Breaking Down Generations Bancorp NY, Inc. (GBNY) Financial Health: Key Insights for Investors

You're looking at Generations Bancorp NY, Inc. (GBNY) because its stock price of $17.15 as of September 30, 2025, and a small market capitalization of only $39.1 million might scream deep value, but honestly, you need to look past the ticker and into the balance sheet to see the real picture. The core issue is profitability and scale, especially after the voluntary delisting from Nasdaq in late 2024; that's a major signal. For the first half of 2025, the bank subsidiary reported a Year-to-Date Net Loss of $1.495 million, following a steep 2024 net loss of $4.775 million, which tells you the pressure on their net interest margin (NIM) is defintely real. Still, with Total Assets sitting at $372.972 million as of June 30, 2025, and a loan portfolio of $290.377 million, the bank has tangible book value, but the trend of shrinking deposits-down 8.7% in 2024-shows a capital flight risk you can't ignore. We need to map out if the current valuation is a genuine activist opportunity or a classic value trap.

Revenue Analysis

You need to know where the money is coming from, especially with a major event like a pending acquisition. For Generations Bancorp NY, Inc. (GBNY), the revenue story for 2025 is less about organic growth and more about the final run-rate before the bank unit is sold and the holding company liquidates.

The total revenue for Generations Bancorp NY, Inc. for the 2025 fiscal year is effectively based on a trailing twelve-month (TTM) projection of around $7.65 million. This figure is a sharp drop from prior years, which is the key signal here. When you see a bank's revenue shrinking, you have to look past the top line and see the underlying interest rate pressure and strategic shifts.

• Revenue is a run-rate, not a growth story.

Breakdown of Primary Revenue Sources

As a community bank, Generations Bancorp NY, Inc.'s revenue is dominated by Net Interest Income (NII), which is the difference between what the bank earns on loans and investments and what it pays out on deposits. In the year leading up to 2025, this core banking function was under severe pressure. Here's the quick math based on the 2024 fiscal year figures, which set the stage for 2025:

The primary source of revenue is clearly Net Interest Income, which contributed over 80% of the total. Non-interest income-from things like service charges, fees, and wealth management-is a smaller but still important part of the mix. The decline in both categories shows the twin pressures of rising deposit costs (hitting NII) and reduced customer activity (hitting non-interest income).

Year-over-Year Revenue Contraction

The year-over-year trend is a clear contraction. Generations Bancorp NY, Inc.'s annual revenue for 2024 was $7.65 million, marking a massive -29.10% decrease compared to the $10.79 million reported in 2023. This decline is not a blip; it reflects a challenging operating environment for smaller regional banks, where the cost of funds (what they pay for deposits) has risen faster than the yield on their assets (what they earn on loans).

The Net Interest Income itself fell by $1.6 million, an 18.1% drop from 2023. Plus, Non-Interest Income saw an even steeper decline, falling 43.0%, or $1.3 million. That kind of simultaneous pressure on both core revenue streams is defintely a red flag for a standalone bank's near-term viability.

The Acquisition: The Single Biggest Change

Honestly, all the revenue analysis for 2025 is secondary to the pending acquisition. The most significant change to the company's revenue stream is its impending termination. ESL Federal Credit Union is set to acquire substantially all of Generations Bank's assets and liabilities for an all-cash consideration of $26.2 million.

This transaction is expected to close late in the second quarter or in the third quarter of 2025. What this means is that Generations Bancorp NY, Inc.'s revenue stream will cease entirely around mid-2025, to be replaced by a cash distribution to shareholders. The focus for investors shifts from future earnings to the liquidation value, which is estimated to be between $18.00 and $20.00 per share in cash. This is the only action that matters now. For a deeper dive into the shareholder implications, you should be Exploring Generations Bancorp NY, Inc. (GBNY) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need a clear picture of Generations Bancorp NY, Inc.'s (GBNY) core earnings power, and honestly, the latest numbers show a significant challenge. The bank's profitability for the 2024 fiscal year, which is the most recent full-year data we have as we approach late 2025, reveals deep losses, mostly driven by a sharp decline in revenue and a shrinking Net Interest Margin (NIM). This is not a small dip; it's a major red flag for investors.

