Dime Community Bancshares Reports Earnings for the Quarter Ended March 31, 2011

BROOKLYN, NY, Apr 27 (MARKET WIRE) --
Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or "Dime"),
the parent company of The Dime Savings Bank of Williamsburgh (the
"Bank"), today reported consolidated net income of $11.1 million, or 33
cents per diluted share, for the quarter ended March 31, 2011, compared
to $10.6 million, or 31 cents per diluted share, for the quarter ended
December 31, 2010, and $9.5 million, or 28 cents per diluted share, for
the quarter ended March 31, 2010.

Vincent F. Palagiano, Chairman and CEO, commented, "The earnings and
credit trendlines continue to improve into the current year, with no clear
indication yet of when short term rates may rise. Net interest margin
remains near cyclical highs for the bank. The refinance market for
multifamily properties continues to gather momentum. We see plenty of
opportunity in this market for the next two to three years, as loans that
were originated in 2003 through 2006 continue to reach their contractual
repricing date, but we remain cautious not to inflate the balance sheet at
what we view as a cyclical low point for interest rates. It is a favorable
environment for multifamily owners to refinance, as offering rates on
multifamily loans remain at historically low levels. On the retail side,
we were very pleased to open our 26th branch with a superb location at the
heavily trafficked corner of 86th Street and Fourth Avenue in Bay Ridge,
Brooklyn, our tenth Brooklyn location. If the boroughs of New York City
were separate cities, Brooklyn would be the third largest city in the
United States after Los Angeles and Chicago."

OPERATING RESULTS FOR THE QUARTER ENDED MARCH 31, 2011

Net Interest Income

Net interest income increased $2.3 million, or 7.0%, from the March 2010
quarter, and was virtually unchanged (0.3% lower) on a linked quarter
basis. Net interest margin fell 9 basis points to 3.62% during the quarter
ended March 31, 2011 from 3.71% in the December 2010 quarter, due to the
following: 1) the yield on interest earning assets declined 16 basis
points, reflecting lower yields on new loans; and 2) a temporary
accumulation of $86 million in cash balances earning approximately 25
basis points. The additional liquidity resulted primarily from $52.1
million of deposit inflows from a combination of seasonal and new branch
promotional activities. This excess liquidity is expected to be deployed
between now and August 31, 2011, however, it will slightly depress the
net interest margin until that time.

The decline in portfolio yield was offset by prepayment fee income, which
contributed meaningfully to net interest margin this quarter. Prepayment
and late fee income together rose significantly to $1.5 million in
aggregate during the March 2011 quarter, from $879,000 in aggregate during
the December 2010 quarter. The combined prepayment and late charge income
levels experienced in both the March 2011 and December 2010 quarters were
significantly higher than those experienced in the March 2010 quarter,
during which they approximated $301,000 in aggregate, primarily reflecting
increased marketplace refinance activity.

Average earning assets grew by $82.5 million during the quarter, however,
did not generate sufficient interest income to offset the lower yields on
interest earning assets. Yields on new real estate loans during the
quarter averaged 4.64%, while the average real estate loan portfolio yield
was 5.84%.

Although rates on new multifamily loans are lower than Dime's existing
portfolio rates and near historical lows, their spread to 5- and 10-year
Treasury bonds [and Federal Home Loan Bank of New York ("FHLBNY")
advances] still remains favorable. As a result, origination levels during
the remaining quarters of 2011 will likely approximate the March 2011
quarterly volume, as liquid funds are more profitably deployed. It
typically takes several quarters for changes in new loan origination
rates (either higher or lower) to have an impact on the portfolio rate.
The direction and magnitude of the change in the loan portfolio yield
over the next several quarters will be impacted by the loan refinancing
volume from within the existing portfolio, additional growth in the loan
portfolio at these interest rate levels and the level of prepayment fee
income. The loan amortization rate experienced in the March 2011 quarter
was 19% on an annualized basis, running slightly ahead of management's
2011 annual forecast of 14%.

