Derbyshire is closing three branches and cutting up to 50 jobs in an attempt to cut costs.
The lender refused to comment on which branches would be affected.
A spokesman for Derbyshire says a consultation period with staff has begun however it hopes to redeploy as many staff as possible.
The news follows a reported a 47% profit drop last week.
Derbyshire’s profit after tax was £8.7m for 2007, which represents a £7.7m drop from 2006.
The lender attributes the drop to exceptional financing costs.