10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period endedSeptember 30, 2015

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to

Commission file number 0-27782

Dime Community Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	11-3297463 (I.R.S. employer identification number)
209 Havemeyer Street, Brooklyn, NY (Address of principal executive offices)	11211 (Zip Code)

(718) 782-6200

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all the reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES  ☒NO  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES   ☒NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

LARGE ACCELERATED FILER  ☐ ACCELERATED FILER  ☒ NON -ACCELERATED FILER  ☐ SMALLER REPORTING COMPANY  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES  ☐NO  ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Classes of Common Stock	Number of Shares Outstanding at November 5, 2015
$.01 Par Value	37,300,686

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements
	Consolidated Statements of Financial Condition at September 30, 2015 and December 31, 2014	3
	Consolidated Statements of Income for the Three-Month and Nine-Month Periods Ended September 30, 2015 and 2014	4
	Consolidated Statements of Comprehensive Income for the Three-Month and Nine-Month Periods Ended September 30, 2015 and 2014	4
	Consolidated Statements of Changes in Stockholders' Equity for the Nine Months Ended September 30, 2015 and 2014	5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014	6
	Notes to Condensed Consolidated Financial Statements	7-29
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29-43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43-45
Item 4.	Controls and Procedures	45
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 5.	Other Information	45
Item 6.	Exhibits	46-47
	Signatures	48

This Quarterly Report on Form 10-Q contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "seek," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by Dime Community Bancshares, Inc. (the "Holding Company," and together with its direct and indirect subsidiaries, the "Company") in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual conditions or results to differ materially from those expressed or implied by such forward-looking statements. These factors include, without limitation, the following:

● the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control;

● there may be increases in competitive pressure among financial institutions or from non-financial institutions;

● the net interest margin is subject to material short-term fluctuation based upon market rates;

● changes in deposit flows, loan demand or real estate values may adversely affect the business of The Dime Savings Bank of Williamsburgh (the "Bank");

● changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently;

● changes in corporate and/or individual income tax laws may adversely affect the Company's business or financial condition;

● general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates;

● legislation or regulatory changes may adversely affect the Company's business;

● technological changes may be more difficult or expensive than the Company  anticipates;

● success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates;

● litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; and

● The risks referred to in the section entitled "Risk Factors."

The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.

2

Item 1.  Unaudited Condensed Consolidated Financial Statements

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

(Dollars in thousands except share amounts)

	September 30, 2015			December 31, 2014
ASSETS:
Cash and due from banks	$	74,073		$	78,187
Federal funds sold and other short-term investments		-			250
Total cash and cash equivalents		74,073			78,437
Investment securities held-to-maturity (estimated fair value of $7,478 and $6,315 at September 30, 2015 and December 31, 2014, respectively)(fully unencumbered)		5,349			5,367
Investment securities available-for-sale, at fair value (fully unencumbered)		3,684			3,806
Mortgage-backed securities available-for-sale, at fair value (fully unencumbered)		446			26,409
Trading securities		8,697			8,559
Loans:
Real estate, net		4,490,624			4,117,411
Consumer loans		1,468			1,829
Less allowance for loan losses		(18,959	)		(18,493	)
Total loans, net		4,473,133			4,100,747
Premises and fixed assets, net		15,296			25,065
Premises held for sale		8,799			-
Federal Home Loan Bank of New York ("FHLBNY") capital stock		54,348			58,407
Other real estate owned ("OREO")		148			18
Bank Owned Life Insurance ("BOLI")		84,451			82,614
Goodwill		55,638			55,638
Other assets		48,430			52,040
Total Assets	$	4,832,492		$	4,497,107
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Due to depositors:
Interest bearing deposits	$	2,800,061		$	2,472,199
Non-interest bearing deposits		229,436			187,593
Total deposits		3,029,497			2,659,792
Escrow and other deposits		131,132			91,921
FHLBNY advances		1,069,725			1,173,725
Trust Preferred securities payable		70,680			70,680
Other liabilities		47,579			41,264
Total Liabilities		4,348,613			4,037,382
Commitments and Contingencies
Stockholders' Equity:
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at September 30, 2015 and December 31, 2014)		-			-
Common stock ($0.01 par, 125,000,000 shares authorized, 53,145,798 shares and 52,871,443 shares issued at September 30, 2015 and December 31, 2014, respectively, and 37,189,874 shares and 36,855,019 shares outstanding at September 30, 2015 and December 31, 2014, respectively)		532			529
Additional paid-in capital		259,906			254,358
Retained earnings		445,326			427,126
Accumulated other comprehensive loss, net of deferred taxes		(9,173	)		(8,547	)
Unallocated common stock of Employee Stock Ownership Plan ("ESOP")		(2,371	)		(2,545	)
Unearned Restricted Stock Award common stock		(2,709	)		(3,066	)
Common stock held by Benefit Maintenance Plan ("BMP")		(9,354	)		(9,164	)
Treasury stock, at cost (15,956,924 shares and 16,016,424 shares at September 30, 2015 and December 31, 2014, respectively)		(198,278	)		(198,966	)
Total Stockholders' Equity		483,879			459,725
Total Liabilities And Stockholders' Equity	$	4,832,492		$	4,497,107

See notes to unaudited condensed consolidated financial statements.

3

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest income:
Loans secured by real estate	$	42,109		$	43,477		$	127,370		$	126,311
Other loans		22			26			70			80
Mortgage backed securities		1			223			184			707
Investment securities		254			68			544			274
Federal funds sold and other short-term investments		510			551			1,738			1,609
Total interest  income		42,896			44,345			129,906			128,981
Interest expense:
Deposits and escrow		5,890			4,976			16,780			14,590
Borrowed funds		5,192			7,410			18,148			21,583
Total interest expense		11,082			12,386			34,928			36,173
Net interest income		31,814			31,959			94,978			92,808
Provision (credit) for loan losses		416			(501	)		(891	)		(1,350	)
Net interest income after credit for loan losses		31,398			32,460			95,869			94,158
Non-interest income:
Service charges and other fees		1,013			1,084			2,562			2,507
Net mortgage banking income		41			71			154			1,153
Net (loss) gain on securities		(138	)		(43	)		1,287			35
Net gain on the disposal of other assets		-			-			-			649
Income from BOLI		620			382			1,837			1,147
Other		363			323			1,037			951
Total non-interest income		1,899			1,817			6,877			6,442
Non-interest expense:
Salaries and employee benefits		8,370			7,806			22,870			24,472
Stock benefit plan amortization expense		885			954			2,767			2,912
Occupancy and equipment		2,531			2,513			7,965			7,656
Data processing costs		1,023			814			2,775			2,467
Federal deposit insurance premiums		575			547			1,703			1,576
Other		2,740			2,090			8,274			6,762
Total non-interest expense		16,124			14,724			46,354			45,845
Income before income taxes		17,173			19,553			56,392			54,755
Income tax expense		7,092			7,788			23,004			22,496
Net income	$	10,081		$	11,765		$	33,388		$	32,259
Earnings per Share:
Basic	$	0.28		$	0.33		$	0.92		$	0.90
Diluted	$	0.28		$	0.33		$	0.92		$	0.90
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in thousands)
Net Income	$	10,081		$	11,765		$	33,388		$	32,259
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, net of deferred tax expense of $5 during the three months ended both September 30, 2015 and 2014, and $26 and $21 during the nine months ended September 30, 2015 and 2014, respectively		6			7			31			29
Reduction in (adjustment to) non-credit component of other than temporary impairment ("OTTI"), net of deferred tax expense of $4 during the three months ended both September 30, 2015 and 2014, and $8 and $13 during the nine months ended September 30, 2015 and 2014, respectively		5			4			(10	)		11
Reclassification adjustment for securities sold during the period, net of income tax benefit of $(624) during the nine months ended September 30, 2015 (reclassified from net gain on securities)		-			-			(760	)		-
Net unrealized securities gains (losses) arising during the period, net of deferred tax expense (benefit) of $(79) and $(24) during the three months ended September 30, 2015 and 2014, respectively, and $(64) and $2 during the nine months ended September 30, 2015 and 2014, respectively		(97	)		(30	)		(77	)		3
Change in pension and other postretirement obligations, net of deferred tax expense of $216 and $117 during the three months ended September 30, 2015 and 2014, respectively, and $158 and $351 during the nine months ended September 30, 2015 and 2014, respectively		262			144			190			432
Comprehensive Income	$	10,257		$	11,890		$	32,762		$	32,734

See notes to unaudited condensed consolidated financial statements.

4

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

(Dollars in thousands)

	Nine Months Ended September 30,
	2015			2014
Common Stock (Par Value $0.01):
Balance at beginning of period	$	529		$	528
Shares issued in exercise of options		3			1
Balance at end of period		532			529
Additional Paid-in Capital:
Balance at beginning of period		254,358			252,253
Stock options exercised		4,053			278
Excess tax benefit related to stock benefit plans		204			71
Amortization of excess fair value over cost – ESOP stock and stock options expense		815			847
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		476			654
Balance at end of period		259,906			254,103
Retained Earnings:
Balance at beginning of period		427,126			402,986
Net income for the period		33,388			32,259
Cash dividends declared and paid		(15,188	)		(15,075	)
Balance at end of period		445,326			420,170
Accumulated Other Comprehensive Loss, Net of Deferred Taxes:
Balance at beginning of period		(8,547	)		(4,759	)
Other comprehensive (loss) income recognized during the period, net of tax		(626	)		475
Balance at end of period		(9,173	)		(4,284	)
Unallocated Common Stock ofESOP:
Balance at beginning of period		(2,545	)		(2,776	)
Amortization of earned portion of ESOP stock		174			173
Balance at end of period		(2,371	)		(2,603	)
Unearned Restricted Stock Award Common Stock:
Balance at beginning of period		(3,066	)		(3,193	)
Amortization of earned portion of restricted stock awards		1,418			1,497
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		(1,061	)		(1,930	)
Balance at end of period		(2,709	)		(3,626	)
Common Stock Held by BMP:
Balance at beginning of period		(9,164	)		(9,013	)
Award distribution		-			1
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		(190	)		(152	)
Balance at end of period		(9,354	)		(9,164	)
Treasury Stock, at cost:
Balance at beginning of period		(198,966	)		(200,520	)
Treasury shares repurchased (20,000 shares during the nine months ended September 30, 2015)		(300	)		-
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		988			1,598
Balance at end of period		(198,278	)		(198,922	)
TOTAL STOCKHOLDERS' EQUITY AT THE END OF PERIOD	$	483,879		$	456,203

See notes to unaudited condensed consolidated financial statements.

5

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Nine Months Ended September 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	33,388		$	32,259
Adjustments to reconcile net income to net cash provided by operating activities:
Net gain on investment and mortgage backed securities sold		(1,384	)		-
Net loss (gain) recognized on trading securities		97			(35	)
Net gain on the sale of loans		-			(27	)
Net gain on the sale of OREO and other assets		-			(649	)
Net depreciation, amortization and accretion		2,178			1,978
Stock plan compensation (excluding ESOP)		1,449			1,584
ESOP compensation expense		958			934
Credit for loan losses		(891	)		(1,350	)
Credit to reduce the liability for loans sold with recourse		-			(1,040	)
Increase in cash surrender value of BOLI		(1,837	)		(1,147	)
Deferred income tax provision (credit)		148			(116	)
Excess tax benefit from stock benefit plans		(204	)		(71	)
Changes in assets and liabilities:
Decrease (Increase) in other assets		4,178			(341	)
Increase in other liabilities		6,469			1,512
Net cash provided by Operating Activities		44,549			33,491
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities held-to-maturity		127			76
Proceeds from calls and principal repayments of investment securities available-for-sale		-			15,000
Proceeds from sales of investment securities available-for-sale		2,070			-
Proceeds from the sales of trading securities		1,340			-
Proceeds from sale of mortgage backed securities available for sale		24,307			-
Purchases of investment securities available-for-sale		(2,038	)		(24	)
Purchases of mortgage backed securities available-for-sale		-			(875	)
Acquisition of trading securities		(1,572	)		(200	)
Principal collected on mortgage backed securities available-for-sale		1,589			4,645
Proceeds from the sale of loans held for sale previously classified as portfolio loans		9,905			12,970
Purchases of loans		-			(221,924	)
Loans originated, net of repayments		(381,530	)		(145,861	)
Proceeds from the sale of premises		-			4,273
Purchases of fixed assets		(1,071	)		(1,500	)
Redemption(Purchase) of FHLBNY capital stock		4,059			(7,184	)
Net cash used in Investing Activities		(342,814	)		(340,604	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in due to depositors		369,705			115,467
Increase in escrow and other deposits		39,211			26,426
Repayments of FHLBNY advances		(1,829,000	)		(695,000	)
Proceeds from FHLBNY advances		1,725,000			888,225
Proceeds from exercise of stock options		4,056			278
Excess tax benefit from stock benefit plans		204			71
Release of stock for benefit plan awards		213			171
Treasury shares repurchased		(300	)		-
Cash dividends paid to stockholders		(15,188	)		(15,075	)
Net cash provided by Financing Activities		293,901			320,563
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(4,364	)		13,450
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		78,437			45,777
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	74,073		$	59,227
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	$	18,809		$	23,135
Cash paid for interest		35,269			35,689
Loans transferred to OREO		130			-
Transfer of premises to held for sale		8,799			12,943
Loans transferred to held for sale		9,534			-
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity		58			49
Net (increase) decrease in non-credit component of OTTI		(18	)		24

See notes to unaudited condensed consolidated financial statements.

6

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Dollars in Thousands Except Per Share Amounts)

1.   NATURE OF OPERATIONS

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank.  The Holding Company's direct subsidiaries are the Bank, 842 Manhattan Avenue Corp., and Dime Community Capital Trust 1.  The Bank's direct subsidiaries are Boulevard Funding Corp., Dime Insurance Agency Inc., DSBW Preferred Funding Corporation, DSBW Residential Preferred Funding Corp., Dime Reinvestment Corp., 195 Havemeyer Corp. and DSB Holdings NY, LLC.

    The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the New York City ("NYC") boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank's principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed used loans, as well as mortgage-backed securities ("MBS"), obligations of the U.S. Government and Government Sponsored Enterprises ("GSEs"), and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

2.   SUMMARY OF ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company's financial condition as of September 30, 2015 and December 31, 2014, the results of operations and statements of comprehensive income for the three-month and nine-month periods ended September 30, 2015 and 2014, and the changes in stockholders' equity and cash flows for the nine-month periods ended September 30, 2015 and 2014.  The results of operations for the three-month and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2015.  Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the U. S. Securities and Exchange Commission ("SEC').

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Please see "Part I - Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates.

   These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014 and notes thereto.

3.   RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08").  ASU 2014-08 changed the criteria for reporting discontinued operations and provided financial statement users additional information related to the assets, liabilities, income, and expenses of discontinued operations.  ASU 2014-08 also sought to both clarify confusion related to, and inconsistent financial reporting of, discontinued operations under existing GAAP guidance, and enhance convergence between GAAP and International Financial Reporting Standards. Under ASU 2014-08, only disposals that represent strategic shifts and have a major effect on the organization's operations and financial results are to be presented as discontinued operations.  ASU 2014-08 further requires disclosure of the pretax income attributable to the disposal of a significant part of an organization that does not meet the criteria for discontinued operations reporting, providing users information about the ongoing trends in a reporting organization's results from continuing operations. The Company adopted ASU 2014-08 effective January 1, 2015. Adoption of ASU 2014-08 did not have a material impact upon the Company's consolidated financial condition or results of operations.

7

4.   TREASURY STOCK

There were no treasury stock repurchases during the three months ended September 30, 2015, or the three-month or nine-month periods ended September 30, 2014. The Holding Company repurchased 20,000 shares of its common stock into treasury during the nine months ended September 30, 2015 at a weighted average cost of $15.00 per share.

On April 23, 2015, 11,557 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the BMP. The closing price of the Holding Company's common stock on that date was $16.37, and the shares were released utilizing the average historical cost method. On April 30, 2015, 68,069 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the Dime Community Bancshares, Inc. 2013 Equity and Incentive Plan (the "2013 Equity and Incentive Plan"). The closing price of the Holding Company's common stock on that date was $15.92, and the shares were released utilizing the average historical cost method.

On April 30, 2014, 121,333 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under either the Dime Community Bancshares, Inc. 2004 Stock Incentive Plan (the "2004 Stock Incentive Plan") or the 2013 Equity and Incentive Plan, and 9,364 shares of treasury stock were released in order to fulfill benefit obligations under the BMP.  The closing price of the Holding Company's common stock on that date was $16.30, and the shares were released utilizing the average historical cost method.

Shares either released from treasury stock for earned equity awards or returned to treasury stock due to forfeited equity awards were otherwise immaterial during the three-month and nine-month periods ended September 30, 2015 and 2014.

5.   OTHER COMPREHENSIVE INCOME (LOSS)

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net (loss) gain on securities in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	9		$	4		$	5
Change in unrealized loss on securities transferred to held to maturity		11			5			6
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(176	)		(79	)		(97	)
Total securities available-for-sale		(176	)		(79	)		(97	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		478			216			262
Change in the net actuarial gain or loss		-			-			-
Total defined benefit plans		478			216			262
Total other comprehensive income	$	322		$	146		$	176
Three Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held to maturity		12			5			7
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(54	)		(24	)		(30	)
Total securities available-for-sale		(54	)		(24	)		(30	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		261			117			144
Total defined benefit plans		261			117			144
Total other comprehensive income	$	227		$	102		$	125

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	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Nine Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	(18	)	$	(8	)	$	(10	)
Change in unrealized loss on securities transferred to held to maturity		57			26			31
Total securities held-to-maturity and transferred securities		39			18			21
Securities available-for-sale:
Reclassification adjustment for net gains included in net (loss) gain on securities		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		(141	)		(64	)		(77	)
Total securities available-for-sale		(1,525	)		(688	)		(837	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		1,412			636			776
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		348			158			190
Total other comprehensive loss	$	(1,138	)	$	(512	)	$	(626	)
Nine Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	24		$	13		$	11
Change in unrealized loss on securities transferred to held to maturity		50			21			29
Total securities held-to-maturity and transferred securities		74			34			40
Securities available-for-sale:
Change in net unrealized gain during the period		5			2			3
Total securities available-for-sale		5			2			3
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		783			351			432
Total defined benefit plans		783			351			432
Total other comprehensive income	$	862		$	387		$	475

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to-Maturity and Transferred Securities			Securities Available-for-Sale			Defined Benefit Plans			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	(8,547	)
Other comprehensive income (loss) before reclassifications		21			(77	)		(586	)		(642	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		776			16
Net other comprehensive income (loss) during the period		21			(837	)		190			(626	)
Balance as of September 30, 2015	$	(805	)	$	(101	)	$	(8,267	)	$	(9,173	)
Balance as of January 1, 2014	$	(878	)	$	1,319		$	(5,200	)	$	(4,759	)
Other comprehensive income before reclassifications		41			2			-			43
Amounts reclassified from accumulated other comprehensive loss		-			-			432			432
Net other comprehensive income during the period		41			2			432			475
Balance as of September 30, 2014	$	(837	)	$	1,321		$	(4,768	)	$	(4,284	)

6.   EARNINGS PER SHARE ("EPS")

Basic EPS is computed by dividing income attributable to common stock by the weighted-average common shares outstanding during the reporting period.  Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if "in the money" stock options were exercised and converted into common stock.  In determining the weighted average shares outstanding for basic and diluted EPS, treasury stock and unallocated ESOP shares are excluded.  Vested restricted stock award shares are included in the calculation of the weighted average shares outstanding for basic and diluted EPS.  Unvested restricted stock award shares are recognized as a special class of securities under ASC 260.

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The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income per the Consolidated Statements of Income	$	10,081		$	11,765		$	33,388		$	32,259
Less: Dividends paid and earnings allocated to participating securities		(31	)		(41	)		(105	)		(128	)
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding, including participating securities		36,552,925			36,215,186			36,414,645			36,164,129
Less: weighted average participating securities		(224,102	)		(295,044	)		(252,162	)		(305,615	)
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Basic EPS	$	0.28		$	0.33		$	0.92		$	0.90
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Weighted average common equivalent shares outstanding		92,631			54,197			87,887			82,231
Weighted average common and equivalent shares outstanding		36,421,454			35,974,339			36,250,370			35,940,745
Diluted EPS	$	0.28		$	0.33		$	0.92		$	0.90

Common equivalent shares resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-moneystock options during the period.

      There were 80,000 and 270,996 weighted-average stock options outstanding for the three-month periods ended September 30, 2015 and 2014, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.  There were 132,976 and 309,444 weighted-average stock options outstanding for the nine-month periods ended September 30, 2015 and 2014, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.

7.    ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month and nine-month periods ended September 30, 2015 and 2014, 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 15 to the Company's audited consolidated financial statements for the year ended December 31, 2014, 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,
	2015	2014	2015	2014
Options outstanding – beginning of period	646,201	979,916	979,916	1,615,771
Options granted	-	-	-	-
Options exercised	-	-	(274,355)	(16,960)
Options that expired prior to exercise	-	-	(59,360)	(618,895)
Options outstanding – end of period	646,201	979,916	646,201	979,916
Intrinsic value of options exercised	$-	$-	$384	$6
Compensation expense recognized	-	23	31	86
Remaining unrecognized compensation expense	-	54	-	54
Intrinsic value of outstanding options at period end	1,609	468	1,609	468
Intrinsic value of vested options at period end	1,609	468	1,609	468
Weighted average exercise price of vested options – end of period	14.57	14.73	14.57	14.73

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There were no grants of stock options during the three-month and nine-month periods ended September 30, 2015 and 2014.

Restricted Stock Awards

Prior to June 2014, the Company issued restricted stock awards to outside directors and certain officers under the 2004 Equity Plan. Presently, the Company issues restricted stock awards periodically to outside directors and certain officers under 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 or 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,
	2015	2014	2015	2014
Unvested allocated shares – beginning of period	224,372	295,044	289,660	318,314
Shares granted	-	-	68,069	121,333
Shares vested	-	-	(132,377)	(141,361)
Shares forfeited	(478)	-	(1,458)	(3,242)
Unvested allocated shares – end of period	223,894	295,044	223,894	295,044
Compensation recorded to expense	$434	$501	$1,418	$1,497

8.   LOANS RECEIVABLE AND CREDIT QUALITY

Loans are reported at the principal amount outstanding, net of unearned fees or costs and the allowance for loan losses.  Interest income on loans is recorded using the level yield method.  Under this method, discount accretion and premium amortization are included in interest income.  Loan origination fees and certain direct loan origination costs are deferred and amortized as yield adjustments over the contractual loan terms.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying them as to credit risk.  This analysis includes all non-homogeneous loans, such as multifamily residential, mixed use residential (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the residential units), mixed use commercial real estate (i.e.,loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the commercial units), commercial real estate and construction and land acquisition loans, as well as one-to four family residential and cooperative and condominium  apartment loans with balances in excess of the Fannie Mae ("FNMA") conforming loan limits for high-cost areas such as the Bank's primary lending area ("FNMA Limits") that are deemed to meet the definition of impaired.  This analysis is performed on a quarterly basis.  The Company uses the following definitions for risk ratings:

Special Mention.  Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date.

Substandard.  Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.

   The Bank had no loans classified as doubtful as of September 30, 2015 or December 31, 2014. All real estate loans not classified as Special Mention or Substandard were deemed pass loans at both September 30, 2015 and December 31, 2014.

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The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

	Balance at September 30, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	8,098	$	-	$	-	$	-	$	-	$	8,098
Pass		58,311		3,550,193		373,219		459,773		-		4,441,496
Special Mention		1,347		9,339		1,630		5,620		-		17,936
Substandard		1,862		7,841		5,573		7,818		-		23,094
Doubtful		-		-		-		-		-		-
Total	$	69,618	$	3,567,373	$	380,422	$	473,211	$	-	$	4,490,624

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

	Balance at December 31, 2014
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	9,091	$	-	$	-	$	-	$	-	$	9,091
Pass		60,764		3,271,430		317,718		391,227		-		4,041,139
Special Mention		1,370		20,738		4,944		6,431		-		33,483
Substandard		2,275		6,280		6,005		19,138		-		33,698
Doubtful		-		-		-		-		-		-
Total	$	73,500	$	3,298,448	$	328,667	$	416,796	$	-	$	4,117,411

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

For consumer loans, the Company evaluates credit quality based on payment activity.  Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at September 30, 2015	Balance at December 31, 2014
Performing	$1,466	$1,825
Non-accrual	2	4
Total	$1,468	$1,829

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The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At September 30, 2015
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, including  condominium and cooperative apartment	$174	$4	$630	$834	$1,642	$67,976	$69,618
Multifamily residential and residential mixed use	2,244	-	374	547	3,165	3,564,208	3,567,373
Commercial mixed use real estate	130	-	406	-	536	379,886	380,422
Commercial real estate	-	-	1,093	207	1,300	471,911	473,211
Total real estate	$2,548	$4	$2,503	$1,588	$6,643	$4,483,981	$4,490,624
Consumer	$2	$-	$-	$2	$4	$1,464	$1,468

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of September 30, 2015.

At December 31, 2014
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, includingcondominium and cooperative apartment	$240	$-	$-	$1,310	$1,550	$71,950	$73,500
Multifamily residential and residential mixed use	1,187	-	2,922	167	4,276	3,294,172	3,298,448
Commercial mixed use real estate	-	-	411	-	411	328,256	328,667
Commercial real estate	-	-	-	4,717	4,717	412,079	416,796
Total real estate	$1,427	$-	$3,333	$6,194	$10,954	$4,106,457	$4,117,411
Consumer	$2	$-	$-	$4	$6	$1,823	$1,829

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014.

Accruing Loans 90 Days or More Past Due

The Bank continued accruing interest on eight real estate loans with an aggregate outstanding balance of $2,503 at September 30, 2015, and eight real estate loans with an aggregate outstanding balance of $3,333 at December 31, 2014, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity.  These loans were well secured and were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above.

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Troubled Debt Restructurings ("TDRs")

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
One- to four-family residential, including condominium and cooperative apartment	2	$599	2	$605
Multifamily residential and residential mixed use	3	705	4	1,105
Commercial mixed use real estate	1	4,365	1	4,400
Commercial real estate	2	3,651	4	13,707
Total real estate	8	$9,320	11	$19,817

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
Outstanding principal balance at period end	8	$9,320	11	$19,817
TDRs on accrual status at period end	7	9,113	9	15,100
TDRs on non-accrual status at period end	1	207	2	4,717

Accrual status for TDRs is determined separately for each TDR in accordance with the Bank's policies for determining accrual or non-accrual status.  At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be on either accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing), it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank's policy and agency regulations.

        The Company has not restructured troubled consumer loans, as its consumer loan portfolio has not experienced any problem issues warranting restructuring.  Therefore, all TDRs were collateralized by real estate at both September 30, 2015 and December 31, 2014.

There were no loans modified in a manner that met the criteria of a TDR during the three-month and nine-month periods ended September 30, 2015.

The following table summarizes activity related to TDRs for the periods indicated:

	For the Three Months Ended September 30, 2014			For the Nine Months Ended September 30, 2014
	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
Loan modifications during the period  that met the definition of a TDR:
Commercial mixed use real estate	-	-	-	1	$4,400	$4,400
Commercial real estate	1	$3,500	$3,500	1	3,500	3,500
TOTAL	1	$3,500	$3,500	2	$7,900	$7,900

The Bank's allowance for loan losses at September 30, 2015 did not reflect any allocated reserve associated with TDRs.  The Bank's allowance for loan losses at December 31, 2014 reflected $19 of allocated reserve associated with TDRs. Activity related to reserves associated with TDRs was immaterial during the three-month and nine-month periods ended September 30, 2015 and 2014.

As of September 30, 2015 and December 31, 2014, the Bank had no loan commitments to borrowers with outstanding TDRs.

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A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms.  All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.

There were no TDRs which defaulted within twelve months following the modification during the three-month or nine-month periods ended September 30, 2015 and 2014 (thus no significant impact to the allowance for loan losses during those periods).

Impaired Loans

A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Bank considers TDRs and non-accrual multifamily residential and commercial real estate loans, along with non-accrual one- to four-family loans in excess of the FNMA Limits, to be impaired.  Non-accrual one-to four-family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR.

Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan's pre-modification rate for some of the performing TDRs).  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances).  If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment.  Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses.

Please refer to Note 9 for tabular information related to impaired loans.

Loans Re-acquired from FNMA

Until February 20, 2014, the Bank serviced a pool of multifamily loans sold to FNMA, and retained an obligation (off-balance sheet contingent liability) to absorb a portion of any losses (as defined in the seller/servicer agreement) incurred by FNMA in connection with the loans sold (the "First Loss Position").  This pool of loans was re-acquired on February 20, 2014, and the First Loss Position was extinguished. Since re-acquisition, the credit quality of these loans has been evaluated in accordance with the policies and procedures discussed in this note.

The Company paid an aggregate premium of $13,163 on the real estate loans re-acquired from FNMA during the nine months ended September 30, 2014.  The premium is being amortized as an adjustment to interest income throughout the remaining estimated life of the loans. At September 30, 2015 and December 31, 2014, the remaining unamortized premium totaled $3,944 and $7,950, respectively.

9.   ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses may consist of specific and general components.  The Bank's periodic evaluation of its allowance for loan losses (specific or general) is comprised of four primary components: (1) impaired loans; (2) non-impaired substandard loans; (3) non-impaired special mention loans; and (4) pass graded loans.  Within these components, the Company has identified the following portfolio segments for purposes of assessing its allowance for loan losses (specific or general): (1) real estate loans; and (2) consumer loans.  Within these segments, the Bank analyzes the allowance for loan losses based upon the underlying collateral type (classes). Due to their small homogeneous balances, consumer loans were not individually evaluated for impairment as of both September 30, 2015 and December 31, 2014.

Impaired Loan Component

All multifamily residential, mixed use, commercial real estate and construction loans that are deemed to meet the definition of impaired are individually evaluated for impairment.  In addition, all condominium or cooperative apartment

15

and one- to four-family residential real estate loans in excess of the FNMA Limits are individually evaluated for impairment.  Impairment is typically measured using the difference between the outstanding loan principal balance and either: (1) the likely realizable value of a note sale; (2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or (3) the present value of estimated future cash flows (using the loan's pre-modification rate in the case of some performing TDRs).  For impaired loans on non-accrual status, either of the initial two measurements is utilized.

All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the present value of the expected cash flows from the debt service or the potential net liquidation proceeds of the underlying collateral in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, the likely realizable net proceeds from either a note sale or the liquidation of the collateral are generally considered when measuring impairment.  While measured impairment is generally charged off immediately, impairment attributed to a reduction in the present value of expected cash flows of a performing TDR is generally reflected as an allocated reserve within the allowance for loan losses. At September 30, 2015 and December 31, 2014, there were no allocated reserves related to TDRs within the allowance for loan losses.

Smaller balance homogeneous real estate loans, such as condominium or cooperative apartment and one-to four-family residential real estate loans with balances equal to or less than the FNMA Limits, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

Non-Impaired Substandard Loan Component

At both September 30, 2015 and December 31, 2014, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank's pool of such loans that were derived based upon an analysis of historical losses over a measurement timeframe.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Substandard loans at September 30, 2015 and December 31, 2014.  Based upon this methodology, increases or decreases in the amount of either non-impaired Substandard loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on non-impaired Substandard loans.  As a result, the allowance for loan losses associated with non-impaired Substandard loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Substandard loans was $284 at September 30, 2015 and $371 at December 31, 2014.  The decline resulted from both a reduction of $4,002 in the balance of such loans from December 31, 2014 to September 30, 2015, as well as a lower average loss expectation derived as of September 30, 2015 compared to December 31, 2014.

All non-impaired Substandard loans were deemed sufficiently well secured and performing to have remained on accrual status both prior and subsequent to their downgrade to the Substandard internal loan grade.

Non-Impaired Special Mention Loan Component

At both September 30, 2015 and December 31, 2014, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected an expected loss percentage on the Bank's pool of such loans that was derived based upon an analysis of historical losses over a measurement timeframe.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Special Mention loans at September 30, 2015 and December 31, 2014.  Based upon this methodology, increases or decreases in the amount of either non-impaired Special Mention loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive expected the loss percentage, would impact the level of reserves determined on non-impaired Special Mention loans.  As a result, the allowance for loan losses associated with non-impaired Special Mention loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Special Mention loans declined from $228 at December 31, 2014 to $98 at September 30, 2015, due to both a reduction of $15,547 in the balance of such loans and a lower expected loss percentage applied to such loans at September 30, 2015 compared to December 31, 2014 under the methodology employed.

