WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu issued the following statement at yesterday's Federal Deposit Insurance Corporation (FDIC) board meeting regarding Thrivent Financial's application for deposit insurance federal.
I support the application for deposit insurance for a proposed industrial bank to be owned by Thrivent Financial for Lutherans (Thrivent Financial). Thrivent Financial, a $113 billion company, and its subsidiaries provide financial and investment advice, trust services, and investment and insurance products nationwide. Additionally, Thrivent Financial proposes to merge Thrivent Financial Credit Union, an $832 million federally chartered credit union, into the proposed industrial bank.
The proposed industrial bank and combined entity would expand Thrivent Financial's reach among the general population and attract new customers beyond the credit union's restricted field of membership and capital growth limitations. Merging the credit union with the industrial bank would establish the bank's foundation, providing infrastructure, comprehensive product and service offerings, established risk and compliance practices, and experienced staff. Under a master services agreement, the bank would leverage certain resources available through its affiliates' existing infrastructure.
The proposed bank would look a lot like a community bank. The organizers have developed a comprehensive and diverse business plan that outlines an operating strategy supported by reasonable financial projections. The bank would be sufficiently capitalized and Thrivent Financial would execute a capital and liquidity management agreement to serve as a source of financial strength for the bank. In the event of financial stress or bankruptcy of its parent company, the bank would retain the value of the franchise, which would mitigate the risk to the Deposit Insurance Fund. For these reasons and considering legal factors, I support the deposit insurance application filed by Thrivent Financial. I also support the merger application filed to merge Thrivent Financial Credit Union with the industrial bank.
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