Airdrie's on the move with branch in Falkirk

The long-anticipated expansion out of its core area follows plans announced in March last year that it would be adding to its seven branches in and around its local base.

The 175-year-old bank attracted considerable attention last year when it unveiled its plans amid the continuing public backlash against the major lenders. Airdrie made a virtue of its scale, its traditional banking culture and lack of exposure to the debt-fuelled problems of its bigger rivals.

It has 60,000 account holders with deposits of more than 120 million. Because it has no shareholders, it pays no dividends. Surpluses are reinvested in the bank's reserves.

However, in another move forward it announced plans to launch an internet banking service and greater support for the business community.

In a gesture of support for Airdrie's "alternative" banking model, some of Scotland's best-known business leaders together invested 10m in the bank to help it fulfil its plans.

Among them was transport tycoon Brian Souter, the merchant banker Sir Angus Grossart and metals and property businessman Sir David Murray.

Tyre-fitting pioneer Sir Tom Farmer, the financier Ewan Brown, food firm boss Alastair Salvesen and Souter's sister, Ann Gloag, also invested.

Souter, chief executive of bus and trains firm Stagecoach, said the public had become tired of the big-salary, big-profits culture of the larger banks and were seeing no benefits.

When news emerged of the group's involvement in financing the Airdrie, the bank was inundated with calls from well-wishers across Scotland wanting to follow their example and open accounts. The bank launched a roadshow in Edinburgh last year and is still looking at potential sites in the east of Scotland.

It reported record lending of more than 36m last year, up 24 per cent on 2009, and pre-tax profits of 326,000, a 21 per cent increase from the previous year.