<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
--------------- -------------
Commission file Number 33-58936
Dimeco, Inc.
-------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2250152
- ----------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
820 Church Street
Honesdale, PA 18431
-------------------
(Address of principal executive offices)
(717) 253-1970
--------------------
(Issuer's Telephone Number)
N/A
-------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Sections
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has
been
subject to such filing requirements for the past 90 days.
Yes X No
----- ------
As of November 1, 1996, there were 721,905 shares outstanding of the issuer's
common stock with an aggregate market value of approximately $16,242,863.
<PAGE>
Dimeco, Inc.
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet (unaudited)
as of September 30, 1996 and December 31, 1995 3
Consolidated Statement of Income (unaudited)
for the three months and the nine months ended
September 30, 1996 and 1995 4
Consolidated Statement of Change in
Stockholders' Equity (unaudited)
for the nine months ended
September 30, 1996 5
Consolidated Statement of Cash Flows (unaudited)
for the nine months ended September 30, 1996 and 1995 6
Notes to Consolidated Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Default Upon Senior Securities 14
Item 4. Submissions of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
2
<PAGE>
Dimeco, Inc.
CONSOLIDATED BALANCE SHEET (Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Assets
Cash and due from banks $ 1,526,536 $ 1,231,674
Interest-bearing deposits in other banks 3,780,380 1,970,017
Federal funds sold and securities purchased
under agreements to resell 1,293,813 5,920,000
----------- -----------
Total cash and cash equivalents 6,600,729 9,121,691
Mortgage loans held for sale 299,440 464,588
Investment securities held to maturity
(market value $16,053,442 and $9,357,890) 15,968,178 9,267,390
Investment securities available for sale 11,044,527 11,453,419
Loans (net of unearned income of $1,953,466
and $2,150,429) 95,589,481 89,656,264
Less allowance for loan losses 1,246,819 1,247,629
----------- -----------
Net loans 94,342,662 88,408,635
Premises and equipment, net 3,012,970 2,960,622
Other real estate 576,019 389,422
Accrued interest receivable 1,016,346 943,319
Other assets 1,910,921 1,799,179
----------- -----------
TOTAL ASSETS $ 134,771,792 $ 124,808,265
=========== ===========
Liabilities
Deposits:
Noninterest-bearing $ 14,273,776 $ 12,352,292
Interest-bearing 106,704,878 97,525,940
----------- -----------
Total Deposits 120,978,654 109,878,232
Securities sold under agreements to repurchase - 2,050,000
Accrued interest payable 473,412 568,413
Other liabilities 494,113 568,578
----------- -----------
TOTAL LIABILITIES 121,946,179 113,065,223
----------- -----------
Stockholders' Equity
Common stock, $.50 par value; 3,000,000 shares
authorized, 720,159 and 708,449 shares issued
and outstanding 360,079 354,225
Capital surplus 2,519,326 2,303,241
Retained earnings 9,996,734 9,076,350
Net unrealized gain (loss) on securities
available for sale (50,526) 9,226
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 12,825,613 11,743,042
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 134,771,792 $ 124,808,265
=========== ===========
</TABLE>
See accompanying notes to the consolidated financial statements.
