Stock Listing – DIMC
Dividend Reinvestment Plan
The Company offers a plan for stockholders to automatically reinvest their dividends in shares of common stock along with the opportunity to purchase additional stock. There are no brokerage commissions or fees imposed. For more information, contact the Transfer Agent listed above.
Dimeco, Inc. Stock Market Makers
Boenning & Scattergood, Inc.
FIG Partners, LLC
Raymond James & Associates
Stifel, Nicolaus & Company, Inc.
John S. Kiesendahl, Chairman
Todd J. Stephens, Vice Chairman
Gary C. Beilman, President
John F. Spall, Secretary
Gregory J. Frigolettop
Barbara J. Genzlinger
Brian T. Kelly
Thomas A. Peifer
David D. Reynolds, M.D.
Henry M. Skier
I am pleased to present this 2019 year-end financial report for Dimeco, Inc. The year was very successful for the Company both in terms of balance sheet growth and improved net income.
Total assets grew by $38 million, or 5.5% compared to balances a year earlier. The loan portfolio increased $29 million, or 5.6% which was primarily comprised of commercial and commercial real estate loans granted to customers in diverse industries. Funds not needed for loans were invested in securities to gain higher yields and a better return position, resulting in a portfolio increase of $11 million or 9.5%.
Deposits increased $48 million, or 9.0% over prior year balances. Several types of deposits expanded over the period with the majority in certificates of deposit, due to special offerings throughout the year. The other category that showed substantial growth was interest-bearing checking accounts. Growth into this deposit category was mostly due to the transfer of securities sold under agreement to repurchase (sweep accounts) during the first half of the year. The transition of those balances to transaction accounts also served to decrease other borrowed funds.
Net income of $8.7 million for 2019 was $741 thousand, or 9.3% greater than 2018. At this level, we are proud of the return on average assets of 1.23% and the return on average equity of 10.38%. Your Company is dedicated to remaining a high performing bank and we believe these ratios are strong. This growth comes primarily from net interest income, showing an increase of $1.8 million, 7.2% greater than the previous year. We recognized additional interest income from rising rates on variable rate loans, new loan originations and securities purchases. Higher rates also impacted interest expense causing an increase of $1.8 million, mainly on new certificates of deposit and additional borrowings. The increased number of interest-bearing deposits also contributed to the greater interest expense. Noninterest income was augmented from several sources, with the largest attributed to gains on the sale of securities from restructuring part of the investment portfolio. Noninterest expense grew 4.5% from a year earlier. In 2019, we were able to hire well qualified people for key positions creating an increase in payroll and benefits. Also, we engaged an outside firm to assist in improving noninterest income; the outcome of this effort will be realized in 2020 and ongoing years.
The Board of Directors declared total dividends of $1.23 per share, an increase of 7.9% over 2018. The book value of our stock increased 9.2% while the market price of our stock increased 3.3%.
In the fourth quarter, a Limited Production Office was opened in Milford, PA to offer expanded lending opportunities in Pike County. We hired a seasoned lender for this location and expect to increase volume in that market.
Thank you for your investment in our institution. Please consider recommending us to others for investment in our stock and use of our banking and wealth management services. I welcome your questions or comments.
Executive Vice President & Chief Executive Officer