ROCHESTER, N.Y.—The $9.3-billion ESL Federal Credit Union is purchasing $401-million Generations Bank, based in Seneca, N.Y., the credit union announced.
ESL FCU said it will acquire substantially all of the assets and liabilities—including the deposit account liabilities—of Generations Bank in an all-cash transaction, paying $26.2 million.
The bank will retain its equity at the effective time of the P&A transaction, less certain reductions and additions, the credit union said.
The agreement was unanimously approved by the boards of directors of ESL Federal Credit Union and Generations and is expected to close late in the second or third quarter of 2025, subject to receiving all regulatory and shareholder approvals.
Generations Bancorp’s shareholders are currently estimated to receive an aggregate of between $18 and $20 in cash in exchange for each share of Generations Bancorp common stock owned, ESL stated.
Currently, Generations Bancorp has 2,241,801 outstanding shares of common stock.
Bank Performance
Generations lost $1.7 million in net income in 2023 and $1.4 million through June of 2024, according to FDIC data. ESL made $51 million in net income in 2023 and $28.2 million through June. The CU’s net worth is 16.65%.
The transaction, the credit union said, allows ESL to significantly grow its presence throughout the Greater Rochester and Finger Lakes region. ESL will increase its footprint to more than 30 full-service branches throughout the Greater Rochester and Finger Lakes region.
“This deal is a strong fit for ESL and Generations because both organizations are committed and dedicated to serving their employees, customers and their communities. We look forward to our future as a stronger, growing financial institution, and bringing the superior experiences we are known for to employees and customers in new communities,” said Faheem Masood, president and CEO of ESL FCU.
“We are very excited about our new partnership with ESL Federal Credit Union. The synergy created by combining these two companies coupled with the financial strength of the combined institution will assure that our customers, our employees and our communities have expanded financial services and membership benefitsgoing forward. We also believe it reflects our commitment to enhance the value to our shareholders,” said Angela Krezmer, president and CEO of Generations Bank.
Fast Pace Of Buys
The pioneer of CU purchases of banks, Michael Bell, emphasized the pace of these deals is not slowing.
“Despite all of the attention bank lobbyists are focusing on CU purchases of banks, these are 100% voluntary transactions continue. The free market lives. Credit unions and banks, both community based financial institutions, see these as opportunities that are good for their employees, communities and Main Street America. We will see more of these agreements announced soon,” said Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing ESL.
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
ESL was advised by Performance Trust Capital Partners, as exclusive financial advisor, and Harter Secrest & Emery LLP and Honigman LLP, as legal counsel. Generations was advised by Keefe, Bruyette & Woods, a Stifel Company as exclusive financial advisor, and Luse Gorman, PC, as legal counsel.