3
<PAGE>
Dimeco, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
------------------ -------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME
Interest and fees on loans $ 2,112,412 $2,032,370 $6,375,237 $5,811,315
Interest-bearing deposits in other banks 4,668 2,581 17,002 7,831
Federal funds sold and securities
purchased under agreements to resell 64,726 89,382 316,504 125,065
Investment securities:
Taxable 281,012 224,670 660,021 753,636
Exempt from federal income tax 82,932 92,546 244,583 261,403
---------- --------- --------- ---------
Total interest income 2,545,750 2,441,549 7,613,347 6,959,250
---------- --------- --------- ---------
INTEREST EXPENSE
Deposits 1,099,625 1,035,910 3,246,860 2,944,899
Borrowed funds - - - 14,811
Securities sold under agreements
to repurchase - 32,227 58,636 53,750
---------- --------- --------- ---------
Total interest expense 1,099,625 1,068,137 3,305,496 3,013,460
---------- --------- --------- ---------
NET INTEREST INCOME 1,446,125 1,373,412 4,307,851 3,945,790
Provision for loan losses 138,000 69,000 411,000 239,250
---------- --------- --------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,308,125 1,304,412 3,896,851 3,706,540
---------- --------- --------- ---------
OTHER INCOME
Service charges on deposit accounts 51,928 46,736 158,632 132,600
Gain (loss) on loans held 28,472 (17,212) (7,612) 19,673
Gain on sale of securities - - 59,257 -
Other operating income 129,232 123,595 326,949 307,707
---------- --------- --------- ---------
Total other income 209,632 153,119 537,226 459,980
---------- --------- --------- ---------
OTHER EXPENSES
Salaries and employee benefits 480,259 481,143 1,437,441 1,299,189
Occupancy expense, net 65,687 62,545 206,172 164,376
Deposit insurance premiums 500 (6,603) 1,500 107,994
Furniture and equipment expense 57,108 55,276 185,291 157,823
Other operating expense 266,665 286,484 852,595 792,198
---------- --------- --------- ---------
Total other expenses 870,219 878,845 2,682,999 2,521,580
---------- --------- --------- ---------
Income before income taxes 647,538 578,686 1,751,078 1,644,940
Income tax expense 200,000 171,000 529,000 497,000
---------- --------- --------- ---------
NET INCOME $ 447,538 $ 407,686 $1,222,078 $1,147,940
========== ========= ========= =========
NET EARNINGS PER SHARE $ 0.62 $ 0.58 $ 1.70 $ 1.65
========== ========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
Dimeco, Inc.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)
<TABLE>
<CAPTION>
Net
Unrealized
Gain
(Loss) on
Securities Total
Common Retained Available Stockholders'
Stock Surplus Earnings for Sale Equity
-------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1995 $ 354,225 $ 2,303,241 $ 9,076,350 $ 9,226 $11,743,042
Net income 1,222,078 1,222,078
Net unrealized loss on securities
available for sale (59,752) (59,752)
Dividend reinvestment and stock
purchase plan 5,854 216,085 221,939
Cash dividends ($.42 per share) (301,694) (301,694)
-------- ---------- ---------- -------- ----------
Balance, September 30, 1996 $ 360,079 $ 2,519,326 $ 9,996,734 $ (50,526) $12,825,613
======== ========== ========== ======== ==========
</TABLE>
See accompanying notes to the consolidated financial statements.
5
<PAGE>
Dimeco, Inc.
STATEMENT OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>
Nine Months
Ended September 30,
1996 1995
--------- ---------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 1,222,078 $1,147,940
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 411,000 239,250
Depreciation 214,226 175,592
Market value adjustment, loans held for sale 4,009 (71,538)
Amortization of investments, net 99,781 117,191
Investment securities gain (59,257) -
Decrease (increase) in accrued
interest receivable (73,027) 13,491
Increase (decrease) in accrued
interest payable (95,000) 139,374
Net decrease (increase) in
loans held for sale 161,139 (491,854)
Amortization of net deferred loan
origination fees (66,290) (53,762)
Other, net (161,167) 5,303
---------- ----------
Net cash provided by operating activities 1,657,492 1,220,987
---------- ----------
INVESTING ACTIVITIES
Investment securities available for sale:
Proceeds from sales of investment securities 354,248 -
Proceeds from maturities or pay downs
of investment securities 8,939,295 1,743,408
Purchase of investment securities (8,954,027) -
Investment securities held to maturity:
Proceeds from maturities or pay downs
of investment securities 5,280,000 4,997,684
Purchases of investment securities (12,042,470) (2,107,036)
Net increase in loans (6,652,405) (3,652,518)
Purchase of life insurance policies - (885,000)
Purchase of premises and equipment (231,120) (406,373)
Proceeds from sale of other real estate 162,806 110,208
---------- ----------
Net cash used for investing activities (13,143,673) (199,627)
---------- ----------
FINANCING ACTIVITIES
Increase in deposits, net 11,100,420 7,140,189
Increase (decrease) in securities sold
under agreements to repurchase (2,050,000) 650,000
Proceeds from dividend reinvestment
and stock purchase plan 221,940 239,949
Dividends paid (307,139) (272,121)
---------- ----------
Net cash provided by financing activities 8,965,221 7,758,017
---------- ----------
Increase (decrease) in cash and
cash equivalents (2,520,960) 8,779,377
CASH AND CASH EQUIVALENTS AT JANUARY 1, 9,121,689 2,694,187
---------- ----------
CASH AND CASH EQUIVALENTS AT SEPTEMBER 30, $ 6,600,729 $11,473,564
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
Dimeco, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Basis of Presentation
---------------------
The consolidated financial statements include the accounts of Dimeco,
Inc. (the "Company") and its wholly-owned subsidiary The Dime Bank (the
"Bank"). All significant intercompany balances and transactions have
been eliminated in the consolidation.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and,
therefore, do not necessarily include all information that would be
included in audited financial statements. The information furnished
reflects all adjustments which are, in the opinion of management,
necessary for a fair statement of the results of operations. All such
adjustments are of a normal recurring nature. The results of operations
for the interim periods are not necessarily indicative of the results
to be expected for the full year.