On the funding side, the average cost of interest bearing liabilities
declined by 3 basis points quarter-over-quarter, due to reductions of 11
basis points and 2 basis points in the average costs of borrowed funds and
deposits, respectively. Lower rates on new certificates of deposit ("CDs")
combined with an additional $4.7 million of average non-interest bearing
checking balances were the primary reason for the deposit cost decrease,
as higher-rate maturing CDs priced down to today's levels. The average
cost of CDs declined 4 basis points from the December 2010 quarter to the
March 2011 quarter. The $4.7 million growth in the average balance of
non-interest bearing deposits reflected the ongoing success of the Bank's
commercial deposit gathering efforts. Despite the decline in rate
offerings on new deposits, total deposit balances increased by 2.2% during
the most recent quarter.

Interest Rate Risk

Management sees significant risk of increased funding costs over the
3-year planning horizon. For that reason, the Company continues to take
meaningful steps to lengthen the duration of liabilities to more closely
match the repricing duration of its primary investment, the 5-year
repricing multifamily loan. During the March 2011 quarter, the Company
modified $50.0 million of existing putable FHLBNY advances, representing
approximately 5% of total outstanding FHLBNY advances, bringing the
cumulative amount of short-term, putable advances modified since the
beginning of the 4th quarter of 2010 to $110 million. The favorable
interest rate environment enabled the Company to lengthen the repricing
term of these liabilities and simultaneously lower their cost. The
modifications completed in the current quarter resulted in a 32 basis
point reduction in their weighted average cost to 3.58%, as well as a
2.4-year extension in their weighted average term to maturity. The
maturity of this pool of borrowings moves to the first quarter of 2015.
The result was a decline of 11 basis points in average borrowing costs
during the quarter ended March 31, 2011. As a result of these
modifications, the aggregate level of remaining putable borrowings has
declined to 13.7% of total liabilities at March 31, 2011.

Provision/Allowance For Loan Losses

At March 31, 2011, the allowance for loan losses ("ALL") as a percentage
of total loans stood at 0.57%, an increase of 2 basis points from 0.55%
at the end of the prior quarter. The Bank charged off all losses deemed
probable to occur on problem loans during the March 2011 quarter,
recognizing approximately $980,000 of such charge-offs against the ALL
during the quarter. The Bank recorded a $1.4 million provision to its ALL
during the March 2011 quarter, compared to $3.3 million recorded in the
December 2010 quarter. This decline reflected the stabilization of credit
conditions and lower levels of new problem loans. The allowance
represented 102% of non-performing loans at March 31, 2011, up from 95%
at December 31, 2010.

Non-Interest Income

Non-interest income was $1.9 million for the quarter ended March 31, 2011,
a reduction of $110,000 from the previous quarter. The $110,000 reduction
resulted from a decline of $185,000 in the net gain or loss on loan sales,
coupled with slightly lower fee income. These were partially offset by
reduction in pre-tax OTTI charges of $100,000 recognized on the Bank's
portfolio of pooled bank trust preferred securities.

Non-Interest Expense

Non-interest expense increased $1.3 million from the previous quarter,
reflecting the following: 1) ongoing salary and benefits increases,
including additional expenses associated with the Company's Benefit
Maintenance Plan; 2) the acceleration of depreciation on some leasehold
fixed assets; 3) higher deposit insurance costs in a transitional quarter
between Federal Deposit Insurance Corporation ("FDIC") recapitalization
plans; and 4) increased marketing costs compared to the December 2010
quarter for seasonal factors.

Non-interest expense was 1.65% of average assets during the most recent
quarter, resulting in an efficiency ratio of 45.6%.

Income Tax Expense

The effective tax rate was 40.6% during the March 2011 quarter, slightly
above the 40% expected rate. During the December 2010 quarter, the
effective tax rate approximated 42.3% as a result of year-end
reconciliation of the full year expected tax obligation. The Company's
consolidated effective tax rate is expected to approximate 40%.

BALANCE SHEET

Total assets increased $102.4 million, to $4.14 billion at March 31, 2011.
The growth in assets was concentrated in cash and due from banks and
investment securities available for sale (primarily agency obligations).
The funding for the balance sheet growth was obtained primarily from
deposits and seasonal mortgagor escrow flows, which grew by $52.1 million
and $40.3 million, respectively, during the most recent quarter.

Real Estate Loans

Real estate loans (excluding loans held for sale) declined $12.9 million
during the most recent quarter due to higher than anticipated
amortization. The market rate on new multifamily loans is near historical
lows, therefore, the Bank has taken a more measured approach to
originating new loans. Real estate loan originations were $157.2 million
during the most recent quarter at an average rate of 4.64%. Loan
amortization, excluding the disposition of problem loans, totaled $168.1
million, or 19% annualized of the average portfolio balance. The average
rate on amortized or satisfied loan balances was 5.69%.

