Exhibit 99

NEWS RELEASE

TO BUSINESS EDITOR

DIMECO, INC. ANNOUNCES EARNINGS AT SEPTEMBER 30, 2007

Dimeco, Inc. (Nasdaq “DIMC”), parent company of The Dime Bank, reported earnings for the nine months ended September 30, 2007 of $4,953,000, a 22.5% increase over the same period last year. The main component of this growth was an increase of $1,724,000 or 15.5% in net interest income. Based on net income, earnings per share were $3.25 for the period and dividends declared year-to-date in 2007 increased 11.5% to $.87 per share.

The Company continued to experience growth, with total assets of $429,603,000 at September 30, 2007, an increase of $39,747,000 or 10.2% over September 30, 2006. During this time, deposits increased $35,917,000 or 11.1% while the loan portfolio expanded by $43,227,000 or 14.4%. Asset quality remained strong for the nine months ended September 30, 2007, with the ratios of non-performing assets to total assets of .20%, net charge-offs to average loans of .07% and the allowance for loan loss representing 1.47% of total loans.

This significant performance can be summarized by two financial ratios. Return on average assets was 1.60% at September 30, 2007 and the return on average stockholders’ equity was 17.82%.

Gary C. Beilman, President and Chief Executive Officer, stated, “This news release contains great news about the performance of Dimeco Inc for the third quarter of 2007. The momentum of increasing growth and profitability that was experienced during the first two quarters of this year has continued this period. When compared to the same date last year, you see that loans, deposits and total assets have all increased more than 10%.”

Beilman continued, “To accommodate the activity of our ever-increasing customer base, construction at our Honesdale office is underway to expand our drive-thru and parking facilities. As always, we are thankful to our customers, employees and shareholders for their confidence in us.”

The Dime Bank, a wholly owned subsidiary of Dimeco, Inc., serves Wayne and Pike counties in Pennsylvania and Sullivan County, New York. The Bank offers a full array of financial services ranging from traditional products to electronic banking along with a Trust Department and an Investments and Financial Services Department. For more information on The Dime Bank, visit www.thedimebank.com

Source Dimeco, Inc. / October 19, 2007

Contact: Deborah Unflat, Assistant Vice President Marketing

DIMECO, INC.

CONSOLIDATED STATEMENT OF INCOME (unaudited)

(in thousands, except per share)	Three months ended September 30,				Nine months ended September 30,
	2007		2006		2007		2006
Interest Income
Interest and fees on loans	$	6,785	$	5,596	$	19,163	$	15,609
Investment securities:
Taxable		795		624		2,486		1,738
Exempt from federal income tax		98		60		247		160
Other		27		45		184		178
Total interest income		7,705		6,325		22,080		17,685
Interest Expense
Deposits		2,828		2,161		8,409		5,785
Short-term borrowings		104		108		280		284
Other borrowed funds		221		156		556		505
Total interest expense		3,153		2,425		9,245		6,574
Net Interest Income		4,552		3,900		12,835		11,111
Provision for loan losses		300		185		750		400
Net Interest Income After Provision for Loan Losses		4,252		3,715		12,085		10,711
Noninterest Income
Services charges on deposit accounts		399		361		1,187		1,099
Other income		522		397		1,384		1,182
Total noninterest income		921		758		2,571		2,281
Noninterest Expense
Salaries and employee benefits		1,504		1,330		4,375		3,925
Net occupancy and equipment expense		308		321		983		979
Other expense		653		665		2,089		2,156
Total noninterest expense		2,465		2,316		7,447		7,060
Income before income taxes		2,708		2,157		7,209		5,932
Income taxes		851		689		2,256		1,889
NET INCOME	$	1,857	$	1,468	$	4,953	$	4,043
Earnings per Share—basic	$	1.22	$	0.96	$	3.25	$	2.65
Earnings per Share—diluted	$	1.18	$	0.93	$	3.13	$	2.57
Average shares outstanding—basic		1,520,024		1,523,958		1,525,500		1,524,777
Average shares outstanding—diluted		1,578,255		1,573,677		1,582,179		1,573,484