Certain comparative amounts for 1995 have been reclassified to conform
to 1996 classifications.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition
-------------------
Total assets at September 30, 1996 increased $9,963,000 or 8.0% over the
$124,808,000 reported at December 31, 1995. Cash and cash equivalents
decreased $2,521,000 or 27.6% due to decreases in federal funds sold.
With an adjustment in interest rates during the second quarter and
continuing in to the third quarter, the company decided to invest in
relatively short term bonds to boost interest income while maintaining
opportunities to reinvest if interest rates begin to increase in the
near term. Although we do not anticipate any dramatic increase in
interest rates in the near future, the positioning in shorter term bonds
provides a more favorable interest rate spread than federal funds sold.
In light of these purchases, total investment securities increased
$6,292,000 or 30.4% since December 31, 1995.
The loan portfolio increased $5,933,000 or 6.6% since December 31, 1995.
This growth was primarily experienced in three segments of the
portfolio. The largest gain of $2,235,000 or 17.9% was in consumer
loans. This growth is attributed to a special promotion in February
to assist area residents who incurred snow and/or flooding damages
during the winter and to a promotion in the Fall months which was geared
toward the financing of automobile purchases. Residential first lien
mortgages showed a gain of $1,526,000 or 4.5%. This increase is the
result of an improving real estate market, somewhat more aggressive
interest rate pricing and continued participation in local real estate
and builders organizations. Commercial loans increased $1,409,000 or
11.4%. This growth was a result of increased business development
efforts through the Honesdale, Hawley and Damascus offices.
Deposits increased $11,100,000 or 10.1% since December 31, 1995. The
greatest growth was $6,177,000 or 42.4% in statement savings accounts.
Management believes this increase is due to the competitive rates
offered in comparison to other interest-bearing accounts generally
available to business customers in particular. At the same time
noninterest-bearing deposits increased $1,921,000 or 15.6%, which
management attributes to increases in both business and individual
customers. Securities sold under agreement to repurchase have been
eliminated since December 31, 1995 with the maturity of this account in
June 1996. These liabilities were used to offer competitive rates to
certain larger customers without the guarantee of the FDIC and therefore
without the added expense of deposit insurance premiums. Since deposit
premiums have greatly decreased, the need for this type of account has
been nullified at this time.
Equity capital increased $1,083,000 or 9.2% during the nine months
ended September 30, 1996. As detailed in the Consolidated Statement of
Changes in Stockholders' Equity, this growth is primarily the result of
net earnings for the period of $1,222,000. The dividend reinvestment
plan contributed an additional $222,000 during the period with the stock
purchase option not available to stockholders after the first quarter
of 1996. Dividends of $302,000 along with a $60,000 adjustment in the
unrealized loss on securities available for sale accounted for the
remaining change in Stockholders' Equity.
