Dimeco, Inc. logo

Proxy Statement

March 23, 2023

Dear Stockholder:

On behalf of the Board of Directors and management of Dimeco, Inc. (the “Company”), we cordially invite you to attend our 2023 Annual Meeting of Stockholders. The Annual Meeting will be held at the Support Center of the Dime Bank located at 1055 Texas Palmyra Highway, Honesdale, Pennsylvania, on Thursday, April 27, 2023, at 2:00 p.m. local time. The attached Notice of Annual Meeting and Proxy Statement describe the formal business we expect to act upon at the Annual Meeting. Our directors and officers will be present to respond to any questions stockholders may have.

Your vote is important, regardless of the number of shares you own and regardless of whether you plan to attend the Annual Meeting. We encourage you to read the enclosed proxy statement carefully and vote your proxy as promptly as possible because a failure to do so could cause a delay in the Annual Meeting and result in additional expense to the Company. We offer multiple methods for you to vote your shares. You may vote in person on the day of the Annual Meeting, online, by telephone or by mail. A postage-paid return envelope is enclosed for your convenience if you choose to return your proxy vote by mail.

Returning your proxy will not prevent you from voting in person, but it will assure that your vote will be counted if you are unable to attend the Annual Meeting. If you do decide to attend the Annual Meeting and want to change your vote at that time, you will be able to do so. If you are planning to attend the Annual Meeting, kindly let us know when you cast your vote.

Sincerely,

Peter Bochnovich
President and Chief Executive Officer

Dimeco, Inc.
820 Church Street
Honesdale, Pennsylvania 18431

Annual Meeting of Stockholder to be held April 27, 2023


Notice is hereby given that the Annual Meeting of Stockholders of Dimeco, Inc., will be held at the Community Room of the Chamber of the Northern Poconos located at 32 Commercial Street, Honesdale, Pennsylvania, on Thursday, April 27, 2023, at 2:00 p.m., local time, for the following purposes:

  1. To amend the Company’s Articles of Incorporation to increase the authorized shares of common stock from 5,000,000 shares to 7,500,000 shares;
  2. To elect four directors;
  3. To ratify the appointment of S.R. Snodgrass, P.C. as our independent auditors for the fiscal year ending December 31, 2023; and
  4. To transact any other business that may properly come before the Annual Meeting and any adjournments or postponements thereof.

The Board of Directors is not aware of any other business to come before the Annual Meeting. Stockholders of record at the close of business on February 28, 2023 are the stockholders entitled to vote at the Annual Meeting and at any adjournments thereof.

Your vote is very important, regardless of the number of shares you own. We encourage you to vote by proxy so that your shares will be represented and voted at the Annual Meeting even if you cannot attend. All stockholders of record can vote online, by telephone or by written proxy card. To obtain directions to attend the Annual Meeting and vote in person, please call Effie Slattery at 570-253-1970. However, if you are a stockholder whose shares are not registered in your own name, you will need additional documentation from your record holder to vote in person at the Annual Meeting.

By Order of the Board of Directors 

John F. Spall
Secretary

Honesdale, Pennsylvania
March 23, 2023

Proxy Statement
Dimeco, Inc.
820 Church Street
Honesdale, Pennsylvania 18431

Annual Meeting of Stockholders
To Be Held April 27, 2023

General

This Proxy Statement is being furnished to stockholders of Dimeco, Inc. by the Company’s Board of Directors in connection with its solicitation of proxies for use at the Annual Meeting of Stockholders to be held at the Support Center of the Dime Bank located at 1055 Texas Palmyra Highway, Honesdale, Pennsylvania, on Thursday, April 27, 2023, at 2:00 p.m., local time, and at any adjournments thereof. The 2022 Annual Report to Stockholders, including financial statements for the fiscal year ended December 31, 2022, and a form of proxy accompany this Notice of Annual Meeting of Stockholders and Proxy Statement, which are first being mailed to stockholders on or about March 23, 2023.

