Dime Community Bancshares Reports Second Quarter Earnings

Diluted Earnings Per Share of 17 Cents; Annualized Core Deposit Growth of 22% in the Quarter


BROOKLYN, NY--(Marketwire - July 25, 2007) - Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today reported net income of $5.6 million, or 17 cents per diluted share, for the quarter ended June 30, 2007, compared to $9.1 million, or 26 cents per diluted share, for the quarter ended June 30, 2006 and $5.8 million, or 17 cents per diluted share, for the quarter ended March 31, 2007.

Core earnings were substantially the same as reported earnings during the quarters ended June 30, 2007 and March 31, 2007, and were $8.4 million, or $0.24 per diluted share, for the quarter ended June 30, 2006. Reported earnings exceeded core earnings during the quarter ended June 30, 2006 due to a pre-tax gain of $1.1 million on the sale of mutual fund investments associated with the Company's Benefit Maintenance Plan.

According to Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, "The second quarter of 2007 was in line with our expectations, with loan prepayment fee income falling within our forecasted range."

Mr. Palagiano continued, "Deposit and asset growth continue, although they have come at a price of reduced margins. This accounts for the flat earnings outlook over the near term. However, we have concluded that such growth is necessary at this time, despite the narrow margins, if we are to provide a platform for the resumption of earnings growth in 2008. On a more positive note, yields on new loans continue to be above the portfolio rate, and credit quality and the credit outlook remain outstanding."

Second Quarter 2007 Highlights

--  Real estate loan originations were $111.0 million at an average rate
    of 6.59%, compared to $123.3 million at an average interest rate of 6.34%
    during the first quarter of 2007.
--  Loans in the pipeline approximated $127.6 million at quarter-end,
    including commitments for sale to Fannie Mae of $20.5 million.
--  The annualized loan amortization rate was 10% compared to 11% during
    the previous quarter.  Prepayment fee income was $934,000, compared to $1.2
    million in the March 2007 quarter and $2.1 million in the June 2006
    quarter.
--  Ending deposits increased by 5% annualized, and linked quarter average
    cost of deposits rose from 3.54% to 3.62%.  Core deposits increased by 22%
    annualized.
--  Net interest margin was 2.27%, down from 2.33% sequentially.
--  The Company repurchased 819,526 shares of its common stock, compared
    to 425,458 shares repurchased in the March 2007 quarter.  The consolidated
    tangible stockholders' equity ratio fell to 7.06% at June 30, 2007 from
    7.24% at March 31, 2007.
--  Quarterly non-interest expense was flat sequentially and up 6% year-
    over-year.
    

OPERATING RESULTS

For the quarter ended June 30, 2007, the Company's pre-tax income, excluding gains and losses on the sale of assets, was $8.6 million, compared to $12.6 million in the same quarter of the previous year. The $4.0 million decrease was due to a decline of $3.2 million in net interest income and an increase of $671,000 in non-interest expense experienced primarily in salary and benefits.

The net interest margin contracted 52 basis points, from 2.79% during the June 2006 quarter to 2.27% during the June 2007 quarter, due mainly to an increase of 82 basis points in the average cost of deposits during the comparative period.

Pre-tax income, excluding gains and losses on the sale of assets was $8.8 million during the March 2007 quarter. The $200,000 decline from the March 2007 quarter was primarily due to a decrease of $217,000 in net interest income. The decline in net interest income resulted principally from a decrease of $339,000 in prepayment fee and late charge income during the comparative period. The net interest margin remained relatively flat during the same period.

Excluding the effects of prepayment fee and late charge income, net interest income would have increased $122,000 and the net interest margin would have declined 2 basis points during the quarter ended June 30, 2007 compared to the quarter ended March 31, 2007.

Mr. Palagiano commented, "It now appears, barring any further significant rise in deposit interest rates, that the Bank's net interest margin has stabilized, and that our current deposit rate offerings are priced in a way that should enable us to retain much of the new deposits we acquired so far this year."

The average yield on portfolio real estate loans, excluding the effects of prepayment and late fee income, was 5.78% during the quarter ended June 30, 2007 and 5.75% during the quarter ended March 31, 2007. The interest rates on newly originated real estate loans averaged 6.59% during the second quarter of 2007, compared to a weighted average rate on loans repaid of 6.04% during the period.