Pass Graded Loan Component

The Bank initially looks to the underlying collateral type when determining the allowance for loan losses associated with pass graded real estate loans.  The following underlying collateral types are analyzed separately: 1) one- to four family residential and condominium or cooperative apartments securing loans in excess of the FNMA Limits; 2) multifamily

16

residential and residential mixed use; 3) commercial mixed use real estate, 4) commercial real estate; and 5) construction and land acquisition.  Within the analysis of each underlying collateral type, the following elements are additionally considered and provided weighting in determining the allowance for loan losses for pass graded real estate loans:

(i) Charge-off experience (including peer charge-off experience)

(ii) Economic conditions

(iii) Underwriting standards or experience

(iv) Loan concentrations

(v) Regulatory climate

(vi) Nature and volume of the portfolio

(vii) Changes in the quality and scope of the loan review function

The following is a brief synopsis of the manner in which each element is considered:

(i)  Charge-off experience - Loans within the pass graded loan portfolio are segmented by significant common characteristics, against which historical loss rates are applied.  The Bank also reviews and considers the charge-off experience of peer banks in its lending marketplace in order to determine the existence of potential losses that could take a longer period to flow through its allowance for loan losses.

(ii) Economic conditions - At both September 30, 2015 and December 31, 2014, the Bank assigned a loss allocation to its entire pass graded real estate loan portfolio based, in part, upon a review of economic conditions affecting the local real estate market. Specifically, the Bank considered both the level of, and recent trends in: 1) the local and national unemployment rate, 2) residential and commercial vacancy rates, 3) real estate sales and pricing, and 4) delinquencies in the Bank's loan portfolio.

(iii) Underwriting standards or experience - Underwriting standards are reviewed to ensure that changes in the Bank's lending policies and practices are adequately evaluated for risk and reflected in its analysis of potential credit losses.  Loss expectations associated with changes in the Bank's lending policies and practices, if any, are then incorporated into the methodology.

(iv) Loan concentrations - The Bank regularly reviews its loan concentrations (borrower, collateral type and location) in order to ensure that heightened risk has not evolved that has not been captured through other factors.  The risk component of loan concentrations is regularly evaluated for reserve adequacy.

(v) Regulatory climate – Consideration is given to public statements made by the banking regulatory agencies that have a potential impact on the Bank's loan portfolio and allowance for loan losses.

(vi) Nature and volume of the portfolio – The Bank considers any significant changes in the overall nature and volume of its loan portfolio.

(vii) Changes in the quality and scope of the loan review function – The Bank considers the potential impact upon its allowance for loan losses of any adverse change in the quality and scope of the loan review function.

Consumer Loans

Due to their small individual balances, the Bank does not evaluate individual consumer loans for impairment.  Loss percentages are applied to aggregate consumer loans based upon both their delinquency status and loan type.  These loss percentages are derived from a combination of the Company's historical loss experience and/or nationally published loss data on such loans.  Consumer loans in excess of 120 days delinquent are typically fully charged off against the allowance for loan losses.

17

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$126	$14,374	$1,682	$2,349	$-	$18,531	$22
Provision (credit) for loan losses	19	288	92	18	-	417	(1)
Charge-offs	(6)	(1)	-	(4)	-	(11)	-
Recoveries	1	-	-	-	-	1	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21
Ending balance – loans individually evaluated for impairment	$599	$1,252	$4,365	$3,651	$-	$9,867	$-
Ending balance – loans collectively evaluated for impairment	69,019	3,566,121	376,057	469,560	-	4,480,757	1,468
Allowance balance associated with loans individually evaluated for impairment	-	-	-	-	-	-	-
Allowance balance associated with loans collectively evaluated for impairment	140	14,661	1,774	2,363	-	18,938	21
Total Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At December 31, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Ending balance – loans individually    evaluated for impairment	$605	$1,272	$4,400	$13,707	$-	$19,984	$-
Ending balance – loans collectively    evaluated for impairment	72,895	3,297,176	324,267	403,089	-	4,097,427	1,829
Allowance balance associated with loans    individually evaluated for impairment	-	-	-	19	-	19	-
Allowance balance associated with loans    collectively evaluated for impairment	150	13,852	1,644	2,804	-	18,450	24

At or for the Three Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$304	$14,319	$1,609	$3,377	$-	$19,609	$24
Provision (credit) for loan losses	(88)	(115)	198	(498)	-	(503)	2
Charge-offs	(14)	(19)	-	(22)	-	(55)	-
Recoveries	1	-	19	1	-	21	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

18

At or for the Nine Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$150	$13,852	$1,644	$2,823	$-	$18,469	$24
Provision (credit) for loan losses	99	848	143	(1,980)	-	(890)	(1)
Charge-offs	(113)	(42)	(37)	(5)	-	(197)	(2)
Recoveries	4	3	24	1,525	-	1,556	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At or for the Nine Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$236	$13,840	$3,003	$3,047	$3	$20,129	$24
Provision (credit) for loan losses	(118)	239	(1,508)	34	(3)	(1,356)	6
Charge-offs	(37)	(69)	(30)	(232)	-	(368)	(4)
Recoveries	122	175	361	9	-	667	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At September 30, 2015
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including  Condominium and Cooperative Apartment
With no allocated reserve	$638	$599	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,252	1,252	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,365	4,365	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	3,658	3,651	-
With an allocated reserve	-	-	-
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$9,913	$9,867	$-
With an allocated reserve	$-	$-	$-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

19

	At December 31, 2014
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$646	$605	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,272	1,272	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,425	4,400	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	10,306	8,207	-
With an allocated reserve	5,500	5,500	19
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$16,649	$14,484	$-
With an allocated reserve	$5,500	$5,500	$19

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014
	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$601	$11	$769	$12	$602	$34	$783	$47
With an allocated reserve	-	-	-	-	-	-	52	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,074	10	2,483	16	1,123	56	2,366	72
With an allocated reserve	-	-	-	-	-	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,383	44	2,200	44	4,388	132	2,200	193
With an allocated reserve	-	-	2,200	-	-	-	2,200	-
Commercial Real Estate
With no allocated reserve	5,169	35	6,863	79	5,929	106	7,286	120
With an allocated reserve	-	-	10,259	73	1,375	97	10,272	423
Construction
With no allocated reserve	-	-	-	-	-	-	-	-
With an allocated reserve	-	-	-	-	-	-	-	-
Total
With no allocated reserve	$11,227	$100	$12,315	$151	$12,042	$328	$12,635	$432
With an allocated reserve	$-	$-	$12,459	$73	$1,375	$97	$12,524	$423

20

Reserve Liability for First Loss Position

The reserve liability maintained in connection with the First Loss Position was recorded as a component of other liabilities, and was estimated using a methodology similar to the allowance for loan losses, with periodic increases or decreases recognized through provisions, charge-offs or recoveries. On February 20, 2014, the Bank repurchased the remaining loans within the pool previously sold to FNMA, and extinguished both the First Loss Position and the remaining $1,040 related reserve liability.

10. INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at September 30, 2015:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$15,553	$5,349	$2,382	$(253)	$7,478
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,894	3,894	5	(215)	3,684
MBS
Pass-through MBS issued by GSEs	431	431	15	-	446

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $874 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2014:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
TRUPS	$15,815	$5,367	$1,119	$(171)	$6,315
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,860	3,860	-	(124)	3,736
Agency notes	70	70	-	-	70
MBS
Pass-through MBS issued by GSEs	24,154	24,154	1,453	-	25,607
Private issuer pass through MBS	449	449	6	-	455
Private issuer collateralized mortgage obligations ("CMOs")	343	343	4	-	347

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $932 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The held-to-maturity TRUPS had a weighted average term to maturity of 19.2 years at September 30, 2015.  At September 30, 2015, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 12.4 years. All of the pass-through MBS issued by GSEs possess an annual interest rate adjustment.

There were no sales of investment securities during the three-month periods ended September 30, 2015 and 2014, and during the nine months ended September 30, 2014, as the entire gain/loss on securities shown in the unaudited statements of income for these periods resulted from market valuation changes on trading securities. Proceeds from the sales of investment securities available-for-sale totaled $2,070 during the nine months ended September 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. There were no sales of MBS available-for-sale during the three-month periods ended September 30, 2015 and 2014, and during the nine months ended September 30, 2014. Proceeds from the sales of MBS available-for-sale totaled $24,307 during the nine months ended September 30, 2015. Gross gains of $1,395 and gross losses of $7 were recognized on these sales.

21

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the three-month and nine-month periods ended September 30, 2015 and 2014 are disclosed in the condensed consolidated statements of comprehensive income.

As of each reporting period through September 30, 2015, the Company has applied the protocol established by ASC 320-10-65 in order to determine whether OTTI existed for its TRUPS and/or to measure, for TRUPS that have been determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI.  As of September 30, 2015, five TRUPS were determined to meet the criteria for OTTI based upon this analysis.  At September 30, 2015, these five securities had credit ratings ranging from "C" to "Caa3."

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended September 30, 2015			At or for the Three Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,769	$596	$9,365	$8,945	$585	$9,530
Amortization of previously recognized OTTI	(26)	(9)	(35)	-	(8)	(8)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

	At or for the Nine Months Ended September 30, 2015			At or for the Nine Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,945	$569	$9,514	$8,945	$601	$9,546
Accretion (Amortization) of previously recognized OTTI	(202)	18	(184)	-	(24)	(24)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

The following table summarizes the gross unrealized losses and fair value of investment securities as of September 30, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,442	$253	$2,442	$253
Available-for-Sale Securities:
Registered Mutual Funds	3,476	215	-	-	3,476	215

TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months

At September 30, 2015, impairment of two TRUPS was deemed temporary, as management believed that the full recorded balance of the investments would be realized.  In making this determination, management considered the following:

● Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, the securities could reasonably be expected to continue making all contractual payments

● The Company does not intend to sell these securities prior to full recovery of their impairment

22

● There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell these securities prior to their forecasted recovery or maturity

● The securities have a pool of underlying issuers comprised primarily of banks

● None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates)

● The securities feature either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security

● The securities are adequately collateralized

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2014, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,562	$171	$2,562	$171
Available-for-Sale Securities:
Registered Mutual Funds	3,736	124	-	-	3,736	124

11.   FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value hierarchy established under ASC 820-10 is summarized as follows:

Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 Inputs – Significant unobservable inputs for the asset or liability.  Significant unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

23

Assets Measured at Fair Value on a Recurring Basis at September 30, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	995	$	995	$	-	$	-
International Equity Mutual Funds		273		273		-		-
Fixed Income Mutual Funds		7,429		7,429		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,183		1,183		-		-
International Equity Mutual Funds		372		372		-		-
Fixed Income Mutual Funds		2,129		2,129		-		-
Pass-through MBS issued by GSEs		446		-		446		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2014
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,399	$	1,399	$	-	$	-
International Equity Mutual Funds		159		159		-		-
Fixed Income Mutual Funds		7,001		7,001		-		-
Investment securities available-for-sale:
Agency notes		70		-		70		-
Registered Mutual Funds:
Domestic Equity Mutual Funds		2,160		2,160		-		-
International Equity Mutual Funds		415		415		-		-
Fixed Income Mutual Funds		1,161		1,161		-		-
Pass-through MBS issued by GSEs		25,607		-		25,607		-
Private issuer pass through MBS		455		-		455		-
Private issuer CMOs		347		-		347		-

The Company's available-for-sale investment securities and MBS are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable.  Prioritization of inputs may vary on any given day based on market conditions.

The pass-through MBS issued by GSEs all possessed the highest possible credit rating published by at least one established credit rating agency as of September 30, 2015 and December 31, 2014. Obtaining market values as of September 30, 2015 and December 31, 2014 for these securities utilizing significant observable inputs was not difficult due to their considerable demand. The agency notes, private issuer pass through MBS and private issuer CMOs owned by the Company at December 31, 2014 were sold during the nine months ended September 30, 2015. For each security classification, the value received from the sale approximated the most recently obtained pricing utilizing the methodology indicated above.

There were no assets measured at fair value on a non-recurring basis as of September 30, 2015. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2014:

Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2014
		Fair Value Measurements Using
Description	Total	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Impaired loans:
Commercial Mixed Use Real Estate	$4,400	$-	$-	$4,400

Loans Held for Sale - Loans held for sale are valued at the contractual sales price negotiated and agreed to by the Bank and a third party purchaser (deemed a Level 2 input).

Impaired Loans - Loans with certain characteristics are evaluated individually for impairment. A loan is considered impaired under ASC 310-10-35 when, based upon existing information and events, it is probable that the Bank will be

24

unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Bank's impaired loans at September 30, 2015 and December 31, 2014 were collateralized by real estate and were thus carried at the lower of the outstanding principal balance or the estimated fair value of the collateral.  Fair value is estimated through either a negotiated note sale price (Level 3 input), or, more commonly, a recent real estate appraisal (Level 3 input).  The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

An appraisal is generally ordered for all impaired multifamily residential, mixed use and commercial real estate loans for which the most recent appraisal is more than one year old.  The Bank never adjusts independent appraisal data upward.  Occasionally, management will adjust independent appraisal data downward based upon its own lending expertise and/or experience with the subject property, utilizing such factors as potential note sale values, or a more refined estimate of costs to repair and time to lease the property.  Adjustments for potential disposal costs are also considered when determining the final appraised value.

As of September 30, 2015, there were no impaired loans measured at fair value. As of December 31, 2014, impaired loans measured for impairment using the estimated fair value of the collateral had an aggregate principal balance of $4,400, and no valuation allowance within the allowance for loan losses. Impaired loans measured at fair value using the estimated fair value of the collateral had no impact upon the provision for loan losses during the three-month or nine-month periods ended either September 30, 2015 or 2014.

The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis at December 31, 2014:

Fair Value Derived

Valuation Technique Utilized

Significant Unobservable Input(s)

Minimum Value

Maximum Value

Weighted Average Value

$

4,400

Income approach only

Capitalization rate

N/A

(1)

N/A

(1)

7.5

%

(1)  Only one loan in this population.

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at September 30, 2015 and December 31, 2014 were as follows:

			Fair Value at September 30, 2015 Using
At September 30, 2015	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	74,073	$	74,073		$	-		$	-		$	74,073
Federal funds sold and other short-term investments		-		-			-			-			-
Investment securities held to maturity (TRUPS)		5,349		-			7,478			-			7,478
Loans, net (excluding impaired loans carried at fair value)		4,473,133		-			-			4,521,373			4,521,373
Accrued interest receivable		12,547		-			28			12,519			12,547
FHLBNY capital stock		54,348		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		2,141,790		2,141,790			-			-			2,141,790
Certificates of Deposit ("CDs")		887,707		-			895,391			-			895,391
Escrow and other deposits		131,132		131,132			-			-			131,132
FHLBNY Advances		1,069,725		-			1,079,707			-			1,079,707
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,389		-			2,389			-			2,389

25

			Fair Value at December 31, 2014 Using
At December 31, 2014	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	78,187	$	78,187		$	-		$	-		$	78,187
Federal funds sold and other short-term investments		250		250			-			-			250
Investment securities held to maturity (TRUPS)		5,367		-			-			6,315			6,315
Loans, net (excluding impaired loans carried at fair value)		4,096,347		-			-			4,188,137			4,188,137
Accrued interest receivable		12,664		2			104			12,558			12,664
FHLBNY capital stock		58,407		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		1,733,474		1,733,474			-			-			1,733,474
CDs		926,318		-			934,324			-			934,324
Escrow and other deposits		91,921		91,921			-			-			91,921
FHLBNY Advances		1,173,725		-			1,186,069			-			1,186,069
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,729		-			2,729			-			2,729

Cash and Due From Banks – The fair value is assumed to be equal to their carrying value as these amounts are due upon demand (deemed a Level 1 valuation).

Federal Funds Sold and Other Short Term Investments – As a result of their short duration to maturity, the fair value of these assets, principally overnight deposits, is assumed to be equal to their carrying value due (deemed a Level 1 valuation).

TRUPS Held to Maturity – At both September 30, 2015 and December 31, 2014, the Company owned seven TRUPS classified as held-to-maturity.

At December 31, 2014, their estimated fair value was obtained utilizing the following weighted valuation sources: 1) broker quotations (10% valuation weighting), which were deemed to meet the criteria of "distressed sale" pricing under the guidance of ASC 820-10-65-4 (deemed to be a Level 3 valuation for which the Company is not provided detailed information regarding the significant unobservable inputs utilized by the third parties); 2) an internally created cash flow valuation model (45% valuation weighting) that considered the creditworthiness of each individual issuer underlying the collateral pools, and utilized default, cash flow and discount rate assumptions determined by the Company's management (the "Internal Cash Flow Valuation") (deemed to be a Level 3 valuation); and 3) the average of a minimum of two of three available independent cash flow valuation models (45% valuation weighting) (deemed to be a Level 3 valuation for which the Company is not provided detailed information regarding the significant unobservable inputs utilized by the third parties).

The major assumptions utilized as of December 31, 2014 in the Internal Cash Flow Valuation (each of which represents a significant unobservable input as defined by ASC 820-10) were disclosed in Note 17 to the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 16, 2015.

As discussed above, in addition to the Internal Cash Flow Valuation and broker quotations, at December 31, 2014 the Company utilized two additional independent cash flow valuation models in order to estimate the fair value of TRUPS.  The two independent cash flow valuation models utilized a methodology similar to the Internal Cash Flow Valuation, differing only in the underlying assumptions utilized to derive estimated cash flows, individual bank defaults and discount rate.

As a result of improved marketplace stability and enhanced trading activity, broker quotations became the sole valuation source utilized to estimate the fair value of TRUPS as of September 30, 2015. The broker quotations at September 30, 2015 were deemed to be a Level 2 valuation.

Loans, Net (Excluding Impaired Loans Carried at Fair Value) – For adjustable rate loans repricing monthly or quarterly, and with no significant change in credit risk, fair values are based on carrying values.  The fair value of all remaining loans receivable is determined by discounting anticipated future cash flows of the loans, net of anticipated prepayments, using a discount rate reflecting current market rates for loans with similar terms to borrowers of similar credit quality.  The valuation method used for loans does not necessarily represent an exit price valuation methodology as defined under ASC 820.  However, since the valuation methodology is deemed to be comparable to a Level 3 input, the fair value of loans receivable other than impaired loans measured at fair value is shown under the Level 3 valuation column.

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Accrued Interest Receivable – The estimated fair value of accrued interest receivable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial asset.

FHLBNY Capital Stock – It is not practicable to determine the fair value of FHLBNY capital stock due to restrictions placed on transferability.

Deposits – The fair value of savings, money market, and checking accounts is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.  The fair value of CDs is based upon the present value of contractual cash flows using current interest rates for instruments of the same remaining maturity (deemed a Level 2 valuation).

Escrow and Other Deposits – The fair value of escrow and other deposits is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.

FHLBNY Advances – Thefair value of FHLBNY advances is measured by the discounted anticipated cash flows through contractual maturity or next interest repricing date, or an earlier call date if, as of the valuation date, the borrowing is expected to be called (deemed a Level 2 valuation).  The carrying amount of accrued interest payable on FHLBNY advances is its fair value and is deemed a Level 2 valuation.

Trust Preferred Securities Payable – The fair value of trust preferred securities payable is estimated using discounted cash flow analyses based on then current borrowing rates for similar types of borrowing arrangements (deemed a Level 2 valuation), and is provided to the Company quarterly independently by a market maker in the underlying security.

Accrued Interest Payable – The estimated fair value of accrued interest payable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial liability.

12.   RETIREMENT AND POSTRETIREMENT PLANS

The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh (the "Postretirement Plan").  Net expenses associated with these plans were comprised of the following components:

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	10
Interest cost		344			18			338			58
Expected return on assets		(414	)		-			(444	)		-
Amortization of unrealized loss		480			(2	)		261			-
Net periodic cost	$	410		$	16		$	155		$	68

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	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	9		$	-		$	30
Interest cost		749			556			1,014			174
Expected return on assets		(1,242	)		-			(1,332	)		-
Curtailment gain(1)		-			(3,394	)		-			-
Amortization of unrealized loss		1,257			(27	)		783			-
Net periodic cost (gain)	$	764		$	(2,856	)	$	465		$	204

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

The Company disclosed in its consolidated financial statements for the year ended December 31, 2014 that it expected to make contributions to, or benefit payments on behalf of, benefit plans during 2015 as follows: Employee Retirement Plan - $14, BMP - $604, Outside Director Retirement Plan - $188, and Postretirement Plan - $145.  The Company made contributions of $7 to the Employee Retirement Plan during the three months ended September 30, 2015, and $12 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated contributions during 2015.  The Company made benefit payments of $41 on behalf of the Outside Director Retirement Plan during the three months ended September 30, 2015, and $130 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated net contributions or benefit payments during 2015.  The Company made benefit payments totaling $25 on behalf of the Postretirement Plan during the three months ended September 30, 2015, and $56 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated $145 of contributions or benefit payments during 2015. Since all benefit payments expected to be made to the Postretirement Plan for the year ending December 31, 2015 related to previously earned benefits, the curtailment of future Postretirement Plan benefits enacted during the nine months ended September 30, 2015 had no impact upon the expected benefit payments to be made in 2015. The Company did not make any defined benefit contributions to, or benefit payments on behalf of, the BMP during the three-month or nine-month periods ended September 30, 2015, and does not currently expect to make benefit payments on behalf of the BMP during 2015, since anticipated retirements that formed the basis for these expected benefit payments in 2015 are presently not expected to occur.

13.   INCOME TAXES

During the three months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 41.3% and 39.8%, respectively. During the nine months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 40.8% and 41.1%, respectively. A combination of additional tax strategies and recent tax law changes lowered the effective tax rate during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. There were no significant unusual income tax items recognized during the three-month or nine-month periods ended either September 30, 2015 or 2014.

14.   MORTGAGE BANKING INCOME

Net mortgage banking income presented in the condensed consolidated statements of income was comprised of the following items:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Gain on the sale of loans	$	-	$	-	$	-	$	27
Credit to the liability for First Loss Position		-		-		-		1,040
Mortgage banking fees recognized		41		71		154		86
Net mortgage banking income	$	41	$	71	$	154	$	1,153

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15.   PREMISES HELD FOR SALE

During the nine months ended September 30, 2015, the Bank re-classified certain real estate utilized as the corporate headquarters and primary back office operations center of the Company and the Bank to premises held for sale. The aggregate recorded balance of the premises held for sale was $8,799 at September 30, 2015, the outstanding balance upon transfer.

A Purchase and Sale Agreement has been executed for the properties, for an aggregate price of $80,000. The sale is expected to close in February 2016.

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

General

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank.  The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the NYC boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank's principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed use loans, MBS, obligations of the U.S. government and GSEs, and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

Executive Summary

The Holding Company's primary business is the ownership of the Bank.  The Company's consolidated results of operations are dependent primarily on net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings.  The Bank additionally generates non-interest income such as service charges and other fees, mortgage banking related income, and income associated with BOLI.  Non-interest expense primarily consists of employee compensation and benefits, federal deposit insurance premiums, data processing costs, occupancy and equipment, marketing and other operating expenses.  The Company's consolidated results of operations are also significantly affected by general economic and competitive conditions (particularly fluctuations in market interest rates), government policies, changes in accounting standards and actions of regulatory agencies.

The Bank's primary strategy is generally to seek to increase its product and service utilization for each individual depositor, and increase its household and deposit market shares in the communities that it serves.  In recent years, particular emphasis has been placed upon growing individual and small business commercial checking account balances. In addition, the Bank's primary strategy includes the origination of, and investment in, mortgage loans, with an emphasis on NYC multifamily residential and mixed-use real estate loans.  The Company believes that multifamily residential and mixed-use loans in and around NYC provide several advantages as investment assets.  Initially, they offer a higher yield than investment securities of comparable maturities or terms to repricing.  In addition, origination and processing costs for the Bank's multifamily residential and mixed use loans are lower per thousand dollars of originations than comparable one-to four-family loan costs.  Further, the Bank's market area has generally provided a stable flow of new and refinanced multifamily residential and mixed-use loan originations.  In order to address the credit risk associated with multifamily residential and mixed use lending, the Bank has developed underwriting standards that it believes are reliable in order to maintain consistent credit quality for its loans. The Bank also actively strives to obtain checking account balances affiliated with the operation of the collateral underlying its mortgage loans, as well as personal deposit accounts from its borrowers.

The Bank also strives to provide a stable source of liquidity and earnings through the occassional purchase of investment grade securities, seeks to maintain the asset quality of its loans and other investments, and uses portfolio and asset/liability management techniques in an effort to manage the effects of interest rate volatility on its profitability and capital.

Recent Regulatory Developments

Basel III Capital Rules. In July 2013, the Bank's primary federal regulator, the Federal Deposit Insurance Corporation ("FDIC"), and the Holding Company's principal regulator, the Board of Governors of the Federal Reserve System, published final rules (the "Basel III Capital Rules") that implement, in part, agreements reached by the Basel Committee on Banking Supervision ("Basel Committee") in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" ("Basel III") and imposed new capital requirements on the Bank and the Holding Company, effective January 1, 2015.

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The Basel III Capital Rules provide for the following minimum capital to risk-weighted assets ratios as of January 1, 2015: a) 4.5% based upon common equity tier 1 capital ("CET1"); b) 6.0% based upon tier 1 capital; and c) 8.0% based upon total regulatory capital.  A minimum leverage ratio (tier 1 capital as a percentage of total average assets) of 4.0% is also required under the Basel III Capital Rules.  When fully phased in, the Basel III Capital Rules will additionally require institutions to retain a capital conservation buffer, composed of CET1, of 2.5% above these required minimum capital ratio levels.  Banking organizations that fail to maintain the minimum 2.5% capital conservation buffer could face restrictions on capital distributions or discretionary bonus payments to executive officers.  Restrictions would begin phasing in where the banking organization's capital conservation buffer was below 2.5% at the beginning of a quarter, and distributions and discretionary bonus payments would be completely prohibited if no capital conservation buffer exists.  When the capital conservation buffer is fully phased in on January 1, 2019, the Holding Company and the Bank will effectively have the following minimum capital to risk-weighted assets ratios: a) 7.0% based upon CET1; b) 8.5% based upon tier 1 capital; and c) 10.5% based upon total regulatory capital.

The Basel III Capital Rules provide for a number of deductions from, and adjustments to, CET1.  These include, for example, the requirement that MSR, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1.

Implementation of the deductions from, and other adjustments to, CET1 began on January 1, 2015 and will be phased-in over a 4-year period (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). The implementation of the capital conservation buffer will begin on January 1, 2016 at 0.625% and increase by 0.625% each subsequent January 1, until it reaches 2.5% on January 1, 2019.

The Basel III Capital Rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes.  In particular, the Basel III Capital Rules provide stricter rules related to the risk weighting of past due and certain commercial real estate loans, as well as on some equity investment exposures, and replace the existing credit rating approach for determining the risk weighting of securitization exposures with an alternative approach in which senior securitization tranches are assigned a risk weight associated with the underlying exposure and requiring a banking organization to hold capital for the senior tranche based on the risk weight of the underlying exposures.  Under the revised approach, for subordinate securitization tranches, a banking organization must hold capital for the subordinate tranche, as well as all more senior tranches for which the subordinate tranche provides credit support.

With respect to the Bank, the Basel III Capital Rules revise the "prompt corrective action" ("PCA") regulations adopted pursuant to Section 38 of the Federal Deposit Insurance Act by: (i) introducing a CET1 ratio requirement at each PCA category (other than critically undercapitalized), with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category, with the minimum tier 1 capital ratio for well-capitalized status being 8.0% (as compared to the current 6.0%); and (iii) eliminating the current provision that a bank with a composite supervisory rating of 1 may have a 3.0% leverage ratio and still be adequately capitalized. The Basel III Capital Rules do not change the total risk-based capital requirement for any PCA category.

The Basel III Capital Rules will increase the required capital levels of the Bank and will subject the Holding Company to consolidated capital rules. The Bank and Company made the one-time, permanent election to continue to exclude the effects of accumulated other comprehensive income or loss items included in stockholders' equity for the purposes of determining the regulatory capital ratios.  The following table summarizes the capital ratios calculated under the Basel III Capital Rules framework as of September 30, 2015.

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	Bank	Consolidated Company	Basel III Minimum Requirement	Basel III Minimum Requirement Plus 2.5% Buffer(1)	Well Capitalized Requirement Under FDIC Prompt Corrective Action Framework(2)
Common equity Tier 1 capital to risk weighted assets	11.91%	12.11%	4.5%	7.0%	6.5%
Tier 1 Capital to risk weighted assets	11.91	14.00	6.0	8.5	8.0
Total Capital to risk weighted assets	12.43	14.53	8.0	10.5	10.0
Tier 1 Capital to average assets (Leverage ratio)	9.36	10.91	4.0	n/a	5.0

(1) The 2.5% buffer percentage represents the fully phased-in requirement as of January 1, 2019.

(2) Only the Bank is subject to these requirements.

Implementation of the Basel III Capital Rules effective January 1, 2015 did not have a material impact upon the operations of the Bank or Holding Company. Management believes that, as of September 30, 2015, the Bank and the Holding Company would meet all capital categories requirements under the Basel III Capital Rules on a fully phased in basis as if such requirement had been in effect on that date.

Selected Financial Highlights and Other Data

(Dollars in Thousands Except Per Share Amounts)

	At or For the Three Months Ended September 30,		At or For the Nine Months Ended September 30,
	2015	2014	2015	2014
Performance and Other Selected Ratios:
Return on Average Assets	0.86%	1.09%	0.97%	1.01%
Return on Average Stockholders' Equity	8.38	10.37	9.44	9.62
Stockholders' Equity to Total Assets	10.01	10.41	10.01	10.41
Loans to Deposits at End of Period	148.28	154.60	148.28	154.60
Loans to Earning Assets at End of Period	95.57	95.90	95.57	95. 90
Net Interest Spread	2.69	2.92	2.72	2.84
Net Interest Margin	2.84	3.09	2.90	3.04
Non-Interest Expense to Average Assets	1.37	1.36	1.35	1.44
Efficiency Ratio	47.63	43.54	46.09	46.51
Effective Tax Rate	41.30	39.83	40.79	41.08
Dividend Payout Ratio	50.00	42.42	45.65	46.67
Per Share Data:
Reported EPS (Diluted)	$0.28	$0.33	$0.92	$0.90
Cash Dividends Paid Per Share	0.14	0.14	0.42	0.42
Stated Book Value	13.01	12.38	13.01	12.38
Asset Quality Summary:
Net charge-offs (recoveries)	$10	$34	$(1,357)	$(295)
Non-performing Loans (including loans held for sale)	1,590	11,527	1,590	11,527
Non-performing Loans/Total Loans	0.04%	0.28%	0.04%	0.28%
Non-performing Assets	$2,965	$13,929	$2,965	$13,929
Non-performing Assets/Total Assets	0.06%	0.32%	0.06%	0.32%
Allowance for Loan Loss/Total Loans	0.42	0.47	0.42	0.47
Allowance for Loan Loss/Non-performing Loans	1,192.39	165.68	1,192.39	165.68
Earnings to Fixed Charges Ratios (1)
Including Interest on Deposits	2.51x	2.54x	2.58x	2.48x
Excluding Interest on Deposits	4.13	3.54	3.97	3.44

(1) Please refer to Exhibit 12.1 for further detail on the calculation of these ratios.

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Critical Accounting Policies

The Company's policies with respect to (1) the methodologies it uses to determine the allowance for loan losses (including reserves for loan commitments), and (2) accounting for defined benefit plans, are its most critical accounting policies because they are important to the presentation of the Company's consolidated financial condition and results of operations, involve a significant degree of complexity and require management to make difficult and subjective judgments which often necessitate assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions or estimates could result in material variations in the Company's consolidated results of operations or financial condition.

The following are descriptions of the Company's critical accounting policies and explanations of the methods and assumptions underlying their application.

Allowance for Loan Losses. The Bank's methods and assumptions utilized to periodically determine its allowance for loan losses are summarized in Note 9 to the Company's condensed consolidated financial statements.

Accounting for Defined Benefit Plans.  Defined benefit plans are accounted for in accordance with ASC 715, which requires an employer sponsoring a single employer defined benefit plan to recognize the funded status of such benefit plan in its statements of financial condition, measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation.  The Company utilizes the services of trained actuaries employed at an independent benefits plan administration entity in order to assist in measuring the funded status of its defined benefit plans.

