Thrivent hires former MUFG Union executive to run proposed bank

Thrivent Financial for Lutherans has recruited two high-profile bankers to run the bank it is looking to form.

The company said in its application with the Federal Deposit Insurance Corp. seeking deposit insurance that Brian Milton would be CEO of the proposed Thrivent Bank.

A spokeswoman for Thrivent Financial said Milton will serve as the company's head of banking and oversee its efforts to add more consumer products and services. He would run Thrivent Bank if a charter and deposit insurance are approved.

Milton recently served as head of retail banking at MUFG Union Bank and was president of its PurePoint Financial digital bank.

Karin Lockovitch, a former chief compliance officer at Bank of the West, would become chief risk officer at Thrivent Bank, according to the FDIC application.

Thrivent Financial said the bank would operate as an industrial loan company and rely on a digital platform to offer services nationwide. The bank, which would be based in Salt Lake City, would have branches in Minneapolis and Appleton, Wis.

Thrivent Financial has dual headquarters in Minneapolis and Appleton.

The FDIC filing made it clear that Thrivent Financial plans to merge the $725 million-asset Thrivent Federal Credit Union into the bank if the ILC charter is approved, though it would form the bank "whether or not the merger occurs."

The credit union, which has 56,000 members, "will provide a strong, proven foundation for the bank’s operations, products and services, upon which the bank may grow and develop enhanced products and services," the filing said. "As such, the bank will not become fully operational until the merger transaction is completed."

A Thrivent Financial spokeswoman said the proposed merger would require regulatory approval and support from the credit union's board and membership.

Thrivent Credit Union converted from a thrift in 2012.

Thrivent Financial is the latest in a series of companies seeking an ILC, a charter that has faced strong resistance from the banking industry.

Brex, a San Francisco fintech, submitted an application last week. The merchant payments company Square was approved for a charter in March, ending a long dry spell for ILC approvals. Square Financial Services recently launched.