Non-interest income, excluding gains or losses on the sale of assets, totaled $2.2 million during the quarter ended June 30, 2007, relatively constant from the March 2007 quarter and down $212,000 from the June 2006 quarter due to declines in both retail banking and loan servicing income during the comparative period.

The Company sold loans to Fannie Mae totaling $17.0 million, $21.0 million and $20.2 million, recording gains of $223,000, $253,000 and $244,000, during the quarters ended June 30, 2007, June 30, 2006 and March 31, 2007, respectively. Each of the loans sold during these periods was designated for sale upon origination. The loans sold during the quarter ended June 30, 2007 had a weighted average term to the earlier of maturity or next repricing of 11.2 years.

Non-interest expense totaled $11.2 million during the quarter ended June 30, 2007, up $671,000 from the June 2006 quarter and relatively unchanged from the March 2007 quarter. The growth in non-interest expense from the June 2006 quarter resulted primarily from salary and benefit increases. Non-interest expense to average assets was 1.37% in the June 2007 quarter, compared to 1.34% for the quarter ended June 30, 2006 and 1.40% for the quarter ended March 31, 2007.

The effective tax rate was 35.8% for the quarter ended June 30, 2007, 35.1% for the quarter ended June 30, 2006, and 35.9% for the quarter ended March 31, 2007. The effective tax rate is expected to approximate 36.0% for the year ending December 31, 2007.

REAL ESTATE LENDING AND CREDIT QUALITY

Real estate loan originations totaled $111.0 million during the quarter ended June 30, 2007. The average rate on real estate loan originations during the quarter was 6.59%, compared to 6.44% during the quarter ended June 30, 2006 and 6.34% during the quarter ended March 31, 2007.

Real estate loan prepayments and amortization during the June 2007 quarter approximated 10% of the real estate loan portfolio on an annualized basis, compared to 16% during the June 2006 quarter and 11% during the March 2007 quarter.

Non-performing loans were $2.9 million at June 30, 2007, representing only 0.11% of total loans, relatively unchanged from March 31, 2007.

DEPOSITS

As a result of ongoing promotional activities, deposits increased $26.7 million during the second quarter of 2007. Core (non-certificate) deposits increased $57.3 million, or 22% annualized. The growth in core deposits was experienced primarily in money market accounts. Certificates of deposit declined by $30.6 million.

Average deposits per branch approximated $105 million at June 30, 2007, up from $92 million at June 30, 2006 and $103 million at March 31, 2007. The loan-to-deposit ratio was 126% at June 30, 2007, compared to 138% at June 30, 2006 and 126% at March 31, 2007. The increase in average deposits per branch at June 30, 2007 compared to March 31, 2007 resulted from the $26.7 million growth in deposits during the period. Core deposits comprised 51% of total deposits at June 30, 2007, up from both 47% at June 30, 2006 and 49% at March 31, 2007 (reflecting growth of $61.3 million in money markets during the quarter ended June 30, 2007).

STOCKHOLDERS' EQUITY AND SHARE REPURCHASE PROGRAM

The Company's total stockholders' equity at June 30, 2007 was $275.2 million, or 8.47% of total assets, compared to $285.2 million, or 8.64% of total assets, at March 31, 2007. The decline during the second quarter resulted from $11.0 million in treasury stock repurchases during the period.

During the second quarter of 2007, the Company repurchased into treasury 819,526 shares, or 2.3%, of its common stock outstanding at March 31, 2007. As of June 30, 2007, the Company had an additional 441,626 shares remaining eligible for repurchase under its eleventh stock repurchase program, approved in December 2005. On June 21, 2007, the Company announced its Twelfth Stock Repurchase Program, which authorizes the purchase, at the discretion of management, of up to 1,787,665 shares of its common stock.

After outlays for dividends paid to shareholders and share repurchases, by the end of the second quarter of 2007 the Company's tangible stockholders' equity had declined to $226.4 million, compared to $235.8 million at March 31, 2007. The quarterly cash dividend paid in May 2007 represented a payout ratio of 82% of second quarter 2007 earnings. At June 30, 2007, tangible stockholders' equity was 7.06% of tangible assets and the tangible book value per share was $6.42.

