Pennsylvania's Dime Bank raises $25M in subordinated notes
What's the deal? DIMECO, Inc.Dealroom has a profile for this one. Try Dealroom →, the holding company for Pennsylvania-based The Dime BankDealroom has a profile for this one. Try Dealroom →, has completed a $25 million private placement of fixed-to-floating rate subordinated notes due 2036. The notes are structured to qualify as Tier 2 capital under bank regulatory guidelines. The company said proceeds will be used for general corporate purposes.
Who's involved? Performance Trust Capital Partners served as sole placement agent, advised by Luse Gorman. DIMECO was advised by Stevens & LeeDealroom has a profile for this one. Try Dealroom →.
The terms: DIMECO can redeem the notes, in whole or in part, on any interest payment date on or after October 23, 2031. The notes are not registered under the Securities Act and were sold under an exemption; they are not deposits and are not FDIC-insured.
Why now? The raise follows a strong quarter. DIMECO posted net income of $16.1 million for the first nine months of 2026, up 27.1% year-on-year, while total assets grew 14.8% to $1.3 billion. Its stock stood at $63.00 on September 30 — up 61.5% from a year earlier.
The backdrop: Founded in 1905, The Dime Bank is a community bank headquartered in Honesdale, serving customers through nine offices in Wayne, Pike, and Lackawanna counties. It offers personal and business banking, lending, wealth management, and digital services.
The signal: At $25 million, the deal sits in the smaller tier of regional-bank capital raises. Comparable recent deals ranged widely in purpose — from Hyperion Bancshares' $14.7 million equity raise for growth to First Keystone's $32.5 million subordinated-notes offering, partly for refinancing. With proceeds earmarked only for general corporate purposes, DIMECO's intent remains open, but the Tier 2 structure signals a focus on shoring up regulatory capital.
Read more: Financial Times
Image credit: Generated with Gemini
