Exhibit 99

NEWS RELEASE

TO BUSINESS EDITOR

DIMECO, INC. ANNOUNCES 2010 FINAL QUARTER EARNINGS

Dimeco, Inc. (Nasdaq DIMC), parent company of The Dime Bank, released unaudited financial results for the year 2010.

Dimeco’s results of operation for the fourth quarter of 2010 were represented by earnings per share of $1.00, a 25.0% increase over earnings in the third quarter of 2010 and 33.3% greater than the fourth quarter of 2009. Earnings per share for the year ended 2010 were $3.24, an increase of 16.1% over earnings for 2009. Net income for 2010 was $5,159,000, an increase of 17.2% over income reported for the year 2009. The most significant contributor to this growth was a decline in interest expense of $1,430,000, or 16.3% less than a year earlier. Net interest income for the year ended December 31, 2010 was $17,354,000, which was $1,587,000 or 10.1% greater than the previous year. At this level of income, the Company reported a return on average assets of .94% and a return on average equity of 10.43% for 2010. Dividends remained solid, amounting to $1.44 per share in 2010, producing a dividend yield of 3.99%.

The Company experienced growth in balance sheet categories during the year. Total assets grew $11,557,000 or 2.2% to end the year at $542,214,000. Contributing to this growth was an increase in the loan portfolio of $15,057,000 or 3.7%, ending the year at $425,069,000. During 2010 deposits increased $11,618,000 or 2.6%. Stockholders’ equity of $50,679,000 at December 31, 2010 represented an increase of 7.6% over a year earlier. Balance sheet growth was managed at lower levels than our historical average as part of a deliberate plan to increase profitability.

Gary C. Beilman, president and chief executive officer, stated “In the midst of continuing economic pressure, we were able to produce greater income than in 2009. Pricing initiatives that were made on both sides of the balance sheet earlier this year contributed to this increase in net income, and assisted in increasing the equity to asset ratio by over 5%. For shareholders, additional good news includes handsome increases in the book value and market value of the Company’s stock.”

Beilman continued, “While delivering this good news, we remain mindful of the challenges presented by the ongoing economic issues in our country. During the year, our loan losses were at a minimum, however, loan delinquency levels increased as some customers struggled with decreased cash flow. In recognition of these issues, we prudently raised our allowance for loan loss by over 23%. Nonperforming credits continue to be monitored as we work diligently with customers, in order to produce the best possible results for the Company.”

Dimeco, Inc. is the holding company of The Dime Bank, a full service financial institution serving Wayne and Pike counties in Pennsylvania and Sullivan County, New York. For more information on The Dime Bank, visit www.thedimebank.com.

Source: Dimeco, Inc. / January 20, 2011 / Deborah Unflat

DIMECO, INC.

CONSOLIDATED STATEMENT OF INCOME (unaudited)

DIMECO, INC.

CONSOLIDATED BALANCE SHEET (unaudited)

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

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

January 2011

Dear Shareholders:

I am pleased to present this report of Dimeco, Inc. for the fourth quarter of 2010. In the midst of continuing economic pressure, we were able to close the year with net income of $5.2 million, an increase of 17% over the previous year. Pricing initiatives that were made on both sides of the balance sheet earlier this year contributed to these very positive results. These changes assisted in increasing the equity to asset ratio by over 5%.

Furthermore, stockholders’ equity grew by more than 7% with an impressive dividend yield of 3.99%. For shareholders, additional good news includes handsome increases in the book value and market value of your Company’s stock. The average return on equity was 10.43%, an increase of almost 9% from a year earlier.

While delivering this good news, we remain mindful of the challenges presented by the ongoing economic issues in our country. Fortunately, loan losses were at a minimum during the year as evidenced by our low net charge offs to average loans ratio. However, during the same period, loan delinquency levels increased as some commercial customers struggled with decreased cash flow and demand for their goods and services. All of these credits continue to be closely monitored and we are pursuing appropriate collection activities, including taking possession of associated collateral, as necessary for commercial loan delinquencies. In recognition of these issues, we prudently raised our allowance for loan losses by over 23% at December 31, 2010, with the allowance for loan loss as a percentage of total loans at 1.82%. Economic forecasting models indicate another year of a stalled economy and we will persist in closely scrutinizing credits as they show any quality deterioration. Our resolve is to work diligently with customers, with an eye toward producing the best results for the Company.

We truly appreciate your continued loyalty and investment and as always, we welcome your comments and questions.