ACCOUNTING FOR STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2016

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, 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

The following table presents a summary of activity related to stock options granted under the Stock Plans, and changes during the nine-month period then ended:

	Number of Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Years		Aggregate Intrinsic Value
Options outstanding at January 1, 2016		465,246		$	14.87
Options granted		-			-
Options exercised		(193,828	)		14.23
Options that expired prior to exercise		(10,000	)		18.18
Options outstanding at September 30, 2016		261,418		$	15.22		2.3	$	501
Options vested and exercisable at September 30, 2016		261,418		$	15.22		2.3	$	501

Information related to the Stock Plans during each period is as follows:

	At or for the Three Months Ended September 30,				At or for the Nine Months Ended September 30,
	2016		2015		2016		2015
Intrinsic value of options exercised	$	-	$	-	$	732	$	384
Compensation expense recognized		-		-		-		31

There were no grants of stock options during the three-month and nine-month periods ended September 30, 2016 or 2015. There was no unrecognized compensation expense as of September 30, 2016.

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 table presents a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan, and changes during the nine-month period then ended:

	Number of Shares			Weighted- Average Grant-Date Fair Value
Unvested allocated shares outstanding at January 1, 2016		223,894		$	15.36
Shares granted		60,675			18.11
Shares vested		(116,042	)		15.09
Shares forfeited		(14,346	)		16.39
Unvested allocated shares at September 30, 2016		154,181		$	16.55

Information related to restricted stock awards under the Stock Plans during each period is as follows:

	At or for the Three Months Ended September 30,				At or for the Nine Months Ended September 30,
	2016		2015		2016		2015
Weighted-average grant-date fair value of shares granted	$	-	$	-	$	18.11	$	15.92
Compensation expense recognized		366		434		1,195		1,418

As of September 30, 2016, unrecognized compensation cost relating to unvested restricted shares totaled $1,940. This amount will be recognized over a remaining weighted average period of 2.0 years.

Performance Based Equity Awards

During the nine months ended September 30, 2016, the Company established the LTIP, 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 presents a summary of activity related to performance based equity awards, and changes during the nine-month period then ended:

	Number of Shares			Weighted- Average Grant- Date Fair Value
Maximum aggregate share payout at January 1, 2016		28,044		$	17.35
Shares forfeited		(3,314	)		17.35
Maximum aggregate share payout at September 30, 2016		24,730			17.35
Minimum aggregate share payout		-			-
Likely aggregate share payout		14,426		$	17.35

Compensation expense recorded for performance based equity awards was $19 and $67 for the three and nine-month periods ended September 30, 2016, respectively.  There was no expense recognized in the prior period as this award program was established in the nine-month period ended September 30, 2016.