have been introduced during the year and we will continue to monitor market conditions and listen to members’ needs with the aim of designing accounts which offer variety, value and peace of mind.”

updating your passbook

If deposits have been made to your account, without your passbook being present, your passbook may not reflect all deposits or interest that may have been added. Your records are fully up to date on our systems but to ensure your passbook has all activity included, you need to provide it to us to update. You can do this by visiting your local branch or agent or alternatively post it to us. We will update it and return it to you.

to find out more about our latest savings offers and rates please call into your local branch or visit www.dudleybuildingsociety.co.uk.

2013 11 2013 20132013 community and branches

Community support during the year has seen the Society lend a helping hand to a range of good causes and activities. These have ranged from dance and cheerleading groups to local Jazz festivals, young golf prodigies and a 1980s staff fancy dress day for Comic Relief.

As members your savings have again helped raise a donation for Mary Stevens Hospice in Stourbridge, via our Save and Sponsor account.

Society staff have been busy too giving their own time for good causes, including Finance Manager, Nikki who again took on the 26.2 mile Moon Walk in London and Branch Manager Angie who helped to arrange a charity football match raising funds for Promise Dreams and The Steve Bull Foundation. we have also supported: Breast Cancer Awareness

Cancer Research

Comic Relief

Dudley Building Society Bowls League

Dudley Heathens Speedway

Dudley Kingswinford RFC

Dudley & North Worcestershire Cricket Development

Dudley & Stourbridge Harriers

Dudley Town FC

Glasshouse College

Gornal Athletic FC

12 2013 2013 20132013 2013 Gornal Colts

Grace Doody The Society has supported Grace in her efforts to become a top golfer. She studies at the Lee Westwood Golf School and has improved her handicap from 36 to 8 in two years.

Hagley Jazz Festival

Quarry Bank Operatic Society

Sedgley Flower & Vegetable Show

Sedgley Scorpions

Sharon Ann School of Dance Grace Doody. The Steve Bull Foundation

As you have seen on page seven, your local branch network is being rebranded and refurbished starting from July 2013. We plan to then update the Head Office in Dudley before moving on to other branches and then agents.

Maintaining a modern branch network remains central to the Society’s strategy of providing convenient retail outlets serving local communities and we are mindful that we must be able to adapt to meet the developing needs of the membership and prospective members.

Our goal is to ensure all branches provide you with the best possible customer experience - our staff will guarantee the warmest welcome and excellent service - but the physical environment, in terms of location, layout, size and convenience must be the best it can. We will continue to evolve and be flexible to make sure your branch and agency network is efficient and fit for purpose.

2013 13 2013 20132013 summary financial statement for the year ended 31 march 2013

This Financial Statement is a summary of information in the audited Annual Accounts, Directors’ Report and Annual Business Statement, all of which will be available to members and depositors free of charge, on demand at every office of Dudley Building Society from 28 June 2013.

Approved by the Board of Directors on 23 May 2013 and signed on its behalf by:

Mrs. A. East D.J. Milner J.R. Wood Chairman Deputy Chairman Chief Executive summary directors’ report incorporating business review financial performance We experienced a solid improvement in profitability last year but the results fall short of what is required to sustain the Society in the longer term. In reviewing and managing our mortgage book it has been necessary to make further provision for future losses. Our pre-provision profit, at £1.1m, is healthy and will hold us in good stead in future years. After the provision charge, profitability rose by 836% to £159k.

Management expenses were higher than anticipated with a number of one-off costs incurred. These will continue into next year as the Society embarks upon some of the changes necessary to position it as one the best in its peer group. During 2013 and 2014 new IT systems will be implemented. We will also undertake a review of internal processes to improve efficiency.

The Society’s capital position is strong. At the end of the year gross capital as a percentage of shares and deposits amounted to 5.95% (2012 5.88%).

Holdings of liquid assets, that is those held in case of need, reduced slightly through the year and we expect these holdings to reduce further during 2013-14. savings The market experienced a dramatic change during 2012. Rates had remained relatively stable until the late summer when the impact of the Government’s Funding for Lending Scheme (FLS) began to drive rates lower. Whilst FLS has been introduced to stimulate the mortgage market, as mortgage rates have fallen so have savings’ rates.