For a bank, the most critical profitability measure is the Net Interest Margin (NIM) (the difference between interest earned on loans and paid on deposits), and GBNY's NIM for 2024 was only 1.98%. To put that in perspective, the average NIM for US community banks in the second quarter of 2025 was a much healthier 3.62%. That 1.64 percentage point gap shows GBNY is struggling significantly more than its peers to make money on its core lending and deposit business.

Here's the quick math on the overall margins for the 2024 fiscal year, based on the reported total revenue of $7.65 million:

• Gross Profit Margin: 100% (Since a bank's Cost of Sales is typically $0.00, Gross Profit equals Total Revenue for reporting purposes, but this metric is misleading for a bank).
• Operating Profit Margin: -62.35% (Operating Loss of approximately -$4.77 million on $7.65 million in revenue).
• Net Profit Margin: -62.48% (Net Loss of -$4.78 million on $7.65 million in revenue).

The net loss margin of -62.48% is defintely a stark indicator of unprofitability, especially when the community bank industry's Pretax Return on Assets (a strong profitability proxy) was a positive 1.33% in Q2 2025.

Profitability Trends and Operational Efficiency

The trend over time is concerning; the losses aren't just a one-off event. Generations Bancorp NY, Inc.'s net loss for the 2024 fiscal year was -$4.8 million, which is a massive 204.7% increase in losses compared to the -$1.6 million net loss reported in 2023. This deterioration was driven by two main factors: a drop in Net Interest Income and a decrease in noninterest income.

The core problem is operational efficiency and cost management relative to shrinking revenue. Total revenue fell by -29.10% from $10.79 million in 2023 to $7.65 million in 2024. Meanwhile, the Net Interest Margin (NIM) dropped from 2.43% in 2023 to 1.98% in 2024. The bank is earning less on its assets and is likely paying more for its funding, a classic squeeze in a rising rate environment that hit smaller banks hard. While noninterest expense did decrease slightly by $411,000 in 2024, it was nowhere near enough to offset the $1.6 million decrease in net interest income. The cost structure is simply too high for the revenue base.

To understand the scale of the challenge, look at the key profitability metrics over the last few years:

The action here is clear: management must aggressively right-size the operating expense base-the $12.42 million in expenses for 2024 is unsustainable on a $7.65 million revenue base.

Debt vs. Equity Structure

You're looking at Generations Bancorp NY, Inc. (GBNY)'s balance sheet to understand how they fund their operations, and honestly, the numbers for a bank can look wild compared to a manufacturing company. The direct takeaway is that GBNY maintains a moderate financial leverage for a regional bank, relying heavily on deposits-a core banking liability-while keeping third-party debt relatively low.

As of the end of the 2024 fiscal year, which gives us the clearest near-term picture before the 2025 annual reports, GBNY's balance sheet shows a distinct funding profile. Their primary external financing comes from Federal Home Loan Bank (FHLB) advances, which is typical for a community bank seeking liquidity. Specifically, their Long-Term Debt, mostly FHLB debt, stood at approximately $17.46 million. Short-Term Borrowings were reported as $0 for the same period, indicating no immediate, non-deposit debt pressure.

Here's the quick math on their leverage, which needs context. For a bank, the Debt-to-Equity (D/E) ratio can be misleading if you only look at traditional debt, but if you include all liabilities (like customer deposits), the number jumps. The Assets to Equity ratio-a key bank leverage metric-was around 10.9x. This translates to a Total Liabilities-to-Equity ratio (the bank's true D/E) of roughly 9.9x.

• Total Assets: $387.15 million
• Total Equity: Approximately $35.4 million
• Long-Term Debt (FHLB): $17.46 million
• Short-Term Borrowings: $0

To be fair, a D/E of 9.9x looks high next to the regional bank industry standard of 0.09 D/E (using a narrow definition of debt), but it's moderate when you consider the nature of banking. Banks are inherently leveraged because customer deposits are liabilities. For comparison, a healthy D/E for a large bank like Bank of America was 1.169 in Q1 2025, which still uses a narrower definition of debt. GBNY's 10.9x Assets-to-Equity ratio is considered moderate for its sector.

