HONESDALE — Dimeco, Inc. (OTC Pink: DIMC), the holding company for The Dime Bank, released unaudited financial results for the quarter and fiscal year ending December 31, 2018.
Dimeco, Inc.’s 2018 net income of $8 million increased $2.6 million, or 47.8%, over income reported for 2017. Net interest income of $25.1 million showed an increase of 3.8% over the year before as interest rates increased during 2018. Also contributing to the net income increase is the favorable federal tax rate changes that began in 2018. At this income level, the return on average assets was 1.21% and the return on average equity was 10.48%, an increase of 45.8% and 43.6%, respectively, from the 2017 ratios.
Dimeco, Inc.’s balance sheet ended the year with total assets of $694.8 million at December 31, 2018, an increase of $39.3 million, or 6.0%, from the balance at the end of 2017. Deposit growth remained steady throughout the year with total deposits increasing $34.2 million or 6.9%, finishing the year at $532.4 million. The loan portfolio increased nearly $13 million, or 2.50%, from balances the year prior, to end the year at $523.3 million. Loan asset quality continued to improve with a decline of 29.5% in the nonperforming assets to total assets ratio, ending the year at 1.36% while net charge-offs to average loans declined 103.0%. The allowance for loan losses as a percent of loans was 4.0% greater than a year earlier, ending the year at 1.55%.
President and Chief Executive Officer Gary C. Beilman noted, “In spite of the attractiveness of the securities market, customers increased their deposits with us. Also, the loan portfolio grew handsomely in the fourth quarter of 2018. We attained the highest total assets in Dimeco’s history at almost $695 million. Our efforts to improve asset quality resulted in good news with improved ratios indicating that the Company continues to be headed in the right direction.”
Stockholders’ equity of $79.6 million at December 31, 2018 represented growth of $5.1 million or 6.9% over balances a year earlier with a ratio of stockholders’ equity to assets of 11.5%.
Dividends increased 8.6% in 2018 as compared to 2017, amounting to $1.14 per share for 2018. The market value of our shares was $40.75 at December 31, 2018, 14.8% higher than the December 31, 2017 price.
Dimeco, Inc. is the holding company of The Dime Bank, a full service financial institution serving Northeastern Pennsylvania. The Bank trades on the OTC Pink Marketplace under symbol “DIMC”, operated by OTC Markets Group. For more information on Dimeco, Inc. and The Dime Bank, visitwww.thedimebank.com.