We intentionally held off reducing our rates for as long as we could but ultimately we could not keep rates materially higher than our competitors. Unfortunately rates across the market have continued to fall and our savers have been impacted.

14 2013 2013 20132013 2013 During the year a number of replacement products were launched which have catered for market requirements and helped maintain funding at the required levels. mortgages After several years of advances being well below the historical norm, new lending volumes have started to increase and new mortgage loans of £27.7m were advanced leading to a net growth in mortgage balances of £1.9m after redemptions and repayments.

The Society actively lends in a number of target sectors of the mortgage market. These include normal lending for house purchase and remortgage and supporting shared ownership. Buy-to-Let has seen increasing demand in the recent past and we saw a modest uplift in lending to this market. We are keen to support first-time buyers and others such as self-builders who use unconventional methods to enter the property market.

It is important that all of our new lending is underwritten using the highest standards. We continue to assess each loan individually rather than rely on scoring to determine acceptability. During the year we reviewed all lending policies and to ensure that new lending criteria meets the high thresholds set by the Board.

To ensure that we can achieve future lending ambitions we lifted some of the geographic restrictions we had imposed on ourselves. This means that we are no longer limited to lending only in the West Midlands.

We welcomed the Government’s announcement to support would-be borrowers with a guaranteed loan top-up through the Help-to-Buy scheme. We are currently working with the main industry bodies to promote the scheme. risk and regulatory In order to respond to the many new regulations introduced, we have added to our Compliance and Risk Management capabilities. Additional controls were also implemented to ensure all regulatory requirements are fully met. community We are very proud to support the communities within which we operate. Community support takes a number of forms and your Society has contributed to a diverse range of local causes during the year. Donations and sponsorship of more than £15k were made to the community and various charities, including our annual donation to Mary Stevens Hospice from money saved by members into the Save and Sponsor affinity account. Our staff have once again given their time to raise money for charities with whom they have a connection, including the Moon Walk, Race for Life and Breast Cancer Awareness.

2013 15 2013 20132013 summary financial statement for the year ended 31 march 2013 (continued)

results for the year 2013 2012 £ 000s £ 000s net interest receivable 4,612 4,583 other income and charges 183 215 administrative expenses (3,697) (3,623) provisions (714) (1,054) operating profit for the year before FSCS levy 384 121 FSCS levy (225) (102) profit for the year before taxation 159 19 taxation (41) (7) profit for the year 118 12 financial position at the end of the year 2013 2012 assets £ 000s £ 000s liquid assets 78,395 81,409 mortgages 239,813 237,798 fixed and other assets 1,121 1,402 total assets 319,329 320,609 liabilities shares 296,411 292,825 borrowings 3,671 8,836 other liabilities 1,383 1,202 reserves 17,864 17,746 total liabilities 319,329 320,609 summary of key financial ratios 2013 2012 % % gross capital as a percentage of shares and borrowings 5.95 5.88 liquid assets as a percentage of shares and borrowings 26.12 26.99 profit for the year as a percentage of mean total assets 0.04 0.01 management expenses as a percentage of mean total assets 1.16 1.14

16 2013 2013 20132013 2013 summary financial statement – summary of key financial ratios (continued)

Gross capital comprises general reserves. The gross capital ratio gives an indication of the extent to which the Society is funded by retained earnings, compared with shares and other borrowings. Gross capital provides a financial buffer against any losses which might arise from the Society’s activities and therefore protects investors.

Liquid assets as a percentage of shares and borrowings is a measure of the proportion of a Society’s borrowings that are either in the form of cash or readily convertible into cash. Liquid assets enable the Society to fund withdrawals by members, to make new mortgage loans to borrowers and to fund its general business activities.

Profit for the year as a percentage of mean total assets can be considered as equivalent to a company‘s “return on assets”. The Society needs to make a reasonable level of profit each year in order to maintain a strong gross capital ratio thereby protecting investors’ funds.