The company balances its funding by prioritizing equity and deposits over market debt. This approach keeps the cost of capital defintely lower. Their most significant recent activity in 2025 wasn't a debt issuance but a major strategic move: the Purchase and Assumption Transaction with ESL Federal Credit Union. This transaction received regulatory approvals in September and November 2025, which will fundamentally reshape their balance sheet composition and overall funding mix, likely increasing their asset base and deposits, but the impact on the final 2025 D/E ratio is still unfolding.

You can see a deeper dive into the full picture in Breaking Down Generations Bancorp NY, Inc. (GBNY) Financial Health: Key Insights for Investors.

The company's reliance on deposits and FHLB advances, coupled with no recent major debt issuances or public credit ratings (due to its voluntary delisting from Nasdaq in late 2024), means its financial health hinges more on deposit stability and regulatory capital ratios than on bond market sentiment.

Liquidity and Solvency

You're looking at Generations Bancorp NY, Inc. (GBNY)'s ability to cover its near-term obligations, and honestly, for a bank, the classic Current Ratio (Current Assets divided by Current Liabilities) is defintely not the right tool. That metric is mostly meaningless here because a bank's core business involves turning long-term assets (loans) into short-term liabilities (deposits).

Instead, we need to focus on the quality of their liquid assets-cash and easily-sold investment securities-relative to their most pressing short-term obligations, primarily deposits. As of the end of the 2024 fiscal year, GBNY reported total Cash and Cash Equivalents of $12.357 million. A more recent financial health update shows Cash & Equivalents at approximately $13.61 million.

Here's the quick math on their liquidity position against their funding base, using the FY 2024 annual report data as the latest full-year picture:

• Cash to Total Deposits: The ratio is low at about 3.78% ($12.357 million / $326.46 million). This tells us GBNY relies heavily on its loan portfolio and investment securities to meet any significant deposit outflows.
• Quick Liquidity Position: If you add in the available-for-sale investment securities of $24.386 million, the total highly liquid assets are still a small fraction of the total deposits of $326.46 million. This is typical for a community bank, but it highlights the importance of stable deposit funding.

The real near-term liquidity test for GBNY is managing deposit maturities. For example, $134.5 million in Certificates of Deposit (CDs) are scheduled to mature in one year or less from December 31, 2024. The bank will need to either successfully reprice and retain these deposits or replace them with other funding sources, like Federal Home Loan Bank (FHLB) advances, which were already being utilized in 2024.

Cash Flow Trends and Working Capital Contraction

The trend in working capital-the difference between current assets and current liabilities-shows significant contraction. Total assets decreased by $37.3 million (an 8.8% drop) from 2023 to 2024, driven by decreases in net loans, investment securities, and cash. Total Deposits also fell by $31.1 million (8.7%) over the same period. This contraction suggests the bank is actively shrinking its balance sheet, likely in response to higher interest rates and a challenging net interest margin (NIM) environment, which fell to 1.98% in 2024.

Looking at the cash flow statement provides a clearer operational picture. The latest available quarterly data (Q2 2024) shows Net Cash From Operating Activities was negative at -$132,000. This negative operating cash flow is a red flag; it means the core business is not generating enough cash to cover its non-cash expenses and changes in working capital, forcing the bank to rely on other activities for funding.

The cash flow breakdown for the latest available period shows this reliance:

The positive $7.54 million in Net Cash From Financing Activities is what kept the cash balance afloat, but sustained negative operating cash flow is not a viable long-term strategy for liquidity. The bank needs to reverse the operating cash flow to positive territory, which ties directly into improving its Net Interest Margin. You can read more about their strategy here: Mission Statement, Vision, & Core Values of Generations Bancorp NY, Inc. (GBNY).