Voting and Proxy Procedures

Who Can Vote at the Annual Meeting
You are only entitled to vote at the Annual Meeting if our records show that you held shares of our common stock (the “Common Stock”) as of the close of business on February 28, 2023 (the “Record Date”). As of the Record Date, a total of 2,554,752 shares of Common Stock were outstanding. Each share of Common Stock has one vote in each matter presented.

Attending the Meeting
If you are a stockholder as of the close of business on February 28, 2023, you may attend the meeting. However, if you hold your shares in street name, you will need photo identification and proof of ownership to be admitted to the meeting. A recent brokerage statement or letter from a bank, broker or other nominee are examples of proof of ownership. If you want to vote your shares of the Company’s Common Stock held in street name in person at the meeting, you will have to get a written proxy in your name from the broker, bank or other nominee who holds your shares.

Quorum and Vote Required

Quorum.The Annual Meeting will be held only if there is a quorum. A quorum exists if a majority of the outstanding shares of Common Stock entitled to vote is represented at the meeting.

Votes Required for Proposals. In voting to amend the Company’s Articles of Incorporation to increase the authorized shares of common stock from 5,000,000 shares to 7,500,000 shares, you may vote in favor of the proposal, against the proposal or abstain from voting. The proposal will be decided by the affirmative vote of a majority of the votes cast at the Annual Meeting.

In voting for the election of directors, you may vote for a nominee, against a nominee or abstain from voting for a nominee. There is no cumulative voting for the election of directors. Directors must be elected by a plurality of the votes cast at the Annual Meeting. The term “plurality” means that the four nominees receiving the largest number of votes cast for election will be elected as directors.
In voting for the ratification of the appointment of S.R. Snodgrass, P.C., Certified Public Accountants (“S.R. Snodgrass, P.C.”), as our independent registered public accounting firm, you may vote in favor of the proposal, against the proposal or abstain from voting. This proposal will be decided by the affirmative vote of a majority of the votes cast at the Annual Meeting.

How We Count Votes. If you return valid proxy instructions, or attend the meeting in person, your shares will be counted for purposes of determining whether there is a quorum, even if you abstain from voting. Broker non-votes, if any, will also be counted for purposes of determining the existence of a quorum.
In the amendment of the Articles of Incorporation proposal, the election of directors’ proposal and the proposal relating to the ratification of the selection of the independent registered public accounting firm, abstentions and broker non-votes will have no effect on the votes.

Voting By Proxy

The Board of Directors is making available this Proxy Statement for the purpose of requesting that you allow your shares of Common Stock to be represented at the Annual Meeting by the persons named in the proxy card. All shares of Common Stock represented at the Annual Meeting by properly executed and dated proxy cards, online or telephone will be voted according to the instructions indicated. If you sign, date, and return a proxy card or submit your proxy online or by telephone without giving voting instructions, your shares will be voted as recommended by the Company’s Board of Directors.

If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered to be the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by your broker, bank, or nominee. As the beneficial owner, you have the right to direct your broker, bank, or other nominee on how to vote your shares by filling out the voting instruction form that accompanies your proxy materials.

The board of directors recommends a vote:

  • “FOR” the amendment of the Articles of incorporation proposal;
  • “FOR” the election of the Board’s four nominees to serve for a three-year term or until their successors are duly elected and qualified;
  • “FOR” ratification of S.R. Snodgrass, P.C. as our independent registered public accounting firm.
If any matter not described in this Proxy Statement is properly presented at the Annual Meeting, the persons named on the proxy card will use their own best judgment to determine how to vote your shares. The Company does not know of any other matters to be presented at the Annual Meeting.

You may revoke your proxy at any time before the vote is taken at the meeting. To revoke your proxy, you must either advise the Secretary of the Company in writing before your Common Stock has been voted at the Annual Meeting, deliver a signed later dated proxy or attend the meeting and vote your shares in person. Attendance at the Annual Meeting will not in itself constitute revocation of your proxy.

If your Common Stock is held in “street name,” you will receive instructions from your broker, bank, or other nominee that you must follow in order to have your shares voted. Your broker, bank or other nominee may allow you to deliver your voting instructions via mail, the Internet or telephone. Please see the instruction form provided by your broker, bank, or other nominee. If you wish to change your voting instructions after you have returned your voting instruction form to your broker, bank or other nominee, you must contact your broker, bank or other nominee.

