SOURCE: Dime Community Bancshares, Inc.

April 26, 2005 16:15 ET

1996 Stock Option Grant Set to Expire in 2006

BROOKLYN, NY -- (MARKET WIRE) -- April 26, 2005 -- Dime Community Bancshares, Inc. (NASDAQ: DCOM), the "Company", parent company of The Dime Savings Bank of Williamsburgh, today announced that 416,415 in-the-money options remain unexercised under its expiring 1996 Stock Option Grant. All unexercised options granted in December 1996 under the 1996 Stock Option Plan are scheduled to expire in December 2006.

Since the Company's initial public offering in 1996, its share price has appreciated in excess of 377%. Total shareholder return has exceeded 393%, which includes three 3-for-2 stock splits, and fifteen increases in the quarterly cash dividend. In light of this significant increase in the value of the Company's shares over the period, the Company expects that all of the stock options scheduled to expire on December 26, 2006, will be exercised prior to their expiration date.

At this time, the three largest holders of unexercised options remaining under this grant are Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, who holds 100,000 options, Joseph H. Farrell, member of the Company's Board of Directors, 100,000 options, and Anthony Bergamo, member of the Company's Board of Directors, 53,902 options.

For personal reasons, such as funding the option exercise price and income tax payments, or diversification of assets as part of personal financial planning, it is anticipated that the option holders may sell, rather than hold, shares acquired in connection with their option exercises.

In August 2003, the Board of Directors of the Company approved a resolution establishing minimum stock ownership guidelines for Executive Officers and Directors. It was established that each Executive Officer or Director must hold a minimum of 50% of the shares of common stock awarded to them in December 1996.

Company insiders, which include Directors and Executive Officers, held or controlled 16.4% of the outstanding shares, inclusive of vested stock options, of the Company as of its most recent Proxy Statement dated April 18, 2005. This included the beneficial ownership of approximately 3.0% of the Company's outstanding common stock held by Vincent F. Palagiano, and approximately 1.6% held by Michael P. Devine, President and Chief Operating Officer.

ABOUT DIME COMMUNITY BANCSHARES

Dime Community Bancshares, Inc., a unitary thrift holding company, is the parent company of The Dime Savings Bank of Williamsburgh, Brooklyn, New York, founded in 1864. With $3.37 billion in assets as of March 31, 2005, the Bank has twenty branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Bank can be found on the Bank's Internet website at www.dsbwdirect.com.

Statements made herein that are forward looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to overall business conditions and market interest rates, particularly in the markets in which the Company operates, fiscal and monetary policy, changes in regulations affecting financial institutions and other risks and uncertainties discussed in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to publicly announce future events or developments, which may affect the forward-looking statements herein.

Contact Information

  • Contact:
    Kenneth J. Mahon
    Exec. VP and Chief Financial Officer
    718-782-6200 extension 8265

    Stephanie Prince
    Director of Corporate Marketing
    718-782-6200 extension 8250