The Fareham-based bank, which announced total assets of £28m as of 30 April 2006 offers as a principal activity disbursement funding loans to solicitors and their clients, mainly in connection with personal injury claims.

National Counties offers traditional building society savings and mortgages and is based in Epsom, Surrey.

Both businesses will continue to operate from their existing locations, with no anticipated implications for their respective work-forces, which total around 120 employees.

John Milton chief executive of National Counties said: “This is an exciting development for the Society. It is part of our diversification strategy to seek out improved returns on our other lending to help us sustain the market-leading savings and mortgage products we offer our members. Hampshire Trust brings to our Group a tremendous record for innovation and profitable development. Whilst we operate in different markets, the business principles are the same, with professionalism and financial security to the fore.”

Mike Wilks, managing director of the Hampshire Trust said: “I am delighted that the Bank is being acquired by such a well respected organisation as National Counties. We share similar visions and values and the increased capital backing available through membership of the Group will allow us to further develop our business, as we seek to consolidate our position as the ‘Solicitors’ Bank’. “