The key action for investors is to monitor the Q3 2025 and Q4 2025 earnings reports for a turnaround in Net Cash From Operating Activities and a stabilization of the deposit base. If the negative operating cash flow persists, the liquidity risk-while not immediately critical due to the ability to borrow-will continue to rise.

Valuation Analysis

You're looking at Generations Bancorp NY, Inc. (GBNY) and wondering if the price is right. The direct takeaway is this: Generations Bancorp NY, Inc. appears to be fairly valued on a Price-to-Book (P/B) basis, but its valuation is fundamentally complicated by a recent loss and a pending acquisition that makes traditional earnings multiples irrelevant. You can't just look at the P/E ratio here.

As of November 19, 2025, the stock price sits at $17.61. This is near the high end of its 52-week range of $14.80 to $17.85, suggesting the market has already priced in recent positive developments, like the announced regulatory approvals for its Purchase and Assumption Transaction with ESL Federal Credit Union. The stock has delivered a solid 1-year return of 9.6%, which is a good run for a regional bank in the current environment.

Decoding Valuation Multiples

For a bank like Generations Bancorp NY, Inc., the Price-to-Book (P/B) ratio is often more telling than the Price-to-Earnings (P/E) ratio. Here's the quick math on the key metrics from the latest available data (Trailing Twelve Months, or TTM, through the 2025 fiscal year):

• Price-to-Earnings (P/E) Ratio: This is currently Negative. Why? Because the company reported a loss, with a TTM Earnings Per Share (EPS) of about -$2.21. You can't use a negative P/E to compare value; it simply flags that the company is losing money right now.
• Price-to-Book (P/B) Ratio: The P/B is approximately 1.04. A P/B close to 1.0 suggests the stock is trading at or near its net asset value (what shareholders would theoretically get if the bank liquidated its assets and paid off its liabilities). This is a defintely a neutral signal.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is not typically applicable (N/A) for banks, and the data reflects that. Banks' core earnings come from Net Interest Income, not the operating structure measured by EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

The P/B of 1.04 tells you the stock is not trading at a deep discount to its book value, but it's not wildly expensive either. It's sitting right in the middle.

Dividend and Analyst Sentiment

Generations Bancorp NY, Inc. does not currently offer a dividend. The dividend yield is 0.00%, and the payout ratio is also 0.00%. If you are an income-focused investor, this is a non-starter.

When you look for analyst consensus-the traditional 'Buy,' 'Hold,' or 'Sell' ratings-you hit a wall. Generations Bancorp NY, Inc. is covered by 0 traditional analysts. This lack of coverage is common for smaller regional banks trading on the OTC markets. However, some technical analysis models have recently upgraded the stock to a 'Buy' candidate based on price action and momentum.

The real story here is the pending transaction. The recent news of regulatory approvals in November 2025 for the Purchase and Assumption Transaction with ESL Federal Credit Union is the primary driver of the stock's recent strength. This transaction and the subsequent plan to dissolve the holding company are the most important factors for your near-term decision, far outweighing the historical P/E ratio. You need to understand the specifics of the deal's expected payout to shareholders. For more on the strategic direction, you should review the Mission Statement, Vision, & Core Values of Generations Bancorp NY, Inc. (GBNY).

Risk Factors

You're looking at Generations Bancorp NY, Inc. (GBNY) right now, but the biggest risk isn't just their balance sheet; it's the P&A Transaction (Purchase and Assumption Transaction) itself. The company's primary strategic risk is the successful closing of the deal with ESL Federal Credit Union, which is currently slated for January 1, 2026. Honestly, everything else is secondary to that closing.

The good news is that regulatory approval from the National Credit Union Association (NCUA) was secured in November 2025, which significantly de-risks the external closing process. For investors, the estimated cash per share consideration is between $18.00 and $20.00, so you need to watch the final distribution process closely.

Operational and Financial Headwinds

The company's recent financial health shows clear operational and financial risks that led to this strategic shift. For the fiscal year ended December 31, 2024, Generations Bancorp NY, Inc. reported a net loss of $4.78 million, which is a staggering 204.7% increase in losses compared to 2023. That's a huge jump in the wrong direction.

