HONESDALE — Dimeco, Inc., parent company of The Dime Bank, reported net income of $4.4 million for the first six months of 2019, an increase of 22.9% over the same period in 2018. At this income level, return on average assets was 1.27% and return on average shareholders’ equity was 10.79%, an increase of 15.5% and 13.2%, respectively, over ratios reported for the first half of 2018.
Supporting these numbers was in an increase in net interest income of 9.1% and improvement in the efficiency ratio of 7.9%, resulting in a ratio of 64.93% at June 30, 2019.
Total assets were $710 million at June 30, 2019, an increase of $51 million or 7.7%, from one year earlier. Total deposits of $565 million were 14.8% greater than balances at June 30, 2018 with growth spread across checking, savings accounts, and certificates of deposits. Total loans of $523 million reflect an increase of 3.7% over one year earlier.
Despite some loan payoffs, the pace of both consumer and commercial loan originations are handsomely ahead of last year, and our loan pipeline remains healthy.
Due to continuing efforts to improve asset quality, nonperforming assets to total assets decreased 5.1% compared to this period in 2018 while net charge offs to average loans were negligible at .01% for the six months ended June 30, 2019. Stockholder’s equity of $84 million at June 30, 2019 was 11.5% greater than one year earlier, resulting in a healthy ratio of stockholders’ equity to assets of 11.89% at June 30, 2019.
President and Chief Executive Officer Gary C. Beilman enthusiastically stated, “It is my pleasure to present this Dimeco report showing several positive results for the period.
“I am very proud to note that this is the first quarter with total assets of over $700 million. Net income is up a solid 23% over this period in 2018, mainly attributable to the increase in all types of interest income along with reduced expenses related to other real estate owned and continued improvement in asset quality.
“This strong performance equates to very positive results for shareholders. Earnings per share rose 22.4% to $1.75 at June 30, 2019 from $1.43 at June 30, 2018. For the first half of 2019, Dimeco’s Board of Directors declared dividends of $.60 per share, 7.1% greater than those for the first half of 2018.
“The market price of Dimeco at June 30, 2019 increased 9.0% per share over one year earlier, to $40.88, producing a dividend yield of 2.94%. On a per share basis, the book value of Dimeco investment grew by 10.7% when comparing 2019 to 2018. As we move into the next half of 2019, we will remain vigilant in the management of our institution.”
Dimeco, Inc. is the holding company of The Dime Bank, a full-service financial institution serving Northeast Pennsylvania since 1905. Dimeco, Inc. trades on the OTC Pink Marketplace under symbol “DIMC”, operated by OTC Markets Group. For more information on Dimeco, Inc. and The Dime Bank, visit www.thedimebank.com.