Principal Holders of Our  Common Stock

A person is the beneficial owner of shares of Common Stock if he or she has or shares voting or investment power over the shares or has the right to acquire beneficial ownership of the shares at any time within 60 days from the Record Date. The following table sets forth information as of the Record Date with respect to the persons or groups known to the Company to beneficially own more than 5% of the Common Stock:

Dimeco, Inc.
Principal Holders of Our Common Stock

Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership (1) Percent of Shares of Common Stock Outstanding (%)
Henry M. Skier
820 Church Street Honesdale, Pennsylvania 18431
(1) See "Proposal 2. Election of Directors"
181,887 7.1%

Proposal 1. To amend the company’s articles of incorporation to increase the number of authorized shares of common stock

On February 23, 2023, the Board of Directors voted unanimously to submit for stockholder approval a proposed amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of common stock from 5,000,000 shares to 7,500,000 shares. The Board of Directors has declared the proposed amendment to be advisable and in the best interests of the Company and its stockholders and recommends that the stockholders approve the amendment. The text of the proposed amendment is set forth as Appendix A to this proxy statement.

Currently, the Company’s Articles of Incorporation authorizes the issuance of up to 5,000,000 shares of Common Stock. As of February 28, 2023, there were 2,554,752 shares of Common Stock issued and outstanding and approximately 504,000 shares reserved for issuance under the Company’s options, employee stock purchase, and employee stock bonus plans.

At this time, the Company has no present plans, understandings, or agreements for the issuance or use of the proposed additional shares of Common Stock. Nevertheless, the Board of Directors believes that the proposal is desirable so that, as the need may arise, the Company will have more financial flexibility and be able to issue shares of Common Stock, without the expense and delay of a special shareholders’ meeting, in connection with future opportunities for expanding the business through investments or acquisitions, possible stock splits or stock dividends, equity financing, management incentive and employee benefit plans, and for other general corporate purposes.

Authorized but unissued shares of the Company’s Common Stock may be issued at such times, for such purposes and for such considerations as the Board of Directors may determine to be appropriate without further authority from the Company’s stockholders, except as otherwise required by applicable corporate law or stock exchange policies.

Each share of Common Stock authorized for issuance has the same rights and is identical in all respects with each other share of Common Stock. The newly authorized shares of Common Stock will not affect the rights, such as voting and liquidation rights, of the shares of Common Stock currently outstanding. Under the Articles of Incorporation, stockholders do not have pre-emptive rights. Therefore, should the Board of Directors elect to issue additional shares of Common Stock, existing shareholders would not have any preferential rights to purchase those shares and such issuance could have a dilutive effect on earnings per share, book value per share, and the voting power and shareholdings of current stockholders, depending on the particular circumstances in which the additional shares of Common Stock are issued. The Board of Directors does not intend to issue any additional shares of Common Stock except on terms that it deems to be in the best interests of the Company and its shareholders. The Company currently has no current plans to issue newly authorized shares of Common Stock.

The issuance of additional shares of Common Stock by the Company also may potentially have an anti-takeover effect by making it more difficult to obtain shareholder approval of various actions, such as a merger. The proposed increase in the number of authorized shares of Common Stock could enable the Board of Directors to render more difficult an attempt by another person or entity to obtain control of the Company, though the Board of Directors has no present intention of issuing additional shares for such purposes and has no present knowledge of any such takeover efforts.

If the proposed amendment is adopted, it will become effective upon the filing of Articles of Amendment to the Company’s Articles of Incorporation with the Commonwealth of Pennsylvania. The affirmative vote of a majority of the votes cast required to approve the proposed amendment.

The Board of Directors unanimously recommends a vote “FOR” the approval of the amendment to the Company’s Articles of Incorporation to increase the total number of authorized shares of Common Stock from 5,000,000 shares to 7,500,000 shares.
 