Management monitors risk-based capital and leverage capital ratios in
order to assess compliance with regulatory guidelines. At September 30,
1996 the bank had total risk-based capital of 14.9%, exceeding the 8.0%
minimum risk-based capital requirement. Core equity capital, which must
be at least fifty percent of the total risk-based capital, was 13.7% of
this requirement. Additionally, the Company must maintain a minimum
leverage capital ratio of 3%, as of September 30, 1996 the Company's
leverage capital ratio was 9.5%.
8
<PAGE>
Results of Operation
--------------------
Comparison of the Nine Months Ended September 30, 1996 and 1995.
----------------------------------------------------------------
The Company earned $1,222,000 for 1996, an increase of $74,000 or 6.5%
from the $1,148,000 reported for 1995.
Net margin increased $362,000 or 9.2% from 1995 to 1996. The primary
source of this increase is the result of volume increases of $9,478,000
in average interest-earning assets from 1995 to 1996. At the same time,
average interest rates on the portfolios decreased from 8.05% in 1995 to
8.01% in 1996. The cost of funds decreased from 3.83% in 1995 to 3.77%
in 1996 with the average volume of deposits increasing $11,880,000 or
11.3% from 1995 to 1996. Net interest spread increased slightly from
4.22% in 1995 to 4.24% in 1996.
Interest income related to federal funds sold and securities purchased
under agreements to resell increased $191,000 or 153.1% from 1995 to
1996 based upon an increase in the average investment in these
short-term assets in 1996. The average for 1996 was $7,864,000 compared
to $2,820,000 in 1995 accompanied by a decrease in the interest rate
received on this type of investment of 5.4% for 1996 compared to 5.9% in
1995.
The provision for loan losses increased $172,000 or 71.8% in 1996 from
1995 due to the increased size of the loan portfolio and to management's
continuing evaluation of credit risk in the portfolio. The level of the
allowance for loan loss as a percentage of total loans decreased during
the period to 1.30% in 1996 compared to 1.42% in 1995. Our analysis of
the allowance for loan loss reveals that this ratio is adequate at the
present time. Improved asset quality and more conservative underwriting
guidelines account for the decrease in percentage for our analysis of
the adequacy of the allowance for loan losses.
The gain on sale of investment securities is attributable to two sales.
In the second quarter of 1996, a municipal bond which had been in
nonaccrual status and had been adjusted to a lower market value was
refunded and sold realizing a gain of $52,000. In addition, a
group of mortgage-backed securities which had been paid down to a value
below our policy limits was sold realizing a gain of $7,000.
9
<PAGE>
Salaries and employee benefits increased $138,000 or 10.6% in 1996 as
compared to 1995. The largest part of this increase is due to increased
payroll expense. Salary expense increased $114,000 or 11.5% which is
due to a combination of normal salary increases of approximately
4.0%, increased staffing due to the opening of the Damascus office in
August 1995 and the gearing up of staff for the opening of the Greentown
office on October 1, 1996 and overtime associated with training and
installation of Jack Henry Silverlake software in May 1996.
Employee benefit expenses increased in proportion to the increased
staffing and normal salary increases.
Occupancy expense increased $42,000 or 25.4% with the establishment of
the Damascus office in the third quarter of 1995 accounting for the
largest increase. Slight increases are attributable to expenses
associated with the October 1, 1996 opening of the Greentown office.
Expenses of this office will affect occupancy expense in the fourth
quarter to a greater extent.
Furniture and equipment expense increased $27,000 or 17.4% from 1995 to
1996. Additional expenses associated with the installation of new
computer equipment associated with the conversion to Jack Henry
Silverlake software and furniture and equipment in the Damascus
office are responsible for this increase.
Deposit insurance premiums decreased $106,000 due to the full
recapitalization of the Bank Insurance Fund in the second quarter of
1995.
Other operating expense increased $60,000 or 7.6% from 1995 to 1996. A
variety of changes in individual expense categories accounts for this
increase. In 1996 the Company outsourced its' Internal Audit function
accounting for $22,000 of unmatched expenses in this category in 1995.
Advertising expenses increased $10,000 or 14.3% associated with our
entrance into new market areas and extra promotions for our 90th
anniversary celebration. Postage fees rose $9,000 or 15.6% due to the
10.3% increase in postage rates and the increased number of customer
accounts. Computer software amortization increased $13,000 or 57.3%
with the purchase of $135,000 in new operating software in 1996 and
platform automation software of $69,000 purchased in 1995 on which the
company is beginning to see additional amortization expense.