Liquidity and Capital Resources

The Board of Directors of the Bank has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy.  The Bank's Asset Liability Committee ("ALCO") is responsible for general oversight and strategic implementation of the policy, and management of the appropriate departments are designated responsibility for implementing any strategies established by ALCO.  On a daily basis, appropriate senior management receives a current cash position report and one-week forecast to ensure that all short-term obligations are timely satisfied and that adequate liquidity exists to fund future activities.  Reports detailing the Bank's liquidity reserves and forecasted cash flows are presented to appropriate senior management on a monthly basis, and the Board of Directors at each of its meetings. In addition on a monthly basis, a twelve-month liquidity forecast is presented to ALCO in order to assess potential future liquidity concerns.  A forecast of cash flow data for the upcoming 12 months is presented to the Board of Directors on an annual basis.

The Bank's primary sources of funding for its lending and investment activities include deposits, loan and MBS payments, investment security principal and interest payments and advances from the FHLBNY.  The Bank may also sell selected multifamily residential or mixed use real estate loans to private sector secondary market purchasers, and has in the past sold such loans and one to four family residential loans to FNMA.  The Company may additionally issue debt under appropriate circumstances.  Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on mortgage loans and MBS are influenced by interest rates, economic conditions and competition.

The Bank gathers deposits in direct competition with commercial banks, savings banks and brokerage firms, many among the largest in the nation.  It must additionally compete for deposit monies against the stock and bond markets, especially during periods of strong performance in those arenas.  The Bank's deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets.  To the extent that the Bank is responsive to general market increases or declines in interest rates, its deposit flows should not be materially impacted.   However, favorable performance of the equity or bond markets could adversely impact the Bank's deposit flows.

Retail branch and Internet banking deposits increased $369.7 million during the nine months ended September 30, 2015, and $115.5 million during the nine months ended September 30, 2014.  Within deposits, core deposits (i.e., non-CDs) increased $408.3 million during the nine months ended September 30, 2015 and $96.7 million during the nine months ended September 30, 2014.  These increases were due to both successful gathering efforts tied to promotional money market offerings as well as increased commercial checking balances.  CDs declined $38.6 million during the nine months ended September 30, 2015 and increased $18.8 million during the nine months ended September 30, 2014. The reduction during the nine months ended September 30, 2015 reflected attrition of promotional CDs that matured, as the bank de-emphasized gathering and retaining CDs during the period, focusing instead on gathering and retaining money market and checking deposits. The increase in CDs during the nine months ended September 30, 2014 resulted primarily from

32

successful promotional activities related to 30-month and 5-year traditional CDs as well as Individual Retirement Account CDs.

The Bank reduced its outstanding FHLBNY advances by $104.0 million during the nine months ended September 30, 2015, reflecting both the utilization of deposit inflows to fund asset growth and other operational needs, as well as the prepayment of a $25.0 million, 4.27% fixed-rate advance due to mature in 2016. A prepayment expense of $1.4 million was recognized on the prepayment of the $25.0 million advance. The Bank increased its outstanding FHLBNY advances by $193.2 million during the nine months ended September 30, 2014, reflecting a need for additional borrowings in order to fund $221.9 million of loan repurchases during the period.

During the nine months ended September 30, 2015, principal repayments totaled $683.5 million on real estate loans (including refinanced loans) and $1.6 million on MBS, and proceeds from the sale of MBS totaled $24.3 million.  During the nine months ended September 30, 2014, principal repayments totaled $526.4 million on real estate loans (including refinanced loans) and $4.6 million on MBS. There were no sales of MBS during the nine months ended September 30, 2014. The increase in principal repayments (including refinanced loans) on real estate loans during the nine months ended September 30, 2015 reflected one large borrower relationship that re-financed all loans with the Bank, and another large borrower relationship that re-financed all outstanding loans with another financial institution (thus satisfying the loans with the Bank). The reduction in principal repayments on MBS reflected a decline of $20.3 million in their average balance from the nine months ended September 30, 2014 to the nine months ended September 30, 2015, as the great majority of the MBS portfolio was sold in March 2015.

Aggregate proceeds from the sales of investment securities and MBS available for sale totaled $26.4 million during the nine months ended September 30, 2015, reflecting the liquidation of virtually all outstanding investment securities and MBS available for sale in March 2015. The securities were sold in order to offset the cash disbursement and expense associated with the prepayment of the $25.0 million FHLBNY advance noted previously in this section. A net gain of $1.4 million was recognized on these sales. No sales of investment securities or MBS available for sale occurred during the nine months ended September 30, 2014.

In the event that the Bank should require funds beyond its ability or desire to generate them internally, an additional source of funds is available through its borrowing line at the FHLBNY.  At September 30, 2015, the Bank had an additional potential borrowing capacity of $615.6 million through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements (i.e., 4.5% of the Bank's outstanding FHLBNY borrowings).

The Bank is subject to minimum regulatory capital requirements imposed by its primary federal regulator.  As a general matter, these capital requirements are based on the amount and composition of an institution's assets. At September 30, 2015, the Bank was in compliance with all applicable regulatory capital requirements and was considered "well-capitalized" for all regulatory purposes.

The Company generally utilizes its liquidity and capital resources primarily to fund the origination of real estate loans, the purchase of mortgage-backed and other securities, the repurchase of Holding Company common stock into treasury, the payment of quarterly cash dividends to holders of the Holding Company's common stock and the payment of quarterly interest to holders of its outstanding trust preferred debt.  During the nine months ended September 30, 2015 and 2014, real estate loan originations totaled $1.06 billion and $674.3 million, respectively.  The increase from the nine months ended September 30, 2014 to the nine months ended September 30, 2015 reflected both the Company's election to compete less aggressively for new loans during the nine months ended September 30, 2014 as a result of $221.9 million of loans repurchased during the period, and a more aggressive loan growth target established for the year ending December 31, 2015 versus the year ended December 31, 2014. Security purchases were de-emphasized during the nine months ended both September 30, 2015 and 2014, as the yield offered on highly graded investment securities was not deemed sufficiently attractive.

The Holding Company repurchased 20,000 shares of its common stock during the nine months ended September 30, 2015 at an aggregate cost of $300,000. No treasury share repurchases occurred during the nine months ended September 30, 2014. As of September 30, 2015, up to 1,104,549 shares remained available for purchase under authorized share purchase programs.  Based upon the $16.90 per share closing price of its common stock as of September 30, 2015, the Holding Company would utilize $18.7 million in order to purchase all of the remaining authorized shares.

The Holding Company paid $15.2 million in cash dividends on its common stock during the nine months ended September 30, 2015, up from $15.1 million during the nine months ended September 30, 2014, reflecting an increase of 330,318 in outstanding shares from October 1, 2014 to September 30, 2015.

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Contractual Obligations

The Bank is obligated for rental payments under leases on certain of its branches and equipment.  In addition, the Bank generally has outstanding at any time significant borrowings in the form of FHLBNY advances, as well as customer CDs with fixed contractual interest rates.  The Holding Company also has $70.7 million of callable trust preferred borrowings from third parties due to mature in April 2034, which became callable at any time commencing in April 2009.  The Holding Company does not currently intend to call this debt.  The facts and circumstances surrounding these obligations have not changed materially since December 31, 2014.

Off-Balance Sheet Arrangements

As part of its loan origination business, the Bank generally has outstanding commitments to extend credit to third parties (through either available lines of credit or mortgage loan commitments), which are granted pursuant to its regular underwriting standards.  Since these commitments may expire prior to funding, in whole or in part, the contract amounts are not estimates of future cash flows.

The following table presents off-balance sheet arrangements as of September 30, 2015:

	Less than One Year	One Year to Three Years	Over Three Years to Five Years	Over Five Years	Total
	(Dollars in thousands)
Credit Commitments:
Available lines of credit	$36,585	$-	$-	$-	$36,585
Mortgage loan commitments	115,053	-	-	-	115,053
Total Off-Balance Sheet Arrangements	$151,638	$-	$-	$-	$151,638

Asset Quality

General

At both September 30, 2015 and December 31, 2014, the Company had neither whole loans nor loans underlying MBS that would have been considered subprime loans at origination, i.e., mortgage loans advanced to borrowers who did not qualify for market interest rates because of problems with their income or credit history.  See Note 10 to the condensed consolidated financial statements for a discussion of impaired investment securities and MBS.

Monitoring and Collection of Delinquent Loans

Management of the Bank reviews delinquent loans on a monthly basis and reports to its Board of Directors at each regularly scheduled Board meeting regarding the status of all non-performing and otherwise delinquent loans in the Bank's portfolio.

The Bank's loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of multifamily residential or commercial real estate loans, or fifteen days late in connection with one- to four-family or consumer loans.  A second letter is sent to the borrower if payment has not been received within 30 days of the due date.  Thereafter, periodic letters are mailed and phone calls placed to the borrower until payment is received.  When contact is made with the borrower at any time prior to foreclosure, the Bank will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.

Accrual of interest is generally discontinued on a loan that meets any of the following three criteria:  (i) full payment of principal or interest is not expected; (ii) principal or interest has been in default for a period of 90 days or more (unless the loan is both deemed to be well secured and in the process of collection); or (iii) an election has otherwise been made to maintain the loan on a cash basis due to deterioration in the financial condition of the borrower.  Such non-accrual determination practices are applied consistently to all loans regardless of their internal classification or designation.  Upon entering non-accrual status, the Bank reverses all outstanding accrued interest receivable.

The Bank generally initiates foreclosure proceedings when a loan enters non-accrual status based upon non-payment, and typically does not accept partial payments once foreclosure proceedings have commenced.  At some point during foreclosure proceedings, the Bank procures current appraisal information in order to prepare an estimate of the fair value of the underlying collateral.  If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to OREO status.  The Bank

34

generally attempts to utilize all available remedies, such as note sales in lieu of foreclosure, in an effort to resolve non-accrual loans and OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances.  In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and conditions for a period of at least six months.

Non-accrual Loans

Within the Bank's permanent portfolio, thirteen non-accrual loans (excluding deposit overdraft loans) totaled $1.6 million at September 30, 2015 and fourteen non-accrual loans (excluding deposit overdraft loans) totaled $6.2 million at December 31, 2014. During the nine months ended September 30, 2015, three non-accrual loans totaling $5.0 million were disposed of through note sales, three non-accrual loans totaling $171,000 were returned to accrual status based upon favorable payment performance, two non-accrual loans totaling $182,000 were fully satisfied according to their contractual terms, a $130,000 non-accrual loan was transferred to OREO, and principal amortization of $118,000 was recognized on six non-accrual loans. These reductions were partially offset by eight loans totaling $1.0 million that were added to non-accrual status during the period.

Impaired Loans

The recorded investment in loans deemed impaired (as defined in Note 8 to the condensed consolidated financial statements) was approximately $9.9 million, consisting of ten loans, at September 30, 2015, compared to $20.0 million, consisting of twelve loans, at December 31, 2014.  During the nine months ended September 30, 2015, two impaired loans totaling $5.6 million were fully satisfied according to their contractual terms, two impaired loans totaling $4.9 million were disposed of through note sales, and principal amortization totaling $117,000 was recognized on seven impaired loans. These reductions were partially offset by two loans totaling $547,000 that were added to impaired status during the period.

The following is a reconciliation of non-accrual and impaired loans as of the dates indicated:

	At September 30, 2015			At December 31, 2014
	(Dollars in Thousands)
Non-accrual loans (excluding non-accrual loans held for sale)	$	1,590		$	6,198
Non-accrual one- to four-family and consumer loans deemed homogeneous loans		(835	)		(1,314	)
TDRs retained on accrual status		9,112			15,100
Impaired loans	$	9,867		$	19,984

TDRs

Under ASC 310-40-15, the Bank is required to recognize loans for which certain modifications or concessions have been made as TDRs.  A TDR has been created in the event that any of the following criteria is met:

● For economic or legal reasons related to the debtor's financial difficulties, a concession has been granted that would not have otherwise been considered

● A reduction of interest rate has been made for the remaining term of the loan

● The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk

● The outstanding principal amount and/or accrued interest have been reduced

In instances in which the interest rate has been reduced, management would not deem the modification a TDR in the event that the reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the current market interest rate, and the terms of the restructured loan are comparable to the terms offered by the Bank to non-troubled debtors.  The Bank did not modify any loans in a manner that met the criteria for a TDR during the nine months ended September 30, 2015 and 2014.

Accrual status for TDRs is determined separately for each TDR in accordance with the policies for determining accrual or non-accrual status that are outlined on page 34.   At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be either on accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing); it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank's policy, as disclosed on page 34 and agency regulations.

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The Bank never accepts receivables or equity interests in satisfaction of TDRs.

At both September 30, 2015 and 2014, all TDRs were collateralized by real estate that generated rental income.  For TDRs that demonstrated conditions sufficient to warrant accrual status, the present value of the expected net cash flows of the underlying property was utilized as the primary means of determining impairment.  Any shortfall in the present value of the expected cash flows calculated at each measurement period (typically quarter-end) compared to the present value of the expected cash flows at the time of the original loan agreement was recognized as either an allocated reserve (in the event that it related to lower expected interest payments) or a charge-off (if related to lower expected principal payments).  For TDRs on non-accrual status, an appraisal of the underlying real estate collateral is deemed the most appropriate measure to utilize when evaluating impairment, and any shortfall in valuation from the recorded balance is accounted for through a charge-off.  In the event that either an allocated reserve or a charge-off is recognized on TDRs, the periodic loan loss provision is impacted.

Please refer to Note 8 to the condensed consolidated financial statements for a further discussion of TDRs.

OREO

Property acquired by the Bank, or a subsidiary, as a result of foreclosure on a mortgage loan or a deed in lieu of foreclosure is classified as OREO.  Upon entering OREO status, the Bank obtains a current appraisal on the property and reassesses the likely realizable value (a.k.a fair value) of the property quarterly thereafter.  OREO is carried at the lower of the fair value or book balance, with any write downs recognized through a provision recorded in non-interest expense.  Only the appraised value, or either contractual or formal marketed values that fall below the appraised value, is used when determining the likely realizable value of OREO at each reporting period.  The Bank typically seeks to dispose of OREO properties in a timely manner.  As a result, OREO properties have generally not warranted subsequent independent appraisals.

OREO properties totaled $148,000 at September 30, 2015 and $18,000 at December 31, 2014. The Bank did not recognize any provisions for losses on OREO properties during the three months ended September 30, 2015 and 2014.

The following table sets forth information regarding non-accrual loans and certain other non-performing assets (including OREO) at the dates indicated:

	At September 30, 2015			At December 31, 2014
	(Dollars in Thousands)
One- to four-family residential including condominium  and  cooperative apartment	$	834		$	1,310
Multifamily residential and residential mixed use real estate		547			167
Commercial real estate and commercial mixed use real estate		207			4,717
Consumer		2			4
Total non-accrual loans		1,590			6,198
Non-performing TRUPS		1,227			904
OREO		148			18
Total non-performing assets		2,965			7,120
Ratios:
Total non-accrual loans to total loans		0.04	%		0.15	%
Total non-performing assets to total assets		0.06			0.16
TDRs and Impaired Loans
TDRs	$	9,320		$	19,817
Impaired loans (1)		9,867			19,984

(1) Amount includes all TDRs at both September 30, 2015 and December 31, 2014.  See the discussion entitled "Impaired Loans" commencing on page 35 for a reconciliation of non-accrual and impaired loans.

Other Potential Problem Loans

(i)  Loans Delinquent 30 to 89 Days

The Bank had six real estate loans, totaling $2.6 million that were delinquent between 30 and 89 days at September 30, 2015, compared to six such loans totaling $1.4 million at December 31, 2014. The 30 to 89 day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

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(ii) Temporary Loan Modifications

There were no temporary modifications entered into during the three-month or nine-month periods ended September 30, 2015 or 2014. Temporary modifications previously entered into performed according to their contractual terms during the three-month and nine-month periods ended September 30, 2015 and 2014.

Reserve for Loan Commitments

At September 30, 2015 and December 31, 2014, the Bank maintained a reserve of $25,000 associated with unfunded loan commitments accepted by the borrower. This reserve is determined based upon the outstanding volume of loan commitments at each period end.  Any increases or reductions in this reserve are recognized in periodic non-interest expense.

Allowance for Loan Losses

The methodology utilized to determine the Company's allowance for loan losses on real estate and consumer loans, along with periodic associated activity, remained constant during the periods ended September 30, 2015 and December 31, 2014.  The following is a summary of the components of the allowance for loan losses as of the following dates:

	At September 30, 2015	At June 30, 2015	At December 31, 2014
	(Dollars in Thousands)
Real Estate Loans:
Impaired loans	$-	$-	$19
Substandard loans not deemed impaired	284	244	371
Special Mention loans not deemed impaired	99	108	228
Pass graded loans	18,555	18,179	17,851
Sub-total real estate loans	18,938	18,531	18,469
Consumer loans	21	22	24
TOTAL	$18,959	$18,553	$18,493

Activity related to the allowance for loan losses is summarized for the periods indicated as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015	2014	2015	2014
	(Dollars in Thousands)
Net charge-offs (recoveries )	$10	$34	$(1,357)	$(295)
Provision (Credit)	416	(501)	(891)	(1,350)

The allowance for loan losses increased $406,000 during the three months ended September 30, 2015, due primarily to an increase in reserves on pass graded loans. The increase in reserves for both the pass graded loans and loans rated substandard that were either not deemed impaired or evaluated individually for impairment, resulted from growth in their outstanding balances from June 30, 2015 to September 30, 2015.

The allowance for loan losses increased $466,000 during the nine months ended September 30, 2015, due primarily to net recoveries of $1.4 million recognized during the period, that were largely offset by a credit (negative provision) of $891,000 recorded during the same period that resulted from improvement in the credit quality of the loan portfolio during the period. The $1.4 million of net recoveries recognized during the nine months ended September 30, 2015 resulted primarily from the resolution of the largest impaired loan during the period. During the nine months ended September 30, 2015, an increase in the estimated reserves associated with pass graded loans, that resulted from growth in their outstanding balance from December 31, 2014 to September 30, 2015, was offset by reductions in the estimated reserves on both loans rated substandard that were either not deemed impaired or evaluated individually for impairment, and loans rated special mention that were not deemed impaired, with both reductions reflecting a decline in their respective outstanding balances from December 31, 2014 to September 30, 2015.

For a further discussion of the allowance for loan losses and related activity during the three-month periods ended September 30, 2015 and 2014, and as of December 31, 2014, please see Note 9 to the condensed consolidated financial statements.  Period-end balances of all Substandard, Special Mention and pass graded real estate loans are summarized in Note 8 to the condensed consolidated financial statements.

Comparison of Financial Condition at September 30, 2015 and December 31, 2014

Assets.  Assets totaled $4.8 billion at September 30, 2015, $335.4 million above their level at December 31, 2014.

37

Real estate loans increased $373.2 million during the nine months ended September 30, 2015.  During the nine months ended September 30, 2015, the Bank originated $1.06 billion of real estate loans (including refinancing of existing loans), which exceeded the $9.6 million of sales and $683.5 million of aggregate amortization on such loans (also including refinancing of existing loans).

Partially offsetting the growth in real estate loans was a reduction of $26.0 million in MBS available-for-sale, as the Company sold $24.3 million of MBS available-for-sale during the nine months ended September 30, 2015 and experienced principal amortization of $1.6 million prior to the sale. During the nine months ended September 30, 2015, the Company also elected to reduce cash and due from banks by $4.2 million to meet various liquidity needs, and its investment in FHLBNY common stock by $4.1 million as a result of a $104.0 million decline in its outstanding FHLBNY borrowings during the period (as successful deposit gathering reduced the need for FHLBNY borrowings during the period).

During the nine months ended September 30, 2015, premises totaling $8.8 million were transferred to held for sale. In October 2015, the Bank entered into an agreement to sell these premises for $80.0 million. This sale transaction is currently expected to close in February 2016.

Liabilities.  Total liabilities increased $311.2 million during the nine months ended September 30, 2015.  Retail deposits (due to depositors) increased $369.7 million and FHLBNY advances declined by $104.0 million during the period.  Please refer to "Part I – Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for a discussion of the increase in retail deposits and decline in FHLBNY advances during the nine months ended September 30, 2015. Mortgagor escrow and other deposits grew by $39.2 million during the nine months ended September 30, 2015 as a result of the growth in loans during the period.

Stockholders' Equity.  Stockholders' equity increased $24.2 million during the nine months ended September 30, 2015, due primarily to net income of $33.4 million, $4.1 million of equity added from stock option exercises, and a $2.4 million aggregate increase related to expense amortization associated with stock benefit plans that added to the cumulative balance of stockholders' equity.  Partially offsetting these items were $15.2 million in cash dividends paid during the period and an increase in accumulated other comprehensive loss of $626,000. The increased accumulated other comprehensive loss resulted from a combination of the sale of MBS that previously possessed an unrealized gain and thus lowered accumulated other comprehensive loss, as well as adjustments to defined benefit plans.

Comparison of Operating Results for the Three Months Ended September 30, 2015 and 2014

General.  Net income was $10.1 million during the three months ended September 30, 2015, a reduction of $1.7 million from net income of $11.8 million during the three months ended September 30, 2014.  During the comparative period, net interest income decreased $145,000, the provision (credit) for loan losses increased $917,000 and non-interest expense increased $1.4 million. Income tax expense declined $695,000 during the comparative period, as a result of a $2.4 million decrease in pre-tax income.

Net Interest Income.  The discussion of net interest income for the three months ended September 30, 2015 and 2014 presented below should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of income for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.  The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. The yields include fees that are considered adjustments to yields.

38

Analysis of Net Interest Income

	Three Months Ended September 30,
			2015							2014
					Average							Average
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:	(Dollars In Thousands)
Interest-earning assets:
Real estate loans	$	4,368,777	$	42,109		3.86	%	$	4,015,816	$	43,477		4.33	%
Other loans		1,548		22		5.68			2,051		26		5.07
MBS		439		1		0.91			27,011		223		3.30
Investment securities		18,602		254		5.46			15,827		68		1.72
Federal funds sold and other short-term investments		89,318		510		2.28			78,097		551		2.82
Total interest-earning assets		4,478,684	$	42,896		3.83	%		4,138,802	$	44,345		4.29	%
Non-interest earning assets		212,324							182,426
Total assets	$	4,691,008						$	4,321,228
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest bearing checking accounts	$	75,082	$	74		0.39	%	$	76,623	$	51		0.26	%
Money Market accounts		1,417,796		2,717		0.76			1,153,517		1,692		0.58
Savings accounts		370,454		45		0.05			378,527		47		0.05
CDs		891,769		3,054		1.36			852,188		3,186		1.48
Borrowed Funds		1,091,258		5,192		1.89			1,119,859		7,410		2.63
Total interest-bearing liabilities		3,846,359	$	11,082		1.14	%		3,580,714	$	12,386		1.37	%
Non-interest bearing checking accounts		233,224							175,738
Other non-interest-bearing liabilities		130,356							110,962
Total liabilities		4,209,939							3,867,414
Stockholders' equity		481,069							453,814
Total liabilities and stockholders' equity	$	4,691,008						$	4,321,228
Net interest income			$	31,814						$	31,959
Net interest spread						2.69	%						2.92	%
Net interest-earning assets	$	632,325						$	558,088
Net interest margin						2.84	%						3.09	%
Ratio of interest-earning assets to interest-bearing liabilities						116.44	%						115.59	%

Rate/Volume Analysis

	Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014 Increase/ (Decrease) Due to:
	Volume			Rate			Total
	(Dollars In thousands)
Interest-earning assets:
Real Estate Loans	$	3,586		$	(4,954	)	$	(1,368	)
Other loans		(7	)		3			(4	)
MBS		(140	)		(82	)		(222	)
Investment securities		25			161			186
Federal funds sold and other short-term investments		72			(113	)		(41	)
Total	$	3,536		$	(4,985	)	$	(1,449	)
Interest-bearing liabilities:
Interest bearing checking accounts	$	(2	)	$	25		$	23
Money market accounts		445			580			1,025
Savings accounts		(2	)		-			(2	)
CDs		137			(269	)		(132	)
Borrowed funds		(159	)		(2,059	)		(2,218	)
Total	$	419		$	(1,723	)	$	(1,304	)
Net change in net interest income	$	3,117		$	(3,262	)	$	(145	)

39

The Company's net interest income and net interest margin during the three months ended September 30, 2015 and 2014 were impacted by the following factors:

● During the period January 1, 2009 through September 30, 2015, Federal Open Market Committee monetary policies resulted in the maintenance of the overnight federal funds rate in a range of 0.0% to 0.25%, helping deposit and borrowing costs remain at historically low levels.

● Marketplace competition and refinancing activity on real estate loans, particularly during the period January 1, 2012 through September 30, 2015, has resulted in an ongoing reduction in the average yield on real estate loans.

Interest Income.  Interest income was $42.9 million during the three months ended September 30, 2015, a decrease of $1.5 million from the three months ended September 30, 2014, primarily reflecting a reduction of $1.4 million in interest income on real estate loans attributable to a decline of $1.8 million in loan prepayment income during the comparative period. Loan prepayment activities, which had exceeded traditional levels during 2014 and the first six months of 2015, subsided during the quarter ended September 30, 2015. The total reduction in interest income on real estate loans during the period was lower than the $1.8 million decline in loan prepayment income due to growth of $353.0 million in the average balance of real estate loans during the comparative period, as new originations significantly exceeded amortization and satisfactions during the period October 1, 2014 through September 30, 2015. Interest income on MBS also declined $222,000 during the comparative period, due to a reduction of $26.6 million in their average balance, as the Company liquidated virtually its entire MBS portfolio in March 2015 in order to recognize and utilize appreciation in their market valuation. Partially offsetting the lower interest income on real estate loans and MBS was an increase of $185,000 in interest income on investment securities, as additional interest income (previously owed but not paid timely by the issuing companies) was received and recorded on the TRUPS in the September 2015 quarter.

Interest Expense.  Interest expense decreased $1.3 million, to $11.1 million, during the three months ended September 30, 2015, from $12.4 million during the three months ended September 30, 2014.  The reduction resulted primarily from lower interest expense of $2.2 million on borrowed funds and $132,000 on CDs during the comparative period. The decline in interest expense on borrowings resulted from a reduction of $28.6 million in their average balance, as borrowings were de-emphasized during the first nine months of 2015, and 74 basis points in their average cost, as higher-cost borrowings that matured during the period January 1, 2015 through September 30, 2015 were not replaced. The reduction in interest expense on CDs reflected a decline of 12 basis points in their average cost, as the Bank competed less aggressively for CDs during the first nine months of 2015, instead emphasizing strategies aimed at growing money market and non-interest bearing checking deposits. Partially offsetting these declines was an increase of $1.0 million in interest expense on money market deposits, as successful promotional activities increased the average balance of money markets by $264.3 million from the three months ended September 30, 2014 to the three months ended September 30, 2015.

Provision for Loan Losses. The Company recognized a provision for loan losses of $416,000 during the three months ended September 30, 2015, compared to a credit (negative provision) for loan losses of $501,000 during the three months ended September 30, 2014.  The $416,000 provision recorded during the quarter ended September 30, 2015 reflected growth of $186.3 million in the loan portfolio during the period.  The $501,000 credit recorded during the three months ended September 30, 2014 reflected improvement in the overall credit quality of the loan portfolio from October 1, 2013 through September 30, 2014.

Non-Interest Income. Totalnon-interest income increased $82,000 from the three months ended September 30, 2014 to the three months ended September 30, 2015. During the comparative period, $238,000 of additional non-interest income was recognized on BOLI, as the Company increased its investment in BOLI commencing in October 2014. The increased BOLI income was partially offset by an aggregate reduction of $101,000 in fees related to loan commitment extensions and modifications, a $30,000 reduction in servicing fees on loans sold to third parties, (as the balance of these loans declined as loan payments were received and additional loans were not actively sold to third parties), and $95,000 of lower non-interest income reflecting a less favorable valuation of mutual fund investments designated as trading.

Non-Interest Expense.  Non-interest expense was $16.1 million during the three months ended September 30, 2015, an increase of $1.4 million from $14.7 million during the three months ended September 30, 2014, primarily reflecting higher salaries and employee benefits and additional marketing expense tied to both brand recognition and deposit gathering initiatives. Data processing costs also increased during the comparative period, reflecting higher loan and deposit processing costs, as well as several technological upgrades.

Non-interest expense was 1.37% of average assets during the three months ended September 30, 2015, relatively unchanged from 1.36% during the three months ended September 30, 2014.

Income Tax Expense.   Income tax expense approximated $7.1 million during the three months ended September 30, 2015, down from $7.8 million during the three months ended September 30, 2014, due to a reduction of $2.4 million in

40

pre-tax income during the comparative period.  The Company's consolidated tax rate was 41.3% during the three months ended September 30, 2015, up from 39.8% during the three months ended September 30, 2014. Additional income tax expense related to the finalization and filing of prior year tax returns increased the effective tax rate during the three months ended September 30, 2015.

Comparison of Operating Results for the Nine Months Ended September 30, 2015 and 2014

General.  Net income was $33.4 million during the nine months ended September 30, 2015, an increase of $1.1 million from net income of $32.3 million during the nine months ended September 30, 2014.  During the comparative period, net interest income increased $2.2 million, the provision (credit) for loan losses increased by $459,000 (as a $459,000 lower credit were recognized), non-interest income increased $435,000 and non-interest expense increased $509,000. Income tax expense increased $508,000 during the comparative period, as a result of $1.6 million of additional pre-tax income.

Net Interest Income.  The discussion of net interest income for the nine months ended September 30, 2015 and 2014 presented below should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of income for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.  The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. The yields include fees that are considered adjustments to yields.

Analysis of Net Interest Income

	Nine Months Ended September 30,
			2015							2014
					Average							Average
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:	(Dollars In Thousands)
Interest-earning assets:
Real estate loans	$	4,251,958	$	127,370		3.99	%	$	3,926,147	$	126,312		4.29	%
Other loans		1,581		70		5.90			1,968		80		5.42
MBS		8,006		184		3.06			28,324		707		3.33
Investment securities		18,502		544		3.92			20,336		274		1.80
Federal funds sold and other short-term investments		91,975		1,738		2.52			95,219		1,609		2.25
Total interest-earning assets		4,372,022	$	129,906		3.96	%		4,071,994	$	128,982		4.22	%
Non-interest earning assets		216,879							186,518
Total assets	$	4,588,901						$	4,258,512
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest bearing checking accounts	$	75,969	$	188		0.33	%	$	80,359	$	170		0.28	%
Money Market accounts		1,311,101		7,073		0.72			1,106,789		4,556		0.55
Savings accounts		372,064		137		0.05			378,684		140		0.05
CDs		912,164		9,382		1.38			856,017		9,724		1.52
Borrowed Funds		1,088,120		18,148		2.23			1,089,462		21,584		2.65
Total interest-bearing liabilities		3,759,418	$	34,928		1.24	%		3,511,311	$	36,174		1.38	%
Non-interest bearing checking accounts		212,239							174,981
Other non-interest-bearing liabilities		145,455							125,258
Total liabilities		4,117,112							3,811,550
Stockholders' equity		471,789							446,962
Total liabilities and stockholders' equity	$	4,588,901						$	4,258,512
Net interest income			$	94,978						$	92,808
Net interest spread						2.72	%						2.84	%
Net interest-earning assets	$	612,604						$	560,683
Net interest margin						2.90	%						3.04	%
Ratio of interest-earning assets to interest-bearing liabilities						116.30	%						115.97	%

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Rate/Volume Analysis

	Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014 Increase/ (Decrease) Due to:
	Volume			Rate			Total
	(Dollars In thousands)
Interest-earning assets:
Real Estate Loans	$	10,188		$	(9,130	)	$	1,058
Other loans		(17	)		7			(10	)
MBS		(486	)		(37	)		(523	)
Investment securities		(39	)		309			270
Federal funds sold and other short-term investments		(60	)		189			129
Total	$	9,586		$	(8,662	)	$	924
Interest-bearing liabilities:
Interest bearing checking accounts	$	(11	)	$	29		$	18
Money market accounts		976			1,541			2,517
Savings accounts		(3	)		-			(3	)
CDs		596			(938	)		(342	)
Borrowed funds		(21	)		(3,415	)		(3,436	)
Total	$	1,537		$	(2,783	)	$	(1,246	)
Net change in net interest income	$	8,049		$	(5,879	)	$	2,170

The Company's net interest income and net interest margin during the nine months ended September 30, 2015 and 2014 were impacted by the following factors:

· During the period January 1, 2009 through September 30, 2015, Federal Open Market Committee monetary policies resulted in the maintenance of the overnight federal funds rate in a range of 0.0% to 0.25%, helping deposit and borrowing costs remain at historically low levels.

· Marketplace competition and refinancing activity on real estate loans, particularly during the period January 1, 2012 through September 30, 2015, has resulted in an ongoing reduction in the average yield on real estate loans.

