ACCOUNTING FOR STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7.    ACCOUNTING FOR STOCK BASED COMPENSATION

During the three months ended March 31, 2013 and 2012, 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, 2012, and which are subject to the accounting requirements of ASC 505-50 and ASC 718.  There were no grants of stock options during the three months ended March 31, 2013 or 2012.

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,
	2013			2012
Options outstanding – beginning of period		2,456,137			2,893,760
Options granted		-			-
Options exercised		(157,670	)		(61,247	)
Options forfeited		(3,095	)		-
Options outstanding – end of period		2,295,372			2,832,513
Intrinsic value of options exercised	$	150		$	279
Compensation expense recognized		73			85
Remaining unrecognized compensation expense		261			459
Intrinsic value of outstanding options at period end		1,070			2,291
Intrinsic value of vested options at period end		841			1,856
Weighted average exercise price of vested options – end of period		15.98			15.43

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 March 31,
	2013			2012
Unvested allocated shares – beginning of period		328,003			324,454
Shares granted		-			-
Shares vested		(6,855	)		-
Shares forfeited		-			-
Unvested allocated shares – end of period		321,148			324,454
Compensation recorded to expense	$	526		$	438