Management expenses are calculated as a percentage of mean total assets. Expenses need to be controlled in order for the Society to operate efficiently while providing services that members require. independent auditor’s statement to the members and depositors of dudley building society

We have examined the summary financial statement of Dudley Building Society for the year ended 31 March 2013 set out on pages 14 to 18.

This auditor’s statement is made solely to the Society’s members, as a body, and to the Society’s depositors, as a body, in accordance with section 76 of the Building Societies Act 1986. Our work has been undertaken so that we might state to the Society’s members and depositors those matters we are required to state to them in such a statement and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Society and the Society’s members as a body and the Society’s depositors as a body, for our work, for this statement, or for the opinions we have formed. respective responsibilities of directors and auditor

The directors are responsible for preparing the summary financial statement within the Members Review 2013, in accordance with applicable United Kingdom law.

Our responsibility is to report to you our opinion on the consistency of the summary financial statement within the Members Review 2013 with the full annual accounts, Annual Business Statement and Directors’

2013 17 2013 20132013 Report and its conformity with the relevant requirements of section 76 of the Building Societies Act 1986 and regulations made under it.

We also read the other information contained in the Members Review 2013 and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summary financial statement. basis of opinion

We conducted our work in accordance with Bulletin 2008/3 The auditor’s statement on the summary financial statement in the United Kingdom issued by the Auditing Practices Board. Our report on the Society’s full annual accounts describes the basis of our opinions on those annual accounts, the Annual Business Statement and Directors’ Report. opinion on summary financial statement

In our opinion the summary financial statement is consistent with the full annual accounts, the Annual Business Statement and Directors’ Report of Dudley Building Society for the year ended 31 March 2013 and conforms with the applicable requirements of section 76 of the Building Societies Act 1986 and regulations made under it.

Kieren Cooper for and on behalf of KPMG Audit Plc, Statutory Auditor Chartered Accountants

One Snowhill Snow Hill Queensway Birmingham B4 6GH 23 May 2013

18 2013 2013 20132013 2013 directors seeking election or re-election:

Paul Doona B.A. (Hons) FCA Paul, a chartered accountant, was Finance Director and Company Secretary of St Modwen Properties Plc from 1985 to 1999, managing the flotation and restructure of the company. After two years as Finance Director and then Chief Executive of Claims Direct Plc, Paul undertook a number of chief executive and finance director roles in the gaming sector, and held non- executive roles in leisure, property, asset management and natural resources businesses.

Committees: Assets and Liabilities, Audit and Compliance, Nominations and Risk.

Paul Doona.

Jeremy Wood ACIB Jeremy took up his appointment as Chief Executive in June last year and stands for election for the first time. He has spent over thirty years in financial services, initially with NatWest Bank and then with Nationwide Building Society where he became a Divisional Director. Latterly he was the interim Chief Executive at OneSavings Bank, which took over the former Kent Reliance Building Society. Despite many years spent away from the Midlands, Jeremy is from the Black Country and firmly committed to seeing local building societies prosper in their communities. He is an Associate of the Chartered Institute of Bankers.

Committees: Assets and Liabilities (Chair) and Lending.

Jeremy Wood.

2013 19 2013 20132013 David Gamble CFCIPD, ACIB, FCMI David Gamble is a Chartered Fellow of the Chartered Institute of Personnel and Development, an Associate of the Chartered Institute of Banking and a Fellow of the Chartered Management Institute. He was appointed to the Board in January 2007. He is currently a Director of Conker HR Limited and Conker Training Ltd, companies which specialise in the provision of HR and training services. He is also a trustee and non-executive director of a care charity, The Family Care Trust.

Committees: Remuneration (Chair), Lending, Nomination and Risk.

David Gamble.

Anna East B.A. (Hons) (Law) Anna East was Head of Legal and Company Secretary of Britannic Group plc and Halfords Group plc where she specialised in property and company law, corporate governance and regulation. She became Society Chairman on 19 July 2012 having previously Chaired the Audit Committee. She is on Vice Chair of Heart of England NHS Foundation Trust , and a non executive director of Midland Heart Housing Association and Entrust. She is also Vice Chair of Dowells Trust and a Governor of the King Edward’s Foundation in Birmingham.