Proposal 2. Election of Directors

Our bylaws require that directors be divided into three classes, as nearly equal in number as possible. Each class serves for a three-year term, with approximately one-third of the directors elected each year. The Board of Directors currently consists of eleven members, each of whom also serves as a director of The Dime Bank (the “Bank”). Four directors will be elected at the Annual Meeting, each to serve for a three-year term or until his successor has been elected and qualified.

The Board of Directors has nominated Gary C. Beilman, Brian T. Kelly, Thomas A. Peifer, and David D. Reynolds, M.D. (collectively, the “Nominees”) for election as directors for additional three-year terms. The Nominees currently serve as directors of the Company. The persons named as proxies in the enclosed Proxy Card intend to vote for the election of the Nominees. If any of the Nominees withdraws or is unable to serve (which the Board of Directors does not expect), or should any other vacancy occur in the Board of Directors, the persons named in the enclosed Proxy Card intend to vote for the election of the person or persons that the Nominating Committee may recommend to the Board of Directors. If there is no substitute nominee, the size of the Board of Directors may be reduced.

The following table sets forth the names, ages, positions with the Company, terms of, and length of board service, numerical and percentage beneficial ownership of the Common Stock for each of the Nominees, each director continuing in office and each executive officer who is not a director as of the Record Date.

Beneficial ownership of the directors and executive officers of the Company, as a group, is also set forth below:

Dimeco, Inc.
Beneficial Ownership of Executive Officers And Directors

Board Nominees for Terms To Expire In 2026
Name and Positions with Company Age (1) Year First Elected or Appointed (2) Current Term To Expire Shares of Common Stock Beneficially Owned (1)(3) Percent Owned
Gary C. Beilman - Director 68 2005 2023 31,332 1.2%
Brian T. Kelly - Director 52 2018 2023 4,356 *
Thomas A. Peifer - Director 80 1993 2023 48,437 1.9%
David D. Reynolds, M.D. - Director 59 2015 2023 27,635 1.1%

Directors Continuing in Office
Name and Positions with Company Age (1) Year First Elected or Appointed (2) Current Term To Expire Shares of Common Stock Beneficially Owned (1)(3) Percent Owned
Peter Bochnovich - President, Chief Executive Officer and Director
61
2020 2024 11,980 *
Barbara J. Genzlinger -Director
71
1998 2024 19,540 *
John S. Kiesendahl - Director, Chairman of the Board 76 1993 2024 37,889 1.5%
John F. Spall - Director, Secretary 76 1999 2024 72,580 2.8%
Gregory J. Frigoletto - Director 53 2018 2025 4,354 *
Henry M. Skier - Director 82 1993 2025 181,887 7.1%
Todd J. Stephens - Director, Vice Chairman of the Board 53 2010 2025 14,680 *

Executive Officers Who Are Not Directors
Name and Positions with Company Age (1) Year First Elected or Appointed (2) Current Term To Expire Shares of Common Stock Beneficially Owned (1)(3) Percent Owned
William R. Boyle - Senior Vice President, Chief Lending Officer 63 - - 3,628 *
Jeffrey J. Roche - Senior Vice President, Chief Financial Officer, Treasurer and Asst. Secretary 53 - - 4,697 *
Directors, nominees and named executive officers of the Company
(13 persons)
- - - 462,995 18.0%

(1) As of Record Date.
(2) Refers to the year the individual first became a director of the Company.
(3) The share amounts include 300 shares for Mr. Beilman, 2,300 shares for Mr. Kelly, 2,600 shares for Dr. Reynolds, 720 shares for Mr. Bochnovich, 300 shares for Ms. Genzlinger, 2,530 shares for Mr. Frigoletto, 100 share for Mr. Stephens, 450 shares for Mr. Boyle, and 2,950 shares for Mr. Roche that may be acquired through the exercise of stock options within sixty days of the Record Date under the stock option plans.
* Less than 1% of Common Stock outstanding.

Biographical Information

The following biographies of each of the nominees and continuing directors contain information regarding the person’s service as a director, business experience, director positions held currently or at any time during the last five years, and information regarding involvement in certain legal or administrative proceedings, if applicable.