For the quarter ended June 30, 2007, the return on average stockholders' equity was 8.06%, the return on average tangible equity was 9.77%, and the cash return on average tangible equity was 10.58%.

OUTLOOK

At present, the overall yield on the Company's interest-earning assets is rising. The average yield on interest-earning assets, excluding the effects of prepayment and late fee income, rose on a linked quarter basis, from 5.65% to 5.69%. This trend appears likely to continue, as over $433 million in portfolio mortgage loans with a "below current market" weighted average coupon of 5.42% contractually reprice or mature between July 1, 2007 and December 31, 2008. During the year ending December 31, 2009, an additional $805 million in mortgage loans with a weighted average coupon of 5.40% are scheduled to reprice. These loan repricings and maturities provide a potentially significant boost to overall portfolio yields.

The average cost of deposits rose slightly from 3.54% during the March 31, 2007 quarter to 3.62% during the June 2007 quarter. This trend is likely to diminish during the remainder of 2007, as inflows from promotional activity are expected to decline from the first six months of 2007, and a large portion of the promotional deposits added during the first six months of 2007 are expected to reprice below their current promotional cost.

Prepayment and amortization rates, which approximated 10.4% during the first six months of 2007, are expected to remain in the 10% to 12% range during the remainder of 2007. At June 30, 2007, the real estate loan commitment pipeline approximated $127.6 million, including $20.5 million of loan commitments intended for sale to Fannie Mae. The portfolio loan pipeline had a weighted average interest rate of 6.35%.

Operating expenses are expected to approximate $11.6 million in the third quarter of 2007. The Company is positioned, to be opportunistic in the purchase of its own shares should conditions warrant. Based on this outlook, the Company expects third quarter 2007 earnings per diluted share to again be in the range of $0.15 to $0.17.

ABOUT DIME COMMUNITY BANCSHARES

Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company") had $3.25 billion in consolidated assets as of June 30, 2007, and is the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"). The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-one 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.dimewill.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 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 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
              CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                    (In thousands except share amounts)

                                                June 30,
                                                  2007       December 31,
                                               (Unaudited)       2006
                                              -------------  -------------
ASSETS:
Cash and due from banks                       $      52,605  $      26,264
Investment securities held to maturity                  160            235
Investment securities available for sale             25,573         29,548
Mortgage-backed securities available for sale       137,361        154,437
Federal funds sold and other short-term
 investments                                         94,650         78,752
Real Estate Loans:
   One-to-four family and cooperative apartment     149,467        153,847
   Multifamily and underlying cooperative         1,869,261      1,855,106
   Commercial real estate                           703,349        666,927
   Construction                                      34,285         23,340
   Unearned discounts and net deferred loan
    fees                                              1,266          1,048
                                              -------------  -------------
   Total real estate loans                        2,757,628      2,700,268
                                              -------------  -------------
   Other loans                                        2,620          2,205
   Allowance for loan losses                        (15,405)       (15,514)
                                              -------------  -------------
Total loans, net                                  2,744,843      2,686,959
                                              -------------  -------------
Loans held for sale                                     250          1,200
Premises and fixed assets, net                       23,471         22,886
Federal Home Loan Bank of New York capital
 stock                                               26,429         31,295
Goodwill                                             55,638         55,638
Other assets                                         89,392         86,163
                                              -------------  -------------
TOTAL ASSETS                                  $   3,250,372  $   3,173,377
                                              =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Checking, NOW and Super NOW                   $     141,681  $     130,734
Savings                                             289,408        298,522
Money Market                                        678,457        514,607
                                              -------------  -------------
    Sub-total                                     1,109,546        943,863
                                              -------------  -------------
Certificates of deposit                           1,086,190      1,064,669
                                              -------------  -------------
Total Due to Depositors                           2,195,736      2,008,532
                                              -------------  -------------
Escrow and other deposits                            56,653         46,373
Securities sold under agreements to
 repurchase                                         120,160        120,235
Federal Home Loan Bank of New York advances         461,500        571,500
Subordinated Notes Sold                              25,000         25,000
Trust Preferred Notes Payable                        72,165         72,165
Other liabilities                                    43,961         38,941
                                              -------------  -------------
TOTAL LIABILITIES                                 2,975,175      2,882,746
                                              -------------  -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
 authorized, 50,897,016 shares and 50,862,867
 shares issued at June 30, 2007 and December
 31, 2006, respectively, and 35,257,519 shares
 and 36,456,354 shares outstanding at June 30,
 2007 and December 31, 2006, respectively)              509            509
Additional paid-in capital                          207,355        206,601
Retained earnings                                   285,458        285,420
Unallocated common stock of Employee Stock
 Ownership Plan                                      (4,280)        (4,395)
Unearned common stock of Recognition and
 Retention Plan                                      (3,458)        (3,452)
Common stock held by the Benefit Maintenance
 Plan                                                (7,941)        (7,941)
Treasury stock (15,639,497 shares and
 14,406,513 shares at June 30, 2007
 and December 31, 2006, respectively)              (195,392)      (179,011)
Accumulated other comprehensive loss, net            (7,054)        (7,100)
                                              -------------  -------------

