ESL Federal Credit Union is acquiring Generations Bank and its parent company in a $26.2 million all-cash transaction that ESL says will allow for significant growth.
The deal will enable ESL to increase its footprint to more than 30 full-service branches in the area and boost its total assets to $9.6 billion, according to a statement.
“We expect that this will improve access to banking products and services throughout the Finger Lakes,” Faheem Masood, president and CEO of ESL, told the Rochester Beacon. “We’ve worked to build community prosperity throughout Greater Rochester by improving this access to products and services, especially in communities that have been historically underserved, and we look to provide that same level of commitment to the Finger Lakes region as well.”
Generations says it will continue to operate as usual for now, that there is no need for action on its customers’ part, and that there are no plans to close any office locations as a result of the deal.
The bank also will establish liquidation accounts during its second-step conversion, and eligible depositors will have the right to receive a liquidation account payment.
“Our goal is to make the transition as smooth as possible to welcome Generations customers to ESL,” Masood says.
The transaction is expected to close in the late second to early third quarter of 2025. It is subject to approval by Generations Bancorp’s shareholders and regulators, and other customary closing conditions.
Shareholders of Generations Bancorp, Generations Bank’s holding company, are currently estimated to receive $18 to $20 per share after the sale is closed and the company and bank’s obligations are settled, though this figure is uncertain. The company has 2.24 million outstanding shares.
Generations Bancorp (Nasdaq: GBNY) has been trading higher since the Wednesday announcement, riding a big premarket bump.
When asked about how the deal was pulled together, Angela Krezmer, who became the first female president and CEO of Generations last November, told the Beacon that more background information about the transaction will be issued in a forthcoming proxy statement to its shareholders.
“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 benefits going forward,” Krezmer says. “We also believe it reflects our commitment to enhance the value to our shareholders.”
ESL has been locally owned since its founding by George Eastman in 1920. It currently operates a 24-branch network that employs about 950 people in the Greater Rochester area. Generations, founded in 1870, is headquartered in Seneca Falls and runs nine branches, primarily in the Finger Lakes region.
Taking on these assets, Masood says, will let ESL offer a wider suite of banking products and services to individuals and businesses, along with wealth management services and retirement plans.
“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,” he says. “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.”
Justin O’Connor is a Rochester Beacon contributing writer. The Beacon welcomes comments and letters from readers who adhere to our comment policy including use of their full, real name. Submissions to the Letters page should be sent to [email protected].