The loan pipeline stood at $121.8 million at March 31, 2011, with a
weighted average rate of 4.98%. Yields on new loan commitments remain low,
primarily driven by low Treasury yields and aggressive competition for
multifamily loans in the New York City market. Dime will continue to be
cautious about growing the loan portfolio at the current yields,
reflecting management's expectations that interest rates will rise from
their historically low levels as the overall economy continues to improve.

Problem Loans

Non-accrual loans were $19.2 million, or 0.56% of total loans, at March
31, 2011, a slight reduction from $20.2 million, or 0.58% of loans, at
December 31, 2010.

Loans delinquent between 30 and 89 days also declined to $12.1 million, or
0.35% of loans, at March 31, 2011, compared to $21.5 million, or 0.62% of
loans at December 31, 2010. This decline reflected both a continued
stabilization in the multifamily residential marketplace and the
correction of a seasonal spike in delinquencies that occurred during the
December 2010 quarter.

As shown on page 13 of this release, the sum of non-performing assets and
accruing loans past due 90 days or more represented 6.7% of tangible
capital plus the ALL at March 31, 2011.

Within the remaining $361.0 million pool of loans sold to Fannie Mae with
recourse exposure, total delinquencies remained negligible, declining from
$3.7 million at December 31, 2010 to $1.4 million at March 31, 2011. The
$1.4 million delinquent balance at March 31, 2011 was composed of one loan
that was fully satisfied in April 2011, with all principal and interest
arrears received.

Deposits and Borrowed Funds

Deposits increased $52.1 million during the most recent quarter, led by
growth of $29.4 million in promotional CDs and $22.7 million in core
(non-CD deposits). The Bank's deposit strategy during the March 2011
quarter reflected both individual retirement account ("IRA") and new
branch deposit promotional activities, all of which were ultimately aimed
at growing stable relationship balances. IRA balances increased 19% during
the March 2011 quarter as a result of their promotional activities.
Non-interest bearing checking balances grew $9.9 million during the March
2011 quarter, reflecting a combination of ongoing success in commercial
deposit gathering activities and seasonal inflows.

At March 31, 2011, average deposits in branches open in excess of one year
approximated $94.3 million, and core deposits comprised 55% of total
deposits. Dime currently expects to continue its measured de novo
strategy. Late in the first quarter of 2011, Dime opened its 26th retail
banking office, located on 86th Street in Bay Ridge, Brooklyn.

Since deposits provided sufficient funding during the most recent quarter,
management did not add any new wholesale borrowings during the period,
instead focusing efforts on restructuring its existing portfolio. As a
result, the weighted average maturity of $50 million of existing
borrowings was extended by an average of 2.4 years, with all associated
put options fully eliminated. Their weighted average cost was also
reduced by 32 basis points.

Tangible Capital

Dime continues to grow tangible capital through retained earnings, as
reported earnings per share exceeded the quarterly cash dividend rate per
share by 136% during the most recent quarter. Tangible book value per
share increased $0.22 during the most recent quarter to $8.29 at March 31,
2011. This growth was fueled by a return of approximately 15.6% on average
tangible equity during the most recent quarter.

Dime's consolidated tangible capital was 7.04% of tangible assets at March
31, 2011, up 3 basis points from December 31, 2010. The Bank's tangible
capital ratio was 8.21% at March 31, 2011, and its total risk-based
capital approximated 12.28%.

OUTLOOK FOR THE QUARTER ENDING JUNE 30, 2011

The average cost of deposits decreased to 1.16% during the March 2011
quarter from 1.18% during the December 2010 quarter, as Dime continued to
take advantage of historically low short-term interest rates. Deposit
funding costs should remain near this historically low level at least
through the second quarter of 2011.

Amortization rates (including prepayments and loan refinancing activity),
which approximated 19.5% on an annualized basis during the most recent
quarter, are expected to remain in this area during the second quarter of
2011, up from the full year 2010 levels, reflecting the current low
interest rate environment. Loans expected to mature or reprice during the
remainder of the year ending December 31, 2011 total $347.0 million, at an
average rate of 5.69%. Of this total, $169.6 million at an average rate of
5.66% are expected to mature or reprice during the June 2011 quarter.

