ACCOUNTING FOR STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7. ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month periods ended March 31, 2014 and 2013, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees, the 2004 Stock Incentive Plan and the Dime Community Bancshares, Inc. 2013 Equity And 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, 2013, 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 March 31,
	2014			2013
Options outstanding – beginning of period		1,615,771			2,456,137
Options granted		-			-
Options exercised		(8,480	)		(157,670	)
Options forfeited		(618,895	)		(3,095	)
Options outstanding – end of period		988,396			2,295,372
Intrinsic value of options exercised	$	5		$	150
Compensation expense recognized		36			73
Remaining unrecognized compensation expense		105			261
Intrinsic value of outstanding options at period end		2,294			1,070
Intrinsic value of vested options at period end		2,177			841
Weighted average exercise price of vested options – end of period		14.76			15.98

There were no grants of stock options during the three-month periods ended March 31, 2014 and 2013.

Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and certain 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,
	2014			2013
Unvested allocated shares – beginning of period		318,314			328,003
Shares granted		-			-
Shares vested		-			(6,855	)
Shares forfeited		(1,261	)		-
Unvested allocated shares – end of period		317,053			321,148
Compensation recorded to expense	$	495		$	526