Committees: Risk (Chair), Nominations (Chair), Assets and Liabilities, Lending and Remuneration.

Anna East.

20 2013 2013 20132013 2013 remaining members of the board: Rupert Anton, M.B.A., M.A.(Hons) Rupert Anton is Managing Director of Sapiens Communications. He was appointed to the Board in November 2001 and brings with him his extensive experience in marketing communications. Committees: Lending, Risk and Nomination. Nigel Bland, B.Soc. Sc., FCA Appointed Finance Director in July 2000, Nigel joined the Society in 1994. Previously he was employed in the Accounting profession, specialising in Compliance and Technical matters. He qualified as a Chartered Accountant in 1985, after gaining his degree at Birmingham University, and is principally responsible for the Finance, Risk, IT and Treasury areas within the Society. Committees: Lending (Chair) and Assets and Liabilities. David Milner, FCIB David Milner was appointed to the Board on 1 January 2009 and is a Fellow of the Chartered Institute of Bankers. He has spent over 30 years working in the financial services industry and has held executive or non executive positions with money brokers, corporate financiers, insurance brokers, housing associations and building societies. Committees: Audit and Compliance (Chair), Assets and Liabilities, Remuneration, Risk and Nomination. Kevin Langley Kevin Langley joined the Society’s Board as a Mortgage Specialist after a 2 year spell as a Consultant. Previously his career of 30 years was spent in the mortgage sector, both with Alliance & Leicester and with the Lloyds Banking Group where he was Head of Customer Operations at Cheltenham and Gloucester Plc for 5 years. Committees: Audit and Compliance, Lending, Risk and Nomination.

Rear: Kevin Langley, Nigel Bland, Rupert Anton, David Gamble & Paul Doona. Front: Jeremy Wood, Anna East & David Milner. 2013 21 2013 20132013 corporate governance report and director’s remuneration report

The Board is required to have regard to the UK Corporate Governance Code issued by the Financial Reporting Council when developing its governance policies and practices.

The Board agrees with and supports the principles of the Code and whilst the Society does not have to comply with them, as it is not a listed company, where it does not do so an explanation is given.

A full description of the Board’s policies on Corporate Governance is provided in the full Accounts of Dudley Building Society, which are available to all members on request.

The Society’s remuneration policy is to reward Directors according to their expertise, experience and overall contribution to the successful performance of the business. The Executive Directors’ benefit package is designed to motivate decision making in the interest of members as a whole. Executive Director’s Emoluments The remuneration for Executive Directors reflects responsibilities and roles within the Society. The total emoluments package is set by the Remuneration Committee, with the constituent elements of salary and benefits being agreed between the Committee and the individual director. The Society has no share option scheme. Basic Salaries Basic salaries are reviewed annually by undertaking an external benchmarking exercise which compares salaries in similar organisations. Benefits The Society makes a contribution of between 10% to 25% of salary (prior to any salary sacrifice) to Executive Directors’ private pension arrangements. Executive Directors receive other taxable benefits including a company car. During the year Mr Wood was not eligible to such benefits. The Society also provides concessionary mortgage loans and membership of a private healthcare scheme to Executive Directors on terms consistent with that available to all staff. Executive Directors’ Contractual Terms Mr Wood and Mr Bland each have service contracts dated 17 May 2012 and 15 March 2007 respectively. They require twelve months notice to be given by the Society and six months notice by the individual. There are no contractual arrangements in respect of bonuses, deferred consideration or amended arrangements in the event of a transfer of engagement. Non-Executive Directors Non-Executive Director fees are based on comparable data from similar financial service organisations and are recommended by the Remuneration Committee. Remuneration comprises a basic fee with supplementary payments for the Chair, Deputy Chair and Audit & Compliance Chair.

Non-Executive Directors fees are not pensionable, nor do the individuals participate in any incentive schemes or receive any other benefits. Non-Executive Directors have formal contracts of service.

