- Dimeco, Inc., “the Company” reported unaudited financial results for the first quarter of 2014.
At March 31, 2014, total assets were $602 million, relatively constant from those of one year earlier. Both loans and deposits were slightly less than balances last year.
Total loans at March 31, 2014 were $466 million and deposits were $486 million. Stockholders’ equity of $63 million represented growth of 4.4 percent over balances a year earlier.
The first quarter of each year is typically the Company’s slowest with this holding true for the first quarter of 2014.
Net income of $1.4 million resulted in a return on average assets of .95 percent and a return on average equity of 9.14 percent.
The level of net income for this quarter of 2014 was $157 thousand lower than the comparative period in 2013 due in part to the current low interest rate environment.
As the economy continues its sluggish return to higher interest rates, the Company is experiencing tightened spreads on net interest earnings.
Noninterest income was 22.6 percent lower in the first quarter of 2014 compared to a year earlier. A slowdown in residential mortgage refinancing activity resulted in $159 thousand lower gains on the sales of these loans in the secondary market.
In addition, sales of investment securities resulted in a gain of $182 thousand in 2013 that were not matched in 2014.
The Wealth Management division partially offset this decline in noninterest income by increasing its income by $93 thousand over income earned in the first quarter of 2013.
Gary C. Beilman, president and chief executive officer of the Company, stated “It is with pleasure that I am able to report this financial information.
“Dimeco, Inc. has consistently performed at a high level compared to peer institutions. We continue to address asset quality issues, which affect the results of operations, but we firmly believe that we are handling these issues in a positive manner and that the actions we are currently pursuing will position the Company for increased income in periods to come.
“We look forward to the upcoming quarters of the year with the anticipation of more economic activity in our marketplace.”
Dimeco, Inc., is the holding company of The Dime Bank, a full service financial institution serving Northeast Pennsylvania.
For more information on Dimeco, Inc. and The Dime Bank, visit www.thedimebank.com.