At March 31, 2011, the loan commitment pipeline was approximately $121.8
million, comprised primarily of multifamily residential loans, with an
approximate weighted average rate of 4.98%.

On the liability side of the balance sheet, the Bank has $583.9 million of
CD's maturing during the remainder of 2011 at an average cost of 1.48%. Of
this total, $222.0 million are maturing during the June 2011 quarter, at
an average cost of 1.61%. Rates on CDs originated during the month ended
March 31, 2011 approximated 1.50%. In addition, $105.8 million of FHLBNY
advances with an average cost of 3.68% are scheduled to mature or reprice
during the remainder of 2011, of which $50.8 million with an average cost
of 4.11% are scheduled to mature during the June 2011 quarter. Replacement
rates on new FHLBNY advances range from 2.00% to 2.75% for 4- to 5-year
maturities, however, if the Company's consolidated cash liquidity remains
near its March 31, 2011 level, it is likely that a portion of these
maturing borrowings will not be replaced.

Operating expenses for the June 2011 quarter are expected to approximate
$15.0 million, which is the estimated quarterly run rate for the remainder
of 2011, and reflects expected reductions in the Company's deposit
insurance costs resulting from the revised FDIC recapitalization plan
scheduled to commence in the June 2011 quarter.

Quarterly loan loss provisions were $1.4 million during the March 2011
quarter, $3.3 million during the December 2010 quarter, $667,000 during
the September 2010 quarter, and $3.8 million during the June 2010
quarter. If current trends hold for delinquent and troubled loans,
management expects loan loss provisioning to continue to decline somewhat
on a year-over-year basis.

ABOUT DIME COMMUNITY BANCSHARES

The Company (NASDAQ: DCOM) had $4.14 billion in consolidated assets as of
March 31, 2011, and is the parent company of the Bank. The Bank was
founded in 1864, is headquartered in Brooklyn, New York, and currently has
twenty-six branches located throughout Brooklyn, Queens, the Bronx and
Nassau County, New York. More information on the Company and Dime can be
found on the Dime's Internet website at www.dime.com.

This News Release 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,"
"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 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 are 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 results to
differ materially from future results 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; changes in the interest rate environment may
reduce interest margins; changes in deposit flows, loan demand or real
estate values may adversely affect the business of Dime; 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
financial condition or results of operations; 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; or 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.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)

March 31, December 31,
2011 2010
------------ ------------
ASSETS:
Cash and due from banks $ 171,745 $ 86,193
Investment securities held to maturity 7,192 6,641
Investment securities available for sale 133,641 85,642
Trading securities 1,541 1,490
Mortgage-backed securities available for sale 128,732 144,518
Federal funds sold and other short-term
investments 4,461 4,536
Real Estate Loans:
One-to-four family and cooperative apartment 110,024 116,886
Multifamily and underlying cooperative (1) 2,507,570 2,497,339
Commercial real estate (1) 818,837 833,314
Construction and land acquisition 13,475 15,238
Unearned discounts and net deferred loan
fees 4,811 5,013
------------ ------------
Total real estate loans 3,454,717 3,467,790
------------ ------------
Other loans 2,070 2,394
Allowance for loan losses (19,663) (19,166)
------------ ------------
Total loans, net 3,437,124 3,451,018
------------ ------------
Loans held for sale 1,721 3,308
Premises and fixed assets, net 32,381 31,613
Federal Home Loan Bank of New York capital
stock 51,718 51,718
Other real estate owned, net - -
Goodwill 55,638 55,638
Other assets 116,816 117,980
------------ ------------
TOTAL ASSETS $ 4,142,710 $ 4,040,295
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 135,661 $ 125,730
Interest Bearing Checking 104,929 108,078
Savings 337,509 329,182
Money Market 735,557 727,939
------------ ------------
Sub-total 1,313,656 1,290,929
------------ ------------
Certificates of deposit 1,089,029 1,059,652
------------ ------------
Total Due to Depositors 2,402,685 2,350,581
------------ ------------
Escrow and other deposits 108,865 68,542
Securities sold under agreements to repurchase 195,000 195,000
Federal Home Loan Bank of New York advances 990,525 990,525
Subordinated Notes Sold - -
Trust Preferred Notes Payable 70,680 70,680
Other liabilities 37,933 36,233
------------ ------------
TOTAL LIABILITIES 3,805,688 3,711,561
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 51,309,559 shares and 51,219,609
shares issued at March 31, 2011 and
December 31, 2010, respectively, and 34,683,130
shares and 34,593,180 shares outstanding at
March 31, 2011 and December 31, 2010,
respectively) 513 512
Additional paid-in capital 227,061 225,585
Retained earnings 336,060 329,668
Unallocated common stock of Employee Stock
Ownership Plan (3,412) (3,470)
Unearned common stock of Restricted Stock
Awards (2,376) (2,684)
Common stock held by the Benefit Maintenance
Plan (7,979) (7,979)
Treasury stock (16,626,429 shares and
16,626,429 shares at March 31, 2011,
and December 31, 2010, respectively) (206,546) (206,546)
Accumulated other comprehensive loss, net (6,299) (6,352)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 337,022 328,734
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,142,710 $ 4,040,295
============ ============