10
<PAGE>
Comparison of Three Months Ended September 30, 1996 and 1995
------------------------------------------------------------
The Company earned $448,000 for 1996, an increase of $40,000 or 9.8%
over the $407,000 reported for 1995. Net interest margin increased
$73,000 or 5.3% over the same quarter in 1995.
The provision for loan loss increased $69,000 or 100.0%, based on the
increased size of the loan portfolio and management's analysis of
acceptable ratios in the allowance.
Market rates increased on the loans held for sale portfolio during the
third quarter of 1996 versus a decrease in the third quarter of 1995
resulting in an increase of $46,000 in 1996 as compared to the same
quarter in 1995.
Salaries and employee benefits decreased slightly in spite of annual
salary increases and additional expenses associated with of new
employees for our Greentown office. Expenses associated with the
inception of the officers' salary continuation plan in 1995 were not as
great in 1996 and employee incentive accruals were lower than in 1995
due to increased performance standards to trigger incentives in 1996.
Deposit insurance premiums decreased in 1996 from 1995 as discussed
above in the nine month section.
Other operating expense decreased $20,000 or 6.9% during 1996.
Promotional and advertising expenses were $9,000 greater during this
quarter of 1995 as compared to 1996 with additional advertising for the
opening of the Damascus office in 1995. Advertising expenses
associated with the opening of the Greentown office in 1996 will be
included in the fourth quarter results. Stationery and office supply
expenses were $11,000 less in 1996 than in 1995 due to timing
differences in ordering larger cost supplies. Legal expenses were
$5,000 less in 1996 than in 1995 mainly due to decreased costs of
foreclosure expenses. Internal audit fees were outsourced in 1996
compared to an on staff Internal Auditor in 1995 accounting for
$7,000 of increased expenses in this category. All other items
mentioned in the nine month discussion above had a similar effect on the
second quarter analysis.
11
<PAGE>
Liquidity and Cash Flows
------------------------
To ensure that the Company can satisfy customer credit needs for current
and future commitments and deposit withdrawal requirements, the Bank
manages the liquidity position by ensuring that there are adequate
short-term funding sources available for those needs. Liquid assets
consists of cash and due from banks, federal funds sold, interest-bearing
deposits with other banks and investment securities maturing in one year or
less. The following table shows these liquidity sources, minus short-term
borrowings, as of September 30, 1996 compared to December 31, 1995:
September 30, December 31,
------------ -----------
(dollars in thousands)
Cash and due from banks $ 1,527 $ 1,232
Interest-bearing deposits with other banks 3,780 1,970
Federal funds sold 295 465
Mortgage loans held for sale 299 5,920
Securities purchased under agreements to resell 999 -
Investment securities maturing in one year
or less 12,853 14,012
------- -------
19,753 23,599
Less short-term borrowings - 2,050
-------- --------
Net liquidity position $ 19,753 $ 21,549
======== ========
As a percent of total assets 14.7% 17.3%
======== ========
Management monitors liquidity on a consistent basis and feels that
liquidity levels are adequate. In addition to these liquidity sources,
the Bank has available also a credit line with the Federal Home Loan
Bank in excess of $3 million.
Management is not aware of any known trends, events or uncertainties
that will have or is reasonably likely to have a material effect on the
Company's liquidity, capital resources or operations nor is management
aware of any current recommendations by regulatory authorities, which if
implemented, would have such an effect.
12
<PAGE>
Risk Elements
--------------
The table below presents information concerning nonperforming assets
including nonaccrual loans, renegotiated loans, loans 90 days or more
past due, nonaccrual securities, other real estate loans and repossessed
assets at September 30, 1996 and December 31, 1995. A loan is
classified as nonaccrual when, in the opinion of management, there are
doubts about collectibility of interest and principal. At the time the
accrual of interest is discontinued, future income is recognized only
when cash is received. Renegotiated loans are those loans which terms
have been renegotiated to provide a reduction or deferral of principal
or interest as a result of the deterioration of the borrower.