TOTAL STOCKHOLDERS' EQUITY                          275,197        290,631
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $   3,250,372  $   3,173,377
                                              =============  =============




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

                                              For the Three Months Ended
                                            June 30,   March 31,  June 30,
                                           ---------- ---------- ----------
                                              2007       2007       2006
                                           ---------- ---------- ----------

Interest income:
     Loans secured by real estate          $   40,697 $   40,250 $   39,844
     Other loans                                   42         45         45
     Mortgage-backed securities                 1,435      1,512      1,753
     Investment securities                        377        442        469
     Federal funds sold and other
      short-term investments                    2,793      2,469      1,522
                                           ---------- ---------- ----------
          Total interest income                45,344     44,718     43,633
                                           ---------- ---------- ----------
Interest expense:
     Deposits  and escrow                      19,576     18,161     13,554
     Borrowed funds                             8,099      8,671      9,228
                                           ---------- ---------- ----------
         Total interest expense                27,675     26,832     22,782
                                           ---------- ---------- ----------
              Net interest income              17,669     17,886     20,851
Provision for loan losses                          60         60         60
                                           ---------- ---------- ----------
Net interest income after provision
 for loan losses                               17,609     17,826     20,791
                                           ---------- ---------- ----------

Non-interest income:
     Service charges and other fees             1,282      1,355      1,457
     Net gain on sales and redemptions
      of assets                                   223        244      1,317
     Other                                        882        891        919
                                           ---------- ---------- ----------
          Total non-interest income             2,387      2,490      3,693
                                           ---------- ---------- ----------
Non-interest expense:
     Compensation and benefits                  6,198      6,450      5,804
     Occupancy and equipment                    1,512      1,495      1,379
     Other                                      3,489      3,303      3,345
                                           ---------- ---------- ----------
          Total non-interest expense           11,199     11,248     10,528
                                           ---------- ---------- ----------

          Income before taxes                   8,797      9,068     13,956
Income tax expense                              3,152      3,251      4,896
                                           ---------- ---------- ----------

Net Income                                 $    5,645 $    5,817 $    9,060
                                           ========== ========== ==========

Earnings per Share:
  Basic                                    $     0.17 $     0.17 $     0.26
                                           ========== ========== ==========
  Diluted                                  $     0.17 $     0.17 $     0.26
                                           ========== ========== ==========

Average common shares
 outstanding for Diluted EPS               34,123,887 34,625,905 35,202,812


                                         For the Six Months Ended
                                            June 30,   June 30,
                                           ---------- ----------
                                              2007       2006
                                           ---------- ----------