(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)

For the Three Months Ended
----------------------------------
December
March 31, 31, March 31,
2011 2010 2010
---------- ---------- ----------
Interest income:
Loans secured by real estate $ 50,629 $ 50,752 $ 50,122
Other loans 26 26 39
Mortgage-backed securities 1,452 1,621 2,271
Investment securities 316 268 407
Federal funds sold and other
short-term investments 772 857 742
---------- ---------- ----------
Total interest income 53,195 53,524 53,581
---------- ---------- ----------
Interest expense:
Deposits and escrow 6,785 7,005 7,593
Borrowed funds 11,367 11,385 13,222
---------- ---------- ----------
Total interest expense 18,152 18,390 20,815
---------- ---------- ----------
Net interest income 35,043 35,134 32,766
Provision for loan losses 1,426 3,262 3,447
---------- ---------- ----------
Net interest income after
provision for loan losses 33,617 31,872 29,319
---------- ---------- ----------

Non-interest income:
Service charges and other fees 763 748 936
Mortgage banking income (loss),
net 93 240 211
Other than temporary impairment
("OTTI") charge on securities (1) (63) (163) (166)
Gain (loss) on sale of other real
estate owned and other assets - 9 327
Gain (loss) on trading securities 46 46 242
Other 1,071 1,140 960
---------- ---------- ----------
Total non-interest income
(loss) 1,910 2,020 2,510
---------- ---------- ----------
Non-interest expense:
Compensation and benefits 9,727 9,300 8,886
Occupancy and equipment 2,689 2,276 2,258
Other 4,444 4,026 4,548
---------- ---------- ----------
Total non-interest expense 16,860 15,602 15,692
---------- ---------- ----------

Income before taxes 18,667 18,290 16,137
Income tax expense 7,587 7,730 6,667
---------- ---------- ----------

Net Income $ 11,080 $ 10,560 $ 9,470
========== ========== ==========

Earnings per Share:
Basic $ 0.33 $ 0.32 $ 0.29
========== ========== ==========
Diluted $ 0.33 $ 0.31 $ 0.28
========== ========== ==========

Average common shares outstanding
for Diluted EPS 33,725,726 33,538,319 33,249,082

(1) Total OTTI charges on securities were $216 during the three months
ended March 31, 2010. The non-credit component of OTTI was $50 during
the three months ended March 31, 2010. There were no non-credit OTTI
charges recognized during the three months ended March 31, 2011 and
December 31, 2010, respectively.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)

