Ocean Shore Holding 8-K Ocean Shore Holding Co. Reports Record 3rd Quarter Earnings

Exhibit 99.1

Contacts:

Steven E. Brady, President and CEO

Donald F. Morgenweck, CFO

(609) 399-0012

Press Release

Ocean Shore Holding Co. Reports Record 3rd Quarter Earnings

Ocean City, New Jersey – October 22, 2009 – Ocean Shore Holding Co. (NASDAQ: OSHC) today announced quarterly net income of $1,313,000, or $0.16 per basic and diluted share, for the quarter ended September 30, 2009, as compared to $341,000, or $0.04 per basic and diluted share, for the quarter ended September 30, 2008. This represents the Company’s best quarterly performance since becoming a public company in 2004.

Net income for the nine months ended September 30, 2009 was $2,897,000, or $0.36 per share basic and diluted, as compared to $2,160,000, or $0.27 per share basic and diluted, for the same period in 2008.

Ocean Shore Holding Co. (the “Company”) is the holding company for Ocean City Home Bank (the “Bank”), a federal savings bank headquartered in Ocean City, New Jersey. The Bank operates a total of ten full-service banking offices in eastern New Jersey including the recently opened de novo branch office in Galloway Township.

“We are very pleased with our results this quarter, especially in view of the continuing difficult economic conditions. While we are not immune from the effects of the recession, we believe that our results, particularly our low level of non-performing assets, speaks well for our conservative operating philosophy,” said Steven E. Brady, President and CEO.

Balance Sheet Review

Total assets grew $64.2 million, or 9.5%, to $742.6 million at September 30, 2009 from December 31, 2008. Loans receivable, net, increased $61.1 million, or 10.3%, to $655.5 million on steady loan activity. The increase in loans receivable reflected growth in all loan categories: real estate loans increased $57.5 million, consumer loans increased $2.3 million and commercial loans increased $1.7 million. Cash and cash equivalents increased $7.9 million to $16.5 million while investments and mortgage-backed securities decreased $7.1 million, or 18.9%, to $30.3 million.

Deposits grew $76.9 million, or 16.9%, to $532.8 million at September 30, 2009 from December 31, 2008. Total borrowings decreased $15.9 million, or 10.7%, to $133.4 million. The proceeds from the additional deposits were used to fund the growth in the loan portfolio and pay off short-term borrowings.

Asset Quality

The provision for loan losses totaled $490,000 for the third quarter of 2009 compared to $114,000 for the third quarter of 2008 and $252,000 for the second quarter of 2009. The increase in the provision resulted from reserves deemed necessary due to loan growth and specific reserves for two loans in foreclosure.

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Charge-offs for the three and nine months ended September 2009 totaled $101,000 compared to no activity for the same periods in 2008. The allowance for loan losses was 0.53% of total loans and 137.7% of non-performing loans at September 30, 2009, compared to 0.45% of total loans and 136.0% of non-performing loans at December 31, 2008.

Non-performing assets totaled $2.7 million, or 0.36%, of total assets, at September 30, 2009, compared to $4.6 million, or 0.63% of total assets, at June 30, 2009.

Income Statement Analysis

Net interest income increased $887,000, or 18.2%, to $5.8 million for the third quarter of 2009 compared to $4.9 million in the third quarter of 2008. Net interest margin increased 25 basis points in the quarter ended September 30, 2009 to 3.40% from 3.15% for the quarter ended September 30, 2008. On a linked-quarter basis, net interest margin increased 13 basis points from 3.27% in the second quarter of 2009. The growth in interest income for the third quarter was the result of an increase in average interest-earning assets of $59.5 million and a decrease of 67 basis points in the average cost of interest-bearing liabilities to 2.48% from 3.15%, offset by an increase in average interest-bearing liabilities of $66.9 million and a decrease of 27 basis points in the average yield on interest-earning assets to 5.61% from 5.88%.

Net interest income increased $2.5 million, or 17.8%, for the first nine months of 2009 to $16.3 million compared to the same period in the prior year. An increase in net interest margin of 27 basis points to 3.29% from 3.02% was the result of a decrease in the cost of interest-bearing liabilities of 65 basis points offset by a decrease in the yield on interest-earning assets of 28 basis points.