Nominees For Director:

Gary C. Beilman is retired. Prior to Mr. Beilman’s retirement, he served as the President and CEO of the Dime Bank as well as other various capacities. Mr. Beilman provides knowledge and experience of over forty years in the financial services industry. He is actively involved in numerous community, charitable and civic organizations.

Brian T. Kelly is a Certified Public Accountant and owner of Brian T. Kelly CPA & Associates, LLC with offices in Carbondale, Honesdale, and Old Forge. He has over twenty-seven years of experience in public accounting, providing audit, tax, and consulting services to various clients. He is actively involved in numerous professional and civic organizations.

Thomas A. Peifer is retired. Prior to his retirement in 2001, Mr. Peifer was Superintendent of the Wallenpaupack Area School District in Hawley, Pennsylvania which provided him personal relationships with numerous area residents who comprise a significant portion of our marketplace. He was the President of Metlag, Inc., a franchised retail Agway store, a business that he sold in 2014. As a local businessman and lifetime resident of Pike County, he provides knowledge of this market area in which we operate two branch locations. This proficiency is further enhanced by his numerous community and civic affiliations.

David D. Reynolds, M.D. AGAF is the President and Chief Executive Officer of Northeastern Gastroenterology Associates, President, Chief Executive Officer and Medical Director of Mountain Laurel Surgical Center and Maple City Anesthesia, LLC, and a partner of SGR Real Estate. He is board certified in gastroenterology and is active in numerous medical organizations.

The Board of Directors unanimously recommends a vote “FOR” the election of the above nominees.

Continuing Directors:

Peter Bochnovich is the President and Chief Executive Officer of the Company and Bank. Mr. Bochnovich was appointed President and Director on January 1, 2020. He was previously appointed Chief Executive Officer on September 1, 2019. Prior to September 2019, Mr. Bochnovich served the Company and Bank in various capacities. He has been employed in the financial services industry for over thirty-five years. He is actively involved in numerous community, charitable and civic organizations.

Barbara J. Genzlinger is one of the original founders in the early 1980s of The Settlers Inn, a country inn located in Hawley, Pennsylvania. Ms. Genzlinger is personally involved in various hospitality businesses daily and interacts regularly with many area residents. She is active in numerous community and civic organizations along with a national innkeepers’ organization.

John S. Kiesendahl is the Vice President of Woodloch Pines Inc., a resort located in Hawley, Pennsylvania since 1981. He is a principal in certain businesses associated with the resort. Mr. Kiesendahl has been a member of the Bank’s Board of Directors since 1985 and has been an active member or chair of several committees. His extensive business experience in the operation of a family resort, its affiliated golf course, world-class spa, and residential community includes all aspects of the business including hospitality operations, real estate development and financing.

John F. Spall is an attorney, practicing in Hawley, Pennsylvania since 1971. Mr. Spall has been active in all phases of the legal profession for over fifty years with an emphasis on real estate transactions. He is a former solicitor for numerous municipalities and has been Assistant District Attorney for Wayne County. He currently serves as President of the Wallenpaupack Area School District Board of Education.

Gregory J. Frigoletto is the District Superintendent of Wayne Highlands School District and long-time resident of Wayne County. He has an extensive background serving our community with over twenty-five years in the field of education at Wayne Highlands School District, including over twenty years as an administrator. He is actively involved in numerous local charitable and civic organizations.

Henry M. Skier is President of A.M. Skier Agency, Inc., an insurance agency, located in Hawley, Pennsylvania since 1973. Mr. Skier has been a member of the Bank’s Board of Directors since 1982. He has participated in many Board committees during his tenure on the board. He is a lifelong resident of Honesdale and is involved in numerous community and civic affairs in Wayne County along with involvement in various summer camping organizations. His business, A.M. Skier Agency, Inc., is one of the largest independent insurers of children’s summer camps in the United States. Additionally, Mr. Skier has been a founder, director, and officer in numerous camp related entities on both the state and national levels. As such, he brings to the Board an expertise regarding this industry in which the Bank has a loan concentration.