Interest income:
     Loans secured by real estate          $   80,947 $   77,683
     Other loans                                   87         94
     Mortgage-backed securities                 2,947      3,598
     Investment securities                        819        951
     Federal funds sold and other
      short-term investments                    5,262      2,678
                                           ---------- ----------
          Total interest income                90,062     85,004
                                           ---------- ----------
Interest expense:
     Deposits and escrow                       37,737     25,050
     Borrowed funds                            16,770     18,662
                                           ---------- ----------
         Total interest expense                54,507     43,712
                                           ---------- ----------
              Net interest income              35,555     41,292
Provision for loan losses                         120        120
                                           ---------- ----------
Net interest income after provision
 for loan losses                               35,435     41,172
                                           ---------- ----------

Non-interest income:
     Service charges and other fees             2,637      2,954
     Net gain on sales and redemptions
      of assets                                   467      2,194
     Other                                      1,773      1,705
                                           ---------- ----------
          Total non-interest income             4,877      6,853
                                           ---------- ----------
Non-interest expense:
     Compensation and benefits                 12,648     11,672
     Occupancy and equipment                    3,007      2,791
     Other                                      6,792      6,513
                                           ---------- ----------
          Total non-interest expense           22,447     20,976
                                           ---------- ----------

          Income before taxes                  17,865     27,049
Income tax expense                              6,403      9,581
                                           ---------- ----------

Net Income                                 $   11,462 $   17,468
                                           ========== ==========

Earnings per Share:
  Basic                                    $     0.33 $     0.50
                                           ========== ==========
  Diluted                                  $     0.33 $     0.50
                                           ========== ==========

Average common shares
 outstanding for Diluted EPS               34,373,520 35,287,490




             DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
           Core Earnings and Core Cash Earnings Reconciliations
              (Dollars in thousands except per share amounts)

  Core earnings and related data are "Non-GAAP Disclosures."  These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the results of the
Company's ongoing operations (exclusive of significant non-recurring items
such as gains or losses on sales of investment or mortgage-backed
securities) during the period.

 Core cash earnings and related data are also "Non-GAAP Disclosures."
These disclosures present information which management considers useful to
the readers of this report since they present a measure of the tangible
equity generated from operations during each period presented.  Tangible
stockholders' equity is derived from stockholders' equity, with various
adjustment items that are based upon standards of the Company's primary
regulator, the Office of Thrift Supervision.   Tangible stockholders'
equity generation is a significant financial measure since banks are
subject to regulatory requirements involving the maintenance of minimum
tangible capital levels.  A reconciliation between GAAP and tangible
stockholders' equity can be found in the Company's audited financial
statements for the year ended December 31, 2006.

 The following tables present a reconciliation of GAAP net income and both
core earnings and core cash earnings, as well as financial performance
ratios determined based upon core earnings and core cash earnings, for
each of the periods presented:

                                             For the Three Months Ended
                                           -------------------------------
                                           June 30,   March 31,  June 30,
                                             2007       2007       2006
                                           ---------  ---------  ---------

Net income as reported                     $   5,645  $   5,817  $   9,060
Pre-tax net (gain) loss on sale of
 securities and other assets                       -          -     (1,064)
Pre-tax income from borrowings
 restructuring                                     -          -          -
Tax effect of adjustments                          -          -        378
                                           ---------  ---------  ---------
Core Earnings                              $   5,645  $   5,817  $   8,374
                                           ---------  ---------  ---------
Cash Earnings Additions:
Non-cash stock benefit plan expense              466        325        358

                                           ---------  ---------  ---------
Core Cash Earnings                         $   6,111  $   6,142  $   8,732
                                           ---------  ---------  ---------
Performance Ratios (Based upon Core Cash
 Earnings):
Core Cash EPS (Diluted)                    $    0.18  $    0.18  $    0.25
Core Cash Return on Average Assets              0.75%      0.76%      1.11%
Core Cash Return on Average Tangible
 Stockholders' Equity                          10.58%     10.35%     14.46%

                                         For the Six Months Ended
                                         ------------------------
                                            June 30,   June 30,
                                              2007       2006
                                           ---------  ---------