Interest Income.  Interest income was $129.9 million during the nine months ended September 30, 2015, an increase of $924,000, from the nine months ended September 30, 2014, primarily reflecting increases in interest income of $1.1 million on real estate loans, $270,000 on investment securities and $130,000 on federal funds sold and other short term investments. The increased interest income on real estate loans reflected growth of $325.8 million in their average balance during the comparative period, as new originations significantly exceeded amortization and satisfactions during the period October 1, 2014 through September 30, 2015. Partially offsetting the higher interest income on real estate loans from the growth in their average balance, was a reduction of 30 basis points in their average yield, resulting from both continued low benchmark lending rates and heightened marketplace competition. Additional interest income (previously owed but not paid timely by the issuing companies) was received and recorded on the Bank's TRUPS in the September 2015 quarter, generating the majority of the $270,000 increase in interest income on investment securities during the comparative period. The increase in interest income on federal funds sold and other short-term investments resulted from a more favorable yield earned on the Company's investment in FHLBNY capital stock, reflecting higher discretionary dividends declared by the FHLBNY. Partially offsetting these increases was a reduction of $523,000 in interest income on MBS, primarily reflecting a decline of $20.3 million in their average balance during the comparative period, as the Company liquidated virtually its entire MBS portfolio in March 2015.

Interest Expense.  Interest expense decreased $1.2 million, to $34.9 million, during the nine months ended September 30, 2015, from $36.2 million during the nine months ended September 30, 2014.  Reductions of $3.4 million in interest expense on borrowed funds and $342,000 on CDs during the comparative period were offset by an increase of $2.5 million in interest expense on money market deposits. Interest expense on borrowings declined $3.4 million due to a reduction of 42 basis points in their average cost, as higher-cost borrowings that matured during the period January 1, 2015 through September 30, 2015 were not replaced. The reduction in interest expense on CDs reflected a decline of 14 basis points in their average cost, as the Bank competed less aggressively for CDs during the first nine months of 2015, instead emphasizing strategies aimed at growing money market and non-interest bearing checking deposits. The increase of $1.5 million in interest expense on money market deposits reflected successful promotional activities that increased their average balance by $204.3 million and their average cost by 17 basis points from the nine months ended September 30, 2014 to the nine months ended September 30, 2015.

42

Provision for Loan Losses. The Company recognized a credit (negative provision) for loan losses of $891,000 during the nine months ended September 30, 2015, compared to a credit (negative provision) for loan losses of $1.4 million during the nine months ended September 30, 2014. The credits recorded during the nine months ended both September 30, 2015 and 2014 reflected continued improvement in the overall credit quality of the loan portfolio from October 1, 2013 through September 30, 2015. The credit recorded during the nine months ended September 30, 2015 also reflected a $1.5 million recovery of previously charged-off amounts from the favorable resolution of the Bank's largest problem loan. The lower credit to the allowance recognized during the nine months ended September 30, 2015 resulted primarily from growth of $439.4 million in the real estate loan portfolio from October 1, 2014 to September 30, 2015.

Non-Interest Income. Totalnon-interest income increased $435,000 from the nine months ended September 30, 2014 to the nine months ended September 30, 2015, due primarily to a gain of $1.4 million recognized on the sale of MBS during the nine months ended September 30, 2015, $689,000 of increased income from BOLI, as the Company increased its investment in BOLI commencing in October 2014, and an increase of $176,000 in loan application fee income during the comparative period that reflected higher loan origination activity. Partially offsetting these increases were the following non-recurring non-interest income items recognized during the nine months ended September 30, 2014: 1) a $649,000 gain on the sale of real estate; and 2) a credit of $1.0 million recognized as additional mortgage banking income during the nine months ended September 30, 2014.  The $1.0 million credit eliminated the liability in relation to the First Loss Position on loans that were re-acquired from FNMA during the nine months ended September 30, 2014.

Non-Interest Expense.  Non-interest expense was $46.4 million during the nine months ended September 30, 2015, an increase of $509,000 from $45.8 million during the nine months ended September 30, 2014. During the nine months ended September 30, 2015, a non-recurring $3.4 million reduction was recognized in salaries and employee benefits from the curtailment of certain postretirement health benefits. Excluding the impact of the $3.4 million defined benefit curtailment, non-interest expense would have increased by $3.9 million during the comparative period as a result of higher salaries and employee benefits, increased occupancy and equipment expenses from the accelerated depreciation of some automated teller machine equipment, additional marketing expenses tied to both brand recognition and deposit gathering initiatives, and heightened data processing costs associated with both higher loan and deposit processing activities and several technological upgrades.

Excluding the non-recurring $3.4 million reduction, non-interest expense was 1.45% of average assets during the nine months ended September 30, 2015, up slightly from 1.44% during the nine months ended September 30, 2014, due to the $3.9 million of additional non-interest expense.

Income Tax Expense.  Income tax expense approximated $23.0 million during the nine months ended September 30, 2015, up from $22.5 million during the nine months ended September 30, 2014, due to an increase of $1.6 million in pre-tax income during the comparative period.  The Company's consolidated tax rate was 40.8% during the nine months ended September 30, 2015, down from 41.1% during the nine months ended September 30, 2014. A combination of additional tax strategies and tax law changes lowered the effective tax rate in 2015 compared to 2014.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market risk were presented at December 31, 2014 in Item 7A of the Holding Company's Annual Report on Form 10-K, filed with the SEC on March 16, 2015.  The following is an update of the discussion provided therein.

General.  Virtually all of the Company's market risk continues to reside at the Bank level.  The Bank's largest component of market risk remains interest rate risk.  The Company is not subject to foreign currency exchange or commodity price risk.  At September 30, 2015, the Company owned mutual fund investments totaling $8.7 million that were designated as trading.  At September 30, 2015, the Company did not conduct transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.

Assets, Deposit Liabilities and Wholesale Funds.  There was no material change in the composition of assets, deposit liabilities or wholesale funds from December 31, 2014 to September 30, 2015.  See "Part I - Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for a discussion of deposit and borrowing activity during the period.

Interest Rate Risk Exposure Analysis

Economic Value of Equity ("EVE") Analysis.  In accordance with agency regulatory guidelines, the Bank simulates the impact of interest rate volatility upon EVE using several interest rate scenarios.  EVE is the difference between the present value of the expected future cash flows of the Bank's assets and liabilities and the value of any off-balance sheet items, such as firm commitments to originate loans, or derivatives, if applicable.

43

Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates.  Increases in interest rates thus result in decreases in the fair value of interest-earning assets, which could adversely affect the Company's consolidated results of operations in the event they were to be sold, or, in the case of interest-earning assets classified as available-for-sale, reduce the Company's consolidated stockholders' equity, if retained.  The changes in the value of assets and liabilities due to fluctuations in interest rates measure the interest rate sensitivity of those assets and liabilities.

In order to measure the Bank's sensitivity to changes in interest rates, EVE is calculated under market interest rates prevailing at a given quarter-end ("Pre-Shock Scenario"), and under various other interest rate scenarios ("Rate Shock Scenarios") representing immediate, permanent, parallel shifts in the term structure of interest rates from the actual term structure observed in the Pre-Shock Scenario.  An increase in the EVE is considered favorable, while a decline is considered unfavorable.  The changes in EVE between the Pre-Shock Scenario and various Rate Shock Scenarios due to fluctuations in interest rates reflect the interest rate sensitivity of the Bank's assets, liabilities, and off-balance sheet items that are included in the EVE.  Management reports the EVE results to the Bank's Board of Directors on a quarterly basis. The report compares the Bank's estimated Pre-Shock Scenario EVE to the estimated EVEs calculated under the various Rate Shock Scenarios.

The calculated EVEs incorporate some asset and liability values derived from the Bank's valuation model, such as those for mortgage loans and time deposits, and some asset and liability values provided by reputable independent sources, such as values for the Bank's MBS and CMO portfolios, as well as all borrowings.  The Bank's valuation model makes various estimates regarding cash flows from principal repayments on loans and deposit decay rates at each level of interest rate change.  The Bank's estimates for loan repayment levels are influenced by the recent history of prepayment activity in its loan portfolio, as well as the interest rate composition of the existing portfolio, especially in relation to the existing interest rate environment.  In addition, the Bank considers the amount of fee protection inherent in the loan portfolio when estimating future repayment cash flows.  Regarding deposit decay rates, the Bank tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third party, and over various interest rate scenarios.  Such results are utilized in determining estimates of deposit decay rates in the valuation model.  The Bank also generates a series of spot discount rates that are integral to the valuation of the projected monthly cash flows of its assets and liabilities.  The Bank's valuation model employs discount rates that it considers representative of prevailing market rates of interest, with appropriate adjustments it believes are suited to the heterogeneous characteristics of the Bank's various asset and liability portfolios.  No matter the care and precision with which the estimates are derived, however, actual cash flows could differ significantly from the Bank's estimates, resulting in significantly different EVE calculations.

The analysis that follows presents, as of September 30, 2015 and December 31, 2014, the estimated EVE at both the Pre-Shock Scenario and the +200 Basis Point Rate Shock Scenario.   The analysis additionally presents the percentage change in EVE from the Pre-Shock Scenario to the +200 Basis Point Rate Shock Scenario at both September 30, 2015 and December 31, 2014.

	At September 30, 2015			At December 31, 2014
	EVE	Dollar Change	Percentage Change	EVE	Dollar Change	Percentage Change
Rate Shock Scenario	(Dollars in Thousands)
+ 200 Basis Points	$478,062	$(57,871)	-10.8%	$498,138	$(49,201)	-9.0%
Pre-Shock Scenario	535,933	-	-	547,339	-	-

The Bank's Pre-Shock Scenario EVE decreased from $547.3 million at December 31, 2014 to $535.9 million at September 30, 2015. This decrease resulted from a less favorable valuation ascribed to the Bank's real estate portfolio from both a decline in the portfolio rate from December 31, 2014 to September 30, 2015 and a reduction in the Bank's real estate portfolio during the nine months ended September 30, 2015 of loans carrying above market interest rates.

The Bank's EVE in the +200 basis point Rate Shock Scenario decreased from $498.1 million at December 31, 2014 to $478.1 million at September 30, 2015. The factors contributing to the less favorable valuation included both a decrease in the value of the Bank's real estate loans as discussed in the Pre-Shock Scenario EVE above, and a less favorable valuation on the Bank's wholesale borrowing portfolio resulting from a reduction in its duration from December 31, 2014 to September 30, 2015. Partially offsetting the decrease was a more favorable valuation on core deposits attributable primarily to growth in non-interest bearing checking accounts.

Income Simulation Analysis.  As of the end of each quarterly period, the Bank also monitors the impact of interest rate changes through a net interest income simulation model.  This model estimates the impact of interest rate changes on the Bank's net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter period than measured through the EVE analysis).  Management reports the net interest income simulation results to the Bank's Board of Directors on a quarterly basis. The following table discloses the estimated changes to the Bank's net interest

44

income over the 12-month period ending September 30, 2016 assuming instantaneous changes in interest rates for the given Rate Shock Scenarios:

Instantaneous Change in Interest rate of:	Percentage Change in Net Interest Income
+ 200 Basis Points	(15.5)%
+ 100 Basis Points	(7.8)
-100 Basis Points	6.1

Item 4.  Controls and Procedures

Management of the Company, with the participation of its Chief Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness as of September 30, 2015, of the Company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15(d)-15(e) under the Exchange Act.  Based upon this evaluation, the Chief Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2015 in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management of the Company as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There was no change in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.

PART II – OTHER INFORMATION

Item 1.Legal Proceedings

In the ordinary course of business, the Company is routinely named as a defendant in or party to various pending or threatened legal actions or proceedings.  Certain of these matters may seek substantial monetary damages.  In the opinion of management, the Company is involved in no actions or proceedings that will have a material adverse impact on its financial condition and results of operations.

Item 1A.   Risk Factors

There were no material changes from the risks disclosed in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(c) The Holding Company did not repurchase any shares of its common stock into treasury during the three months ended September 30, 2015.  No existing repurchase programs expired during the three months ended September 30, 2015, nor did the Company terminate any repurchase programs prior to expiration during the period.  As of September 30, 2015, the Holding Company had an additional 1,104,549 shares remaining eligible for repurchase under its twelfth stock repurchase program, which was publicly announced in June 2007.

Item 3.Defaults Upon Senior Securities

None.

Item 4.(Removed and Reserved)

Item 5.Other Information

None.

45

Item 6.Exhibits

Exhibit Number

3(i)	Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. (1)
3(ii)	Amended and Restated Bylaws of Dime Community Bancshares, Inc. (17)
4.1	Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. [See Exhibit 3(i) hereto]
4.2	Amended and Restated Bylaws of Dime Community Bancshares, Inc. [See Exhibit 3(ii) hereto]
4.3	Draft Stock Certificate of Dime Community Bancshares, Inc.  (2)
4.4	Second Amended and Restated Declaration of Trust, dated as of July 29, 2004, by and among Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company as Institutional Trustee, Dime Community Bancshares, Inc., as Sponsor, the Administrators of Dime Community Capital Trust I and the holders from time to time of undivided beneficial interests in the assets of Dime Community Capital Trust I (4)
4.5	Indenture, dated as of March 19, 2004, between Dime Community Bancshares, Inc. and Wilmington Trust Company, as trustee (4)
4.6	Series B Guarantee Agreement, dated as of July 29, 2004, executed and delivered by Dime Community Bancshares, Inc., as Guarantor and Wilmington Trust Company, as Guarantee Trustee, for the benefit of the holders from time to time of the Series B Capital Securities of Dime Community Capital Trust I (4)
10.1	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Vincent F. Palagiano (10)
10.2	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Michael P. Devine (10)
10.3	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Kenneth J. Mahon (10)
10.4	Employment Agreement between Dime Community Bancshares, Inc. and Vincent F. Palagiano (10)
10.5	Employment Agreement between Dime Community Bancshares, Inc. and Michael P. Devine (10)
10.6	Employment Agreement between Dime Community Bancshares, Inc. and Kenneth J. Mahon (10)
10.7	Form of Employee Retention Agreement by and among The Dime Savings Bank of Williamsburgh, Dime Community Bancorp, Inc. and certain officers (12)
10.8	The Benefit Maintenance Plan of Dime Community Bancorp, Inc. (9)
10.9	Severance Pay Plan of The Dime Savings Bank of Williamsburgh (8)
10.10	Retirement Plan for Board Members of Dime Community Bancorp, Inc. (8)
10.12	Recognition and Retention Plan for Outside Directors, Officers and Employees of Dime Community Bancorp, Inc., as amended by amendments number 1 and 2 (3)
10.13	Form of stock option agreement for Outside Directors under Dime Community Bancshares, Inc. 1996 and 2001    Stock Option Plans for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan. (3)
10.14	Form of stock option agreement for officers and employees under Dime Community Bancshares, Inc. 1996 and 2001 Stock Option Plans for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan (3)
10.20	Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees (11)
10.21	Dime Community Bancshares, Inc. 2004 Stock Incentive Plan for Outside Directors, Officers and Employees (7)
10.22	Waiver executed by Vincent F. Palagiano (6)
10.23	Waiver executed by Michael P. Devine (6)
10.24	Waiver executed by Kenneth J. Mahon (6)
10.25	Form of restricted stock award notice for officers and employees under the 2004 Stock Incentive Plan (5)
10.27	Form of restricted stock award notice for outside directors under the 2004 Stock Incentive Plan (5)
10.28	Employee Retention Agreement between The Dime Savings Bank of Williamsburgh, Dime Community Bancshares, Inc. and Daniel Harris (8)
10.30	Adoption Agreement for Pentegra Services, Inc. Volume Submitter 401(K) Profit Sharing Plan (19)
10.31	Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (8)
10.32	Amendment to the Benefit Maintenance Plan (13)
10.33	Amendments One, Two and Three to the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (14)
10.34	Dime Community Bancshares, Inc. 2013 Equity And Incentive Plan (15)
10.35	Form of restricted stock award notice for officers and employees under the 2013 Equity and Incentive Plan (16)
10.36	Form of restricted stock award notice for outside directors under the 2013 Equity and Incentive Plan (16)
10.37	The Dime Savings Bank of Williamsburgh 401(K) Savings Plan (19)
10.38	Amendment Number Four to the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (18)

46

10.39	Amendment Number One to the Dime Savings Bank of Williamsburgh 401(K) Savings Plan (19)
10.40	Retirement and Consulting Agreement between Dime Community Bancshares, Inc. and Michael P. Devine
12.1	Computation of ratio of earnings to fixed charges
31(i).1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
31(i).2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350
101**	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2015 is formatted in XBRL (Extensible Business Reporting Language) interactive data files: (i) the Consolidated Balance Sheets as of SEptember 30, 2015 and December 31, 2014, (ii) the Consolidated Statements of Income for the three-month and nine-month periods ended September 30, 2015 and 2014, (iii) the Consolidated Statements of Comprehensive Income for the three- month and nine-months periods ended September 30, 2015 and 2014, (iv) the Consolidated Statements of Changes in Stockholders' Equity for the nine months ended September 30, 2015 and 2014, (v) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014, and (vi) the Notes to Consolidated Financial Statements.

**	Furnished, not filed, herewith.
(1)	Incorporated by reference to the registrant's Transition Report on Form 10-K for the transition period ended December 31, 2002 filed on March 28, 2003.
(2)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 filed on September 28, 1998.
(3)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1997 filed on September 26, 1997, and the Current Reports on Form 8-K filed on March 22, 2004 and March 29, 2005.
(4)	Incorporated by reference to Exhibits to the registrant's Registration Statement No. 333-117743 on Form S-4 filed on July 29, 2004.
(5)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on March 22, 2005.
(6)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 filed on May 10, 2005.
(7)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed on August 8, 2008.
(8)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2008 filed on March 16, 2009.
(9)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on April 4, 2011.
(10)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed on May 10, 2011.
(11)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 filed on August 9, 2011.
(12)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed on May 9, 2012.
(13)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed on November 13, 2012.
(14)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2012 filed on March 15, 2013.
(15)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed on August 9, 2013.
(16)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed on August 5, 2014.
(17)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on October 23, 2014.
(18)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 16, 2015.
(19)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 filed on May 7, 2015.

47

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dime Community Bancshares, Inc.

Dated: November 6, 2015	By: /s/ VINCENT F. PALAGIANO
	Vincent F. Palagiano
	Chairman of the Board and Chief Executive Officer

Dated: November 6, 2015	By: /s/ Michael Pucella
	Michael Pucella
	Executive Vice President and Chief Accounting Officer (Principal Financial Officer)

48

EX-31.1

 

EXHIBIT 31(i).1

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14(a) / 15d-14(a) 

I, Vincent F. Palagiano, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the

    circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results

    of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and

    15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit

committee of the registrant's board of directors:

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:    November 6,  2015

/s/ VINCENT F. PALAGIANO                              

Vincent F. Palagiano

Chairman of the Board and Chief Executive Officer

EX-31.2

 

EXHIBIT 31(i).2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14(a) / 15d-14(a)

I, Michael Pucella certify that:

1.I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the

    circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of

    operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and

15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit

    committee of the registrant's board of directors:

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:November 6, 2015

/s/ MICAHEL PUCELLA                             

Michael Pucella

Executive Vice President and Chief  Accounting Officer (Principal Financial Officer)

EX-32.1

 

 

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q (the "Report") for the period ended September 30, 2015 of Dime Community Bancshares, Inc., (the "Company") as filed with the Securities and Exchange Commission on the date hereof, I, Vincent F. Palagiano, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 6, 2015

Date

By:/s/ VINCENT F. PALAGIANO                                

    Vincent F. Palagiano

    Chairman of the Board and Chief Executive Officer

EX-32.2

 

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q (the "Report") for the period ended September 30, 2015 of Dime Community Bancshares, Inc., (the "Company") as filed with the Securities and Exchange Commission on the date hereof, I, Michael Pucella, Chief Accounting Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 6, 2015

Date

By:/s/ MICHAEL PUCELLA                                

                    Michael Pucella

        Executive Vice President and Chief Accounting Officer (Principal Financial Officer)

EX-12.1

 

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(in thousands, except ratio of earnings to fixed charges)

The following table sets forth our consolidated ratios of earnings to fixed charges and preferred stock dividends for the periods shown. For purposes of computing the ratios, earnings represent income before taxes, extraordinary items and the cumulative effect of accounting changes, plus fixed charges. Fixed charges represent total interest expense plus an estimate of the interest within rental expense, including and excluding interest on deposits. Currently, the Company has no shares of preferred stock outstanding and have not paid any dividends on preferred stock in the periods shown. Therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is not different from the ratio of earnings to fixed charges.

	Three Months Ended				Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		June 30, 2014
Ratio of Earnings to Fixed Charges (Including Deposits)
Earnings:
Income before income taxes	$17,173		$19,553		$56,392		$                       54,755
Add:  Fixed charges, net	11,369		12,673		35,773		37,022
Income before income taxes and fixed charges, net	28,542		32,226		92,165		91,777
Fixed charges
Interest expense	$11,082		$12,386		$34,928		$36,173
One-third of rental expense	287		287		845		849
Interest on unrecognized tax benefits	0		0		0		-
Total fixed charges	$                         11,369		$                              12,673		$                          35,773		$                       37,022
Ratio of Earnings to Fixed Charges	2.51	x	2.54	x	2.58	x	2.48	x
Ratio of Earnings to Fixed Charges (Excluding Deposits)
Earnings:
Income before income taxes	$17,173		$19,553		$56,392		$                       54,755
Add:  Fixed charges, net	5,479		7,697		18,993		22,432
Income before income taxes and fixed charges, net	22,652		27,250		75,385		77,187
Fixed charges
Interest expense (excluding deposits)	5,192		7,410		18,148		21,583
One-third of rental expense	287		287		845		849
Interest on unrecognized tax benefits	-		-		-		-
Total fixed charges	$                           5,479		$                                7,697		$                          18,993		$                       22,432
Ratio of Earnings to Fixed Charges	4.13	x	3.54	x	3.97	x	3.44	x

EX-10.40

EXHIBIT 10.40

RETIREMENT AND CONSULTING AGREEMENT

THIS RETIREMENT AND CONSULTING AGREEMENT (the "Agreement") is made and entered into effective as of October 19, 2015 (the "Effective Date"), by and between DIME COMMUNITY BANCSHARES, INC., a Delaware corporation (the "Company"), and MICHAEL P. DEVINE (the "Executive").

WHEREAS, the Executive intends to retire from the Company and its affiliates, and the parties mutually desire to arrange for his retirement from the Company and its affiliates, including without limitation, The Dime Savings Bank of Williamsburgh (the "Bank"), under certain terms,

WHEREAS, the Company wishes to take advantage of, and Executive wishes to provide, the Executive's extensive knowledge of the operations of the Company and the Bank and the banking industry;

NOW, THEREFORE, in consideration of the premises, the terms and provisions set forth herein, the mutual benefits to be gained by the performance thereof and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Retirement; Employment Until Retirement Date.

A.As of December 31, 2015, the Executive shall retire from all his officer and employee positions with the Company, the Bank, and their affiliates (the "Retirement Date").  The Executive's retirement shall not affect his status as a director of the Company and the Bank.  Executive acknowledges and agrees that, following the Retirement Date, he will remain subject to all policies of general applicability to Company and Bank board members or to retired senior executives of the Company and the Bank.

B.Pending the Retirement Date, the Executive will continue in his current role as President and (i) receive his regular base salary, (ii) be eligible to participate in the Company benefits plans in which he is currently participating on the terms stated in such plans and (iii) be eligible to receive a 2015 cash-based, short-term incentive compensation award payable on such terms as are applicable to senior executives and at such times as are applicable to Company's 2015 incentive compensation program.

C.As of the date of this Agreement, except as provided herein, the Executive's employment agreements with the Company (dated as of March 31, 2011) and the Bank (dated as of December 31, 2008) (together, the "Employment Agreements") shall terminate and shall thereafter be without force or effect.

D.The execution of this Agreement and the attached Waiver and Release (Appendix A) shall not affect the Executive's rights and entitlements (including the timing, form and amount of payments) under the Company and Bank plans and programs in which he participates prior to the Retirement Date and, in each case, such rights and entitlements shall be determined

solely by reference to the terms of such plans and programs and any individual award agreement provided to the Executive thereunder.

E.The Executive acknowledges that, after his Retirement Date, he will not accrue any additional benefit with respect to awards previously made to him under the Company's cash-based long-term incentive plan(the "LTIP").   With respect to LTIP awards outstanding as of the date of this Agreement, the following shall apply to the determination of the Executive's actual benefit:  (i) with respect to the 2013 LTIP award, for the performance period ending December 31, 2015, the Executive's award will be based on "Actual Performance" (as defined in the LTIP) for the three (3) year period ending December 31, 2015, (ii) with respect to the 2014 LTIP award for the performance period ending December 31, 2016, the Executive's award will be two-thirds (2/3) of the Target Amount (as defined in the LTIP), reflecting the Executive's vested interest in the 2014 award as of his Retirement Date and (iii) with respect to the 2015 award for the performance period ending December 31, 2017, the Executive's award will be one-third (1/3) of the Target Amount (as defined in the LTIP), reflecting the Executive's vested interest in the 2015 award as of his Retirement Date.   All amounts due the Executive with respect to the LTIP under items (i)-(iii) will be paid to the Executive immediately following the determination of the 2013 LTIP award amount in the first quarter of 2016, and such payment shall be in full satisfaction of the Executive's outstanding awards under the LTIP.

2.Engagement as Consultant.  Commencing on the day following his Retirement Date, the Company agrees to retain the Executive as an independent consultant, and the Executive agrees to render consulting services to the Company, for a period of three (3) years (the "Consulting Period"), unless such consulting arrangement is terminated earlier pursuant to Section 2C hereof.

A.The Company hereby engages the Executive to provide during the Consulting Period such services of a consulting or advisory nature as the Company may reasonably request with respect to its business and matters within the Executive's area of responsibility while employed by the Company and other matters within his expertise.  The Company will provide the Executive with advance notice in writing regarding the nature and scope of specific consulting assignments.  The parties expect that the Executive will devote less than twenty (20) percent of the average amount of time performed by Executive during the last three (3) years of his employment with the Company and its affiliates to performing services for the Company hereunder each month. The Executive shall act solely in a consulting capacity hereunder and shall not have authority to act for the Company or to give instructions or orders on behalf of the Company or otherwise to make commitments for or on behalf of the Company. The Executive shall not be an employee of the Company during the Consulting Period, but shall act in the capacity of an independent contractor and the Company will provide the Executive with a Form 1099 for compensation related to the consulting services.  The Company shall not exercise control over the detail, manner or methods of the performance of the services by the Executive during the Consulting Period or have control over the location at which the Executive performs services.

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B.As full and complete compensation for any and all services which the Executive may render during the Consulting Period:

i. The Company shall pay the Executive a quarterly consulting fee at the rate of $100,000 per quarter, payable in arrears on the last business day of each quarter.

ii. The Executive's service during the Consulting Period shall be treated for all purposes as continuing service with respect to outstanding, but unvested, awards of Company restricted stock held by the Executive as of his Retirement Date and, to the extent not vested, all then outstanding restricted stock awards shall vest on the last day of the Consulting Period.

iii. Except as is expressly provided in this Agreement, the Executive shall not receive nor be entitled to participate in any Company or Bank benefits or benefit plans with respect to the work done during the Consulting Period.

iv. During the Consulting Period, the Executive shall be provided reasonable access to office space and secretarial services at the Company's headquarters, and shall be reimbursed for reasonable pre-approved expenses directly related to his consulting assignments, subject to applicable Bank policies on expense reimbursement.

v. The Executive acknowledges that he is, and shall be, solely responsible for the payment of all federal, state and local taxes that are required by applicable laws or regulations to be paid with respect to all compensation and benefits payable or provided hereunder.

C.Either the Company or the Executive may terminate the Consulting Period at any time and for any reason (or no reason) by providing the other party with thirty (30) days advance written notice of such termination, except in the case of a termination of the Consulting Period by the Company for "Cause" (as defined below), which shall be effective immediately. In addition, the Consulting Period shall terminate upon the occurrence of a "change in control" of the Company (as defined for purposes of Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations thereunder).  For purposes of this Agreement, "Cause" shall mean (i) the Executive's willful failure to perform his consulting assignments (other than any such failure resulting from incapacity due to physical or mental illness); (ii) the Executive's willful engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, materially injurious to the Company or its affiliates; (iii) the Executive's embezzlement, misappropriation, or fraud, whether or not related to the Executive's employment with the Company; (iv) the Executive's conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) (v) the Executive's willful unauthorized disclosure of Confidential Information (as defined below); or (vi) any material breach of this Agreement by the Executive (including, without limitation, the restrictive covenants set forth in Section 3). No act or failure to act on the part of the Executive shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Except for a failure, breach, or refusal which, by its nature, cannot reasonably be

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expected to be cured, the Executive shall have ten (10) business days from the delivery of written notice by the Company within which to cure any acts constituting Cause.

D.Upon termination of the Consulting Period for any reason, the Company shall pay to the Executive any earned but unpaid Consulting Fees for Services rendered prior to such termination and shall reimburse the Executive for any pre-approved business expense incurred prior to such termination and for which the Executive would be entitled to reimbursement. In addition, upon an early termination of the Consulting Period (i) by the Company without Cause or (ii) as a result of the Executive's death or disability (as defined below) or the occurrence of a change in control (as defined above),, the Executive shall be entitled to a lump sum cash payment equal to the Consulting Fees otherwise payable through the expiration of the Consulting Period but for its early termination. Any amounts payable upon termination shall be paid within ten (10) business days of the date of termination. Except as provided in the immediately preceding two sentences, upon any termination of the Consulting Period, the Company shall have no further obligation to the Executive under this Agreement.  In addition, upon early termination of the Consulting Period for any reason, the obligations of Sections 3, 4, 5, 8, 18, 19, Exhibit A and, if applicable, Exhibit B, shall survive such termination.  For purposes of this Agreement, "disability" shall have the same meaning as under Section 409A(a)(2)(C) of the Code.

3.Restrictive Covenants.

A.During the Consulting Period, the Executive will not, within twenty five (25) miles of any office or branch location in which the Company or the Bank was conducting business as of the Retirement Date, engage in "Competition" with the Company. For purposes of this Agreement, "Competition" by the Executive shall mean the Executive's:

(i) engaging in, including without limitation, consulting or start-up activities for Executive's own account or any third party, the business of banking; or

(ii) acquiring an economic ownership interest in, or otherwise directly or indirectly being employed by or acting as a consultant, or render any services to, or being a director, officer, employee, principal, agent, stockholder, manager, member, owner or partner of, employer of, or permitting his name to be used in connection with the activities of any other business or organization (a "Competing Business") which engages in, or is preparing to engage in, the business of banking or the provision of financial services; provided, however, that, notwithstanding the foregoing, (i) it shall not be a violation of this paragraph for the Executive to become the registered or beneficial owner of up to two (2%) percent of any class of the capital stock of a Competing Business registered under the Securities Exchange Act of 1934, as amended, provided that Executive does not otherwise participate in the business of such corporation and (ii) this paragraph shall not affect the Executive's service on the board of directors of any entity affiliated with or sponsored by Pentegra Retirement Services or from time to time on the board of directors (or trustees or managers or similar board) of any other entity if such service is not prohibited by any Company or Bank policies applicable to board members generally and does not otherwise constitute "Competition" by the Executive.

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B.During the Consulting Period, the Executive will not in any manner, directly or indirectly:

(i) solicit (or cause, or authorize, to be solicited), divert or otherwise attempt to obtain the business of any person or entity who or which is, or has at any time within three (3) years prior to the date of such action been, a customer, supplier, licensee or business relation of the Company or the Bank for any purpose which is competitive with the Company's or an affiliate's business;

(ii) intentionally disturb or attempt to disturb in any adverse respect any business relationship between any person or entity and the Company or any affiliate;

(iii) seek or attempt to persuade, induce or encourage any director, officer, employee, consultant, advisor or other agent of the Company or the Bank to discontinue their employment therewith or to become employed or otherwise engaged in a Competing Business; and

(iv) solicit or employ, or otherwise hire or engage as an employee, independent contractor, consultant, advisor or otherwise, any person at any time within six (6) months following the date of cessation of employment of such person or the termination of such person's other status, as the case may be, with the Company or the Bank.

C.During the Consulting Period and at all times thereafter, the Executive shall keep secret and retain in strictest confidence, any and all Confidential Information (as defined below) relating to the Company and its affiliates, and shall use such Confidential Information only in furtherance of the performance by him of his duties as a consultant or a director and not for personal benefit or the benefit of any interest adverse to the interests of the Company.   For purposes of this Agreement, "Confidential Information" shall mean any confidential or proprietary information including, without limitation, plans, specifications, models, samples, data, customer lists and customer information, computer programs and documentation, and other technical and/or business information, in whatever form, tangible or intangible, printed, electronic or magnetic, that can be communicated by whatever means available at such time, that relates to the Company's and its affiliates current business or future business contemplated during the period the Executive serves as a consultant, products, services and/or developments, or information received from others that the Company or its affiliate's treats as confidential or proprietary, and the Executive shall not disclose such Confidential Information to any person other than the Company or its employees, directors or agents, except as may be required by law or court or administrative order (in which event the Executive shall so notify the Company as promptly as practicable).  For the avoidance of doubt, Confidential Information shall also include Confidential Information made available to the Executive prior to his Retirement Date.

