In a record-tying deal, ESL Federal Credit Union has agreed to acquire $401 million-asset Generations bank in Seneca Falls, New York.

The $9.3 billion-asset credit union in Rochester, New York, will pay $26.2 million in cash for the Generations Bancorp banking unit, and the bank will retain its equity.

Generations Bancorp has 2.2 million outstanding shares of common stock, and its shareholders are estimated to receive an aggregate of between $18 and $20 in cash in exchange for each share of Generations Bancorp common stock owned.

The deal, which is expected to close late in the second quarter or in the third quarter of 2025, marks the 16th time in 2024 that a bank has agreed to sell to a credit union – the same number of such deals announced two years ago, although only 14 of those transactions ultimately closed.

There were 11 credit union-buying-bank deals announced in 2023.

“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,” said ESL’s President and CEO Faheem Masood in a press release Tuesday.

This deal allows ESL to grow its presence throughout the greater Rochester and Finger Lakes region, bringing personal banking, business banking, mortgage services and wealth management throughout Seneca, Cayuga and Orleans Counties while expanding its footprint in Ontario County.

The Office of the Comptroller of the Currency entered into a written agreement with Generations Bank in July after finding it had unsafe or unsound practices, including those relating to board oversight, strategic planning, liquidity risk management and interest rate risk management.

Under the July 19 agreement, the bank’s board must form a compliance committee to monitor and oversee compliance with the provisions of the agreement and to submit written progress reports.

The press release did not say if Generations Bank’s President and CEO Angela Krezmer would work for the combined company.

“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 said in the release.

The credit union earned roughly $28.2 million in the first half of 2024, a 22% decrease compared to a year earlier, according to call report data from the National Credit Union Administration.

“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.”

 – Faheem Masood
President and CEO
ESL Federal Credit Union