Orion Federal Credit Union in Memphis, Tennessee, is set to expand its market share in its home state by acquiring Financial Federal Bank in Memphis.
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“Orion’s board of directors is extremely excited to announce this partnership between two uniquely positioned Memphis-based financial institutions,” Andre Fowlkes, the chairman of Orion’s board, said in a news release. “This transaction positions Orion to be a fierce competitor in the southeastern region in both the commercial and consumer banking spaces. The partnership is a win for employees and the business community, and will position us to deliver on even greater community outreach activities throughout the City of Memphis.”
“I am enthusiastic about the opportunity we have to partner with Orion in a transaction that we believe offers significant opportunities to our clients, communities, employees and shareholders,” Kent Wunderlich, Financial Federal's CEO, said in the release. “This partnership is an excellent opportunity to create value for both institutions.”
This is the seventh deal this year in which a credit union is buying a bank, matching the number of such deals reported in 2020, according to American Banker tallies. The record number, 16, was set in 2019.
Orion hopes to bolster its real-estate lending arm and to break into commercial and industrial lending with the acquisition.
“We believe that the combination of these two great organizations produces undeniable synergies. Orion has a legacy of exceptional consumer banking, while Financial Federal has a specialized niche in the commercial banking space,” Ashley McAdams, Orion’s executive vice president and chief financial officer, said in the release. “Aligning these two organizations will bring depth and bench strength to Orion’s already well-established commercial real estate lending team while supporting Orion’s goal to grow our mortgage product lines and allow us to expand into commercial and industrial lending.”
Orion is being advised by the law firm Honigman. Janney Montgomery Scott served as financial advisor. Baker, Donelson, Bearman, Caldwell & Berkowitz provided legal counsel to Financial Federal.
