DIMC Update: Up 29% in Five Months

We published our Dimeco (OTCQX: DIMC) writeup on March 10, 2026 with the stock at $47. It closed Friday at $60.

That is a 27.7% price return in 145 days. Add the two $0.45 quarterly dividends declared since publication and total return is 29.6%. Annualized, that is a number we are not going to print because it would be silly to extrapolate, but it is a reminder of what happens when an illiquid, uncovered community bank finally gets noticed. Average daily volume was 1,600 shares when we wrote it up. The re-rating did not need institutional buyers. It just needed the earnings to show up.

They showed up.

Every operating pillar of the original thesis held or improved in the first half of 2026, per the company’s second quarter report.

Net interest income grew 19.3% year over year, from $21.3 million to $25.4 million. Interest expense actually fell 9.4%. Net income came in at $9.97 million for six months, up 27.4%. Diluted EPS of $3.90 was up 26.2%.

Return on average assets hit 1.71%. Return on average equity hit 15.37%. The efficiency ratio came in at 52.68%. Net interest margin was 4.63%.

Read that margin number again, because it was the single biggest risk we flagged in March. We wrote that the 4.50% NIM was near a cyclical high and could compress toward 3.7% to 4.0% if the Fed cut aggressively. It did not compress. It expanded. Six months later the funding advantage is still doing exactly what we said it would do.

Book value per share went from $44.65 to $52.09, up 16.7%. Strip out the recovery in the securities mark and book still compounded around 12.5% organically, against the roughly 6% we underwrote. The dividend was raised 7.14% in Juneand the payout ratio is still only 22.96%.

Balance sheet quality improved too. Wholesale funding kept shrinking. Other borrowed funds fell 48.5% year over year to $17.2 million. Capital is fortress grade: at the bank level the June 30 call report shows common equity tier 1 at 13.95%, total risk-based at 15.20%, and leverage at 11.74%.

This was a very good six months. We are not going to pretend otherwise.

Here is the part that matters more than the victory lap.