3rd Quarter Earnings at Beach First Grow 42%


MYRTLE BEACH, S.C., Oct. 12, 2004 (PRIMEZONE) -- Beach First National Bancshares, Inc. (OTCBB:BFNB) today announced that its third quarter earnings increased 42%.

Net income for the quarter ended September 30, 2004 totaled $383,779, an increase of 41.9% when compared to the $270,479 reported for the same period a year ago. Total assets grew to $227 million, which represents an increase of 43.3% from the same period a year ago. Total deposits grew to $188.0 million, an increase of 43.4% from the same period a year ago. Total loans grew to $174 million, a 33.8% increase from the same period a year ago.

Net income for the nine months ended September 30, 2004 totaled $1,022,009, an increase of 49.4% when compared to the $683,963 reported for the same period a year ago.

Walt Standish, president and chief executive officer, said, "Our financial performance during the third quarter can be attributed to strong growth in all areas. Our new office at the Litchfield Market Village had a strong opening in July and is off to a great start in its first three months of operation, while our existing branch network continues to perform well."

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $227 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates offices in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina. Beach First offers a full line of banking products and services, including NetTeller internet banking with PowerPay. The company's stock trades under the symbol "BFNB.OB."

The Beach First National Bank logo can be found at http://media.primezone.com/prs/single/?pkgid=703

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.

Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that the future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.



         Beach First National Bancshares, Inc. and Subsidiary
                     Myrtle Beach, South Carolina
                      Consolidated Balance Sheets

                                  September 30,         December 31,
                              2004            2003          2003
                              ----            ----          ----
                          (unaudited)     (unaudited)     (audited)



           ASSETS

 Cash and due
  from banks             $  3,678,206   $  4,363,595   $  4,886,682
 Federal funds sold
  and short term
   investments              4,209,000      3,277,756      4,598,520
 Investment securities
  available for sale       36,386,783     12,228,511     11,918,074
 Loans, net               171,898,625    128,541,354    133,851,712
 Federal Reserve
  Bank stock                  309,000        309,000        309,000
 Federal Home Loan
  Bank stock                  925,000        575,000        575,000
 Premises and
  equipment, net            4,376,736      4,373,662      4,477,943
 Cash value life
   insurance                3,192,355      3,037,975      3,076,570
 Investment in
  BFNB Trust                  155,000              -              -
 Other assets               1,753,680      1,662,069      1,399,535
                         ------------   ------------  ------------
     Total assets        $226,884,385   $158,368,922   $165,093,036
                         ============   ============  =============

     LIABILITIES AND SHAREHOLDERS' EQUITY

 LIABILITIES:

 Deposits

  Noninterest bearing
   deposits              $ 29,164,845   $ 25,542,423   $ 23,454,124
  Interest bearing
   deposits               158,997,990    105,662,578    114,645,442
                         ------------   ------------  ------------
      Total deposits      188,162,835    131,205,001    138,099,566
 Other borrowings          16,500,000     11,500,000     11,500,000
 Debt associated
  with Trust
  Preferred
  Securities                5,155,000              -              -
 Other liabilities            969,205      1,331,889        760,577
                         ------------   ------------  ------------
   Total liabilities      210,787,040    144,036,890    150,360,143
                         ------------   ------------  ------------

    SHAREHOLDERS' EQUITY:

 Common stock, $1 par
  value; 10,000,000
  shares authorized;
  shares issued and
  outstanding -
  2,013,008 at
  September 30, 2004,
  1,318,368 at
  September 30, 2003
  and 1,323,768
  at December 31,
   2003                     2,013,008      1,318,368      1,323,768
 Paid-in capital           11,332,816     11,787,899     11,837,299
 Retained earnings          2,740,025      1,393,352      1,718,321
 Accumulated other
  comprehensive
  income (loss)                11,496       (167,587)      (146,495)
                         ------------   ------------  ------------
    Total
    shareholders'
     equity                16,097,345     14,332,032     14,732,893
                         ------------   ------------  ------------
    Total liabilities
     and shareholders'
     equity              $226,884,385   $158,368,922   $165,093,036
                         ============   ============   ============



