ACCOUNTING FOR STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2012

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7.    ACCOUNTING FOR STOCK BASED COMPENSATION

During the six-months ended June 30, 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 505-50 and ASC 718.

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 June 30,						At or for the Six Months Ended June 30,
	2012			2011			2012			2011
Options outstanding - beginning of period		2,832,513			3,092,127			2,893,760			3,213,007
Options granted		24,440			91,583			24,440			91,583
Options exercised		(25,264	)		(104,670	)		(86,511	)		(220,989	)
Options forfeited		(1,387	)		-			(1,387	)		(4,561	)
Options outstanding - end of period		2,830,302			3,079,040			2,830,302			3,079,040
Remaining unrecognized compensation expense	$	482		$	713		$	482		$	713

The weighted average fair value per option at the date of grant for stock options granted was estimated as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Total options granted		24,440			91,583			24,440			91,583
Estimated fair value on date of grant	$	4.09		$	4.82		$	4.09		$	4.82
Pricing methodology utilized	Black- Scholes			Black- Scholes			Black- Scholes			Black- Scholes
Expected life (in years)		6.53			6.80			6.53			6.80
Interest rate		1.21	%		2.59	%		1.21	%		2.59	%
Volatility		45.17			42.35			45.17			42.35
Dividend yield		4.04			3.62			4.04			3.62

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-year period.

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 June 30,						At or for the Six Months Ended June 30,
	2012			2011			2012			2011
Unvested allocated shares - beginning of period		324,454			307,783			324,454			309,783
Shares granted		141,289			126,304			141,289			126,304
Shares vested		(135,369	)		(107,649	)		(135,369	)		(109,649	)
Shares forfeited		(2,371	)		(1,984	)		(2,371	)		(1,984	)
Unvested allocated shares - end of period		328,003			324,454			328,003			324,454