ESL Federal Credit Union agrees to buy Generations Bank in N.Y.
ESL Federal Credit Union in Rochester, N.Y., has agreed to buy Generations Bank in Seneca Falls, N.Y.
The $9.2 billion-asset credit union said in a press release that it will pay Generations Bancorp about $26.2 million in cash for the $400 million-asset bank. The deal is expected to close in the second quarter or the third quarter of 2025.
The consideration will be distributed in two installments with the substantial majority to be paid within six to nine months after the sale closes. The second installment would be paid six to nine months later.
“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 Chief Executive Officer of ESL Federal Credit Union.
“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,” Faheem Masood, ESL’s president and CEO, said in the release. “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.”
The announcement ends a bumpy 12-month period for Generations. CEO Menzo Case died last October; Angela Krezmer, who was the chief financial officer, succeeded him.
Generations Bancorp disclosed in July that it had entered into a written agreement with the Office of the Comptroller of the Currency requiring it to improve how it manages its balance sheet. It had to draft written plans for liquidity risk management and interest rate management.
Generations is the 16th bank to agree to sell to a credit union this year, matching 2022 as the busiest year for such transactions. Of the deals announced in 2022, 14 were completed.
ESL was advised by Performance Trust Capital Partners, Harter Secrest & Emery and Honigman. Keefe, Bruyette & Woods and Luse Gorman advised the bank.