A Tennessee appeals court unanimously ruled that Orion Federal Credit Union in Memphis, Tenn., can buy Financial Federal Bank in Memphis.
The $1.2 billion-asset Orion agreed in August 2021 to buy the $950 million-asset Financial Federal, but the Tennessee Department of Financial Institutions obtained an injunction to block the transaction.
A judge ruled in May 2022 that the deal should go through because Orion was buying loans and deposits – not the actual bank. The state regulator appealed the ruling.
The Tennessee Department of Financial Institutions said it is weighing its options following the appellate court ruling.