ACCOUNTING FOR STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7. ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month and six-month periods ended June 30, 2016 and 2015, 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 2013 Equity and Incentive Plan (collectively, the "Stock Plans"), which are discussed more fully in Note 14 to the Company's audited consolidated financial statements for the year ended December 31, 2015, 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,
	2016			2015			2016			2015
Options outstanding – beginning of period		465,246			905,780			465,246			979,916
Options granted		-			-			-			-
Options exercised		(193,828	)		(259,579	)		(193,828	)		(274,355	)
Options that expired prior to exercise		-			-			-			(59,360	)
Options outstanding – end of period		271,418			646,201			271,418			646,201
Intrinsic value of options exercised	$	732		$	300		$	732		$	384
Compensation expense recognized		-			8			-			31
Remaining unrecognized compensation expense		-			-			-			-
Intrinsic value of outstanding options at period end		553			1,632			553			1,632
Intrinsic value of vested options at period end		553			1,632			553			1,632
Weighted average exercise price of vested options – end of period		15.32			14.57			15.32			14.57

There were no grants of stock options during the three-month and six-month periods ended June 30, 2016 and 2015.

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 or 2013 Equity and 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 or 2013 Equity and Incentive Plan during the periods indicated:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Unvested allocated shares – beginning of period		222,142			285,610			223,894			289,660
Shares granted		60,675			68,069			60,675			68,069
Shares vested		(115,135	)		(128,327	)		(116,001	)		(132,377	)
Shares forfeited		(12,863	)		(980	)		(13,749	)		(980	)
Unvested allocated shares – end of period		154,819			224,372			154,819			224,372
Compensation recorded to expense	$	390		$	455		$	828		$	984

Performance Based Equity Awards

During the six months ended June 30, 2016, the Company established a long term incentive award program to certain officers that meets the criteria for equity-based accounting.  For each award, threshold (50% of target), target (100% of target) and maximum (150% of target) payment opportunities are eligible to be earned over a three-year performance period based on the Company's relative performance on certain measurement goals that were established at the onset of the performance period and cannot be altered subsequently.

The following table summarizes these awards as of the period indicated:

	At or for the Three Months Ended June 30, 2016			At or for the Six Months Ended June 30, 2016
Maximum aggregate share payout – beginning of period		28,044			28,044
Shares forfeited		(3,312	)		(3,312	)
Maximum aggregate share payout – end of period		24,732			24,732
Minimum aggregate share payout		-			-
Likely aggregate share payout		16,488			16,488
Compensation expense recognized	$	21		$	21