22 2013 2013 20132013 2013 director’s remuneration report (continued) 2013 2012 Remuneration of Directors £ 000s £ 000s Director’s emoluments Services as Directors 127 119 Services in connection with management 340 291 467 410

Details of individual Directors’ emoluments are as follows:- 2013 2012 £ £ Non-Executive A.East (Chairman: appointed 19/07/2012) 27,172 19,755 D.J. Milner (Deputy Chairman: appointed 19/07/2012) 21,048 17,629 B.W. Frankling (Chairman: until retirement on 19/07/2012) 8,850 26,942 J.R.D. Anton 18,500 19,259 D.A. Gamble 18,500 17,629 K.A. Langley 18,500 17,629 P.E. Doona (appointed 15/06/2012) 14,382 - Total 126,952 118,843 Non-Executive Directors receive only fees for their services.

Salary Benefits Subtotal Pension Total Contributions Executive £ £ £ £ £ J.R. Wood (appointed 06/06/2012) 130,959 624 131,583 - 131,583 J.N. Bland 70,140 13,888 84,028 31,415 115,443 *M.R. Heenan (resigned 06/06/2012) 28,117 - 28,117 - 28,117 **T.D. Taylor 52,594 7,410 60,004 5,259 65,263 Total Executive 2013 281,810 21,922 303,732 36,674 340,406

Salary Benefits Subtotal Pension Total Contributions £ £ £ £ £ *M.R. Heenan (appointed 05/12/2011) 38,400 - 38,400 - 38,400 G.J. Caves (retired 31/01/2012) 74,125 5,444 79,569 30,098 109,667 J.N. Bland 65,140 12,477 77,617 35,855 113,472 T.D. Taylor (appointed 01/12/2011) 20,000 2,264 22,264 7,690 29,954 Total Executive 2012 197,665 20,185 217,850 73,643 291,493

* The interim services of M.R. Heenan are provided through Messrs. Dean Statham; and the salary disclosed represents the fees billed, inclusive of V.A.T. ** T.D. Taylor’s position as Commercial Director was made redundant on 22 January 2013. Consequently he received £78,900, as compensation for loss of office.

The Executive Directors have the option to sacrifice part of their salary in exchange for the Society making additional pension contributions on their behalf. J.N. Bland exercised this option during the year.

2013 23 2013 20132013 making more of your membership

As part of our ongoing development, it is important that we hear from more of you more often. Making your voice and your views heard is integral to the Society’s development – we need your insight to ensure we are doing things right for you.

We have introduced Comment Cards to all branches and agencies this year and we are starting to receive regular feedback - thank you. Please continue to provide feedback, on anything that you wish to pass comment in relation to your experiences or suggestions, via Comment Cards at your local branch or agency.

If you are a member who feels like offering more detailed insight, we are planning to introduce a Members Focus Group during the coming year, to discuss a range of topics and issues that relate to the Dudley. We just need a pool of reliable members who are comfortable in voicing their opinions, so if you like the sound of that, please let us know and we can include you. Focus Groups would be arranged at times and locations to suit and more details would be provided in due course. To register an interest, please contact: [email protected].

And don’t forget, you can follow us on Twitter: @DudleyBS. You can offer thoughts and opinions about the Society and also keep up to speed with the social side of what we get up to. Important Information Dudley Building Society is covered by the Financial Services Compensation Scheme (FSCS), the means by which compensation can be paid to depositors if a bank or building society is unable to meet its financial obligations. Most depositors - including individuals and small businesses are covered by the scheme.

The compensation limit for deposits is currently £85,000 per person. For joint accounts, each account holder is treated as having a claim in respect of their share, so for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each, making a total of £170,000. The £85,000 limit relates to the combined amount in all the eligible depositors’ accounts with the bank or building society, including their share of any joint account, and not to each separate account. For further information about the scheme please ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call 01384 231414.

