Rochester-based ESL Federal Credit Union has announced a deal to acquire Generations Bank and its parent company, Generations Bancorp NY, Inc., in a $26.2 million cash transaction. The agreement, approved by both companies’ boards, involves the purchase of most of Generations Bank’s assets and liabilities, including its deposit accounts.
Under the terms of the deal, Generations Bank will liquidate its remaining assets, with shareholders expected to receive between $18 and $20 per share after the transaction closes in 2025. The closure of the acquisition is expected to occur between the second and third quarters of next year, pending regulatory and shareholder approvals. Shareholders will likely receive the majority of their payment within nine months after the closing, with a second, smaller payment to follow within another nine months.
Generations Bancorp, which has approximately 2.2 million shares of stock outstanding, noted that several factors, including tax implications and future operating results, could affect the final per-share payout to investors. Additionally, some eligible depositors may receive liquidation account payments based on their status at the time of Generations’ earlier stock conversion.
The acquisition allows ESL Federal Credit Union, which already holds over $9.2 billion in assets, to expand its reach in the Finger Lakes and Greater Rochester regions, including Seneca, Cayuga, and Orleans counties, and increase its total branch count to more than 30. Following the completion of the deal, ESL’s assets are expected to rise to approximately $9.6 billion.
“This deal is a strong fit for both organizations, as we are committed to serving our communities, customers, and employees,” said Faheem Masood, president and CEO of ESL Federal Credit Union. “We look forward to expanding our services and bringing our high level of customer experience to new communities.”
Angela Krezmer, president and CEO of Generations Bank, echoed Masood’s optimism, emphasizing the benefits for customers and employees of both companies. “We believe this partnership reflects our dedication to enhancing value for our shareholders while ensuring expanded financial services and membership benefits for the future,” she said.
Generations Bank, founded in 1870 and headquartered in Seneca Falls, operates nine retail locations across the Finger Lakes region. The bank offers a range of services, including residential mortgages and commercial loans.
In the acquisition process, ESL was advised by Performance Trust Capital Partners, with legal counsel from Harter Secrest & Emery LLP and Honigman LLP. Generations was represented by Keefe, Bruyette & Woods, a Stifel Company, and legal counsel from Luse Gorman, PC.
ESL Federal Credit Union, founded in 1920, currently serves over 429,000 members and operates 24 branches in the Greater Rochester area. It has reinvested more than $100 million into the local community through grants since 2018 as part of its Community Impact initiative.
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