ACCOUNTING FOR STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2014

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7. ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month and nine-month periods ended September 30, 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 Equity Plan and the 2013 Equity 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 September 30,					At or for the Nine Months Ended September 30,
	2014		2013			2014			2013
Options outstanding – beginning of period		979,916		2,273,733			1,615,771			2,456,137
Options granted		-		-			-			-
Options exercised		-		(493,690	)		(16,960	)		(671,312	)
Options forfeited		-		-			(618,895	)		(4,782	)
Options outstanding – end of period		979,916		1,780,043			979,916			1,780,043
Intrinsic value of options exercised	$	0	$	1,872		$	6		$	2,089
Compensation expense recognized		23		36			86			158
Remaining unrecognized compensation expense		54		177			54			177
Intrinsic value of outstanding options at period end		468		2,447			468			2,447
Intrinsic value of vested options at period end		468		2,347			468			2,347
Weighted average exercise price of vested options – end of period		14.73		16.53			14.73			16.53

There were no grants of stock options during the three-month and nine-month periods ended September 30, 2014 and 2013.

Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and certain officers under either the 2004 Equity Plan or the 2013 Equity 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 Equity Plan and 2013 Equity Plan during the periods indicated:

	At or for the Three Months Ended September 30,				At or for the Nine Months Ended September 30,
	2014		2013		2014			2013
Unvested allocated shares – beginning of period		295,044		318,314		318,314			328,003
Shares granted		-		-		121,333			145,925
Shares vested		-		-		(141,361	)		(155,614	)
Shares forfeited		-		-		(3,242	)		-
Unvested allocated shares – end of period		295,044		318,314		295,044			318,314
Compensation recorded to expense	$	501	$	499	$	1,498		$	1,511