CONDENSED HOLDING COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2013

CONDENSED HOLDING COMPANY ONLY FINANCIAL STATEMENTS [Abstract]

CONDENSED HOLDING COMPANY ONLY FINANCIAL STATEMENTS

21. CONDENSED HOLDING COMPANY ONLY FINANCIAL STATEMENTS

The following statements of condition as of December 31, 2013 and 2012, and the related statements of operations and cash flows for the years ended December 31, 2013, 2012 and 2011, reflect the Holding Company's investment in its wholly-owned subsidiaries, the Bank and 842 Manhattan Avenue Corp., and its unconsolidated subsidiary, Dime Community Capital Trust I, using, as deemed appropriate, the equity method of accounting:

DIME COMMUNITY BANCSHARES, INC.

CONDENSED STATEMENTS OF FINANCIAL CONDITION

	At December 31, 2013		At December 31, 2012
ASSETS:
Cash and due from banks	$	61,665	$	17,684
Investment securities available-for-sale		3,558		3,006
Trading securities		6,822		4,874
MBS available-for-sale		573		716
ESOP loan to subsidiary		3,401		3,567
Investment in subsidiaries		427,083		429,533
Other assets		3,435		3,664
Total assets	$	506,537	$	463,044
LIABILITIES AND STOCKHOLDERS' EQUITY:
Trust Preferred securities payable		70,680	$	70,680
Other liabilities		351		790
Stockholders' equity		435,506		391,574
Total liabilities and stockholders' equity	$	506,537	$	463,044

DIME COMMUNITY BANCSHARES, INC.

CONDENSED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME(1)

	Year Ended December 31,
	2013			2012			2011
Net interest loss	$	(4,851	)	$	(4,830	)	$	(4,831	)
Dividends received from Bank		54,500			20,000			20,000
Non-interest income		812			1,493			453
Non-interest expense		(636	)		(635	)		(516	)
Income before income taxes and equity in undistributed earnings of direct subsidiaries		49,825			16,028			15,106
Income tax credit		2,183			1,823			2,277
Income before equity in undistributed earnings of direct subsidiaries		52,008			17,851			17,383
Equity in (over-distributed) undistributed earnings of subsidiaries		(8,460	)		22,457			29,926
Net income	$	43,548		$	40,308		$	47,309

(1) Other comprehensive income for the Holding Company approximated other comprehensive income for the consolidated Company during the years ended December 31, 2013, 2012 and 2011.

DIME COMMUNITY BANCSHARES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2013			2012			2011
Cash flows from Operating Activities:
Net income	$	43,548		$	40,308		$	47,309
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over-distributed (undistributed) earnings of direct subsidiaries		8,460			(22,457	)		(29,926	)
Net gain on the sale of investment securities available for sale		(110	)		(941	)		(22	)
Net (gain) loss on trading securities		(265	)		(103	)		34
Net amortization		-			-			-
Decrease (Increase) in other assets		355			1,866			(296	)
(Decrease) Increase in other liabilities		(595	)		(149	)		71
Net cash provided by operating activities		51,393			18,524			17,170
Cash flows from Investing Activities:
Proceeds from sale of investment securities available-for-sale		366			2,418			226
Proceeds from the sale of trading securities		131			-			-
Purchases of investment securities available-for-sale		(458	)		(403	)		(291	)
Reimbursement from subsidiary for purchases of investment securities available-for-sale		642			2,917			275
Net purchases of trading securities		(202	)		(2,997	)		(318	)
Principal collected on MBS available-for-sale		138			72			70
Principal repayments on ESOP loan		166			154			142
Net cash provided by investing activities		783			2,161			104
Cash flows from Financing Activities:
Common stock issued for exercise of stock options		11,228			5,608			3,669
Equity award distribution		293			145			-
Cash dividends paid to stockholders		(19,716	)		(19,208	)		(18,887	)
Net cash used in financing activities		(8,195	)		(13,455	)		(15,218	)
Net increase in cash and due from banks		43,981			7,230			2,056
Cash and due from banks, beginning of period		17,684			10,454			8,398
Cash and due from banks, end of period	$	61,665		$	17,684		$	10,454