Orion Federal Credit Union’s pending purchase of Financial Federal Bank in Memphis is back on track after a judge in Tennessee lifted a temporary injunction that had blocked the transaction.
The $1 billion-asset Orion, which is also based in Memphis, agreed in August to buy the $774 million-asset Financial Federal. Greg Gonzalez, commissioner of the Tennessee Department of Financial Institutions, raised concerns about the deal’s legality, arguing that state law only allows banks to buy banks.
It is unclear if the ruling will be appealed.
Colin Barrett, the association’s president and CEO, asserted in an August blog post that the acquisition will lead to the loss of about $15 million in local, state and federal tax revenue over the next decade.
At the same time, VyStar Credit Union and Heritage Southeast Bank have pushed back the closing date of their pending deal several times while awaiting regulatory approval.