Net income as reported                     $  11,462  $  17,468
Pre-tax net (gain) loss on sale of
 securities and other assets                       -     (1,542)
Pre-tax income from borrowings
 restructuring                                     -        (43)
Tax effect of adjustments                          -        568
                                           ---------  ---------
Core Earnings                              $  11,462  $  16,451
                                           ---------  ---------
Cash Earnings Additions:
Non-cash stock benefit plan expense              791        725
                                           ---------  ---------
Core Cash Earnings                         $  12,253  $  17,176
                                           ---------  ---------
Performance Ratios (Based upon Core Cash
 Earnings):
Core Cash EPS (Diluted)                    $    0.36  $    0.49
Core Cash Return on Average Assets              0.76%      1.10%
Core Cash Return on Average Tangible
 Stockholders' Equity                          10.46%     14.30%




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


                                          For the Three Months Ended
                                     -------------------------------------
                                       June 30,    March 31,     June 30,
                                         2007         2007         2006
                                     -----------  -----------  -----------
Performance Ratios (Based upon
 Reported Earnings):
Reported EPS (Diluted)               $      0.17  $      0.17  $      0.26
Return on Average Assets                    0.69%        0.72%        1.16%
Return on Average Stockholders'
 Equity                                     8.06%        8.12%       12.37%
Return on Average Tangible
 Stockholders' Equity                       9.77%        9.80%       15.00%
Net Interest Spread                         1.81%        1.86%        2.36%
Net Interest Margin                         2.27%        2.33%        2.79%
Non-interest Expense to Average Assets      1.37%        1.40%        1.34%
Efficiency Ratio                           56.47%       55.87%       45.33%
Effective Tax Rate                         35.83%       35.85%       35.08%

Performance Ratios (Based upon Core
 Earnings):
Core EPS (Diluted)                   $      0.17  $      0.17  $      0.24
Core Return on Average Assets               0.69%        0.72%        1.07%
Core Return on Average Stockholders'
 Equity                                     8.06%        8.12%       11.44%
Core Return on Average Tangible
 Stockholders' Equity                       9.77%        9.80%       13.87%

Book Value and Tangible Book Value
 Per Share:
Stated Book Value Per Share          $      7.81  $      7.91  $      7.97
Tangible Book Value Per Share               6.42         6.54         6.58

Average Balance Data:
Average Assets                       $ 3,267,736  $ 3,214,322  $ 3,134,815
Average Interest Earning Assets        3,117,578    3,069,158    2,992,772
Average Stockholders' Equity             280,282      286,411      292,882
Average Tangible Stockholders'
 Equity                                  231,127      237,363      241,554
Average Loans                          2,752,200    2,708,758    2,658,556
Average Deposits                       2,166,907    2,083,491    1,942,554

Asset Quality Summary:
Net charge-offs (recoveries)         $        (1) $        (2) $         8
Nonperforming Loans                        2,937        2,878        2,885
Nonperforming Loans/ Total Loans            0.11%        0.11%        0.11%
Nonperforming Assets/Total Assets           0.09%        0.09%        0.09%
Allowance for Loan Loss/Total Loans         0.56%        0.57%        0.60%
Allowance for Loan
 Loss/Nonperforming Loans                 524.51%      540.58%      555.74%

Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
 Equity to Tangible Assets at period end    7.06%        7.24%        7.87%
Tangible Capital Ratio (Bank Only)          9.13%        8.81%        9.39%
Leverage Capital Ratio (Bank Only)          9.13%        8.81%        9.39%
Risk Based Capital Ratio (Bank Only)       12.83%       12.41%       13.38%


                                     For the Six Months Ended
                                     ------------------------
                                       June 30,     June 30,
                                         2007         2006
                                     -----------  -----------

Performance Ratios (Based upon
 Reported Earnings):
Reported EPS (Diluted)               $      0.33  $      0.50
Return on Average Assets                    0.71%        1.12%
Return on Average Stockholders'
 Equity                                     8.09%       11.96%
Return on Average Tangible
 Stockholders' Equity                       9.79%       14.55%
Net Interest Spread                         1.83%        2.36%
Net Interest Margin                         2.30%        2.77%
Non-interest Expense to Average Assets      1.39%        1.34%
Efficiency Ratio                           56.17%       45.65%
Effective Tax Rate                         35.84%       35.42%

