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Dimeco, Inc. announces first quarter 2021 earnings

Posted 4/29/21

HONESDALE, PA - Dimeco, Inc. (DIMC), the holding company for The Dime Bank, reported unaudited results for the first quarter of 2021.

On March 31, total assets were $935 million, an increase of …

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Dimeco, Inc. announces first quarter 2021 earnings

Posted

HONESDALE, PA - Dimeco, Inc. (DIMC), the holding company for The Dime Bank, reported unaudited results for the first quarter of 2021.

On March 31, total assets were $935 million, an increase of $177 million or 23.3% from the $759 million reported on March 31, 2020. Total loans, the largest component of assets, were $683 million at March 31, up 21.4% over one year prior. Payroll Protection Program (PPP) loans and commercial loan demand were large drivers in the loan growth.

The investment portfolio grew 23.0% as part of management's strategy to manage excess liquidity and bolster interest income. On the liability side, deposits balances also grew from one year earlier to $742 million, up $167 million or 29.1%, mainly due to government stimulus programs. The deposit growth was reflected in all categories except certificates of deposits as customers are opting to move their money into checking and savings accounts or the stock market.

Net income of $2.6 million was $786 thousand or 42.7% greater than the comparative period in 2020. The increase was due to PPP loan fee income, greater net interest income, and increased non-interest income. The provision for loan loss was also $300 thousand lower than the same period in the prior year. Net income at this level resulted in a return on average assets of 1.15% and a return on average equity of 10.88%, up 15.0% and 31.2%, respectively.

Stockholders' equity of $96 million represented growth of 9.4% over balances a year earlier, reinforcing a strong capital position. Dividends declared of $.34 per share is an increase of 3.0% over that of the first quarter 2020. This produced a dividend yield of 3.78% or 2.4% higher than the year prior.

President and Chief Executive Officer Peter Bochnovich stated, “I am pleased to present the financial position of Dimeco, Inc. for the first quarter of 2021. As we continue to operate through the pandemic, our primary goal remains the health and safety of our staff and customers. As situations present themselves, decisions need to be made quickly, and I am happy to report the entire Dime Bank staff adapted and handled these circumstances efficiently. As 2021 progresses, and more people get vaccinated, we hope for a return to a sense of normalcy. We are excited about the upcoming construction of our new Greentown branch and look forward to servicing customers in this new location. We welcome all in the community to consider investment in Dimeco, Inc. and we thank our customers, shareholders, and staff for their patience and continued support during these uncertain times.”

For more information on Dimeco, Inc. and The Dime Bank, visit www.thedimebank.com.

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