DIMECO, INC.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(in thousands)
September 30,	2007			2006
Assets
Cash and due from banks	$	5,797		$	8,664
Interest-bearing deposits in other banks		23			3,391
Federal funds sold		2,835			10,000
Total cash and cash equivalents		8,655			22,055
Mortgage loans held for sale		262			266
Investment securities available for sale		62,546			55,294
Investment securities held to maturity (market value of $201)		—			200
Loans (net of unearned income of $735 and $749)		343,440			300,213
Less allowance for loan losses		5,046			4,229
Net loans		338,394			295,984
Premises and equipment		5,667			5,744
Accrued interest receivable		1,945			1,651
Bank-owned life insurance		8,126			5,399
Other assets		4,008			3,263
TOTAL ASSETS	$	429,603		$	389,856
Liabilities
Deposits :
Noninterest-bearing	$	34,137		$	37,381
Interest-bearing		324,416			285,255
Total deposits		358,553			322,636
Short-term borrowings		10,758			16,370
Other borrowed funds		17,947			13,963
Accrued interest payable		1,368			1,011
Other liabilities		2,299			1,895
TOTAL LIABILITIES		390,925			355,875
Stockholders’ Equity
Common stock, $.50 par value; 5,000,000 shares authorized; 1,573,290 and 1,560,484 shares issued		787			780
Capital surplus		4,920			4,599
Retained earnings		34,981			30,255
Accumulated other comprehensive income (loss)		17			(111	)
Treasury stock, at cost (53,000 and 43,000 shares)		(2,027	)		(1,542	)
TOTAL STOCKHOLDERS’ EQUITY		38,678			33,981
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	429,603		$	389,856

This statement has not been reviewed or confirmed for accuracy or relevance by the FDIC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED)

	(amounts in thousands, except per share)
		2007			2006			% Increase (decrease)
	Performance for the nine months ended September 30,
	Interest income	$	22,080		$	17,685		24.9	%
	Interest expense	$	9,245		$	6,574		40.6	%
	Net interest income	$	12,835		$	11,111		15.5	%
	Net income	$	4,953		$	4,043		22.5	%
	Shareholders’ Value (per share)
	Net income—basic	$	3.25		$	2.65		22.6	%
	Net income—diluted	$	3.13		$	2.57		21.8	%
	Dividends	$	0.87		$	0.78		11.5	%
	Book value	$	25.44		$	22.39		13.6	%
	Market value	$	47.60		$	37.26		27.8	%
	Market value/book value ratio		187.1	%		166.4	%	12.4	%
*	Price/earnings multiple		11.0	X		10.6	X	3.8	%
*	Dividend yield		2.44	%		2.79	%	-12.5	%
	Financial Ratios
*	Return on average assets		1.60	%		1.48	%	8.1	%
*	Return on average equity		17.82	%		16.48	%	8.1	%
	Shareholders’ equity/asset ratio		9.00	%		8.72	%	3.2	%
	Dividend payout ratio		26.77	%		29.43	%	-9.0	%
	Nonperforming assets/total assets		0.20	%		0.20	%	—
	Allowance for loan loss as a % of loans		1.47	%		1.41	%	4.3	%
*	Net charge-offs/average loans		0.07	%		0.07	%	—
	Allowance for loan loss/nonaccrual loans		1126.3	%		747.2	%	50.7	%
	Allowance for loan loss/non-performing loans		586.7	%		555.0	%	5.7	%
	Financial Position at September 30,
	Assets	$	429,603		$	389,856		10.2	%
	Loans, net of unearned	$	343,440		$	300,213		14.4	%
	Deposits	$	358,553		$	322,636		11.1	%
	Stockholders’ equity	$	38,678		$	33,981		13.8	%

* annualized