In cost-cutting move, bank switching to credit union

Thrivent Financial for Lutherans, which operates Thrivent Financial Bank, has received permission from the National Credit Union Administration to charter Thrivent Federal Credit Union. The bank, based in Appleton, Wis., transfered all its deposits and most of its assets to the credit union on Dec. 1..The new credit union has about $500 million in assets, serving some 47,000 customers..Thrivent said on its banking web site that it is converting to a credit union for two reasons. "First, we believe a faith-based credit union, which is member-owned, is the best fit with Thrivent Financial for Lutherans, which is also a membership-owned faith-based organization," it said.."Second, recent federal laws have placed some new and costly regulatory burdens on life insurers, like Thrivent Financial, that operate full-service banks. It would be expensive for Thrivent Financial to meet all those requirements, and we believe we have an obligation to our members and an opportunity to structure our business in a way that will better meet their needs and continue to offer them value.".The American Banker newspaper reported that Thrivent expects to realize a cost savings of $2 million per year as a result of the charter shift..Todd Sipe, who was president and CEO of Thirvent Financial Bank, is president and CEO of the credit union..The organization plans to convert Thrivent Financial Bank into a limited purpose trust bank; it will be renamed Thrivent Trust Company..The credit union has two offices, one in Appleton and one in Minneapolis. It serves customers all over the nation through a call center and through online transactions..The transaction, which was in the works for 18 months, was approved also by the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency. Thrivent Federal Credit Union is the fourth new federal credit union charter approved in 2012, and it is the fourth credit union this year to acquire assets formerly held by a bank. A spokesperson for the NCUA told reporters the last time a bank switched to a credit union was in 1996 in Rochester, N.Y..The new credit union will be owned solely by its members and, as such, will be independent from Thrivent Financial for Lutherans. However, Thrivent Financial is the credit union's sponsor..On June 30, Thrivent Financial Bank had assets of $540 million. Last year, the bank reported net income of $1.06 million; through the first six months of this year, it reported income of $408,000.