Dimeco Inc (DIMC) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2012

NEWS RELEASE

TO BUSINESS EDITOR

DIMECO, INC. ANNOUNCES 2012 FINAL QUARTER EARNINGS

Honesdale, Pennsylvania/ January 22, 2013/ Dimeco, Inc. (OTCBB: DIMC), the holding company for The Dime Bank, released unaudited financial results for the year 2012.

Dimeco, Inc., the “Company”, continued sound, planned growth to end the year with $603,605,000 in total assets, an increase of $21,711,000 or 3.7% over balances one year earlier, with the loan portfolio ending the year at $474,762,000 or 6.2% over balances at December 31, 2011. During 2012 deposits increased $16,301,000 or 3.4% to end the year at $500,585,000. Stockholders’ equity of $59,937,000 at December 31, 2012 represented an increase of 8.8% over a year earlier.

Net income for 2012 was $6,614,000, an increase of $1,278,000 or 24.0% over income reported for the year 2011. The major contributor to this growth was net interest income of $21,725,000, which was $1,955,000 or 9.9% greater than the previous year. At this level of income, the Company reported a return on average assets of 1.10% and a return on average equity of 11.42% for 2012, representing an increase of 14.6% and 13.7%, respectively, over 2011. As a measure of asset quality, the ratio of nonperforming assets to total assets decreased by 14.1% to 3.29% at December 31, 2012, and the allowance to loan loss as a percentage of total loans increased by 3.8% to end 2012 at 1.93%.

Earnings per share for the year ended 2012 were $4.12, an increase of 23.4% over earnings for 2011. Dividends remained solid, amounting to $1.46 per share in 2012, an increase of 1.4% over 2011, producing a dividend yield of 4.03%.

Gary C. Beilman, president and chief executive officer, stated “I am pleased to present our fourth quarter report; 2012 was a year of many positive results beginning with continued growth in assets, loans, and deposits as noted above. Secondly, our significant net income increase of 24% over last year resulted in double digit increases in both our return on average assets and return on average equity ratios. Furthermore, the shareholders equity to assets ratio increased by nearly 5% and book value per share is up 7%. The market value per share has expanded by more than 8% to $36.25. In addition to these highlights, our Board approved an increase in dividends, from $.36 to $.38 per share for the fourth quarter, representing annualized growth of 6% in dividends over that of the previous quarter.

Management is currently taking several steps to improve asset quality; we expect that these efforts will continue for some time before our desired quality goals are achieved.

With our application to the Securities and Exchange Commission to allow the Company to de-register our shares, our intention is to expand upon the information provided in quarterly reports. We are appreciative of continued loyalty and investment in Dimeco and we welcome comments or questions from the community and our shareholders.”

Dimeco, Inc. is the holding company of The Dime Bank, a full service financial institution serving northeastern Pennsylvania and Sullivan County New York. For more information on Dimeco, Inc. and The Dime Bank, visit www.thedimebank.com.

Source: Dimeco, Inc. / January 22, 2013 / Deborah Unflat