For the Three Months Ended
-------------------------------------
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.33 $ 0.31 $ 0.28
Return on Average Assets 1.08% 1.05% 0.94%
Return on Average Stockholders'
Equity 13.31% 12.94% 12.59%
Return on Average Tangible
Stockholders' Equity 15.63% 15.29% 15.17%
Net Interest Spread 3.38% 3.51% 3.23%
Net Interest Margin 3.62% 3.71% 3.46%
Non-interest Expense to Average
Assets 1.65% 1.55% 1.56%
Efficiency Ratio 45.60% 41.87% 45.00%
Effective Tax Rate 40.64% 42.26% 41.31%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 9.72 $ 9.50 $ 8.97
Tangible Book Value Per Share 8.29 8.07 7.49
Average Balance Data:
Average Assets $ 4,089,222 $ 4,016,457 $ 4,015,428
Average Interest Earning Assets 3,872,270 3,789,755 3,790,014
Average Stockholders' Equity 332,946 326,529 300,874
Average Tangible Stockholders'
Equity 283,473 276,184 249,781
Average Loans 3,470,051 3,454,730 3,447,529
Average Deposits 2,368,300 2,353,411 2,247,985
Asset Quality Summary:
Net charge-offs $ 980 $ 1,211 $ 769
Non-accrual Loans 19,200 20,168 29,520
Nonperforming Loans/ Total Loans 0.56% 0.58% 0.85%
Nonperforming Assets (1) 19,770 20,732 30,936
Nonperforming Assets/Total Assets 0.48% 0.51% 0.75%
Allowance for Loan Loss/Total Loans 0.57% 0.55% 0.71%
Allowance for Loan
Loss/Nonperforming Loans 102.41% 95.03% 83.40%
Loans Delinquent 30 to 89 Days at
period end $ 12,103 $ 21,483 $ 19,688
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period
end 7.04% 7.01% 6.35%
Tangible Capital Ratio (Bank Only) 8.21% 8.22% 7.77%
Leverage Capital Ratio (Bank Only) 8.21% 8.22% 7.77%
Risk Based Capital Ratio (Bank Only) 12.28% 11.95% 11.79%

(1) Amount comprised of total non-accrual loans, other real estate owned
and the recorded balance of two pooled bank trust preferred security
investments for which the Bank has not received any contractual
payments of interest or principal in over 90 days.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)

For the Three Months Ended
-----------------------------------
March 31, 2011
-----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,468,902 $ 50,629 5.84%
Other loans 1,149 26 9.05
Mortgage-backed securities 129,635 1,452 4.48
Investment securities 134,299 316 0.94
Other short-term investments 138,285 772 2.23
----------- ---------- ----------
Total interest earning assets 3,872,270 $ 53,195 5.49%
----------- ----------
Non-interest earning assets 216,952
-----------
Total assets $ 4,089,222
===========

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 99,305 $ 110 0.45%
Money Market accounts 732,274 1,258 0.70
Savings accounts 333,129 193 0.23
Certificates of deposit 1,068,006 5,224 1.98
----------- ---------- ----------
Total interest bearing
deposits 2,232,714 6,785 1.23
Borrowed Funds 1,256,205 11,367 3.67
----------- ---------- ----------
Total interest-bearing
liabilities 3,488,919 $ 18,152 2.11%
----------- ---------- ----------
Non-interest bearing checking
accounts 135,586
Other non-interest-bearing
liabilities 131,771
-----------
Total liabilities 3,756,276
Stockholders' equity 332,946
-----------
Total liabilities and stockholders'
equity $ 4,089,222
===========
Net interest income $ 35,043
==========
Net interest spread 3.38%
==========
Net interest-earning assets $ 383,351
===========
Net interest margin 3.62%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.99%
==========

Deposits (including non-interest
bearing checking accounts) $ 2,368,300 $ 6,785 1.16%

Interest earning assets (excluding
prepayment and other fees) 5.56%

For the Three Months Ended
----------------------------------
December 31, 2010
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,453,522 $ 50,752 5.88%
Other loans 1,208 26 8.61
Mortgage-backed securities 148,032 1,621 4.38
Investment securities 82,288 268 1.30
Other short-term investments 104,705 857 3.27
----------- ---------- ----------
Total interest earning assets 3,789,755 $ 53,524 5.65%
----------- ----------
Non-interest earning assets 226,702
-----------
Total assets $ 4,016,457
===========

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 99,464 $ 129 0.51%
Money Market accounts 727,566 1,202 0.66
Savings accounts 321,825 206 0.25
Certificates of deposit 1,073,640 5,468 2.02
----------- ---------- ----------
Total interest bearing
deposits 2,222,495 7,005 1.25
Borrowed Funds 1,194,118 11,385 3.78
----------- ---------- ----------
Total interest-bearing
liabilities 3,416,613 $ 18,390 2.14%
----------- ---------- ----------
Non-interest bearing checking
accounts 130,916
Other non-interest-bearing
liabilities 142,399
-----------
Total liabilities 3,689,928
Stockholders' equity 326,529
-----------
Total liabilities and stockholders'
equity $ 4,016,457
===========
Net interest income $ 35,134
==========
Net interest spread 3.51%
==========
Net interest-earning assets $ 373,142
===========
Net interest margin 3.71%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.92%
==========