Other expenses increased $408,000, or 11.6%, to $3.9 million for the third quarter of 2009, compared to $3.5 million for the third quarter of 2008. Other expenses increased $1.6 million, or 15.2%, to $11.9 million for the nine months ended September 30, 2009 compared to $10.3 million for the nine months ended September 30, 2008. FDIC deposit insurance expense increased $124,000 in the third quarter of 2009 over 2008 and $566,000 year to date in 2009 over the same period in 2008. Other expenses increased $128,000 in the third quarter and $373,000 year to date over the prior year as a result of additional expenses associated with the opening of a new branch in the fourth quarter of 2008.

This press release, as well as other written communications made from time to time by the Company and its subsidiaries and oral communications made from time to time by authorized officers of the Company, may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Such forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential.” For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Company cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services and other factors that

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may be described in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

SELECTED FINANCIAL CONDITION DATA

	September 30, 2009		December 31, 2008		% Change
	(Dollars in thousands)
Total assets	$	742,630	$	678,474	9.5	%
Cash and cash equivalents		16,450		8,530	92.8
Investment securities		30,336		37,405	(18.9	)
Loans receivable, net		655,532		594,452	10.3
Deposits		532,843		455,955	16.9
FHLB advances		117,900		133,800	(11.9	)
Subordinated debt		15,464		15,464	0.0
Stockholder’s equity		67,402	$	64,387	4.7

SELECTED OPERATING DATA

	Three Months Ended September 30,							Nine Months Ended September 30,
	2009		2008			% Change		2009			2008			% Change
	(In thousands, except per share amounts)
Interest and dividend income	$	9,502	$	9,092		4.5		$	27,639		$	26,904		2.7
Interest expense		3,745		4,222		(11.3	)		11,352			13,083		(13.2	)
Net interest income		5,757		4,870		18.2			16,287			13,821		17.8
Provision for loan losses		490		114		329.8			895			273		227.8
Net interest income after provision for loan losses		5,267		4,756		10.7			15,392			13,548		13.6
Other income		790		733		7.8			2,248			2,025		11.0
Impairment on investment securities		—		(1,296	)	N/M			(1,077	)		(1,610	)	(33.1	)
Other expense		3,939		3,530		11.6			11,886			10,320		15.2
Income before taxes		2,118		663		219.5			4,677			3,643		28.4
Provision for income taxes		805		322		150.0			1,780			1,483		20.0
Net Income	$	1,313	$	341		285.0		$	2,897		$	2,160		34.1
Earnings per share basic	$	0.16	$	0.04				$	0.36		$	0.27
Earnings per share diluted	$	0.16	$	0.04				$	0.36		$	0.27
Average shares outstanding basic		8,052,772		8,007,999					8,038,711			7,999,467
Average shares outstanding diluted		8,101,928		8,091,415					8,100,705			8,095,745

N/M – not measurable

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	Three Months Ended September 30, 2009				Three Months Ended September 30, 2008
	Average Balance		Yield/Cost		Average Balance		Yield/Cost
	(Dollars in thousands)
Loans	$	647,212	5.54	%	$	574,272	5.84	%
Investment securities		30,881	6.91	%		41,932	6.63	%
Other interest-earning assets		—	—			2,346	1.77	%
Total interest-earning assets		678,093	5.61	%		618,550	5.88	%
Interest-bearing deposits	$	471,900	1.88	%	$	377,632	2.62	%
Total borrowings		131,618	4.65	%		159,014	4.39	%
Total interest-bearing liabilities		603,518	2.48	%		536,646	3.15	%
Interest rate spread			3.12	%			2.73	%
Net interest margin			3.40	%			3.15	%
	Nine Months Ended September 30, 2009				Nine Months Ended September 30, 2008
	Average Balance		Yield/Cost		Average Balance		Yield/Cost
	(Dollars in thousands)
Loans	$	626,309	5.54	%	$	557,461	5.85	%
Investment securities		33,383	6.45	%		48,698	6.46	%
Other interest-earning assets		—	—			4,535	2.19	%
Total interest-earning assets		659,692	5.59	%		610,694	5.87	%
Interest-bearing deposits	$	442,865	2.04	%	$	382,460	2.74	%
Total borrowings		141,152	4.33	%		156,089	4.46	%
Total interest-bearing liabilities		584,017	2.59	%		538,549	3.24	%
Interest rate spread			2.99	%			2.63	%
Net interest margin			3.29	%			3.02	%