Performance Ratios (Based upon Core
 Earnings):
Core EPS (Diluted)                   $      0.33  $      0.47
Core Return on Average Assets               0.71%        1.05%
Core Return on Average Stockholders'
 Equity                                     8.09%       11.27%
Core Return on Average Tangible
 Stockholders' Equity                       9.79%       13.70%

Book Value and Tangible Book Value
 Per Share:
Stated Book Value Per Share          $      7.81  $      7.97
Tangible Book Value Per Share               6.42         6.58

Average Balance Data:
Average Assets                       $ 3,241,029  $ 3,126,816
Average Interest Earning Assets        3,093,368    2,979,675
Average Stockholders' Equity             283,347      292,054
Average Tangible Stockholders'
 Equity                                  234,265      240,182
Average Loans                          2,730,479    2,643,946
Average Deposits                       2,125,199    1,921,407

Asset Quality Summary:
Net charge-offs (recoveries)         $        (3) $        19
Nonperforming Loans                        2,937        2,885
Nonperforming Loans/ Total Loans            0.11%        0.11%
Nonperforming Assets/Total Assets           0.09%        0.09%
Allowance for Loan Loss/Total Loans         0.56%        0.60%
Allowance for Loan
 Loss/Nonperforming Loans                 524.51%      555.74%

Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
 Equity to Tangible Assets at
 period end                                 7.06%        7.87%
Tangible Capital Ratio (Bank Only)          9.13%        9.39%
Leverage Capital Ratio (Bank Only)          9.13%        9.39%
Risk Based Capital Ratio (Bank Only)       12.83%       13.38%



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


                                             For the Three Months Ended
                                          --------------------------------
                                                    June 30, 2007
                                          --------------------------------
                                                                  Average
                                            Average                Yield/
                                            Balance    Interest     Cost
                                          ----------- ---------- ---------
                                               (Dollars In Thousands)
Assets:
  Interest-earning assets:
    Real estate loans                     $ 2,750,429 $   40,697      5.92%
    Other loans                                 1,771         42      9.49
    Mortgage-backed securities                146,181      1,435      3.93
    Investment securities                      25,534        377      5.91
    Other short-term investments              193,663      2,793      5.77
                                          ----------- ---------- ---------
      Total interest earning assets         3,117,578 $   45,344      5.82%
                                          ----------- ----------
  Non-interest earning assets                 150,158
                                          -----------
Total assets                              $ 3,267,736
                                          ===========

Liabilities and Stockholders' Equity:
  Interest-bearing liabilities:
    NOW, Super Now accounts               $    42,705 $      186      1.75%
    Money Market accounts                     636,893      6,103      3.84
    Savings accounts                          293,759        449      0.61
    Certificates of deposit                 1,097,137     12,838      4.69

                                          ----------- ---------- ---------
          Total interest bearing deposits   2,070,494     19,576      3.79
    Borrowed Funds                            698,765      8,099      4.65
                                          ----------- ---------- ---------
      Total interest-bearing liabilities    2,769,259     27,675      4.01%
                                          ----------- ----------
  Checking accounts                            96,413
  Other non-interest-bearing liabilities      121,782
                                          -----------
      Total liabilities                     2,987,454
  Stockholders' equity                        280,282
                                          -----------
Total liabilities and stockholders'
 equity                                   $ 3,267,736
                                          ===========
Net interest income                                   $   17,669
                                                      ==========
Net interest spread                                                   1.81%
                                                                 =========
Net interest-earning assets               $   348,319
                                          ===========
Net interest margin                                                   2.27%
                                                                 =========
Ratio of interest-earning assets to
 interest-bearing liabilities                                       112.58%
                                                                 =========

Average deposits (including non-interest
 bearing checking accounts)               $ 2,166,907 $   19,576      3.62%

Interest earning assets (excluding
 prepayment fees and late charges)                                    5.69%



