Dime Community Bancshares Inc., the parent of Dime Community Bank, authorized the prepayment of the outstanding balance on its employee stock ownership plan share acquisition loan and the merger of the ESOP into the bank's 401(K) plan, effective Dec. 31.

The prepayment of the outstanding share acquisition loan balance — which will be $2.8 million as of Dec. 31 — will result in a one-time, noncash, non-tax-deductible charge to earnings of approximately $11.0 million, or 30 cents per diluted share. It will also result in annual reduction to operating expense of about $1.1 million and an increase of approximately 3 cents in diluted earnings per share.