ACCOUNTING FOR STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7.    ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-months ended March 31, 2012 and 2011, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan (collectively the "Stock Plans"), which are discussed more fully in Note 15 to the Company's audited consolidated financial statements for the year ended December 31, 2011, and which are subject to the accounting requirements of ASC reference numbers 505-50 and 718.

8

Stock Option Awards

Combined activity related to stock options granted under the Stock Plans during the periods presented was as follows:

	At or for the Three Months Ended March 31,
	2012		2011
Options outstanding - beginning of period		2,893,760		3,213,007
Options granted		-		-
Weighted average exercise price of grants		-		-
Options exercised		61,247		116,319
Weighted average exercise price of exercised options	$	9.67	$	11.20
Options forfeited		-		4,561
Weighted average exercise price of forfeited options		-	$	16.73
Options outstanding - end of period		2,832,513		3,092,127
Weighted average exercise price of outstanding options at the end of period	$	15.25	$	14.75
Remaining options available for grant		412,588		553,738
Exercisable options at end of period		2,620,909		2,671,554
Weighted average exercise price of exercisable options at the end of period	$	15.43	$	15.08
Cash received for option exercise cost		-		-
Income tax benefit recognized		91		-
Compensation expense recognized		85		227
Remaining unrecognized compensation expense		459		403
Weighted average remaining years for which compensation    expense is to be recognized		2.6		2.0

The range of exercise prices and weighted-average remaining contractual lives of options outstanding, vested and unvested, under the Stock Plans were as follows:

	Outstanding Options		Vested Options
Exercise Prices	Amount	Weighted Average Contractual Years Remaining	Amount	Weighted Average Contractual Years Remaining
$8.34	105,537	7.1	48,307	7.1
$12.75	87,541	8.1	46,345	8.1
$13.16	493,453	0.8	493,453	0.8
$13.74	863,375	5.1	863,375	5.1
$14.92	34,425	5.9	25,818	5.9
$15.10	318,492	3.2	318,492	3.2
$15.46	91,583	9.1	-	9.1
$16.45	76,320	2.8	76,320	2.8
$16.73	51,943	6.3	38,955	6.3
$18.18	80,000	6.2	80,000	6.2
$19.90	629,844	1.8	629,844	1.8
Total	2,832,513	3.7	2,620,909	3.4

There were no grants of stock options during the three months ended March 31, 2012 or 2011, respectively.

Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and officers under the 2004 Stock Incentive Plan.  Typically, awards to outside directors fully vest on the first anniversary of the grant date, while awards to officers vest in equal annual installments over a four- or five-year period.

9

The following is a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan during the periods indicated:

	At or for the Three Months Ended March 31,
	2012		2011
Unvested allocated shares - beginning of period		324,454		309,783
Shares granted		-		-
Shares vested		-		2,000
Shares forfeited		-		-
Unvested allocated shares - end of period		324,454		307,783
Unallocated shares - end of period		-		-
Compensation recorded to expense	$	439	$	308
Income tax benefit recognized		-		-