                                             For the Three Months Ended
                                          --------------------------------
                                                    March 31,2007
                                          --------------------------------
                                                                  Average
                                            Average                Yield/
                                            Balance    Interest     Cost
                                          ----------- ---------- ---------
                                               (Dollars In Thousands)
Assets:
  Interest-earning assets:
    Real estate loans                     $ 2,706,863 $   40,250      5.95%
    Other loans                                 1,895         45      9.50
    Mortgage-backed securities                154,655      1,512      3.91
    Investment securities                      30,062        442      5.88
    Other short-term investments              175,683      2,469      5.62
                                          ----------- ---------- ---------
      Total interest earning assets         3,069,158 $   44,718      5.83%
                                          ----------- ----------
  Non-interest earning assets                 145,164
                                          -----------
Total assets                              $ 3,214,322
                                          ===========

Liabilities and Stockholders' Equity:
  Interest-bearing liabilities:
    NOW, Super Now accounts               $    36,080 $      120      1.35%
    Money Market accounts                     567,020      5,123      3.66
    Savings accounts                          295,950        425      0.58
    Certificates of deposit                 1,089,761     12,493      4.65
                                          ----------- ---------- ---------
          Total interest bearing deposits   1,988,811     18,161      3.70
    Borrowed Funds                            752,622      8,671      4.67
                                          ----------- ---------- ---------
      Total interest-bearing liabilities    2,741,433     26,832      3.97%
                                          ----------- ----------
  Checking accounts                            94,680
  Other non-interest-bearing liabilities       91,798
                                          -----------
      Total liabilities                     2,927,911
  Stockholders' equity                        286,411
                                          -----------
Total liabilities and stockholders'
 equity                                   $ 3,214,322
                                          ===========
Net interest income                                   $   17,886
                                                      ==========
Net interest spread                                                   1.86%
                                                                 =========
Net interest-earning assets               $   327,725
                                          ===========
Net interest margin                                                   2.33%
                                                                 =========
Ratio of interest-earning assets
 to interest-bearing liabilities                                    111.95%
                                                                 =========

Average deposits (including non-interest
 bearing checking accounts)               $ 2,083,491 $   18,161      3.54%

Interest earning assets (excluding
 prepayment fees and late charges)                                    5.65%



                                             For the Three Months Ended
                                          --------------------------------
                                                    June 30, 2006
                                          --------------------------------
                                                                  Average
                                            Average                Yield/
                                            Balance    Interest     Cost
                                          ----------- ---------- ---------
                                                (Dollars In Thousands)
Assets:
  Interest-earning assets:
    Real estate loans                     $ 2,656,658 $   39,844      6.00%
    Other loans                                 1,898         45      9.48
    Mortgage-backed securities                182,101      1,753      3.85
    Investment securities                      31,023        469      6.05
    Other short-term investments              121,092      1,522      5.03
                                          ----------- ---------- ---------
      Total interest earning assets         2,992,772 $   43,633      5.84%
                                          ----------- ----------
  Non-interest earning assets                 142,043
                                          -----------
Total assets                              $ 3,134,815
                                          ===========

Liabilities and Stockholders' Equity:
  Interest-bearing liabilities:
    NOW, Super Now accounts               $    36,778 $       91      0.99%
    Money Market accounts                     452,288      2,578      2.29
    Savings accounts                          325,403        476      0.59
    Certificates of deposit                 1,030,354     10,409      4.05
                                          ----------- ---------- ---------
          Total interest bearing deposits   1,844,823     13,554      2.95
    Borrowed Funds                            783,544      9,228      4.72
                                          ----------- ---------- ---------
      Total interest-bearing liabilities    2,628,367     22,782      3.48%
                                          ----------- ----------
  Checking accounts                            97,731
  Other non-interest-bearing liabilities      115,835
                                          -----------
      Total liabilities                     2,841,933
  Stockholders' equity                        292,882
                                          -----------
Total liabilities and stockholders'
 equity                                   $ 3,134,815
                                          ===========
Net interest income                                   $   20,851
                                                      ==========
Net interest spread                                                   2.36%
                                                                 =========
Net interest-earning assets               $   364,405
                                          ===========
Net interest margin                                                   2.79%
                                                                 =========
Ratio of interest-earning assets
 to interest-bearing liabilities                                    113.86%
                                                                 =========

Average deposits (including non-interest
 bearing checking accounts)               $ 1,942,554 $   13,554      2.80%

Interest earning assets (excluding
 prepayment fees and late charges)                                    5.54%

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

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