D.The Executive hereby acknowledges that the business of the Company is highly competitive. Executive further acknowledges that his service to the Company will be of a special and unique character, and that he will continue to be identified personally with the Company. Executive also acknowledges that service as a consultant of the Company may require that he

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have access to the Company's confidential business information, trade secrets and proprietary information. The parties therefore acknowledge that the restrictions contained in this Section 3 are a reasonable and necessary protection of the immediate interests of the Company, and any violation of these restrictions would cause substantial injury to the Company and that the Company would not have entered into this Agreement without receiving the additional consideration offered by Executive in binding himself to these restrictions.

4.Mutual Nondisparagement.  The Executive agrees that at all times he shall refrain from publicly making, and shall not cause any other person or entity to publicly make, any disparaging statements about the Company or its affiliate's or any of its or their directors, shareholders, advisors, representatives, officers, partners, agents or current or former employees. The Company agrees to cause its officers and directors (as such terms are used for purposes of Section 16 of the Securities Exchange Act of 1934) to refrain from publicly making, and shall not cause any other person to publicly make, any disparaging statements about the Executive.  Nothing in this provision shall be construed as preventing any party from testifying truthfully under oath in a deposition or other legal proceeding or filing or governmental investigation. For purposes of this Section 4, internal communications to and among current management employees, directors or legal counsel or accountants of the Company are not considered communications to third parties.

5.Confidentiality of Agreement.  The Executive and the Company recognize that the Company will file this Agreement as an exhibit to public securities filings, and may also disclose this Agreement and the exhibits hereto as may be required by law or legal proceedings. The parties mutually agree that they, and each of them, will keep the circumstances underlying the negotiation and/or drafting of this Agreement, including Exhibit A, strictly confidential, will not disclose any such information in any way other than as provided herein, and will not make any representation or other communication (orally or in writing) regarding any such information to anyone, for any reason whatsoever, without the express written consent of the other, unless the disclosure, representation or communication: (A) is to counsel or financial or other professional advisors of the Executive or the Company, as applicable, and is necessary for the rendition of professional advice to the Executive or the Company, as applicable (the restrictions stated in this Section 5 shall automatically apply to the applicable counsel, financial and/or professional advisor, and the Executive or the Company, as applicable, shall so advise such attorney, financial and/or professional advisor); (B) if by the Executive, is to a member of his immediate family (the restrictions stated in this Section 5 shall automatically apply to such immediate family member and the Executive shall so advise such immediate family member); (C) if by the Company, is to its employees who have a business need to know such information, to any insurer or, consistent with business necessity, to any other individual or entity (the restrictions stated in this Section 5 shall automatically apply to such employees, insurer or any other such individual or entity and the Company shall so advise such individuals or entities); or (D) is for the purpose of enforcing this Agreement or any other agreement between the Executive and the Company or any of its affiliates.

6.Waiver and Release. In consideration for the Executive's execution of, and compliance with, this Agreement, including but not limited to the provisions of Section 3, and the execution of the Waiver and Release attached hereto as Exhibit A, the Company has agreed

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to enter into the consulting relationship with the Executive following the Retirement Date. This consideration is provided subject to the binding execution, without revocation prior to the 8th day following execution (the "Waiver Effective Date") by the Executive of the Waiver and Release agreement.  The Company's obligation to enter into the consulting relationship shall cease in the event the Executive fails to execute the Waiver and Release, and no payment shall be made until the expiration of the seven-day revocation period following execution of the Waiver and Release agreement, provided that such payments shall accrue from the Retirement Date.If the Executive signs the Waiver and Release on a date prior to the Retirement Date, then, notwithstanding anything in this Agreement to the contrary, the following shall apply: (i) following the Retirement Date, the Executive must execute the certificate included as Exhibit B to this Agreement and return it to the Company and (ii) the revocation period referenced above will begin again on the date Employee executes the certificate.  If the Executive fails to execute the certificate within twenty one (21) days after the Retirement Date, or executes the certificate but revokes within the 7 day revocation period, the Company will have no obligation with respect the consulting relationship and the consideration to be provided therefor.

7.Indemnification.The Executive shall be entitled to the protection of the Company's By-Laws and Certificate of Incorporation and any insurance and corporate indemnification policies the Company shall elect to maintain generally for the benefit of its directors and officers against or with respect to all costs, charges and expenses incurred or sustained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party by reason of having been a director or officer of the Company or any of its affiliates. With respect to the Executive's actions during the Consulting Period, the Company shall indemnify the Executive to the same extent as it indemnifies other directors and  (other than in connection with the Executive's gross negligence or willful misconduct) and shall pay, or reimburse the Executive for, reasonable attorneys' fees and expenses incurred by the Executive in connection with his defense in any related proceedings as such fees and expenses are incurred, subject to the provision of documentation thereof (subject to the undertaking from the Executive to repay such advances if it shall be finally determined by a judicial decision that is not subject to further appeal that the Executive was not entitled to the reimbursement of such fees and expenses); provided that this sentence shall not apply with respect to any action, claim or controversy in which the Executive and the Company are adverse parties or as prohibited by applicable law, rule or regulation.

8.Nonassignability. Except for those rights that may accrue to the Executive's family or estate in the event of his death or disability, neither this Agreement nor any right or interest hereunder shall be subject, in any manner, to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, whether voluntary or involuntary, by operation of law or otherwise, and any attempt at such shall be void; provided, that any such benefit shall not in any way be subject to the debts, contract, liabilities, engagements or torts of the Executive, nor shall it be subject to attachment or legal process for or against the Executive.

9.Entire Agreement; Modification. Except as provided herein, this Agreement sets forth the entire agreement and understanding of the parties concerning the subject matter hereof, and supersedes all prior agreements, arrangements and understandings relative to that subject matter including, without limitation, the Employment Agreements. No term or provision hereof

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may be modified or extinguished, in whole or in part, except by a writing which is dated and signed by the parties to this Agreement. No representation, promise or inducement has been made to or relied upon by or on behalf of either party concerning the subject matter hereof which is not set forth in this Agreement.

10.Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.

11.Notices. All notices or communications hereunder shall be in writing, addressed as follows or to such other address as either party may designate from time to time by written notice so given:

To the Company:

Dime Community Bancshares, Inc.

209 Havemeyer Street

Brooklyn, NY 11211

Attn: Chief Executive Officer

To the Executive, at the address of record in the Company's personnel files.

All such notices shall be conclusively deemed to be received and shall be effective; (i) if sent by hand delivery, upon receipt, (ii) if sent by telecopy or facsimile transmission, upon confirmation of receipt by the sender of such transmission, or (iii) if sent by registered or certified mail, on the fifth day after the day on which such notice is mailed.

12.Source of Payments. All cash payments provided in this Agreement will be paid from the general funds of the Company. The Executive's status with respect to amounts owed under this Agreement will be that of a general unsecured creditor of the Company.

13.Income Tax Withholding. The Executive acknowledges that payments made to him by the Company or the Bank after his Retirement Date, other than in his capacity as a consultant,  may be subject to withholding of federal, state, or local taxes to the extent required by applicable law.

14.Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, in whole or part, the provision will be automatically amended to the minimum extent necessary to cure the invalidity, illegality or unenforceability and permit enforcement, and  such invalidity will not affect any otherwise valid provision, and all other valid provisions will remain in full force and effect.

15.Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and all of which together will constitute one document.

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16.Titles. The titles and headings preceding the text of the paragraphs and subparagraphs of this Agreement have been inserted solely for convenience of reference and do not constitute a part of this Agreement or affect its meaning, interpretation or effect.

17.Section 409A. It is intended that this Agreement shall comply with the provisions of Section 409A of the Code and the Treasury Regulations relating thereto, or an exemption to Section 409A of the Code. Any payments that qualify for the "short-term deferral" exception shall be paid under such exception. For purposes of Section 409A of the Code, each payment under this Agreement shall be treated as a separate payment for purposes of the exclusion for certain short-term deferral amounts. In no event may the Executive, directly or indirectly, designate the calendar year of any payment under this Agreement. Within the time period permitted by the applicable Treasury Regulations (or such later time as may be permitted under Section 409A of the Code or any Internal Revenue Service or Department of Treasury rules or other guidance issued thereunder), the Company may, in consultation with the Executive, modify this Agreement in order to cause the provisions of this Agreement to comply with the requirements of Section 409A of the Code. Notwithstanding anything to the contrary in this Agreement, all reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (A) any reimbursement is for expenses incurred during the Executive's lifetime (or during a shorter period of time specified in this Agreement); (B) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year; (C) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (D) the right to reimbursement is not subject to liquidation or exchange for another benefit.  The Company acknowledges and agrees that a "separation from service" within the meaning of Section 409A will occur upon the Executive's retirement and that such retirement will also constitute a "termination of employment" for purposes of the Benefits Maintenance Plan of Dime Community Bancshares, Inc.

18.Arbitration.  Any dispute or controversy based on, arising under or relating to this Agreement shall be settled exclusively by final and binding arbitration, conducted before a single neutral arbitrator in Brooklyn, New York in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (the "AAA") then in effect. Arbitration may be compelled, and judgment may be entered on the arbitration award in any court having jurisdiction.  Notwithstanding the foregoing, the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any violation of or continuation of any violation of the provisions of Section 3, and the Executive hereby consents that such restraining order or injunction may be granted without requiring the Company to post a bond or prove that money damages for violations of the non-competition provision would be difficult to calculate and that remedies at law would be inadequate. Only individuals who are (i) lawyers engaged full-time in the practice of law and (ii) on the AAA roster of arbitrators shall be selected as an arbitrator. Within twenty (20) days following the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. Each party shall bear its own costs and attorneys' fees in connection with an arbitration, and the costs of the arbitrator and the AAA's administrative fees shall be split evenly between the parties.

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19.Governing Law. This Agreement will be construed and enforced in accordance with the laws of the State of New York without regard to conflict of law principles.

20.Terms. For purposes of this Agreement, the term "affiliate" means any subsidiary of the Company, including the Bank, or any subsidiary of the Bank and all references to "Company" herein shall be deemed to include all affiliates.

21.Successor Obligations. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company and any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise.  Executive's obligations hereunder shall be binding upon his successors, heirs, administrators and executors.

22.Tax Indemnification.  The Company and the Executive agree that the provisions of Section 18 of the Employment Agreement with the Company relating to Excise Tax Indemnification shall continue to apply during the Consulting Period.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

DIME COMMUNITY BANCSHARES, INC.

By:    /s/ VINCENT F. PALAGIANO 

Its:     Chairman / CEO                                                                                                

/s/ MICHAEL P. DEVINE                                                                                                                

Michael P. Devine

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Exhibit A

Dated: October 19, 2015

WAIVER AND RELEASE

In exchange for the consideration (the "Benefits") offered under the Retirement and Consulting Agreement between me and Dime Community Bancshares, Inc., (the "Company") dated October 19, 2015 (the "Agreement"), which were offered to me in exchange for my agreement, among other things, to waive all of my claims against and release Dime Community Bancshares, Inc. and its predecessors, successors and assigns (collectively referred to as the "Company"), all of the affiliates (including parents and subsidiaries) of the Company (collectively referred to as the "Affiliates") and the Company's and Affiliates' directors and officers, employees, agents and the employee benefit plans and programs ("Employee Benefit Plans"), administrators and fiduciaries of Employer and each of the entities affiliated with Employer, (collectively, with the Company and Affiliates, referred to herein as the "Corporate Group") from any and all claims, demands, actions, liabilities and damages arising out of or relating in any way to my employment with or separation from the Company or the Affiliates; provided, however, that this Waiver and Release shall not apply to (1) any existing right I have to indemnification, contribution and a defense, (2) any directors and officers and general liability insurance coverage, (3) any rights I may have as a shareholder of the Company, (4) any rights under any equity plans of the Company, (5) any rights to payments under any Employee Benefit Plans, (6) rights under the Agreement  and (7) any rights which cannot be waived or released as a matter of law.

I understand that signing this Waiver and Release is an important legal act. I acknowledge that the Company has advised me in writing to consult an attorney before signing this Waiver and Release and has given me at least 21 days from the day I received a copy of this Waiver and Release to sign it.

          In exchange for the Benefits, I, among other things, (1) agree not to sue in any local, state and/or federal court regarding or relating in any way to my employment with or separation from the Company or the Affiliates and (2) knowingly and voluntarily waive all claims and release the Corporate Group from any and all claims, demands, actions, liabilities, and damages, whether known or unknown, arising out of or relating in any way to my employment with or separation from the Company or the Affiliates. This Waiver and Release includes, but is not limited to, claims and causes of action under: Title VII of the Civil Rights Act of 1964, as amended ("Title VII"); the Age Discrimination in Employment Act of 1967, as amended, including the Older Workers Benefit Protection Act of 1990 ("ADEA"); the Civil Rights Act of 1866, as amended; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990 ("ADA"); the Energy Reorganization Act, as amended, 42 U.S.C. §§ 5851; the Workers Adjustment and Retraining Notification Act of 1988; the Sarbanes-Oxley Act of 2002; the Employee Retirement Income Security Act of 1974, as amended; the Family and Medical Leave Act of 1993; the Fair Labor Standards Act; the Occupational Safety and Health Act; The New York Human Rights Law; The New York Executive Law; The New York Labor Law; The New York Civil Rights Law; The New York City Human Rights Law; The New York City Charter and Administrative Code;

A-1

claims in connection with workers' compensation or "whistle blower" statutes; and/or contract, tort, defamation, slander, wrongful termination or any other state or federal regulatory, statutory or common law. Further, I expressly represent that no promise or agreement which is not expressed in the Agreement has been made to me in executing this Waiver and Release, and that I am relying on my own judgment in executing this Waiver and Release, and that I am not relying on any statement or representation of the Company, any of the Affiliates or any other member of the Corporate Group or any of their agents. I agree that this Waiver and Release is valid, fair, adequate and reasonable, is entered into with my full knowledge and consent, was not procured through fraud, duress or mistake and has not had the effect of misleading, misinforming or failing to inform me.

          Employee understands and agrees that Employee would not receive the Benefits specified above, except for Employee's signing and non-revocation of this Waiver and Release.

Notwithstanding the foregoing, nothing contained in this Waiver and Release is intended to prohibit or restrict me in any way from (1) bringing a lawsuit against the Company to enforce the Company's obligations under the Agreement; (2) making any disclosure of information required by law; (3) providing information to, or testifying or otherwise assisting in any investigation or proceeding brought by, any federal, state or local regulatory or law enforcement agency or legislative body, any self-regulatory organization, or the Company's legal, compliance or human resources officers; (4) testifying or participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or municipal law relating to fraud or any rule or regulation of the Securities and Exchange Commission or any self-regulatory organization; or (5) filing any claims that are not permitted to be waived or released under applicable law (although my ability to recover damages or other relief is still waived and released to the extent permitted by law).

           Should any of the provisions set forth in this Waiver and Release be determined to be invalid by a court, agency or other tribunal of competent jurisdiction, it is agreed that such determination shall not affect the enforceability of other provisions of this Waiver and Release.   If the general release language is found to be illegal or unenforceable, Employee agrees to execute a binding replacement release.

          I acknowledge that this Waiver and Release and the Agreement set forth the entire understanding and agreement between me and the Company or any other member of the Corporate Group concerning the subject matter of this Waiver and Release and supersede any prior or contemporaneous oral and/or written agreements or representations, if any, between me and the Company or any other member of the Corporate Group.

          I understand that for a period of 7 calendar days following the date that I sign this Waiver and Release, I may revoke my acceptance of the offer, provided that my written statement of revocation is received on or before that seventh day by the Chief Executive Officer of the Company (or, in the event of mailing, postmarked on or before the seventh day), in which case the Waiver and Release will not become effective. In the event I revoke my acceptance of this offer, the Company shall have no obligation to provide me with the Benefits. I understand that failure to revoke my acceptance of the offer within 7 calendar

A-2

days from the date I sign this Waiver and Release will result in this Waiver and Release being permanent and irrevocable.

I acknowledge that I have read this Waiver and Release, have had an opportunity to ask questions and have it explained to me and that I understand that this Waiver and Release will have the effect of knowingly and voluntarily waiving any action I might pursue, including breach of contract, personal injury, retaliation, discrimination on the basis of race, age, sex, national origin, or disability and any other claims arising prior to the date of this Waiver and Release. By execution of this document, I do not waive or release or otherwise relinquish any legal rights I may have which are attributable to or arise out of acts, omissions, or events of the Company or any other member of the Corporate Group which occur after the date of the execution of this Waiver and Release.

MICHAEL P. DEVINE                                                                                                                     /s/ VINCENT F. PALAGIANO

Executive's Printed NameCompany Representative

/s/ MICHAEL P. DEVINE                                                                               10/19/2015                                               

Executive's SignatureExecution Date

October 19, 2015

Date

A-3

Exhibit B

Termination Certificate

I, Michael P. Devine, previously executed a Waiver and Release dated as of _______________ pursuant to my Retirement and Consulting Agreement with Dime Community Bancshares, Inc. (the "Company") dated ____________ (the "Agreement").  The terms and conditions set forth in the Waiver and Release are incorporated by reference in this Termination Certificate.

I hereby acknowledge and agree to the following:

(1)I retired as an officer of the Company and its affiliates on December 31, 2015, which was after the date I executed the Waiver and Release.

(2)A blank copy of this Termination Certificate was attached to the Agreement as Exhibit B and its purpose was described in Section 6 of the Agreement.  I was advised to discuss the Agreement, the Waiver and Release and this Termination Certificate, with an attorney before executing either document.

(3)I understand that I have twenty one (21) days to consider my decision to sign this Termination Certificate.  I understand that the Benefits (as such term is defined in the Waiver and Release) will only be provided if I sign this Termination Certificate before the 21-day period expires and do not revoke it within seven (7) days after I sign it by providing written notice of such revocation to the Chief Executive Officer of the Company.

(4)By my signature below, I acknowledge and agree that the Waiver and Release (i) is to be applied as if I signed it on the day I signed this Termination Certificate and (ii) that this Termination Certificate extends my waiver and release of claims under the Waiver and Release to any claims that arose during the period beginning on the date I signed the Waiver and Release through my last day of employment on December 31, 2015.

_________________________

Michael P. Devine

Date:____________________

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XML

LOANS RECEIVABLE AND CREDIT QUALITY, Past Due Financing Receivbles (Details) $ in Thousands	Sep. 30, 2015 USD ($) Loan		Dec. 31, 2014 USD ($) Loan
Financing Receivable, Recorded Investment, Aging [Abstract]
Number Of Loans 90 Days or More Past Due And Still Accruing Pending Refinancing | Loan	8		8
Loans 90 Days or More Past Due And Still Accruing Pending Refinancing	$ 2,503		$ 3,333
One To Four Family Residential And Cooperative Unit Allowance [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	1,642		1,550
Non-accrual	834	[1]	1,310	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	630		0
Financing Receivable, Recorded Investment, Current	67,976		71,950
Loans and Leases Receivable, Other, Net of Deferred Income	69,618		73,500
One To Four Family Residential And Cooperative Unit Allowance [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	174		240
One To Four Family Residential And Cooperative Unit Allowance [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	4		0
Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	3,165		4,276
Non-accrual	547	[1]	167	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	374		2,922
Financing Receivable, Recorded Investment, Current	3,564,208		3,294,172
Loans and Leases Receivable, Other, Net of Deferred Income	3,567,373		3,298,448
Multifamily Residential and Residential Mixed Use [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	2,244		1,187
Multifamily Residential and Residential Mixed Use [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	536		411
Non-accrual	0	[1]	0	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	406		411
Financing Receivable, Recorded Investment, Current	379,886		328,256
Loans and Leases Receivable, Other, Net of Deferred Income	380,422		328,667
Mixed Use Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	130		0
Mixed Use Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	1,300		4,717
Non-accrual	207	[1]	4,717	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	1,093		0
Financing Receivable, Recorded Investment, Current	471,911		412,079
Loans and Leases Receivable, Other, Net of Deferred Income	473,211		416,796
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Non-accrual	0	[1]	0	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0
Financing Receivable, Recorded Investment, Current	0		0
Loans and Leases Receivable, Other, Net of Deferred Income	0		0
Construction Loan Receivable [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Construction Loan Receivable [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Consumer Loan [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	4		6
Non-accrual	2	[1]	4	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0
Financing Receivable, Recorded Investment, Current	1,464		1,823
Loans and Leases Receivable, Other, Net of Deferred Income	1,468		1,829
Consumer Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	2		2
Consumer Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	0		0
Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	6,643		10,954
Non-accrual	1,588	[1]	6,194	[2]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	2,503		3,333
Financing Receivable, Recorded Investment, Current	4,483,981		4,106,457
Loans and Leases Receivable, Other, Net of Deferred Income	4,490,624		4,117,411
Total Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	2,548		1,427
Total Real Estate Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Financing Receivable, Recorded Investment, Past Due	$ 4		$ 0

[1] Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of September 30, 2015.

[2] Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014.

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS, Balance Sheet Groupings (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying (Reported) Amount, Fair Value Disclosure [Member]
ASSETS
Cash and due from banks	$ 74,073	$ 78,187
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	250
Investment securities held to maturity (TRUPS)	5,349	5,367
Loans, net (excluding impaired loans carried at fair value)	4,473,133	4,096,347
Accrued Interest Receivable	12,547	12,664
FHLBNY capital stock	54,348	58,407
Liabilities [Abstract]
Savings, money market and checking accounts	2,141,790	1,733,474
Certificates of Deposit (CDs)	887,707	926,318
Escrow and other deposits	131,132	91,921
FHLBNY advances	1,069,725	1,173,725
Trust preferred securities payable	70,680	70,680
Accrued Interest Payable	2,389	2,729
Estimate of Fair Value, Fair Value Disclosure [Member]
ASSETS
Cash and due from banks	74,073	78,187
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	250
Investment securities held to maturity (TRUPS)	7,478	6,315
Loans, net (excluding impaired loans carried at fair value)	4,521,373	4,188,137
Accrued Interest Receivable	12,547	12,664
FHLBNY capital stock	0	0
Liabilities [Abstract]
Savings, money market and checking accounts	2,141,790	1,733,474
Certificates of Deposit (CDs)	895,391	934,324
Escrow and other deposits	131,132	91,921
FHLBNY advances	1,079,707	1,186,069
Trust preferred securities payable	70,680	70,680
Accrued Interest Payable	2,389	2,729
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member]
ASSETS
Cash and due from banks	74,073	78,187
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	250
Investment securities held to maturity (TRUPS)	0	0
Loans, net (excluding impaired loans carried at fair value)	0	0
Accrued Interest Receivable	0	2
FHLBNY capital stock	0	0
Liabilities [Abstract]
Savings, money market and checking accounts	2,141,790	1,733,474
Certificates of Deposit (CDs)	0	0
Escrow and other deposits	131,132	91,921
FHLBNY advances	0	0
Trust preferred securities payable	0	0
Accrued Interest Payable	0	0
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member]
ASSETS
Cash and due from banks	0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	0
Investment securities held to maturity (TRUPS)	7,478	0
Loans, net (excluding impaired loans carried at fair value)	0	0
Accrued Interest Receivable	28	104
FHLBNY capital stock	0	0
Liabilities [Abstract]
Savings, money market and checking accounts	0	0
Certificates of Deposit (CDs)	895,391	934,324
Escrow and other deposits	0	0
FHLBNY advances	1,079,707	1,186,069
Trust preferred securities payable	70,680	70,680
Accrued Interest Payable	2,389	2,729
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member]
ASSETS
Cash and due from banks	0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	0
Investment securities held to maturity (TRUPS)	0	6,315
Loans, net (excluding impaired loans carried at fair value)	4,521,373	4,188,137
Accrued Interest Receivable	12,519	12,558
FHLBNY capital stock	0	0
Liabilities [Abstract]
Savings, money market and checking accounts	0	0
Certificates of Deposit (CDs)	0	0
Escrow and other deposits	0	0
FHLBNY advances	0	0
Trust preferred securities payable	0	0
Accrued Interest Payable	$ 0	$ 0

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS, Valuation Techniques (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Asset Valuation Approach Broker Quotation Weighting (in hundredths)	100.00%	10.00%
Fair Value Asset Valuation Approach Internal Cash Flow Valuation Model Weighting (in hundredths)	0.00%	45.00%
Fair Value Asset Valuation Approach Independent Cash Flow Valuation Model Weighting (in hundredths)	0.00%	45.00%
Outstanding Principal Balance Of Impaired Loans Measured At Fair Value		$ 4,400
Impaired Loans Measured at Fair Value Allowance balance		$ 0

XML

TREASURY STOCK (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Apr. 30, 2015	Apr. 23, 2015	Apr. 30, 2014
TREASURY STOCK [Abstract]
Treasury stock issued attributable to restricted stock award grant (in shares)					68,069		121,333
Closing price of company stock (in dollars per share)					$ 15.92	$ 16.37	$ 16.30
Issuance of Treasury Stock for BMP award						11,557	9,364
Treasury Stock, Shares, Acquired	0	0	20,000	0
Average price of treasury shares acquired	$ 0	$ 0	$ 15.00	$ 0

XML

ACCOUNTING FOR STOCK BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2015

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

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,
	2015	2014	2015	2014
Options outstanding – beginning of period	646,201	979,916	979,916	1,615,771
Options granted	-	-	-	-
Options exercised	-	-	(274,355)	(16,960)
Options that expired prior to exercise	-	-	(59,360)	(618,895)
Options outstanding – end of period	646,201	979,916	646,201	979,916
Intrinsic value of options exercised	$-	$-	$384	$6
Compensation expense recognized	-	23	31	86
Remaining unrecognized compensation expense	-	54	-	54
Intrinsic value of outstanding options at period end	1,609	468	1,609	468
Intrinsic value of vested options at period end	1,609	468	1,609	468
Weighted average exercise price of vested options – end of period	14.57	14.73	14.57	14.73

There were no grants of stock options during the three-month and nine-month periods ended September 30, 2015 and 2014.

Schedule of Nonvested Restricted Stock Units Activity

The following is a summary of activity related to the restricted stock awards granted under the 2004 Equity Plan or 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,
	2015	2014	2015	2014
Unvested allocated shares – beginning of period	224,372	295,044	289,660	318,314
Shares granted	-	-	68,069	121,333
Shares vested	-	-	(132,377)	(141,361)
Shares forfeited	(478)	-	(1,458)	(3,242)
Unvested allocated shares – end of period	223,894	295,044	223,894	295,044
Compensation recorded to expense	$434	$501	$1,418	$1,497

XML

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INCOME TAXES [Abstract]
Effective Income Tax Rate (in hundredths)	41.30%	39.80%	40.80%	41.10%

XML

INVESTMENT AND MORTGAGE-BACKED SECURITIES (Details) - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2015		Dec. 31, 2014
Investment Securities Held To Maturity [Abstract]
Recorded Amortized / Historical Cost		$ 5,349		$ 5,367
Fair value of investment securities held to maturity		7,478		6,315
Pooled Trust Preferred Held To Maturity Securities TRUPS [Member]
Investment Securities Held To Maturity [Abstract]
Purchase Amortized / Historical Cost		15,553		15,815
Recorded Amortized / Historical Cost		5,349	[1]	5,367	[2]
Unrealized Gains		2,382		1,119
Unrealized Losses		(253)		(171)
Fair value of investment securities held to maturity		7,478		6,315
Registered Mutual Funds Available For Sale [Member]
Investment Securities Available For Sale [Abstract]
Purchase Amortized / Historical Cost		3,894		3,860
Recorded Amortized/Historical Cost		3,894	[1]	3,860	[2]
Unrealized Gains		5		0
Unrealized Losses		(215)		(124)
Fair Value		3,684		3,736
Agency Notes [Member]
Investment Securities Available For Sale [Abstract]
Purchase Amortized / Historical Cost				70
Recorded Amortized/Historical Cost	[2]			70
Unrealized Gains				0
Unrealized Losses				0
Fair Value				70
Pass Through MBS Issued by GSEs [Member]
Investment Securities Available For Sale [Abstract]
Purchase Amortized / Historical Cost		431		24,154
Recorded Amortized/Historical Cost		431	[1]	24,154	[2]
Unrealized Gains		15		1,453
Unrealized Losses		0		0
Fair Value		$ 446		25,607
Private Issuer Pass Through MBS [Member]
Investment Securities Available For Sale [Abstract]
Purchase Amortized / Historical Cost				449
Recorded Amortized/Historical Cost	[2]			449
Unrealized Gains				6
Unrealized Losses				0
Fair Value				455
Private Issuer CMOs [Member]
Investment Securities Available For Sale [Abstract]
Purchase Amortized / Historical Cost				343
Recorded Amortized/Historical Cost	[2]			343
Unrealized Gains				4
Unrealized Losses				0
Fair Value				$ 347

[1] Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net of the $874 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

[2] Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net of the $932 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

XML

ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding - beginning of period (in shares)	646,201	979,916	979,916	1,615,771
Options granted (in shares)	0	0	0	0
Options exercised (in shares)	0	0	(274,355)	(16,960)
Options forfeited (in shares)	0	0	(59,360)	(618,895)
Options outstanding - end of period (in shares)	646,201	979,916	646,201	979,916
Intrinsic value of options exercised	$ 0	$ 0	$ 384	$ 6
Compensation expense recognized	0	23	31	86
Remaining unrecognized compensation expense	0	54	0	54
Intrinsic value of outstanding options at period end	1,609	468	1,609	468
Intrinsic value of vested options at period end	$ 1,609	$ 468	$ 1,609	$ 468
Weighted average exercise price of vested options - end of period	$ 14.57	$ 14.73	$ 14.57	$ 14.73
Restricted stock awards, Nonvested, Number of Shares [Roll Forward]
Compensation recorded to expense	$ 0	$ 23	$ 31	$ 86
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized	$ 434	$ 501	$ 1,418	$ 1,497
Restricted stock awards, Nonvested, Number of Shares [Roll Forward]
Unvested allocated shares - beginning of period (in shares)	224,372	295,044	289,660	318,314
Shares granted (in shares)	0	0	68,069	121,333
Shares vested (in shares)	0	0	(132,377)	(141,361)
Shares forfeited (in shares)	(478)	0	(1,458)	(3,242)
Unvested allocated shares - end of period (in shares)	223,894	295,044	223,894	295,044
Compensation recorded to expense	$ 434	$ 501	$ 1,418	$ 1,497

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PREMISES HELD FOR SALE (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
PREMISES HELD FOR SALE [Abstract]
Premises held for sale	$ 8,799	$ 0
Aggregate purchase price under purchase and sale agreement	$ 80,000

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FAIR VALUE OF FINANCIAL INSTRUMENTS, Quantitative Information (Details) - Impaired Loans [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure		$ 4,400
Market Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assets, Fair Value Disclosure
Weighted Average [Member] | Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Cap Rate		7.50%
Weighted Average [Member] | Market Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Cap Rate
Fair Value Inputs Reduction Planned Expedited Disposal
Fair Value Inputs Reduction Sales Comparison Value

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SUMMARY OF ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2015

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF ACCOUNTING POLICIES

2.   SUMMARY OF ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company's financial condition as of September 30, 2015 and December 31, 2014, the results of operations and statements of comprehensive income for the three-month and nine-month periods ended September 30, 2015 and 2014, and the changes in stockholders' equity and cash flows for the nine-month periods ended September 30, 2015 and 2014.  The results of operations for the three-month and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2015.  Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the U. S. Securities and Exchange Commission ("SEC').

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Please see "Part I - Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates.

   These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014 and notes thereto.