Todd J. Stephens was born and raised in Wayne County, Pennsylvania. He is the Chief Operating Officer for the Medical Shoppe, LTD, parent company of Stephens Pharmacy and Northeast Med-Equip., holding this position since 2007. He is also the founder and managing partner of Northeast Accessibility, a provider of specialty equipment and solutions for persons with limited mobility. Prior to that, he was employed with Boston Coach Corp., a wholly owned subsidiary of Fidelity Investments. During his tenure with that Company, he rose to the level of Senior Vice President with responsibilities for national operations, directing marketing and commerce efforts and managing a national sales organization.

Business Background of Our Executive Officers Who Are Not Directors

The business experience for the past five years of each of the Company’s executive officers who are not a director is set forth below. Unless otherwise indicated, the executive officer has held his or her position for more than the past five years.

William R. Boyle is Senior Vice President of the Company and the Bank and is also Assistant Secretary of the Bank. He serves as the Chief Lending Officer and Chief Credit Officer of the Bank. He has served the Company and Bank in various capacities since joining in 2012.

Jeffrey J. Roche is Senior Vice President of the Company and the Bank and is also Assistant Secretary of the Company and Treasurer of the Company and the Bank. He serves as the Chief Financial Officer of the Bank since 2021 and was Controller for four years since joining in 2017.

Corporate Governance

Committees of the Board of Directors

Nominating Committee. The Nominating Committee is comprised of Directors Reynolds, Skier, Stephens, and Spall, each of whom is considered independent under the rules of The NASDAQ Stock Market. Although this is not a standing committee, the Board believes that its procedures are sufficient to ensure that its nominees are approved by a majority of the independent directors. The independent directors met three times as a Nominating Committee during the fiscal year ended December 31, 2022.

Compensation Committee. The 2022 Compensation Committee was comprised of Directors Kiesendahl, Skier and Stephens, each of whom was considered independent under the rules of The NASDAQ Stock Market. Decisions regarding the compensation of our executives are made by the Compensation Committee. They have the strategic and administrative responsibility for ensuring that key management employees are compensated effectively in addition to oversight of all executive compensation plans and employee benefits. The Committee met three times during the fiscal year ended December 31, 2022.

Audit Committee. The Audit Committee was comprised of Directors Beilman, Kelly, Peifer and Reynolds. The Audit Committee is a standing committee that is responsible for developing and maintaining the Company’s and the Bank’s audit program. The Company believes that all members of the Audit Committee qualify as independent directors under the rules of The NASDAQ Stock Market including the specific independence requirements for Audit Committee members. The Committee also meets with the independent auditors to discuss the results of the annual audit and any related matters. The Committee met four times during fiscal year ended December 31, 2022.

Communications with Directors
 
Stockholders who wish to communicate with the Board of Directors should send their communications to the Secretary at the Company’s main office, PO Box 509, Honesdale, Pennsylvania 18431.

Director Compensation

Set forth below is a table providing information concerning the compensation of the non-employee directors of the Company for the last completed fiscal year. There was no other compensation paid during the last fiscal year.

Name(1)(2)
Fees Earned
or Paid in Cash
Stock Awards (3)
Option Awards (4)
All other
Compensation (5)(6)
Total
Gary C. Beilman $40,000 $5,333 $13,332 $330 $58,995
Gregory J. Frigoletto $40,000 $5,333 $13,332 $204 $58,869
Barbara J. Genzlinger $40,000 $5,333 $13,332 $330 $58,995
Brian T. Kelly $40,000 $5,333 $13,332 $3,781 $62,446
John S. Kiesendahl $40,000 $5,333 $13,332 $330 $58,995
Thomas A. Peifer $40,000 $5,333 $13,332 $330 $58,995
David D. Reynolds, M.D.  $40,000 $5,333 $13,332 $3,438 $62,103
Henry M. Skier $40,000 $5,333 $13,332 $330 $58,995
John F. Spall $40,000 $5,333 $13,332 $330 $58,995
Todd J. Stephens $40,000 $5,333 $13,332 $330 $58,995