September 30, December 31,
------------ -----------
(dollars in thousands)
Loans on nonaccrual basis $ 1,033 $ 1,096
Loans past due 90 days or more 610 463
Renegotiated loans 640 -
-------- --------
Total nonperforming loans 2,283 1,559
Other real estate 576 389
Repossessed assets 9 -
Nonaccrual securities - 151
-------- --------
Total nonperforming assets $ 2,868 $ 2,099
======== ========
Nonperforming loans as a percent
of total loans 2.40% 1.74%
======== ========
Nonperforming assets as a percent
of total assets 2.10% 1.70%
======== ========
Management believes the level of the allowance for loan losses at
September 30, 1996 is sufficient. The relationship between the
allowance for loan losses and outstanding loans is a function of the
credit quality and known risk attributed to the loan portfolio. The
on-going loan review program and credit approval process is used to
determine the adequacy of the allowance for loan losses. Included in
total loans are loans of $1,128,000 which management has classified as
impaired under the terms of Financial Accounting Standards Board
Statement No. 114, "Accounting by Creditors for Impairment of a Loan
Income Recognition and Disclosure." The related allowance for loan
losses on these loans amounted to $174,000. There were no impaired
loans without a related allowance for loan losses. The average balance
of impaired loans for the period amounted to $1,130,000.
Management does not believe that loans classified as loss, doubtful
substandard or special mention for internal or regulatory purposes (i)
represent or result from trends or uncertainties which management
reasonably expects will materially impact future operating results,
liquidity, or capital resources, or (ii) represent material loans about
which management is aware of any information which causes management to
have serious doubts as to the ability of such borrowers to comply with
the loan repayment terms.
13
<PAGE>
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
NONE
Item 2 - Changes in the rights of the Company's security holders
NONE
Item 3 - Defaults by the Company on its senior securities
NONE
Item 4 - Submissions of matters to a vote of security holders
NONE
Item 5 - Other information
NONE
Item 6 - Exhibits and Reports on Form 8-K
NONE
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DIMECO, INC.
Date: November 04, 1996 By:
------------------------------
Joseph J. Murray
President and Chief Executive Officer
Date: November 04, 1996 By:
------------------------------
Maureen H. Beilman
Controller/Treasurer
15
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<CASH> 1,526,536
<INT-BEARING-DEPOSITS> 3,780,380
<FED-FUNDS-SOLD> 1,293,813
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,044,527
<INVESTMENTS-CARRYING> 15,968,178
<INVESTMENTS-MARKET> 16,053,442
<LOANS> 95,589,481
<ALLOWANCE> 1,246,819
<TOTAL-ASSETS> 134,771,792
<DEPOSITS> 120,978,654
<SHORT-TERM> 0
<LIABILITIES-OTHER> 494,113
<LONG-TERM> 0
0
0
<COMMON> 360,079
<OTHER-SE> 12,465,534
<TOTAL-LIABILITIES-AND-EQUITY> 134,771,792
<INTEREST-LOAN> 6,375,237
<INTEREST-INVEST> 1,221,108
<INTEREST-OTHER> 17,002
<INTEREST-TOTAL> 7,613,347
<INTEREST-DEPOSIT> 3,246,860
<INTEREST-EXPENSE> 3,305,496
<INTEREST-INCOME-NET> 4,307,851
<LOAN-LOSSES> 411,000
<SECURITIES-GAINS> 59,257
<EXPENSE-OTHER> 2,682,999
<INCOME-PRETAX> 1,751,078
<INCOME-PRE-EXTRAORDINARY> 1,222,078
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,222,078
<EPS-PRIMARY> 1.70
<EPS-DILUTED> 1.70
<YIELD-ACTUAL> 8.00
<LOANS-NON> 1,033,035
<LOANS-PAST> 610,341
<LOANS-TROUBLED> 639,546
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,247,629
<CHARGE-OFFS> 482,888
<RECOVERIES> 71,077
<ALLOWANCE-CLOSE> 1,246,818
<ALLOWANCE-DOMESTIC> 970,244
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 276,575
</TABLE>