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INVESTMENT AND MORTGAGE-BACKED SECURITIES, Fiscal Year Maturity and Other Disclosures (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Security	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Security	Sep. 30, 2014 USD ($)
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Proceeds from Sale of Mortgage Backed Securities (MBS) categorized as Available-for-sale			$ 24,307	$ 0
Pooled Trust Preferred Held To Maturity Securities [Member]
Schedule Of Available For Sale And Held For Maturity Securities [Line Items]
Securities Weighted Average Term To Maturity (in years)			19 years 2 months 12 days
Held To Maturity Securities With OTTI Number Of Securities | Security	5		5
Pooled Trust Preferred Held To Maturity Securities [Member] | Credit Related Otti [Member]
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Cumulative balance at the beginning of the period	$ 8,769	$ 8,945	$ 8,945	8,945
Amortization of previously recognized OTTI	(26)	0	(202)	0
Cumulative balance at end of the period	8,743	8,945	8,743	8,945
Pooled Trust Preferred Held To Maturity Securities [Member] | Non Credit Related Otti [Member]
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Cumulative balance at the beginning of the period	596	585	569	601
Amortization of previously recognized OTTI	(9)	(8)	18	(24)
Cumulative balance at end of the period	587	577	587	577
Pooled Trust Preferred Held To Maturity Securities [Member] | Total Credit and Non Credit Otti [Member]
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Cumulative balance at the beginning of the period	9,365	9,530	9,514	9,546
Amortization of previously recognized OTTI	(35)	(8)	(184)	(24)
Cumulative balance at end of the period	9,330	9,522	$ 9,330	9,522
All Mortgage Backed Securities available for sale [Member]
Schedule Of Available For Sale And Held For Maturity Securities [Line Items]
Securities Weighted Average Term To Maturity (in years)			12 years 4 months 24 days
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Proceeds from Sale of Mortgage Backed Securities (MBS) categorized as Available-for-sale	0	0	$ 24,307	0
Available-for-sale Securities, Gross Realized Gains	0	0	1,395	0
Available-for-sale Securities, Gross Realized Losses	0	0	7	0
All Investment Securities Available for sale [Member]
Other Than Temporary Impairment Credit And Non Credit Losses Recognized In Earnings And OCI [Roll Forward]
Proceeds from sale of investment securities available-for-sale	0	0	2,070	0
Available-for-sale Securities, Gross Realized Gains	0	0	4	0
Available-for-sale Securities, Gross Realized Losses	$ 0	$ 0	$ 8	$ 0

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets Measured at Fair Value on a Recurring Basis at September 30, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	995	$	995	$	-	$	-
International Equity Mutual Funds		273		273		-		-
Fixed Income Mutual Funds		7,429		7,429		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,183		1,183		-		-
International Equity Mutual Funds		372		372		-		-
Fixed Income Mutual Funds		2,129		2,129		-		-
Pass-through MBS issued by GSEs		446		-		446		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2014
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,399	$	1,399	$	-	$	-
International Equity Mutual Funds		159		159		-		-
Fixed Income Mutual Funds		7,001		7,001		-		-
Investment securities available-for-sale:
Agency notes		70		-		70		-
Registered Mutual Funds:
Domestic Equity Mutual Funds		2,160		2,160		-		-
International Equity Mutual Funds		415		415		-		-
Fixed Income Mutual Funds		1,161		1,161		-		-
Pass-through MBS issued by GSEs		25,607		-		25,607		-
Private issuer pass through MBS		455		-		455		-
Private issuer CMOs		347		-		347		-

Fair Value Measurements, Nonrecurring

There were no assets measured at fair value on a non-recurring basis as of September 30, 2015. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2014:

Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2014
		Fair Value Measurements Using
Description	Total	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Impaired loans:
Commercial Mixed Use Real Estate	$4,400	$-	$-	$4,400

Fair Value Inputs, Assets, Quantitative Information

The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis at December 31, 2014:

Fair Value Derived	Valuation Technique Utilized	Significant Unobservable Input(s)	Minimum Value	Maximum Value	Weighted Average Value
$4,400	Income approach only	Capitalization rate	N/A(1)	N/A(1)	7.5%

(1)  Only one loan in this population.

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at September 30, 2015 and December 31, 2014 were as follows:

			Fair Value at September 30, 2015 Using
At September 30, 2015	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	74,073	$	74,073		$	-		$	-		$	74,073
Federal funds sold and other short-term investments		-		-			-			-			-
Investment securities held to maturity (TRUPS)		5,349		-			7,478			-			7,478
Loans, net (excluding impaired loans carried at fair value)		4,473,133		-			-			4,521,373			4,521,373
Accrued interest receivable		12,547		-			28			12,519			12,547
FHLBNY capital stock		54,348		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		2,141,790		2,141,790			-			-			2,141,790
Certificates of Deposit ("CDs")		887,707		-			895,391			-			895,391
Escrow and other deposits		131,132		131,132			-			-			131,132
FHLBNY Advances		1,069,725		-			1,079,707			-			1,079,707
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,389		-			2,389			-			2,389

			Fair Value at December 31, 2014 Using
At December 31, 2014	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	78,187	$	78,187		$	-		$	-		$	78,187
Federal funds sold and other short-term investments		250		250			-			-			250
Investment securities held to maturity (TRUPS)		5,367		-			-			6,315			6,315
Loans, net (excluding impaired loans carried at fair value)		4,096,347		-			-			4,188,137			4,188,137
Accrued interest receivable		12,664		2			104			12,558			12,664
FHLBNY capital stock		58,407		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		1,733,474		1,733,474			-			-			1,733,474
CDs		926,318		-			934,324			-			934,324
Escrow and other deposits		91,921		91,921			-			-			91,921
FHLBNY Advances		1,173,725		-			1,186,069			-			1,186,069
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,729		-			2,729			-			2,729

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INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables)

9 Months Ended

Sep. 30, 2015

INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract]

Amortized Cost And Estimated Fair Value Of Available For Sale And Held To Maturity Securities

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at September 30, 2015:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$15,553	$5,349	$2,382	$(253)	$7,478
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,894	3,894	5	(215)	3,684
MBS
Pass-through MBS issued by GSEs	431	431	15	-	446

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $874 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2014:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
TRUPS	$15,815	$5,367	$1,119	$(171)	$6,315
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,860	3,860	-	(124)	3,736
Agency notes	70	70	-	-	70
MBS
Pass-through MBS issued by GSEs	24,154	24,154	1,453	-	25,607
Private issuer pass through MBS	449	449	6	-	455
Private issuer collateralized mortgage obligations ("CMOs")	343	343	4	-	347

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $932 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended September 30, 2015			At or for the Three Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,769	$596	$9,365	$8,945	$585	$9,530
Amortization of previously recognized OTTI	(26)	(9)	(35)	-	(8)	(8)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

	At or for the Nine Months Ended September 30, 2015			At or for the Nine Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,945	$569	$9,514	$8,945	$601	$9,546
Accretion (Amortization) of previously recognized OTTI	(202)	18	(184)	-	(24)	(24)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

Available For Sale And Held To Maturity Securities Continuous Unrealized Loss Position Fair Value

The following table summarizes the gross unrealized losses and fair value of investment securities as of September 30, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,442	$253	$2,442	$253
Available-for-Sale Securities:
Registered Mutual Funds	3,476	215	-	-	3,476	215

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2014, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,562	$171	$2,562	$171
Available-for-Sale Securities:
Registered Mutual Funds	3,736	124	-	-	3,736	124

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INVESTMENT AND MORTGAGE-BACKED SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	$ 0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	2,442	2,562
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	2,442	2,562
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	0	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	253	171
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	253	171
Registered Mututal Funds Member [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,476	3,736
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	3,476	3,736
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	215	124
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	$ 215	$ 124

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RETIREMENT AND POSTRETIREMENT PLANS (Tables)

9 Months Ended

Sep. 30, 2015

RETIREMENT AND POSTRETIREMENT PLANS [Abstract]

Schedule of Net Benefit Costs

12.   RETIREMENT AND POSTRETIREMENT PLANS

The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh (the "Postretirement Plan").  Net expenses associated with these plans were comprised of the following components:

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	10
Interest cost		344			18			338			58
Expected return on assets		(414	)		-			(444	)		-
Amortization of unrealized loss		480			(2	)		261			-
Net periodic cost	$	410		$	16		$	155		$	68

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	9		$	-		$	30
Interest cost		749			556			1,014			174
Expected return on assets		(1,242	)		-			(1,332	)		-
Curtailment gain(1)		-			(3,394	)		-			-
Amortization of unrealized loss		1,257			(27	)		783			-
Net periodic cost (gain)	$	764		$	(2,856	)	$	465		$	204

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

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NET MORTGAGE BANKING INCOME (Tables)

9 Months Ended

Sep. 30, 2015

NET MORTGAGE BANKING INCOME [Abstract]

Net Mortgage Banking Income

Net mortgage banking income presented in the condensed consolidated statements of income was comprised of the following items:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Gain on the sale of loans	$	-	$	-	$	-	$	27
Credit to the liability for First Loss Position		-		-		-		1,040
Mortgage banking fees recognized		41		71		154		86
Net mortgage banking income	$	41	$	71	$	154	$	1,153

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NATURE OF OPERATIONS

9 Months Ended

Sep. 30, 2015

NATURE OF OPERATIONS [Abstract]

NATURE OF OPERATIONS

1.   NATURE OF OPERATIONS

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank.  The Holding Company's direct subsidiaries are the Bank, 842 Manhattan Avenue Corp., and Dime Community Capital Trust 1.  The Bank's direct subsidiaries are Boulevard Funding Corp., Dime Insurance Agency Inc., DSBW Preferred Funding Corporation, DSBW Residential Preferred Funding Corp., Dime Reinvestment Corp., 195 Havemeyer Corp. and DSB Holdings NY, LLC.

    The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the New York City ("NYC") boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank's principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed used loans, as well as mortgage-backed securities ("MBS"), obligations of the U.S. Government and Government Sponsored Enterprises ("GSEs"), and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

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NATURE OF OPERATIONS (Details)	Sep. 30, 2015 RetailBranch
NATURE OF OPERATIONS [Abstract]
Number of Retail Offices	25

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LOANS RECEIVABLE AND CREDIT QUALITY, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Dec. 31, 2014 USD ($) Loan
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable, Modifications, Number of Contracts | Loan			8		11
Financing Receivable, Modifications, Recorded Investment	$ 9,320		$ 9,320		$ 19,817
Financing Receivables Modification Accrual Status Number Of Contracts | Loan	7		7		9
Financing Receivable Modification Recorded Investment In Accrual Status	$ 9,113		$ 9,113		$ 15,100
Financing Receivables Modification Non Accrual Status Number Of Contracts | Loan	1		1		2
Financing Receivable Modification Recorded Investment In Non Accrual Status	$ 207		$ 207		$ 4,717
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loan			0	0
Allocated Reserves Recognized For Trouble Debt Restructuring Receivables That Defaulted	0		$ 0		19
Premium paid on loans purchased during the period				$ 13,163
Remaining Unamortized Premium on Loans Reacquired from Fannie Mae	3,944		$ 3,944		$ 7,950
One To Four Family Residential And Cooperative Unit Allowance [Member]
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable, Modifications, Number of Contracts | Loan			2		2
Financing Receivable, Modifications, Recorded Investment	599		$ 599		$ 605
Multifamily Residential and Residential Mixed Use [Member]
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable, Modifications, Number of Contracts | Loan			3		4
Financing Receivable, Modifications, Recorded Investment	705		$ 705		$ 1,105
Financing Receivable Modifications Number Of Contracts In Period | Loan		0		1
Financing Receivable Modifications Pre Modification Recorded Investment In Period		$ 0		$ 4,400
Financing Receivable Modifications Post Modification Recorded Investment In Period		$ 0		$ 4,400
Mixed Use Commercial Real Estate [Member]
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable, Modifications, Number of Contracts | Loan			1		1
Financing Receivable, Modifications, Recorded Investment	4,365		$ 4,365		$ 4,400
Commercial Real Estate [Member]
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable, Modifications, Number of Contracts | Loan			2		4
Financing Receivable, Modifications, Recorded Investment	3,651		$ 3,651		$ 13,707
Financing Receivable Modifications Number Of Contracts In Period | Loan		1		1
Financing Receivable Modifications Pre Modification Recorded Investment In Period		$ 3,500		$ 3,500
Financing Receivable Modifications Post Modification Recorded Investment In Period		$ 3,500		$ 3,500
Reduction in allocated allowance on TDRS during the period	$ 0
Number of troubled debt restructured loans for which allocated reserves were no longer deemed warranted | Loan	0		0
Total Real Estate Loans [Member]
Troubled Debt Restructuring On Receivables [Abstract]
Financing Receivable Modifications Number Of Contracts In Period | Loan		1		2
Financing Receivable Modifications Pre Modification Recorded Investment In Period		$ 3,500		$ 7,900
Financing Receivable Modifications Post Modification Recorded Investment In Period		$ 3,500		$ 7,900

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UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS:
Cash and due from banks	$ 74,073	$ 78,187
Federal funds sold and other short-term investments	0	250
Total cash and cash equivalents	74,073	78,437
Investment securities held-to-maturity (estimated fair value of $7,478 and $6,315 at September 30, 2015 and December 31, 2014, respectively)(fully unencumbered)	5,349	5,367
Investment securities available-for-sale, at fair value:
Investment securities available-for-sale, at fair value (fully unencumbered):	3,684	3,806
Mortgage-backed securities available-for-sale, at fair value:
Mortgage-backed securities available-for-sale, at fair value:	446	26,409
Trading Securities	8,697	8,559
Loans:
Real estate, net	4,490,624	4,117,411
Consumer loans	1,468	1,829
Less allowance for loan losses	(18,959)	(18,493)
Total loans, net	4,473,133	4,100,747
Loans held for sale	0	0
Premises and fixed assets, net	15,296	25,065
Premises held for sale	8,799	0
Federal Home Loan Bank of New York (FHLBNY) capital stock	54,348	58,407
Other real estate owned (OREO)	148	18
Goodwill	55,638	55,638
Bank Owned Life Insurance	84,451	82,614
Other assets	48,430	52,040
Total Assets	4,832,492	4,497,107
Due to depositors:
Interest bearing deposits	2,800,061	2,472,199
Non-interest bearing deposits	229,436	187,593
Total deposits	3,029,497	2,659,792
Escrow and other deposits	131,132	91,921
FHLBNY advances	1,069,725	1,173,725
Trust Preferred securities payable	70,680	70,680
Other liabilities	47,579	41,264
Total Liabilities	$ 4,348,613	$ 4,037,382
Commitments and Contingencies
Stockholders' Equity:
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at September 30, 2015 and December 31, 2014)	$ 0	$ 0
Common stock ($0.01 par, 125,000,000 shares authorized, 53,145,798 shares and 52,871,443 shares issued at September 30, 2015 and December 31, 2014, respectively, and 37,188,874 shares and 36,855,019 shares outstanding at September 30, 2015 and December 31, 2014, respectively)	532	529
Additional paid-in capital	259,906	254,358
Retained earnings	445,326	427,126
Accumulated other comprehensive loss, net of deferred taxes	(9,173)	(8,547)
Unallocated common stock of Employee Stock Ownership Plan (ESOP)	(2,371)	(2,545)
Unearned Restricted Stock Award common stock	(2,709)	(3,066)
Common stock held by Benefit Maintenance Plan (BMP)	(9,354)	(9,164)
Treasury stock, at cost (15,956,924 shares and 16,016,424 shares at September 30, 2015 and December 31, 2014, respectively)	(198,278)	(198,966)
Total Stockholders' Equity	483,879	459,725
Total Liabilities And Stockholders' Equity	$ 4,832,492	$ 4,497,107

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
OREO	$ 148	$ 18
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities Domestic Equity Mututal Fund Fair Value Disclosure	995	1,399
Trading Securities International Equity Mututal Fund Fair Value Disclosure	273	159
Trading Securities Fixed Income Mututal Fund Fair Value Disclosure	7,429	7,001
Available For Sale Agency Obligations Fair Value Disclosure		70
Available For Sale Securities Domestic Equity Mutual Fund Fair Value Disclosure	1,183	2,160
Available For Sale Securities International Equity Mutual Fund Fair Value Disclosure	372	415
Available For Sale Securities Fixed Income Mutual Fund Fair Value Disclosure	2,129	1,161
Pass through MBS Issued By GSEs Measured At Fair Value on Recurring Basis	446	25,607
Private issuer Pass Through Mortgage Backed Securities Measured at Fair Value on A Recurring Basis		455
Private Issuer CMOs Measured at Fair Value on a Recurrign Basis		347
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities Domestic Equity Mututal Fund Fair Value Disclosure	995	1,399
Trading Securities International Equity Mututal Fund Fair Value Disclosure	273	159
Trading Securities Fixed Income Mututal Fund Fair Value Disclosure	7,429	7,001
Available For Sale Agency Obligations Fair Value Disclosure		0
Available For Sale Securities Domestic Equity Mutual Fund Fair Value Disclosure	1,183	2,160
Available For Sale Securities International Equity Mutual Fund Fair Value Disclosure	372	415
Available For Sale Securities Fixed Income Mutual Fund Fair Value Disclosure	2,129	1,161
Pass through MBS Issued By GSEs Measured At Fair Value on Recurring Basis	0	0
Private issuer Pass Through Mortgage Backed Securities Measured at Fair Value on A Recurring Basis		0
Private Issuer CMOs Measured at Fair Value on a Recurrign Basis		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities Domestic Equity Mututal Fund Fair Value Disclosure	0	0
Trading Securities International Equity Mututal Fund Fair Value Disclosure	0	0
Trading Securities Fixed Income Mututal Fund Fair Value Disclosure	0	0
Available For Sale Agency Obligations Fair Value Disclosure		70
Available For Sale Securities Domestic Equity Mutual Fund Fair Value Disclosure	0	0
Available For Sale Securities International Equity Mutual Fund Fair Value Disclosure	0	0
Available For Sale Securities Fixed Income Mutual Fund Fair Value Disclosure	0	0
Pass through MBS Issued By GSEs Measured At Fair Value on Recurring Basis	446	25,607
Private issuer Pass Through Mortgage Backed Securities Measured at Fair Value on A Recurring Basis		455
Private Issuer CMOs Measured at Fair Value on a Recurrign Basis		347
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities Domestic Equity Mututal Fund Fair Value Disclosure	0	0
Trading Securities International Equity Mututal Fund Fair Value Disclosure	0	0
Trading Securities Fixed Income Mututal Fund Fair Value Disclosure	0	0
Available For Sale Agency Obligations Fair Value Disclosure		0
Available For Sale Securities Domestic Equity Mutual Fund Fair Value Disclosure	0	0
Available For Sale Securities International Equity Mutual Fund Fair Value Disclosure	0	0
Available For Sale Securities Fixed Income Mutual Fund Fair Value Disclosure	0	0
Pass through MBS Issued By GSEs Measured At Fair Value on Recurring Basis	$ 0	0
Private issuer Pass Through Mortgage Backed Securities Measured at Fair Value on A Recurring Basis		0
Private Issuer CMOs Measured at Fair Value on a Recurrign Basis		0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans Receivable Mixed Use Commercial Real Estate Fair Value Disclosure		4,400
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans Receivable Mixed Use Commercial Real Estate Fair Value Disclosure		0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans Receivable Mixed Use Commercial Real Estate Fair Value Disclosure		0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans Receivable Mixed Use Commercial Real Estate Fair Value Disclosure		$ 4,400

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UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, net of tax [Member]	ESOP [Member]	Unearned Restricted Stock Award Common Stock [Member]	Common Stock Held by BMP [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2013		$ 528	$ 252,253	$ 402,986	$ (4,759)	$ (2,776)	$ (3,193)	$ (9,013)	$ (200,520)
Stock options exercised		1	278
Tax benefit of stock plans			71
BMP award distribution								1
Amortization of excess fair value over cost - ESOP stock and stock options expense			847
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares			654				(1,930)	(152)	1,598
Release of stock for benefit plan awards	$ (171)
Net income	32,259			32,259
Cash dividends declared and paid				(15,075)
Reduction in non credit component of OTTI charge, net of taxes	11
Other comprehensive income recognized during the period, net of tax	(475)				475
Amortization of earned portion of ESOP stock						173
Amortization of earned portion of restricted stock awards							1,497
Treasury shares repurchased	0
Balance at Sep. 30, 2014	456,203	529	254,103	420,170	(4,284)	(2,603)	(3,626)	(9,164)	(198,922)
Balance at Dec. 31, 2014	459,725	529	254,358	427,126	(8,547)	(2,545)	(3,066)	(9,164)	(198,966)
Stock options exercised		3	4,053
Tax benefit of stock plans			204
BMP award distribution								0
Amortization of excess fair value over cost - ESOP stock and stock options expense			815
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares			476				(1,061)	(190)	988
Release of stock for benefit plan awards	(213)
Net income	33,388			33,388
Cash dividends declared and paid				(15,188)
Reduction in non credit component of OTTI charge, net of taxes	(10)
Other comprehensive income recognized during the period, net of tax	626				(626)
Amortization of earned portion of ESOP stock						174
Amortization of earned portion of restricted stock awards							1,418
Treasury shares repurchased	(300)								(300)
Balance at Sep. 30, 2015	$ 483,879	$ 532	$ 259,906	$ 445,326	$ (9,173)	$ (2,371)	$ (2,709)	$ (9,354)	$ (198,278)

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OTHER COMPREHENSIVE INCOME (LOSS), Accumulated Other Comprehensive Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			$ (8,547)	$ (4,759)
Other comprehensive income before reclassifications			(642)	43
Amounts reclassified from accumulated other comprehensive loss			16	432
Net other comprehensive income during during the period	$ 176	$ 125	(626)	475
Ending Balance	(9,173)	(4,284)	(9,173)	(4,284)
Securities Held-To-Maturity and Transferred Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(826)	(878)
Other comprehensive income before reclassifications			21	41
Amounts reclassified from accumulated other comprehensive loss			0	0
Net other comprehensive income during during the period			21	41
Ending Balance	(805)	(837)	(805)	(837)
Securities Available-For-Sale [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			736	1,319
Other comprehensive income before reclassifications			(77)	2
Amounts reclassified from accumulated other comprehensive loss			(760)	0
Net other comprehensive income during during the period			(837)	2
Ending Balance	(101)	1,321	(101)	1,321
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(8,457)	(5,200)
Other comprehensive income before reclassifications			(586)	0
Amounts reclassified from accumulated other comprehensive loss			776	432
Net other comprehensive income during during the period			190	432
Ending Balance	$ (8,267)	$ (4,768)	$ (8,267)	$ (4,768)

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PREMISES HELD FOR SALE

9 Months Ended

Sep. 30, 2015

PREMISES HELD FOR SALE [Abstract]

PREMISES HELD FOR SALE [Text Block]

15.   PREMISES HELD FOR SALE

During the nine months ended September 30, 2015, the Bank re-classified certain real estate utilized as the corporate headquarters and primary back office operations center of the Company and the Bank to premises held for sale. The aggregate recorded balance of the premises held for sale was $8,799 at September 30, 2015, the outstanding balance upon transfer.

A Purchase and Sale Agreement has been executed for the properties, for an aggregate price of $80,000. The sale is expected to close in February 2016.

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EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
EARNINGS PER SHARE (EPS) [Abstract]
Net income	$ 10,081	$ 11,765	$ 33,388	$ 32,259
Less: Dividends paid on earnings allocated to participating securities	(31)	(41)	(105)	(128)
Income attributable to common stock	$ 10,050	$ 11,724	$ 33,283	$ 32,131
Weighted Average Number Of Shares Outstanding Including Participating Securities Basic (in shares)	36,552,925	36,215,186	36,414,645	36,164,129
Less: weighted average participating securities (in shares)	(224,102)	(295,044)	(252,162)	(305,615)
Weighted average shares outstanding utilized in the calculation of basic EPS (in shares)	36,328,823	35,920,142	36,162,483	35,858,514
Earnings Per Share, Basic (in dollars per share)	$ 0.28	$ 0.33	$ 0.92	$ 0.90
Income attributable to common stock	$ 10,050	$ 11,724	$ 33,283	$ 32,131
Weighted average common shares outstanding	36,328,823	35,920,142	36,162,483	35,858,514
Common stock equivalents resulting from the dilutive effect of "in-the-money" stock options	92,631	54,197	87,887	82,231
Weighted average shares outstanding utilized in the calculation of diluted EPS (in shares)	36,421,454	35,974,339	36,250,370	35,940,745
Earnings Per Share, Diluted (in dollars per share)	$ 0.28	$ 0.33	$ 0.92	$ 0.90
Weighted average shares excluded from earnings per share calculation (in shares)	80,000	270,996	132,976	309,444

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EARNINGS PER SHARE (EPS) (Tables)

9 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE (EPS) [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income per the Consolidated Statements of Income	$	10,081		$	11,765		$	33,388		$	32,259
Less: Dividends paid and earnings allocated to participating securities		(31	)		(41	)		(105	)		(128	)
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding, including participating securities		36,552,925			36,215,186			36,414,645			36,164,129
Less: weighted average participating securities		(224,102	)		(295,044	)		(252,162	)		(305,615	)
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Basic EPS	$	0.28		$	0.33		$	0.92		$	0.90
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Weighted average common equivalent shares outstanding		92,631			54,197			87,887			82,231
Weighted average common and equivalent shares outstanding		36,421,454			35,974,339			36,250,370			35,940,745
Diluted EPS	$	0.28		$	0.33		$	0.92		$	0.90

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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 33,388	$ 32,259
Adjustments to reconcile net income to net cash provided by operating activities:
Net gain on sale of investment securities available-for-sale	(1,384)	0
Net gain on trading securities	97	(35)
Net gain on sale of loans	0	(27)
Net gain on the sale of OREO and other assets	0	(649)
Net depreciation, amortization and accretion	2,178	1,978
Stock plan compensation (excluding ESOP)	1,449	1,584
ESOP compensation expense	958	934
Provision (credit) for loan losses	(891)	(1,350)
Credit to reduce the liability for loans sold with recourse	0	(1,040)
Increase in cash surrender value of BOLI	(1,837)	(1,147)
Deferred income tax provision (credit)	148	(116)
Excess tax expense (benefit) from stock benefit plans	(204)	(71)
Changes in assets and liabilities:
Decrease in other assets	4,178	(341)
(Decrease) Increase in other liabilities	6,469	1,512
Net cash provided by operating Activities	44,549	33,491
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities held-to-maturity	127	76
Proceeds from calls and principal repayments of investment securities available-for-sale	0	15,000
Proceeds from sales of investment securities available-for-sale	2,070	0
Proceeds from sales of trading securities	1,340	0
Proceeds from Sale of Mortgage Backed Securities (MBS) categorized as Available-for-sale	24,307	0
Purchases of investment securities available-for-sale	(2,038)	(24)
Purchases of mortgage backed securities available-for-sale	0	(875)
Acquisition of trading securities	(1,572)	(200)
Principal collected on mortgage backed securities available-for-sale	1,589	4,645
Proceeds from the sale of loans	9,905	12,970
Purchases of loans	0	(221,924)
Loans originated, net of repayments	(381,530)	(145,861)
Proceeds from the sale of premises	0	4,273
Purchases of fixed assets, net	(1,071)	(1,500)
(Purchase) Redemption of FHLBNY capital stock	4,059	(7,184)
Net cash used in investing activities	(342,814)	(340,604)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in due to depositors	369,705	115,467
Increase in escrow and other deposits	39,211	26,426
Repayment of FHLBNY advances	(1,829,000)	(695,000)
Proceeds from FHLBNY advances	1,725,000	888,225
Exercise of stock options	4,056	278
Excess tax benefit of stock benefit plans	204	71
Release of stock for benefit plan awards	213	171
Treasury shares repurchased	(300)	0
Cash dividends paid	(15,188)	(15,075)
Net cash provided by Financing Activities	293,901	320,563
INCREASE IN CASH AND CASH EQUIVALENTS	(4,364)	13,450
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	78,437	45,777
CASH AND CASH EQUIVALENTS, END OF PERIOD	74,073	59,227
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	18,809	23,135
Cash paid for interest	35,269	35,689
Loans transferred to OREO	130	0
Transfer of premises to held for sale	9,534	0
Loans transferred to held for sale	8,799	12,943
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity	58	49
Net decrease in non-credit component of OTTI	$ (18)	$ 24

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UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Fair value of investment securities held to maturity	$ 7,478	$ 6,315
Stockholders' Equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	9,000,000	9,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	53,145,798	52,871,443
Common stock, shares outstanding (in shares)	37,188,352	36,855,019
Treasury stock (in shares)	15,956,924	16,016,424

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INVESTMENT AND MORTGAGE-BACKED SECURITIES

9 Months Ended

Sep. 30, 2015

INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract]

INVESTMENT AND MORTGAGE-BACKED SECURITIES

10. INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at September 30, 2015:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$15,553	$5,349	$2,382	$(253)	$7,478
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,894	3,894	5	(215)	3,684
MBS
Pass-through MBS issued by GSEs	431	431	15	-	446

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $874 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2014:

	Purchase Amortized/ Historical Cost	Recorded Amortized/ Historical Cost (1)	Unrealized Gains	Unrealized Losses	Fair Value
Investment securities held-to-maturity:
TRUPS	$15,815	$5,367	$1,119	$(171)	$6,315
Available-for-sale securities:
Investment securities
Registered Mutual Funds	3,860	3,860	-	(124)	3,736
Agency notes	70	70	-	-	70
MBS
Pass-through MBS issued by GSEs	24,154	24,154	1,453	-	25,607
Private issuer pass through MBS	449	449	6	-	455
Private issuer collateralized mortgage obligations ("CMOs")	343	343	4	-	347

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $932 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The held-to-maturity TRUPS had a weighted average term to maturity of 19.2 years at September 30, 2015.  At September 30, 2015, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 12.4 years. All of the pass-through MBS issued by GSEs possess an annual interest rate adjustment.

There were no sales of investment securities during the three-month periods ended September 30, 2015 and 2014, and during the nine months ended September 30, 2014, as the entire gain/loss on securities shown in the unaudited statements of income for these periods resulted from market valuation changes on trading securities. Proceeds from the sales of investment securities available-for-sale totaled $2,070 during the nine months ended September 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. There were no sales of MBS available-for-sale during the three-month periods ended September 30, 2015 and 2014, and during the nine months ended September 30, 2014. Proceeds from the sales of MBS available-for-sale totaled $24,307 during the nine months ended September 30, 2015. Gross gains of $1,395 and gross losses of $7 were recognized on these sales.

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the three-month and nine-month periods ended September 30, 2015 and 2014 are disclosed in the condensed consolidated statements of comprehensive income.

As of each reporting period through September 30, 2015, the Company has applied the protocol established by ASC 320-10-65 in order to determine whether OTTI existed for its TRUPS and/or to measure, for TRUPS that have been determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI.  As of September 30, 2015, five TRUPS were determined to meet the criteria for OTTI based upon this analysis.  At September 30, 2015, these five securities had credit ratings ranging from "C" to "Caa3."

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended September 30, 2015			At or for the Three Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,769	$596	$9,365	$8,945	$585	$9,530
Amortization of previously recognized OTTI	(26)	(9)	(35)	-	(8)	(8)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

	At or for the Nine Months Ended September 30, 2015			At or for the Nine Months Ended September 30, 2014
	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI	Credit Related OTTI Recognized in Earnings	Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss	Total OTTI
Cumulative pre-tax balance at the beginning of the period	$8,945	$569	$9,514	$8,945	$601	$9,546
Accretion (Amortization) of previously recognized OTTI	(202)	18	(184)	-	(24)	(24)
Cumulative pre-tax balance at end of the period	$8,743	$587	$9,330	$8,945	$577	$9,522

The following table summarizes the gross unrealized losses and fair value of investment securities as of September 30, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,442	$253	$2,442	$253
Available-for-Sale Securities:
Registered Mutual Funds	3,476	215	-	-	3,476	215

TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months

At September 30, 2015, impairment of two TRUPS was deemed temporary, as management believed that the full recorded balance of the investments would be realized.  In making this determination, management considered the following:

● Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, the securities could reasonably be expected to continue making all contractual payments

● The Company does not intend to sell these securities prior to full recovery of their impairment

● There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell these securities prior to their forecasted recovery or maturity

● The securities have a pool of underlying issuers comprised primarily of banks

● None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates)

● The securities feature either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security

● The securities are adequately collateralized

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2014, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses		12 Months or More Consecutive Unrealized Losses		Total
	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses	Fair Value	Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$-	$-	$2,562	$171	$2,562	$171
Available-for-Sale Securities:
Registered Mutual Funds	3,736	124	-	-	3,736	124

XML

Document and Entity Information - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	DIME COMMUNITY BANCSHARES INC
Entity Central Index Key	0001005409
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 517.4
Entity Common Stock, Shares Outstanding		37,300,686
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

11.   FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value hierarchy established under ASC 820-10 is summarized as follows:

Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 Inputs – Significant unobservable inputs for the asset or liability.  Significant unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets Measured at Fair Value on a Recurring Basis at September 30, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	995	$	995	$	-	$	-
International Equity Mutual Funds		273		273		-		-
Fixed Income Mutual Funds		7,429		7,429		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,183		1,183		-		-
International Equity Mutual Funds		372		372		-		-
Fixed Income Mutual Funds		2,129		2,129		-		-
Pass-through MBS issued by GSEs		446		-		446		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2014
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,399	$	1,399	$	-	$	-
International Equity Mutual Funds		159		159		-		-
Fixed Income Mutual Funds		7,001		7,001		-		-
Investment securities available-for-sale:
Agency notes		70		-		70		-
Registered Mutual Funds:
Domestic Equity Mutual Funds		2,160		2,160		-		-
International Equity Mutual Funds		415		415		-		-
Fixed Income Mutual Funds		1,161		1,161		-		-
Pass-through MBS issued by GSEs		25,607		-		25,607		-
Private issuer pass through MBS		455		-		455		-
Private issuer CMOs		347		-		347		-

The Company's available-for-sale investment securities and MBS are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable.  Prioritization of inputs may vary on any given day based on market conditions.