(1) Director Peter Bochnovich, as the Company's President and Chief Executive Officer in 2022, did not receive any additional remuneration as a director.
(2) Non-employee directors.
(3) Based on the aggregate grant date fair value of the restricted stock award computed in accordance with FASB ASC Topic 718. For assumptions used in determining the grant date fair value of the stock awards see Note 12 of Notes to the Consolidated Financial Statements in the 2022 Annual Report to Stockholders. At December 31, 2022, Mr. Beilman, Mr. Frigoletto, Mrs. Genzlinger, Mr. Kelly, Mr. Kiesendahl, Mr. Peifer, Dr. Reynolds, Mr. Skier, Mr. Spall and Mr. Stephens each had 120 shares of restricted stock. These awards vest in three equal installments over a three-year period.
(4) Based on the aggregate grant date fair value of the award computed in accordance with FASB ASC Topic 718. For assumptions used in determining the grant date fair value of the stock options see Note 12 of Notes to the Consolidated Financial Statements in the 2022 Annual Report to Stockholders. Directors stock option awards outstanding at December 31, 2022 were: 300 each for Mr. Beilman, Mr. Frigoletto, Mrs. Genzlinger, Mr. Kelly, Mr. Kiesendahl, Mr. Peifer, Dr. Reynolds, Mr. Skier, Mr. Spall and Mr. Stephens.
(5) Cash dividends of $882 paid on unvested 2020 granted restricted stock awards and $2,040 paid on unvested 2021 granted restricted stock awards.
(6) Travel expenses of $3,577 were reimbursed to Mr. Kelly for travel related to conference attendance and travel expenses of $3,234 were reimbursed to Dr. Reynolds for travel related to conference attendance

For the year ended December 31, 2022, the annual retainer fee paid to each non-employee director was $40,000, regardless of meeting attendance. There are no additional fees paid in connection with attendance at board or committee meetings. Directors’ fees are paid by the Bank, on whose board each director sits; no additional fees are paid for service as a director of the Company. No other compensation was paid to the above-named directors in 2022.

Proposal 2. Ratification of Independent Auditors

S.R. Snodgrass, P.C. was the Company’s independent public accountants for the 2022 fiscal year. The Board of Directors has appointed Snodgrass to be its accountants for the fiscal year ending December 31, 2023 and is seeking ratification by the Company’s stockholders of such appointment. A representative of S.R. Snodgrass, P.C. is expected to be available at the Annual Meeting to respond to stockholders’ questions and will have the opportunity to make a statement if they so desire.

The Board of Directors unanimously recommends that stockholders vote “FOR” the ratification of the appointment of S.R. Snodgrass, P.C. as the Company’s independent auditors for the 2023 fiscal year.

Stockholder Proposals

In order to be considered for possible action by stockholders at the 2024 Annual Meeting of Stockholders, stockholder nominations for director and stockholder proposals must be submitted to the Secretary at the Company’s main office, PO Box 509, 820 Church Street, Honesdale, Pennsylvania 18431, no later than February 26, 2024.

Stockholders Sharing a Single Address

Only one copy of this Proxy Statement and the accompanying Annual Report to Stockholders is being delivered to multiple stockholders sharing an address unless the Company has previously received contrary instructions from one or more of such stockholders. On written or oral request to Dimeco, Inc., PO Box 509, 820 Church Street, Honesdale, Pennsylvania 18431, (570) 253-1970, the Company will deliver promptly a separate copy of this Proxy Statement and the Annual Report to Stockholders at a shared address to which a single copy of the documents was delivered. Stockholders sharing an address who wish, in the future, to receive separate copies or a single copy of our proxy statements and annual reports should provide written or oral notice to the Secretary at the address and telephone number set forth above.

Miscellaneous

The cost of soliciting proxies will be borne by the Company. The Company will reimburse brokerage firms and other custodians, nominees and fiduciaries for reasonable expenses incurred by them in sending proxy materials to the beneficial owners of Common Stock. In addition to solicitations by mail, directors, officers, and regular employees of the Company may solicit proxies personally or by e mail or telephone without additional compensation.

By Order of the Board of Directors 

John F. Spall
Secretary

Honesdale, Pennsylvania
March 23, 2023