The Bank Slate

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FDIC approves Thrivent’s plan to form industrial bank and absorb its credit union

The Federal Deposit Insurance Corp. approved a plan by Thrivent Financial for Lutherans to obtain deposit insurance and merge its credit union into a newly created bank.

Thrivent had applied for form Thrivent Bank, a proposed industrial bank based in Salt Lake City. Thrivent plans to merge Thrivent Federal Credit Union in Appleton, Wis., into the bank.

Thrivent must infuse at least $280 million of capital into the bank. The FDIC approval requires Thrivent Bank to be formed within 12 months.

Thrivent’s applications “appear to demonstrate that the parent companies can meet the source of financial strength requirement for the parent of the proposed bank and satisfy the statutory factors the FDIC is required to consider for deposit insurance applications and merger applications,” FDIC Chairman Martin Gruenberg said in a statement.

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