This financial strain is compounded by core banking performance issues, particularly the pressure on their lending margins. The Net Interest Margin (NIM)-the key measure of a bank's profitability from lending-decreased by 45 basis points to 1.98% in 2024. Net Interest Income (NII) dropped by $1.6 million, or 18.1%, to $7.2 million for the same period. This is classic margin compression from rising funding costs.

• Revenue fell 29.10% to $7.65 million in 2024.
• Bad loans are at 1.2% of total loans.
• Allowance for bad loans is currently insufficient.

Regulatory and Liquidity Risks

A major internal risk highlighted in recent filings is regulatory scrutiny. In July 2024, Generations Bancorp NY, Inc. entered into a formal agreement with the Office of the Comptroller of the Currency (OCC) to enhance oversight and risk management. This isn't just a slap on the wrist; it mandates specific, costly operational changes.

The regulatory agreement is actually a mitigation strategy in itself, requiring the bank to build a more robust framework for the future. Here's the quick math on what they're doing to address these risks:

The most immediate liquidity risk stems from deposit retention. Deposits decreased by $31.1 million in 2024. Critically, $134.5 million in Certificates of Deposit (CDs) are scheduled to mature in one year or less from December 31, 2024. That's a massive chunk of funding that needs to be re-priced or replaced, defintely impacting future interest expense. You can get a deeper look into the context of these numbers in Breaking Down Generations Bancorp NY, Inc. (GBNY) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at Generations Bancorp NY, Inc. (GBNY) to understand its future, but you must first understand the reality: the company's primary and final strategic move is a sale. The traditional idea of future growth-product innovations or market expansion-is obsolete here. The key insight for investors in 2025 is the cash value from the pending Purchase and Assumption Transaction (P&A Transaction) with ESL Federal Credit Union.

This P&A Transaction, which received all necessary regulatory approvals from the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA) in 2025, is set to close on January 1, 2026. This is the only growth driver that matters now, as it translates directly into a final, definitive return for shareholders.

Final Shareholder Value: The P&A Payout

The entire strategic focus for Generations Bancorp NY, Inc. in 2025 was managing this acquisition and subsequent liquidation. The P&A is an all-cash transaction, and shareholders are estimated to receive an aggregate of between $18.00 and $20.00 in cash for each share of common stock they own. This is a concrete, near-term return, not a projection based on future operations. Honestly, this is the best-case scenario for a regional bank struggling with profitability, as evidenced by its 2024 annual revenue of $7.65M, which was a -29.10% decrease from the prior year.

Here's the quick math on the expected distribution timeline:

• First Payment: The substantial majority of the per-share consideration is expected six to nine months following the January 1, 2026, closing.
• Second Payment: The balance of the consideration will be distributed six to nine months after the first payment.

Competitive Advantage and Earnings Context

The true competitive advantage here isn't in their community banking or insurance agency segments, but in the premium secured for the sale of the franchise. The final purchase price was agreed to be $26,500,000, though this amount is subject to adjustments at closing. This cash-out is a clean exit for investors.

The context for this sale is important. While one forecast projected revenue for the fiscal year ending December 2025 to be around $7.649 million, the company has been unprofitable, posting an earnings per share (EPS) of -$1.56 for the quarter ending December 2024 (reported March 26, 2025). This sale provides a clear, superior return compared to the uncertainty of a turnaround strategy in a challenging banking environment. The company is defintely not pursuing a traditional growth trajectory; it is liquidating.

For a deeper dive into the financial context that led to this decision, you should check out the full analysis at Breaking Down Generations Bancorp NY, Inc. (GBNY) Financial Health: Key Insights for Investors.

The final financial picture for Generations Bancorp NY, Inc. (GBNY) is not about future revenue growth, but about maximizing the cash distribution to shareholders through this definitive transaction. The table below summarizes the key financial figures that frame this exit strategy:

Your next step is simple: Monitor the news for the final closing of the P&A Transaction and the first distribution date. That's the only action that changes your decision now.