Deposits (including non-interest
bearing checking accounts) $ 2,353,411 $ 7,005 1.18%

Interest earning assets (excluding
prepayment and other fees) 5.56%

For the Three Months Ended
----------------------------------
March 31, 2010
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,446,103 $ 50,122 5.82%
Other loans 1,426 39 10.94
Mortgage-backed securities 206,466 2,271 4.40
Investment securities 57,159 407 2.85
Other short-term investments 78,860 742 3.76
----------- ---------- ----------
Total interest earning assets 3,790,014 $ 53,581 5.65%
----------- ----------
Non-interest earning assets 225,414
-----------
Total assets $ 4,015,428
===========

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 104,117 $ 182 0.71%
Money Market accounts 716,696 1,710 0.97
Savings accounts 302,151 200 0.27
Certificates of deposit 1,015,951 5,501 2.20
----------- ---------- ----------
Total interest bearing
deposits 2,138,915 7,593 1.44
Borrowed Funds 1,344,911 13,222 3.99
----------- ---------- ----------
Total interest-bearing
liabilities 3,483,826 $ 20,815 2.42%
----------- ---------- ----------
Non-interest bearing checking
accounts 109,070
Other non-interest-bearing
liabilities 121,658
-----------
Total liabilities 3,714,554
Stockholders' equity 300,874
-----------
Total liabilities and stockholders'
equity $ 4,015,428
===========
Net interest income $ 32,766
==========
Net interest spread 3.23%
==========
Net interest-earning assets $ 306,188
===========
Net interest margin 3.46%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 108.79%
==========

Deposits (including non-interest
bearing checking accounts) $ 2,247,985 $ 7,593 1.37%

Interest earning assets (excluding
prepayment and other fees) 5.62%

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)

At March 31, At December 31, At March 31,
Non-Performing Loans 2011 2010 2010
----------- ----------- ------------
One- to four-family and
cooperative apartment $ 62 $ 223 $ 705
Multifamily residential and
mixed use (1) 5,451 8,654 24,099
Commercial real estate (1) 13,667 11,274 4,694
Other 20 17 22
----------- ----------- ------------
Total Non-Performing Loans (2) $ 19,200 $ 20,168 $ 29,520
----------- ----------- ------------
Other Non-Performing Assets
Other real estate owned (3) - - 707
Pooled bank trust preferred
securities 570 564 709
----------- ----------- ------------
Total Non-Performing Assets $ 19,770 $ 20,732 $ 30,936
----------- ----------- ------------

Troubled Debt Restructurings
not included in non-performing
loans
Multifamily residential and
mixed use 2,090 2,098
Commercial real estate 8,729 8,736 -
Construction - - -
Mixed Use Commercial 1,582 1,588 1,040
Other - - -
----------- ----------- ------------
Total Troubled Debt
Restructurings ("TDRs") (1) $ 12,401 $ 12,422 $ 1,040
----------- ----------- ------------

(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.

(2) Total non-performing loans include some loans that have been modified
in a manner that would meet the criteria for a TDR. These non-accruing
TDR's, which totaled $7.4 million at March 31, 2011, $10.1 million at
December 31, 2010 and $15.7 million at March 31, 2010, respectively,
Are included in the non-performing loan table, but excluded from the
TDR amount shown above.

(3) Amount was fully comprised of multifamily residential loans at
March 31, 2010.

PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES

At March 31, At December 31,
2011 2010
----------- -----------
Total Non-Performing Assets $ 19,770 $ 20,732
Loans over 90 days past due on
accrual status 4,033 (4) 8,340
----------- -----------
PROBLEM ASSETS $ 23,803 $ 29,072
----------- -----------

Tier 1 Capital - Dime Savings
Bank of Williamsburgh $ 334,234 $ 326,554
Allowance for loan losses 19,663 19,166
----------- -----------
TANGIBLE CAPITAL PLUS
RESERVES $ 353,897 $ 345,720
----------- -----------

PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 6.7% 8.4%

(4) These loans are expected to be either satisfied or re-financed during
2011, and are not expected to result in any loss of contractual
principal or interest. These loans are not included in non-performing
loans.

Contact:
Kenneth Ceonzo
Director of Investor Relations
718-782-6200 extension 8279

Copyright 2011, Market Wire, All rights reserved.

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