The pass-through MBS issued by GSEs all possessed the highest possible credit rating published by at least one established credit rating agency as of September 30, 2015 and December 31, 2014. Obtaining market values as of September 30, 2015 and December 31, 2014 for these securities utilizing significant observable inputs was not difficult due to their considerable demand. The agency notes, private issuer pass through MBS and private issuer CMOs owned by the Company at December 31, 2014 were sold during the nine months ended September 30, 2015. For each security classification, the value received from the sale approximated the most recently obtained pricing utilizing the methodology indicated above.

There were no assets measured at fair value on a non-recurring basis as of September 30, 2015. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2014:

Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2014
		Fair Value Measurements Using
Description	Total	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Impaired loans:
Commercial Mixed Use Real Estate	$4,400	$-	$-	$4,400

Loans Held for Sale - Loans held for sale are valued at the contractual sales price negotiated and agreed to by the Bank and a third party purchaser (deemed a Level 2 input).

Impaired Loans - Loans with certain characteristics are evaluated individually for impairment. A loan is considered impaired under ASC 310-10-35 when, based upon existing information and events, it is probable that the Bank will be

unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Bank's impaired loans at September 30, 2015 and December 31, 2014 were collateralized by real estate and were thus carried at the lower of the outstanding principal balance or the estimated fair value of the collateral.  Fair value is estimated through either a negotiated note sale price (Level 3 input), or, more commonly, a recent real estate appraisal (Level 3 input).  The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

An appraisal is generally ordered for all impaired multifamily residential, mixed use and commercial real estate loans for which the most recent appraisal is more than one year old.  The Bank never adjusts independent appraisal data upward.  Occasionally, management will adjust independent appraisal data downward based upon its own lending expertise and/or experience with the subject property, utilizing such factors as potential note sale values, or a more refined estimate of costs to repair and time to lease the property.  Adjustments for potential disposal costs are also considered when determining the final appraised value.

As of September 30, 2015, there were no impaired loans measured at fair value. As of December 31, 2014, impaired loans measured for impairment using the estimated fair value of the collateral had an aggregate principal balance of $4,400, and no valuation allowance within the allowance for loan losses. Impaired loans measured at fair value using the estimated fair value of the collateral had no impact upon the provision for loan losses during the three-month or nine-month periods ended either September 30, 2015 or 2014.

The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis at December 31, 2014:

Fair Value Derived	Valuation Technique Utilized	Significant Unobservable Input(s)	Minimum Value	Maximum Value	Weighted Average Value
$4,400	Income approach only	Capitalization rate	N/A(1)	N/A(1)	7.5%

(1)  Only one loan in this population.

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at September 30, 2015 and December 31, 2014 were as follows:

			Fair Value at September 30, 2015 Using
At September 30, 2015	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	74,073	$	74,073		$	-		$	-		$	74,073
Federal funds sold and other short-term investments		-		-			-			-			-
Investment securities held to maturity (TRUPS)		5,349		-			7,478			-			7,478
Loans, net (excluding impaired loans carried at fair value)		4,473,133		-			-			4,521,373			4,521,373
Accrued interest receivable		12,547		-			28			12,519			12,547
FHLBNY capital stock		54,348		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		2,141,790		2,141,790			-			-			2,141,790
Certificates of Deposit ("CDs")		887,707		-			895,391			-			895,391
Escrow and other deposits		131,132		131,132			-			-			131,132
FHLBNY Advances		1,069,725		-			1,079,707			-			1,079,707
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,389		-			2,389			-			2,389

			Fair Value at December 31, 2014 Using
At December 31, 2014	Carrying Amount		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total
Assets:
Cash and due from banks	$	78,187	$	78,187		$	-		$	-		$	78,187
Federal funds sold and other short-term investments		250		250			-			-			250
Investment securities held to maturity (TRUPS)		5,367		-			-			6,315			6,315
Loans, net (excluding impaired loans carried at fair value)		4,096,347		-			-			4,188,137			4,188,137
Accrued interest receivable		12,664		2			104			12,558			12,664
FHLBNY capital stock		58,407		N/	A		N/	A		N/	A		N/	A
Liabilities:
Savings, money market and checking accounts		1,733,474		1,733,474			-			-			1,733,474
CDs		926,318		-			934,324			-			934,324
Escrow and other deposits		91,921		91,921			-			-			91,921
FHLBNY Advances		1,173,725		-			1,186,069			-			1,186,069
Trust Preferred securities payable		70,680		-			70,680			-			70,680
Accrued interest payable		2,729		-			2,729			-			2,729

Cash and Due From Banks – The fair value is assumed to be equal to their carrying value as these amounts are due upon demand (deemed a Level 1 valuation).

Federal Funds Sold and Other Short Term Investments – As a result of their short duration to maturity, the fair value of these assets, principally overnight deposits, is assumed to be equal to their carrying value due (deemed a Level 1 valuation).

TRUPS Held to Maturity – At both September 30, 2015 and December 31, 2014, the Company owned seven TRUPS classified as held-to-maturity.

At December 31, 2014, their estimated fair value was obtained utilizing the following weighted valuation sources: 1) broker quotations (10% valuation weighting), which were deemed to meet the criteria of "distressed sale" pricing under the guidance of ASC 820-10-65-4 (deemed to be a Level 3 valuation for which the Company is not provided detailed information regarding the significant unobservable inputs utilized by the third parties); 2) an internally created cash flow valuation model (45% valuation weighting) that considered the creditworthiness of each individual issuer underlying the collateral pools, and utilized default, cash flow and discount rate assumptions determined by the Company's management (the "Internal Cash Flow Valuation") (deemed to be a Level 3 valuation); and 3) the average of a minimum of two of three available independent cash flow valuation models (45% valuation weighting) (deemed to be a Level 3 valuation for which the Company is not provided detailed information regarding the significant unobservable inputs utilized by the third parties).

The major assumptions utilized as of December 31, 2014 in the Internal Cash Flow Valuation (each of which represents a significant unobservable input as defined by ASC 820-10) were disclosed in Note 17 to the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 16, 2015.

As discussed above, in addition to the Internal Cash Flow Valuation and broker quotations, at December 31, 2014 the Company utilized two additional independent cash flow valuation models in order to estimate the fair value of TRUPS.  The two independent cash flow valuation models utilized a methodology similar to the Internal Cash Flow Valuation, differing only in the underlying assumptions utilized to derive estimated cash flows, individual bank defaults and discount rate.

As a result of improved marketplace stability and enhanced trading activity, broker quotations became the sole valuation source utilized to estimate the fair value of TRUPS as of September 30, 2015. The broker quotations at September 30, 2015 were deemed to be a Level 2 valuation.

Loans, Net (Excluding Impaired Loans Carried at Fair Value) – For adjustable rate loans repricing monthly or quarterly, and with no significant change in credit risk, fair values are based on carrying values.  The fair value of all remaining loans receivable is determined by discounting anticipated future cash flows of the loans, net of anticipated prepayments, using a discount rate reflecting current market rates for loans with similar terms to borrowers of similar credit quality.  The valuation method used for loans does not necessarily represent an exit price valuation methodology as defined under ASC 820.  However, since the valuation methodology is deemed to be comparable to a Level 3 input, the fair value of loans receivable other than impaired loans measured at fair value is shown under the Level 3 valuation column.

Accrued Interest Receivable – The estimated fair value of accrued interest receivable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial asset.

FHLBNY Capital Stock – It is not practicable to determine the fair value of FHLBNY capital stock due to restrictions placed on transferability.

Deposits – The fair value of savings, money market, and checking accounts is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.  The fair value of CDs is based upon the present value of contractual cash flows using current interest rates for instruments of the same remaining maturity (deemed a Level 2 valuation).

Escrow and Other Deposits – The fair value of escrow and other deposits is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.

FHLBNY Advances – Thefair value of FHLBNY advances is measured by the discounted anticipated cash flows through contractual maturity or next interest repricing date, or an earlier call date if, as of the valuation date, the borrowing is expected to be called (deemed a Level 2 valuation).  The carrying amount of accrued interest payable on FHLBNY advances is its fair value and is deemed a Level 2 valuation.

Trust Preferred Securities Payable – The fair value of trust preferred securities payable is estimated using discounted cash flow analyses based on then current borrowing rates for similar types of borrowing arrangements (deemed a Level 2 valuation), and is provided to the Company quarterly independently by a market maker in the underlying security.

Accrued Interest Payable – The estimated fair value of accrued interest payable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial liability.

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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income:
Loans secured by real estate	$ 42,109	$ 43,477	$ 127,370	$ 126,311
Other loans	22	26	70	80
Mortgage-backed securities	1	223	184	707
Investment securities	254	68	544	274
Federal funds sold and other short-term investments	510	551	1,738	1,609
Total interest income	42,896	44,345	129,906	128,981
Interest expense:
Deposits and escrow	5,890	4,976	16,780	14,590
Borrowed funds	5,192	7,410	18,148	21,583
Total interest expense	11,082	12,386	34,928	36,173
Net interest income	31,814	31,959	94,978	92,808
Provision (credit) for loan losses	416	(501)	(891)	(1,350)
Net interest income after credit for loan losses	31,398	32,460	95,869	94,158
Non-interest income:
Service charges and other fees	1,013	1,084	2,562	2,507
Net mortgage banking income	41	71	154	1,153
Net gain (loss) on securities	(138)	(43)	1,287	35
Net gain on the disposal of other assets	0	0	0	649
Income from BOLI	620	382	1,837	1,147
Other	363	323	1,037	951
Total non-interest income	1,899	1,817	6,877	6,442
Non-interest expense:
Salaries and employee benefits	8,370	7,806	22,870	24,472
Stock benefit plan amortization expense	885	954	2,767	2,912
Occupancy and equipment	2,531	2,513	7,965	7,656
Data processing costs	1,023	814	2,775	2,467
Federal deposit insurance premiums	575	547	1,703	1,576
Other	2,740	2,090	8,274	6,762
Total non-interest expense	16,124	14,724	46,354	45,845
Income before income taxes	17,173	19,553	56,392	54,755
Tax expense (benefit)	7,092	7,788	23,004	22,496
Net income	$ 10,081	$ 11,765	$ 33,388	$ 32,259
Earnings per Share:
Basic (in dollars per share)	$ 0.28	$ 0.33	$ 0.92	$ 0.90
Diluted (in dollars per share)	$ 0.28	$ 0.33	$ 0.92	$ 0.90
STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 10,081	$ 11,765	$ 33,388	$ 32,259
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, net of deferred tax expense of $5 during the three months ended both September 30, 2015 and 2014, and $26 and $21 during the nine months ended September 30, 2015 and 2014, respectively	6	7	31	29
Reduction in (adjustment to) non-credit component of other than temporary impairment (OTTI), net of deferred tax expense of $4 during the three months ended both September 30, 2015 and 2014, and $8 and $13 during the nine months ended both September 30, 2015 and 2014, respectively,	5	4	(10)	11
Reclassification adjustment for securities sold during the period, net of income tax benefit of $(624) during the nine months ended September 30, 2015 (reclassified from net gain on securities)	0	0	(760)	0
Net unrealized securities gains (losses) arising during the period, net of deferred tax expense (benefit) of $(79) and $(24) during the three months ended September 30, 2015 and 2014, respectively, and $(64) and $2 during the nine months ended September 30, 2015 and 2014, respectively,	(97)	(30)	(77)	3
Change in pension and other postretirement obligations, net of deferred tax expense of $216 and $117 during the three months ended September 30, 2015 and 2014, respectively and $158 and $351 during the nine months ended September 30, 2015 and 2014, respectively	262	144	190	432
Comprehensive Income	$ 10,257	$ 11,890	$ 32,762	$ 32,734

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OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2015

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss) [Text Block]

5.   OTHER COMPREHENSIVE INCOME (LOSS)

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net (loss) gain on securities in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	9		$	4		$	5
Change in unrealized loss on securities transferred to held to maturity		11			5			6
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(176	)		(79	)		(97	)
Total securities available-for-sale		(176	)		(79	)		(97	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		478			216			262
Change in the net actuarial gain or loss		-			-			-
Total defined benefit plans		478			216			262
Total other comprehensive income	$	322		$	146		$	176
Three Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held to maturity		12			5			7
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(54	)		(24	)		(30	)
Total securities available-for-sale		(54	)		(24	)		(30	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		261			117			144
Total defined benefit plans		261			117			144
Total other comprehensive income	$	227		$	102		$	125

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Nine Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	(18	)	$	(8	)	$	(10	)
Change in unrealized loss on securities transferred to held to maturity		57			26			31
Total securities held-to-maturity and transferred securities		39			18			21
Securities available-for-sale:
Reclassification adjustment for net gains included in net (loss) gain on securities		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		(141	)		(64	)		(77	)
Total securities available-for-sale		(1,525	)		(688	)		(837	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		1,412			636			776
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		348			158			190
Total other comprehensive loss	$	(1,138	)	$	(512	)	$	(626	)
Nine Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	24		$	13		$	11
Change in unrealized loss on securities transferred to held to maturity		50			21			29
Total securities held-to-maturity and transferred securities		74			34			40
Securities available-for-sale:
Change in net unrealized gain during the period		5			2			3
Total securities available-for-sale		5			2			3
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		783			351			432
Total defined benefit plans		783			351			432
Total other comprehensive income	$	862		$	387		$	475

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to-Maturity and Transferred Securities			Securities Available-for-Sale			Defined Benefit Plans			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	(8,547	)
Other comprehensive income (loss) before reclassifications		21			(77	)		(586	)		(642	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		776			16
Net other comprehensive income (loss) during the period		21			(837	)		190			(626	)
Balance as of September 30, 2015	$	(805	)	$	(101	)	$	(8,267	)	$	(9,173	)
Balance as of January 1, 2014	$	(878	)	$	1,319		$	(5,200	)	$	(4,759	)
Other comprehensive income before reclassifications		41			2			-			43
Amounts reclassified from accumulated other comprehensive loss		-			-			432			432
Net other comprehensive income during the period		41			2			432			475
Balance as of September 30, 2014	$	(837	)	$	1,321		$	(4,768	)	$	(4,284	)

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TREASURY STOCK

9 Months Ended

Sep. 30, 2015

TREASURY STOCK [Abstract]

TREASURY STOCK

4.   TREASURY STOCK

There were no treasury stock repurchases during the three months ended September 30, 2015, or the three-month or nine-month periods ended September 30, 2014. The Holding Company repurchased 20,000 shares of its common stock into treasury during the nine months ended September 30, 2015 at a weighted average cost of $15.00 per share.

On April 23, 2015, 11,557 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the BMP. The closing price of the Holding Company's common stock on that date was $16.37, and the shares were released utilizing the average historical cost method. On April 30, 2015, 68,069 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the Dime Community Bancshares, Inc. 2013 Equity and Incentive Plan (the "2013 Equity and Incentive Plan"). The closing price of the Holding Company's common stock on that date was $15.92, and the shares were released utilizing the average historical cost method.

On April 30, 2014, 121,333 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under either the Dime Community Bancshares, Inc. 2004 Stock Incentive Plan (the "2004 Stock Incentive Plan") or the 2013 Equity and Incentive Plan, and 9,364 shares of treasury stock were released in order to fulfill benefit obligations under the BMP.  The closing price of the Holding Company's common stock on that date was $16.30, and the shares were released utilizing the average historical cost method.

Shares either released from treasury stock for earned equity awards or returned to treasury stock due to forfeited equity awards were otherwise immaterial during the three-month and nine-month periods ended September 30, 2015 and 2014.

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2015

Other Comprehensive Income (Loss) [Abstract]

Reclassification Out Of Accumulated Other Comprehensive Income

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net (loss) gain on securities in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	9		$	4		$	5
Change in unrealized loss on securities transferred to held to maturity		11			5			6
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(176	)		(79	)		(97	)
Total securities available-for-sale		(176	)		(79	)		(97	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		478			216			262
Change in the net actuarial gain or loss		-			-			-
Total defined benefit plans		478			216			262
Total other comprehensive income	$	322		$	146		$	176
Three Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held to maturity		12			5			7
Total securities held-to-maturity and transferred securities		20			9			11
Securities available-for-sale:
Change in net unrealized gain during the period		(54	)		(24	)		(30	)
Total securities available-for-sale		(54	)		(24	)		(30	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		261			117			144
Total defined benefit plans		261			117			144
Total other comprehensive income	$	227		$	102		$	125

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Nine Months Ended September 30, 2015
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	(18	)	$	(8	)	$	(10	)
Change in unrealized loss on securities transferred to held to maturity		57			26			31
Total securities held-to-maturity and transferred securities		39			18			21
Securities available-for-sale:
Reclassification adjustment for net gains included in net (loss) gain on securities		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		(141	)		(64	)		(77	)
Total securities available-for-sale		(1,525	)		(688	)		(837	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		1,412			636			776
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		348			158			190
Total other comprehensive loss	$	(1,138	)	$	(512	)	$	(626	)
Nine Months Ended September 30, 2014
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	24		$	13		$	11
Change in unrealized loss on securities transferred to held to maturity		50			21			29
Total securities held-to-maturity and transferred securities		74			34			40
Securities available-for-sale:
Change in net unrealized gain during the period		5			2			3
Total securities available-for-sale		5			2			3
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		783			351			432
Total defined benefit plans		783			351			432
Total other comprehensive income	$	862		$	387		$	475

Schedule of Accumulated Other Comprehensive Income (Loss)

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to-Maturity and Transferred Securities			Securities Available-for-Sale			Defined Benefit Plans			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	(8,547	)
Other comprehensive income (loss) before reclassifications		21			(77	)		(586	)		(642	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		776			16
Net other comprehensive income (loss) during the period		21			(837	)		190			(626	)
Balance as of September 30, 2015	$	(805	)	$	(101	)	$	(8,267	)	$	(9,173	)
Balance as of January 1, 2014	$	(878	)	$	1,319		$	(5,200	)	$	(4,759	)
Other comprehensive income before reclassifications		41			2			-			43
Amounts reclassified from accumulated other comprehensive loss		-			-			432			432
Net other comprehensive income during the period		41			2			432			475
Balance as of September 30, 2014	$	(837	)	$	1,321		$	(4,768	)	$	(4,284	)

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RETIREMENT AND POSTRETIREMENT PLANS

9 Months Ended

Sep. 30, 2015

RETIREMENT AND POSTRETIREMENT PLANS [Abstract]

RETIREMENT AND POSTRETIREMENT PLANS

12.   RETIREMENT AND POSTRETIREMENT PLANS

The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh (the "Postretirement Plan").  Net expenses associated with these plans were comprised of the following components:

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	10
Interest cost		344			18			338			58
Expected return on assets		(414	)		-			(444	)		-
Amortization of unrealized loss		480			(2	)		261			-
Net periodic cost	$	410		$	16		$	155		$	68

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	9		$	-		$	30
Interest cost		749			556			1,014			174
Expected return on assets		(1,242	)		-			(1,332	)		-
Curtailment gain(1)		-			(3,394	)		-			-
Amortization of unrealized loss		1,257			(27	)		783			-
Net periodic cost (gain)	$	764		$	(2,856	)	$	465		$	204

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

The Company disclosed in its consolidated financial statements for the year ended December 31, 2014 that it expected to make contributions to, or benefit payments on behalf of, benefit plans during 2015 as follows: Employee Retirement Plan - $14, BMP - $604, Outside Director Retirement Plan - $188, and Postretirement Plan - $145.  The Company made contributions of $7 to the Employee Retirement Plan during the three months ended September 30, 2015, and $12 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated contributions during 2015.  The Company made benefit payments of $41 on behalf of the Outside Director Retirement Plan during the three months ended September 30, 2015, and $130 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated net contributions or benefit payments during 2015.  The Company made benefit payments totaling $25 on behalf of the Postretirement Plan during the three months ended September 30, 2015, and $56 during the nine months ended September 30, 2015, and expects to make the remainder of the estimated $145 of contributions or benefit payments during 2015. Since all benefit payments expected to be made to the Postretirement Plan for the year ending December 31, 2015 related to previously earned benefits, the curtailment of future Postretirement Plan benefits enacted during the nine months ended September 30, 2015 had no impact upon the expected benefit payments to be made in 2015. The Company did not make any defined benefit contributions to, or benefit payments on behalf of, the BMP during the three-month or nine-month periods ended September 30, 2015, and does not currently expect to make benefit payments on behalf of the BMP during 2015, since anticipated retirements that formed the basis for these expected benefit payments in 2015 are presently not expected to occur.

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LOANS RECEIVABLE AND CREDIT QUALITY

9 Months Ended

Sep. 30, 2015

LOANS RECEIVABLE AND CREDIT QUALITY [Abstract]

LOANS RECEIVABLE AND CREDIT QUALITY

8.   LOANS RECEIVABLE AND CREDIT QUALITY

Loans are reported at the principal amount outstanding, net of unearned fees or costs and the allowance for loan losses.  Interest income on loans is recorded using the level yield method.  Under this method, discount accretion and premium amortization are included in interest income.  Loan origination fees and certain direct loan origination costs are deferred and amortized as yield adjustments over the contractual loan terms.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying them as to credit risk.  This analysis includes all non-homogeneous loans, such as multifamily residential, mixed use residential (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the residential units), mixed use commercial real estate (i.e.,loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the commercial units), commercial real estate and construction and land acquisition loans, as well as one-to four family residential and cooperative and condominium  apartment loans with balances in excess of the Fannie Mae ("FNMA") conforming loan limits for high-cost areas such as the Bank's primary lending area ("FNMA Limits") that are deemed to meet the definition of impaired.  This analysis is performed on a quarterly basis.  The Company uses the following definitions for risk ratings:

Special Mention.  Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date.

Substandard.  Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.

   The Bank had no loans classified as doubtful as of September 30, 2015 or December 31, 2014. All real estate loans not classified as Special Mention or Substandard were deemed pass loans at both September 30, 2015 and December 31, 2014.

The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

	Balance at September 30, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	8,098	$	-	$	-	$	-	$	-	$	8,098
Pass		58,311		3,550,193		373,219		459,773		-		4,441,496
Special Mention		1,347		9,339		1,630		5,620		-		17,936
Substandard		1,862		7,841		5,573		7,818		-		23,094
Doubtful		-		-		-		-		-		-
Total	$	69,618	$	3,567,373	$	380,422	$	473,211	$	-	$	4,490,624

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

	Balance at December 31, 2014
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	9,091	$	-	$	-	$	-	$	-	$	9,091
Pass		60,764		3,271,430		317,718		391,227		-		4,041,139
Special Mention		1,370		20,738		4,944		6,431		-		33,483
Substandard		2,275		6,280		6,005		19,138		-		33,698
Doubtful		-		-		-		-		-		-
Total	$	73,500	$	3,298,448	$	328,667	$	416,796	$	-	$	4,117,411

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

For consumer loans, the Company evaluates credit quality based on payment activity.  Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at September 30, 2015	Balance at December 31, 2014
Performing	$1,466	$1,825
Non-accrual	2	4
Total	$1,468	$1,829

The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At September 30, 2015
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, including  condominium and cooperative apartment	$174	$4	$630	$834	$1,642	$67,976	$69,618
Multifamily residential and residential mixed use	2,244	-	374	547	3,165	3,564,208	3,567,373
Commercial mixed use real estate	130	-	406	-	536	379,886	380,422
Commercial real estate	-	-	1,093	207	1,300	471,911	473,211
Total real estate	$2,548	$4	$2,503	$1,588	$6,643	$4,483,981	$4,490,624
Consumer	$2	$-	$-	$2	$4	$1,464	$1,468

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of September 30, 2015.

At December 31, 2014
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, includingcondominium and cooperative apartment	$240	$-	$-	$1,310	$1,550	$71,950	$73,500
Multifamily residential and residential mixed use	1,187	-	2,922	167	4,276	3,294,172	3,298,448
Commercial mixed use real estate	-	-	411	-	411	328,256	328,667
Commercial real estate	-	-	-	4,717	4,717	412,079	416,796
Total real estate	$1,427	$-	$3,333	$6,194	$10,954	$4,106,457	$4,117,411
Consumer	$2	$-	$-	$4	$6	$1,823	$1,829

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014.

Accruing Loans 90 Days or More Past Due

The Bank continued accruing interest on eight real estate loans with an aggregate outstanding balance of $2,503 at September 30, 2015, and eight real estate loans with an aggregate outstanding balance of $3,333 at December 31, 2014, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity.  These loans were well secured and were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above.

Troubled Debt Restructurings ("TDRs")

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
One- to four-family residential, including condominium and cooperative apartment	2	$599	2	$605
Multifamily residential and residential mixed use	3	705	4	1,105
Commercial mixed use real estate	1	4,365	1	4,400
Commercial real estate	2	3,651	4	13,707
Total real estate	8	$9,320	11	$19,817

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
Outstanding principal balance at period end	8	$9,320	11	$19,817
TDRs on accrual status at period end	7	9,113	9	15,100
TDRs on non-accrual status at period end	1	207	2	4,717

Accrual status for TDRs is determined separately for each TDR in accordance with the Bank's policies for determining accrual or non-accrual status.  At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be on either accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing), it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank's policy and agency regulations.

        The Company has not restructured troubled consumer loans, as its consumer loan portfolio has not experienced any problem issues warranting restructuring.  Therefore, all TDRs were collateralized by real estate at both September 30, 2015 and December 31, 2014.

There were no loans modified in a manner that met the criteria of a TDR during the three-month and nine-month periods ended September 30, 2015.

The following table summarizes activity related to TDRs for the periods indicated:

	For the Three Months Ended September 30, 2014			For the Nine Months Ended September 30, 2014
	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
Loan modifications during the period  that met the definition of a TDR:
Commercial mixed use real estate	-	-	-	1	$4,400	$4,400
Commercial real estate	1	$3,500	$3,500	1	3,500	3,500
TOTAL	1	$3,500	$3,500	2	$7,900	$7,900

The Bank's allowance for loan losses at September 30, 2015 did not reflect any allocated reserve associated with TDRs.  The Bank's allowance for loan losses at December 31, 2014 reflected $19 of allocated reserve associated with TDRs. Activity related to reserves associated with TDRs was immaterial during the three-month and nine-month periods ended September 30, 2015 and 2014.

As of September 30, 2015 and December 31, 2014, the Bank had no loan commitments to borrowers with outstanding TDRs.

A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms.  All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.

There were no TDRs which defaulted within twelve months following the modification during the three-month or nine-month periods ended September 30, 2015 and 2014 (thus no significant impact to the allowance for loan losses during those periods).

Impaired Loans

A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Bank considers TDRs and non-accrual multifamily residential and commercial real estate loans, along with non-accrual one- to four-family loans in excess of the FNMA Limits, to be impaired.  Non-accrual one-to four-family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR.

Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan's pre-modification rate for some of the performing TDRs).  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances).  If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment.  Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses.

Please refer to Note 9 for tabular information related to impaired loans.

Loans Re-acquired from FNMA

Until February 20, 2014, the Bank serviced a pool of multifamily loans sold to FNMA, and retained an obligation (off-balance sheet contingent liability) to absorb a portion of any losses (as defined in the seller/servicer agreement) incurred by FNMA in connection with the loans sold (the "First Loss Position").  This pool of loans was re-acquired on February 20, 2014, and the First Loss Position was extinguished. Since re-acquisition, the credit quality of these loans has been evaluated in accordance with the policies and procedures discussed in this note.

The Company paid an aggregate premium of $13,163 on the real estate loans re-acquired from FNMA during the nine months ended September 30, 2014.  The premium is being amortized as an adjustment to interest income throughout the remaining estimated life of the loans. At September 30, 2015 and December 31, 2014, the remaining unamortized premium totaled $3,944 and $7,950, respectively.

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EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE (EPS) [Abstract]

EARNINGS PER SHARE

6.   EARNINGS PER SHARE ("EPS")

Basic EPS is computed by dividing income attributable to common stock by the weighted-average common shares outstanding during the reporting period.  Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if "in the money" stock options were exercised and converted into common stock.  In determining the weighted average shares outstanding for basic and diluted EPS, treasury stock and unallocated ESOP shares are excluded.  Vested restricted stock award shares are included in the calculation of the weighted average shares outstanding for basic and diluted EPS.  Unvested restricted stock award shares are recognized as a special class of securities under ASC 260.

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income per the Consolidated Statements of Income	$	10,081		$	11,765		$	33,388		$	32,259
Less: Dividends paid and earnings allocated to participating securities		(31	)		(41	)		(105	)		(128	)
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding, including participating securities		36,552,925			36,215,186			36,414,645			36,164,129
Less: weighted average participating securities		(224,102	)		(295,044	)		(252,162	)		(305,615	)
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Basic EPS	$	0.28		$	0.33		$	0.92		$	0.90
Income attributable to common stock	$	10,050		$	11,724		$	33,283		$	32,131
Weighted average common shares outstanding		36,328,823			35,920,142			36,162,483			35,858,514
Weighted average common equivalent shares outstanding		92,631			54,197			87,887			82,231
Weighted average common and equivalent shares outstanding		36,421,454			35,974,339			36,250,370			35,940,745
Diluted EPS	$	0.28		$	0.33		$	0.92		$	0.90

Common equivalent shares resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-moneystock options during the period.

      There were 80,000 and 270,996 weighted-average stock options outstanding for the three-month periods ended September 30, 2015 and 2014, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.  There were 132,976 and 309,444 weighted-average stock options outstanding for the nine-month periods ended September 30, 2015 and 2014, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.

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ACCOUNTING FOR STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

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, 2015 and 2014, 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 15 to the Company's audited consolidated financial statements for the year ended December 31, 2014, 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,
	2015	2014	2015	2014
Options outstanding – beginning of period	646,201	979,916	979,916	1,615,771
Options granted	-	-	-	-
Options exercised	-	-	(274,355)	(16,960)
Options that expired prior to exercise	-	-	(59,360)	(618,895)
Options outstanding – end of period	646,201	979,916	646,201	979,916
Intrinsic value of options exercised	$-	$-	$384	$6
Compensation expense recognized	-	23	31	86
Remaining unrecognized compensation expense	-	54	-	54
Intrinsic value of outstanding options at period end	1,609	468	1,609	468
Intrinsic value of vested options at period end	1,609	468	1,609	468
Weighted average exercise price of vested options – end of period	14.57	14.73	14.57	14.73

There were no grants of stock options during the three-month and nine-month periods ended September 30, 2015 and 2014.

Restricted Stock Awards

Prior to June 2014, the Company issued restricted stock awards to outside directors and certain officers under the 2004 Equity Plan. Presently, the Company issues restricted stock awards periodically to outside directors and certain officers under 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 or 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,
	2015	2014	2015	2014
Unvested allocated shares – beginning of period	224,372	295,044	289,660	318,314
Shares granted	-	-	68,069	121,333
Shares vested	-	-	(132,377)	(141,361)
Shares forfeited	(478)	-	(1,458)	(3,242)
Unvested allocated shares – end of period	223,894	295,044	223,894	295,044
Compensation recorded to expense	$434	$501	$1,418	$1,497

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ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA

9 Months Ended

Sep. 30, 2015

ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA [Abstract]

ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA

9.   ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses may consist of specific and general components.  The Bank's periodic evaluation of its allowance for loan losses (specific or general) is comprised of four primary components: (1) impaired loans; (2) non-impaired substandard loans; (3) non-impaired special mention loans; and (4) pass graded loans.  Within these components, the Company has identified the following portfolio segments for purposes of assessing its allowance for loan losses (specific or general): (1) real estate loans; and (2) consumer loans.  Within these segments, the Bank analyzes the allowance for loan losses based upon the underlying collateral type (classes). Due to their small homogeneous balances, consumer loans were not individually evaluated for impairment as of both September 30, 2015 and December 31, 2014.

Impaired Loan Component

All multifamily residential, mixed use, commercial real estate and construction loans that are deemed to meet the definition of impaired are individually evaluated for impairment.  In addition, all condominium or cooperative apartment

and one- to four-family residential real estate loans in excess of the FNMA Limits are individually evaluated for impairment.  Impairment is typically measured using the difference between the outstanding loan principal balance and either: (1) the likely realizable value of a note sale; (2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or (3) the present value of estimated future cash flows (using the loan's pre-modification rate in the case of some performing TDRs).  For impaired loans on non-accrual status, either of the initial two measurements is utilized.

