ACCOUNTING FOR STOCK BASED COMPENSATION
 9 Months Ended
Sep. 30, 2012
ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]  
ACCOUNTING FOR STOCK BASED COMPENSATION
7.    ACCOUNTING FOR STOCK BASED COMPENSATION

During the nine months ended September 30, 2012 and 2011, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees and the 2004 Stock 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, 2011, 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,
 
 
 
2012
  
2011
  
2012
  
2011
 
Options outstanding – beginning of period
  
2,830,302
   
3,079,040
   
2,893,760
   
3,213,007
 
Options granted
  
-
   
-
   
24,440
   
91,583
 
Options exercised
  
(253,182
)
  
(55,955
)
  
(339,693
)
  
(276,944
)
Options forfeited
  
(5,625
)
  
(10,312
)
  
(7,012
)
  
(14,873
)
Options outstanding – end of period
  
2,571,495
   
3,012,773
   
2,571,495
   
3,012,773
 
Remaining unrecognized compensation expense
 
$
408
  
$
628
  
$
408
  
$
628
 

The weighted average fair value per option at the date of grant for stock options granted was estimated as follows:

 
 
Nine Months Ended September 30,
 
 
 
2012
  
2011
 
Total options granted
  
24,440
   
91,583
 
Estimated fair value on date of grant
 
$
4.09
  
$
4.82
 
Pricing methodology utilized
 
Black- Scholes
  
Black- Scholes
 
Expected life (in years)
  
6.53
   
6.80
 
Interest rate
  
1.21
%
  
2.59
%
Volatility
  
45.17
   
42.35
 
Dividend yield
  
4.04
   
3.62
 
Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and 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 September 30,
  
At or for the Nine Months Ended September 30,
 
 
 
2012
  
2011
  
2012
  
2011
 
Unvested allocated shares – beginning of period
  
328,003
   
324,454
   
324,454
   
309,783
 
Shares granted
  
-
   
-
   
141,289
   
126,304
 
Shares vested
  
-
   
-
   
(135,369
)
  
(109,649
)
Shares forfeited
  
-
   
-
   
(2,371
)
  
(1,984
)
Unvested allocated shares – end of period
  
328,003
   
324,454
   
328,003
   
324,454