      Beach First National Bancshares, Inc. and Subsidiary
                     Myrtle Beach, South Carolina
                   Consolidated Statement of Income
                             (Unaudited)


                        Nine Months Ended       Three Months Ended
                           September 30,           September 30,
                          -------------            -------------
                         2004        2003        2004        2003
                         ----        ----        ----        ----
 INTEREST INCOME

  Interest and
   fees on loans      $7,335,800  $5,752,885  $2,739,856  $2,125,266
  Investment
   securities            700,841     386,932     314,412     130,495
  Fed funds sold
   and short term
   investments            75,265      36,940      36,943      11,762
  Dividends on
   long-term
   investments             2,240           -       1,655           -
                      ----------  ----------   ----------  ----------
    Total interest
     income            8,114,146   6,176,757   3,092,866   2,267,523

 INTEREST EXPENSE

  Deposits             1,917,648   1,732,938     764,878     568,939
  Short-term
   borrowings            283,057     143,197     100,776      49,798
  Long-term
   borrowings             75,255           -      55,819           -
                      ----------  ----------  ----------  ----------
    Total interest
     expense           2,275,960   1,876,135     921,473     618,737

    Net interest
     income            5,838,186   4,300,622   2,171,393   1,648,786

 PROVISION FOR
  POSSIBLE LOAN
  LOSSES                 838,000     566,000     330,000     275,000
                      ----------  ----------  ----------  ----------
  Net interest
   income after
   provision for
   possible loan
   losses              5,000,186   3,734,622   1,841,393   1,373,786
                      ----------  ----------  ----------  ----------

 NONINTEREST INCOME

    Service fees
     on deposit
     accounts            392,118     364,145     128,181     117,247
    Gain (loss)
     on sale
     of investment
     securities           37,395     134,703      37,400        (108)
    Income from cash
     value life
     insurance           121,158     121,158      80,772      40,386
    Other income         219,281     148,199      49,050      29,269
                      ----------  ----------  ----------  ----------
    Total
     noninterest
     income              769,952     768,205     295,403     186,794
                      ----------  ----------   ---------  ----------

 NONINTEREST EXPENSES

  Salaries and
   wages               1,840,553   1,514,336     671,426     530,882
  Employee benefits      360,631     290,330     123,162      92,758
  Supplies and
   printing               63,738      77,505      27,165      20,236
  Advertising and
   public
   relations             188,719     118,141      72,654      40,826
  Professional
   fees                  148,133      92,355      55,201      31,220
  Depreciation
   and
   amortization          328,041     317,272     110,919     106,055
  Occupancy              348,179     264,074     137,571      91,793
  Data processing
   fees                  261,595     226,572      93,501      81,437
  Other operating
   expenses              597,207     523,801     232,408     143,064
                      ----------  ----------  ----------  ----------
    Total
     noninterest
     expenses          4,136,796   3,424,386   1,524,007   1,138,271
                      ----------  ----------  ----------  ----------

    Income
    before income
    taxes              1,633,342   1,078,441     612,789     422,309

 Income tax
  expense                611,333     394,479     229,010     151,830
                      ----------  ----------  ----------  ----------

   NET INCOME         $1,022,009  $  683,962  $  383,779  $  270,479
                      ==========  ==========  ==========  ==========
 BASIC NET
  INCOME PER
  COMMON SHARE        $      .51  $      .35  $      .19  $      .14
                      ==========  ==========  ==========  ==========
 DILUTED NET
  INCOME PER
  COMMON
  SHARE               $      .49  $      .34  $      .18  $      .13
                      ==========  ==========  ==========  ==========


 Weighted average
  common shares
  outstanding
   - basic             2,013,008   1,977,552   2,013,008   1,977,552
 Weighted average
  common shares
  outstanding -
  diluted              2,083,144   2,008,856   2,083,144   2,008,856


            

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