24 2013 2013 20132013 2013 list of charges

£ Additional Borrowing 80.00 Application Fee 125.00 Balance/Statement, Breakdown/Duplicate Mortgage Statement 25.00 Change of Mortgage Type 30.00 Consent to the Registration of a Subsequent Charge 25.00 Contingency Buildings Insurance Fee 75.00 Copy Extract from Title Deeds 25.00 Discharge Fee 125.00 Leasehold Servicing Fee 50.00 Lender’s Reference/Questionnaire 75.00 Own Insurance Arrangements 30.00 Part release of security 75.00 Product Switch 75.00 Redemption Statement 50.00 Safe Custody of Title Deeds 20.00 pa Transfers of Ownership 60.00 Unauthorised Letting/Breach of Mortgage Conditions 200.00 Letting your Property 75.00 Arrears Charge 20.00 pm Arrears Visit 50.00 Money Transfer Fee 25.00 Legal Proceedings Fee 100.00 Repossession Fee 250.00 Accountant‘s/Audit Letter 20.00 Duplicate Section 975 Tax Certificate 15.00 ISA Void 25.00 Lost Passbook 10.00 Balance Breakdown/Statement 15.00 Data Protection Subject Access Request 10.00 Returned Cheques/Direct Debit 12.00 Payment by Debit Card 1.00 Mortgage Payment by Benefit Office 12.00 pa

There may be other fees and charges (not listed above) which are made by the Society for providing additional services and these will be notified to you at the time the service is requested.

Effective from 1 September 2013

2013 25 2013 20132013 annual reminders

Since joining the Dudley your needs might well have changed so from time to time we will bring to your attention additional services and products which may be of benefit to you. However when you first become a customer (or whenever you choose), we will offer you the opportunity to say that you do not wish to receive this information.

To change your instructions, please write to: Customer Services Department, Dudley Building Society, Freepost DD203, Dudley, DY1 1BR.

Changes in interest rates are published in the Express & Star and Dudley Newsgroup newspapers. Borrowing members are reminded that if you have an interest only mortgage it is your responsibility to ensure that an appropriate repayment vehicle e.g. Individual Savings Account is in place and to check regularly that it is on target to repay the amount of your mortgage. You must also ensure that payments for Endowment or Pension Policies and Investment Plans are kept up to date and continue to provide you with the level of cover required. financial ombudsman service

The Society is covered by the Financial Ombudsman Service and has established an internal complaints procedure which may be examined upon request. Any complaint we cannot settle may be referred to: The Financial Ombudsman Service, South Quay Plaza, 83 Marsh Wall, London, E14 9SR.

26 2013 2013 20132013 2013 www.dudleybuildingsociety.co.uk

2013 27 2013 20132013 branch offices agencies Dudley Head Office Bishops Castle Dudley House, Stone Street, Dudley DY1 1NP Simon Harris, 30 Church Street, Tel: 01384 231414 Bishops Castle, Shropshire SY9 5AE Fax: 01384 233250 Tel: 01588 638778 [email protected] Kington Brierley Hill Mark Williams, 14 High Street, Kington, 107 High Street, Brierley Hill DY5 3AU Herefordshire HR5 3AX Tel: 01384 70420 Tel: 01544 232795 [email protected] Knighton Gornal Wood Garner Southall Partnership, 3 Broad Street, 20 Abbey Road, Gornal Wood DY3 2PG Knighton, Powys LD7 1BL Tel: 01384 214671 Tel: 01547 520130 [email protected] Llandrindod Wells Kingswinford Haydn Lewis Financial Services Ltd, 2a Temple 802 High Street, Kingswinford DY6 8AA Street, Llandrindod Wells, Powys LD1 5DL Tel: 01384 278326 Tel: 01597 824338 [email protected] Perton 6 Anders Square, Perton WV6 7QH Tel: 01902 755540 [email protected] Sedgley 20 Dudley Street, Sedgley DY3 1SB Tel: 01902 661772 [email protected] Stourbridge 59 High Street, Stourbridge DY8 1DE Tel: 01384 393616 [email protected]

Principal Office: Dudley House, Stone Street, Dudley DY1 1NP Tel: 01384 231414 | Fax: 01384 233250 | DX: 12745 Dudley email: [email protected] | www.dudleybuildingsociety.co.uk

Branches: Brierley Hill | Dudley | Gornal Wood | Kingswinford | Perton | Sedgley | Stourbridge