Honesdale, Pennsylvania/ April 25, 2016/ Dimeco, Inc. (DIMC), the holding company for The Dime Bank, reported unaudited results for the first quarter of 2016. Total assets were $623 million at March 31, 2016, an increase of $20 million over balances for the same quarter of 2015. Fueling this growth was an increase in total loans of $17 million primarily due to originations of commercial and commercial real estate loans granted to customers in various industries. Total deposits were $493 million at March 31, 2016, $4 million greater than balances a year earlier. The bank continued to promote checking and savings accounts, including the Kasasa product line and recognized an increase of $9 million dollars in noninterest-bearing deposits over balances a year earlier.
Net income of $1.5 million for the first quarter of 2016 was 30.2% greater than the same period in 2015 and resulted in a return on average assets of .97% and a return on average equity of 8.70%; both ratios 26% greater than the first quarter of 2015. Net interest income increased $189 thousand, or 3.5% from the same quarter of 2015. A decrease of $400 thousand, or 53%, in the provision for loan losses expense had the most significant affect to net income. Nonperforming assets as a percentage of total assets was reduced by 28% and now stands at 2.66%. Management feels the measures the Company took to address classified assets at the end of 2015 are shown in these results and represent the beginning of a turnaround in performance for the year 2016.
Maintaining a strong capital position, stockholders’ equity was $69 million at March 31, 2016, representing growth of 3% over balances a year earlier. The ratio of stockholders’ equity to assets was 11.12% at March 31, 2016. Dividends remained solid, amounting to $.38 per share for each of the periods ended March 31, producing a dividend yield of 3.83% in 2016 and 3.72% in 2015.
Gary C. Beilman, president and chief executive officer, stated “It is my pleasure to make this report of Dimeco, Inc. for the first quarter of 2016. From the positive operating results noted above, it certainly appears that we are headed in the right direction as we complete our 110th anniversary. Our institution was chartered on December 16, 1905, and began banking operations on January 2, 1906. We are proud of the prosperity, growth, and contributions to our marketplace over this impressive timeframe. This first quarter is reflective of a return to performance levels to which we were accustomed. Our quest is to continue the trend with which we began this milestone year.”
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.
Source: Dimeco, Inc. / April 25, 2016 / Deborah Unflat