All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the present value of the expected cash flows from the debt service or the potential net liquidation proceeds of the underlying collateral in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, the likely realizable net proceeds from either a note sale or the liquidation of the collateral are generally considered when measuring impairment.  While measured impairment is generally charged off immediately, impairment attributed to a reduction in the present value of expected cash flows of a performing TDR is generally reflected as an allocated reserve within the allowance for loan losses. At September 30, 2015 and December 31, 2014, there were no allocated reserves related to TDRs within the allowance for loan losses.

Smaller balance homogeneous real estate loans, such as condominium or cooperative apartment and one-to four-family residential real estate loans with balances equal to or less than the FNMA Limits, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

Non-Impaired Substandard Loan Component

At both September 30, 2015 and December 31, 2014, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank's pool of such loans that were derived based upon an analysis of historical losses over a measurement timeframe.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Substandard loans at September 30, 2015 and December 31, 2014.  Based upon this methodology, increases or decreases in the amount of either non-impaired Substandard loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on non-impaired Substandard loans.  As a result, the allowance for loan losses associated with non-impaired Substandard loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Substandard loans was $284 at September 30, 2015 and $371 at December 31, 2014.  The decline resulted from both a reduction of $4,002 in the balance of such loans from December 31, 2014 to September 30, 2015, as well as a lower average loss expectation derived as of September 30, 2015 compared to December 31, 2014.

All non-impaired Substandard loans were deemed sufficiently well secured and performing to have remained on accrual status both prior and subsequent to their downgrade to the Substandard internal loan grade.

Non-Impaired Special Mention Loan Component

At both September 30, 2015 and December 31, 2014, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected an expected loss percentage on the Bank's pool of such loans that was derived based upon an analysis of historical losses over a measurement timeframe.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Special Mention loans at September 30, 2015 and December 31, 2014.  Based upon this methodology, increases or decreases in the amount of either non-impaired Special Mention loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive expected the loss percentage, would impact the level of reserves determined on non-impaired Special Mention loans.  As a result, the allowance for loan losses associated with non-impaired Special Mention loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Special Mention loans declined from $228 at December 31, 2014 to $98 at September 30, 2015, due to both a reduction of $15,547 in the balance of such loans and a lower expected loss percentage applied to such loans at September 30, 2015 compared to December 31, 2014 under the methodology employed.

Pass Graded Loan Component

The Bank initially looks to the underlying collateral type when determining the allowance for loan losses associated with pass graded real estate loans.  The following underlying collateral types are analyzed separately: 1) one- to four family residential and condominium or cooperative apartments securing loans in excess of the FNMA Limits; 2) multifamily

residential and residential mixed use; 3) commercial mixed use real estate, 4) commercial real estate; and 5) construction and land acquisition.  Within the analysis of each underlying collateral type, the following elements are additionally considered and provided weighting in determining the allowance for loan losses for pass graded real estate loans:

(i) Charge-off experience (including peer charge-off experience)

(ii) Economic conditions

(iii) Underwriting standards or experience

(iv) Loan concentrations

(v) Regulatory climate

(vi) Nature and volume of the portfolio

(vii) Changes in the quality and scope of the loan review function

The following is a brief synopsis of the manner in which each element is considered:

(i)  Charge-off experience - Loans within the pass graded loan portfolio are segmented by significant common characteristics, against which historical loss rates are applied.  The Bank also reviews and considers the charge-off experience of peer banks in its lending marketplace in order to determine the existence of potential losses that could take a longer period to flow through its allowance for loan losses.

(ii) Economic conditions - At both September 30, 2015 and December 31, 2014, the Bank assigned a loss allocation to its entire pass graded real estate loan portfolio based, in part, upon a review of economic conditions affecting the local real estate market. Specifically, the Bank considered both the level of, and recent trends in: 1) the local and national unemployment rate, 2) residential and commercial vacancy rates, 3) real estate sales and pricing, and 4) delinquencies in the Bank's loan portfolio.

(iii) Underwriting standards or experience - Underwriting standards are reviewed to ensure that changes in the Bank's lending policies and practices are adequately evaluated for risk and reflected in its analysis of potential credit losses.  Loss expectations associated with changes in the Bank's lending policies and practices, if any, are then incorporated into the methodology.

(iv) Loan concentrations - The Bank regularly reviews its loan concentrations (borrower, collateral type and location) in order to ensure that heightened risk has not evolved that has not been captured through other factors.  The risk component of loan concentrations is regularly evaluated for reserve adequacy.

(v) Regulatory climate – Consideration is given to public statements made by the banking regulatory agencies that have a potential impact on the Bank's loan portfolio and allowance for loan losses.

(vi) Nature and volume of the portfolio – The Bank considers any significant changes in the overall nature and volume of its loan portfolio.

(vii) Changes in the quality and scope of the loan review function – The Bank considers the potential impact upon its allowance for loan losses of any adverse change in the quality and scope of the loan review function.

Consumer Loans

Due to their small individual balances, the Bank does not evaluate individual consumer loans for impairment.  Loss percentages are applied to aggregate consumer loans based upon both their delinquency status and loan type.  These loss percentages are derived from a combination of the Company's historical loss experience and/or nationally published loss data on such loans.  Consumer loans in excess of 120 days delinquent are typically fully charged off against the allowance for loan losses.

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$126	$14,374	$1,682	$2,349	$-	$18,531	$22
Provision (credit) for loan losses	19	288	92	18	-	417	(1)
Charge-offs	(6)	(1)	-	(4)	-	(11)	-
Recoveries	1	-	-	-	-	1	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21
Ending balance – loans individually evaluated for impairment	$599	$1,252	$4,365	$3,651	$-	$9,867	$-
Ending balance – loans collectively evaluated for impairment	69,019	3,566,121	376,057	469,560	-	4,480,757	1,468
Allowance balance associated with loans individually evaluated for impairment	-	-	-	-	-	-	-
Allowance balance associated with loans collectively evaluated for impairment	140	14,661	1,774	2,363	-	18,938	21
Total Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At December 31, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Ending balance – loans individually    evaluated for impairment	$605	$1,272	$4,400	$13,707	$-	$19,984	$-
Ending balance – loans collectively    evaluated for impairment	72,895	3,297,176	324,267	403,089	-	4,097,427	1,829
Allowance balance associated with loans    individually evaluated for impairment	-	-	-	19	-	19	-
Allowance balance associated with loans    collectively evaluated for impairment	150	13,852	1,644	2,804	-	18,450	24

At or for the Three Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$304	$14,319	$1,609	$3,377	$-	$19,609	$24
Provision (credit) for loan losses	(88)	(115)	198	(498)	-	(503)	2
Charge-offs	(14)	(19)	-	(22)	-	(55)	-
Recoveries	1	-	19	1	-	21	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

At or for the Nine Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$150	$13,852	$1,644	$2,823	$-	$18,469	$24
Provision (credit) for loan losses	99	848	143	(1,980)	-	(890)	(1)
Charge-offs	(113)	(42)	(37)	(5)	-	(197)	(2)
Recoveries	4	3	24	1,525	-	1,556	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At or for the Nine Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$236	$13,840	$3,003	$3,047	$3	$20,129	$24
Provision (credit) for loan losses	(118)	239	(1,508)	34	(3)	(1,356)	6
Charge-offs	(37)	(69)	(30)	(232)	-	(368)	(4)
Recoveries	122	175	361	9	-	667	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At September 30, 2015
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including  Condominium and Cooperative Apartment
With no allocated reserve	$638	$599	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,252	1,252	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,365	4,365	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	3,658	3,651	-
With an allocated reserve	-	-	-
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$9,913	$9,867	$-
With an allocated reserve	$-	$-	$-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	At December 31, 2014
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$646	$605	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,272	1,272	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,425	4,400	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	10,306	8,207	-
With an allocated reserve	5,500	5,500	19
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$16,649	$14,484	$-
With an allocated reserve	$5,500	$5,500	$19

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014
	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$601	$11	$769	$12	$602	$34	$783	$47
With an allocated reserve	-	-	-	-	-	-	52	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,074	10	2,483	16	1,123	56	2,366	72
With an allocated reserve	-	-	-	-	-	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,383	44	2,200	44	4,388	132	2,200	193
With an allocated reserve	-	-	2,200	-	-	-	2,200	-
Commercial Real Estate
With no allocated reserve	5,169	35	6,863	79	5,929	106	7,286	120
With an allocated reserve	-	-	10,259	73	1,375	97	10,272	423
Construction
With no allocated reserve	-	-	-	-	-	-	-	-
With an allocated reserve	-	-	-	-	-	-	-	-
Total
With no allocated reserve	$11,227	$100	$12,315	$151	$12,042	$328	$12,635	$432
With an allocated reserve	$-	$-	$12,459	$73	$1,375	$97	$12,524	$423

Reserve Liability for First Loss Position

The reserve liability maintained in connection with the First Loss Position was recorded as a component of other liabilities, and was estimated using a methodology similar to the allowance for loan losses, with periodic increases or decreases recognized through provisions, charge-offs or recoveries. On February 20, 2014, the Bank repurchased the remaining loans within the pool previously sold to FNMA, and extinguished both the First Loss Position and the remaining $1,040 related reserve liability.

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OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Comprehensive Income (Loss) [Abstract]
Change in unrealized loss on securities transferred to held to maturity, after tax	$ 6	$ 7	$ 31	$ 29
Tax expense (benefit)	7,092	7,788	23,004	22,496
Net income	10,081	11,765	33,388	32,259
Change in net unrealized gain during the period, tax	(79)	(24)	(64)	2
Change in net unrealized gain during the period, after tax	(97)	(30)	(77)	3
Total defined benefit plans, tax	216	117	158	351
Change in pension and other postretirement obligations, net of deferred tax expense of $216 and $117 during the three months ended September 30, 2015 and 2014, respectively and $158 and $351 during the nine months ended September 30, 2015 and 2014, respectively	262	144	190	432
Total other comprehensive income, before tax	322	227	(1,138)	862
Total other comprehensive income, tax	146	102	(512)	387
Net other comprehensive income during during the period	176	125	(626)	475
Securities Held-To-Maturity and Transferred Securities [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in non-credit component of OTTI, pre-tax	9	8	(18)	24
Change in non-credit component of OTTI, tax	4	4	(8)	13
Change in non-credit component of OTTI, after tax	5	4	(10)	11
Change in unrealized loss on securities transferred to held to maturity, pre-tax	11	12	57	50
Change in unrealized loss on securities transferred to held to maturity, tax	5	5	26	21
Change in unrealized loss on securities transferred to held to maturity, after tax	6	7	31	29
Total Securities held to maturity and transferred securities before tax	20	20	39	74
Total securities held to maturity and transferred tax	9	9	18	34
Total securities held to maturity and transferred securities, after tax	11	11	21	40
Securities Available-For-Sale [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in net unrealized gain during the period, pre-tax	(176)	(54)	(141)	5
Change in net unrealized gain during the period, tax	(79)	(24)	(64)	2
Change in net unrealized gain during the period, after tax	(97)	(30)	(77)	3
Total securities available-for-sale, pre-tax	(176)	(54)	(1,525)	5
Total securities available-for-sale, tax	(79)	(24)	(688)	2
Total securities available-for-sale, after tax	(97)	(30)	(837)	3
Securities Available-For-Sale [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Other Comprehensive Income (Loss) [Abstract]
Reclassification adjustment for net gains included in net gain on securities	0	0	(1,384)	0
Tax expense (benefit)	0	0	(624)	0
Net income	0	0	(760)	0
Defined Benefit Plans [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in the net actuarial gain or loss, pre-tax	0		(1,064)
Change in the net actuarial gain or loss, tax	0		(478)
Change in the net actuarial gain or loss, after tax	0		(586)
Total defined benefit plans, pre-tax	478	261	348	783
Total defined benefit plans, tax	216	117	158	351
Change in pension and other postretirement obligations, net of deferred tax expense of $216 and $117 during the three months ended September 30, 2015 and 2014, respectively and $158 and $351 during the nine months ended September 30, 2015 and 2014, respectively	262	144	190	432
Defined Benefit Plans [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Other Comprehensive Income (Loss) [Abstract]
Reclassification adjustment for expense included in salaries and employee benefits expense	478	261	1,412	783
Tax expense (benefit)	216	117	636	351
Net income	$ 262	$ 144	$ 776	$ 432

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NET MORTGAGE BANKING INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NET MORTGAGE BANKING INCOME [Abstract]
Gain on the sale of loans	$ 0	$ 0	$ 0	$ 27
Credit to the Liability for First Loss Position	0	0	0	1,040
Mortgage banking fees recognized	41	71	154	86
Net mortgage banking income	$ 41	$ 71	$ 154	$ 1,153

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NET MORTGAGE BANKING INCOME

9 Months Ended

Sep. 30, 2015

NET MORTGAGE BANKING INCOME [Abstract]

NET MORTGAGE BANKING INCOME

13.   INCOME TAXES

During the three months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 41.3% and 39.8%, respectively. During the nine months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 40.8% and 41.1%, respectively. A combination of additional tax strategies and recent tax law changes lowered the effective tax rate during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. There were no significant unusual income tax items recognized during the three-month or nine-month periods ended either September 30, 2015 or 2014.

14.   MORTGAGE BANKING INCOME

Net mortgage banking income presented in the condensed consolidated statements of income was comprised of the following items:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Gain on the sale of loans	$	-	$	-	$	-	$	27
Credit to the liability for First Loss Position		-		-		-		1,040
Mortgage banking fees recognized		41		71		154		86
Net mortgage banking income	$	41	$	71	$	154	$	1,153

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LOANS RECEIVABLE AND CREDIT QUALITY (Tables)

9 Months Ended

Sep. 30, 2015

LOANS RECEIVABLE AND CREDIT QUALITY [Abstract]

Financing Receivable Credit Quality Indicators

The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

	Balance at September 30, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	8,098	$	-	$	-	$	-	$	-	$	8,098
Pass		58,311		3,550,193		373,219		459,773		-		4,441,496
Special Mention		1,347		9,339		1,630		5,620		-		17,936
Substandard		1,862		7,841		5,573		7,818		-		23,094
Doubtful		-		-		-		-		-		-
Total	$	69,618	$	3,567,373	$	380,422	$	473,211	$	-	$	4,490,624

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

	Balance at December 31, 2014
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Construction		Total Real Estate Loans
Not Graded(1)	$	9,091	$	-	$	-	$	-	$	-	$	9,091
Pass		60,764		3,271,430		317,718		391,227		-		4,041,139
Special Mention		1,370		20,738		4,944		6,431		-		33,483
Substandard		2,275		6,280		6,005		19,138		-		33,698
Doubtful		-		-		-		-		-		-
Total	$	73,500	$	3,298,448	$	328,667	$	416,796	$	-	$	4,117,411

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

For consumer loans, the Company evaluates credit quality based on payment activity.  Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at September 30, 2015	Balance at December 31, 2014
Performing	$1,466	$1,825
Non-accrual	2	4
Total	$1,468	$1,829

Past Due Financing Receivables

The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At September 30, 2015
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, including  condominium and cooperative apartment	$174	$4	$630	$834	$1,642	$67,976	$69,618
Multifamily residential and residential mixed use	2,244	-	374	547	3,165	3,564,208	3,567,373
Commercial mixed use real estate	130	-	406	-	536	379,886	380,422
Commercial real estate	-	-	1,093	207	1,300	471,911	473,211
Total real estate	$2,548	$4	$2,503	$1,588	$6,643	$4,483,981	$4,490,624
Consumer	$2	$-	$-	$2	$4	$1,464	$1,468

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of September 30, 2015.

At December 31, 2014
	30 to 59 Days Past Due	60 to 89 Days Past Due	Loans 90 Days or More Past Due and Still Accruing Interest	Non-accrual (1)	Total Past Due	Current	Total Loans
Real Estate:
One- to four-family residential, includingcondominium and cooperative apartment	$240	$-	$-	$1,310	$1,550	$71,950	$73,500
Multifamily residential and residential mixed use	1,187	-	2,922	167	4,276	3,294,172	3,298,448
Commercial mixed use real estate	-	-	411	-	411	328,256	328,667
Commercial real estate	-	-	-	4,717	4,717	412,079	416,796
Total real estate	$1,427	$-	$3,333	$6,194	$10,954	$4,106,457	$4,117,411
Consumer	$2	$-	$-	$4	$6	$1,823	$1,829

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2014.

Troubled Debt Restructurings on Financing Receivables

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
One- to four-family residential, including condominium and cooperative apartment	2	$599	2	$605
Multifamily residential and residential mixed use	3	705	4	1,105
Commercial mixed use real estate	1	4,365	1	4,400
Commercial real estate	2	3,651	4	13,707
Total real estate	8	$9,320	11	$19,817

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of September 30, 2015		As of December 31, 2014
	No. of Loans	Balance	No. of Loans	Balance
Outstanding principal balance at period end	8	$9,320	11	$19,817
TDRs on accrual status at period end	7	9,113	9	15,100
TDRs on non-accrual status at period end	1	207	2	4,717

There were no loans modified in a manner that met the criteria of a TDR during the three-month and nine-month periods ended September 30, 2015.

The following table summarizes activity related to TDRs for the periods indicated:

	For the Three Months Ended September 30, 2014			For the Nine Months Ended September 30, 2014
	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment	Number of Loans	Pre-Modification Outstanding Recorded Investment	Post-Modification Outstanding Recorded Investment
Loan modifications during the period  that met the definition of a TDR:
Commercial mixed use real estate	-	-	-	1	$4,400	$4,400
Commercial real estate	1	$3,500	$3,500	1	3,500	3,500
TOTAL	1	$3,500	$3,500	2	$7,900	$7,900

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RETIREMENT AND POSTRETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended			12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014	Dec. 31, 2015
Postretirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	$ 0	$ 10	$ 9		$ 30
Defined Benefit Plan, Interest Cost	18	58	556		174
Defined Benefit Plan, Expected Return on Plan Assets	0	0	0		0
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments			(3,394)	[1]	0
Amortization of unrealized loss	(2)	0	(27)		0
Net periodic cost	16	68	(2,856)		204
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year						$ 145
Defined Benefit Plan, Contributions by Employer	25		56
BMP, Employee And Outside Director Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	0	0	0		0
Defined Benefit Plan, Interest Cost	344	338	749		1,014
Defined Benefit Plan, Expected Return on Plan Assets	(414)	(444)	(1,242)		(1,332)
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments			0		0
Amortization of unrealized loss	480	261	1,257		783
Net periodic cost	410	$ 155	764		$ 465
Employee Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year						14
Defined Benefit Plan, Contributions by Employer	7		12
BMP Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year						604
Defined Benefit Plan, Contributions by Employer	0		0
Outside Director Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year						$ 188
Defined Benefit Plan, Contributions by Employer	$ 41		$ 130

[1] (1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

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ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance for Loan Losses at Period End on Substandard Non Impaired Loans		$ 284		$ 284		$ 371
Increase (Decrease) in the balance of Substandard non-impaired loans				(4,002)
Financing Receivable Special Mention Allowance For Loan Losses period end balance		98		98		228
Financing Receivable Special Mention Balance Increase (Decrease)				(15,547)
Reserve For First Loss Position [Abstract]
Reversal of Reserve for First Loss Position					$ 1,040
Reserve Liability On The First Loss Position [Roll Forward]
Credit for losses on problem loans(1)		0	$ 0	0	1,040
One To Four Family Residential And Cooperative Unit Allowance [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		126	304	150	236
Provision (credit) for loan losses		19	(88)	99	(118)
Charge-offs		(6)	(14)	(113)	(37)
Recoveries		1	1	4	122
Ending balance		140	203	140	203
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		599		599		605
Ending balance - loans collectively evaluated for impairment		69,019		69,019		72,895
Allowance balance associated with loans individually evaluated for impairment		0		0		0
Allowance balance associated with loans collectivelly evaluated for impairment		140		140		150
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		638		638		646
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	599		599		605
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		0
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		601	769	602	783
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	0	52
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		11	12	34	47
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	0	0	0
Multifamily Residential And Residential Mixed Use Allowance [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		14,374	14,319	13,852	13,840
Provision (credit) for loan losses		288	(115)	848	239
Charge-offs		(1)	(19)	(42)	(69)
Recoveries		0	0	3	175
Ending balance		14,661	14,185	14,661	14,185
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		1,252		1,252		1,272
Ending balance - loans collectively evaluated for impairment		3,566,121		3,566,121		3,297,176
Allowance balance associated with loans individually evaluated for impairment		0		0		0
Allowance balance associated with loans collectivelly evaluated for impairment		14,661		14,661		13,852
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		1,252		1,252		1,272
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	1,252		1,252		1,272
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		0
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		1,074	2,483	1,123	2,366
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	0	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		10	16	56	72
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	0	0	0
Commercial Mixed Use Real Estate Allowance [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		1,682	1,609	1,644	3,003
Provision (credit) for loan losses		92	198	143	(1,508)
Charge-offs		0	0	(37)	(30)
Recoveries		0	19	24	361
Ending balance		1,774	1,826	1,774	1,826
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		4,365		4,365		4,400
Ending balance - loans collectively evaluated for impairment		376,057		376,057		324,267
Allowance balance associated with loans individually evaluated for impairment		0		0		0
Allowance balance associated with loans collectivelly evaluated for impairment		1,774		1,774		1,644
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		4,365		4,365		4,425
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	4,365		4,365		4,400
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		0
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		4,383	2,200	4,388	2,200
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	2,200	0	2,200
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		44	44	132	193
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	0	0	0
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		2,349	3,377	2,823	3,047
Provision (credit) for loan losses		18	(498)	(1,980)	34
Charge-offs		(4)	(22)	(5)	(232)
Recoveries		0	1	1,525	9
Ending balance		2,363	2,858	2,363	2,858
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		3,651		3,651		13,707
Ending balance - loans collectively evaluated for impairment		469,560		469,560		403,089
Allowance balance associated with loans individually evaluated for impairment		0		0		19
Allowance balance associated with loans collectivelly evaluated for impairment		2,363		2,363		2,804
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		3,658		3,658		10,306
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		5,500
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	3,651		3,651		8,207
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		5,500
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		19
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		5,169	6,863	5,929	7,286
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	10,259	1,375	10,272
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		35	79	106	120
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	73	97	423
Construction Loan Receivable [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		0	0	0	3
Provision (credit) for loan losses		0	0	0	(3)
Charge-offs		0	0	0	0
Recoveries		0	0	0	0
Ending balance		0	0	0	0
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		0		0		0
Ending balance - loans collectively evaluated for impairment		0		0		0
Allowance balance associated with loans individually evaluated for impairment		0		0		0
Allowance balance associated with loans collectivelly evaluated for impairment		0		0		0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		0		0		0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		0
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		0	0	0	0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	0	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		0	0	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	0	0	0
Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		18,531	19,609	18,469	20,129
Provision (credit) for loan losses		417	(503)	(890)	(1,356)
Charge-offs		(11)	(55)	(197)	(368)
Recoveries		1	21	1,556	667
Ending balance		18,938	19,072	18,938	19,072
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		9,867		9,867		19,984
Ending balance - loans collectively evaluated for impairment		4,480,757		4,480,757		4,097,427
Allowance balance associated with loans individually evaluated for impairment		0		0		19
Allowance balance associated with loans collectivelly evaluated for impairment		18,938		18,938		18,450
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		9,913		9,913		16,649
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0		0		5,500
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	9,867		9,867		14,484
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0		0		5,500
Impaired Financing Receivables With No Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		0
Impaired Financing Receivables With Allocated Reserves Within Allowance For Loan Losses Recognized For Impaired Receivables		0		0		19
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		11,227	12,315	12,042	12,635
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	12,459	1,375	12,524
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method		100	151	328	432
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method		0	73	97	423
Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance		22	24	24	24
Provision (credit) for loan losses		(1)	2	(1)	6
Charge-offs		0	0	(2)	(4)
Recoveries		0	0	0	0
Ending balance		21	$ 26	21	$ 26
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance - loans individually evaluated for impairment		0		0		0
Ending balance - loans collectively evaluated for impairment		1,468		1,468		1,829
Allowance balance associated with loans individually evaluated for impairment		0		0		0
Allowance balance associated with loans collectivelly evaluated for impairment		$ 21		$ 21		$ 24

[1] The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
STATEMENTS OF COMPREHENSIVE INCOME
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, taxes	$ 5	$ 5	$ 26	$ 21
Reduction in (adjustment to) non-credit component of OTTI charge, taxes	4	4	8	13
Reclassification adjustment for securities sold during the period, taxes	0	0	(624)	0
Net unrealized securities gains arising during the period, tax	(79)	(24)	(64)	2
Defined benefit plan adjustments, tax	$ 216	$ 117	$ 158	$ 351

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RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2015

RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

3.   RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08").  ASU 2014-08 changed the criteria for reporting discontinued operations and provided financial statement users additional information related to the assets, liabilities, income, and expenses of discontinued operations.  ASU 2014-08 also sought to both clarify confusion related to, and inconsistent financial reporting of, discontinued operations under existing GAAP guidance, and enhance convergence between GAAP and International Financial Reporting Standards. Under ASU 2014-08, only disposals that represent strategic shifts and have a major effect on the organization's operations and financial results are to be presented as discontinued operations.  ASU 2014-08 further requires disclosure of the pretax income attributable to the disposal of a significant part of an organization that does not meet the criteria for discontinued operations reporting, providing users information about the ongoing trends in a reporting organization's results from continuing operations. The Company adopted ASU 2014-08 effective January 1, 2015. Adoption of ASU 2014-08 did not have a material impact upon the Company's consolidated financial condition or results of operations.

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ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA (Tables)

9 Months Ended

Sep. 30, 2015

ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR FIRST LOSS POSITION ON MULTIFAMILY LOANS SOLD TO FNMA [Abstract]

Allowance For Credit Losses For Impairment By Financing Receivables Class

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$126	$14,374	$1,682	$2,349	$-	$18,531	$22
Provision (credit) for loan losses	19	288	92	18	-	417	(1)
Charge-offs	(6)	(1)	-	(4)	-	(11)	-
Recoveries	1	-	-	-	-	1	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21
Ending balance – loans individually evaluated for impairment	$599	$1,252	$4,365	$3,651	$-	$9,867	$-
Ending balance – loans collectively evaluated for impairment	69,019	3,566,121	376,057	469,560	-	4,480,757	1,468
Allowance balance associated with loans individually evaluated for impairment	-	-	-	-	-	-	-
Allowance balance associated with loans collectively evaluated for impairment	140	14,661	1,774	2,363	-	18,938	21
Total Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At December 31, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Ending balance – loans individually    evaluated for impairment	$605	$1,272	$4,400	$13,707	$-	$19,984	$-
Ending balance – loans collectively    evaluated for impairment	72,895	3,297,176	324,267	403,089	-	4,097,427	1,829
Allowance balance associated with loans    individually evaluated for impairment	-	-	-	19	-	19	-
Allowance balance associated with loans    collectively evaluated for impairment	150	13,852	1,644	2,804	-	18,450	24

At or for the Three Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$304	$14,319	$1,609	$3,377	$-	$19,609	$24
Provision (credit) for loan losses	(88)	(115)	198	(498)	-	(503)	2
Charge-offs	(14)	(19)	-	(22)	-	(55)	-
Recoveries	1	-	19	1	-	21	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

At or for the Nine Months Ended September 30, 2015
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$150	$13,852	$1,644	$2,823	$-	$18,469	$24
Provision (credit) for loan losses	99	848	143	(1,980)	-	(890)	(1)
Charge-offs	(113)	(42)	(37)	(5)	-	(197)	(2)
Recoveries	4	3	24	1,525	-	1,556	-
Ending balance	$140	$14,661	$1,774	$2,363	$-	$18,938	$21

At or for the Nine Months Ended September 30, 2014
	Real Estate Loans						Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment	Multifamily Residential and Residential Mixed Use	Commercial Mixed Use Real Estate	Commercial Real Estate	Construction	Total Real Estate
Beginning balance	$236	$13,840	$3,003	$3,047	$3	$20,129	$24
Provision (credit) for loan losses	(118)	239	(1,508)	34	(3)	(1,356)	6
Charge-offs	(37)	(69)	(30)	(232)	-	(368)	(4)
Recoveries	122	175	361	9	-	667	-
Ending balance	$203	$14,185	$1,826	$2,858	$-	$19,072	$26

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At September 30, 2015
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including  Condominium and Cooperative Apartment
With no allocated reserve	$638	$599	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,252	1,252	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,365	4,365	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	3,658	3,651	-
With an allocated reserve	-	-	-
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$9,913	$9,867	$-
With an allocated reserve	$-	$-	$-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	At December 31, 2014
	Unpaid Principal Balance at Period End	Recorded Investment at Period End(1)	Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$646	$605	$-
With an allocated reserve	-	-	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,272	1,272	-
With an allocated reserve	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,425	4,400	-
With an allocated reserve	-	-	-
Commercial Real Estate
With no allocated reserve	10,306	8,207	-
With an allocated reserve	5,500	5,500	19
Construction
With no allocated reserve	-	-	-
With an allocated reserve	-	-	-
Total
With no allocated reserve	$16,649	$14,484	$-
With an allocated reserve	$5,500	$5,500	$19

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014
	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$601	$11	$769	$12	$602	$34	$783	$47
With an allocated reserve	-	-	-	-	-	-	52	-
Multifamily Residential and Residential Mixed Use
With no allocated reserve	1,074	10	2,483	16	1,123	56	2,366	72
With an allocated reserve	-	-	-	-	-	-	-	-
Commercial Mixed Use Real Estate
With no allocated reserve	4,383	44	2,200	44	4,388	132	2,200	193
With an allocated reserve	-	-	2,200	-	-	-	2,200	-
Commercial Real Estate
With no allocated reserve	5,169	35	6,863	79	5,929	106	7,286	120
With an allocated reserve	-	-	10,259	73	1,375	97	10,272	423
Construction
With no allocated reserve	-	-	-	-	-	-	-	-
With an allocated reserve	-	-	-	-	-	-	-	-
Total
With no allocated reserve	$11,227	$100	$12,315	$151	$12,042	$328	$12,635	$432
With an allocated reserve	$-	$-	$12,459	$73	$1,375	$97	$12,524	$423

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LOANS RECEIVABLE AND CREDIT QUALITY, Credit Quality Indicators (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
One-to four Family Residential and Cooperative Unit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	$ 8,098	$ 9,091
Financing Receivable, Net		69,618	73,500
Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	0	0
Financing Receivable, Net		3,567,373	3,298,448
Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	0	0
Financing Receivable, Net		380,422	328,667
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	0	0
Financing Receivable, Net		473,211	416,796
Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	0	0
Financing Receivable, Net		0	0
Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		1,468	1,829
Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating	[1]	8,098	9,091
Financing Receivable, Net		4,490,624	4,117,411
Pass [Member] | One-to four Family Residential and Cooperative Unit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		58,311	60,764
Pass [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		3,550,193	3,271,430
Pass [Member] | Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		373,219	317,718
Pass [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		459,773	391,227
Pass [Member] | Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		0	0
Pass [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		1,466	1,825
Pass [Member] | Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		4,441,496	4,041,139
Special Mention [Member] | One-to four Family Residential and Cooperative Unit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		1,347	1,370
Special Mention [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		9,339	20,738
Special Mention [Member] | Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		1,630	4,944
Special Mention [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		5,620	6,431
Special Mention [Member] | Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Special Mention [Member] | Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		17,936	33,483
Substandard [Member] | One-to four Family Residential and Cooperative Unit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		1,862	2,275
Substandard [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		7,841	6,280
Substandard [Member] | Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		5,573	6,005
Substandard [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		7,818	19,138
Substandard [Member] | Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Substandard [Member] | Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		23,094	33,698
Doubtful [Member] | One-to four Family Residential and Cooperative Unit [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Doubtful [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Doubtful [Member] | Mixed Use Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Doubtful [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Doubtful [Member] | Construction Loan Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Doubtful [Member] | Total Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Individually Assigned Credit Rating		0	0
Non Accrual Financing Receivable [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Not Individually Assigned Credit Rating		$ 2	$ 4

[1] Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

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INCOME TAXES

9 Months Ended

Sep. 30, 2015

INCOME TAXES [Abstract]

INCOME TAXES

13.   INCOME TAXES

During the three months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 41.3% and 39.8%, respectively. During the nine months ended September 30, 2015 and 2014, the Company's consolidated effective tax rates were 40.8% and 41.1%, respectively. A combination of additional tax strategies and recent tax law changes lowered the effective tax rate during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. There were no significant unusual income tax items recognized during the three-month or nine-month periods ended either September 30, 2015 or 2014.