The Bank Slate


Tenn. appeals court rules in favor of credit union-bank deal

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.

Leave a Reply

Your email address will not be published. Required fields are marked *