ASSET QUALITY DATA

	Nine Months Ended September 30, 2009			Year Ended December 31, 2008
	(Dollars in thousands)
Allowance for Loan Losses:
Allowance at beginning of period	$	2,684		$	2,307
Provision for loan losses		895			373
Charge-offs		102			—
Recoveries		1			4
Net charge-offs		101			(4	)
Allowance at end of period	$	3,478		$	2,684
Allowance for loan losses as a percent of total loans		0.53	%		0.45	%
Allowance for loan losses as a percent of nonperforming loans		137.7	%		136.04	%

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	Nine Months Ended September 30, 2009			Year Ended December 31, 2008
	(Dollars in thousands)
Nonperforming Assets:
Nonaccrual loans:
Real estate mortgage - residential	$	2,486		$	1,861
Real estate mortgage - commercial		—			—
Commercial		—			—
Consumer		40			112
Total		2,526			1,973
Real estate owned		157			—
Other nonperforming assets		—			—
Total nonperforming assets	$	2,683		$	1,973
Nonperforming loans as a percent of total loans		0.41	%		0.33	%
Nonperforming assets as a percent of total assets		0.36	%		0.29	%

SELECTED FINANCIAL RATIOS

	Nine Months Ended September 30,
	2009		2008
Selected Performance Ratios:
Return on average assets (1)	0.54	%	0.44	%
Return on average equity (1)	5.84	%	4.49	%
Interest rate spread (1)	2.99	%	2.63	%
Net interest margin (1)	3.29	%	3.02	%
Efficiency ratio	64.13	%	64.92	%

(1) Annualized.

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OCEAN SHORE HOLDING COMPANY - QUARTERLY DATA

	Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q3 2008
	(In thousands except per share amounts)
Income Statement Data:
Net interest income	$	5,757		$	5,379		$	5,151		$	5,006		$	4,870
Provision for loan losses		490			252			152			101			114
Net interest income after provision for loan losses		5,267			5,127			4,999			4,905			4,756
Other income		790			771			686			745			734
Impairment on investment securities		—			(592	)		(486	)		(626	)		(1,297	)
Other expense		3,939			4,206			3,741			3,945			3,530
Income before taxes		2,118			1,100			1,459			1,079			663
Provision for income taxes		805			429			546			310			322
Net income		1,313			671			913			769			341
Share Data:
Earnings per share basic	$	0.16		$	0.08		$	0.11		$	0.10		$	0.04
Earnings per share diluted	$	0.16		$	0.08		$	0.11		$	0.10		$	0.04
Average shares outstanding basic		8,052,772			8,034,388			8,028,710			8,023,008			8,007,999
Average shares outstanding diluted		8,101,928			8,102,018			8,097,230			8,091,528			8,091,415
Balance Sheet Data:
Total assets	$	742,630		$	724,246		$	699,980		$	678,474		$	695,710
Investment securities		7,456			7,818			9,486			9,300			10,881
Mortgage-backed securities		22,880			24,508			26,651			28,105			28,988
Loans receivable, net		655,532			636,559			617,599			594,452			579,045
Deposits		532,843			490,469			477,463			455,955			460,683
FHLB advances		117,900			142,900			133,100			133,800			145,000
Subordinated debt		15,464			15,464			15,464			15,464			15,464
Stockholder’s equity		67,402			65,859			64,578			64,387			64,215
Asset Quality:
Non-performing assets	$	2,683		$	4,569		$	1,445		$	1,973		$	406
Non-performing loans to total loans		0.41	%		0.72	%		0.23	%		0.33	%		0.07	%
Non-performing assets to total assets		0.36	%		0.63	%		0.21	%		0.29	%		0.06	%
Allowance for loan losses	$	3,478		$	3,089		$	2,837		$	2,684		$	2,583
Allowance for loan losses to total loans		0.53	%		0.49	%		0.46	%		0.45	%		0.45	%
Allowance for loan losses to non-performing loans		137.70	%		67.5	%		196.3	%		136.0	%		636.2	%

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