Press Release

Ocean Shore Holding Co. Reports 2nd Quarter Earnings

Ocean City, New Jersey – July 25, 2012 – Ocean Shore Holding Co. (NASDAQ: OSHC) today announced net income of $1,297,000, or $0.19 per diluted share, for the quarter ended June 30, 2012, as compared to $1,158,000, or $0.17 per diluted share, for the second quarter of 2011. Net income for the six months ended June 30, 2012 was $2,651,000, or $0.39 per diluted share, as compared to $$2,362,000, or $0.35 per diluted share, for the same period in 2011.

Ocean Shore Holding Co. is the holding company for Ocean City Home Bank, a federal savings bank headquartered in Ocean City, New Jersey. Ocean City Home Bank operates a total of twelve full-service banking offices in eastern New Jersey.

“Midway through the year, we are pleased with how we have fared in this uncertain economy,” said Steven E. Brady, President and CEO.   “Notwithstanding the challenging interest rate environment and the high level of cash we are currently carrying on our balance sheet, our net interest income and net income has improved over the comparable quarter of the prior year and has declined only slightly from the first quarter of 2012. Finding quality loans remains a challenge, but we have not strayed from our goal of being our area’s premier lender and are maintaining the liquidity that will enable us to fulfill that mission. We are also pleased with the success we have had this year in reducing non-performing assets. This quarter we reduced non-performing assets, which were already low by industry standards, by $1.4 million to just 0.52% of total assets.

Balance Sheet Review

Total assets grew $31.5 million, or 3.2%, to $1,026.3 million at June 30, 2012 from December 31, 2011. Loans receivable, net, decreased $25.9 million, or 3.6%, to $701.7 million at June 30, 2012 from $727.6 million at December 31, 2011. Investment and mortgage-backed securities increased $39.8 million, or 75.4%, to $92.5 million during the first half of 2012. Cash and cash equivalents increased $18.2 million, or 11.7%, to $173.9 million at June 30, 2012 from December 31, 2011. The decrease in total net loans resulted from loan originations and other advances totaling $82.8 million offset by payoffs and payments received of $107.8 million. The increase in investments and mortgage-backed securities resulted from new purchases of short duration agency investments of $61.0 million offset by normal repayments, calls and payoffs of $21.2 million. Cash and cash equivalents increase resulted from increased deposit activity and cash flow from loans offset by increased investment activity.

Deposits grew $29.9 million, or 4.0%, to $782.4 million at June 30, 2012 from December 31, 2011. The Company continued its focus on core deposits, which increased $36.3 million, or 7.1%, to $544.9 million. Certificates of deposit decreased $6.4 million, or 2.6%, to $237.5 million at June 30, 2012 compared to December 31, 2011. Total borrowings were unchanged at $125.5 million for the period ended June 30, 2012.

During the quarter, the Company repurchased a total of 105,800 shares at a weighted average cost of $12.03.

Asset Quality

The provision for loan losses totaled $253,000 for the second quarter of 2012 compared to $128,000 for the second quarter of 2011 and $173,000 for the first quarter of 2012. The allowance for loan losses totaled $3.7 million, or 0.53% of total loans, at June 30, 2012 compared to $3.8 million, or 0.52% of total loans, at December 31, 2011. The Company experienced $490,000 in net charge-off activity for the first six months of 2012 as compared to $123,000 in net charge-off activity for the first six months of 2011.

Non-performing assets totaled $5.3 million, or 0.52% of total assets, at June 30, 2012, compared to $6.6 million, or 0.66% of total assets, at December 31, 2011. Non-performing assets consisted of sixteen residential mortgages totaling $3.0 million, four commercial mortgages totaling $1.4 million, four consumer equity loans totaling $283,000 and four real estate owned property totaling $572,000. Specific reserves recorded at June 30, 2012 were $391,000.

Income Statement Analysis

Net interest income increased $635,000, or 10.3%, to $6.8 million for the second quarter of 2012 compared to $6.2 million in the second quarter of 2011. Net interest margin decreased 7 basis points in the quarter ended June 30, 2012 to 3.42% versus 3.49% for the quarter ended June 30, 2011 and 11 basis points from 3.53% for the quarter ended March 31, 2012. The decrease in net interest income in the second quarter of 2012 compared to the second quarter of 2011 was the result of a decrease of 45 basis points in the average yield on interest-earning assets to 4.73% and an increase in average interest-bearing liabilities of $128.6 million offset by an increase in average interest-earning assets of $88.3 million and a decrease in the average cost of interest-bearing liabilities of 45 basis points to 1.26%.

Net interest income increased $1.5 million, or 12.7%, to $13.7 million for the first six months of 2012 compared to the same period in the prior year. A decrease in net interest margin of 1 basis point to 3.47% from 3.48% was the result of an increase in average interest bearing liabilities of $119.9 million and a decrease of 39 basis points in the average yield on earning assets to 4.83% offset by an increase in average interest-earning assets of $89.7 million and a decrease of 43 basis points in the average cost of interest bearing liabilities to 1.30%.

Other income increased $104,000 to $966,000 and $206,000 to $1.9 million, for the second quarter and first six months of 2012, respectively, compared to the same periods in 2011. The increase in other income resulted from increases in deposit account fees, cash surrender value of life insurance and debit card commissions over the prior period.

Other expenses increased $581,000, or 12.1%, to $5.4 million for the second quarter of 2012, compared to $4.8 million for the second quarter of 2011. Other expenses increased $1.3 million, or 14.0%, to $10.8 million for the six months ended June 30, 2012 compared to $9.5 million for the six months ended June 30, 2011. Costs associated with two branch locations added with last year’s acquisition of Select Bank totaled $320,000 for the second quarter of 2012 and $650,000 for the first six months of 2012. Additionally, increases in salaries and benefits, occupancy and equipment and other expenses of $333,000 and $770,000 were offset by decreases in FDIC insurance and marketing expenses of $72,000 and $120,000 for the second quarter of 2012 and first six months of 2012, respectfully.

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 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.

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OCEAN SHORE HOLDING COMPANY - QUARTERLY DATA (Unaudited)